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This entry was published on 2014-09-22
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Insurance (ISC) CHAPTER 28, ARTICLE 61
§ 6101. Definitions. In this article:

(a) "Advisory committee" means any official body, by whatever name
called, which is chosen by the subscribers of a reciprocal insurer and
which has, subject to the articles of association and subscribers
agreement, ultimate power and responsibility in the management and
control of the affairs of a reciprocal insurer.

(b) "Attorney-in-fact" means a person designated and appointed by
subscribers to a reciprocal insurer to act for and bind the subscribers
in all transactions relating to or arising out of the operations of a
reciprocal insurer, subject to limitations as may be lawfully provided.

(c) "Books, accounts and records" means all working papers, ledgers,
and other relevant documents which demonstrate, disclose and support
transactions of the reciprocal and each individual subscriber, as
distinguished from the attorney-in-fact, and which relate to the
operations and activities of the reciprocal. The phrase "books, accounts
and records" shall not mean or include working papers, ledgers, or other
relevant documents which relate exclusively to the operation and
activities of the attorney-in-fact as a separate entity.

(d) "Financial interest" means that a person owns, directly or
indirectly, more than one percent of the outstanding stock in the
attorney-in-fact, has any outstanding loans from the attorney-in-fact,
or earns a commission or other compensation as a producer for the

(e) "Material transaction" means a transaction, other than claim
payments, that involves more than one-half of one percent of the
reciprocal's admitted assets as of the thirty-first day of December of
the prior year.

(f) "Person" means an individual, partnership, firm, association,
corporation, not-for-profit corporation, joint-stock company, trust, any
similar entity, or any combination of the foregoing acting in concert.

(g) "Subscriber" means a person who has become a member of a
reciprocal through the execution of a subscriber's agreement.

(h) "Subscriber's agreement" means a document executed by the
subscriber which designates and appoints, through a power of attorney,
the attorney-in-fact and, either within the agreement or via a
management agreement or an appended set of bylaws, that sets forth the
duties of the attorney-in-fact.