INSURANCE. 1847

Mutual Insurance Companies.

1922, ch. 492, sec. 110.

113. Mutual Companies May Assume Any Risk Except Life Insurance.
Any mutual insurance company organized, licensed or admitted under the
provisions of this article, is empowered and authorized to make contracts
of insurance, or of reinsurance, or may cede or accept reinsurance, on the
whole or any portion of any risk, providing indemnity from any loss which
may be insured against under any other provisions of the laws of this state,
excepting life insurance. Such companies and the business transacted
by them shall be regulated by the provisions of this sub-title and by no
other law relating to insurance, unless such law is referred to under this
sub-title, and no law hereafter enacted shall apply to such companies unless
they be expressly designated therein.

1922, ch. 492, sec. 111.

114. Requirements Prior to Doing Business. No corporation organized
under this sub-title shall issue policies or transact any business of insurance
unless it shall comply with the conditions following, nor until the insurance
commissioner has, by formal license, authorized it to do so, and such
license shall not issue until the corporation shall have complied with the
following conditions:

(a) It shall hold bona fide applications for insurance upon which it shall
issue simultaneously, or it shall have in force, at least twenty policies to
at least twenty members for the same kind of insurance, upon not less than
two hundred separate risks, each within the maximum single risk described
herein;

(b) The " maximum single risk " shall not exceed twenty per cent, of
the admitted assets, or three times the average risk, or one per cent, of the
insurance in force, whichever is the greatest, any reinsurance taking effect
simultaneously with the policy being deducted in determining such maxi-
mum single risk;

(c) It shall have collected a premium upon each application required for
organization, the total of which premiums shall be held in cash or in securi-
ties in which insurance companies are authorized to invest, and the total
assets shall be equal, in case of fire or steam boiler insurance, to not less
than twice the maximum single risk assumed subject to one fire or to one
loss, nor less than ten thousand dollars, and in any other kind of insurance
to not less than five times the maximum single risk assumed, and in cases
of workmen's compensation insurance to not less than fifty thousand dollars,
or, in lieu of complying with this sub-section and with sub-section (a) of
this section, it shall hold a surplus equal to the capital stock and surplus
required of a stock insurance company effecting the same kinds of insurance.

(d) For the purpose of transacting employer's liability and workmen's
compensation insurance, the applications shall cover not less than two
thousand employees, each such employee being considered a separate risk
for determining the maximum single risk.