Said reserve shall be established by setting aside a sum equal to ten per cent of
the premium (that is the sum charged for insurance over and above examination and
settlement fees) paid on each policy of insurance which such company may hereafter
issue, until the total amount set aside shall equal two hundred and fifty thousand
dollars: Provided, That the said total reserve fund may, with the consent of the
secretary, be set aside at any one time, or from time to time, out of surplus and
undivided profits. Said ten per cent of each premium shall be known as the reserve, and the aggregate
of said reserves of all policies issued and outstanding shall be known as the reserve
fund. The reserve fund shall be maintained as herein provided so long as liability on
any policies shall be outstanding.
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