6 commissioner a certificate to that effect, with license to resume 7 business. 1 foreign life 1894, 522, § 67. SECTION 67. A company organized under the laws of any other Admission of 2 of the United States for the transaction of life insurance may be companies. 3 admitted to do business in this commonwealth, if it has the requisite P. S. 119, 218. 4 funds of a life insurance company and, in the opinion of the 5 commissioner, is in sound financial condition and has policies in 6 force upon not less than one thousand lives for an aggregate amount 7 of not less than one million dollars. Any such company organized 8 under the laws of a state or government other than one of the 9 United States, in addition to the above requirements, shall have 10 and keep on deposit or in the hands of trustees, as provided in sec11 tions seventy-nine and eighty-one, in exclusive trust for the 12 security of its contracts with policy holders in the United States, 13 funds of an amount equal to the net value of all its policies in the 14 United States and not less than two hundred thousand dollars. tions pro 1887, 214, § 68. 1 SECTION 68. No life insurance company doing business in this Discrimina 2 commonwealth shall make or permit any distinction or discrimina- hibited. 3 tion in favor of individuals between insurants of the same class and 1894, 522, § 68. Op. A. G. Apr. 4 equal expectation of life in the amount or payment of premiums or 27, 1900. 5 rates charged for policies of life or endowment insurance, or in the 6 dividends or other benefits payable thereon, or in any other of the 7 terms and conditions of the contracts it makes; nor shall any such 8 company or any agent thereof make any contract of insurance, or 9 agreement as to such contract, other than as plainly expressed in 10 the policy issued thereon; nor shall any such company or agent 11 pay or allow, or offer to pay or allow as inducement to insurance, 12 any rebate of premium payable on the policy, or any special favor 13 or advantage in the dividends or other benefit to accrue thereon, or 14 any valuable consideration or inducement not specified in the policy 15 contract of insurance. crimination 1884, 235, § 1. 1887, 214, 69. 1894, 522, § 69. 1 SECTION 69. No life insurance company shall make any dis- Color dis 2 tinction or discrimination between white persons and colored forbidden. 3 persons wholly or partially of African descent, as to the premiums 4 or rates charged for policies upon the lives of such persons; nor 5 shall any such company demand or require greater premiums from 6 such colored persons than are at that time required by such company 7 from white persons of the same age, sex, general condition of 8 health and prospect of longevity, nor shall any such company 9 make or require any rebate, diminution or discount upon the 10 amount to be paid on such policy in case of the death of such 11 colored person insured, nor insert in the policy any condition, nor 12 make any stipulation whereby such person insured shall bind him13 self or his heirs, executors, administrators and assigns to accept any 14 amount less than the full value or amount of such policy in case 15 of a claim accruing thereon by reason of the death of such person 16 insured, other than such as are imposed upon white persons in 17 similar cases; and any such stipulation or condition so made or 18 inserted shall be void. 19 certificate Any such company which shall refuse the application of any such Physician's 20 colored person for insurance upon such person's life shall furnish upon refusal. 1884, 235, § 2. Surplus ac count in annual Medical exam- Reinsurance by domestic such person, on his request therefor, with the certificate of a 21 regular examining physician of such company who made the exami- 22 nation, stating that such refusal was not because such applicant is a 23 person of color, but solely upon such grounds of the general health 24 and prospect of longevity of such person as would be applicable to 25 white persons of the same age and sex. 26 SECTION 70. Every life insurance company doing business in this 1 commonwealth shall report in its annual statement the amount of 2 forfeitures and undivided surplus on lapsed or terminated policies 3 which it holds for or which is to accrue to the benefit of any class 4 of its policy holders, whether dividends thereof have been declared 5 or allotment made, and whether said amount is liable for obligations 6 of the company until distribution thereof is made; also the amount 7 of surplus accrued from and contributed by its policies in force 8 which has not been ordered to be distributed nor included in the 9 annual statement as dividends due to policy holders nor appropri- 10 ated to the permanent safety fund under the provisions of section 11 seventy-five. 12 SECTION 71. No life insurance company organized under the 1 laws of or doing business in this commonwealth shall enter into any 2 contract of insurance upon lives within this commonwealth without 3 having previously made or caused to be made a prescribed medical 4 examination of the insured by a registered medical practitioner. 