The independent-reporter. [volume] (Skowhegan, Me.) 1909-1955, 1915-04-08
CHAPFER 24e.


AN ACT Amendatory of Section One
Hundred Twenty-six of Chapter For
ty-nine OF the Revised Statutes. Re-
lating to the Reserve Fund Deposit
Assessment Casualty Insurance
Companies.
Be 1t enacted. etc:
Section one hundred twenty-sk OF
chapter forty-nine Of the revised stat
utes Is hereby amended by striking
out all between the word treasurer"
in the seventh line and the word ''un-
TIL in the eighth line. and inserting In
place thereof the words, q sum SUM
Gent to make the total deposit with
said treasurer not less than the
amount of one assessment, or periodi-
cal call on all it's policy holders for
benefit and expense funds; and also
In the twenty third line the words for
benefit and expense funds nor to less
than one thousand dollars 30 that said
section, when amended. shall read Is
follows:
Section 1875. Any corporation or
ganized under section one hundred and
twenty-three. or any corporation OF
this State doing assessment insurance
business under this chapter or its
sho 81 SAFE un as
the benefit and protection OF certihcate
holders in said corporation; for the
creation of which It shall on or before
the thirty-first day Of December OF
a sum sufficient to mako the total de-
posit with said treasurer not less than
the amount OF one assessment or peri
odical call on all its policy holders for
benefit and expense funds until. the re-
serve fund so accumulated shall
amount, together with the amount
there deposited prior to March one.
eighteen hundred and eighty-nine. to
not less than twenty-five thousand dol
Ia bn IA =
ed in such interest-bqering securities
as the Governor and Council may ap-
prove. or In such securities as any in
surance company or savings banks
to hold for purpose of investment.
These securities shall be held in trust
by the Treasurer of State. but the cor
poration shall have at all times the
curities for others Of like amount and
character. When deemed advisable by
a majority of the directors. such a
part of the fund as may be considered
necessary. may be applied from time
to time, to the payment of claims I'm
der insurance contracts and the ex-
pense necessarily incident thereto and
for no other purpose. Provided, how
ever. that said fund shall not at any
time be reduced below an amount equal
to one assessment or periodical call
upon all of its members for benefit and
expense funds nor to less than one
thousand dollars. The Insurance Com
missioner shall annually. in February.
minimum amount Of reserve fund re-
Quired to be kept on deposit In the
State Treasury by each corporation
doing business on the assessment plan,
tion shall neglect for sixty days to
satisfy any Judgment against 1t. in
any court in this State, then the said
treasurer shall convert into money any
-
Isfy such Judgment. and said corpora
ton shall not transact any further
business until said deposit ID restored.
When any such corporation shall dis
continue business. any justice Of the
Supreme Judicial court may appoint
a receiver or agent to administer any
unexhausted portion Of such fund
which shall be used. less compensa-
tion not to exceed five per cent, as
such court or justice may allow the re-
of accrued indemnity claims upon Ger
tif1cates or policies, or IL insufficient
to pay such claims in full, they shall
be paid, pro rata; second. IL balance
claims. such balance shall be distrib-
uted to the holders of certificates then
In force, pro rata. IN proportion to the
total payments by each policyholder
s 10 suen M r. Spoa the
thirty-hrst day Of December Of any
year, the reserve fund of any such
corporation is found to be less than
the amount Of one assessment or peril
odicsl call upon all the, members there
Of. said corporation shall. within one
year thereafter, collect from it's MEM
bers sum sufficient to bring said re-
serve fund up to ona assessment or
periodical call upon all It's members.
and deposit the amount with the
Treasurer Of State to the credit of said
fund.
Approved March 81. 1851