Gambar halaman
PDF
ePub

notify every person holding a risk in such company, personally, by an agent, or by letter directed to his usual postoffice address, of the amount of such loss, and the sum due from him, as his share thereof, and of the time and to whom such payment is to be made; but such time shall not be less than thirty days, nor more than ninety days, from the date of such notice.

SEC. 14. An action may be brought against any member of such company who shall neglect or refuse to pay any assessment made upon him by the provisions of this Act, or other liabilities due the company, and the directors of any company so formed who shall willfully refuse or neglect to perform the duties imposed upon them by law or by the by-laws of the company shall be liable in their individual capacity to the person sustaining such loss. An action may also be brought and maintained against any such company by members thereof for losses sustained if payment is withheld after the amount of such losses have been determined, and is due by the terms of the policy.

SEC. 15. It shall be the duty of the secretary to prepare an annual statement showing the condition of such company on the thirty-first day of December, and present the same at the annual meeting.

SEC. 16. Any member of such company may withdraw therefrom by surrendering his policy for cancellation at any time while the organization continues the business for which it was organized, by giving notice in writing to the secretary thereof, and paying his share of all claims that may exist against such company; provided, that the company shall have power to cancel or terminate any policy by giving the insured five days' written notice to that effect, and returning to him any excess of premium he may have paid during the term of the policy, over the cost of his insurance, as measured by the rates of standard fire insurance companies doing business in this State.

SEC. 17. It shall be the duty of the president and secretary, within thirty days after the first day of January in each year, to prepare, under their own oath, and transmit to the Insurance Commissioner, a statement of the condition of the company on the last day of the month next preceding the annual meeting. If, upon examination, the Insurance Commissioner finds that such company is doing business correctly, in accordance with the provisions of this Act, he shall thereupon furnish the company his certificate, which shall be deemed authority to continue business during the ensuing year, subject, however, to the provisions of this Act. For such examination and certificate the company shall pay one dollar. Each company shall pay, at the time of organization, five dollars to the Insurance Commissioner, for all services which he shall render in the matter of organization.

SEC. 18. Any such company may be proceeded against and dissolved in the manner and upon the same conditions as provided in case of other insurance companies incorporated in this State.

Sec. 19. All Acts and parts of Acts in conflict with this Act are hereby repealed.

MUTUAL FIRE INSURANCE COMPANIES.

An Act providing for the organization and management of

mutual fire insurance companies.

[Approved March 19, 1907.]

The people of the State of California, represented in Senate and

Assembly, do enact as follows:

SECTION 1. Private corporations may be formed for the purpose of insuring the property of their members in accordance with and on the properties designated in this Act, and not otherwise. Such corporations may be formed and organized as provided in part four, division first, of the Civil Code of the State of California.

SEC. 2. Any such corporation may be formed for the purpose of transacting fire insurance business and in one of the following lines, to wit:

1. Lumber yards, factories and mills.

2. Mercantile risks, dwelling houses, churches, schools and farm buildings, and contents.

SEC. 3. Each person or corporation accepting a policy in any such mutual insurance corporation shall thereby become a member of such corporation and shall be liable for his pro rata share of losses and operating expenses, except as hereinafter provided.

SEC. 4. No policy shall be issued by such corporation until not less than two hundred thousand dollai's of insurance, in not less than two hundred separate risks, have been subscribed for and entered on its books, and until it shall have a cash reserve fund of fifty thousand dollars. No officer or other person whose duty it is to determine the character of risks, and upon whose decision the application shall be accepted or rejected by such corporation, shall receive as any part of his compensation a commission upon the premiums, but his compensation shall be a fixed salary and such share of the net profits as the directors may determine.

Sec. 5. Every member shall be notified of the time and place of holding its meeting by a written notice, or by an imprint upon the back of each policy receipt or certificate of renewal, and shall be entitled to a vote as provided by law.

SEC. 6. Such company may issue policies provided the term of any policy does not exceed the time limited for the existence of the charter but not for an amount in excess of twenty-five hundred dollars on any one risk; provided, however, that one thousand dollars additional insurance may be written on any one risk for each million dollars of total insurance outstanding on the books of the company in excess of one million dollars ; provided further, that two or more buildings situated in the same city block, or separated by less than one hundred feet, shall be deemed to be one risk.

