1897t (Ch. 460, 1909, in effect June 19, 1909.) Domestic companies; examination, first; certificates. SECTION 1897t. No domestic insurance company shall begin to transact insurance until the same shall have been fully examined by the commissioner of insurance and he shall issue a certificate: (a) That such company has a capital, surplus and applications for risks outstanding, as the case may be, and as required by law; (b) That its funds are held in cash or invested as required by law. (c) That those making applications for insurance are in a position to perform the same; (d) That the incorporators and proposed directors are financially responsible for and understand the obligations imposed upon them by law; and (e) That said company has fully complied with all requirements of the law. 1898 (Ch. 460, 1909, in effect June 19, 1909.) Insurance companies; risk; maximum single; reinsurance. SECTION 1898. 1. (a) Except as otherwise provided by law, the maximum single risk shall be ten per centum of the admitted assets. (b) In a mutual company it may be a greater amount not exceeding three times the average policy or one-eighth of one per centum of the insurance in force, whichever is the greater. (c) Upon the business mentioned in subsection 14 of section 1897, in a stock company, it shall be one-twentieth of the paid up capital. 2. Any re-insurance taking effect simultaneously with the policy shall be deducted in determining such maximum single risk. Section 1898 is referred to in 18971, 1897s and 1898d. 1898d (Ch. 460, 1909, in effect June 19, 1909.) Insurance companies; risks; minimum outstanding. SECTION 1898d. The minimum of risks outstanding shall be two hundred, each within the maximum single risk prescribed in section 1898. Section 1898d is referred to in 18971, and 1897s. 1901j (Ch. 460, 1909, in effect June 19, 1909.) Mutual companies; expenses; limitation; exceptions. SECTION 1901j. Except as otherwise provided by law and excepting companies transacting only disability insurance no mutual insurance company shall pay or incur in any year any expense, exclusive of investment expenses, taxes and fees, in excess of fifty per centum of the premiums and assessments collected during the year; or in excess of one-half of one per centum on the greatest amount of insurance in force at any time during the year, whichever is the greater. 1901m (Ch. 460, 1909, in effect June 19, 1909.) Mutual companies; risks; classification. SECTION 1901m. A mutual insurance company may classify the property or risks insured, at the time of insuring the same, under different rates corresponding as nearly as may be to the greater or less risks which may be attached thereto. 1901n (Ch. 460, 1909, in effect June 19, 1909.) Mutual fire companies; policies; term. SECTION 1901n. Except as otherwise provided by law, no mutual fire insurance company shall make any contract for insurance expiring more than five years after the date thereof. 1902 Trading powers. SECTION 1902. No fire or inland navigation or transportation insurance corporation organized under any law of this state shall directly or indirectly deal or trade in buying or selling any goods, wares, merchandise, or other commodities whatever, excepting such goods or articles as may have been insured by such corporation and are claimed to be damaged by fire or water; nor hold or convey real estate, excepting for the purposes and in the manner herein set forth, to-wit: Such as shall be necessary for its convenient accommodation in the transaction of its business, or such as may have been conveyed or mortgaged to it in good faith by way of surety for loans or for debts or money due in its legitimate business, or such as have been purchased at sales upon judgments or mortgages obtained or made for such debts; but all such real estate as may be so acquired, which shall not be necessary for the accommodation of such corporation in the transaction of its business, shall be sold or disposed of within four years after such corporation shall have acquired the same unless such corpora. tion shall procure a certificate from the commissioner of in surance that it will suffer materially from a forced sale thereof, in which event the sale may be postponed for such period as said commissioner may therein direct. 1903 (1898; ch. 267, 1909, in effect June 4, 1909.) Domestic companies, investments; capital. SECTION 1903. 1. Any domestic insurance corporation, where no other provision is made by law, may * * invest its a. In any bonds or notes secured on improved, unencumbered real estate within this state worth at least fifty per centum more than the sum loaned thereon, exclusive of buildings unless such buildings are kept insured to an amount which together with one-half the value of the land shall equal or exceed the loan, and the policy or policies of insurance thereon be assigned to and held by said corporation as collateral to such loan. b. Any lawfully authorized bonds or other evidence of indebtedness of the United States, or of any state of the United States. c. In the bonds or other evidences of indebtedness of any county, city, town, village, or school district of any state or territory of the United States or of the District of Columbia. d. In the first mortgage bonds of any railroad or other public service corporation of any of the states in which said insurance corporation shall be doing business at the time of such investment. Funds other than capital. 