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assured by said corporation for all losses they may sustain in the subject matter insured, agreeable to the contract of insurance and of the policy effected with said corporation. And said corporation may cause themselves to be reinsured, when deemed expedient, against any risk or risks taken by them.
Sec. 7. That it shall be lawful for said corporation to loan their funds and moneys, or any part thereof, upon bond and mortgage of unincumbered real estate, or upon personal or other approved securities, and upon state and bank stocks, and upon bottomry and respondentia and otherwise, and may call in and reinvest the same at pleasure, under the provisions of this section of their act.
Sec. 8. That said corporation may take the promissory notes or obligations of the insured, either in whole or in part, for the premium of insurance, at the discretion of the board of directors of said company, and may require such other or further security for such note or notes or the payment thereof, as shall be deemed expedient for the better security of said corporation.
SEC. 9. That all policies of insurance which shall be made by this company in pursuance of this act may be made on such terms and conditions and for such period or periods of time, and confined to such property and risks, authorized by this act to be taken and insured, as shall from time to time be ordered and directed by the board of directors of said corporation, or the by-laws thereof. And if at any time there shall be a just claim on this company for losses sustained, to a greater amount than they have funds on hand to discharge, in such case the directors for the time being shall immediately assess such deficiency in a ratable proportion on all persons or their representatives, who are indebted by note or other obligations to this company, given or furnished toward the guarantee capital or fund, herein after authorized to be raised, according to the amount of each note or obligation; (provided that such assessments shall not exceed the amount of the aforesaid notes or other obligations or securities respectively ;) of which assessment written or printed notice shall be given to each person so assessed as aforesaid, which notice shall be signed by the secretary of said corporation, and shall state the amount required to be paid by the person or persons so assessed and notified. And each and every person or persons, or his or their legal representatives so assessed and notified shall pay such assessment to said corporation within thirty days after said notification, and in default thereof, shall forfeit all right and claims to which he, she or they otherwise might or would obtain or be entitled, be no longer a member of said corporation, and shall be liable to the amount of such assessment and for all future assessments, with lawful interest thereon until paid, to be recovered by an action founded upon said note or other security, or by any other proper action with costs, before any court of competent jurisdiction; and said company may at any time, or from time to time, collect the whole or any part of the debts due them either upon such notes or other securities, or upon the notes or other obligations given for premiums of insurance according to the terms of such notes, obligations, securities and contracts respectively, and may by their directors adopt all such rules and regulations respecting the same, and the payment thereof, and the securities therefor, as they shall deem expedient; and all per
sons and parties affected by such rules and regulations shall be bound thereby.
SEC. 10. That all policies issued by said corp oration shall be, with or without the seal thereof, on being signed by the president or vice president, and countersigned by the secretary, obligatory and binding upon said corporation, according to the tenor and true intent of said policies.
Sec. 11. That all suits at law and in equity may be prosecuted and maintained by any member against said corporation, or by said corporation against any member thereof, and the members of said corporation may and shall be competent witnesses in every such suit.
Sec. 12. In case any insured named in any policy or contract of insurance made by said corporation, shall sell and convey or assign the subject matter insured, during the period of time for which it is insured, it shall be lawful for such insured to assign and deliver to the purchaser or assignee such policy or contract of insurance, and the same, together with all the rights and privileges to which the party originally insured may or shall be entitled, shall enure to the benefit of such purchaser or assignee, and in every respect be as effectual as though the same had been by said corporation issued and delivered originally to said purchaser or assignee. Provided always, that before any loss happens, such purchaser or assignee shall obtain the consent of said corporation to such assignment, and shall obtain said assent, signed by the president, vice president, secretary or other authorized agent of said corporation, to be endorsed on or annexed to said policy or contract of insurance; and shall also comply with all the rules, regulations and requirements of the board of directors in respect to such assignment and the payment or security of the premium of insurance given for such insurance, and not otherwise.
