L. 1840, Chap. 80 - An Act in respect to insurances for lives for the benefit of married women. PASSED April 1, 1840. (The amending acts mentioned below cite this act as being entitled "An act for the benefit of married women in insuring the lives of their husbands.") CHAP. III. insure life Insurance representa creditors. SECTION 1. It shall be lawful for any married woman, by herself, Wife may and in her name, or in the name of any third person, with his as- of husband. sent, as her trustee, to cause to be insured for her sole use the life of her husband, for any definite period, or for the term of his natural life; and in case of her surviving such period or term, payable to the sum or net amount of the insurance becoming due and her free pay- from able, by the terms of the insurance, shall be payable to her to claims of and for her own use, free from the claims of the representa- tives and tives of the husband, or of any of his creditors, or any party or Exception. parties claiming by, through or under him. But when the premium paid in any year out of the property or funds of the husband shall exceed five hundred dollars, such exemption from such claims shall not apply to so much of said premium so paid as shall be in excess of five hundred dollars, but such excess, with the interest thereon, shall inure to the benefit of his creditors. [As amended by Laws of 1858, chap. 187, § 1; by Laws of 1866, chap. 656, § 1, and by Laws of 1870, chap. 277, § 1.] Moehring v. Mitchell, 1 Barb. Ch. 264; McCord v. Noyes, 3 Bradf. 139; Durian v. Central Verein, etc., 7 Daly, 168; Thompson v. American Tontine Life and Savings Ins. Co., 46 N. Y. 674; Barry v. Mutual Life Ins. Co., 49 How. 504; Hull v. Hull, 62 id. 100; Fowler v. Butterly, 53 id. 471, affirmed, S. C., 78 N. Y. 68; Barry v. Brune, 8 Hun, 395, affirmed S. C, 71 N. Y. 261; Leonard v. Clinton, 26 Hun, 288. cies may dered. § 2 Any policy in favor of a married woman, or of her and How poliher children, or assigned in her, or in her and their favor, on be surrenwritten request of said married woman, duly acknowledged before a commissioner of deeds, or other officer authorized to take acknowledgments of deeds, in the same manner as required by law, to pass her dower right in lands of her husband, and on the written request of the policyholder may be surrendered to and purchased by the company issuing the same in the same manner as any other policy. And such married woman may, in case she have no child or children born of her body, or any issue of any posed of by child or children born of her body, dispose of such policy in and deed. by a last will and testament, or any instrument in the nature of 'a last will and testament, or by a deed duly executed and acknowledged before an officer authorized to take ackowledgments of May be dislast will or CHAP. III. deeds, in the same manner as required by law to pass her dower right in lands of her husband, which disposition lawfully made shall invest the person or persons to whom such policy shall have been so bequeathed, or granted and conveyed, with the same rights in respect thereto as such married woman would have had in case she survived the person on whose life such policy was issued, and such legatee or grantee shall have the same right to dispose of such policy as herein conferred on such married women. [As amended by Laws of 1858, chap. 187, § 2; by Laws of 1862, chap. 70, § 1; by Laws of 1866, chap. 656, § 2, and by Laws of 1873, chap. 821, § 1.] Eadie v. Slimmon, 26 N. Y. 9; Wilson v. Lawrence, 13 Hun, 238, affirmed, S. C., 76 N. Y. 585; Brummer v. Cohn, 58 How. 239, affirming S. C., 57 id. 386; 6 Abb. N. C. 409; Brummer v. Cohn, 86 N. Y. 11; S. C., 62 How. 171; De Jorge v. Goldsmith, 46 N. Y. Supr. (14 J. & S.) 131; Smille v. Quinn, 25 Hun, 332; Mutual Life Ins. Co v. Terry, 62 How. 325; Leonard v. Clinton, 26 Hun, 288; Living v. Domett, id. 150. (See Laws of 1879, chap. 248, § 1, post, p. 92, as to assignments of policies for benefit of married women.) L. 1851, Chap. 95 -- An Act in relation to all companies transacting the business of life insurance within this State. PASSED April 8, 1851. (This act was repealed by § 22, chap. 463 of the Laws of 1853 [ante, p. 70] but such repeal is declared as not affecting companies which have been incorporated thereunder, or under the act of April 10, 1849, chap. 308.) SECTION 1. Every company or association transacting the business of life insurance within the State of New York shall, on or before the first day of August in the year one thousand eight hundred and fifty-one, deposit with the comptroller of this State the sum of fifty thousand dollars, and on or before the first of February thereafter the further sum of fifty thousand dollars in public stocks of the United States, or of this State or 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 deposit, or in bonds and mortgages on unincumbered improved real estate situate within this State and worth at least fifty per cent more than the amount of the mortgage thereon; and the president or agent of every company shall annex to every mortgage his affidavit that said mortgage was made and taken in good faith for money loaned by the company which he represents to the amount therein named, and that no part thereof has been since paid or returned, and that he has reason to believe and does believe that the premises thereby mortgaged are worth at least fifty per cent more than the amount of the mortgage thereon; and the comptroller shall prescribe such regulations for ascertaining the title and value of such real estate as he may deem necessary: provided, however, that companies or associations established, or which may commence operations in this State by agents or otherwise, subsequent to the passage of this act, shall, before obtaining the certificate required by the act to provide for the incorporation of insurance companies, passed April tenth, eighteen hundred and forty-nine, deposit with the comptroller the sum of one hundred thousand dollars, in securities as hereinbefore specified. The People v. New England Life Ins. Co., 26 N. Y. 303. CHAP. III. how to be § 2. The comptroller shall hold said stocks, bonds and mort- Money, gages as security for policyholders in said companies, but shall, so held and long as any company so depositing shall continue solvent and shall managed. comply with all the requisites of the laws