Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1885-04-04
HOUSE BILL NO. 123.
SEirst published March Z, 1851
AN ACT

TO authorize mutual fre insurance companies to
provide for q guarantee fund to increase the 90
curity of policy holders.
Be It enacted BY the legislature of the state Of
Kansas:
SECTION l. That any mutual fire insurance COM
pany. organized under the laws of this state, and
having done business not less than two years, and
having at least million dollars at risk, and pre-
MUM notes amounting to not less than twenty
ave thousand dollars, may, for the better protec-
ton of its policy holders, create guarantee fund
of not less than twenty-five thousand dollars, with
the privilege Of increasing 1t to one hundred thou
sand dollars or more. Said guarantee fund shall be
in shares of ten dollars EACH which the board of
directors may declare annual dividends of not moro
tn an ten per cent per annum; said dividends shall
be paid only from the net profits derived from tho
cash business.
SEC q The guarantee fund as above provided
shall be created by the subscribers thereunto, who
shall be members of the company, paying cash for
each share of such guarantee fund issued to such
member, and such fund shall be invested in mort
cages real estate worth at least one-half moro
than the amount loaned thereon in the stock of
corporations organized under the laws of this state,
Ut their market value, nterestbonds in corpora-
lions Of this state, tn the United States state
municipal bonds at their market value, or BY
giving their promissory notes, payable on demad
and secured by the pledge Of collateras of the kind
specified in this section, OF onefourth more value
companies shall be liable for the claims against tho
company only after all other resources have been
exhausted.
SEQ. s. In the election of directors rs now pro-
vlded by law, each member subscribing to the guar
antee fund shall have one vote for each and every
share owned by him In such guarantee fund.
guarantee fund, as provided In this act, to the
amount Of twenty-fv thousand dollars, may issue
policies of insurance against loss damage by fire,
lightning, tornadoes and cyclones, on dwelling
houses, barns Sheds outbuildings, hay grain, wool
and other products, cribs and their contents, live
stock, wagons, carriages, harness, house
visions, musical instruments and libraries,
being upon farms as farm property, or In dwellings
or in accompanying out-buildings, that constitutes
detached risks in towns and villages; but shall issue
no policy to exceed three thousand dollars on and
In any one building buildings that is exposed one
by the other and situated in the state of Kansas
detached dwelling understood in this section,
shall be construed to be dwelling not nearer than
thirty-fve feet to any other building Mutual COM
panies having guarantee FIND Of one hundred
thousand dollars or more may issue policies of in
surance on the above described kinds of property
situated In or out Of the state of Kansas
SEC. s. Mutual FIRE insurance companies having
guarantee fund may accept in payment of the pre-
MUM on their policies, cash time notes payable
ut such time and place provided in said note or
notes payable in assessments, but the members of
said companies shall not be liable to the companies
or any other person to exceed the amount of their
premium or premium notes, and interest due there
on; and such notes shall become q lien upon the
property insured as provided BY law
SEQ 6. When at a meeting of the board of direc-
tors of q mutual FIRE insurance COMPANY they shall
decide to create q guarantee funt, the secretary
shall open a book for the subscription Of shares,
and when the required amount has been subscribed,
es heretofore provided, he shall notify the super
intendent of insurance, who shall Immediately
examine, as provided by law, the securities, notes
and standing Of said company, and II upon such
examination he finds they have complied With this
law, he shall issue 10 them his certificate Of author
fly to do mutual and cash business and issue poll.
cies In accordance with this act
SEQ 2. The directors of mutual IRE Insurance
company may re-insure IT. risD whenever they
deem it for the best interest Of the company, by rs
obtaining the consent of the STATE superintendent Of
insurance, and shall make On assessment to pay for
the reinsuring Of it, risks above provided; but
the company has . guarantee fund, the assessment
notes shall not b assessed to reinsuro the cash
policies-
eHo This oct shall take effect and b In force
from and after Its publication I'm the official state
paper.
Approved March & 1885.
do hereby certify that the foregoing Il true
and correct copy Of the original enrolled bill now
ON Ale In my once.
In testimony whereof have hereunto subscribed
my name and affixed my oficial seal
NAIL Done at Topeka, Kansas, this 9Th day Of
March, A. d. 1885,
E. b. ALLEN,
Secretary Of StafA.