ful dividends. SECT. 16. Any director, officer or other member of such com- CHAP. 78. pany, who shall vote for, or aid in making any dividend, against Liability, for the provisions of the foregoing section, shall be fined, not exceeding making unlawtwo thousand dollars, or imprisoned for a term, not exceeding twelve 1828, 385, § 3. months; and all sums, received by any stockholder for any such dividend, shall be liable to be recovered of such member by any creditor of such corporation, in an action on the case. disclose prop SECT. 17. Every agent or other person, having charge of any Obligation to property of such company, on request of any public officer, having erty to officers, for service a writ, against such company, on mesne process or exe- having precution, shall furnish to such officer the names of the directors and 1828, 385, § 4. clerk thereof, and a schedule of all its property, including debts, so far as he may have knowledge of the same. cepts. due the corpo SECT. 18. If any such officer, holding an execution, shall be Levy of execuunable to find other property belonging to such company, liable to tions on debts attachment, he, or the judgment creditor, may elect, in whole or ration. part, to satisfy such execution by any debt or debts due such com- 1828, 385, § 4. pany, not exceeding the amount thereof; and it shall be the duty of any agent, or other person, having the custody of any evidence of such debt, to deliver the same to the officer, for the use of the creditor; and such delivery, with a transfer to the officer, in writing, for the use of the creditor, and notice to the debtor, shall be a valid assignment thereof; and such creditor may sue for and collect the same, in the name of such company, subject to such equitable set offs, on the part of the debtor, as may be in other assignments. SECT. 19. Every such agent, or other person, who shall unne- Penalty, for recessarily neglect or refuse to comply with the provisions of the two preceding sections, shall be fined a sum, not exceeding four times the amount due on such execution, or be imprisoned for a term not exceeding one year. SECT. 20. When any suit or prosecution shall be pending in Production of any court, for the violation of any of the provisions of this chapter, in court, in cerit shall be the duty of the clerk or other person, having the custody tain cases. of the books of any such company, to produce the same at the trial, 1828, 385, § 5. reasonable notice in writing having been given for that purpose; if he shall neglect or refuse so to do, he shall be liable to the like payment, fine or punishment, as the party, so on trial, would have been on conviction. fusal to disclose property. 1828, 355, § 4. company books ject to legisla1821, 137, § 6. 1809, March 3. tive control. SECT. 21. The legislature, from time to time, upon due notice Charters subto any such corporation, may make further provisions and regulations, for the management of the business of the corporation and for the government thereof, or wholly repeal any act, or part thereof, establishing any such corporation, as shall be deemed expedient. Mass. laws, CHAPTER 79. OF INSURANCE COMPANIES. SECT. 1. How far subject to the provisions | SECT. 2. President and directors. of this chapter. CHAP. 79. How far sub visions of this SECT. 3. Choice of directors. Manner of SECT. 19. Not to insure, after loss of whole voting. 4. Filling vacancies of directors. ses. 10. Capital, how invested. 11. Loans on respondentia or bottom ry. 12. What property may be insured. 14. Policies, how executed. 15. Insurance companies not to en- 16. Dividends, when and how made. 18. Triennial and other statements of capital. 20. Annual statements to be published. 21. Legislature may examine the company affairs. 22. Certain provisions, not applicable to mutual insurance companies. 23. Insurance by mutual insurance companies. 24. Certain regulations to be set forth in the policies. 25. All persons insured, to be members. 26. Premium notes, and assessments thereon. 27. No liability beyond the amount of the note. 28. Liens on real estate. 29. Remedy, if assessment be not paid. 30. Agents for foreign companies, to file certain copies with register of deeds. 31. Penalty for neglect. SECTION 1. All insurance companies, now or hereafter incorpoject to the pro-rated in this state, may exercise the powers, and shall be subject to the duties and liabilities, contained in this chapter, and in chapter, seventy six, respecting corporations, as far as consistent with the provisions of their respective charters. chapter. President and directors. Choice of direc of voting. SECT. 2. The business of every such company shall be managed by seven directors, who shall choose one of their number to be president; they shall hold their offices one year, and until others are chosen and accept in their stead; and they shall be stockholders in said company and citizens of this state, but not directors of any other insurance company. SECT. 3. The directors shall be chosen by the stockholders, at tors. Manner such time and place and in such manner, as the by laws of the company may prescribe, by the majority of ballots; one vote in this and any other business of the company being allowed to each share, but no one stockholder to be allowed more than ten votes. In all cases, absent stockholders may act by proxy, authorized in writing. Vacancies of directors. Who shall be SECT. 4. Vacancies in the board of directors may be filled at any meeting, specially called for the purpose. SECT. 5. No person shall be eligible as a director, who, at the eligible. Quo- time, shall be a director of any other insurance company. Four directors shall constitute a quorum for doing business. rum. Secretary and other officers. SECT. 