The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1875-04-29
CHAPTER 314.


An ACT to provide against extraordinary confagra-
tions, and for the creation Of safety funds by ire
! insurance companies.
The people Of the State Of Wisconsin, represented
| in Senate and Assembly, do enact as follows.
Section l. Thereafter [hereafterl it shall be law
ful for any fire insurance company organized under
the laws of this state to create the funds herein pro-
vided for to be known and designated as the quar-
erlvTguarantyl surplus fund.- aid the special reserve
fund and to avail itself Of the provisions Of this act
mon complying with the requirements thereof.
! Sec 3 Any fire insurance company desiring to
create such funds shall and it is hereby authorized
70 do So upon the adoption of resolution by It's
hoard of directors at regular meeting thereof and
fling with the secretary Of state copy thereof de-
carIng the desire and intention OF such c0mpanyrtO
create such funds, and to Go business under the
provisions of this act; and soon after the fling Of
such COPY of the resolution convenient the secre-
tary of state shall make, cause to be made an eX
animation Of such company, and he shall make
certificate of the result thereof which shall pariCu
larry set forth the amount Of surplus funds held b.
such company at tire date OF such examination,
With under the provisions of this act are to- and
NAV be equally divided between and be set apart to,
constitute said guaranty surplus and special reserve
funds which certificate shall be recorded in the
insurance department, and from and after the date
of the recording of said certificate al the policies
and renewals Of policies issued by said company
shall have printed thereon by said company, no
flee that the same issued under and in pursu-
ance OF this act referring to the by its chapter,
date and title, and such policies and renewals shall
n deemed 70 have been issued and received subject
TO the provisions of this act.
Sec 3 After the date mention I'd in any such
resolution SO passed and filed, it shall not be lawful
for such company to make, declare or pay in any
FORM any dividend upon its capital stock exceeding
seven N per cent. per annun thereupon and upon
the surplus funds to be formed hereunder, until
after its guaranty surplus fund and It's special re-
serve fund shall [have together accumulated to
amount equal to its said capital stock; and the
fire surplus profits OF such company above such
ual 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
serve fundwhch 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 proV5-
ions herein contained, shall be liable to be proceed
ed against by the attorney for the lts dis
| solution.
| Sec l. Said guaranty surplus fund shall be held
and invested By such company the same as its capt
tai stock and surplus accumulation, and shall be
liable and applicable in the same manner as the
capital stock to the payment generally OF the losses
Of such company.
Sec s. Said special reserve fund shall be invested
according to existing laws relating TO investments o.
capital by fire insurance companies, and SHAH be de
mulate and be invested, with the state treasurer
who shall permit the company deposting 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 as the same may accrue; and such
/ special reserve fund shall be deemed fund con-
tributed by the stockholders to protect such COM
pany and its policy holders other than claimants for
losses already existng,or then incurred in Of
such extraordinary confagration or confagrations
as hereinafter mentioned; and said fund shall not
be regarded any part portion of the assets in
| possession of said company so to be or render
the same liable for any claim claims for loss by
| fire or otherwise except as herein provided.
Sec. 6. In estimating the profit of any such
company for the purpose of making a division
thereof between said guaranty surplus fund and
such special fund, there shall be deducted
from the gross assets of the company, including for
this purpose the amount Of the special fund,
the of the following items First, The amount
Of all outstanding claims; second an amount sutb-
cent to meet the liability of such company for the
unearned premiums received policies having less
than year to from date OF policy, and bro
rata proportion of the premiums received on the
Policies having more than year to run from date
OF policy, and shall be known as the reinsurance