Dodgeville chronicle. [volume] (Dodgeville, Wis.) 1862-current, 1875-04-23

by this chapter. in their respective wards and vi
lages.
from and after its passage and publication.
Approved March 5, 1870. SCOPI.
Published March %, 1851
CHAPTER 3i4.
AN ACT to provide against extraordinary confa-
grations. and for the creation OF safety funds
by fire insurance companies:
The people of the State OF wisconsin, repre-
sented in Senate and Assembly, do enact as fol-
lows:
lawful for any fire insurance company organized
under the laws es this State TO create the funds
herein provided for, to be known and designated
as the quarterly lguaranty surplus fund and the
special reserve fund.- and TO avail tselfof the pro-
VISIONS of this act, upon complying with the re-
quirements thereof.
SEC 2 ANY fire engine company desiring to
create such funds shall, and is hereby authorized
to do so, upon the adoption of resolution by
it's Board of Directors, at regular meeting
thereof, and filing with the Secretary of State q
CODY thereof, declaring the desire and intention
of such company to create such funds and to do
business under the provisions of this act; and as
soon after the filing of such copy OF the resolution
as convenient the Secretary OF State shall make,
or cause to be made, an examination OF such COM
pany, and he shall make certificate Of the result
thereof, which shall particularly set forth the
amount of surplus funds held by such company
at the date of such examination, which under the
provisions of this act are to, and may be equally
divided between and be set apart to, constitute
said guaranty surplus and special reserve funds,
which certificate shall be recorded in the lnsur-
ance department, and from and after the date of
the recording of said certificate all the policies
and renewals of policies issued by said company
shall have printed thereon by said company a
notice that the same are issued under and in pur-
suance of this act, referring to the same by its
chapter, date and title, and such policies and
newals shall be deemed to have been issued and
received subject to the provisions of this act.
CrN ha 0at
resolution so passed and filed it shall not be law
full for such company to make, declare or pay, IN
any form, any dividend upon its capital stock ex-
ceeding seven CO per cent. per annum thereupon
and upon the plus funds to be formed hereun-
der until after its guaranty surplus fund and its
special reserve fund shall havel together accumu-
lated to amount equal to its said capital stock
and the entire surplus profits of such company
above such annual dividend of seven ~ per cent.
shall be equally divided between and be set apart
to constitute the said guaranty surplus
fund and the said special reserve fund, which
said funds shall be held and used as hereinafter
provided and not otherwise; and any company
doing business under this act which shall declare
or pay any dividend contrary to the provisions
herein contained shall be liable to be proceeded
against by the Attorney-General Tor the Ltsl dis
solution.
SEC. 4; Said guaranty, surplus fund shall be
held and invested by such company the same as
it's capital stock and surplus accumulation, and
shall be liable and applicable in the same manner
as the capital stock to the payment generally OF
SEC. 5. Said special reserve fund shall be in
vested according to existing laws relating to in
vestments of capital by fire insurance companies,
and shall be deposited from time to time as the
same shall accumulate and be invested with the
State Treasurer, who shall permit the company
depositing the same to cI ange such deposits by
substituting for those withdrawn others of equal
amount and value to, and collect and receive the
interest or dividends upon such securities as the
same may accrue; and such special reserve fund
shall be deemed fund contributed by the stock
hn1 tn
holders other than claimants for losses al
ready existing or then incurred, in cases OF such
extraordinary confiagration or confiagrations as
hereinafter mentioned; and said fund shall not be
regarded as any part or portion OF the assets in
possession of said company so as to be or rem
der the same liable for any claim or claims
for loss by fire or otherwise except as herein pro-
vided,
SEC 6. In estimating the profit of any such
company for the purpose of making division
thereof between said guaranty surplus fund and
such special reserve fund.- there shall be deducted
from the gross assets of the company, including
for this purpose the amount of the special reserve
fund.- the sum of the following items: First, the
amount of all outstanding claims; second, an
amount sufficient to meet the liability of such
company for the unearned premiums received on
policies having less than one year to run from
date of policy and a pro rata proportion OF the
premiums received on the policies having more
than one year to run from date of policy, and
shall be known the reinsurance liability; third,
the amount OF its guaranty surplus fund and OF
its special reserve fund: fourth, the amount of
the capital of the company; and fifth, interest at
the rate of z per cent per annum upon the
amount of the capital and OF the said funds for
whatever time shall have elapsed since the last
preceding cash dividend; and the balance shall
constitute the net surplus of the company, sub
ject to an equal division between the said funds
as herein provided.
