33-3-307. Bond of officers. (1) The president, secretary, and treasurer of each mutual insurer or stock insurer shall each file with the commissioner and maintain in force so long as that individual is an officer a fidelity bond in an amount set by the commissioner by rule and issued by an authorized corporate surety in favor of the insurer. The commissioner shall consider the insurer's exposure, total assets, and total income in determining the bond amount. In lieu of individual bonds, officers may be covered under a blanket bond for the same respective amounts. The blanket bond must be filed with the commissioner.
     (2) The premium for the bond must be payable by the insurer.
     (3) A bond is not subject to cancellation except upon written notice to both the insurer and the commissioner, delivered not less than 30 days in advance of the effective date of the cancellation.
     (4) The insurer shall provide for the bonding by authorized corporate surety of all other officers in any way responsible for the handling of the funds of the insurer.
     (5) This section may not be considered to limit the amount of bonded protection that the insurer may carry as to any officer.

     History: En. Sec. 439, Ch. 286, L. 1959; R.C.M. 1947, 40-4722; amd. Sec. 13, Ch. 531, L. 1997.