EMERSON C. HARRINGTON, GOVERNOR. 245

tain and determine the premium basis upon which said in-
surance shall be granted and the policy issued, the same to be
computed according to the hazard of the risk as set out in the
Company's table of rates as fixed by the Board of Directors,
and upon which premium basis, so ascertained, the insured
shall pay in advance to said Company the cash premium for
maintaining such insurance and which shall be a certain per-
centage of the premium basis to be determined each year by
the Board of Directors, and shall be the same for all policies
in force.

Section 11. Any member of the Company shall have full
power to withdraw therefrom at any time by surrendering his
policy to the Company and paying any arrearages of the cash
premium and the policy's proportion of losses and expenses
incurred, but not paid; upon such payment the Company shall
cancel such insurance as may be covered thereby and such can-
cellation shall release said member from all liability of any
and all obligation, claims or demands due or owing to said
Company on account thereof, and shall debar said member
from any claim on the Company for any loss or damage by
fire or lightning subsequent to the time of withdrawal or can-
cellation of policy or policies, and the Company may at any
time cancel any policy issued by it upon the return of the
un-earned portion of the cash premium.

Section 12. Whenever the. Company shall issue a policy
for the insurance cf any property, the Board of Directors may
require such security as they may deem necessary to secure the
payment of the cash premium of the policy and such assess-
ments as may be duly laid, together with all costs of collect-
ing the same.

Section 13. The Board of Directors of the Company shall
have power to regulate the time and duration of all policies
issued by the Company; invest all income derived from what-
ever source; create and maintain a surplus fund and add there-
to if the amounts received as cash premiums shall exceed the
amount required to pay losses and expenses for any year, but
if the amounts received in any one year as the cash premium
for maintaining the insurance should be insufficient to pay the
losses and expenses for such year the deficiency shall be taken
from the surplus and no extra assessment shall be made to
meet such deficiency until the available funds from the sur-
plus shall first be exhausted, but such surplus fund shall not.