26 BULLETIN 530, U. S. DEPARTMENT OF AGRICULTURE. 
in 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 
rate 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 (i0%) 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) Novice 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- 
eation, 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, thé 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 PoLiIcy.W—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 
stili 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 haying 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 
* 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 preylous suspension may be necessary. 
——— — Eee a ee ee 
(Be 
