206 CORPORATIONS. [ART. 23

1914, Ch. 489.

154D. The Association may in its by-laws and policies fix the con-
tingent mutual liability of the members for the payment of losses and
expenses not provided for by its cash funds; but such contingent liabil-
ity of a member shall not be less than an amount equal to and in addi-
tion to the cash premium written in the policy. If the association is
not possessed of cash funds above its unearned premium sufficient for
the payment of incurred losses and expenses, it shall make an assess-
ment for the amount needed to pay such losses and expenses upon the
members liable to 'assessment therefor, in proportion to their several
liability. Every member shall be liable to pay and shall pay his pro-
portionate part of any assessment which may be laid by the association
in accordance with law and his contract, on account of losses and
expenses incurred while he was a member, if he is notified of such assess-
ment within one year after the expiration of his policy. All assess-
ments of employer members shall be based upon present values of all
future payments, and all proposed premium assessments shall be filed in
the State Insurance Department and shall not take effect until approved
by the State Insurance Commissioner, after such investigation as he
may deem necessary. All funds of the association and the contingent
liability of the members thereof shall be available for the payment of
any claim against the association.

1914, ch. 489.

154E. The Board of Directors may, from time to time, fix and
determine the amount to be paid as a dividend upon policies expiring
during each year after retaining sufficient sums to pay all the compensa-
tion and other policy obligations which may be payable on account of
injuries by accident and other disabilities sustained and expenses in-
curred. Any such association may hold cash assets in excess of its
liabilities, but such excess shall be limited to one hundred per centum
of its reserves -for losses and expenses incurred, and may be used from
time to time in payment of losses, dividends and expenses.

1914, ch. 489.

154F. Such association shall be required to maintain the same
reserves for the protection of policy-holders and employees who may
have a right of action directly against such association as are required
to be maintained by stock insurance companies in relation to the same
class of insurance, except that reserves for liability for insurance of
compensation under the workmen's compensation law shall be the same-
reserves as provided by 'the State Industrial Commission for the Acci-
dent Insurance Fund established in pursuance to said workmen's com-
pensation law, and the State Insurance Commissioner may suspend or
cancel the certificate issued by him authorizing said association to trans-
act such insurance business at any time when in the judgment of the
State Insurance Commissioner the reserves of said association are insuf-