6. Every such company, or the directors thereof, as often as once a year, shall, by ballot, elect a secretary, who shall be the clerk of the company, and shall be sworn to the faithful discharge of his duty besides other duties, required by the by laws of the company, he shall keep a true record of all the votes of the stockholders and of the directors, and a true list of the stockholders, and of the number of shares held by each, and shall record every transfer of shares, in a book kept for the purpose. The directors may appoint such other officers, as they may think necessary. ling meetings. SECT. 7. The secretary shall call special meetings of such CHAP. 79. company, besides any meeting for which the by laws may provide, Manner of calto be holden, at such time and place, and for such purposes, as may 121, 139, 9 9. be in writing required by the proprietors of one fifth of the capital stock; if the by laws of such company prescribe no mode of calling such meeting, it may be notified in the same manner, as may have been prescribed in the act of incorporation for calling the first meeting. SECT. 8. No insurance company shall be incorporated in this state, with a capital of less than one hundred thousand dollars, to be paid in, at such periods and in such proportions, as may be required by the charter for the same. Capital to be, at 1821, 139, § 7. least, $100,000. cases. vested. SECT. 9. If any such company become insolvent, before its Stockholders liwhole capital shall have been paid in, by the stockholders, any able, in certain creditor thereof may have his action on the case against any one or 1821, 139, § 2, 7. more of the stockholders, whose proportion of the whole stock, allowed by the charter, shall not have been paid in, to recover against them in their individual capacity toward his debt, an amount, not exceeding the sum due from them on their respective shares. SECT. 10. The capital stock of said companies, paid at each Capital, how ininstalment, shall, within six months thereafter, except as provided in 1821, 139, § 3. the next section, be invested either in the funded debt of the United States, or of this state, or in the stock of some bank legally incorporated, or authorized to transact its business in this state, in either or all of them, as may be most for the interest of said companies, respectively; or any amount, not exceeding two thirds of the capital, may be loaned to persons, resident in this state, on mortgages of real estate situated therein, or on pledge of any of the funded debts or stocks above mentioned. bottomry. SECT. 11. Any such company may loan to citizens of this Loans on restate any portion, not exceeding one half of its capital stock, on spondentia or respondentia or bottomry; but not unless at least three fourths of 1821, 139, § 3. all the directors shall agree to such loan, and enter their consent thereto, at large, on the records of the corporation, to be laid before the stockholders at their next meeting. SECT. 12. Every such insurance company may make insurance What property upon vessels, freight, money, goods and effects, and against captivity 1821, 139, $1,8. of persons, and on the life of any person during his absence at sea, and on money lent upon bottomry and respondentia; and they may also make insurance against fire on any dwelling houses or other buildings, and on merchandise or other property within the United States; and fix the premiums and terms of payment. amount of risks. 1821, 139, $5,8. SECT. 13. The risk incurred by any such company, by virtue Limitation of of any of the provisions of the two preceding sections, shall not, at any one time, exceed ten per cent. of its capital, actually paid in, on any one bottom, or on any one building with its contents. executed. SECT. 14. All policies of insurance, made by such companies, Policies, how shall be subscribed by the president, or in case of his death, inabil- 1821, 139, § 1. ity or absence, by any two of the directors, and countersigned by 8 Pick. 56. the secretary of the company; and they shall be binding upon the company, in like manner, as if executed under the corporate seal thereof. CHAP. 79. SECT. 15. The said companies shall not, directly or indirectly, Insurance com- deal or trade in buying or selling any goods, wares or merchandise, or commodities whatever. panies not to engage in trade. 1821, 139, § 3. Dividends, when and how made. SECT. 16. The directors of every such company, at such times as their charter, or by laws, shall prescribe, shall make dividends of so much of the profits of the company, as to them shall appear 1821, 139, § 2. advisable; but moneys received, and notes taken, for premiums on risks, which shall be undetermined at the time of making such dividends, shall not be deemed part of said profits. Loss of capital to be repaired. 1821, 139, § 2. Triennial and other state ments of profits. 1821, 139, § 2. Not to insure, after loss of whole capital. 1321, 139, § 4. Annual statements to be published. SECT. 17. After any diminution of the capital stock of any such company shall have happened by losses, by depreciation or otherwise, no dividend shall be made, until such diminution shall have been supplied by actual funds, or the value restored. SECT. 18. Once in every three years, and oftener, if required by the stockholders, the directors shall lay before them, at a meeting, an exact and particular statement of their profits, if any, after deducting losses and dividends. SECT. 19. If any such company shall have sustained losses to an amount, equal to their capital stock, and the president or directors, after knowing the same, shall make any new or further insurance, the estates of such of them, as shall make such insurance, or consent thereto, shall be jointly and severally liable for the amount of any loss, which shall take place under such insurance. SECT. 20. The president and directors of every such company shall, previously to subscribing any policy, and once in every year 1821, 139, § 5 afterwards, publish, in two newspapers printed in this state, one of which shall be in the city of Portland, the amount of their stock, exclusive of premiums on risks not determined, the risks against which they insure, and the largest sum, they will take on any one risk. Legislature may examine the company affairs. 