(a)
(1)
(A) At all times, every public grain warehouseman shall keep the grain stored in the public grain warehouse insured by an insurance company authorized to do business in this state.
(B) 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 public grain warehouseman liable for the grain.
(2) All policies shall provide that no cancellation shall be effective unless thirty (30) days' prior notice is given the Public Grain Warehouse Commissioner.
(b) If fire, inherent explosion, lightning, or windstorm shall destroy or damage all or part of the grain stored in any public grain warehouse, the public grain warehouseman shall, upon demand by the holder of any warehouse receipt for the grain and upon being presented with the warehouse receipt, make settlement for the fair market value at the time of the loss after deducting the warehouse charges.