INSURANCE. 643

maintain as any other liability an unearned or reinsurance reserve for all
unexpired policies or risks in force, equal to the unearned portions of the
gross premiums charged for covering said policies or risks, computed on
each respective policy or risk from the date of the issuance of the policy,
bond or other contract of insurance; or, in the discretion of the commis-
sioner, at the rate of fifty per centum of the current annual premiums on
each outstanding bond, policy or contract in force and written for one year
or less, and on policies and bonds in force and written for more than one
year at the rate of fifty percentum of the current year's premiums, plus
the whole of the premiums for subsequent years.

1929, ch. 218.

112A. If the Commissioner, after charging any Casualty, Surety,
Liability, Title or Miscellaneous company with the reserves, if any, as
provided by law, and adding thereto all debts and claims against it, finds
the capital stock of such company impaired to the extent of twenty-five per
cent., he shall give notice to the company to make good its whole capital
stock within sixty days; and if this is not done he shall require the com-
pany to cease to do new business within this State; and shall thereupon, in
case the company is organized under the authority of this State, imme-
diately institute such legal proceedings as are necessary to protect the
rights of all persons in said company.

Mutual Insurance Companies.

An. Code, 1924, sec. 114. 1922, ch. 492, sec. 111. 1935, ch. 147.
114. Requirements Prior to Doing Business. No corporation organ-
ized 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 com-
plied 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) For the purpose of transacting employer's liability and workmen's
compensation insurance, the application shall cover not less than two thou-
sand employees, each such employee being considered a separate risk for
determining the maximum single risk.

(c) 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.