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CHAP. II.

'broker"

or more persons to make examinations,

Books to be

or surveyor, or any other person or persons who shall, in

any manner, aid in transacting the insurance business of any insurance company not incorporated by the laws of this State (and the term Term broker or brokers, also used in this section, is hereby declared to defined. include all persons and firms whose business, in whole or in part, it is to negotiate for and place risks, deliver the policies covering the same, and collect the premiums therefor.) The provisions of this section shall apply to all foreign companies, partnerships, associations and individuals, whether incorporated or not. [As amended by Laws of 1862, chap. 6, § 1, and chap. 367, § 5; by Laws of 1874, chap. 331, $ 1. and by Laws of 1875, chap. 555, $ 1.)

Stevens v. Phænix Ins. Co, 24 How. 520.

§ 24. It shall be the duty of the superintendent of the insur- Superinance department, whenever he shall deem it expedient so to do, to appoint one appoint one or more persons, not officers of any fire insurance company doing business in this State, to examine into the affairs of any fire insurance company incorporated in this State or doing business by its agents in this State ; and it shall be the duty of

opened for the officers or agents of any such company doing business in this inspection. State to cause their books to be opened for the inspection of the ers. person or persons so appointed, and otherwise to facilitate such examination so far as it may be in their power to do ; and for that purpose the said superintendent, or person or persons so appointed by him, shall have power to examine, under oath, the agents may officers and agents of any company relative to the business of said ed under company; and whenever the said superintendent shall deem it for the interest of the public so to do, he shall publish the result investiga.. of such investigation in one or more papers in this State ; and to be pubwhenever it shall appear to the said superintendent, from such examination, that the assets of any company incorporated in this ciency asState are insufficient to justify the continuance in business of any proceedsuch company, he may direct the officers thereof to require the be had to stockholders to pay in the amount of such deficiency within such business of period as he may designate in such requisition, or he shall communicate the fact to the attorney-general, whose duty it shall then become to apply to the supreme court for an order requiring them to show cause why the business of such company should not be closed, and the court shall thereupon proceed to hear the allegations and proofs of the respective parties; and in case it shall appear to the satisfaction of said court that the assets and funds

When disof said company are not sufficient, as aforesaid, or that the inter- solution

Officers and

oath.

Result of

.

When defi.

company.

.

on refusal of stock holders to

CHAP. II.

ests of the public so require, the said court shall decree a dissolution of said company and a distribution of its effects. The supreme court shall have power to refer the application of the

attorney-general to a referee, to inquire into and report upon the When calls facts stated therein. Any company, receiving the aforesaid requiupon stock-sition from the said superintendent, shall forthwith call upon its holders.

stockholders for such amounts as will make its capital equal to the Action had amount fixed by the charter of said company; and in case any

stockholder of such company shall refuse or neglect to pay the pay amount amount so called for, after notice personally given or by advercalled for.

tisement, in such time and manner as the said superintendent shall approve, it shall be lawful for the said company to require the return of the original certificate 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 said superintendent, and the company paying for the fractional parts of shares; and it shall

be lawful for the directors of such company to create new stock create new and dispose of the same, and to issue new certificates therefor, to

an amount sufficient to make up the original capital of the comWhen di. rectors in. pany.

And it is hereby declared that, in the event of any addidavadually tional losses accruing upon new risks, taken after the expiration of

the period limited by the said superintendent in the aforesaid requisition for the filling up of the deficiency in the capital of such company, and before said deficiency shal! have been made up the directors shall be individually liable to the extent thereof. And if, upon such examination, it shall appear to the said superintendent that the assets of any company chartered on the plan of

mutual insurance under this act are insufficient to justify the conWhen di- tinuance of such company in business, it shall be his duty to pro

ceed in relation to such company in the same manner as is herein recompanies personally quired in regard to joint-stock companies; and the trustees or direc

tors of such company are hereby made personally liable for any losses which may be sustained upon

risks taken after the expiration of the period limited by the said superintendent for filling up the

deficiency in the capital, and before such deficiency shall have stock dur- been made up. Any transfer of the stock of any company organigation, not“ zed under this act, made during the pending of any such investi

Directors to

stock

rectors of mutual

liable for losses.

Transfer of

CHAP. II.

to release

When cer

for and re

gation, shall not release the party making the transfer from his liability for losses which may have accrued previous to the trans- the person fer. And whenever it shall appear to the said superintendent, same from

liability. from the report of the person or persons appointed by him, that the affairs of any company not incorporated by the laws of this tificates State are in an unsound condition, he shall revoke the certificates behalf of granted in behalf of such company, and shall cause a notification not incorthereof to be published in the State paper for four weeks; and laws of this the agent or agents of such company is, after such notice, required foreca. to discontinue the issuing of any new policy, and the renewal of any previously issued.

Stevens v. Phoenix Ins. Co., 24 How. 520; Matter of World's Safe Ins.
Co., 40 Barb. 499; Case of Mechanic's Fire Ins. Co., 5 Abb. Pr.444; Black
River Ins. Co. v. New York Life & Trust Co., 73 N. Y. 282.

