INSURANCE 2133

other liability, an unearned or reinsurance reserve for all unexpired fire and
inland risks at the rate or in the proportion of fifty per centum of the
premiums written or renewed on all unexpired risks that have one year
or less to run, and pro rata, for all premiums written or renewed on risks
that have more than one year to run. Every company doing a marine insur-
ance business shall be charged with a reinsurance reserve as above at the
rate of sixty per centum of all premiums written or renewed on all marine
risks for one year or covering more than one voyage, not terminated,
and one hundred per centum of all premiums written or renewed on policies
less than one year, not terminated. The reinsurance reserve on the business
of companies organized under the laws of foreign governments, shall be
calculated only upon the business of such companies in the United States
of America, and the assets of such companies held and invested in the
United States of America only shall be recognized as constituting the
j admitted assets of such companies for reserve purposes.

An. Code, 1924, sec. 80. 1922, ch. 492, sec. 77.

102. (Impairment of Capital.) Having charged the company the re-
insurance reserve as above determined, for fire, inland and marine insur-
ance, and adding thereto all debts and claims against it, the commissioner
shall, in case he finds the capital stock of the company impaired to the ex-
tent of twenty-five per cent., 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 company to cease to do new business within this state; and shall there-
upon, in case the company is organized under the authority of this state,
immediately institute such legal proceedings as are necessary to protect
the rights of all persons in said company.

An. Code, 1924, sec. 81. 1922, ch. 492, sec. 78. 1939, ch. 530.

103. (Lloyd's Insurance.) Associations of individuals, citizens of the
United States, whether organized within this State, or elsewhere within
the United States, formed upon the plan known as Lloyds, whereby each
associate underwriter becomes liable for a proportionate part of the whole
amount insured by the policy, may be authorized to transact insurance
other than life in this State, upon the following conditions: That any such
association organized in this State may be permitted to transact the insur-
ance business upon the same terms and conditions as are by the laws of
this State imposed upon a stock insurance company organized under the
laws of this State, and any such association organized in any other State
of the United States may be permitted to transact its business in this State
upon the same terms and conditions as are by the laws of this State imposed
upon a stock insurance company incorporated in the State where such
association was organized; provided, however, that any Lloyd's associa-
tion licensed to do business in this State prior to the effective date of this
Act shall not be subject to the provisions of this Act, requiring the business
of insurance to be transacted upon the same terms and conditions as are
imposed upon a stock insurance company, and any such Lloyd's association
organized and licensed in this State prior to the passage of this Act shall
continue to be permitted to transact the business of insurance upon the
terms and conditions under which such Lloyd's association was organized
and originally licensed by the Commissioner of Insurance of this State.