§33-5-7. Formation of mutuals -- Deposit of premiums; filing of
trust agreement; issuance and effective date of
(a) All sums collected by a domestic mutual insurer as
premiums and fees on qualifying applications for insurance
therein shall be deposited in trust in a West Virginia bank or
trust company under a written trust agreement consistent with
this section and with paragraph (3) of subsection (c) of section
six of this article. The corporation shall file an executed copy
of such trust agreement with the commissioner.
(b) Upon issuance to the insurer of a license as an insurer
for the kind of insurance for which such applications were
solicited, all funds so held in trust shall become the funds of
the insurer, and the insurer shall forthwith issue and deliver
its policies for which premiums had been paid and accepted. The
insurance provided by such policies shall be effective as of the
date of the license.