5 Any insurance company violating the provisions of this section, 6 or any officer, agent or other person soliciting or effecting, or 7 attempting to effect, a contract of insurance contrary to the pro- 8 visions hereof, shall be punished by a fine of not more than one 9 hundred dollars for each offence. 10 SECTION 72. No domestic life insurance company shall reinsure 1 life companies. its risks except by permission of the insurance commissioner; but 2 P. S. 119, 152. may reinsure not exceeding one-half of any individual risk. 1874, 109, § 1. Rights of creditor and of beneficiary. 1844, 82. 1847, 248. 1854, 453, § 28. 1856, 252, § 42. G. S. 58, § 62. 1864, 197. P. 119, § 167. 1887, 214, 73. 1894, 120; 522, § 73. 3 6 SECTION 73. If a policy of insurance is effected by any per- 1 son on his own life, or on another life in favor of a person other 2 than himself having an insurable interest therein, the lawful bene- 3 ficiary thereof, other than himself or his legal representatives, shall 4 be entitled to its proceeds, against the creditors and representa- 5 tives of the person effecting the same; and the person to whom a policy of life insurance, issued subsequent to the eleventh day of 7 April in the year eighteen hundred and ninety-four, is made payable 8 may maintain an action thereon in his own name: provided, that, 9 subject to the statute of limitation, the amount of any premiums for 10 said insurance paid in fraud of creditors, with interest thereon, shall 11 inure to their benefit from the proceeds of the policy; but the com- 12 pany issuing the policy shall be discharged of all liability thereon 13 by payment of its proceeds in accordance with its terms, unless, 14 before such payment, the company shall have written notice by or 15 in behalf of a creditor, with specification of the amount claimed, 16 172 Mass. 498. claiming to recover for certain premiums paid in fraud of creditors. 17 Every policy of life insurance made payable to or for the benefit of 18 11 Allen, 224. 97 Mass. 359. 99 Mass. 154, 157, 342. 101 Mass. 564. 118 Mass. 219. 131 Mass. 294. 132 Mass. 408. 153 Mass. 544. 157 Mass. 47. 158 Mass. 227. 159 Mass. 575. 164 Mass. 302. 166 Mass. 189. 170 Mass. 369. Policies to married 1894, 120. etc., cies issued vious medical to be valid. 160 Mass. 386. Copy of appliattached to cer193,434. cation to be tain policies. 165 Mass. 462. 172 Mass. 280. 19 a married woman, or after its issue assigned, transferred or in any woman, ether 20 way made payable to a married woman, or to any person in trust benefit. 21 for her or for her benefit, whether procured by herself, her husband 22 or by any other person, and whether the assignment or transfer is 23 made by her husband or by any other person, shall inure to her 24 separate use and benefit, and to that of her children, subject to the 25 provisions of this section relative to premiums paid in fraud of 26 creditors and those of section seventy-six. In any claim arising Certain poli27 under a policy which has been issued in this commonwealth by any without pre 28 life insurance company, without previous medical examination, or examination 29 without the knowledge and consent of the insured, or, if said in- 1892, 372. 30 sured is a minor, without the consent of the parent, guardian or 162 Mass. 241. 31 other person having legal custody of said minor, the statements. 32 made in the application as to the age, physical condition, and 33 family history of the insured shall be held to be valid and binding 34 upon the company; but the company shall not be debarred from 35 proving as a defence to such claim that said statements were wil36 fully false, fraudulent or misleading. Every policy which contains 37 a reference to the application of the insured, either as a part of 38 the policy or as having any bearing thereon, must have attached 39 thereto a correct copy of the application, and unless so attached the 40 same shall not be considered a part of the policy or received in evi41 dence. Each application for such policy shall have printed upon furnished to 42 it in large bold faced type the following words: "Under the laws 43 of Massachusetts, each applicant for a policy of insurance to be 44 issued hereunder is entitled to