The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1909-04-30

claims;
seoond-An amount sufficient to meet
of such s po
lcies, which amount shall at least equal
one-half the premiums received on poll
the date e o pos year ao od esS bro 20 rata
portion of the premiums received on the
policies having more than one ayear to
the tb date 81 abty
| Ihlrd-The amount of its guaranty sur
plus 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
n nhe capital and six per centum p per f an
| Tor whatever time shall have elapsed
since the last preceding cash dividend:
And the balance shall constitute the net
| 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 it's
capital stock and of the guaranty sur
saS fGT ny TINS the
ance commissioner of the fact, VINO shall
then make or cause to be made an ex-
/ issue his certificate of the. result. show
Ing the amounts of capital, of guaranty
surplus fund. of special reserve fund. Of
reinsurance liability and Of Other other assets;
duplicate. one copy to be giyen, to the
company and one to be recorded in the
f the saia spee al
| protect all policy holders of said COM
pany other than such as are claimants
upon 1t at the date of said certificate and
| said special reserve fund, together with
other assets. certified by the, insurance
commissioner as equal In value. to the
amount of the unearned premiums of
such company, to be ascertained as here
| inbefore provided, shall constitute the
| capital and assets of such company for
the protection Of policy holders other
| conduct Of its business, and any official
certificate of the insurance commissioner
herein provided for shall be binding 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 cate of said certificate, Of the full
sum of the capital of such company and
of its guaranty surplus fund and Of IT'S
| assets at said date, excepting only such
! special reserve fund and an amount of
its assets equal to the liability of the
| company for unearned premiums, as so
| certified by such insurance commissioner,
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
| demand of such company transfer to 1t
| all such securities as shall have been de-
| posted with him by such company as
su r special reserve fund and If the
! less than fifty per centum Of the full
| amount of the capital of the company,
requstion shall be issued by the said in
| surance commissioner upon the stock
| holders 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 one hum
dred thousand dollars and in case said
company after such requisition, shall
| fan to make up its capital at least to
/ cnf1 80 A.. =
! lars. as therein directed, said special re-
| serve fund shall still be held as security
and liable for any and all losses occur
ring upon policies of such company. Such
company shall, in its annual statement
| TO the insurance commissioner Of this
| state, set forth the amount of such spe-
| surplus fund. If in consequence of the
payment of losses by fires. or of the
expenses of the business, or Of the in
ssrest or d. dividends i,1sS payable under the
! from any cause the guaranty surplus
| fund shall be reduced in amount below
the amount of the special reserve fund
make no additions to the special reserve
fund until the guaranty surplus fund is
equal to the special reserve fund. The
Of record and other books in use by such
| company in its business. and It's policy
and other blanks, office furniture. fix
cred as assets. but shall be held by the
company for its use in the protection of
its policy holders: Provided, however,
equal to one-haif Of its capital stock
shall by such company, under the pro-
visions of this chapter, have been de-
posted 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-half 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 company shall from the time Of
| of shall not be less than one hundred
| thousand dollars, constitute the capital
stock Of such company for the further
conduct of it's business as hereinbefore
provided, and the securities so retained
shall be regarded as the special reserve
fund of such company, to which addt-
and shall be held in the same manner,
and for the same purpose, and under the
same conditions as the original special
The The provisions of this section, providing IM;
for discharge Of the company from fur
Their liability to existing claimants upon
of its 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-
| lieve the stockholders Of said corporation
| from any liability imposed by the con-
sutution of this state.
Sec. 9. If at any time after said spe-
cial reserve fund shall have been ac-
cumulated by any company, the direc-
! tors of such company shall present evil
dence satisfactory to the insurance COM
missioner that the capital of such COM
pany has become impaired, he shall or
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
! the stockholders to make good the
whole Of such Impairment. or they may
apply for that purpose the whole or any
part Of the special reserve fund and re-
quire of the stockholders payment of
such amount as may be necessary to
make up the balance of such impair
ment not made up out Of the special re-
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 stockhoder refuses
ing in his name may be sold at public
| auction, after thirty DAYS notice. In such
manner as the directors may provide. If
| the board of directors elect to make good
such impairment or any part thereof out
ance 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 COM
pany doing business under this chapter
shall insure any larger amount upon any
| single risk that is permitted by law to
| a company possessing the same amount
Of capital irrespective Of the fund herein
| provided for.
Sec. 10. From and after the date when
| this act goes into effect, every policy
not then in the hands of agents issued
| by a company which has constituted and
set apart a guaranty surplus and special
law Of this state. shall have printed
| thereon by such company statement