Chap. 8 AN ACT TO 1907, 535, § 1, amended. indicating the price, etc., of commodities to be tested and sealed. 8 AN ACT TO PROVIDE FOR THE TESTING AND SEALING OF CERTAIN DEVICES INDICATING THE PRICE, WEIGHT OR MEASURE OF COMMODITIES OFFERED FOR SALE. Be it enacted, etc., as follows: SECTION 1. Section one of chapter five hundred and thirty-five of the acts of the year nineteen hundred and seven is hereby amended by inserting after the word "weight", in the sixth line, the words: or measure, and by inserting after the word "weights", in the eighth line, the words: · or measures, so as to read as follows: Certain devices Section 1. The provisions of chapter sixty-two of the Revised Laws relating to the adjusting, testing and sealing of weights, measures and balances shall apply to all scales, balances, computing scales and other devices having a device for indicating or registering the price as well as the weight or measure of the commodity offered for sale. All such computing devices shall be tested as to the correctness of both weights or measures and values indicated by them. SECTION 2. This act shall take effect upon its passage. Approved February 19, 1917. Chap. 1907, 576, § 47, etc., amended. 9 AN ACT TO INCREASE THE SURPLUS WHICH MAY BE HELD BY A MUTUAL FIRE INSURANCE COMPANY. Be it enacted, etc., as follows: SECTION 1. Section forty-seven of chapter five hundred and seventy-six of the acts of the year nineteen hundred and seven, as amended by section one of chapter four hundred and eighty-two of the acts of the year nineteen hundred and eight, by section one of chapter three hundred and ninety of the acts of the year nineteen hundred and nine, and by chapter four hundred and sixty-three of the acts of the year nineteen hundred and ten, is hereby further amended by striking out the second paragraph and inserting in place thereof the following:- Any such company may accumulate and hold profits, but only until such profits equal four per cent of its insurance in force, and such accumulation shall be subject to the provisions of law relative to the investment of the capital stock of insurance companies on the stock plan, and may be used from time to time in the payment of losses, dividends and expenses, so as to read as 9 may be held increased. follows: Section 47. From time to time the directors of Surplus which a mutual fire insurance company may, by vote, fix and de- by a mutual termine the percentages of dividend or expiration return of company premium to be paid on expiring policies, which percentages may in their discretion be different for policies insuring farm, manufacturing or storage risks from those insuring other classes of risks of the same term. But policies insuring risks in this commonwealth in the same classification shall have an equal rate of dividend or return of premium and in case of an assessment the rate thereof may be different for policies insuring farm, manufacturing or storage risks from that on policies insuring other classes of risks for the same term, but policies insuring risks in the same class shall have the same rate of assessment. Every policy placed in the said class of farm, manufacturing or storage risks shall, when issued, bear an endorsement to the effect that it is so classified. Any such company may accumulate and hold profits, but Profits, how only until such profits equal four per cent of its insurance in applied. force, and such accumulation shall be subject to the provisions of law relative to the investment of the capital stock of insurance companies on the stock plan, and may be used from time to time in the payment of losses, dividends and expenses. to be notified Every policy holder of a domestic company, and every Policy holders Massachusetts policy holder of a foreign company, shall be of dividend notified at his last known address within six months after declared, etc. the expiration of his policy of the amount of any dividend declared and payable thereon, unless in the meantime such dividend has been paid in cash or applied in payment of the premium on the renewal of the policy. its passage. SECTION 2. This act shall take effect upon Approved February 19, 1917. AN ACT TO INCREASE THE RESERVE OF LIABILITY COMPANIES Chap. 10 FOR OUTSTANDING LOSSES. Be it enacted, etc., as follows: SECTION 1. The reserve required of liability insurance Reserve of companies for outstanding losses under insurance against liability comloss or damage from accident to, or injuries suffered by, an employee or other person, for which the insured is liable, computed. shall be computed as follows: outstanding losses, how 1. For all liability suits being defended under policies For liability written more than suits. For liability policies. For compensation claims under certain policies. For compensa tion claims on within three years, etc. (a) Ten years prior to the date as of which the financial statement required by law to be filed with the insurance commissioner is made, one thousand five hundred dollars for each suit. (b) Five and less than ten years prior to the date as of which the said statement is made, one thousand dollars for each suit. (c) Three and less than five years prior to the date as of which the said statement is made, eight hundred and fifty dollars for each suit. 2. For all liability policies written during the three years immediately preceding the date as of which the said statement is made, such reserve shall be sixty per cent of the earned liability premiums of each of the said three years, less all loss and loss expense payments made under liability policies written in the corresponding years; but in any event, the reserve shall, for the first of the said three years, be not less than seven hundred and fifty dollars for each outstanding liability suit on said year's policies. 3. For all compensation claims under policies written more than three years prior to the date as of which the said statement is made, the present values at four per cent interest of the determined and the estimated future pay ments. 