Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1885-04-04

~ sslr,eriae mutual IRE insurance companies to
/ provide Tor guarantee fund TO increase the Sc
/ curity Of policy holders.
Be It enacted 6y the legislature Of The state Of
Kansas:
SECTION /. 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
I'VE 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 it to 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 more
than ten per cent per annuni said dividends shall
be paid only from the net profits derived from the
cash business.
SEC. 2 The guarantee fund as above provided,
shall be created by the subscribers thereuutO, who
shall be members of the company, paying cash for
zach share OF such guarantee fund issued to such
member, and such fund shall be invested in mort
than the amount loaned thereon, in the stock OF
corporations organized under the laws of this state
at their market value, or interesbOnds in corpora
municipal bonds at their market value, by
giving their prOmissoEy notes, payable on demad
and secured by the pledge of coaterals Of the kind
speclned In TINS eecLion5 OF Oh-LOuEth more EsLlS
than said notes. The guarantee fund of mutual
companies shall be liable for the claims against the
company only after all other resources nave been
exhausted.
vided By law each member subscribing to the guar
antee fund shall have one vote for each and every
90. A. mutual nre insurance companies having a
/ guarantee fund, as provided in this act, to the
amount OF twenty-five thousand dollars, may issue
PolIes OF insurance against loss or damage by 1re
lightning, tOrnadOes and cyclones, on dwelling
houses barns, sheds, outbuildngs, hay, grain, wool
ana other products cribs and their contents, live
sJocki wagons carriages, harness, house
hold goods, wearing apparel pro
visions, musical instruments and libraries
being upon farms as farm property, 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
th1rty1ve feet to any other building. Mutual
thousand dollars more may issue policies OF in
surance on the above described kinds of property
situated in out Of the state of Kansas.
SEC. 8. Mutual fire insurance companies having
guarantee fund may accept in payment of the pre-
MUM on their policies, cash time notes payable
notes PAYABLE in assessments but fe members Of
said companies shall not be liable to the companies
or any other person to exceed the amount of their
premium, OF premium notes, and interest due there
on; and such notes shall become a lien upon the
property insured as provided by law
SEC. 6. When at meeting Of the board OF direc-
tors OF a mutual fire insurance company they shall
decide to create a guarantee funL, the secretary
shall open book for the subscription of shares,
as heretofore provided, he shall notify the super
mtendent of insurance, who shall Immediately
examine, as provided by law, the securities, notes
standing o. said cOrnDsnv and if 577,Ou s1Ycg,
examination he finds they have complied with this
41Ws Nc SHAH
ity to do mutual and cash business and issue poll
Cies in accordance with this act.
SEC. z. The directors of mutual fire insurance
company may re-insure its risks whenever they
deem it for the best interest Of the company by first
obtaining the consent OF the state superintendent of
insurance, and shall make assessment to pay for
the reinsurng Of its risks above provided; but
the company has a guarantee fund, the assessment
notes shall not be assessed to re-insure the cash
policies.
SEC 8. This act shall take effect and be in force
from and after its publication in the official state
paper.
Approved March G. 1895
I do hereby certify that the foregoing is true
and correct copy of the original enrolled bill now
file in my office.
In testimony whereof have hereunto subscribed
my name and affixed my official seal.
LsEAI-I Done at Topeka, Kansas, this 9th day of
March, A. D. 1885.
i. b. ALLEN.
Secretary of State