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

anty surplus fund be equal to the special
reserve fund. The policy-registsrs, IN
surance maps. books OF record and other
books in use by such company in its /
business. and its policy and other blanks.
office furniture. fixtures. and supplies are
not 10 be considered AS assets. but SHALL
be held By the company for it's use in
the protection OF its policy-holders: Pro-
vided. however. that IL any amount
greater than "A sum equal 10 half of
its capital stock shall by such compsny.l
under the provisions OF this chapter. have
been deposited with such commissioner,
he shall retain OF such securities anI
amount equal 10 one-half OF what amount
he shall so hold thereof in excess of a
sum equal 10 such one-half Of such cap
ital stock. and he shall transfer ths
balance thereof 10 such company as here
in provided. and the amount so trans
ferred 10 such company shall from the
time OF such transfer provided the
amount thereof shall not be less than
two hundred thousand dollars. constituted
the capital stock OF such company for
the further conduct OF its business a.
hereinbefore provided, and the securits:
so retained shall be- regarded as the spe
cial reserve fund of such company tol
which additions may be made as herein
provided. and shall he held In the same
manner, and for the same purpose. and
under the same conditions "a the original
special reserve fund OF such company was
held.
Sec Q. II at any time after said special
reserve fund shall have been accumu-
lated by any company the directors OF
such company shall present evidence sat
isfactory TO the insurance commissioner
that the capital Of such company has be-
come impaired, he shall order the direct
ors TO call upon the stockholders to make
up such impairment. and the board of
directors may thereupon require the
max ~ no Cto hnl lore IN
make good the whole amount OF such
impairment, or they may apply for that
purpose the whole or any part of the
special reserve fund and require OF the
stockholders payment of such amount as
may be necessary TO make up the balance
of such impairment not made up out OF
the special reserve fund. The stock of
every stockholder shall be pledged and
liable for the amount assessed upon him
TO make up such impairment either in
whole or i'm part, and in case any stock
holder refuses To pay such assessment the
stock standing i'm his name may be sold
at public auction after thirty days notice
i'm such manner as the directors may pro-
vide. If the board Of directors elect to
make good such impairment or any part
thereof out of the special reserve fund.
the insurance commissioner shall upon
request of said board transfer TO said
company so much of said special reserve
fund as is necessary for the purpose. No
company doing business under this chap
ter shall insure any larger amount upon
any single risk than is permitted by law
to a company possessing the same amount
OF capital irrespective of the fund herein
provided for
Sec TO- From and after the date when
this act goes into effect every policy not
then i'm the hands of agents issued by
a company which has constituted and set
apart "A guaranty surplus and special re-
sI.s -.
Of this state, shall have printed thereon
by such company a statement that the
same is issued under and In pursuance of
the laws of the state of Rhode Island
relating TO guaranty surplus and special
reserve funds, and every such policy shall
be deemed to have been issued and re-
ceived subject to the provisions hereof.
Sec. II. Sections 26 to SO, both inclusive.
of Chapter 1Sl of the General Laws, and
Chapter 307 OF the Public Laws passed
at the January session of the general
assembly, A. -. 1926, are hereby repealed:
Provided, however, that the action Of any
company organized under the laws OF
this state. authorized to do a fire nsur-
ance business, in constituting and setting
apart guaranty surplus and special re-
serve funds under the acts hereby re-
pcaled or under any prior act of the
general assembly, is hereby confirmed and
approved. and said companies may con-
tirue TO hold and maintain the funds so
constituted and set apart. subject here
after to the terms and provisions of this
act: and provided. further, that as to
all policies issued prior to the date when
this act goes into effect. and which by
their terms are made subject to the acts
hereby repealed. said acts shall remain
in full force and effect.
Sec 10. This act shall take effect on the
first day of July A. ID. 1907
Correct-Attest
CHARLES Z. BENNETT,
Secretary of state