Sec. 13. It shall be lawful for the board of directors of said corporation from time to time to form or establish a guarantee capital or fund for the better security of the persons or parties insured by said corporation, not exceeding one hundred and fifty thousand dollars at any one time, either in cash, approved notes or other securities, or partly in each, to be furnished for such period or periods, and repaid at such time or times as the parties furnishing the same, and said directors, shall mutually agree upon and the same apply, negotiate or assess, for the purpose only of paying claims against said company; and if it shall at any time become necessary for said board of directors to apply, assess, negotiate or collect any of said moneys, notes or other securities, or any part thereof, the amount thus appropriated shall be refunded or repaid to the furnisher thereof out of the first surplus receipts of said company, with interest at the rate of six per cent. per annum. And said company may allow and pay annually the furnishers of such moneys or securities, or signers of such notes, interest upon the same, at a rate to be determined upon between the board of directors and the person or persons furnishing or signing the same, not exceeding six per cent. per annum; and the persons or parties so furnishing said guarantee capital or fund, shall be entitled to participate in the profits of the company, in such mode and form, and to such extent, as shall be prescribed by said board of directors and mutually agreed upon as aforesaid.
SEC. 14. It shall be the duty of the board of directors of said company, to cause to be made during the month of January in each year a full esti
mate of the profits of said company, and true statement of its income, expenses, losses and investments for the previous year; and if at any such time upon such estimate, which shall be conclusive upon the members of said company, there shall be a surplus over and above the claims and demands against said company, including the interest and the proportion of the profits of said company, to which the persons and parties furnishing said guarantee capital or fund, if any, may or shall be entitled. The board of directors shall declare a dividend out of the same to the qualified members of said company, upon such principles in respect to the members and the form and manner thereof, and in such proportions, and to be paid or credited either in whole or in part, and evidenced in such way and manper, either by certificate or otherwise, and subject to such terms and conditions and liable to such losses and deductions, and to such rights, claims, liens and incnmbrances, and redeemable at such time or times, and in such proportions, and in such way and manner as the rules and regulations of said company or the board of directors thereof shall require, prescribe or provide.. And all such estimates, statements, dividends and certificates shall be made, done and managed in all respects in such form and way as shall be deemed expedient by said board of directors, and the rules and regulations aforesaid shall require and prescribe, a copy of which estimates and statements shall be delivered to each member of said company on demand.
Sec. 15. Every member of said company shall at all times have the liberty to inspect the books and records of said company; and in case of any suit against or in favor of said company, any court of record shall have power to compel, by any proper order, the production of the books and records of said company,
SEC. 16. It shall be the duty of said company to make an annual report, containing a full and accurate statement of its condition and affairs, to the general assembly of this state.
Sec. 17. Said company shall not be entitled to banking privileges, nor shall anything in this act contained be construed to grant such privileges.
Sec. i8. This act shall be subject to alteration, amendment or repeal at the pleasure of the general assembly.
INCORPORATING THE SOUTHPORT FIRE INSURANCE COMPANY.
Resolved by this Assembly, Sec. 1. That Augustus Jennings, Benjamin Sherwood, John Meeker, P. Sheffield, Austin Perry, Allen Nichols, W. B. Meeker, Jr., D. Bradley, Sturges Nichols, Stephen Bulkley, F. Marquand, Charles Perry, Francis D. Perry, E. C. Sherwood, Jonathan Bulkley, Joseph H. Furniss, Timothy Williams, Aaron Jennings, Jonathan Bangs, Edward J. Alvord, A. D. Wood, J. Allen, Julius Pike, E. Sher
wood, E. Jessup and Andrew Bulkley, and their successors, be and they are hereby incorporated and made a body politic by the name of the Southport Fire Insurance Company."
SEC. 2. The said corporation may sue and be sued, plead and be impleaded in all courts of justice; they may have and use a common seal, and alter the same at pleasure, and they may ordain and execute such bylaws for the regulation of its affairs as may be deemed necessary; provided, the same are not in violation of this act, nor of the laws of this state or of the United States.
SEC. 3. The said corporation may issue policies of insurance against loss by fire, on the plan of mutual insurance, and the persons so insured shall be liable for no greater sum than the amount of their respective premiums, and not less than twenty per cent. of such premiums shall be paid in cash at the time such policies are delivered, and the remainder shall be converted into a note of hand, payable to the order of the president of the company. And all of said notes shall be liable to assessment from time to time, to meet losses which exceed the cash surplus and accumulations of the company. Provided, however, that such notes shall not be assessed or put in the lists for taxation.
