(1) Advance premiums. A county mutual insurer having a surplus over all liabilities of not less than $50,000, including a liability for unearned premiums, and for so long as such surplus is continuously maintained, such insurer may bill and collect assessments on the advance premium basis.
(2) Return premium. Upon the termination of any policy of insurance during any effective policy year, the unearned premium shall be returned to a member policyholder in accordance with the rules for pro-rata and short rate cancelations applying to casualty insurance policies.
(3) The limitations as to the emergency fund imposed by section 41-3112(3)[, Idaho Code,] shall not apply to a county mutual insurer qualifying under this section to collect premiums in advance.