(See Laws of 1873, ch. 851, 82, post. p. 36, and Laws of 1880, ch, 110, post, P. 47.)
$ 25. Every penalty provided for by this act (incurred outside

Penalties,

how sued of the limits of the city and county of New York) shall be sued for and recovered in the name of the people by the district-attor- covered, ney of the county in which the company or the agent or agents so violating shall be situated (or in which the act in violation was committed or suffered), and one-half of said penalty, when recovered, shall be paid into the treasury of said county, and the other half to the informer of such violation. Such penalties may also be sued for and recovered in the name of the people by the attorneygeneral, and when sued for and collected by him shall be paid into the State treasury. (And every penalty provided for by this Penalties act, when incurred within the limits of the city and county of New the city of

New York, York, shall go and be paid to the informer of such violation, who, on the giving, approval and filing of the bond hereinafter mentioned, may sue for and recover such penalty in the name of the people of this State on the relation of such informer; and every such suit or action shall be deemed a private suit or action, and which may be discontinued and the relator be nonsuited therein, as in private actions, the said relator being liable for the costs thereof in cases where the defendant succeeds in the action; and in such cases judgment shall be entered against such relator for costs in the same manner as if the relator was the nominal plaintiff; and in all cases wherein judgment is obtained against the party prosecuted, the judgment may be canceled and discharged by the relator, or the attorney for the relator, in the same manner as if such relator was the nominal plaintiff. Any citizen of this State, or body

incurred in

CHAP. II.

may be

informer and relator.

non-payment of

corporate created by or under the laws of this State, may be an inAny person

former, and shall be competent to act and stand as relator in any action for a penalty or penalties incurred under this act within the limits of the city and county of New York, on filing in the office

of the clerk of the court in which such action is to be prosecuted Bond. a bond executed by one or more sureties to the defendant in such

action in the penalty of five hundred dollars, to be approved by a judge or justice of said court, conditioned to pay all costs that may be recovered in such action against such relator in case the party prosecuted succeeds in the action, the sureties in which shall be residents of the city and county of New York and freeholders, and shall acknowledge the same before an officer authorized to take proof and acknowledgment of deeds, a copy of which bond shall

be served on the party prosecuted with the summons in such acImprison- tion.) In case of the non-payment of any of the penalties pro

vided for in this act, the party offending shall be liable to imprispenalty. onment for a period not exceeding six months in the discretion of

any court having cognizance thereof. [As amended by Laws of

1862, chap. 367, § 7, and by Lau's of 1875, chap. 555, $ 2.] Duration

§ 26. All companies incorporated or extended under this act may provide, in their charters, for not more than thirty years' duration; but the legislature may at any time alter, amend or repeal this act, and provide for the closing up of the business and affairs of any company formed under it. Nothing herein contained shall be construed to prevent subsequent extensions of the charters of

companies organized or extended under this act. Fees to be $ 27. Every county clerk shall demand and receive for every paid county

paper filed in his office under this act the sum of ten cents, to be accounted for and paid over to the county treasury, as provided by law with regard to other fees. [As modified by Laws of 1859,

chap. 366, SS 7 and 8, ante, pp. 6 and 7.] Repeal of § 28. So much of the act entitled “ An act to provide for the inpart of act of 1849.

corporation of insurance companies,” passed April 10, 1849, as relates to fire and inland navigation insurance is hereby repealed; but such repeal shall not affect or apply to any company or association which, at the date of the passage of the said act of June 25, 1853, had filed in the office of the secretary of State the declaration provided for by the third section of the aforesaid act of April 10, 1849. [As amended by Laws of 1853, chap. 528, § 1.]

Devendorf v. Beardsley, 23 Barb. 656,

of charter.

clerks.

CHAP. II. L. 1851, Chap. 188- An Act in relation to mutual aire insurance companies.

PASSED April 17, 1851. SECTION 1. No member of any mutual fire insurance company

Members of

mutual fire organized under the laws of this State shall be allowed to vote by insurance

companies proxy for a director or directors of any such company.

by proxy.

not to vote

L. 1853, Chap. 528–An Act to amend an act entitled

“An act to provide for the incorporation of fire insurance companies,” passed June twenty-five, eighteen hundred and fifty-three.

PASSED July 13, 1853. (SECTION 1. Amends Laws of 1853, chap. 466.) § 2. Any persons who have heretofore filed a declaration or com- Certain

joint-stock menced the publication of a notice of their intentions to form any fire insurjoint-stock fire insurance company, under the act entitled “An act panies may to provide for the incorporation of insurance companies," passed ized under April tenth, eighteen hundred and forty-nine, may proceed to or-25, 1853. ganize such companies under the act entitled “An act to provide for the incorporation of fire insurance companies," passed June twenty-fifth, eighteen hundred and fifty-three, without filing any new declaration of intention or publishing any new notice.

be organ

L. 1861, Chap. 92 – An Act in relation to inland navigation insurance companies.

PASSED March 27, 1861. SECTION I. Any and all insurance companies incorporated under Powers of

inland navthe provisions of the act entitled “ An act to provide for the incorpo- igation ration of insurance companies,” passed April tenth, eighteen hun-companies. dred and forty-nine, or under the provisions of the act entitled “An act to provide for the incorporation of fire insurance companies," passed June twenty-fifth, eighteen hundred and fifty-three; which shall, in the declaration and charter provided to be filed by the third sections of such acts, respectively, have expressed an intention to make insurance, or which shall have power to make insurance against loss or damage by the risks of inland navigation or transportation, shall have power to make insurance upon vessels, boats, cargoes, goods, merchandise, freights and other property against loss and damage by all or any of the risks of lake, river, canal and inland navigation and transportation.

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