118


REPORT OF THE COMMISSIONER OF INSURANCE.


during 1912. In the records of the company these losses would
be shown as belonging to the year in which they occurred. In
the department examination they are shown as belonging to
the year in which payments are made. The standing, there-
fore, of the exchange in regard to losses is better than that
indicated by the department examination.
We xvish to express our appreciation of the courtesy which
we received when making this examination.
LUMBER MANUFACTURERS INTER-INSURANCE
ASSOCIATION.
Location of Exchange, 3 South Williams St., New York City.
The Lumber Manufacturers Inter-Insurance Association was
organized 1'ay 1st, 1908, and issued its policy immediately after
that date. The preliminary organization consisted of only 25
subscribers. At the present time it has 224 subscribers with
740 policies in force. On August 9th, 1913, the amount of in-
surance in force was $7,932,059.36, while the annual premium
deposits amounted to $150,105.12.
LIABILITIES OF SUBSCRIBERS
The liability of the subscribers on any one loss is limited to
the amount of one annual deposit. The advisory committee,
however, has the right to set aside, out of the savings of the
subscribers, an amount equal to twice the amount of an annual
dleposit, as a reserve fund. This emergency fund is used when
the losses exceed the amount for which provision has been made
in the annual deposits of the' subscribers. The attorney-in-fact
has the power to bind each subscriber severally, but not jointly.
T-Ie must also bind the subscribers upon the same terms and
conditions that he binds all other subscribers.
ADVISORY COMMITTEE
The subscribers elect an advisory committee consisting of
five u members. They have charge of all funds belonging to the
subscribers, with the power to deposit them in banks and in-
vest them in securities. All disbursements from the subscrib-
ers' funds must be made by check and receive the sanction of