Page images
PDF
EPUB

CHAP. II.

tional se

Williams v. Babcock, 25 id. 109; Otis v. Harrison, 36 id. 210; Hyatt v.
Whipple, 37 id. 595 ; Cooper v. Shaver, 41 id. 151 ; Sands v. Annesley, 56
id. 598; Sands v. Sanders, 26 N. Y. 239; Sands v. Sanders, 28 id. 416 :
Jackson v. Roberts, 31 id. 304; Sands v. Lilienthal, 46 id. 540 ; Jackson v.
Van Slyke, 52 id. 645 ; Sands v. Son, 56 id. 662; Sands v. Graves, 58 id. 94;
Osgood v. Toole, 60 id. 475; Sands v. Shoemaker, 2 Keyes, 268 ; Sands v
Sanders, 25 How. 88.

§ 14. It shall be lawful for any mutual insurance company, To unite established in conformity with the provisions of this act, to unite as she capital a cash capital to any extent, as an additional security to its mem

curity. bers, over and above their cash premiums and premium notes ; drovided, that such cash capital shall not be less than thirty thousand dollars, and which additional cash capital shall be loaned and invested as provided in the eighth section of this act; and the company may allow an interest on such cash capital, and a participation in its profits, and prescribe the liability of the owner or owners thereof to share in the losses of the company, and such cash capital shall be liable as the capital stock of the company in the payment of its debts; provided, that such cash capital shall in all cases be paid in at the organization of the company, and satisfactory evidence of that fact furnished to the superintendent of the insurance department. Any existing joint-stock fire insurance company, and any com- Insured

may participany formed under this law, may (the written consent of the pate in

profits. holders of three-fourths in amount of the stock first being had), permit the insured to participate in the profits of the business of such company, and provide how far any scrip, issued to the insured for such profits, shall be liable for the losses to be sustained; and any company so doing, whenever an amount not less than one hundred thousand dollars has been accumulated and scrip so issued therefor, may, with the written consent of the holders of three-fourths in amount of the stock, pay off and cancel an amount of the original cash capital equal to one-half of the accumulated profits, and so may continue from time to time until the whole amount of the original cash capital is paid off, provided, Proviso that before any portion of such capital stock shall be so paid off, proof shall be exhibited to the said superintendent that an amount of accumulated profits has been realized, scrip issued therefor, and investments made thereof, pursuant to the provisions of the eighth section of this act, at least equal to double the amount so desired to be paid off and canceled, and the said superintendent shall also first certify that he is satisfied with such proof.

CHAP. II. Face of

pear on.

Suits may be maintained by corporation

members or

ers and

for debts.

§ 15. Every fire and inland navigation insurance company what to ap-hereafter organized shall, it it be a mutual company, embody the

word “mutual” in its title, which shall appear on the first page of every policy and renewal receipt; and every company doing business as a cash stock company, shall, upon the face of its policy, in some suitable manner express that such policy is a stock policy.

8 16. Suits at law may be maintained by any corporation, formed under this act, against any of its members or stockholders

for any cause relating to the business of such corporation, also against suits at law may be prosecuted and maintained by any member or stockhold. stockholder against such corporation for any losses which may vice versa. have accrued, if payment is withheld more than thirty days after

such losses may have become due; and any member or stockholder, not individually a party to such suits, may be a witness

therein. Trustees 8 17. The trustees and corporators of any company organized rators to be under this act, and those entitled to a participation of the profits responsible

of such company, shall be jointly and severally liable for all debts or responsibilities of such company, until the whole amount of the capital of such company shall have been paid in and a certificate thereof recorded, as hereinbefore provided. Notes taken in advance of premiums under this act are not to be considered debts of the company in determining whether a company is insolvent, but are to be regarded as-assets of the company.

Cooper v. Shaver, 41 Barb. 155. Joint-stock 8 18. Any existing joint-stock fire insurance company hereto

fore incorporated under the laws of this state, and any company panies heretofore ex- organized under this act, having a capital of at least one hundred isting may

and fifty thousand dollars, may, without increasing its capital at of this act. any time, within two years previous to the termination of its Manner uf charter, after giving notice, at least once a week for six weeks proceeding

successively in a newspaper published in the county where such company is located, of such intention, and with a declaration, under its corporate seal, signed by the president and two-thirds of its directors, of their desire for such extension, extend the term of its original charter to the time specified in the twenty-sixth section of this act, by altering and amending the same so as to accord with the provisions of this act, and filing a copy of such amended charter, with the declaration aforesaid, in the office of the

superintendent of the insurance department, whereupon the same proceedings shall be had as are required in the lenth section of this

fire insur ance com.

avail themselves

CHAP. II.

