ALBERT C. RITCHIE, GOVERNOR. 1621

upon the insurance commissioner in all suits in this state
arising out of such policies, contracts or agreements, which
service shall be valid and binding upon all subscribers ex-
changing at any time reciprocal or inter-insurance contracts
through such attorneys. Three copies of such process shall
be served and the commissioner shall file one copy, forward
one copy to said attorney and return one copy with his ad-
mission of service. Subscribers at any reciprocal or inter-
insurance exchange operating under the laws of this State
may sue or be sued in the declared name of such exchange.

139. Limit of Liability. There shall be filed with the
Insurance Commissioner by such attorney, whenever the com-
missioner shall so require, a statement under oath of such
attorney showing the maximum amount of indemnity upon
a single fire insurance risk, and no subscriber shall assume
on a single fire insurance risk an amount .greater than ten
per cent, of the net worth of such subscriber.

140. Reserves; Impairment of Assets. There shall at all
times be maintained assets in cash or securities authorized by
the laws of the state in which the principal office is located,
for the investment of funds of insurance companies doing
the same kind of business, an amount equal to 50 per cent of
premiums or deposits collected from subscribers on policies
having one year or less to run and pro rata on those for
longer periods, or in lieu thereof, one hundred per centum of
the pro rata unearned premiums or deposits collected from
subscribers. In addition to the assets previously provided in
this section, in the case of employers' liability and workmen's
compensation insurance there shall be maintained a surplus of
one hundred thousand dollars ($100,000) in cash or securities
and not less than fifty thousand dollars for all other kinds of

insurance. There shall also be maintained as a claim or loss
reserve, cash or such securities sufficient to discharge all lia-
bilities on all outstanding losses arising under policies issued;
the same to be calculated in accordance with the laws of the
state relating to similar reserves for companies insuring simi-
lar risks. If at any time the amounts on hand are less than
the foregoing requirements, the subscribers or their attorney
for them shall make up the deficiency, and the funds so ad-
vanced shall not be treated as a liability to the exchange and
shall not be withdrawn except with the approval of the super-
vising insurance official of the state where the Exchange is