Page images
PDF
EPUB

CHAP. IV. Certificates

of this
section,

the term
agent,

3

which it was obtained or renewed, in the office of the clerk of the county in which such agency shall be established, and shall cause and copy of the same to be published in at least one newspaper published in to be filed. such county. Any violation of the provisions of this section shall subject the party violating to a penalty of five hundred dollars for each violation, which shall be sued for and recovered in the name

Penalty for of the people by the district attorney of the county in which the violating

provisions agent or company so violating shall be situated, and the said

penalty when recovered shall be paid into the treasury of said county: Provided, that all companies incorporated by any government other Proviso. than the States of this Union, which may have appointed such agent or agents before the first day of March, one thousand eight hundred and forty-eight, may hereafter appoint a new agent or agents in the case of the death, resignation or removal of an agent or agents previously appointed. The term agent or agents Meaning of used in this section shall include an acknowledged agent or surveyor, or any other person or persons who shall in any manner aid in transacting the insurance business of an insurance company not incorporated by the Laws of this State. [As modified by Laws of 1853, chap. 463, § 22, and by Laws of 1859, chap. 366, S83 and 8.] Mutual Benefit Life Ins. Co. v. Davis, 12 N. Y. 569.

(See Laws of 1880, chap. 428, post, p. 131.) § 8. It shall be lawful for any company organized under this Capital or act to invest its capital, or the funds accumulated by its business, invested. or any part thereof, in bonds and mortgages on unincumbered real estate within the State of New York worth fifty per cent more than the sum loaned thereon, and also in the stocks of this State or of the United States, and also in any or all stocks or bonds of either of the incorporated cities of this State, and which stocks or bonds shall be at or above par at the time of such investment, and to lend the same, or any part thereof, on the security of such stock or bonds; and any company organized for the purpose of marine insurance may, in addition to the foregoing, loan their funds on bottomry and respondentia, and change and re-invest the same

as occasion may, from time to time require; but Surplus, any surplus accumulation over and above the capital stock vested. of any such company may be invested in or loaned upon the pledge of the public stock of any one of the United States, or the stock, bonds, or other evidence of debt of any institution

Proviso. incorporated under the laws of this State, except their own stock:

Real estate not to be

in a certain manner.

CHAP. IV.

Provided, that the current market value of such corporate stocks, bonds, or other evidence of debt, shall be, at the time of the loan

thereon, at least ten per cent more than the sum so loaned thereon: Proviso. Provided, however, that any permanent or reserved fund, estab

lished or created by such company, shall be invested in the same manner as capital stock is required to be, except that the restriction as to the securities being at par shall not apply thereto. [As amended by Laws of 1857, chap. 469, $ 1.]

Mann. v. Eckford's Executors, 15 Wend. 502; Fulton Bank v. Benedict, i Hall, 480 ; Berry v. Yates, 24 Barb. 199; Sands v. St. John, 36 id. 635; People v. Rensselaer Ins. Co., 38 id. 323; Matter of World's Safe Ins. Co., 40 id. 499; Farmer's Bank v. Maxwell, 32 N. Y. 582.

(See Laws of 1875, chap. 423, post, p. 179.) $ 9. No company organized by or under the provisions of this purchased, act shall be permitted to purchase, hold and convey real estate, veyed ex. excepting for the purposes and in the manner herein set forth, cept for certaín pur

to wit: poses and

1. Such as shall be requisite for its immediate accommodation in the transaction of its business ; or,

2. Such as shall have been mortgaged to it in good faith, by way of security for loans previously contracted, or for moneys due, or,

3. Such as shall have been conveyed to it in satisfaction of debts previously contracted in the course of its dealings; or

4. Such as shall have been purchased at sales upon judgments, decrees or mortgages obtained or made for such debts; and it shall not be lawful for any company incorporated as aforesaid to purchase, hold or convey real estate in any other case or for any other purpose ; and all such real estate as may be acquired as aforesaid, and which shall not be necessary for the accommodation of such company in the convenient transaction of its business, shall be sold and disposed of within five years after such company shall have acquired title to the same, and it shall not be lawful for such company to hold such real estate for a longer period than that above mentioned, unless the said company shall procure a certificate from the superintendent of the insurance department, that the interests of the company will suffer materially by a forced sale of such real estate, in which event the time for the sale may be extended to such time as the superintendent of the insurance department shall direct in said certificate. [As modified by Laws of 1859, chap. 366, 88 3 and 8.) (See Laws of 1872, chap. 146, as amended by Laws of 1875, chap. 119, post, p. 228; and

Laws of 1882, chap. 290, post, p. 235.)

CHAP. IV.

Mode and manner of

Mutual

may issue

§ 10. In addition to the foregoing provisions it shall be the duty of the corporators of any and every company organized under this

exercising act, to declare in the charter which is herein required to be filed,

corporate the mode and manner in which the corporate powers given under be declare and by virtue of this act are to be exercised, the mode and manner in charter. of electing trustees or directors, a majority of whom shall be citizens of this state, and the filling of vacancies, the period for the commencement and termination of its fiscal year, together with the amount of capital to be employed in the transaction of its business. But

any mutual company that heretofore has been, or hereafter may be organized under this act, may issue policies, providing that companies the assured in such policies shall not participate in the profits of policies in such company, and that in lieu of scrip, the said company may cases. stipulate for, and take a net premium, or may make a cash deduction from the premiums paid on such non-participating policies, though such mode and manner of doing business may not be declared in the charter of such company. [As amended by Laws of 1867, chap. 574, 8 I.]

Thomas v. Achilles, 16 Barb. 491 ; Devendorf v. Beardsley, 23 id. 656 Hyatt v. McMahon, 25 id. 458 ; White v. Coventry, 29 id. 309; White v. Ross, 15 Abb. Pr. 66.