2. Any other funds of such insurance corporation may be invested: a. In like bonds or evidences of indebtedness or b. In the stocks and bonds or other evdences of indebtedness of any solvent dividend paying corporation of any state in which said insurance corporation shall be doing business at the time of such investment, except stock in its own corporation or in any other insurance corporation. c. Upon the collateral security of any of the foregoing securities, provided that the market value of such securities shall, during the continuance of any such loan, be at least ten per centum more than the sum loaned thereon. Single investment; limitation. 3. No such company shall invest in, acquire or hold, directly or indirectly, more than ten per centum of the capital stock of any corporation, nor shall more than ten per centum of its capi tal or surplus be invested in the stock or securities of any one corporation. 1904 Lien and stock profits. SECTION 1904. Any insurance corporation may have a lien upon the stock or certificate of profits owned by any member for any debt due or to become due the corporation for premiums by providing therefor by the by-laws and by stating on the face of the certificate of stocks or profits that the same is subject to any such lien; and such lien may be waived in writing by the consent of the president of such corporation upon. the transfer of any such stock. 1905 Reinsurance. SECTION 1905. Every corporation shall have the power to effect re-insurance of any risks taken by it and to re-insure the risks taken by any other such corporation. But no stock fire insurance corporation shall expose itself to any loss on any fire or inland navigation risk or hazard to an amount exceeding ten per cent. of its paid-up capital, exclusive of any guaranty, surplus or special reserve fund. See sections 1905a, 1905b, 1919d. 1905a (Ch. 394, 1903.) Re-insurance by any fire company. SECTION 1905a. It shall be lawful for, and any fire insurance company or association authorized to transact business in the state of Wisconsin, is hereby fully authorized and empowered to re-insure the whole or any part of any fire insurance risk taken by it on any property situated in the state of Wisconsin in any other responsible company or companies, whose capital stock and surplus shall equal or exceed one hundred thousand dollars. Provided, any fire insurance company or re-insurance company licensed to do business in the state of Wisconsin shall on retiring from business before the expiration of its policies or contracts, file with the insurance commissioner a written notice of such intention together with a sworn statement of its outstanding liabilities or obligations under such policies or contracts, and shall re-insure such liabilities or obligations in a company authorized to do business in this state. All laws, acts and parts of acts, whether general or special, contravening or conflicting with the provisions of this act are hereby repealed. 1906 Dividends; penalty for making unauthorized. SECTION 1906. The directors, trustees or managers of any fire insurance corporation shall not make any dividend except from the surplus profits arising from their business; and in estimating such profits there shall be reserved therefrom a sum equal to the whole amount of premiums on unexpired risks and policies, which are hereby declared to be unearned premiums; and also there shall be reserved all sums due the corporation on bonds and mortgages, stocks and book accounts, of which no part of the interest or principal thereon has been paid during the last year and for which no suit or foreclosure has been commenced for collection, or which, after judgment thereon obtained, shall have remained more than two years unsatisfied and on which interest shall not have been paid; and also there shall be reserved all interest due or accrued and remaining unpaid; provided, however, that any corporation may declare dividends, not exceeding ten per cent. on its capital stock in any one year, that shall have accumulated and be in possession of a fund in addition to the amount of its capital stock and of such dividend and all actual outstanding liabilities equal to one-half of all premiums on risks not terminated at the time of making such dividend. Any corporation making any dividend contrary to the foregoing provisions shall be liable to a forfeiture of its charter, and each stockholder receiving it shall be liable to the creditors of such corporation to the extent of the dividend received, as well as to the penalties in such cases made and provided. This section shall not apply to the declaration of scrip dividends by participating companies; but no such scrip dividends shall be paid except from surplus profits after reserving all sums as above provided, including the whole amount of premiums on unexpired risks. The word year, wherever used in this section, shall mean the calendar year. Compare with section 1906a. 1906a (Sec. 1, ch. 166, 1899.) Dividends; penalty for making unauthorized. SECTION 1906a. Any stock fire insurance company doing business or organized under the laws of this state may declare dividends not exceeding ten per centum of its capital stock in any one year, if in addition to the amount of its capital stock, plus ten per centum of the capital stock, and of such dividends and all of its outstanding liabilities, it shall have |