1821, 139, § 6. Certain provis cable to mutual panies. SECT. 21. The president and directors, whenever required by the legislature, shall also lay before them a statement of the affairs of the company, and submit to an examination on oath concerning the same. SECT. 22. The provisions in the foregoing sections of this ions, not appli- chapter, relating to the amount of capital stock, to be owned by insurance com- any insurance company, and the division of the same into shares, and dividends of profits thereon, and other provisions incidental to the nature of its funds, and such of said provisions as relate to the liability of directors or stockholders, in case of deficiency of capital, and the regulations concerning the business of any such company, contained in sections, eleven and twelve, of this chapter, shall not be construed as applicable to mutual fire insurance companies; but the following provisions shall be binding on such companies, so far as consistent with their respective charters. Insurance, by mutual insurance companies. Special laws, SECT. 23. Mutual insurance companies, incorporated in this state, may make insurance for a term, not exceeding seven years, on dwelling houses, stores, shops and other buildings, and on house1828, 509, 9 hold furniture, merchandise and other property, the contents of any building within this state, against loss or damage by fire, originating in any cause, other than by design in the assured. Certain regula SECT. 24. No by law, rule or requirement, made by any such mutual insurance company, shall be binding on any person insured, CHAP. 79. to vacate his policy, issued or renewed subsequently to April twenty tions to be set second, eighteen hundred and thirty eight, unless the same shall be forth in policies. 1838, 337, § 1. distinctly set forth in such policy or renewal. SECT. 25. Every person insured by such company, or his legal representatives or assigns, continuing to be insured therein, shall be deemed a member of the corporation, during the term specified in his policy and no longer. All persons insured, to be Special laws, 1828, 509, § 2. ments thereon. SECT. 26. Every person, on being insured by such company, Premium notes, shall, before receiving his policy, deposit his promissory note, for and assesssuch sum of money, as shall be determined by the directors; and Special laws, such part of said note, as the by laws may require, shall be imme- 1828, 509, § 5. diately paid towards the incidental expenses of the institution, and indorsed upon said note; and the remainder of said note shall be payable, in part or the whole, in such instalments as the directors may, from time to time, require, for the payment of losses and other expenses; to be assessed on all, who are members, at the time when such losses or expenses happen, in proportion to the amounts of their respective notes. mount of the SECT. 27. No member of such company shall be held to con- No liability betribute to any losses or expenses, beyond the amount of his said yond the anote, on which he is to be so assessed. At the expiration of any note. Special person's term of insurance, his note, or such part thereof as laws, shall 1828,509, § 5, 6. remain uncalled for as aforesaid, shall be relinquished to him, except as provided in the next section. SECT. 28. The company shall have a lien against the assured, Liens on real on buildings insured by them, and the land appurtenant to the same, laws, estate. Special for the amount at any time due on said note, to commence from 1828, 509, § 6. the time of the recording of the same, as herein after provided, and continue until sixty days after the expiration of the policy, on which such note shall be given; provided, the said company shall cause a certificate of their claim to such lien, signed by their secretary, to be recorded by the register of deeds for the county or district; and, during the pendency of such lien, an attachment of such property, made in a suit to be commenced on said note in favor of the company, shall have priority to all other attachments or other claims; and execution, when recovered, may be levied on the same accordingly. paid. Special SECT. 29. If an assessment, made as provided in the twenty Remedy, if assixth section of this chapter, shall remain unpaid, for thirty days sessment be not after demand made by any agent of the company or [on] any per- laws, son liable to pay the note aforesaid, the directors may sue for and 1828, 509, § 8. collect the whole of any balance due on such note; and the amount collected shall remain in the treasury of the company, subject to the payment of such sums, as might otherwise have been assessed on the note; and the overplus, at the expiration of the policy, shall be the property of the assured. to file certain SECT. 30. Every person, who shall undertake to make insurance Agents of forin this state, as the agent for, or in behalf of, any corporation estab-eign companies lished in any other state or country, shall deposit with the register copies with regof deeds within the county or district where he resides, or usually 1828, 402, § 1. transacts the business of his agency, a copy of the charter of such ister of deeds. |