EDWIN WARFIELD, ESQ., GOVERNOR.

531

but not paid ; upon such payment, the company shall cancel such

Cancelling a

insurance as may be covered thereby, and such cancellation

policy.

shall release said member and the real and personal estate that

he may have insured under the surrendered policy from all

liability for or on account of any and all obligations, claims, or

demands due or owing to said company on account thereof,

and shall debar said member from any claim on the company

for any loss or damage by fire subsequent to the time of such

withdrawal and cancellation ; and the company may at any time

cancel any policy issued by it upon the return of the unearned

portion of the annual cash cost.

5. Mortgagees and other owners of limited interests in real

Mortgagees'

and personal property shall have the right to insure their in-

rights.

terests ; guardians and trustees shall have the right to insure

the real and personal property of their wards cestuis que trust-

ent in the company ; and the lien provided by this Act shall

take effect as though said wards or cestuis quo trustent were

of full age and sui juris; and life tenants of real or personal

property may in like manner insure the same.

6. Every application made to and every policy issued by this

company shall state plainly and legibly the full mutual pre-

mium upon which it is made or issued, said premium to be com-

Mutual pre-
mium.

puted according to the hazard of the risk as set out in the com-

pany's table of rates, and the annual cash cost of the policy

shall be a certain percentage of the full mutual premium, to

be determined each year by the board of directors and be the

same for all policies then in force ; and the company may by its

by-laws fix the contingent mutual liability of its members

for losses and expenses in excess of its cash funds; provided,

that said contingent liability shall not in any year exceed twice

the annual cash cost of the member's policy.

7. No annual policy shall remain in force longer than eight

Life of an-

years, and policies may be issued for terms not exceeding

nual policies.

eight years.

8. Whenever the company shall issue a policy upon any

dwelling, store, mill, barn, outbuilding or other building what-

soever, the building so insured goes together with the land

beneath the same and so much surrounding it as may be ne-

cessary for the ordinary and useful enjoyment of it shall be held

Held as se-

by the company as security for the payment of the annual

curity for
payment of

cash cost of the policy, and such assessments as may be duly

annual cash
cost of policy.

laid together with all costs of collecting the same and the

policy shall of itself, from the time it issues, create a lien upon