Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1875-04-29
Published March 90. 1851
CHAPTER 3l4,

scnted In Senate and Assembly, do enact as toll
lows:
SECTION T. Thereafter thereafter it shall be
lawful for any fire insurance company organized
under the laws Of this State to create the funds
herein provided for, to be known and designated
as the quarterly Guaranty surplus fund and the
special reserve fund and To avail Itself OF the pro-
visions OF this act, upon complying with the re-
quirements thereof
SEC .. ANY fire engine company desiring to
create such funds shall, and Is hereby authorized
to do 80, upon the adoption of a resolution by
is Board OF Directors, at regular meeting
thereof, and fling with the Secretary Of State
copy thereof, declaring the desire and Intention
OF such com papy TO create such funds and to do
business under The provisions OF this act and
coon after the fling OF such copy OF the resolution
rs convenient the Secretary of State shall make,
or cause 10 be made, an examination Of such com
| pany, and he shall make certificate of the result
/ hereof, which shall particularly Get forth tn e
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 insur
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 re-
newals shall be deemed to have been issued and
received subject 10 the provisions Of this act
SEC. B. After the date mentioned IN any such
resolution so passed and fled it shall not be law
iul for such company 20 make, declare or pay, In
any form, any dividend upon its capital stock eX
cceding seven "a per cent. per annum thereupon
and upon the EUR plus funds TO be formed hereun-
der until after It's guaranty surplus fund and its
ppecial reserve fund shall have 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 aud the sad special reserve fund, which
said funds shall be held anG dSed 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 20 be proceeded
against by the Attorney General for the lits dis
solution.
SEC. 4. Said guaranty surplus fund shall be
held and invested by such company the same as
it, capital stock and surplus accumulation, aud
shall be liable and applicable in the same manner
as the capital stock To the payment generally of
| the losses of such company.
! $50. >. Said special reserve fund shall be in
| vested according 20 existing laws relating TO III
VcztmCuts of capital by Are insurance companies,
aud shall be deposited from time to time as the
! same -hall accumulate and be invested with the
! State Treasurer, who shall permit the company
! dcpositing the same to change such deposits by
| substituting for those Withdrawn Others of equal
| smount and value 10, and collect and receive the
interest or dividends upon such securities as the
| same may accrue; and such special reserve fund
shall be deemed n fund contributed by the stock
holders To protect such company aud lis policy
holders other than claimants for losses al
ready existing, or then incurred, in cases of such
extraordinary cophagratiou or eonlagratious rs
hereinafter mentioned and said fund shall not be
regarded as any part or portion OF the assets In
| possession of said company so rs to be or rem
| der the same liable FOR any claim or claims
Tor loss by hle or otherwise except as herein pro-
vidcd
! SEC. &. In estimating the profit of any such
| company for the purpose OF making q 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
| tand, the sum ct the following Items First the
! amount of all outstanding claims; second an
! amount sufficient TO meet the liability of such
/ company for the unearncd premiums received on
/ pshcies having less than one year To run from
date pt policy and u pro rata proportion of the
premiums received on the policies having more
Than one year 90 run from date II policy, aud
shall be known A9 thcretusurAnCC liability. third
the amount Vt IL guaranty surplus mud and Of
It's special reserve fund; fourth, the amount of
the capital of The company; and dtih, interest at
the rae OF per cent. per auuum upOn the
amount of the capital and OF the said funds for
whatever time shall have elapsed since the last
preceding cash ulyltoud; ana the balance shall
constitute the net surplus of the company. sub
jvct TO an equal division between the said funds
as herein provided
SEC :, In the event of any extensive conangra-
ton or cuntagrauuus whereby Jhr claims upcu
sgch company shall exceed the amount OF its
capital s'ocN aud of the guaranty surplus fund
provided for by This act. the said company shall
notify the Secretary 81 State uf She fact who shall
then make or cause tu De ulHGv an pEai0ira ion
IA ssid company. and shall Issue his certHe,te of
the result showing ta' amounts OF Cauiig} Of
guaranty surp'u, tNn5, ut special reserve fund OF
reinsurance liability and other assets aud upon
HE Issuing sach Certificate u duplicate, one copy
td De- given tFt company aud onr 90 he recorded
ma the Insurance departments, fEr said special re-
-uryo Nud shall bv Immediately hold to PROTECT
alt pNtCy-ho.utrs of said company other than
such o. srg claimants upon o. ~ tlu ,fuls or such
B> haCpNC SUCH claimants iu rrt sequence sc aucH
gnuttf-t4fivU nr cuUIH4tt. HN-. 4ta he uganT
ai said -peclU reserve fuuH HHa tu 1H Nuut equal
in She uGtaMyd prtmlgm. 81. -HHl company. TO
be GsJrr.IiayG as be.yIuh irr- pro ,ldta Shall
eonstitsre 5hc capital ai,l a-set- 1f such company
such claimants. auG ful ,he ur,lcg conduct og trs
business and such o1cia' car i.eafc og thc Score
lazy ui state shall Dee birding and conclusive utnr
a. parties Interested U sUrI cumuNgv. whether
Hs s,gcNhy,tCrs, creditors uC policy -hodtgs, aud
upon INC payment tn the C,slaHH-> iag
.H-s'S 90. otherwise. existing 80 lun time ~ or
caused oy N9tb general cunlazsafgu or corta.
E'Hl'H>. vl iur amount to witch lIgy ARE re-
.SNcrilNvy entitled, Ia proportion 90 their several
claims, OF She tali sum ~ the capital % such
company, and ot its luarsnty Surplus Und, and
o' ~ assets. excepting only such special reserve
iEDa and aE amount OF It's assets equal % the
liability of ,he COMPANY for uucarned premiums
as SO cvrtavU by the Secretary OF State, such
company snail he forever discharged from any
ana 81. further lShilty 20 such claimants aud %
each of ihgU and ihc said Secrcta-y of state shall
after issuing his said certificate. upon the de-
/ '''''N.. "' eHtA 'tNlp"NN, Nauslfl lN u Al SHtA
securities ~ shall have been deposited with him
[ hN such company - such special reserve fund.
. aNd " ihc amount of such special reserve
iHna hs less than 90 per cent at the
an amount nc she capital OF the com.
Hauy -Jgais'tiou shall 3C issued hy the said Sec.
tel2N ui STATE DPon she stockholders 60 ulaEe up
ekth capital to chat proportion 81 It's tE.' amount
tu ihH manner uuw provided bv law iuthe case OF
companies with iwYa!rcd capitals. 8sl ur5r.s-
3,ft~tlrr, Thai any capital So impaired ShaI be
made Hr io ai .rSst tso sam OF two hundred thou
>SAa u,H.Ar~ 3 n10"1, and iu case said company.
ay. 'A.a .g8i~itpu. shall tail "a make i-S sar.-
'''eN''1' ''.' special reserve iaod shall s.l De