COUNTY COMPANIES.

§ 1. Amends section 7, act of 1877, by permitting non-resident property owners to become members of such county insurance companies.

AN ACT to amend section 7 of "An act to organize and regulate county fire insurance companies," approved June 2, 1877, in force July 1, 1877.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That section 7 of "An act to organize and regulate county fire insurance companies, approved June 2, 1877, in force July 1, 1877, be amended so as to read as follows:

Section 7. Any person owning property in the county for which any such company is formed may become a member of such company by insuring therein, and shall be entitled to all the rights and privileges appertaining thereto; but no person not residing in the county in which the company is formed shall become a director of such company.

APPROVED June 19, 1893.

MUTUAL TORNADO COMPANIES.

1. District mutual wind or tornado insurance companies may be incorporated. Not less than 50 persons and not to exceed 10 counties.

§ 2. Declaration shall be filed with the Auditor of Public Accounts which shall contain proposed charter. Auditor shall furnish copy of charter, which shall be filed with the county clerk. Copy of charter evidence.

3. Election of directors-term of officequorum. Annual meeting-election of directors proxies - ballot-who shall be entitled to vote.

4. Election of officers-term of office.

§ 5. Secretary and treasurer shall give bond.

§ 6. Corporate powers. Powers and duties of board of directors.

§ 7. Membership, rights and privileges.

§ 8. What property may be insured-term of policy-limitation of amount. Liability of members.

§ 9.

Insurance shall not be effected beyond limits of district. Property shall not be insured within the limits of cities or villages.

§ 10. Notice of loss or damage. President and secretary may adjust loss not exceeding $500. Adjustment of losses exceeding $500 in amount. In case of disagreement appeals may be taken to the county court. Appointment of committee of appeals-pay of same.

§ 11. Assessments for the payment of losses.

§ 12. Notice of assessments; when due.

§ 13. Assessments may be collected by suits at law, Liability of directors for neglect of duty in collecting assessments. Collection of losses from companies.

§ 14. Annual statement by the secretary, to the company.

§ 15. Withdrawal of membership. Cancel lation of policies.

§ 16. Annual report to the Auditor of Public Accounts. Examination and certificate thereon by the Auditor. Fees.

AN ACT authorizing the organization and to regulate district mutual wind-storm, cyclone or tornado insurance companies. SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That any number of per

sons not less than fifty, residing in any district not exceeding ten counties in this State, who shall collectively own property of not less than one hundred thousand dollars ($100,000) in value, which they desire to have insured, may form an incorporated company for the purpose of mutual insurance against loss or damage by wind-storms, cyclones or tornadoes.

§ 2. Such persons shall file with the Auditor of Public Accounts a declaration of their intention to form a company for the purpose expressed in the preceding section, which declaration shall be signed by all the corporators and shall contain a copy of the charter proposed to be adopted by them. Such charter shall set forth the name of the corporation, which shall embrace the name of the city, town or village in which the business office of the company is to be located, and the intended duration of the company, and if it is found conformable to this act and not inconsistent with the laws and constitution of this State, the Auditor shall thereupon deliver to such persons a certified copy of the charter which on being filed in the office of the county clerk of the county where the office of such company is to be located, shall be their authority to organize and commence business. Such certified copy may be used in evidence for or against said company with the same effect as the original: Provided, That such charter so obtained shall be subject to the control of and modification by the General Assembly.

§ 3. The number of directors shall be not less than nine nor more than fifteen, a majority of whom shall constitute a quorum to do business-to be elected by ballot from the corporators and hold their offices until their successors are elected and qualified. In the election of the first board of directors each corporator shall be entitled to vote in the manner as hereinafter designated. All subsequent elections, except to fill yacancies, shall be held at the annual meeting of the company, which shall be on the first Thursday in November in each year, and every person insured shall be entitled to cast in person or by proxy by ballot, one vote for each one of the number of directors to be elected.

§ 4. The directors shall elect from their number a president and treasurer, and shall also elect a secretary who may or who may not be a director or member of the company, all of whom shall hold their offices for one year, and until their successors are elected and qualified.

$5. The treasurer and secretary shall each give bond for the faithful performance of their duties, in such amounts as shall be prescribed by the board of directors.

§ 6. Such corporation and its directors shall possess the usual powers and be subject to the usual duties of corporation and directors thereof, and may make such by-laws not inconsistent with the constitution and laws of this State, as may be deemed necessary for the management of its affairs in accordance with

the provisions of this act; also to prescribe the duties of its officers and fix their compensation, and to alter and amend its by-laws when necessary.

§ 7. Any person owning property in the district for which any such company is formed, may become a member of such company by insuring therein and shall be entitled to all the rights. and privileges appertaining thereto.

