Echo de l'ouest. [volume] (Minneapolis, Minn.) 1883-1929, 1909-04-30
amount Of the special reserve, the sum
Of the following items:

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First-The amount of all outstanding
claims;
Seoond-An amount sufficient to meet
e ear tsddD preymf or Suc ano SoI IT'S nyne .u5 q pol
icies, which amour shall at least equa'
one-half the premiums received on pon,
f fha nay hav'ng one year or or less 9 nr 70 rata ' npon
portion Of the premiums received on the
policies having more than one year 70
run from the date Of policy. and snail
be known as the reinsurance Hablllty'
Third-The amount of its guaranty sur
plus fun and of it's special reserve fund:
Fourth-The amount of the capital of
the company: and,
Fifth-Interest at the rate of eight per
centum per annuna upon the amount OF
the capital and six per centum per an
n nun up uPon the a tiaes tb Of the Say ya'a e7a anged
since the last preceding cash DIVIDEND:
And the balance shall constitute the net
surplus Of the company. any portion OF
tween the said funds as is herein pro-
vided.
Sec. 8. Whenever the claims upon such
e capiPPal ste eee'' a adoe Of the a"e guaranty stags,at sur
plus fund provided for by this, chapter
the said company shall notify the insur,
ance commissioner of the fact, who shall
animation of said company, and shall
issue his certificate of the result, show
ing the amounts Of capital, of guaranty
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reinsurance liability and of other assets;
and upon his issuing. such certificate IN
duplicate, one copy to be given to the
Insurance department, the said special
reserve fund shall be Immediately held to
protect all policy holders of said COM
1 parry g other n TT than an SUCH of a, as c are Glafma and
said special reserve fund, together with
other assets. certified by the, Insurance
commissioner as equal In value to the
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such company, to be ascertained as here
inbefore provided. shall constitute the
capital and assets Of such company Tor
the protection of policy holders other
conduct Of it's business, and any official
certificate of the insurance commissions
herein provided for shall be binding ana "a
such company. whether as stockholders.
creditors Or policy holders, and upon the
payment to claimants who are such at
sum of the capital Of such company and
Of it's guaranty surplus fund and ~ &c
assets at said date, excepting My such
special reserve FUND and an amount OF
company for unearned premiums, as so
certified by such insurance commissioners
such company shall be forever discharged
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
ali such securities as shah lave been de-
posted with him BY such company as
such special reserve fund. and if the
amount of such special reserve fund be
less than fifty per centum of the full
amount Of the capital Of the company, a
requtsition shall be issued by the said in
surance commissioner upon the stock.
proportion Of it's full amount; provided,
that any capital 80 impaired shall be
made up at least to the sum of one hun
company. after such requisition, shall
fail to make up its capital at least to
said sum of one hundred thousand dol
lars, as therein directed. said special re-
and liable for any and all losses occur
ring upon policies of such company. Such
company shall: in its annual statement
state, set forth the amount of such spe-
cial reserve fund and Of its guaranty
surplus fund. If in Consequence Of the
payment Of losses BY fires, o. ct ct the the
terest or dividends payable. under the
provisions of this act to stockholders, or
from any cause. the guaranty surplus
the amount of the special reserve fund
the directors Of the corporation shall
make no additions to the special reserve
fund until the guaranty surplus fund Is
policy registers. insurance maps, books
Of record and other books In use by such
company in its business, and Its policy
cred as assets. but shall be held by the
company for its use in the protection Of
equal to one-half Of its capital stock
shall by such company, under the pro-
pcsited with such Commissioner, he shall
retain of such securities an amount
equal to one-half Of what amount he
shall so hold thereof In excess Of a sum
equal to such one-ha1f Of such capital
stock. and he shall transfer the balance
thereof to such company as herein pro-
vided. and the amount so transferred to
such transfer. provided the amount there
of shall not be less than one hundred
thousand dollars. constitute the capital
stock send1, Of 81 suG n company company f es b 1ne rhetnee
provided, and the securities so retained
shall be regarded as the special reserve
fund Of such company, to which AGO.
and shall be held In the same manner,
and for the same purpose, and under the
same conditions as the original special
The provisions Of this section. providing
for discharge Of the company from fur
ther liability to existing claimants upon
application to the payment Of such claims
Of it's capital surplus and assets, ex-
cepting the special reserve fund, and an
amount equal to liability for %unearned
premiums. shall not be construed to re-
iieve the Stockholders of said corporation
stitution Of this state:
Sec. 8. If at any time after said spe-
c,al reserve fund shall have been &C
cumu]ated by any company, the dtrec-
tors Of such company shall present evil
dence satisfactory to the insurance com
missioner that the capital Of such COM
der the directors to call upon the stock
holders, to make up such impairment.
and the board Of directors may there
upon require the necessary payment by
whole Of such impairment, or they may
apply for that purpose the whole or any
part Of the special reserve u and re-
nuire of the stockholders payment of
such amount as may be necessary to
make up the balance Of such impair
rnent 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 IN
such Impairment, either in whole or in
mart, and in case any stockholder refuses
tc pay such assessment; the stock stand
auction. after thirty davs' notice. IN such
manner as the directors may provide. If
the board Of directors elect to make good
If the snecia1. reserve fund. the insnr,,
ance commissioners shall. unon request
Of said board. transfer to said company
80 much Of said special reserve fund as
panv doing business under this chanter
shall insure any larger amount upon any
single risk that is nermftted by law tn
y comnanv possessing the same amount
crowded for.
Sec. 10. From and after the date when
his act goes 81 into h.n dffe ct every every } p.1'eG
nv a company wh'ch has constituted ard
set anart a guaranty surplus and special
reser7e fund, under this or any prior
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