The independent-reporter. [volume] (Skowhegan, Me.) 1909-1955, 1913-03-06

stock company, the amount OF It's capltai
stock, and II a mutual company with
guarantee capital, the amount thereon. Ire
capital stock OF stock compa%y orsanlzea
for any of the purposes hereinoefore men
toned shall not be less than one hundred
thousand dollars, and a mutual company
Incorporated to transact any class or kina
of insurance other than fire. marine or
plate glass shall have a guarantee capltai
as provided in section forty-three Of chap,
ter .forty-pine. Of the revised statutes ana
holders of certificates OF such guarantee
capital shall not receive dividends In e1-
cess a seven per cent In any one year,
and IN no case unless such dlyldends are
bility ~ reqpjred by the Insurance commits
porated to transact IRE, marine and plate
cordance with the provisions, of section
twenty seven, chapter forty-nine of ire
revised statutes, and other provisions OF
the laws of this state relating to such com
pantes, provided, that they shall confne
their business to not more than ten towns,
mutual companies may incorporate for any
Of the foregoing purposes which 90 not so
limit their business and before doing any
business they shall establish guarantee
fund or capital of not less than ten thou
sand dollars which may be divided INTO
lars and certificates issued therefor
dividend not exceeding seven per cent In
any one calendar year may be paid from
providing for eli expenses. losses. reserves
and liabilities then incurred. Such guar
anty fund or capital shall be invested as
provided IN section eleven. chapter shs snrl ye
deposited with the state treasurer. When
the cash and other available assets OF the
company are exhausted such part Of said
approval a the Insurance commissioner.
be drawn end used to pay losses then due.
When such fund Is 70 drawn upon. the
drawn BY assessments upon the contingent
funds or notes Of the comp9r' and unless
such 5una rsSt9red wi I'm s SIX Soae1s
s sfo D 81 2, IN to the
amount Of stock owned by them for the
purpose Of restoting ssid capital; s Share n, re
holders and members OF such COMPANIES
law relative to their right to vote as a'oiy
respectively to share holders in stock com,
panies and policy holders In purely r'utaal
companies, aaid guaranty capital roy pc
retired, when the surplus funds OF the
company over and above all liabilities in
gliding guaranty capital shall equal or ex-
by vote OF the policy holders or any part
OF said guaranty capital may be retired
provided that the amount OF net surplus
snd do Snd shay a G0t ns 4y @
ital shall be retired when the net cash
assets OF the company equals twice the
amount OF guarantee capital.
Any mutual fire, marine or plate glass
insurance company which has established
a guaranty capital as provided herein and
has obtained applications for insurance as
required by section forty-four of chapter
forty-nine of the revised statutes. shall be
authorized by the insurance commissioner
to write business and such company may
take a premium note as provided In sec
ton twenty-seven Of chapter forty-nne Il
the revised statutes or IN lieu of said note
1t may charge and collect a premium IN
cash and by its bylaws and policies fix
the contingent mutual liabili+r of Its mem
bers for the payment of losses and ex-
penses not provided for by Its cash funds.
but such contingent liability OF a member
shall net BE- less than an a--ount equal to
and in addition to the cash premium writ
ten in his policy and in no case less than
one per cent Of the maximum liability OF
the company under said policy. The total
amount Of the liability Of the policy holder
shall be plainly and legibly stated upon
the iiDg-back of each polirv. Whenever
any reduction is made in the contingent
liability of members such reduction shall
apply. proportlonally to all policies IN
force.
[Approved March u, 1871
CHAPTER 40.
AN ACT to Amend Section Twenty-threee