The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1906-07-07
PAGE FIVE

| premium named herein" This provi-
sion is of no force or effect for the
passed in 1903 which is now the law
| of this state and which repeats all
previous laws contains the follow
ing provision as part of Section l Of
said act: THE trustees of any such
company shall adopt such bylaws as
they may deem proper for the gov
eminent of it's officers and the conduct
of its affairs, and said bylaws shall
also provide for the liability of its
members for the payment of losses
and expenses: Provided, that such IL
ability shall not be less than a sum
equal to one annual premium nor moro
than sum equal to five times the
amount Of one annual premium, and
such liability when so determined by
the bylaws shall be the entire liability
of each member" 1t will thus be seen
that the company has no right in it's
bylaws or through it's trustees to re-
lieve policyhOlder from a liability
equal to at least one annual premium
and they may be liable to five times
this amount. Having once become a
member Of the company by taking out
policy of insurance the legislature
has expressly provided one way, and
one way only for release from this
liability and that is contained in Sec
ton 5 of the act above referred to,
which section is copied in full; "Sec-
ton 5. Any member of such company
or association may withdraw and be
released from all liability as a MEM
ber by surrendering his policy of in
surance in such company or associa-
writing of his intention to withdraw,
and paying all dues and assessments
due or pending at the time of his
withdrawal; but the liability of men,
bers for their pro rata share Of the
losses Of such company or associa-
ton shall not cease until the forego-
ing conditions have been complied
with.'
1t will be thus seen that once be-
coming a member by taking out pol
icy the policyholder remains liable for
his pro rata share of the losses of the
company until he has complied with
the foregoing conditions. This is es-
tablished clearly the laws of this
state, and applies unquestionably to
all policies issued by companies or
ganized in this state. We cannot ex-
anime the laws as to all of the states
to determine definitely what would be
the effect of a policy taken out in this
state in a mutual company organized
| in some other state, but we have no
hesitancy in saying that in illinois,,
! Massachusetts, Michigan, Missouri,
New Jersey. New York and Ohio the
same rule has been announced by the
courts of those states and that if a
person takes out an insurance in a
mutual company organized in any
other state than the state of Wash
ington the probabilities are that he
assumes a liability for the proper
tionate amount of the losses the same
as he would if he had taken out pol
lev in a company organized in this
state.
We think this answers fully the
questions propounded by you,
Respectfully yours,
SHARPSTEIN & SHARPSTEIN,
In carefully looking into the above
opinions rendered by the best legal
minds in the state, the property own
ers and policyholders will readily see
that there is no real limit to the
amount of their liability when insured
in a Mutual Insurance Company.
A business man should know what
he is paying for when buying 1nsur-
ance and further should know whether
he is purchasing out and out insur-
lance. or merely a promise to pay with
a bunch of strings attached.
local BOARD OF FIRE UNDER
| WpITERS OF WAILA WALLA
WASHINGTON.