SEC. 7. When any number of citizens or corporations not less than one hundred owning insurable property in this State desire to insure in a mutual company incorporated under the laws of some other State, they shall petition the Insurance Commissioner to grant such company a license to transact business in this State. Such corporation before being licensed in this State must file with the Insurance Commissioner its last annual statement signed by its president and secretary under oath, showing that the company is solvent and possessed of not less than two hundred thousand dollars bona fide premium notes or contingent liabilities of its members, and not less than seventy-five thousand dollars available cash assets over and above all liabilities or losses reported, expenses, taxes and reinsurance on all outstanding risks estimated at fifty per cent of the premiums received and receivable on all risks. Such company must also file a copy of its articles of incorporation and a certificate from the Insurance Commissioner of the State in which such company is incorporated, in which certificate the Insurance Commissioner must certify that such company's annual statement is correct. Any mutual insurance company incorporated under the laws of any other State, after complying with the provisions of this section shall be granted a license by the Insurance Commissioner of this State, granting such company full power to transact business under this Act.

SEC. 8. Each policyholder shall be liable to pay his proportionate part of any assessment which may be levied by the company, in accordance with the law and his contract, on account of losses and expenses incurred while he is a member. Mutual insurance companies shall charge and collect upon its policies the full premium in cash or notes, absolutely payable, and may,

in its by-laws, fix the liability of its members for the payment of the losses and expenses not provided for by its cash funds; provided, that the liability of a member shall not be less than a sum equal to the cash premium written in his policy. · The total amount of the liability of a policyholder shall be plainly and legibly stated upon the back of each policy.

SEC. 9. Whenever such company is not possessed of cash funds above its permanent cash reserve fund hereinafter provided, sufficient for the payment of accrued losses and expenses, it shall make an assessment for the amount needed to pay such losses and expenses, upon its members liable to assessment therefor, in proportion to their several liabilities. The. company shall cause to be recorded in a book kept for that purpose, the order for such assessment, together with a statement which shall set forth the condition of the company at the date of the order, the amount of its cash assets and of its premium notes, or other contingent funds liable to assessment and the amount the assessment calls for. Such record shall be made and signed by the directors who voted for the order, before any part of the assessment is collected, and any person liable to assessment may inspect and take a copy of the same.

SEC. 10. Any member of any such corporation may withdraw at any time by surrendering his policy or certificate of insurance to the corporation, and giving thirty days' written notice of his intention to withdraw and by paying his share of all losses which shall have accrued by the end of the time specified in the notice, and all assessments due, accrued, or pending at the time of his withdrawal, but the company may retain the rate usually charged by standard insurance companies for a short-term policy; provided, also, that the corporation shall have power to cancel or determine any policy by giving the insured five days' written notice to that effect, and returning to the insured his pro rata of the unearned premium.

SEC. 11. No mutual fire insurance corporation formed under this Act may make any dividend except from profits in hand after retaining unimpaired :

1. The sum of fifty thousand dollars.

2. A fund equal to one half the amount of all premiums on risks not terminated at the time of making such dividend.

3. A sufficient sum to pay all losses reported, or in course of settlement, and all liabilities for expenses and taxes.

SEC. 12. Nothing in this Act shall be construed to restrict or affect the provisions of “An Act to provide for the organization and management of county fire insurance companies,” approved April 1st, 1897.

Sec. 13. The general provisions applicable to all corporations as expressed in part four of division first of the Civil Code of the State of California, also all provisions of the Political Code so far as compatible with the provisions of this Act, are hereby made applicable to corporations provided for by this Act.

MUTUAL BENEFICIAL AND RELIEF INSURANCE

ASSOCIATIONS.

The following Act was codified by the Legislature of 1905 (see Sections 452a to 453 of the Civil Code), but is placed herein for the reason that, under Section 288 of the Civil Code, it is applicable to all corporations formed under its provisions :

An Act relating to mutual beneficial and relief associations.

[Approved March 28, 1874.] The people of the State of California, represented in Senate and

Assembly, do enact as follows: SECTION 1. Associations may be formed for the purpose of paying to the nominee of any member a sum upon the death of said member, not exceeding three dollars for each member

« SebelumnyaLanjutkan »