ALBERT C. RITCHIE, GOVERNOR. 1203

net unearned premiums or deposits collected and credited to
the accounts of subscribers, or 50 per cent, of the net annual
advance premiums or deposits collected and credited to the
accounts of subscribers on policies having one year or less to
run and pro rata on those for longer periods. In addition to
the foregoing sum, in the case of liability and workmen's com-
pensation insurance, there shall be maintained as a reserve in
cash or such securities, assets sufficient to discharge all liabili-
ties on all outstanding losses arising under policies issued; the
came to be calculated on the basis of net premiums or deposits
as in this section defined and in accordance with the laws of
the state relating to similar reserves for -companies insuring
similar risks. Net premiums or deposits as used in this section
shall be construed to mean the advance payments made by
subscribers after deducting therefrom the amount specifically
provided in the subscribers' agreements for expenses. If at any
time the assets on hand are less than the foregoing require-
ments, or less than the $100,000.00, whichever is the greater,
where the attorney is exchanging contracts covering liability or
workmen's compensation insurance, the subscribers shall make
up the deficiency. Whenever such assets are less than the
amount required above, or less than $50,000.00, whichever is
the greater, if the attorney is exchanging contracts other than
those covering liability and workmen's compensation insurance,
the subscribers shall make up the deficiency.

SEC. 138. Annual Reports; Examinations. Such attorney
shall, within the time limited for filing the annual report by
insurance companies transacting the same kind of business,
make a report to the insurance commissioner for each calendar
year, showing the financial condition of affairs at the office
where such contracts are issued, and shall furnish such ad-
ditional information and reports as may be required to show
the total premium or deposits collected, and total losses paid,
the total amounts returned to subscribers and the amounts re-
tained for expenses. Provided, however, that such attorney
shall not be required to furnish the names and addresses of any
subscribers. The business, affairs, records and assets of such
organization shall be subject to examination by the insurance
commissioner at the expense of the organization examined.

SEC. 139. All Domestic Corporations Authorized to Exchange
Contracts of Insurance. Any corporation now or hereafter or-
ganized under the laws of this state, shall, in addition to the
rights, powers and franchises specified in its articles of incor-