36 URUGUAY - INSURANCE AND THRIFT 



and for which the State is responsible. The reserve fund is formed by the 

 bank's annual balance of liquid capital. 



This bank's insurance transactions are exempt from all taxation, as 

 is its real estate. 



The State Insurance Bank is held to be incorporated and has therefore 

 to exercise rights and fulfil obhgations. Its legal headquarters and admin- 

 istrative centre are at Montevideo, but it may have agencies where it 

 judges that their foundation is to the interest of itself and its clients. It 

 is administered by a board of directors consisting of a chairman and six 

 voting members. 



The law already mentioned of 27 December 1911 declared that con- 

 tracts for life insurance and insurance against fire and the accidents of 

 labour were the vState's monopoh^ and that the State could also undeitake 

 insurance of other kinds, but nmst in every case and with regard to every 

 class of insurance fix by decree the date at which its monopoly should take 

 eftect. In order to establish its monopoly in each branch of insurance 

 the State may acquire the paper belonging to existing companies or agen- 

 cies and substitute itself for them in respect of all their rights and obliga- 

 tions. 



Already in its first year of activity, which ended on 31 December 1912, 

 the State Insurance Bank undertook — in addition to the transactions 

 covered by its legal monopoly of Hfe, fire and accident insurance — other 

 branches of insurance, among them one which has an especial interest 

 for us, namely insurance against hail. 



To insure standing crops against damage' by hail an especial depart- 

 ment has been formed in this bank, and it employs agents and a competent 

 propaganda staff who are distributed throughout the country. 



This department acts autonomously, as do all others in the bank, 

 under the direction and control of the council, and in the short time for which 

 it has been at work it has already given proof of singular activity, although 

 hitherto agricultural conditions have in general been adverse. Before we 

 briefly indicate the results it has obtained it will be well to show the prin- 

 cipal terms of contracts for insurance of this description. 



§ 2. Terms of a powcy of insurance against hail. 



For the period fixed in each contract the State Insurance Bank insures 

 the value of standing crops, that is of products actually borne by plants which 

 are still enrooted, against damage caused by hail, all damage due to causes 

 preceding, accompanj'ing or following on the fall of hail being expressl}- 

 excluded. 



Insurance is applied for in writing on the bank's forms, and the appli- 

 cation is an integral part of the policy and must be accompanied by the 

 amount of the due premium. 