be furnished with a copy of this 45 application attached to any policy issued thereon." A solicitor, Penalties for 46 agent, examining physician or other person who knowingly or wil- misstatement, 47 fully makes a false or fraudulent statement or representation in or 48 relative to any application for life insurance, or who makes any 49 such statement for the purpose of obtaining a fee, commission, 50 money or benefit in a corporation transacting such business under 51 the provisions of this chapter, shall be punished by a fine of not 52 less than one hundred nor more than five hundred dollars or by 53 imprisonment for not less than thirty days nor more than one year, 54 or by both such fine and imprisonment; and a person who wilfully 55 makes a false statement of any material fact or thing in a sworn 56 statement as to the death or disability of a policy or certificate 57 holder in any such corporation, for the purpose of procuring pay58 ment of a benefit named in the certificate of such holder, shall be 59 guilty of perjury. No life insurance company transacting business Terms of con60 under the provisions of this chapter shall issue a policy to a resident 61 of this commonwealth, which does not bear in bold letters upon its 62 face a plain description of the policy, so fully defining its character, 63 including dividend periods and other peculiarities, that the holder 64 thereof shall not be liable to mistake the nature or scope of the 65 contract. Rights of Policy Holders in Domestic Mutual Life Companies. SECTION 74. Every person insured by a domestic mutual life 2 insurance company shall be a member entitled to one vote, and one 1 3 vote additional for each five thousand dollars of insurance in excess 4 of the first five thousand dollars, and shall be notified of its annual etc. tract to be described on Members, etc. 1870, 349, § 7. P. S. 119, § 158. 1887, 214, § 74. 1894, 522, § 74. Proxies. Guaranty capital; dividends; redemption. 1854, 453, § 27. meetings by written notice or by an imprint in the form prescribed 5 in section forty, upon the back of each policy, receipt or certificate 6 of renewal. 7 Members may vote by proxies dated and executed within three 8 months, and returned and recorded on the books of the company 9 seven days or more before the meeting at which they are to be used; 10 but no person shall, as attorney or otherwise, cast more than twenty 11 votes, and no officer shall himself, or by another, ask for, receive, 12 procure to be obtained or use a proxy to vote. 13 SECTION 75. The stockholders of the guaranty capital of any 1 such company shall be entitled to such annual dividends not exceed 2 ing eight per cent, payable from the net surplus, as may have been 3 agreed upon in the subscription thereof. Any such company may 4 P. S. 119, §§ 145, redeem its guaranty capital by appropriation of net surplus for that 5 purpose if its members so vote. G. S. 58, § 60. 1866, 33. 1870, 349, § 6. 147-150. 1887, 214, §§ 72, 75. 1894, 522, §§ 72, 75. 1900, 363, § 2. 142 Mass. 403. 6 The directors of any domestic life insurance company, out of the 7 funds remaining after providing for the reserve required by the pro- 8 visions of section eleven and for all other liabilities, may from time 9 to time make to policy holders not in arrears distributions of sur- 10 plus not inconsistent with the terms of their policies. Such distri- 11 butions to policy holders shall be made upon the contribution to 12 surplus plan. SECTION 76. 13 All policies issued prior to the first day of January 1 in the year nineteen hundred and one by any domestic life insurance 2 company shall be subject to the provisions of law limiting forfeiture 3 which are applicable and in force at the date of their issue. No 4 policy of life or endowment insurance issued by any such company 5 after the thirty-first day of December in the year nineteen hundred 6 shall become forfeit or void for non-payment of premium after three 7 full annual premiums have been paid thereon; but in case of default 8 in the payment of any subsequent premium, then without any 9 further stipulation or act such policy shall be binding upon the 10 company for the amount of paid up insurance which the then net 11 value of the policy and all dividend additions thereon, computed by 12 the rule of section eleven, less any indebtedness to the company on 13 account of said policy, and less the surrender charge provided 14 herein, will purchase as a net single premium for life or endowment 15 insurance maturing or terminating at the time and in the manner 16 provided in the original policy contract; and such default shall not 17 change or affect the conditions or terms of the policy, except as 18 regards the payment of premiums and the amount payable thereon. 