CHAP. VI. Construc § 2. Nothing herein contained shall be held or construed to tion of act. revive the act mentioned in section one hereof, or to authorize the formation of other companies under what were the provisions thereof before the same was repealed. Corpo rators. Object. Applications for insurance. Directors. How elected. L. 1879, Chap. 287 — An Act to provide for the formation of county and town co-operative insurance companies. PASSED May 15, 1879. SECTION 1. It shall be lawful for any number of persons not less than twenty-five, residing in one or more adjoining towns, or in any county, or in any two adjoining counties in this State, who collectively own property of not less than fifty thousand dollars in value, which they desire to have insured, to form themselves into an incorporated company, for the purpose of co-operative insurance against loss or damage by fire or lightning, by making, signing and acknowledging, before some officer by law authorized to take acknowledgments of conveyances of real estate, a certificate of their intention to form such corporation, stating the town or towns, or the county or counties in which such company intends to do business, its corporate name, which shall embrace the county or counties in cases when the association includes one or more counties, and the name of the town in cases of towns in which the business office of said company is located. Every person insured in said company shall sign an application for insurance as required by the articles of association and by-laws of the company, and thereby become a member thereof. [As amended by Laws of 1880, chap. 397, § 1.] § 2. Every company formed according to the provisions of this act shall choose of their members not less than five nor more than nine directors, in the case of town insurance companies or associations, nor less than nine directors, nor more than the number of one for each town, in case of county insurance companies or associations within the territorial limits of said company or association, whose duty it shall be to manage the business of the company or association, and who shall hold their office for one year, or until others are elected and qualified; and said directors shall choose from the members of said company or association, a president, a secretary and a treasurer, and such other officers as their by-laws shall prescribe, All officers shall be elected by ballot. The business and corporate powers of the companies, or associa CHAP. VI. Corporate how exer tions incorporated under this act, shall be exercised by said board of directors, subject to the by-laws of the company or association. powers, The by-laws shall prescribe the number of directors necessary to cised. constitute a quorum for the transaction of business, and may pro- By-laws, vide for any executive committee for such purpose as may be necessary, and may require officers to give such bonds as the interests of the company may require. [As amended by Laws of 1880, chap. 397, § 2, and by Laws of 1882, chap. 282, § 1.] etc. to be made § 3. It shall be the duty of the first directors of any company Statement organized under this act, before doing any business of insurance, and filed. to prepare a statement showing the name of the company, the names of the persons comprising the proposed company, with the amount of proposed insurance to each, the name of the association, a copy of the articles and by-laws of association, and the names of the county, town or towns comprising the territorial limits within which it is proposed to do business, the names of the directors and officers, with their post-office address, the place where the principal office for the transaction of business shall be located, and the mode and manner in which the business of said company is to be conducted, and file a copy thereof, signed by said directors and officers, in each of the following offices, namely, in the office of the clerk of the county where the office of the company is located, and in case of town insurance companies in the office of the clerk of the town where the office of said company is located. business com § 4. The persons so associating, after having filed the statement When as required by section three, may open books to receive proposi- may be tions and enter into agreements in a manner authorized by this act. menced. But no company organized under this act shall do any business or issue any policies until bona fide agreements have been entered into covering property to be insured to the amount of not less than one hundred thousand dollars in cases of county associations, and fifty thousand dollars in cases of town associations. § 5. The directors of every company formed under this act Records. shall procure proper books in which the secretary shall keep a perfect record of all the transactions of the company and of the board of directors, and shall show at all times fully and truly, the condition, affairs and business of said company, and shall be kept open for the inspection of every member thereof from nine o'clock in the forenoon to four o'clock in the afternoon, Sundays and legal holidays excepted. CHAP. VI. etc. § 6. The directors of any company formed under this act may insurance, issue policies of insurance, signed by the president and secretary, agreeing in the name of said company to pay all damages, not exceeding the amount insured, done to dwelling-houses, barns and their contents, and other property not more hazardous, and buildings not more hazardous in cities or villages detached at such distance as the by-laws of the company may prescribe, and their contents and live stock owned on the premises, caused by fire or lightning, during the time mentioned in the policy of the insured; said company shall not issue policies for less than one year or more than five years; and they shall not insure more than seven thousand dollars in any one risk. The company may issue more than one policy to one person, firm or corporation having separate or detached buildings, that this act or the by-laws of said company do not prohibit the said company from insuring. Every policy issued shall have attached thereto a printed copy of the bylaws and regulations of the company. [As amended by Laws of 1880, chap. 397, § 3, and by Laws of 1882, chap. 282, § 2.] Undertaking of members to pay losses. Proceed ings in case of loss. Classification of risks. Assess ments on members. 