mium and are subject to assessment to the amount of one
additional basic premium;. The attorney is bonded for
Savings are distributed to members at the end of the
policy year. Twenty-five per cent. of the amount of interest
on exchange funds and the profits on investments and sav
ings are set aside as a reserve fund. All funds of this ex-
change are in the custody of the attorney and advisory
The liability of the exchange or of the subscriber may be
cancelled at any time by either of the parties giving five
days' written notice to the other. In the event of cancella
tion the profits, if any, are returned.
T'he attorney-in-fact and the Insurance Commissioner of
California are authorized to accept service of process.
The subscriber's agreement provides for the appointment
by the subscribers of an advisory board of ten persons in
each city where the exchange does business, which advisory
board shall have the supervision of the funds of subscribers
at that point.
Attention is called to the fact that credit for subscribers
deposits payable in monthly installments and on demand
is taken in the assets of the statement below.
Its statement as of December 31, 1919, is as follows:
Admitted cash assets: Liberty bonds and War Savings
stamps, $70,927.25; interest due and accrued thereon. $1,-
219.78: cash in banks and office, $28,867.16: premiums or
deposits outstanding not over three months due. $46,754.94;
unexpired reinsurance and accounts received, $3,184.56;
subscribers' deposits payable in monthly installments,
$118,270.01: subscribers' deposits payable at call, $34,-
679.30: total cash assets, $303,903.
Liabilities: Unpaid losses, $19,128.81: unearned pre
mium deposits, $224,307.34: salaries, rents. etc.. $454.57;
accrued taxes, $4.816.46: total liabilities, $248.707.18; net
cash surplus. $55.195.82; total, $303,903.
Cash Income, 1919.— Premium deposits written, gross,
$541,927.64; less return premium deposits, $120.718.84; net,
$421,208.80; interest, etc., $3,083.06; total cash income,
Cash Disbursements, 1919.— Losses paid, gross, $132,-
535.26; less salvage, $7,734.22: net losses, $124,801.04;
paid to attorney-in-fact for administration expense, $70,-
675.55; taxes, licenses and fees, $4,478.75; adjustment ex
pense, $17,149.70; other expenses, $525; total cash disburse
Transactions Since Organvization.—Premium deposits
received, gross, $778,513.40; less return premium de-
posits, $169,708.29; less reinsurance, $689.01; net pre-