The Olneyville times. (Olneyville [Providence, R.I.]) 1887-1917, 1907-07-05

/ whole or any part Of which under the
| provisions OF this chapter may be equally
divided between and Set apart 20 con-
| stitute guaranty surplus and special re-
serve funds which certificate shall be
/ recorded In the insurance department..
Sec. 3. After the date OF filing any such
resolution with the insurance commits
| sioner such company shall not make or
declare or pay in any form any dividend
| upon its capital stock exceeding eight per
cent per annum thereupon and six per
l cent. per annum upon the surplus funds
| 10 be formed hereunder until after It's
/ guaranty surplus fund and its special re-
serve fund shall have together accumu-
/ lated TO an amount equal it's capital
! stock: and any part OF the surplus profits
| Of such company above such annual divi-
/ dcnd may be equally divided between and
| set apart 10 constitute the said guaranty
| surplus fund and the said special reserve
| fund which funds shall be held and used
I as hereinafter provided ana not other
! wise. And any company doing business
! under this chapter which shall declare or
pay any dividend contrary 10 the pro-
l visions herein contained shall forfeit its
charter and be liable 10 be proceeded
against by the attorney-general for its
dissolution.
Sec. 4. Whenever such company shall
notify the insurance commissioner that
II has fulfilled the requirements already
/ expressed in this act, and that it's guar
/
J fund taken together equal it's capital
stock, the commissioner shall make
examination OF such company and make
a certificate Of the result thereof, and
( file the same In his office; and IL the com
missioner shall find that said combined
funds shall equal the capital stock of
such company, thereafter such company
may continue, out of any subsequent
7 profits Of its business. TO add to such
| funds: Provided, that whenever any ad-
dition is made 10 the special reserve fund
an equal sum shall be carried TO the
| guaranty surplus fund.
/ Sec. 5. Said guaranty surplus fund shall
/ be held and be invested by such company
| in the same manner as It's capital stock
/ and surplus accumulation may be held and
/ be invested and shall be liable and ap-
I plcable in the same manner as the
/ capital stock to the payment generally
/ of the losses Of such company.
Sec. g. Said special reserve fund shall
be invested according to existing laws re-
( lating to investments Of capital by fire
! insurance companies, and shall be de-
posted, from time to time as the same
/ shall accumulate and be invested, with
/ the insurance commissioner of the state,
| who shall permit the company depositing
! the same TO change such deposits by
| substituting for those Withdrawn others
! of equal amount and value, and TO collect
! and receive the interest or dividends upon
| such securities as the same may accrue;
/ and said fund shall not be regarded as
! any part Of the assets in possession of
| said company, so as 10 be or render the
! same liable for any claim for loss by
! IRE or otherwise except as herein pro-
/ Yided.
Sec. T. In estimating the profit of any
! such company for the purpose OF making
! a division thereof between said guaranty
surplus fund and such special reserve
! fund, until such funds shall together
J amount TO a sum equal TO the capital
! stock Of such company. there shall be
| deducted from the gross assets of the
| company including for this purpose the
amount of the special reserve fund, the
sum of the following items:
First The amount of all outstanding
! claims;
Second. An amount sufficient to meet
the liability OF such company for the un-
! earned premiums upon its uneXpired
/ policies. which amount shall at least equal
/ one-half the premiums received on poll
/ cies having less than one year TO run
from the date OF policy and a pro rata
proportion Of tho premiums received on
| the policies having more than one year
10 run from the date Of policy and shall
! be known as the reinsurance liability;
Third. The amount of it's guaranty
! surplus fund and Of its special reserve
! fund
/ Fourth The amount of the capital of
| The company; and
/ Fifth. Interest at the rate of eight per
centum per annum upon the amount Of
/ the capital and six per centum per an
/ mum upon the amount of the said funds
for whatever time shall 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 TO an equal division be-
tween the said funds as is herein pro-
/ Vided.
Sec. S. Whenever the claims upon such
/ company shall exceed the amount of its
capital stock and Of the guaranty surplus
/ FUND provided for by this chapter the
said company shall notify the insurance
. commissioner Of the fact. who shall then
/ make or cause to be made an examination
! of said company, and shall issue his
/ certificate of the result showing tho
amounts OF capital OF guaranty surplus
/ fund. of special reserve fund of re-
. insurance liability, and of other assets:
. and upon his issuing such certificate in
/ duplicate, one copy to be given to the
/ company and one to be recorded in the
. insurance department. the said special re-
serve fund shall be Immediately held to
| Protect all policy holders of said company
! other than such as are claimants upon
/ il a the date of said certificate. and said
! special reserve fund together with other
. assets certified by the insurance com
missioner as equal in value 10 the amount
. OF the uncarned premiums of such com
pany. to be asccrtained as hereinbefore
provided, shall constitute the capital and
/ assets OF such company for the protec-
tion Of policy holders other than such
claimants and for tho further conduct OF
its business, and any official certificate
~ the insurance commissioner herein pro-
vidcd for shall be binding and conclusive
upon all parties interested in such com
pany, whether as stockholders. creditors,
. mr. polcy-holdors; and upon the payment
' To claimants. who are such at the date
Of said certificate. OF the full sum of the
/ capital or such company and Of its guar
antv surplus fund and of it's assets at
said date excepting only such special re-
serve fund and an amount of its assets
. equal to the liability OF the company for
. mc3rned premiums. as certified by
such Insurance commissioner such COM
pany shall be forever discharged from
any and al further liability TO such
claimants and To- each of them, and the