87. Every person, firm or corporation or trustees so insured shall give his, her or their undertaking, binding him, her or them, their heirs or assigns, to pay their pro rata share to the company, of all losses or damages caused by fire or lightning, which may be sustained by any member or members thereof; and every such undertaking shall be filed by the secretary of such company in the office of the company. He, she or they shall also pay such percentage in lawful money, and such reasonable sum for policies and expenses as may be required by the by-laws of said company. § 8. Every person holding a policy not expired or vitiated, who has sustained a loss by fire or lightning, shall immediately notify the president or secretary of the company of his loss, and it shall be the duty of the officers of the company to at once proceed to ascertain and adjust said loss in the manner provided by the charter and by-laws of said company, and by the provisions of this act. § 9. The companies formed under the provisions of this act may classify the property or buildings insured therein, at the time of insuring and issuing policies, under different rates, according to the risk from fire which may be attached to buildings insured. Whenever the amount of any loss is ascertained, which exceeds in amount the cash on hand of the company, the president or secretary, as shall be determined in the by-laws of the company, shall convene the directors or executive committee, who shall make an assessment upon all the property insured, pro rata, sufficient to pay what the cash in hand falls short of paying, or for the whole loss, as the directors or executive committee may decide is best for the interest of the company. CHAP. VI. to notify assess § 10. It shall be the duty of the secretary, within ten days, to Secretary notify every member by written or printed, or partly written and members of partly printed notice, signed by the secretary, that an assessment ment. has been made, and the amount due from such member as his share of the loss or damage as determined by said directors or executive committee, and the time when and to whom such amount must be paid; such time shall be not less than thirty Time. nor more than sixty days from the date of such notice; the cost of expense and collection to be regulated by the by-laws of the company, such notice may be served personally or by How mail, and if by mail it shall be deposited in the post-office at be served. the place where its principal office is located, or where said secretary resides, directed to each member at his place of residence or business and the postage prepaid. [As amended by Laws of 1882, chap. 312, § 1.] assess § II. Suits at law may be brought against any member or Actions for members of any company, organized under the provisions of ments. this act by the president thereof, in the name of the company, in any of the courts of this State, of competent jurisdiction, to recover all assessments that any member neglects or refuses to pay when made upon him or them under the provisions of this act or the by-laws of the company. Any member or members Penalty for refusing to of any company formed under this act who refuses or neglects pay. to pay his or their part of any assessment, or for any other reason satisfactory to the directors, may be excluded by a majority of the directors of the company from the company, and when thus excluded, the president shall cancel or withdraw his or their policy or policies, which shall prevent him or them recovering for any loss after exclusion by the directors; but nothing herein contained shall prevent the collection of such assessment in any suit at law. The officers of any company formed under this act, who Penalty for shall neglect or refuse to perform the duties imposed upon them neglect of by the provisions of this act, shall be liable in their individual capacity for the amount lost to the person or persons who lose by their refusal or neglect. 12. No company organized pursuant to the provisions of this duty by officers. Territorial CHAP. VI. limits of act shall insure any building or property out of the limits of the operations, territory comprised in the articles of association adopted in the Directors to be chosen annually by ballot. Annual statement. formation of the company, except when a person or member of the § 13. The directors of any company or association organized under the provisions of this act shall be chosen by ballot at the annual meeting of the company, which shall be held on the second Tuesday of January, unless some other day be designated by the by-laws of any such company or association. At such meeting every person insured shall have one vote, and shall be entitled to vote by proxy at such elections, unless prohibited by the by-laws of the company or association. [As amended by Laws of 1880, chap. 397, § 5.] §14. It shall be the duty of the president and secretary of each and every company formed under the provisions of this act, to make a statement under oath, showing the condition of such company on the day preceding the election of officers, which shall contain the amount, and kind of property insured; the number of policies issued each year from the time of the organization of such company up to the time of making such statement, and the names of the persons to whom issued during the year last past, and the amount of such policy; the names of persons withdrawn or excluded from the company, with the amount of insurance of each; the whole amount of moneys received by such company during the year, together with an itemized account of the same and the source whence derived; the amount of disbursements, together with an itemized account of the same, including salaries of officers; all fees, commissions and all sums paid for any purpose, and all other matters of interest to the company or members thereof; *So in the original. |