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public lands and buildings, are presented to him for payment.

SEC. 7. Whereas an emergency exists, therefore, this act shall take effect and be in force on and after its passage.

Approved April 9, 1891.

[House Roll No. 52.]



of mutual in

surance com


Declaration of intention to


AN ACT to authorize the organization of mutual insurance com


Be it enacted by the Legislature of the State of

SECTION 1. That any number of persons, not less than twenty (20), residing in this state, who collectively shall own property of not less than twenty thousand ($20,000) dollars in value, which they desire to have insured, may form an incorporated company for the purpose of mutual insurance against loss by fire, lightning, or tornado.

SEC. 2. Such persons shall file with the auditor form company; of public accounts a declaration of their intention. to form a company for the purposes expressed in the preceding section, which declaration shall be signed by at least twenty of the incorporators, and shall contain a copy of the charter proposed to be adopted by them. Such charter shall set forth the name of the corporation, the name of the city, town or village in which the business office of such company is to be located, and the intended duration of the company, and if such declaration is found conformable to this act, and not inconsistent with the

constitution of this state, the auditor shall thereupon deliver to such persons a certified copy of the charter, which on being filed in the office of the county clerk of the county where the office of such company is to be located, shall be their authority to organize and commence business. Such certified

copy of the charter may be used in evidence for or against said company with the same effect as the original.

SEC. 3. The number of directors shall not exceed Directors. nine (9), a majority of whom shall constitute a quorum to do business, to be elected from the members by ballot, and they shall hold their offices until their successors are elected and qualified.

SEC. 4. The policy-holders shall elect from their Officers. number a president and a treasurer, and shall also elect a secretary, who may or may not be a member of the company, all of whom shall hold their offices for one (1) year, and until their successors are elected and qualified.

treasurer and secretary.

SEC. 5. The treasurer and secretary shall each Bonds of give bonds to the company for the faithful performance of their duties, in such amounts as shall be prescribed by the board of directors.


SEC. 6. Such corporation and its directors Powers of corshall possess the usual powers and be subject to the usual duties of corporations and directors thereof, and may make such by-laws, not inconsistent with the constitution or this act, as may be deemed necessary for the management of its affairs in accordance with the provisions of this act, and may prescribe the duties of its officers and fix their compensation, and to alter and amend its by-laws when necessary.


Policies; expenses.

SEC. 7. Any person owning property in the territory for which any such company is formed, under such restrictions and qualifications as the bylaws may prescribe, may become a member of such company by insuring therein, and shall be entitled to all the rights and privileges appertaining thereto.

SEC. 8. Such company may issue policies only on detached farm dwellings, barns (except livery, boarding, and hotel barns), and other farm buildings and such property as may properly be contained therein, and also upon horses, mules, cattle, sheep, and hogs, against damage by fire, lightning, or tornado for any length of time, but not to extend beyond the limit and duration of the charter, and for any amount the company may deem safe on any one risk, nor shall any property be insured for more than two-thirds (3) its actual value. All persons so insured shall give their obligation to the company, in a written or printed application, binding themselves, their heirs and assigns, to pay their pro rata share to the company of the necessary expenses and of all losses by fire, lightning, or tornado which may be sustained by any member thereof during the time for which their respective policies are written and they continue as members of the company, and they shall also, at the time of effecting the insurance, pay such percentage in cash and such other charges as may be required by the rules and by-laws of the company; Provided, That any company formed under the provisions of this act may in its by-laws limit the percentage of the liability of its members. SEC. 9. Any such company may classify the Insured. property insured therein at the time of issuing

Classification of property

policies thereon under different rates corresponding as nearly as may be to the greater or less risk from fire, lightning, or tornado which may attach to each building or personal property insured.


SEC. 10. No such company shall insure any Property not property beyond the limits of the territory, nor shall it insure any property within the limits of any city or village.


SEC. 11. Every member of such company who Adjustment of may sustain loss or damage by fire, lightning, or tornado shall immediately notify the secretary thereof, stating the amount of damage or loss claimed, then the person or persons authorized by the by-laws of such company to adjust losses shall proceed to ascertain the amount of such loss or damage, and adjust the same. If there is a failure of the parties to agree upon the amount of such damage or loss the same shall be submitted to three (3) persons as a committee of reference, one of whom shall be selected by the claimant, one by the company, and the third by such two persons, who shall be sworn to a faithful and impartial investigation and award, and who shall have authority to examine witnesses and to determine all matters in dispute, and shall make their award in writing to the secretary of the company, and such award shall be final. The pay of the membership of such committee shall be two ($2) dollars per day for each day's service so rendered in the discharge of their duties, which shall be paid by the claimant unless the award of said committee shall exceed the sum offered by the company in liquidation of such loss or damage, in which case said expenses shall be paid by the company.


Notice of assessment.

Suits for assessments, losses, etc.

Annual state


SEC. 12. Whenever the amount of any loss shall have been ascertained, which exceeds in amount the cash funds of the company, the secretary shall make an assessment upon all the property insured by the company; Provided, That any company may provide in its by-laws for making assessments at stated intervals only, and may also provide that assessments shall be made by the board of directors.

SEC. 13. It shall be the duty of the secretary, whenever such assessment shall have been made, to immediately notify every person composing such company, personally, or by a letter sent to his usual postoffice address, of the amount of such loss, and the sum due from him as his share thereof, and of the time and to whom such payment is to be made; but such time shall not be less than twenty (20) nor more than forty (40) days from the date of such notice.

SEC. 14. Suits at law may be brought against any member of such company who shall neglect or refuse to pay any assessment made upon him or her, by the provisions of this act; and the directors or officers of any company so formed who shall willfully refuse or neglect to perform the duties imposed upon them by the provisions of this act shall be liable in their individual capacity to the person sustaining such loss. Suits at law may also be brought and maintained against any such company by members thereof for losses sustained, if payment is withheld after such losses become due.

SEC. 15. It shall be the duty of the secretary to prepare an annual statement showing the con

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