Delaware § 4914 - Contingent liability of mutual members.
Full text of Delaware Delaware Code § 4914 — Contingent liability of mutual members., with citation guidance and answers to common questions.
§ 4914. Contingent liability of mutual members.
(a) Except as provided otherwise in § 4916 of this title with respect to nonassessable policies, each member of a domestic mutual insurer shall have a contingent liability, pro rata and not one for another, for the discharge of its obligations, which contingent liability shall be in such maximum amount — not less than 1 nor more than 6 times the premium for the member’s policy at the annual premium rate — as shall be specified in the insurer’s certificate of incorporation or bylaws.
(b) Every policy issued by the insurer shall contain a statement of the contingent liability.
(c) Termination of the policy of any such member shall not relieve the member of contingent liability for such member’s proportion of the obligations of the insurer which accrued while the policy was in force.
(d) Unrealized contingent liability of members does not constitute an asset of the insurer in any determination of its financial condition.
18 Del. C. 1953, § 4914; 56 Del. Laws, c. 380, § 1; 70 Del. Laws, c. 186, § 1;Source: official Delaware text · Last verified 2026-08-27
Frequently Asked Questions About Delaware § 4914
What does Delaware Code § 4914 cover?
Section 4914 ("Contingent liability of mutual members.") is part of the Delaware Code, the codified statutory law of Delaware. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Delaware § 4914?
A common citation format is "Delaware Code § 4914" (Delaware). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Delaware law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Delaware official source linked on this page or consult a licensed Delaware attorney.
How does Delaware § 4914 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Delaware can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Delaware.