Declaration of filed. adjoining congressional or political townships in this state, [not] exceeding three in number, and without regard to county lines, who collectively shall own property of not less than fifty thousand dollars in value, which they desire to have insured, may form an incorporated company for the purpose of mutual insurance against loss or damage by fire, which corporation shall possess the usual powers and be subject to the usual duties of corporations, and the corporate name whereof shall embrace the name of the township in which the business office of said company is located. 82. Such persons shall file with the insurance commisintention to be sioner a declaration of their intention to form a company for the purposes expressed in the preceding section, which declaration shall be signed by all the corporators, and shall comprise a copy of the charter proposed to be adopted by them. Said charter shall set forth the name and 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 commissioner shall thereupon deliver to such persons a certified copy of the charter, which, on being filed in the office of the clerk of the county court where the office of such company is to be located, shall be their authority to organize and commence business. Such certified copy of the charter may be used in evidence for or against said company, with the same effect as the original. By-laws. Directors. Policies of inBurance. 3. The corporators or directors shall have power to make such by-laws, not inconsistent with the constitution or 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. 84. Any company so organized shall elect, in accordance with section three of article eleven of the state constitution, nine of their number as directors, five of whom shall constitute a quorum, to do business, and such directors shall elect of their number a president and a treasurer. They shall also elect a secretary, who may or may not be a member of the company; all of whom shall hold their offices for the term of one year, and until their successors are elected and qualified. The treasurer and secretary shall each give bonds to the company for the faithful performance of their duties, in such amounts as shall be prescribed by the board of directors. § 5. Such company may issue policies only on detached dwellings, farm barns, and such property as may properly be contained therein, for any time not exceeding five years, and not to extend beyond the limited duration of the charter, and for an amount not to exceed three thousand dollars on any one risk. All persons so insured shall give their obligations to the company, binding themselves, their heirs and assigns to pay their pro rata share to the company of the necessary expenses and of all losses by fire 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 charge as may be required by the rules or by-laws of the company. § 6. Every member of such company who may sustain In case of loss loss or damage by fire, shall immediately notify the presi- are. or damage by dent of such company, or in case of his absence, the secretary thereof, who shall forthwith convene the directors of such company, whose duty it shall be, when convened, to appoint a committee of not less than three members of such company, to ascertain the amount of such loss; and in case of the failure of the parties to agree upon the amount of such damage, the claimant may appeal to the judge of the county court, of the county in which the office of 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 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 said committee shall be two dollars per day for each day's service so rendered, and four cents for each mile necessarily traveled in the discharge of their duties, which shall be paid by the claimant, unless the award of said 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.. Classification § 7. Any such company may classify the property insured therein at the time of issuing policies thereon, under of property. different rates, corresponding as nearly as may be to the greater or less risk from fire and loss, which may attach to each several building insured. 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 said company, who shall make an assessment upon all the property to the amount for which each several piece of property is insured, taken in connection with the rate of premium under which it may be classified. § 8. It shall be the duty of the president, whenever such Notification of assessment shall have been made, to immediately notify assessment. every person composing such company, personally, by substitute or by letter sent to his usual post office 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 such payment is to be made; but such time shall not be less than thirty nor more than ninety days from the date of such notice. § 9: Suits at law may be brought against any member suits at law. 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. Property in- § 10. 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 containing over twelve thousand inhabitants at the time of the organization of such company. sured. Elections of directors. Annual state tary. § 11. The directors shall be elected by ballot, and after the organization of any such company, excepting to fill vacancies, such elections shall be held at the annual meeting thereof, which shall be the first Tusday after the first Monday of January in each year, and every person so insured shall be entitled to one vote, and an additional vote for each five hundred dollars that they may be insured in the company. 12. It shall be the duty of the secretary to prepare a ment of secre- statement, showing the condition of such company on the thirty-first day of December, and present the same at the annual meeting. withdraw. Members may § 13. 