Sec. 4. Each and every policy issued by the said company shall be signed by the president and secretary, and shall become binding upon the adjustment of the premiums as provided in section third; and the said policies shall in event of loss become due and payable according to the tenor thereof.
Sec. 5. Each and every person insured by the said company, on the plan of mutual insurance, shall be entitled to vote at the annual meetings of the insured, for the election of directors, and every policy shall entitle the holder thereof to one vote at such meetings. The annual meetings for the election of directors shall be held on the first Wednesday in February, but in case such meeting shall fail to be held, the directors and officers shall hold office until such meeting is held and such election is made.
Sec. 6. It shall not be lawful for said company to issue policies of insurance on the plan of mutual insurance, except on farm buildings and their contents, dwelling houses, churches and store houses, in which fire is not used, and risks shall not be taken on buildings which stand within fifty feet of any buildings already insured or proposed to be insured by the said company
Sec. 7. The said company may issue policies on the plan of mutual insurance for any term not exceeding five years from the date thereof, and every person holding such policy shall thereby become a member of the company and participate in the profits. And it shall be the duty of the directors to ascertain the expenses, losses and profits of the company, annually, in the month of January, and exhibit the same to the members in printed form at the annual meetings.
Sec. 8. It shall be lawful for the said company to unite a stock capital and create a stock department, for the purpose of insuring goods, wares and merchandise, buildings, vessels, cargoes, and generally such property as is liable to destruction or damage by fire or water; and every policy issued under such department, shall be signed by the president and secretary of the company, and shall be designated in its title as a stock policy. Every such policy shall also state the amount of capital set apart or estab
lished for the purpose of paying the same, and shall exempt the mutual department from all liability thereunder.
Sec. 9. The said stock department shall not be organized until the mutual department has been in operation at least one year, nor until a majority of the directors at a meeting called for the express purpose,
have decided that it is deemed expedient for the interest of the company to establish such stock department. And when a majority of the directors have so decided, it shall be lawful for them to open books to receive subscriptions to the capital stock, and when bona fide subscriptions have been made, under such rules and regulations as the directors shall prescribe, to the amount of fifty thousand dollars, the said directors shall call a meeting of the subscribers for the collection of ten per cent. of the amount subscribed, and the election of three directors, who shall be added to and serve with the directors of the mutual department.
Sec. 10. Every subscriber to the capital stock shall be required to pay in ten per cent. of the amount he shall subscribe, as provided in section ninth, and for the remainder of his stock he shall give his obligation and become liable to pay such part thereof, from time to time, as the rules of subscription shall require; and such notes shall be liable for the losses of the said stock department, but shall not be liable for losses under the mutual department.
Sec. 11. Each department of the said company shall be kept in separate books of account, and neither shall be liable for the other, and their policies shall be numbered separately in separate books of entry,
Sec. 12. The stockholders shall share pro rata the profits of the said stock department after the payment of the losses and expenses of said department, and paying the mutual department such per cent. for the services of such department as shall be prescribed in the rules and regulations under which the capital stock is subscribed. But no dividend shall be declared or paid unless there shall have been realized a profit over and above the items mentioned and the premiums not earned. The annual meetings of the stockholders shall be held on the second Wednesday of February of each year, at which time it shall be the duty of the board of directors to submit a full statement of the accounts and condition of the department. Every stockholder shall be entitled to one vote on every share of one hundred dollars.
SEC. 13. The persons named in the first section shall constitute the first board of directors, and it shall be lawful for them, or a majority of them, to elect by ballot a president and secretary, and in case any decline to serve, the remaining members of the board may elect to fill such vacancy; and it shall be lawful thereafter for all vacancies be filled in like manner.
SEC. 14. The capital accumulated in cash, and the capital stock paid in belonging to either department of the said company, shall be invested in mortgages upon real estate previously unincumbered and improved, which is worth at least double the amount loaned thereon, or in state, city or bank stocks, or in railroad bonds, all of which shall be interest-paying at the time of purchase.
Sec. 15. The said company may, if it shall be deemed expedient, increase the capital of the stock department, if it shall be organized, to two hundred thonsand dollars; and the board of directors ehall make an annual statement of their affairs to the legislature annually.