316(1)Subject to section 326, the board shall demand and collect a cash payment on the premium note at the time of the application for insurance of such amount as may be fixed by by-law; and if the amount so collected in cash is more than sufficient to pay all losses and expenses during the continuance of the policy, then any surplus becomes part of the reserve fund.

316(2)The board may make assessments upon premium notes before losses have happened or expenses been incurred and any surplus from any such assessment becomes part of the reserve fund.