The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-03-06
Published in The Topeka State Journal
March 6, 1871

SENATE BILL. No. 116
AN ACT relating to certain mutual in
demnlty sociationS, and supplemental
to chapter 20S, of the Session Laws of
Kansas of 1911.
Be it enacted by the Legislature OF tn.
Section 1. The officer or officers of any
mutual indemnity association organized
under the provisions of chap EOS of the
session Laws of 1911 having custody of
the papers and funds thereof shall enter
into bonds to the state of Kansas, for the
benefit OF the members Of such associa-
ton, in the sum of ten thousand dollars
When the membership of such associa ton
shall have reached the number of two
thousand, the amount of such bonds shall
be increased to twenty thousand dollars;
and thereafter the amount of such bonds
shall be increased ten thousand. dollars
for each additional one thousand members
added to the membership of such associa-
ton, until the total amount of such bonds
shall be fifty thousand dollars, when no
further increase shall be required. Such
bonds shall be approved by the Superin-
tendent Of Insurance and shall be condi-
toned for the faithful accounting for, and
the proper payment and disbursement to
the legitimate purposes or the association
of, all moneys thereof which come into
their hands and for the faithful perform
ance Of all contracts made with its certiff-
cate or policy holders.
Sec. .. The officers and directors OF such
association shall set apart a reserve
fund sum equal to not less than five
per cent of the proceeds of each assess
ment or tnstallment or cash premium,
paid by the members thereof, until such
reserve fund shall amount to not less than
Sc. 90 for each member of such association.
Such reserve fund may be drawn upon by
the order of the board of directors of
such association. to pay the legitimate
losses of the association as result OF
the indemnifying of its poncyholders- And
when so drawn upon and reduced to less
than such sum of $500 for each member
of such association, it shall be restored
to such ratio in the same manner as is
provided for its original accumulation.
Sec. 8. Every association formed under
this act shall provide in its bylaws the
sole personal liability of it's members to
the association: and the Individual mem
hers of such association shall not be held
liable for any of the debts or obligations
of such association beyond the amount
provided and stated in such bylaws.
Sec. 4. This act shall take effect and
be in force from and after its pubncation
in the official state paper
I hereby certify that the above Bill origi-
mated in the Senate, and passed that body
L. P. KING, Pres. Pro. Tenn.
of the Senate.
BURT E. BROWN.
Secretary OF the Senate.
Passed the House February 26-1s1S.
W. L BROWN,
Speaker OF the House.
GEO. E. ROGERS,
Chief Clerk Of the House.
pfi GEO. H. HODGES.
Governor.
State of Kansas,
office of the Secretary of State
I. CHAS. H. SESSIONS, Secretary of
State of the State OF Kansas, do hereby
certify that the above and foregoing is a
correct copy of the original enrolled bill
now on file in my office.
IN TESTIMONY WHEREOF, I have
hereunto subscribed my name
LSeal1 and affixed my official seal,
this 4th day of March, 1873
CHAS. H. SESSIONS
Secretary of State,
By ]. T. BOTKIN
Asst Secretary of State.