The Providence news. (Providence [R.I.]) 1891-1906, 1896-06-10


pany at the date OF such examination. tha
whole or any part Of which under tha provi
sions OF this chapter, may be equally divided
between and set apart to constitute guaranty
surplus and special reserve funds, which cer-
tihcate shall be recorded in the insurance de
partment; and from and after the date Of the
recording Of said certificate all the policies
and renewals Of policies issued by said com
pany not then i'm the hands Of its agents shall
have printed thereon by said company no
tice that the same are Issued under and In
pursuance OF this chapter referring to the
same by its number and title. and such pol
icies and renewals shall be deemed TO have
beon issued and received subject to the provi
sions hereof"
SIC. 3. Section Is Of said chapter is hereby
amended so to read as follows:
"SEC. 2s. After the date mentioned in any
such resolution so passed and filed. such COM
pany shall not make or declare. or pay In any
form, any dividend upon its capital stock ex
ceeding eight pcr cent. per annum thereupon
and six per cent. upon the surplus funds TO be
formed hereunder, until after it's guaranty
surplus fund and its special reserve fund shall
have together accumulated 10 an amount equal
20 its capital stock; and any part Of the sur
plus profits Of such company above such an
nual dividend may be equally divided between
and set apart 90 constitute the said guaranty
surplus fund and the said special reserve fund
which funds shall be held and used as herein
after provided and not otherwise, and any
company doing business under this chapter
which shall declare or pay any dividend con,
trary 10 the provisions herein contained, shall
forfeit its charter and be liable to be proceed
cd against by the attorney general for its dis
solution Whenever such company shall notify
the insurance commissioner that 10 has fulfill
ed the requirements already expressed in this
section. and that its guaranty surplus fund and
its special reserve fund, taken together equal
At ior8 sl,aV he
an examination Of such company and make
certificate Of the result thereof, and file the
same in his office, and IL the commissioner
shall find that said combined funds shall equal
the capital stock Of such company, thereafter
such company may continue, out Of any sub
sequent profits OF its business, to add to such
funds; provided, that whenever any addition 10
made TO the special reserve fund an equal
sum shall be carried to the guaranty surplus
fund"
SEC. L. Section 81 Of said chapter is hereby
amended so as to read as follows:
''SEc. 81. In estimating the profit Of any
such company for the purpose OF making
division thereof between said guaranty surplus
fand and such special reserve fund. until such
funds shallfogether aI-.~..-.. equal 70
the capital Stock Of such company, there shall
be deducted from the gross assets of the COM
pany, including for this purpose the amount
Of the special reserve fund, the sum Of the fol.
lowing items:
"First-The amount OF all outstanding
claims.
"second. An amount sufficient to meet the
liability of such company for the unearned
premiums upon its unexpired policies, which
amount shall at least equal one half tho pre-
miums received on policies having less than
one year TO run from the date of policy, and
n pro rata proportion of the premiums received
on the policies having more than one year to
run from tho date of policy. and shall be
known as the reinsurance liability.
"rhird.--The amount of its guaranty surplus
fund and Of its special reserve fund.
"Fourth,-The amount Of the capital Of the
company; and
ifth.-Interest at the rate Of eight per CEN
tum per annum upon the amount OF the capt.
tai and six per centum per annum upon the
amount of the said funds for whatever time
-sisii have elapsed since the last preceding cash
dividend And the balance shall constitute
the net surplus of the company, any portion Of
which is subject 10 an equal division between
the said funds as is herein provided.
"fhe said restriction OF dividends upon the
capital stock OF such company shall continue
until the said funds shall together equal the
amount OF such capital, but any addition to
such funds beyond an amount equal to such
capital stock may be made out of any profits
Of the subsequent business of such company"
SEC. 8, Any company organized under the
laws Of this State authorized TO do n fire insur-
anco business which hath hitherto undertaken
to constitute and set apart guaranty surplus
and special reserve funds under the provisions
Of law hitherto existing Is confirmed therein,
and may continue to hold such funds for the
purposes authorized and designated by such
provisions Of law as amended by this act, upon
complying with the terms and conditions
thereof.
SEC, o. All acts and parts Of acts inconsist.
ent herewith arc hereby repealed, aud this
act shall take effect on and af6er the first day
OF February, 1896.