The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1875-04-22

ance department and from and after the date o
the recording Of said certificate all the policie
| and renewals Of policies issued by said eompan,
| shall have printed thereon by said company
notice that the came are issued under and In pur
| suance Of this act referring to the same by il
chapter date and title, and such policies and re
newals shall be deemed to have been issued an(
received subject to the provisions Of this act.
SEC. 3. After the date mentioned sucf
resolution so passed and fled il shall not be law
| full for such company TO make, declare or pay il
any form, any dividend upon its capital stock ex
ceecing seven "a per cent per annum thereupo1
and upon the sur plus funds to be formed hereun
der until after its guaranty surplus fund and it,
special reserve fund shall harei together aecumu
lated to an amount equal to its said capital stock
and the entire surplus profits of such compan,
above such annual dividend of seven (1l per cent
shall be equally divided between and be set apar
fund and the said special reserve fund. which
said funds shall be held and used as hereinafter
provided and not otherwise; and any compan,
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 for the litsl dis
solution.
SEC. 4. Said guaranty surplus fund shall be
held and invested by such company the same as
its capital stock and surplus accumulation, and
shall be liable and applicable in the same manneg
as the capital stock to the payment generally OF
the losses of such company
SEC. ). Said special reserve fund shall be in
vested according to existing laws relating to in
yestments of capital by fire insurance companies
and shall be deposited from time to time the
same shall accumulate and be invested with the
State Treasurer. who shall permit the company
depositing the same to change 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substituting for those withdrawn others of equal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 the
same may accrue; and such special reserve fund
shall be deemed a fuEd contributed by the stock.
holders to protect such company and nd Its policy
ready existing. or then incurred. in cases of such
extraordinary confagration or confagrations as
hereinafter mentioned; and said fund shall not be
regarded any part or portion of the assets in
possession of said company so as to be rem.
der the same liable for any claim or claims
for loss by fire or otherwise except as hereil pro-
yided.
SEC. g. In estimating the prcs. OF any such
company for the purpose of making a 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 sufhclent 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 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 as 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 al
the rate of 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 confapra-
tion or confagrations whereby the claims upon
such company shall exceed the amount of its
capital stock and of the guaranty surplus fund
provided for by this acg, the said company shall
notify the Secretary of State of the fact who shall
then make or cause TO De made an examination
fo said company, and shall issue his certificate OF
result. SHOWING amounts cAnifnl-
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 AZ are claimants upon it at the time or such
as become such claimants in consequence of such
confagration or confagrations; 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-hoders other than
such claimants and for the further conduct of its
business; and such official certificate of the Secre-
tary of State shall be binding and conclusive upon
all parties interested in such company, whether
as stockholders, creditors or policy holders, and
upon the payment to the claimants, for
losses or otherwise, existing at the time of or
caused by such general confiagration or conia-
grations. of the amount to which they are re-
spcctiyely entitled i'll proportion to their several
claims, of the full sum of the capital of such
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
after issuing his said certificate. upon the de-
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
10 Of bn
Rll amount of the capital OF the com
pany requisiton shall be issued by the said Sec
retary of State upon the stockholders to make up
such capital to that proportion of its full amount
in the manner now provided by law in the case OF
companies with impaired capitals: and propid-
cd, further, That any capital impaired shall be
made up to at least the sum of two hundred thou
sand dollars (S201,000); and in said company,
after such reQustion, shall fail to make its CAPT
tai to at least said amount of 100000 as therein
directed said special reserve fund shall still be
held security and liable for any and all losses
occurring upon policies Of such company after
such onfagration confagrations Such COM
pany shall in its annual statement TO the lnsur-
ance Department of this State set forth the
amount Of such special reserve funu and of its
guaranty surplus fund.
SEC. g. IL 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 exten-
sive conhagraton, become impaired to
cause him to order call upon the stockholders
to make up such impairment, the BoarC OF Dl-
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 this 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. 9. This act shall take effect from and after
its passage and publication.
Approved March 5, 1875. S-COPY.