§ 8. Such company may issue policies only on dwellings, barns and other farm buildings, churches and school houses, town halls and such property as may properly be contained therein, for any time not exceeding five years, and not to exceed beyond the limit duration of the charter, and for an amount not to exceed three thousand dollars ($8,000) on any one building and contents. All persons so insured shall give their obligations to the company, binding themselves, their hers and assigns to pay their pro rata share to the company of the necessary expenses and of all losses by wind storms, cyclones or tornadoes, which may be sustained by any member thereof during the time for which their respective policies are written, and they shall also at the time of effecting the insurance pay such percentage in cash, and such other charges. as may be required by the rules or by-laws of the company.

§ 9. No such company shall insure any property beyond the limits of the district comprised in the formation of the company, nor shall they insure any property within the limits of any city, town or village.

§ 10. Every member of such company who may sustain loss or damage by wind storms, cyclones or tornadoes, shall immediately notify the president of the company, or in his absence the secretary thereof, stating the amount of damage or loss claimed, and if not more than five hundred dollars ($500), then the president and secretary shall proceed to ascertain amount of such loss or damage and adjust same. If the claim for damage or loss shall be an amount greater than five hundred dollars ($500), then the president of such company, or in case of his absence, the secretary shall forthwith appoint a committee of not less than three members of such company to ascertain the amount of such loss or damage. If in either case there is a failure of the parties to agree upon the amount of such damage or loss the claimant may appeal to the judge of the county court of the county in which such company is located, whose duty it shall be to appoint three persons as a committee of reference, who shall have full authority to examine the witnesses and to determine all matters in dispute, and shall make their award in writing to the president of such company, and such award shall be final. The pay of such committee shall be two dollars ($2) per day for each day's service so rendered, and four cents for each mile necessarily traversed in the discharge

of their duties, which shall be paid by the claimant unless the award of such committee shall exceed the sum offered by the company in liquidation of such loss or damage, in which case said expenses shall be paid by the company.

§ 11. Whenever the amount of any loss shall have been ascertained, which exceeds in amount the cash funds of the company, the president shall convene the directors of the company, who shall make an assessment of such amount upon all the property distributing the same pro rata against such several pieces of property insured by the company.

§ 12. It shall be the duty of the president, whenever such assessment shall have been made, to immediately notify every person composing such company personally, by agent, or by letter sent 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 when and to whom payment is to be made, but such time shall not be less than thirty (30) nor more than sixty (60) days from the date of such notice.

§ 13. Suits at law 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; and the directors of any company so formed who shall willfully refuse or neglect to perform the duties imposed upon them by the provisions of this act, shall be liable in their individual capacity to the person sustaining such loss. Suits at law may also be brought and maintained against any such company by members thereof for losses sustained, if payment is withheld after such losses have become due.

§ 14. It shall be the duty of the secretary to prepare an annual statement showing the condition of such company on the 31st day of October, and present the same at the annual meeting.

$ 15. Any member of such company may withdraw therefrom by surrendering his policy for cancellation at any time while the company continues the business for which it was organized, by giving notice in writing to the secretary thereof and paying his share of all claims then existing against said company: Provided, that by the withdrawal of any such members, the members remaining in the company shall not be reduced below the original number of corporators. or the assets be reduced below the sum of fifty thousand dollars ($50,000). Provided, further, that the company shall have power to cancel or terminate any policy by giving the insured notice to that effect.

§ 16. It shall be the duty of the president and secretary of said such company on the first day of January of each year, or within one month thereafter, to prepare under their oath and transmit to the Auditor of Public Accounts a statement of the condition of the company on the thirty-first day of December then next preceding, in such form as the Auditor may direct. If,

upon examination, he is of the opinion 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 contiuue business 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 ten dollars ($10) for the Auditor's services, all of which shall be paid into the State Treasury and applied to the insurance fund.

$ 17. 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.

APPROVED June 15, 1893.

TOWNSHIP COMPANIES.

§ 1. Amends section 3, act of 1874, by adding the last proviso.

AN ACT to amend section three (3) of an act entitled "An act to revise the law in relation to township insurance companies," approved March 24, 1874, in force July 1, 1874.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That section three (3) of an act entitled "An act to revise the law in relation to township insurance companies," approved March 24, 1874, in force July 1, 1874, as amended by an act approved May 11, 1877, in force July 1, 1877, be amended so as to read as follows:

Section 3. The number of directors shall not be less that nine nor more than fifteen, a majority of whom shall constitute a quorum to do business, to be elected from the corporators by ballot of whom one-third shall be elected for one year, one-third for two years, and one-third for three years, until their successors are elected and qualified. At all subsequent elections, except to fill vacancies, one-third of said board of directors shall be elected for three years, said election to be held at the annual meeting of the company, which shall be on the first Tuesday after the first Monday in January in each year: Provided, that any company now incorporated and doing business under this act may at any time change their mode of electing their board of directors, at an annual meeting, as to be in conformity with this act. In the election of the first board of directors each corporator shall be entitled to one vote. At every subsequent election every person insured shall be entitled to as many votes as there are directors to be elected, and an equal additional