REPORT OF THE COMMISSIONER OF INSURANCE.


99


LIABILITY SEVERAL AND NOT JOINT
The obligation of any subscriber on any loss is several and
not joint. The power of attorney expressly states:
"Our attorney shall not have power to bind us for the obli-
gations of any other subscriber, but they shall bind us separately
and for ourselves alone."
SAVINGS TO POLICYHOLDERS
The savings to the policyholders have been large, whlen the
nature of the risks assumed are taken into consideration. The
advisory committee sets aside out of the savings a net surplus
equal to twice the amount of the annual deposits, and all the
other savings are returned to the subscribers in cash. The
power-of-attorney makes provision, however, that the advisory
committee may, at their option, authorize the return of a per-
centage of the savings before the full amount has been accumu-
lated. The savings are divided pro rata among the different
subscribers, in proportion to the amount of liability which each
subscriber assumes.
INSPECTIONS
The exchange maintains a very complete system of inspections
and surveys. Each plant insured is inspected six times a year
by experienced engineers, and their recommendations are for-
warded to the subscribers, who, in turn, notify the exchange if
the recommendations of the inspectors are carried out. If the
insurer fails or neglects to carry out the recommendations, and
the same conditions are found to exist during the course of
several inspections, he is notified by the attorney-in-fact to make
the alterations suggested, and if no heed is taken to this advice.,
he is then dropped from the list and his account is liquidated
and all savings returned to him. I am of the opinion that the in-
spections are most thorough and searching.
COMMISSIONS
The attorney-in-fact receives a compensation of 25%  from
all premium moneys paid into the exchange, which is in full
for; 411 expenses incident to the 'business except legal expenses.