(Any company organized under a special charter may avail itself of the privileges granted under the preceding section, any thing in its charter contained to the contrary notwithstanding. [Laws of 1857, chap. 574, $ 2.1)

§ 11. The charter thus filed by the corporation shall be exam- Charter to ined by the attorney-general, and if found to be in accordance be examwith the requirements of this act, and not inconsistent with the attorney

general. constitution or laws of this State, he shall certify the same to the superintendent of the insurance department of this State, and the said superintendent shall thereupon cause an examination to be Examinmade, either by himself or by three disinterested persons specially made by appointed by him for that purpose, who shall certity under oath superinthat an amount equal at least to the amount specified in the fifth commissection of this act, if it be a stock company, has been paid in and is possessed by it in money, or in such stocks and bonds and mortgages as are required by the eighth section of this act; or if a mutual company, that it has received and is in actual possession of the capital, premiums or engagements of insurance as the case may be, to the full extent required by the fifth section of this act; such certificates shall be filed in the office of the superintendent of the insurance department, whose duty it shall then be to furnish the corporation with a certified copy of the charter and certificates

ation to be

OHAP. IV.

aforesaid, which, upon being filed by them in the office of the clerk of the county in which their company is to be located, shall bė their authority to commence business and issue policies, and the same may be used in evidence for or against said corporation. [As modified by Laws of 1853, chap. 463, § 22, and by Laws of 1859, chap, 366.]

Shaughnessy v. Rensselaer Ins. Co., 21 Barb. 605; Jones v. Dana, 24 id. 395; Williams v. Babcock, 25 id. 109; Hyatt v. McMahon, id. 457 ; Hart v. Achilles, 28 id. 576; White v. Coventry, 29 id. 305 : Howland v. Edwards, 33 id. 433 ; Hyatt v. Esmond, 37 id. 601 ; Matter of World's Safe Ins. Co., 40 id. 499; Cooper v. Shaver, 41 id. 155; Chase v. Lord, 77 N.

Y. 1; S. C., 6 Abb. N. C. 258. By-laws § 12. The corporators or the trustees or directors, as the case may be made. may be, of any company organized under the provisions of this

act, shall have power to make such by-laws, not inconsistent with the constitution or laws of this State, as may be deemed necessary for the government of its officers and the conduct of its affairs.

Devendorf v. Beardsley, 23 Barb. 656; Jackson v. Roberts, 31 N. Y. 312.

$ 13. It shall be the duty of the president or vice-president and to be made secretary of each marine insurance company, incorporated by or and pub

organized under any law of this State, annually on the first day of January, or within one month thereafter, to prepare, under their own oath, and deposit in the office of the insurance department, a statement of the condition and affairs of such company, for the year ending on the thirty-first day of December* then next preceding, exhibiting the total amount of premiums received and the total amount of losses paid and ascertained, including expenses during the year; also the amount of debts owing by the company at the date of the statement, and the amount of claims which then exist against the company for losses accrued, showing what amount of such claims for losses is payable on demand, what amount thereof is considered fair or legal, the payment of which has not

then matured according to the contract, and what amount thereof is statement.

resisted on account of alleged fraud, or for which the company do not consider themselves legally liable; also a statement of the securities representing the capital stock and all the funds of the company, and also whether any of the securities held or owned by such company are considered bad or doubtful, and if so, specifying the amount

Annual statement

lished.

Contents of annual

* See sec. 2, of chap. 326, Laws of 1861, with reference to authority conferred on insurance companies, to change the date of the termination of their fiscal year to the 31st day of December. Ante, p. 7.

CHAP. IV.

statement

Informa

statements

islature.

expenses of

In case of

to be

of such securities and the gross amount of outstanding risks thereon; and exhibiting also the assets and liabilities of the company, its income and expenditures during the year, scrip issued and redeemed, and other miscellaneous items, in such form and manner as shall, from time to time, be prescribed by the superintendent of the insurance department. The statement herein provided for shall be in lieu of all statements now required to be made or published, by any existing law or provision. The superintendent of the in Form of surance department may, from time to time, make such changes annual in the form of said annual statements as shall seem to him best may be

changed. adapted to elicit from the said companies a true exhibit of their condition, situation and affairs. It shall be the duty of the superintendent of the insurance department to cause the information tion concontained in such annual statements to be arranged and commu- annual nicated to the legislature with his annual report. If, upon due exam- to be comination, it shall appear to the superintendent of the insurance de- to the legpartment that the losses and

any
stock
company

during the year have exceeded the premiums, and in consequence deficiency,

companies thereof the capital of such company has become deficient, or from any other cause has become impaired to the extent of twenty-five wound up per cent, it shall be the duty of the said superintendent of the in- ficiency is

. surance department to direct the officers of any such company, within sixty days, to proceed to wind up its business, unless within that time the stockholders thereof shall pay in the amount of such deficiency. Any company receiving such requisition from the su

Calls, when perintendent of the insurance department shall forthwith call upon to be made its stockholders for such amounts as will make its capital equal holders. to the amount fixed by the charter of the said company ; and in case any stockholder of such company shall refuse or neglect to pay such call, after notice personally given, or by advertisement in such time and manner as the superintendent of the insurance department shall approve, it shall be lawful for the said company to require the return of the original certificates of stock held by such stockholder, and in lieu thereof to issue new certificates for such number of shares as the said stockholder may be entitled to in the proportion that the ascertained value of the funds of the said company may be found to bear to the original capital of the said company; the value of such shares for which new certificates shall be issued to be ascertained under the direction of the superintendent of the insurance department and the company paying for the fractional parts of shares; and it shall be lawful for the

« PreviousContinue »