SEC Z. In the event of any extensive confagra-
ton or conhagrations whereby the claims upon
such company shall exceed the amount of its
capital stock and of the guaranty surplus fund
<laI co. tha hQl
notify the Secretary of State of the fact who shall
then make or cause to be made examination
TO said company, and shall issue his certificate OF
the result, showing the amounts OF capital, OF
guaranty surplus fund, of special reserve fund, of
reinsurance liability and other assets, and upon
his issuing such certificate in duplicate, one copy
to be given the company and one to be recorded
in the insurance department, the said special re-
serve fund shall be Immediately held to protect
all policy-holders OF said company other than
such as are claimants upon 1t at the time or such
as become such claimants In consequence of such
confagr or CONGREGATIONS; and the amount
of said special reserve fund and an amount equal
to the unearned premiums OF such company, to
be ascertained as hereinbefore provided shall
constitute the capital and assets of such company
for the protection of policy holders other than
such claimants and for the further conduct of its
business and such official certncate OF the Secre-
tary of State shall be binding and conclusive upon
all parties interested in such company, whether
as stockholders, creditors or pol1cy-holders, and
upon the payment to the claimants, for
caused by such general conhagration or cOnfia-
grations. of the amount to which they are re-
spectvely entitled in proportion to their several
Claims of the full sum of the capital of such
company, and of it's guaranty surplus fund, and
of its assets, excepting only such special reserve
fund and an amount of its assets equal to the
liability of the company for unearned premiums,
as so certified by the Secretary of State, such
company shall be forever discharged from any
and all further liability to such claimants and to
each ofthem and the said Secretary of State shall,
ftn hic "a
mand of such company, transfer to it all such
securities as shall have been deposited with him
by such company as such special reserve fund;
and if the amount of such special reserve
fund be less than 20 per cent. of the
NIL amount of the capital OF the com
pany requisition shall be issued by the said Sec
such capital to that proportion of its full amount
in the manner now provided by law lnthe case OF
companies with impaired capitals: And pr0D5d-
ed, further, That any capital 50 impaired snail be
sand dollars $500 0o0) and in case said company,
after such requistion, shall fail to make its capi-
tai to at least said amount OF S2O0O0O as therein
directed, said special reserve fund shall still be
held as security and liable for any and all losses
occurring upon policies of such company after
such confagration or CONGREGATIONS. Such COM
pany shall in it's annual statement to the lnsur-
ance Department of this State set forth the
amount of such special reserve FUND and of its
guaranty surplus fund.
SEC. s. If at any time after said special reserve
fund shall have been accumulated by any COM
pany it shall appear, upon examination by the
said Secretary of State, that the capital of such
company has, in the absence OF any such extern
sive confagration, become impaired SO as to
cause him to order call upon the stockholders
to make up such impairment, the Boar6 of Di-
rectors of such company may either comply with
such order and require the necessary payment by
the stockholders, Or at their option, they may ap
ply for that purpose SO much Of said special re-
serve fund as will make such impairment good.
No company doing business under TINS act shall
insure any larger amount upon any single risk
than is permitted by law to company possessing
the same amount of capital irrespective of the
funds hereby provided for.
SEC. g. This act shall take effect from and after
its passage and publication.
Approved March 5, 1875. MTCOPY.
Tpnhl;n nhad March o. 12rh1