The news-democrat. (Providence, R.I.) 1906-1909, 1907-07-08

paiance shall constitute the net oorplof
subject to an equal division between the
SAID FUNDS as Is herein provided
sec. O. whenever the claims upon SUCH
company stall exceed tho amount OF the
| capital stock and OF the guaranty s,~nI,,s
| fund provided for by this chapter the sahl
company shall notify the insurance com.
| missioner OF the fact. who Shall then
make or cause 10 be made an examination
on said company. and shall issue his GER
| uncade or the result. showing the amount
| OF capital, OF guaranty surplus fund OF
special reserve fund, OF re-insrrance ua-
bility, and OF other assets; and upon his
Issuing such certificate In duplicafe one
| copy 10 be given to the company and one
To be recorded In the Insurance depart
ment, the said special reserve fund shall
be Immediately held to protat all policy
| holders of said company other than such
| as are claimants upon Il at the date OF
said certificate and said special reserve
| nund together with other assets, certified
oy the insurance commissioners as equal
| IN value TO the amount or the unearned
premiums on such company, to be ascer-
\ tained as hereinbefore provided shall con-
| sutute the capital and assets of such COM
pany for the protection OF policy holders
| other than such claimants and for the
| further cogiuct of Its business, and any
OFFICIAL certificate OF the insurance conn
I missioner herein provided for shall be-
| oinning and conclusive upon all parties
| interested In such company, whether as
stockholders, creditors, or policy holders:
and upon the payment to claimants, who
| are such at the date of said certificate. OF
the full sum OF the capital Of such COM
pany and of Its guaranty surplus fund and
| or It's assets at said date. excepting only
| such special reserve fund and an amount
| or It's assets equal to the liability OF the
| company for unearned premiums, as SO
| certified by such insurance commissioners
| hxa IiuurI,
| from any and all further liability to such
| claimants and to each OF them, and the
| SAID insurance commissioner shall after
| issuing his said certificate. upon the de-
| mand or such company. transfer to ii all
| such securities as shall have been de-
posted with him by such company as such
special reserve fund. and IL the amount OF
| such special reserve fund be less than fifty
per cenfum of the full amount of the capi-
tai or the company. requisition shall be
Issued by the said insurance commissioners
| upon the stockholders TO make UP such
capital TO that proportion OF it's full
amount. Provided that any capital so
| impaired shall be made UP at least to the
sum of two hundred thousand dollars ana
| In case said company. after such requisf-
| non. shall fall TO make up its capital at
least 10 said sum OF two hundred thou
sand dollars. az therein directed, said
| special reserve fund shall still be held as
security and Liable for any and all losses
occurring upon policies of such company
Such company shall. In its annual state
ment to the insurance commissioner OF
| this state. set forth the amount OF such
special reserve fund and OF its guaranty
| surplus fund. If in consequence of the
payment OF losses by fires, or of the ex-
penses of the business, or of the interest or
| dividends payable under the provisions Of
| this act TO stockholders. or from any
cause. the guaranty surplus fund shall be
| reduced In amount below the aamounm of
| the special reserve fund. the directors Of
| thet corporation shall make no addltions
1 to thu special reserve fund untH the
guaranty surplus fund be equal to the
| special reserve fund The policy regis
ters. insurance maps. books Of record and
other books In use by such company in its
business. and its policy and other blanks
onice furniture. fixtures and supplies, are
not to be considered as assets, but
shall be held by the company for Its
| use in the protection OF its policyholders:
Provided. however. that II any amount
greater than a sum equal TO one-half
OF its capital stock shall by such
| company. under the provisions OF this
| chapter. have been deposited with such
commissioner. he shall retain of such Sc
curities an amount equal to onc-half OF
| what amount he shall so hold thereof in
excess OF n sum equal to such one-ha,f
| of such capital stock, and he shall trans
| fer the balance thereof to such company
| as herein provided, and the amount so
| transferred to such company shall from
| the time OF such transfer, provided the
1 amount thereof shall not he less than two
hundred thousand dollars. constitute the
capital stock Of such company for the
further conduct OF its business as here
| lnbefore provided, and the securities SO
| retained shall be regarded as the special
| reserve fund Of such company, to which
additions may be made as herein provided.
and, shall be held in the same manner.
| and for the same purpose. and under the
| same conditions the original special
| reserve fund OF such company was held.
| Sec. 9. IF at any time after said special
| reserve fund shall have been accumulated
| by any company the directors OF such
4 company shall present evidence satisfac-
| tory to the insurance commissioner that
! tho capital Of such company has become
| Impaired. he shall order the directors 10
| call upon the stockholders to make up
such impairment. and the board OF dlrec-
/ tors may thereupon require the necessary
payment by the stockholders to make
| good the whole OF such impairment or
| they may apply for that purpose tho
| whole or any part of the special reserve
| fund and require the stockholders pay
| ment Of such amount as may be necessary
10 make up the balance Of such impair
ment not made up out of the special re-
| serve fund. The stock OF every stock
holder shall be pledged and liable for the
amount assessed upon him TO make up
such impairment either in whole or in
part. and in case any stockholder refuses
| 10 pay such assessment the stock stand
| ing in his name may be sold at public
auction after thirty days notice in such
manner as the directors may provide. IL
| 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 mucn
OF said special reserve fund as Is neces-
sary for the purpose No company doing
business under this chapter shall insure
any larger amount upon any single risk
| than Is permitted by law TO company
possessing the same amount OF capital
Irrespective OF the fund herein provides
| for.
Sec 10 From and after the Gate when
| this act goes into effect every policy not
then I'm the hands OF agents Issued by
| company which has constituted ana set
apart n guaranty surplus and special re-
| serve fund under this or any prior law
| OF this state. shall have printed thereon
/ hnf