The Republican journal. [volume] (Belfast, Me.) 1829-current, 1917-04-05
CHAPTER IL.

An Act to amend Section ffty-sx of
Chapter fifty-three of the Revised
Statu- relating to retiring of guar
anty capital of mutual fire insurance
companies.
section f1fty-six of chapter ffty-three
of tie Revised Statutes is hereby amend
e to read as follows:
Section Sc. Such agreement shall set
forth the fact that the subscribers there
70 associate themselves with the inten-
ton to constitute corporation, the
name by which it shall be known, the
class or classes of insurance for the tran
sactlon of which it is to be constituted.
thc pan or principle upon which its bEsi-
ness is to be conducted the town or city
IN which 1T is es ablished or located, and
II STOCK company, the amount of its
CAPITA stock. and if a mutual company
thereof. The capital stock of a stock
company organized for any of the pur-
poses hereinbefore mentioned shalt not
De less than one hundred thousand dol
transact any class or kind of insurance
other than fire, marine or plate glass
si'al nave guaranty capital as PROVIDED
~ sectlon flfty-seven and holders of GER
li.cates or such guarantee capital shall
not receive dividends in excess of seven
per cent in any one year, and In no case
uniess such dividends are properly earned
aIter determining all liability as required
companies may be incorporated to tran
sact ire, marine and plate glass irsur-
ance ana may operate in accordance with
me provisions of section thirty-siX, and
other provisions of the laws of this
state relating to such companies, pro-
Vlued, that they shall oonfine their bust
ness to not more than ten towns; mutual
companies which do not so limit their
business, may incorporate for any of the
foregoing purposes but before doing any
business they shall esta blish guaranty
lund or capital of not less than ten
thousand dollars which may be divided
INTO shares of not less than one hundred
dollars and certificates issued therefor
A dividend not cXcec; g seven per cent
IN any one calendar year may be paid
from the net earnings of the company
after providing for all expenses, losses,
reserves and liabilities then incurred.
Such guaranty fund or capital shall be
invested as provided in section twenty
and shall be deposited with the treasurer
OF state. When the cash and other
available assets of the company are ex-
hausted such part of said fund as may be
required SHALL with the approval OF the
insurance commissioner, be drawn ami
used to pay losses then due. When such
fund is so drawn upon the directors shall
make good the amount so drawn by as
sessments upon the contingent funds or
notes of the company and unless such
fund is restored within six months from
date of withdrawal the shareholders
shall be assessed in proportion to he
amount of stock owned by them for the
purpose of restoring said capital. Share
holders and members of such COM
panies shall be subject to the same pro-
visions of law relative to their right to
vote as apply respectively to share
holders in stock companies and policy
holders in purely mutual companies; said
guaranty capital may be retired, by vote
of the policy holders, when the sur. lus
funds of the company over and above ali
Liabilities, including guaranty capital,
t1.a1I
guaranty capital, or any part of said
guaranty capital may be retired: pro-
video that the amount of net surplus and
guaranty fund shall not be less thin ten
thousand dollars. Said guaranty capital
shall be retired when the net cash as
sets of the company equal to three times
the amount of guaranty capital. Any
mutual fire. marine or plate glass insur-
ance company which has, established
guaranty capital as provided herein AMI
has obtained applications for insurance
as required by section tifty-eight shall!
be authorized by the insurance commits
sioner to write business and such COM
pany may take a premium note as pro-
vided in section thirty-six, In lieu
of said note it may charge and collect
pre- lium in cash and by its bylaws and
policies fix the contingent mutual liabil-
ty of its members for the payment of
losses and expenses not provided for by
its cash funds; but such contingent liza
bility of member shall not be less than
an amount equal to and in addition to
the cash premium written 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 filing
bac.: of each policy. Whenever any re-
duction is made in the contingent liability
of members such reduction shall apply
proportiorally to all policies in force =
approved arch l, 1879