of this State applicable to such company, permit such company to collect the interest or dividends on its bonds and mortgages or stocks so deposited and from time to time to withdraw any of such securities on depositing with the comptroller other like securities, stocks or mortgages, the par value of which shall be equal to the par value of such as may be withdrawn; each mortgage so substituted to be also accompanied with an affidavit as required in the first section; and the comptroller shall prescribe such regulations for ascertaining the title and value of the real estate covered by the mortgage so substituted, as he may deem necessary. The People v. The New England Mutual Life Ins. Co., 26 N. Y. 303. companies. § 3. It shall not be lawful for any person to act within this Agents for State, as agent or otherwise in receiving or procuring application foreign for insurance in, or in any manner to aid in transacting the insurance business of any company or association, not incorporated under the laws of this State, until he has procured a certificate from the comptroller, that the company or association for which he acts, has complied with all the provisions of this act; and for every certificate so obtained the sum of three dollars shall be paid to the comptroller. be made by companies. 4. Every company or association organized under the laws of Reports to sister States or foreign governments, and transacting the business foreign of life insurance in this State, shall within three months after the passage of this act, and on or before the first day of February in CHAP. III. Affairs to be examined and report published. Proceed each year thereafter, furnish to the comptroller, and shall also publish in the State paper, daily for two weeks, a statement verified by the oath of their president or principal officer and a majority of their directors or trustees, showing the amount of paid up capital, and accumulations of which they are possessed, and specifying the securities in which they are invested, with the amount of each; the number of policies, and the amount of outstanding risks thereon; the several amounts received in premiums and from other sources for the current year; the amount of losses and expenses severally for the same period; the amount of claims remaining unpaid; the amount of fund reserved for re-insurance; the amount of premium notes held by the company on account of policies in force; the amount of premium notes, if any, held on account of policies upon which the risk has terminated; the whole number of policies issued or continued through their agencies in this State, the amount at risk thereon, and the gross amount of premiums received therefor in the year preceding their report; the number and amount of losses paid through their agencies during the same period. § 5. It shall be lawful for the comptroller, whenever he shall deem it expedient so to do, to appoint one or more competent persons, not officers of any life insurance company doing business in this State, to examine into the affairs of any life insurance company incorporated in this State, or doing business by its agents in this State, and it shall be the duty of the officers or agents of any company doing business in this State, to cause their books to be opened for the inspection of the 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 comptroller, or the person or persons so appointed by him, shall have power to examine under oath, the officers and agents of any company relative to the business of said company; and whenever the comptroller shall deem it for the interest of the public so to do, he shall publish the result of such investigation in one or more papers in this State. § 6. Whenever it shall appear to the comptroller, from examings upon ination made under his direction, that the assets are not sufficient to insure the outstanding risks of any company incorporated in this State, 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 of said company are not sufficient as aforesaid, the said court shall decree a dissolution of said company and a distribution of its effects, including the securities deposited in the hands of the comptroller. The supreme court shall have power to refer the application of the attorney-general to a referee to inquire and report upon the facts stated therein. CHAP. III. voke cer § 7. Whenever it shall appear to the comptroller from the report Comptroller, of the person or persons appointed by him, that the affairs of any when to reforeign company, as aforesaid, are in an unsound condition, he tificates. shall revoke all such certificates in behalf of such company, and shall cause a notification thereof to be published in the State paper for four weeks, and the agent of such company is, after such notice, required to discontinue the issuing of any new policy. Manner of business. § 8. When any company transacting the business of life insurance within the State of New York, shall desire to relinquish its closing business, the comptroller shall, on application of such company or association, under the oath of the president or principal officer, and secretary, give notice of such intention in the State paper at least twice a week, for six months; and after such publication he shall deliver up to such company or association, the securities held by him belonging to them, on being satisfied by the exhibition of the books and papers of such company or association and the examination aforesaid, and upon the oath of the president or principal officer, and secretary of the same, that all debts and liabilities of every kind are paid and extinguished, that are due or may become due upon any contract or agreement, made with any citizen of this State. § 9. Every violation of this act shall subject the party violating Penalties to a penalty of five hundred dollars for each violation, which shall be sued for and recovered in the name of the people, by the district attorney of the county in which the company or the agent or agent so violating shall be situated, and one-half of the said penalty, when recovered, shall be paid into the treasury of said county, and the other half to the informer of such violation; and in case of the non-payment of such penalty, the party so offending shall be liable to imprisonment for a period not exceeding six months, in the discretion of any court having cognizance thereof. |