26 BULLETIN 530, U. S. DEPAKTMENT OF AGRICULTURE. 



iu addition to the initial premium, a policy fee of 75 cents when the additional 

 insurance applied for is $500 or less, and $1.50 when the sum applied for is 

 greater than $500. 



( b ) Regular assessment. — Not later than October 20 of each year the board 

 of directors shall determine the rate of assessment for that year, basing such 

 rare upon past experience as to the needs of the company. Said assessment, 

 shall be due on or before November 30 of the same year. Policies written on 

 or after December 1 of the previous year and before June 1 of the current year 

 shall be subject to the regular assessment of the current year- and to three 

 succeeding regular annual assessments. Policies written on or after June 1 

 of the current year and before December 1 of the current year shall be exempt 

 from the regular annual assessment of that year, but shall be subject to four 

 succeeding regular annual assessments. 



(c) Special assessments. — Should unexpectedly heavy losses occur which can 

 not be met by the funds on hand, supplemented at the discretion of the board of 

 directors by a sum not exceeding two-tenths of 1 per cent (r%%) of the in- 

 surance in force, which may be borrowed, a special assessment shall be levied 

 on all policies in force at the time of such loss or losses. 



(d) Notice of assessment. — Not later than November 1 of each year the 

 secretary shall, by letter directed to the post-office address given in the appli- 

 cation, or to the latest address, if he has been informed of a change, notify 

 the member of the amount due from him. He shall also include with this 

 notice such information bearing upon the business of the company as may be 

 considered of practical interest and value to the member. Should the member 

 continue to neglect or refuse to pay such assessment for 10 days after the 

 assessment has become due, the secretary shall send by registered mail a second 

 notice, adding 25 cents to the assessment to cover the extra work and expense 

 occasioned by the member's neglect. 



Sec 13. Suspension, forfeiture of membership, and reinstatement. 



(a) Suspension of policy. 1 — The sending of the two notices described in 

 paragraph (d) of section 12 shall constitute legal notice, and unless payment 

 is received within 10 days after the sending of the second notice the policy in 

 question shall stand suspended until the assessment is paid. The company 

 shall not be liable for any loss suffered by the holder of such policy during the 

 period of suspension, nor shall the later acceptance of the full assessment 

 render the company liable for such loss. The part of the assessment corre- 

 ponding to the cost of insurance for the period during which the policy was 

 suspended shall be considered a penalty for delinquency. 



(b) Forfeiture of membership. — One month after the second notice, a policy 

 still remaining suspended shall be canceled, and the holder shall be dropped 

 from membership in the company. Such cancellation shall in no way release 

 the former member from any debt already incurred to the company. 



(c) Reinstatement. — A person having forfeited his membership under the 

 provisions of paragraphs (a) and (b) of this section may, at the discretion of 

 the board of directors, upon proper application for reinstatement, the payment 

 of past dues, if any, the acceptance of a new policy, and the payment of the 

 regular policy fee and Initial premium, have his membership restored. 



Sec. 14. Classification and rates. 



(a) Classification. — Property insured by this company shall be classified as 

 follows, the contents of buildings taking the same classification as the 



1 Where the State law specifically provides the manner in which the insurance liability 

 may be terminated and no suspension of a policy is provided for, direct cancellation 

 without previous suspension may he necessary. 



