EDWIN WARFIELD, ESQ., GOVERNOR.

953

instead of taking a premium note secured by judgment, as
heretofore, it shall be lawful for said company to ascertain

CHAP. 486

and determine the full mutual premium upon which such
insurance shall be granted and the policy issued, to be com-
puted according to the hazard of the risk as set out in the
company's table of rates, in the same manner the amount of
the premium notes has been heretofore computed, and upon
which amount of full mutual premiums, so ascertained, the
insured shall annually pay to said company the cash cost for
maintaining such insurance, and which shall be a certain
percentage of the full mutual premium to be determined each
year by the board of directors, and shall be the same for all
policies then in force; and the said company may by its
by-laws fix the contingent mutual liability of its members
for losses and expenses in excess of its cash and available
funds.
SEC. 3. And be it enacted, That all applications for insur-

Authority to
determine
the full
premium.

ance in said company shall be made in writing and signed
by the party applying for the same, and when such applica-
tion has been made, the amount of full mutual premium fixed
and stated therein, and the annual cash cost and other
charges thereon paid, the insured shall be deemed to be a
duly constituted member of said company, and as such
entitled to all the privileges of a member, and bound by all
the rules and regulations thereof as contained in its charter
and by-laws.
SEC. 4. And be it enacted, That every policy issued by
isaid company shall state plainly and legibly the full mutual

Applications
to be made
in writing.

premium upon which it is issued, and a provision, as a con-
dition precedent upon which such policy is issued, that by
the acceptance of such policy the insured covenants and
agrees with said company to pay to the said company such
sum of money as the board of directors may require, in
such proportions and at such times as the company, agreeably
to its acts of incorporations and amendments thereto, may
require to pay losses and expenses extraordinary.
SEC. 5. And be it enacted, That any member of the com-

Every policy
must state
plainly the
full mutual
premium.

pany shall have full power to withdraw therefrom at any
time by surrendering his policy to the company and paying
such fees as may be reasonably demanded, and by arrearages
of the annual cash cost and assessments, and the policy's
proportion of the losses incurred but not paid; upon such

May withdraw
his security
by surren-
dering his
property.