(1) Every grain warehouseman shall at all times keep the grain stored in the grain warehouse insured by an insurance company authorized to do business in this state. The grain is to be insured for its full market value against loss by fire, inherent explosion, lightning and windstorm, and failure to do so shall make the grain warehouseman liable for the same. All such policies shall provide that no cancellations shall be effective unless thirty (30) days’ prior notice is given the commissioner.
(2) If fire, inherent explosion, lightning or windstorm shall destroy or damage all or part of the grain stored in any grain warehouse, the grain warehouseman shall, upon demand by the holder of any warehouse receipt for such grain, and upon being presented with the warehouse receipt, make settlement for the fair market value after deducting the warehouse charges.