St. Paul tidende. [volume] (St. Paul, Minn.) 1902-1928, 1907-05-10

1sOT.A PASSED AT ,
may. issue policies without a contingent
Liability: but the fact.that there IS no
Observation-Disclosures When Note Given
Except as provided in SECTION 1927, when,
ever a note or other written evidence or
due or to become due, upon any insur-
ance of property, except marine, the same
shall be full payment therefore and
ddpe : IL The eoq tenm t the : eo@e e X fadi ' fhat
evidence Of Indebtedness is not paid
a. a. maturity, the policy f., for Which y =
part may be cancelled upon notice and In
same manner as though said premium
was paid in cash and the surrender OF
debtedness shall constitute a return or
aymen Of the unearned portion! Of pre-
MUM, and in such event the parties liable
on Tuf Sa note or evid de g &c ct IND 1mdep PIE ness
MUM earned prior to. such cancellation.
and no more. Provided further, that
in case Of any cancellation of q policy.
Indebtedness. given for whole or part of
the premium thereon. may be by insurer
returned to the insured In lieu Of cash
to the extent of the unpaid amount there
for premiums or deposit for assessment.
or both. or for any part Of either, shall
t6er nego t55a and .1nte every y as assi eminent
~defenses. Nor shall any such notes be
Val1d for any purpose unless the words
not negotiable are plainly and legibly
Observation-Disclosures and How
Made-Whenever the net assets Of any
c eda1ta for l1 tha nayment g pf igcu ARE 'n 1osaes
and expenses above its reinsurance re-
serve, as provided by law, it shall make
IN assessment for the amount re-
liable thereto. The order for assess
ment shall be duly entered upon it's
records, with a statement Of its condi;;
cash eann at ast tns date dteot thereof notes. including audi co all
tingent amount liable IN such assessment,
the amount Of the assessment, and the
particular losses or other liabilities for
signed by each Oh director voting for the
order before n part of the assessment
IS collected. and any person liable there
to may inspect and take a copy there
1631-same. Guaranty Fund-Whenever,
by reason Of depreciation, loss. or other
wise. the net assets after providing for
other. debts, are less than the required
tlclency shall be restored by assessment
as above provided, notice Of which shall
be filed with the commissioner. When
ever the board of directors. or the COM
missioner, shall be of the opinion that
the insolvency of n company is prob
able, such board, or. upon their failure
two assessments made. the first to de-
termlne what each pol1cyholder should
equ1tably pay or receive in case Of with
draWal from the company and cancella-
J n Nf NJ I %1o Cnn@v1 ~,p@H q,,Nkl
er sum as each should pay to reinsure
! the unexpired term at the same rate as
: the first insurance. The directors shall
T mand 1T ns cause written " tie se notice ne and de-,
! or by mail upon each policyholder sub
ject thereto. After adjustment of the
first assessment, every policy upon which
shall be cancelled; but in no case shall
there be credited upon a policy more thar
If cancelled by the board Of directors
u uftaa tn the bylaws: If within two months
amount Of the policies whose holders
have paid the same is less than $500. all
other policies shall be void, and the COM
of adjusting the deficiency or access Of
premiums and settling outstanding
claims; No assessment shall be valid
duly notif eeI'i thereof IN nnV writing atS ,g01 wi Rfan
one year after the expiration or cancel
lation Of his policy. A mutual fire. III
surance company may be formed with,
may establish a guaranty fund divided
into certificates of $40 each, or multi
PIES thereof, and such guaranty fun
is provided for the investment Of capital
stock Of insurance companies. The GER
tificate holders Of such guaranty fund
shall be entitled to an annual dividend Of
respective certificates, If the net profits
or unused premiums left after all loss
es. expenses or liabilities, then incurred,
with reserve for reinsurance. are provided
for. shall be sufficient to pay the same;
and If the dividends in any one year are
less than ten (1O per cent, the differ
ence may be made up in any subse-
oT lent year or years f1gd from s%n,, the Ss net san Rr9fit f.
the payment of losses and expenses when
necessary. and If the guaranty fund be
impaired. the directors may make good
ment from future profits Of the
but no dividend shall be paid on gua
anty fund certificates while the guaranty
is impaired.
The holder, Of the guaranty fund GER
t~ificates hall not be liable for any more
than the amount Of his certificate which
has not been paid in and such amount
shall be plainly n legally stated on the
Each certificate holder of record shall
be entitled to one vote in person or by
Proxy pro yin in a. any n.y. meeting nee e t M "a of tn the members Of
him in guaranty fund certificates. The
guaranty fund may be reduced or re-
tired by vote Of the p~olicyholders Of the
company and the assent of the insur-
ance commissioner, if the net assets Of
the company above its reinsurance re-
serve and all other claims and obliga-
lions, and the amount Of it's guaranty
fund certificates and interest thereon for
two years last preceding and including
the date Of its last annual statement,
of the premiums in force.
Due notice of such proposed action on
the part OF the company shall be mailed
to each ~policyholder Of the ompany not
when such action may be taken.
In mutual fire insurance companies
! with a guaranty fund, the certificate
holders h be entitled to choose and
elect from mons their own number or
from among the ,policyholders at least
%rectOrs.
If I'M mutual fire insurance company
with a guaranty fund ceases to do busi-
ness, it shall not divide among it's GER
tlfcate holders any part Of Its assets
Obligations have been paid or cancelled.
Foreign mutual fire insurance COM
panies having a guaranty fund shall not
be required to make their certificates Of
guaranty fun conform to the provisions
Of his section, but when such certificates
thereof shall be charged as a liability.
Approved April %, 1907.
CHAPTER 322-H. F. NO. 524
AN ACT to amend section 1887 of the Re-
vised Laws Of the State of Minnesota
for the year 1905, relating to the salar-
les and clerk hire Of the judges of pro-
bate.
Ra If anao+ad hy tho T,eois1at,,ro ~ thu