4. For all compensation claims under policies written in policies written the three years immediately preceding the date as of which the said statement is made, the said reserve shall be sixtyfive per cent of the earned compensation premiums of each of the said three years, less all loss and loss expense payments made in connection with such claims under policies written in the corresponding years; but in any event in the case of the first year of any such three-year period the reserve shall be not less than the present value at four per cent interest of the determined and the estimated unpaid compensation claims under policies written during that year: provided, however, that in computing the reserve for the statement for December thirty-first, nineteen hundred and seventeen, and December thirty-first, nineteen hundred and eighteen, the ratios sixty per cent and sixty-two and one half per cent, respectively, shall be used instead of sixty-five per cent as hereinbefore provided. Proviso. "Earned premiums," term defined. SECTION 2. The term "earned premiums" as used herein shall include gross premiums charged on all policies written, including all determined excess and additional premiums, less return premiums, other than premiums tion, term term defined. The term "compensation" as used in this act shall relate "Compensato all insurances effected by virtue of statutes providing defined. compensation to employees for personal injuries irrespective of fault on the part of the employer. The term "liability" "Liability," shall relate to all insurance except compensation insurance against loss or damage from accident to or injuries suffered by an employee or other person, for which the insured is liable. ments" and payments," The terms "loss payments" and "loss expense payments" "Loss payas used herein shall include all payments to claimants, in- "loss expense cluding payments for medical and surgical attendance, legal terms defined. expenses, salaries and expenses of investigators, adjusters and field men, rents, stationery, telegraph and telephone charges, postage, salaries and expenses of office employees, home office expenses, and all other payments made on account of claims, whether such payments shall be allocated to specific claims or unallocated. allocated SECTION 3. All unallocated liability loss expense pay- Certain unments made in a given calendar year subsequent to the liability loss first four years in which an insurer has been issuing liability ments, how policies shall be distributed as follows: Thirty-five per distributed. cent shall be charged to the policies written in that year, forty per cent to the policies written in the preceding year, ten per cent to the policies written in the second year preceding, ten per cent to the policies written in the third year preceding, and five per cent to the policies written in the fourth year preceding, and such payments made in each of the first four calendar years in which an insurer issues liability policies shall be distributed as follows: In the first calendar year one hundred per cent shall be charged to the policies. written in that year, in the second calendar year fifty per cent shall be charged to the policies written in that year and fifty per cent to the policies written in the preceding year; in the third calendar year forty per cent shall be charged to the policies written in that year, forty per cent Other unallocated compensation loss expense payments, how distributed. Additional reserves. Schedule of experience. Repeal. to the policies written in the preceding year, and twenty per cent to the policies written in the second year preceding, and in the fourth calendar year thirty-five per cent shall be charged to the policies written in that year, forty per cent to the policies written in the preceding year, fifteen per cent to the policies written in the second year preceding, and ten per cent to the policies written in the third year preceding, and a schedule showing such distribution shall be included in the annual statement. All unallocated compensation loss expense payments made in a given calendar year subsequent to the first three years in which an insurer has been issuing compensation policies shall be distributed as follows: Forty per cent shall be charged to the policies written in that year, forty-five per cent to the policies written in the preceding year, ten per cent to the policies written in the second year preceding, and five per cent to the policies written in the third year preceding, and such payments made in each of the first three calendar years in which an insurer issues compensation policies shall be distributed as follows: In the first calendar year one hundred per cent shall be charged to the policies written in that year, in the second calendar year fifty per cent shall be charged to the policies written in that year and fifty per cent to the policies written in the preceding year; in the third calendar year forty-five per cent shall be charged to the policies written in that year, forty-five per cent to the policies written in the preceding year, and ten per cent to the policies written in the second year preceding, and a schedule showing such distribution shall be included in the annual statement. Whenever, in the judgment of the insurance commissioner, the liability or compensation loss reserves of any insurer under his supervision, calculated in accordance with the foregoing provisions, are inadequate, he may, in his discretion, require such insurer to maintain additional reserves based upon estimated individual claims or otherwise. SECTION 4. Every insurance company which writes liability or compensation policies shall include in the annual statement required by law a schedule of its experience thereunder in such form as the insurance commissioner may prescribe. SECTION 5. Chapter three hundred and fifteen of the acts of the year nineteen hundred and eleven is hereby repealed. Approved February 19, 1917. |