The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-03-12
Published in The Topeka State Journal
March IL, 1871
HOTSE BILL NO. 3a6.

HOUSE BILL NO. 1856.
AN ACT relating to mutual hail insur-
ance companies, and repeating chapter
153 of the Laws of 1909, and providing
for penalties for the violation of GER
tain provisions of this act, and prohibit
ing foreign mutual hail insurance COM
panies from writing insurance in this
state.
Be it enacted by the Legislature of the
State of Kansas:
Section 1. Any number of persons nos
less than four hundred, residing in this
state, who collectively own not less than
twenty thousand acres of growing grail,
in this state, which they desire to insure
shall actually subscribe for such insur-
ance to the amount of two hundred thou
sand dollars, in not less than four hum
dred separate risks, located in not less
than ten counties, and upon not more
than five risks of one hundred sixty acres
each in any one township, may form an
mutual insurance OF growing gram
against loss or damage by hail; provided.
that each subscriber shall have paid
membership fee of five dollars for which
duplicate receipts have been executed
conditioned for the return thereof at the
end of one year from date of first sub
scription, if the company has not then
completed its organization, the original
receipt to be delivered to the member
subscribing, and the duplicate receipt to-
gether with the fee shall within thirty
days after the execution thereof be de-
posted with the superintendent of nsur-
ance until a certificate of authority to
transact business has been granted by the
superintendent of insurance, if granted
within one year from date of first sue
Scription, otherwise to be returned to the
subscribing member.
Sec. .. Such persons desiring to in
corporate shall file in the office of Inc
superintendent of insurance a statement
signed and duly acknowledged by all of
the incorporatorS stating their purpose of
forming a company as expressed in the
first section of this act for the tranSaC-
ton of the business of insurance, the
number of acres of growing grain owned
scribed for. the description and location
of the grain, the address of each sub
scriber, and a duly crtified copy of the
charter issued by the state of Kansas.
The charter shall set forth the name of
the organization, place of business, the
home or general office thereof, the IN
rectors chosen, and the specific purpose
fo- which the organization is formed;
provided. that companies incorporated
under existing laws complying with all
other requirements of this act shall not
be required to reincorporate.
Sec 8. The officers of each such company
having custody of the papers funds
thereof shall enter into bonds to the ste tie
of Kansas for the benefits of all parties
interested, in the sum of fifty thousand
dollars, with three or more sureties
with some surety company authorized to
DO business in Kansas. to be approved by
the superintendent of insurance. condj-
toned for the faithful accounting for and
proper payment and disbursement to tn :.
legitimate purposes of the company OF all
hands Such bond shall be examined d.;
to its suffciency by the superintendent
of insurance, and shall be renewed when
ever he shall require, and with his ap-
proval Endorsed thereon shall be filed
with the treasurer of the state.
Sec. 4. When the said bond and state
ment shall be approved and tiled and
when such other papers as may be re-
quired by this act are approved by the
superintendent of insurance, the superin-
tendent of insurance shall issue to sucn
authority to commence business
1t shall be unlawful for any hail insur-
ance company organized under the laws
insurance in this state WITHOUT first pre-
curing from the superintendent of insur-
ance a ceruficate OF authority SO to do
stating that said company has fully COM
piled with all requirements of this act
applicable to such company.
Sec. S. All persons desiring insurance
shall make application on blanks fur
nished by the company, and shall pay
the premium in cash or by giving no g
for one annual rate. If note Is given
it shall be a lien on the property insured.
when recorded as other chattel mortgages
are recorded. Every person who effects
insurance in any company organized
der the provisions of this act. and als1
their heirs executors, administra tors and
assigns. continuing to be so insured, shall
thereby become members of SAID corpor
alton during the period of insurance. and
shall be bound to pay for losses and sucl
pany. in proportion to the original
AMOUNT of his note or notes as given for
one annual premium In companies or
ganized under the provisions of this acc
all notes taken by them in consideration
of premiums their policies shall be
assessable and coilectible in part or In
whole for the purpose of paying all losses
and expenses that may accrue to the
company
Sec s. The directors of every sui
company on the first day of August of
each year or soon thereafter as prac
ticable shall meet and review all adjust
ments and determine the rate of assess
ment necessary to pay all losses and ex
penses in full, and shall levy such assess
ment at once All assessments shall be
due at the home office of the company rot
later than thirty days after the date sueb
assessment is made. All losses shall be