The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-02-28

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Published in The Topeka state Journal
February Is, 1Sn1
HOUSE BILL No. 4o4.
an !s.. ACT relating to mutual fire. light
ana an amending sections las, 149, 1877. 159,
20 20 and ia, chapter So of the General
statute statutes e. Of 1893. and repeating said
be 1t enacted by the Legislature of the
StaIe or Kansas:
% or the General Statutes Of 1903 is here
SSy amended SO as to read as follows:
the provisions Of this act if premium
note note be given, all such notes taken by
mem mem IN consideration of premiums on
leetible in part or in Whole for the the pu Er-
pose or paying any losses which have
atiTG1ueo or may accrue during. the con-
ra,uance OF tine policy and to defray ex-
penses as provided in the charter and by
Avs OF the company; and all such notes
town. laiI nave Veins inserted on their face the fol-
not ets'3oa and hagreed that this note is
nave the right to determine the amount
OF the premium note to be given and the
part OF the premium to be paid In cash.
ana lndorsed thereon; but in no case
S Siaii the race or the note be more than
i've times the amount Of the cash paw
ment Endorsed thereon. Nor shall the cash
annual rate.
See: 3. That section 149 of chapter IS
ol me General Statutes of 1909 is hereby
amended so as to read as follows: Sec
~ Every person who effects insurance
III any company organized under the pro-
e VISIONS OF this act. and also his heirs.
oAccutofS, administrators and assigns,
continuing to be so insured, shall there
BY become members of said corporation
uuring the period of insurance and shall
be bound to pay losses and such neces-
sdry expenses as accrue in and to the
company IN proportion to the original
amount of his deposit note or notes as
given for one annual rate The diree-
Tors shall annually, in the month of IAN
uary, levy sufficient assessment on all
premium notes to Iqufdate all liabilities
or the company existing at the time of
the assessment, and they shall make such
nay aiso' IN January of each year, esti-
mate the rates of assessment on the pre-
mum notes which the experience of the
company indicates will be necessary to
provide for the losses and expenses for
sIs ensuing year and make and collect
assessments assess IN advance on all the pre-
mum notes OF. the company deemed by
the board sufficient. to pay such losses
and expenses In determining the rate
snail not include either the guarantee
1und the reserve fund or the unused
por9on OF the cash premiums on hand
as funds available for the payment of
accrued liabilities, but shall levy such
assessments on the notes as may be
necessary in order to require the makers
an losses and expenses already accrued
and estimated to accrue within the en-
may be given in such number of differ
ent lists throughout the year as the
t poard q, deem advisable, having regard to
be paid on any assessment by each mem
Der shall always be in proportion to the
original amount of his deposit note or
notes for one annual rate, and shall be
paid to the company within thirty days
next after notice of such assessment is
given in the manner provided in the bylaws
The company shall not be liable to the
assured for anv loss that may occur
during the period from the day on which
an assessment on his premium note is
due and the date of the payment thereof
No such company shalt borrow money
OF create a debt, unless for the purpose
of necessary office buildings. to continue
beyond the period when such assessments
may be collected and applied to the pay
assessed for liabilities prior to his mem
bership.
+ Sec. 8. That section 1877 of chapter SIS
of the General Statutes of 1909 is here
by amended so as to read as follows:
Sec. 157. No such company shall expose
itself to loss. on any risk or. hazard.
either by one or more policies to an
amount exceeding ten per cent of all it's
resources at the date of the policy, ex-
cept in organizing the company policies
may be issued up to one thousand dol
lars nor for any amount thereafter
company may reinsure a portion Of said
risk at the discretion of the board of
Sec. 4. That section 159 of chapter IS
of the General Statutes of 1909 is hereby
amended to read as follows: Sec. 159
A reserve fund equal to not less than
ten per cent nor more than twenty-five
per cent, as the board of directors may
determine, of the premiums received on
tanned out of the cash receipts of tine
company until such reserve fund shall
amount to at least three thousand dol
lars per million of dollars Of insurance car
ried by the company, after which the
per cent Of the cash receipts that shall
be added to this reserve may be reduced
~ fha hoo .f 4
tors, And whenever the cash in the
hands OF the treasurer of any such COM
pany, not included in the reserve fund,
is insufficient to pay any loss that
may accrue, then such deficiency shall
be taken from the reserve fund.- but such
one-half until an assessment shall be
made upon the premium notes held by
the company. sufficient to fully reimburse
the reserve fund. And any such dininu-
ton of the reserve fund shall be held to
be a liability to be provided for by assess
M rs on the premium n. notes. such part
is not needed for immediate use of the
company shall be invested as directed
by the directors in such securities as 9th
er insurance companies organized in this
state are by law authorized to make in
vestments in. Any other reserves thai
have been accumulated by the company
may be attached to and made part OF
| this reserve fund.
| of the General Statutes of 1909 is hereby
amended SO as to read as follows: Sec
| 173. Any such insurance company may
create such a guarantee fund by setting
| apart not more than fifty per cent of the
| excess of its funds over and above the
amount of all current liabilities for losses
and expenses and may increase such fund
| from time to time out of its revenue ovel
and above such liabilities, and such funds
| shall be invested in mortgages on rea
estate worth at least double the amount
! loaned thereon, or in the bonds of any
| county, school district, or incorporated
| city issued under the laws of this state
| at their market value or in United States
| or state bonds at their market value
| The guarantee fund of mutual companie:
| shall be liable for the claims againsi
| the company only after all other re
| sources have been exhausted.
Sec. 6. That section ia of chapter s.
| of the General Statutes of 1909 is hereby
| amended so as to read as follows: Sec
1 ia Mutual fire and tornado insurance
! companies having. a guarantee fund a.
provided in this act to the amount o.
| twenty-five thousand dollars may ,issu,
| policies of insurance against loss or dam
| age by fire, lightning tornadoes and cy