Dodge City times. [volume] (Dodge City, Kan.) 1876-1892, 1885-04-02
HOUSE BILL NO. 123.
Thirst published March Z, 1885. J
AN ACT

10 authorize mutual fire insurance companies to
provide for guarantee fund to increase the 90
cur1ty of policy holders.
Be It enacted By the legislature Of the state Of
Kansas:
SfoTIoN l. That any mutual fire insurance COM
pepy 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 proteo.
ton of its policy holders, create a guarantee fund
Of not less than twenty five thousand dollars, with
the privilege of increasing il 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 moro
tn AN ten per cent per annum; said dividends shall
be paid only from the net profits derived from the
cash business.
SEC 2. The guarantee fund above provided,
shan 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-haf moro
Ihan the amount loaned thereon or in the stock OF
corporations organized under the laws of this state,
s4 their market value, inerest-bOnds in corpora
lions OF this state, In the United States state
municipal bonds at their market value, or BY
md secured by the pledge of collateras of the kind
specifed In this section, OF onefourth more value
man said notes The guarantee fund OF mutual
companies shall be liable for the claims against the
company only after all other resources have been
Exhausted.
sro. s In the election of directors as now pro-
Ooed oy 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
SEC. 4. Mutual fire insurance companies having
guarantee fund, provided In this act, to the
amount Of twenty-five thousand dollars, may Issue
policies of insurance against loss or damage by fire,
Lightning, tornadoes and cyclones, on dwelling
and other products, cribs and their contents, live
stoce, wagons, carriages, harness, house
n1id goods, wearing a,. apparel r.I pro
being upon farms 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 and
In any one building or buildings that Is exposed
by the other and situated in the state of Kansas
detached dwelling, as understood in this section,
shaN be construed TO be dwelling not nearer than
thirty-fv feet to any other building. Mutual
panies having guarantee fund of one hundred
thousand dollars more may issue policies Of in
gurance on the above described kinds OF property
situated In out of the state of Kansas.
SEQ. s. Mutual fire insurance companies having
Q guarantee fund may accept in payment of the pre-
MUM on their policies, cnsh or time notes payable
notes payable in assessments, but the members Of
said companies shall not be liable to the companies
any other person to exceed the amount of their
premium, or premium notes. and interest due there
on: and such notes shall become a lien upon the
property insured as provided by law.
SEC. g. When at meeting of the board Of direc-
eOrs Of Q mutual fire In urance COMPANY they shall
decide to create q guarantee funs., the secretary
shall open d book for the subscription Of shares,
and when the required amount has been subscribed,
O. heretofore provided, he shall notify the super
mtendent Of insurance, who shall Immediately
examine, 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 to them his certificate of author
lily to do Q mutual and cash business, and issue poll
cdes In accordance with this act.
Sec. Z The directors of q mutual IRE insurance
company may re-insure its risks whenever they
deem for the best interest Of the company, by first
obtaining the consent of the state Of
Insurance, and shall make an assessment TO pay for
the reinsurinR Of its risks above provided: but II
the company has guarantee fund, the assessment
notee shall not be assessed to re-insure the cash
policies.
Sec. g. This act shall take effect and be In force
from and after lis publication in the official state
paper.
Approved March 6. 1855.
do hereby certify that the foregoing Is q true
and correct copy Of the original enrolled bill now
On Ole in my office.
In testimony whereof have hereunto subscribed
my name and affixed my official zeal.
(s1AL- Done at Topeka Kansas, this 9Th day OF
March, A. ID. 1855.
E.B. ALLEN,
Secretary of Stafa.