Pennsylvania Act 1921-419 — FIRE INSURANCE PREMIUMS

Act text

FIRE INSURANCE PREMIUMS
                 Act of May 25, 1921, P.L. 1124, No. 419              Cl. 40
                                  AN ACT

     Permitting certain domestic mutual fire insurance companies to
        issue cash premium policies without assessment liability; and
        providing for the distribution and escheat of the surplus of
        certain domestic mutual fire insurance companies in event of
        dissolution.

        Section 1.  Be it enacted, &c., That any domestic mutual fire
     insurance company, organized prior to May first, one thousand
     eight hundred and seventy-six, having a surplus not less than
     the minimum capital required for the organization of a domestic
     stock fire insurance company and an unearned premium reserve
     computed upon the same basis as that required of domestic stock
     fire insurance companies, may issue policies for a cash premium
     without any contingent liability for assessment.
        Section 2.  Any domestic mutual fire insurance company,
     incorporated by a special act of the Legislature prior to May
     first, one thousand eight hundred and seventy-six, and having a
     surplus and unearned premium reserve as required in section one,
     and whose charter provides for a premium deposit which shall
     remain as a pledge for the performance of the depositor's
     covenants, which deposit, under the provision of such charter,
     shall be returned to the depositor at the expiration of the
     policy, together with a proportional dividend of the profits
     after deducting losses and incidental charges, and whose charter
     further provides that the net profit, arising by interest or
     otherwise, shall be ascertained yearly to every member in
     proportion to his, her, or their deposit for which each member
     shall have credit on the company's books, payable at the
     cancellation of the policy, may, instead of collecting such
     deposit money as above provided under such charter, charge a
     cash premium in advance, on which no dividend or return shall be
     due or accrue, other than return premiums on canceled policies.
        Section 3.  The surplus of any domestic mutual fire insurance
     companies issuing policies in accordance with the provisions of
     section one or two of this act shall be held as a reserve for
     the payment of losses and expenses; and, in the event of
     dissolution of the company, shall be divided pro rata among the
     policyholders whose policies are in force at the time of
     dissolution, but no policyholder, other than loss claimants,
     shall receive more than the amount of the unearned cash premium
     last paid to the company for the current term of such policy.
     Any balance remaining shall escheat to the Commonwealth of
     Pennsylvania.