2154 ARTICLE 48A

cept 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.

An. Code, 1924, sec. 120. 1922, ch. 492, sec. 117.

154. (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.

An. Code, 1924, sec. 121. 1922, ch. 492, sec. 118.

155. (Assessments.) Such company not possessed of assets at least
equal to the unearned premium reserve and other liabilities, shall make an
assessment to provide for such deficiency upon only such members as are
liable to assessment in proportion to their several liabilities expressed in
their policies. Each member shall be liable only on account of losses and
expenses incurred while his policy was in force, and he shall be notified of
such assessment within one year after the termination of such policy; pro-
vided, that the commissioner by written order, may relieve the company
from an assessment or other proceeding to restore such assets during the
time fixed in such order; and provided, that any domestic company which
shall be deficient in providing the unearned premium reserve required
hereby, may notwithstanding such deficiency, come under this Article on
the condition that it shall each year thereafter reduce such deficiency by at
least fifteen per cent, of the original amount thereof, and in such case it
may increase its assessments accordingly.

An. Code, 1924, sec. 122. 1922, ch. 492, sec. 119.

156. (Loans for Business Purposes.) Any director, officer or member
of any such company, or any other person, may advance to such company
any sum or sums of money necessary for the purpose of its business, or to
enable it to comply with any surplus requirements, or any other require-
ments of the law, and such moneys, and such interest thereon as may have
been agreed upon, not exceeding six per cent, per annum, shall be payable
only out of the surplus remaining after providing for all reserves and other
liabilities, and shall not otherwise be a liability or claim against the com-