33-4-501. Insuring powers in general. (1) In respect to property insurance as defined in 33-1-210, a farm mutual insurer shall insure against loss or damage by fire or other casualty only:
     (a) rural dwellings and buildings, including the usual contents, farm livestock, machinery, vehicles, growing crops, and other forms of farm property owned by a member of the insurer or by the member's spouse;
     (b) residential dwellings, appurtenant structures, and personal property owned by a member of the insurer or by the member's spouse and located:
     (i) outside the boundaries of an incorporated city or town; or
     (ii) in an incorporated city or town with a population of less than 15,000;
     (c) dwellings and related buildings designed for occupancy by not over two families, together with the usual contents, situated in an incorporated city or town with a population of 15,000 or more, but only if the property is owned by a member of the insurer or by the member's spouse and the member has other insurance of rural property with the insurer;
     (d) rural schoolhouses and buildings used in connection with the schoolhouse, rural community houses, rural churches, or other rural public buildings.
     (2) A farm mutual insurer may insure against the liability risks provided in 33-1-206(1)(b) only to the extent of the limit of risks provided in 33-4-502(3) and only if every policy bears on its face in boldface type a statement that each member of the farm mutual insurer is subject to a contingent liability under 33-3-411.
     (3) Except as provided in subsection (1)(d), an insurer may not insure any property not owned by a member or by the member's spouse.
     (4) An insurer may not insure any property situated within the limits of an incorporated city or town except as provided in subsections (1)(b)(ii), (1)(c), and (5) and may not insure the property unless it has and maintains the surplus funds as required under 33-4-401.
     (5) An insurer may continue to insure property situated within the limits of an incorporated city or town with a population of 15,000 or more if the insured obtained coverage when the incorporated city or town had a population of less than 15,000.

     History: En. Sec. 470, Ch. 286, L. 1959; R.C.M. 1947, 40-4803; amd. Sec. 2, Ch. 28, L. 1987; amd. Sec. 2, Ch. 334, L. 1993; amd. Sec. 1, Ch. 281, L. 1995.