CHAP. VI. which statement or a certified copy thereof shall be filed in the Statement town clerk's office of the town where the office of the company is to be filed. located, in cases of town insurance companies, and in the office of the clerk of the county in cases of county insurance companies, within thirty days after the annual meeting in each year. And no company organized under the provisions of this act, nor their offi- statements cers, shall be required to make any report or statement, or do any required. requirement not contained in the provisions of this act or in the by-laws of the company to which they belong. Other not drawal of Admission bers. § 15. Any member of such company may withdraw therefrom Withat any time, by notice in writing to the president, or in his absence, members. to the secretary; and paying his share of all claims existing against the company and surrendering his policy or policies. Members may be admitted who reside within the territorial limits of the of memcompany, upon the same terms and conditions as the original members, subject to the by-laws of the company organized under the provisions of this act. Non-residents who own property that may be insured in any such company may become members for the purpose of having their property insured, and shall enjoy all the rights and privileges of such company, and shall be accountable the same as other members, but shall not be eligible to hold office in said company. tions on § 16. No company formed under this act shall insure against Limitalosses otherwise than by fire or lightning, nor issue life insurance business. policies or policies on any other risk not mentioned in this act, nor shall they insure any buildings or property within the corporate limits of any city or village, situated less than one hundred feet distant from any other risk or structure. § 17. Any company formed under the provisions of this act may make and enforce such by-laws for its regulation as two-thirds of all the directors may adopt, and any amendment may be adopted by being presented to the president at least three months previous to any regular meeting of said directors; but said proposed amendment shall be voted for at a regular meeting, and twothirds of the votes of all the directors shall be required to adopt it. No by-laws shall be of any effect if inconsistent with the provisions of this act or the laws of this State. The by-laws may provide for compensation of the officers of the company and the number and kind and the security proper to be given by any officer, and may designate the amount of money that may be kept on hand and the manner of disbursing the same, and make provis By-laws. CHAP. VI. Companies doing business may organize act. ion for books for records of the transactions of the company. § 18. Any company or association already doing a business of insurance upon the principles prescribed by this act may become organized and possess all the power, and be subject to the reunder this strictions and regulations required by this act, upon filing a statement of their condition at the time, containing the requirements of section three, in the offices required by said section. The said companies or associations shall thereafter be subject to the provisions of this act, and the policies theretofore issued by them shall be as valid, and the rights and powers of the officers and members of such companies or associations shall be the same in all respects as if they had been originally organized under this act. [As amended by Laws of 1880, chap. 397, § 6.] Corporations. Object. Directors. L. 1880, Chap. 362 - An act to provide for the formation of county and town co-operative insurance companies. PASSED May 22, 1880. [Title amended by Laws of 1881, chap. 171, § 12, by adding the words "and town" thereto.] § 1. It shall be lawful for any number of persons not less than twenty-five residing in one or more adjoining counties, or in one or more adjoining towns in any one county 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 county or the counties, the town or towns, in which such company intend to do business, its corporate name, which shall embrace the county or town 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 bylaws of the company, and thereby become a member thereof. [As amended by Laws of 1881, chap. 171,§ 1.] § 2. Every company formed under the provisions of this act shall choose of their number not less than eleven directors, whose duty it shall be to manage the business of the said company, who CHAP. VI. shall hold their office one year and such longer term, not exceeding four years, as the by-laws of the company may prescribe, and until others are elected and qualified; and said directors shall Officers. choose from their number a president, secretary, and such other officers as their by-laws shall prescribe, who shall hold their office not less than one or more than four years, as their by-laws shall prescribe; all officers to be elected by ballot. The business and corporate powers of the companies incorporated under this act shall be transacted and exercised by said board of directors, subject to the by-laws of the company. The by-laws shall pre- Quorum. scribe the number of directors necessary to constitute a quorum for the transaction of business, and may provide for an executive committee for such purposes as may be necessary, and may require officers to give such bonds as the interest of the company may require. [As amended by Laws of 1881, chap. 171, § 2.] before commenc ing busi § 3. It shall be the duty of the first directors of any company Statement organized under this act, before doing any business of insurance to prepare a statement showing the names of the persons comprising the proposed company with the amount of proposed insurance to each, the name of the company, a copy of the articles and bylaws of the company, and the names of the county or counties, 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 officers and directors, in the office of the clerk of each county comprised within the territorial limits of said company and in the office of the secretary of State. [As amended by Laws of 1881, chap. 171, § 3.] Books may to receive sitions for § 4. The persons so associating, after having filed the statement be opened as required by section three, may open books to receive proposi- propotions, and enter into agreements in a manner authorized by this insurance. act. 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 for each county embraced within the territorial limits of said company, and within which it is proposed to do business. § 5. The directors of every company formed under this act shall Record to be kept by procure proper books, in which the secretary shall keep a perfect secretary. CHAP. VI. 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 of said company, every day from nine o'clock to eleven o'clock in the forenoon, Sundays and legal holidays excepted. Policies of § 6. The directors of any company formed under this act may insurance. issue policies of insurance, signed by the president and secretary to be made insured. 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 by-laws and regulations of the company. [As amended by Laws of 1881, chap. 171, § 4.] Agreement § 7. Every person, firm, corporation or trustee so insured shall by persons give his, her, its or their contract or agreement binding him, her it 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. He, she, it or they shall also pay such percentage in lawful money and at such reasonable sum for policies and expenses, and within such time as may be required by the by-laws of said company. [As amended by Laws of 1881, chap. 171, § 5.] Immediate notice of given. § 8. Every person, firm or corporation holding a policy, not loss to be expired or vitiated, who has sustained a loss or damage by fire or lightning, shall immediately notify the president or secretary of his, her, it or their loss or damage, and it shall be the duty of the officers of the company to at once proceed to ascertain and adjust such loss or damage in the manner provided by the charter and by-laws of said company and the provisions of this act. Classifica § 9. The companies formed under the provisions of this act may CHAP. VI. tion of classify the property or buildings insured therein at the time of assess losses. § 10. It shall be the duty of the secretary, within ten days, to Notice of notify every member of said company by written or printed, or ment for partly written and partly printed notice, signed by the secretary, that an assessment 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 not be less than thirty 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 mail, and if by mail it shall be deposited in the post-office at 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 1881, chap. 171, §7.] recover § 11. Suits at law may be brought against any member or mem- Suits to bers of any company organized under the provisions of this act, by same the president, in the name of the company, in any of the courts of this State having 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; and in case the president is obliged to bring suit to collect any assessment as aforesaid, he shall be permitted to recover the amount so assessed, with fifty per centum of such assessment to be added thereto in addition to lawful interest, as a penalty for such neglect and refusal to pay within the time required. Any mem- Members ber or members of said company who neglects or refuses to pay excluded his or their part of any assessment, or for any other reason satis- payment of factory to the directors or executive committee, may be excluded ment. (by a majority of the directors or executive committee as the by may be for non assess |