19 Said surrender charge, unless fixed at a smaller rate by the policy, 20 shall be five per cent of the present value of the future net pre- 21 miums at the date of default, which by its terms said policy is ex- 22 posed to pay in case of its continuance, computed upon the rate of 23 mortality and interest assumed in section eleven. But any com1- 24 pany may contract with its policy holders to furnish, in lieu of the 25 paid up insurance provided for in this section, any other form of 26 life insurance lawful in this commonwealth, of not less value. 27 Every such paid up policy shall have a cash surrender value, which 28 shall be its net value, less any indebtedness to the company on ac- 29 30 count of said policy, and every policy which by its own terms has 31 become paid up shall have a cash surrender value, which shall be 32 its net value, less five per cent of one net premium, and the holder 33 of any paid up policy may upon any anniversary of its issue sur34 render the same and claim and recover from the company such sur35 render value in cash. But no surrender of a policy shall be made 36 without the written assent of the person to whom the policy is 37 made payable. On policies of prudential or industrial insurance 38 on which the weekly premiums are not more than fifty cents each 39 the surrender value shall in all cases be payable in cash, which shall 40 be a legal claim for not more than two years from the date of lapse. 41 Any condition or stipulation in the policy or elsewhere which is 42 contrary to the provisions of this section, and any waiver of such 43 provisions by the insured, shall be void. 1 FOREIGN COMPANIES. 1887, 214, § 77. 522, § 77. 19, 2 SECTION 77. Foreign insurance companies, upon complying with 2 the conditions herein set forth applicable to such companies, may 3 be admitted to transact in this commonwealth by constituted agents 160 4 resident therein any class of insurance authorized by the laws of 5 this commonwealth, subject to all general laws now or hereafter 6 in force relative to insurance companies, and subject to all laws 7 applicable to the transaction of such business by foreign insurance 8 companies and their agents; but no provision of law which by its 9 terms applies specifically to domestic life insurance companies shall 10 thereby become applicable to foreign life insurance companies. Conditions of Admission of Foreign Companies. Mass. 413. 1 SECTION 78. No foreign insurance company shall be so admitted Conditions of 2 and authorized to do business until 160 Mass. 413. 1 Op. A. G. 1, 115. Op. A. G. July 6, 1899. admission. 152 Mass. 432. ter, statement and reinsur 1826, 141, § 1. 1854, 453, § 35. 4,7. 1868, 317, § 1. 1878, 36, § 3. 1887, 214, § 78, 4,522, § 78, 3 First, It has deposited with the insurance commissioner a certi- Copy of char. 4 fied copy of its charter or deed of settlement and a statement of its of condition, 5 financial condition and business, in such form and detail as he may ance anidavit. 6 require, signed and sworn to by its president and secretary, or R. S. 37, $40. 7 other proper officer, and has paid for the filing of such copy thirty 1852, 311, § 6. 8 dollars, and for the filing of such statement twenty dollars; and, 1856, 252, § 48. 9 if to transact the business of fire insurance, has filed in the office of 1867, 267, §§ 1, 10 the insurance commissioner a declaration signed and sworn to by 11 its president and secretary, or officers corresponding thereto, that it 12 will not reinsure any risk or part thereof taken by it on any prop13 erty located in this commonwealth with any company not authorized 14 to transact the business of fire insurance in this commonwealth, 13 Gray, 0. 15 except as provided in section twenty. 16 Second, It has satisfied the insurance commissioner that it is Proof of or 17 fully and legally organized under the laws of its state or govern- capital. 18 ment to do the business it proposes to transact; that it has, if a R. S. 37, §§ 41, 19 stock company, a fully paid up and unimpaired capital, exclusive 147, 273, §§ 2, 3. 20 of stockholders' obligations of any description, of an amount not 12,31 1854, 453, § 31. 21 less than is required of similar companies formed under the pro- 156, 252, §§ 44, 22 visions of this chapter, and, if a mutual company, other than life, G. S. 58, §§ 66, 23 that it has net cash assets equal to the capital required of like com- 1863, 249, § 10. 24 panies on the stock plan; or that it possesses net cash assets of not 1874, 22. cl. 1. 2 Allen, 398. ganization and 1826, 141, §§ 2, 3. 42. 67. 1872, 375, § 16. |