40-1503. Application for insurance; premium; insured as members of company. - Kansas Statutes

40-1503

Chapter 40.--INSURANCE Article 15.--MUTUAL HAIL INSURANCE COMPANIES

      40-1503.   Application for insurance; premium; insured as members ofcompany.Any person desiring insurance shall make application on blanks furnishedby the company, and shall pay the annual premium in cash or by giving anote. If a note be given it shall be a lien on the property insured, whenrecorded as chattel mortgages are recorded. Every person who effectsinsurance in any company organized under the provisions of this article,and also their heirs, executors, administrators and assigns, continuing tobe so insured, shall thereby become members of the company during theperiod of insurance, and shall be bound to pay for losses and such expensesas accrue to the company and to maintain the reserve fund hereinafterrequired in proportion to the amount of the annual premium paid by suchperson. In companies organized under the provisions of this article allnotes taken by them in consideration of premiums on their policies shall beassessable and collectible in part or in whole for the purpose of payingall losses and expenses that may accrue to the company and maintain thereserve fund hereinafter required: Provided, however, That suchexpenses shall in no event exceed fifty percentum of the premiums receivedby the company in cash and notes.

      History:   L. 1927, ch. 231, 40-1503; June 1.