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 member, the number of the members remaining in the company will not be reduced below the original number of corporators, or that the assets will not be reduced below the amount at the time of organization: Provided, further, that the company, from good reasons shown, shall have power to cancel or terminate any policy by giving the insured notice to that effect. Non-residents § 14. Non-residents of any such township or district of townships. Owning property therein, and being residents of the county containing said township or district, may become members of such company, and shall be entitled to all the rights and privileges appertaining thereto, except that such members shall not become directors in said company. Annual state ance commissioner. § 15. It shall be the duty of the president and secretary ment to insur of every such company, on the first day of January of each year, or within one month thereafter, to prepare, uuder their own oath, and transmit to the insurance commissioner, a statement of the condition of the company on the thirtyfirst day of December then next preceding, in such form as the commissioner may direct If, upon examination, he is of the opinion that such company is doing business cor rectly, in accordance with the provisions of this act, he shall thereupon furnish the company his certificate, which shall be deemed authority to continue business the ensuing year, subject, however, to subsequent provisions of this act. For such examination the company shall pay five dollars, and one dollar for the certificate. Each company shall pay, at the time of organization, ten dollars for the commissioner's services, all of which shall be paid into the state treasury and applied to the insurance fund. 16. If the commissioner, upon the examination of any Dissolution of company organized under this act, is of the opinion that its corporation. condition has become such as to render its further proceeding hazardous to the insured, or when a majority of the members of such company desire to close its concerns, he or they may apply to the judge of the county court of the county in which the office of the company is located, or to the judge of the circuit court of the circuit court thereof, setting forth in substance the grounds of application; and such court, after due notice to all parties interested, may proceed to hear the matter, and for reasonable cause decree a dissolution of the corporation. Corporations so dissolved shall be deemed and held extinct in all respects as if their charters had expired by their own limitation, subject to provisions hereinafter prescribed. one year suits. § 17. Any such company whose charter has expired by To continue for limitation, or which has been dissolved by decree of court or otherwise, shall nevertheless be continued as a body corporate for the term of one year after the time when it would have been so dissolved, for the purpose of prosecuting or defending suits by or against it, and of enabling it to gradually settle and close its concerns, but not for the purpose of continuing the business for which it was organized; and when the charter expires, or the company is dissolved, as provided, the court, on application of a creditor, or three members of the company, any time within said year, may appoint a receiver to take charge of its effects, and collect the debts and property due and belonging to it, with power to prosecute and defend suits in the name of the company, or otherwise, and do all other acts which might be done by such company. All accounts of the receiver shall be rendered to the court as may be ordered; the powers of the receiver may be continued as long as the court deems necessary for said purposes, before ordering him to make his final report. At the time of final dissolution of any such company, if a balance is remaining after the payment of the debts, it shall be distributed and paid to those who are justly entitled thereto, as having been members; also return to them all their obligations held by such company. 818. The term "commissioner," in this act, shall be "Commissionconsidered to mean the person who, by law, has charge of er." the insurance department of the state, whether that be the In force July 1, AN ACT to authorize the state treasurer to surrender securities heretofore 1872. deposited by life insurance companies. SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly, That any life insurance company which desires to retire from busi. ness may notify the holders of its outstanding policies, and publish its intention to retire from business, for thirty successive days, in some newspaper published in Chicago, and having a general circulation; and if such policyholders elect to have their policies canceled, such company shall refund and pay to the policyholder, within ninety days thereafter, the net value of the policy, valued in accordance with the laws of this state, after deducting any indebtedness that may exist against such policy, or, if any policyholders shall so elect, the company may secure for such persons re-insurance in another company; which re-insurance shall equal in value the net value of such policies as aforesaid, and the company assuming the insurance shall issue to each of such persons a policy, in lieu of such policies as may be canceled for that purpose. When it appears to the auditor that any such company has canceled its policies, as herein provided, and has no other liability existing a statement of which shall be certified by the affidavit of the president and secretary of the company-he shall give such company his certificate, upon which it may withdraw its securities de posited with the state treasurer: Provided, that any company having discontinued business prior to the passage of this act, by obtaining the cancellation of its policies as herein provided, may, in like manner, withdraw its securities so deposited, or such company may withdraw its securities by depositing other bona fide securities, of the kind provided by law, in lieu therefor, to the amount of all its outstanding policies. APPROVED April 3, 1872. |