INSURANCE. 1849

of his contract. No investment, sale or loan, except loans on its own policies,
shall be made which has not first been authorized by the board of directors,
or by a committee thereof charged with the duty of investing or loaning
the funds of the company, nor shall any deposit be made in a bank or
banking institution unless such bank or banking institution has first been
approved as a bank of deposit by the board of directors, or said committee
threof and unless the vote authorizing such investment, sale or loan, or
approval of the place of deposit has been duly recorded in the books of the
company.

1922, ch. 492, sec. 116.

119. Investments in Real and Personal Property. No domestic com-
pany hereafter acquiring title to real estate under the conditions of any
mortgage owned by it, or by purchase or set-off on execution upon judgment
for debts due it previously contracted in the course of its business, or by
other process in settlement for debts, shall hold it for a longer period than
five years without permission granted in writing by the insurance com-
missioner; nor shall any such company hereafter invest in real estate
except to the extent that may be necessary for its convenient accommoda-
tion in the transaction of its business, and then in no case to exceed ten
per cent, of its invested assets, including cash in banks.

Such company shall not engage in buying or selling goods, wares or mer-
chandise, except articles insured by it on which losses are claimed, and
except in replacing, rebuilding or repairing insured property as provided
in its policies, nor engage in any business other than as specified in its
charter or agreement of association and expressly authorized by law.

1922, ch. 492, sec. 117.

120. Reserves. Such company shall maintain unearned premium and
other reserves in the same manner, and upon the same basis as required
of domestic stock insurance companies transacting the same kind of insur-
ance; provided that such companies as write all, or the major portion of
its policies, to .expire on some certain date, or levy annual or periodic
assessments against all policies in force payable on some certain date,
shall maintain unearned premium reserves computed pro rata for the
unexpired portion of the term. All reserves required to be maintained as
aforesaid, shall be set up as a liability in all financial reports of or concern-
ing each such company filed with the insurance commissioner. The com-
missioner may prescribe any reasonable basis other than the above for
reserves for losses or claims, or may permit such reserves for losses or
claims, when based upon the premium income, to be computed upon the
net premium income after deducting any so-called dividend, or premium
returned or credited to members.

1922, ch. 492, sec. 118.

121. Assessments. Such company not possessed of assets at least equal
to the unearned premium reserve and other liabilities, shall make an assess-
ment to provide for such deficiency upon only such members as are liable to