Mutual

act; and any mutual insurance company, heretofore incorporated or organized under any of the laws of this State, having surplus may be assets aside from premium and stock notes, sufficient to re-insure stock comall its outstanding risks, after having given notice once a week

panies. for six weeks of their intention and of the meeting hereinafter provided for in the State paper, and in a newspaper published in the county where such company is located, may, with the con- Manner of sent of two-thirds of the corporators or members present at any

proceeding, regular annual meeting, or at any special meeting duly called for the purpose, or with the consent in writing of two-thirds of the corporators or members of such company, and the consent, also, of three-fourths of the trustees or directors (unless otherwise provided in the charter), become a joint-stock company, by conforming its charter to and otherwise proceeding in accordance with this act, and every member of such company, on the day of said annual or special meeting, or the date of said written consent, shall be entitled to priority in subscribing to the capital stock of said company, for one month after the opening of the books of subscription to such capital stock, in proportion to the amount of cash premiums paid in by such members on unexpired risks in force on the day of said annual or special meeting, or the date of said written consent; and every company sg extended or changed shall come under the provisions of this act, in the same manner as if it had been incorporated originally under this act. Every mutual Mutual ininsurance company heretofore incorporated under the laws of this companies

heretofore State, and doing business with a capital, in premium notes, of at

existing least fifty thousand dollars, may at any time within two years pre- themselves vious to the termination of its charter, without increasing its capital, after giving notice at least once a week for six weeks successively in a newspaper published in the county where such company is located, of such intention, and with a declaration, under its corporate seal, signed by its president and two-thirds of its directors, of their desire for such extension, extend the term of its original charter to the time specified in the twenty-sixth section of this act, by altering and amending the same so as to accord with the

Manner of provisions of this act, and filing a copy of such amended charter, proceeding with the declaration aforesaid, in the office of the superintendent benefit of of the insurance department, whereupon the same proceedings shall be had as are required in the tenth section of this act, except as to its capital, which shall be certified to be in accordance with the provisions of this section, applicable to the reorganization of

surance

may avail

of this act.

this act.

crease cap

CHAP. II. mutual insurance companies. Every mutual insurance company

so extended shall, except as to the amount of its capital, come under the provisions of this act in the same manner as if it had been incorporated originally under this act. (As amended by Laws of 1854, chap. 369, $ 2, and by Laws of 1862, chap. 367, 8 4.]

(See Laws of 1867, chap. 937, post, p. 227.) Company

§ 19. Any existing fire insurance company, and any company may in

formed under this law, may at any time, with the written consent change

of the superintendent of the insurance department, increase the names, etc.

amount of its capital stock, change its name, or avail itself of any powers conferred by the provisions of this act

or any amendments thereto, after notice given once a week for six weeks in the State paper, and in any newspaper published in the county where such company is located, of such intentions, with the written consent of three-fourths in amount of its stockholders, unless otherwise provided in its charter, or, if a mutual company, with the unanimous consent of its trustees, unless otherwise provided in its charter, by altering or amending its charter in this respect, and filing such written con: sent of said superintendent, a copy of its charter so amended, together with a declaration under its corporate seal, signed by its president and directors, of their desire so to do, with such written consent of three-fourths in amount of its stockholders, or the unanimous consent of the trustees, as aforesaid, to such increase, change of name or acquisition of such additional powers, in the office of the said superintendent, and upon the same proceedings being had as are required by the tenth section of this act. And whenever any company formed under this law shall have accumulated, and be in possession of a fund in addition to the amount of its capital stock and all actual outstanding liabilities in excess of one-half of the amount of all premiums on risks not terminated, such company may increase its capital stock from such fund, and distribute said increase pro rata to the stockholders of such company, provided always that such increase shall be equal to at least twenty-five per cent of the original capital stock of said company, and shall have been approved by the superintendent of the insurance department and authorized by at least three-fourths of the board of directors of said company, and provided, also, that any company may hereafter make and declare a dividend as provided by the provisions of the general insurance act. [As amended by Laws of 1870, chap. 476, § 1, and by Laws of 1875, chap. 208, § 1.]

8 20. Such companies as may have been incorporated or ex

act.

of condi

CHAP. II. tended under the “act to provide for the incorporation of insur

Companies ance companies," passed April 10, 1849, are hereby brought under formed

under act all the provisions of this act, except that their capitals may continue of 1849 of the amounts named in their respective charters during the ex- under this isting term thereof, and are also entitled to all the privileges granted by said charters.

Williams v Babcock, 25 Barb. 113; Thomas v. Whallon, 31 id. 176; Otis v. Harrison, 36 id. 210, Hyatt v. Whipple, 37 id. 595.

§ 21 All companies incorporated or extended under this act Bodies corshall be deemed and taken to be bodies corporate and politic, in politic.

porate and fact and in name, and shall be subject to all the provisions of the Revised Statutes, and acts supplemental thereto, in relation to corporations so far as the same are applicable. Devendorf v. Beardsley, 23 Barb. 656.

$ 22. It shall be the duty of the president or vice-president and to make secretary of each company organized under this act, or incorpora statement ted under any law of this State, annually, on the first day of Janu- tion of

company ary, or within one month thereafter, to prepare, under their own oath, and deposit in the office of the superintendent of the insurance department, a statement of the condition of such company on the thirty-first day of December then next preceding, exhibiting the following facts and items, in the following form, namely: First. The amount of the capital stock of the company,

Contents of SECOND. The property or assets held by the company, speci- stateme fying:

1. The value, or nearly as may be, of the real estate held by such company.

2. The amount of cash on hand and deposited in banks to the credit of the company, specifying in what banks the same are deposited.

3. The amount of cash in the hands of agents and in course of transmission.

4. The amount of loans secured by bonds and mortgages, constituting the first lien on real estate, on which there shall be less than one year's interest due or owing.

5. The amount of loans on which interest shall not have been paid within one year previous to such statement,

6. The amount due the company on which judgments have been obtained.

7. The amount of stocks of this State, of the United States, of any incorporated city of this state, and of any other stocks owned

statement,

« PreviousContinue »