The Middlebury register. [volume] (Middlebury, Vt.) 1850-1882, 1874-12-08
LAWS OF VERMONT, A. u, Iss4.
Dssiynated BY .e Secretary Of STATE for publication
IN the Newspapers Of the STATE.
No. Am Act relating to insurar'Tc.

No. IAN Act relating to insurance.
1t is hereby enacted by the General As
sembly of the State of Vermont
Sec. l. All mutual fire insurance com
panies in this State shall be responsible fD'
the acts and neglect of the several agent
appointed by them, as between the slit
companies and the applicants for insurance
therein, or the assured, while in the per
formapce Of their duties as the agents o
said companies.
Sec. 2. All fire insurance companies. Other
then those chartered by tho general assem-
bly, of this State, arc prohibited from taking
insurance in. thi' State. unless such com
pany or companies shall be responsible by
the laws of the State in which such compa-
ny or companies are situated, or by the act
Incorporating such company or companies,
OF by a prOvisO to that effect Inserted in
their policies of insurance., for the acts and
neglect of their agents IA hotween said
companies and the assured, and ms between
SAID companies and the applicants for lnsur
ance therein.
Sec. 3. II any person shall take any ap-
plicatiOu or make any survey intending to
effect insurance on any property in this
State, ia any fire insurance company not
chartered by the legislature OF this State,
said company not being liable for the nets
and neglect OF such persons, as specified in
the prec siding section, said person shall. up
ON conviction before any court proper to try
the same, forfeit and pay n sum not less
than seven dollars for every such offence I;
onc-hali Of such penalty shall go the per-
son prosecuting the same, and the other
halt to the treasury Of the town where such
offence shall have been committed.
See. A. Whenever applications for fire
insurance SHALL be taken or transmitted by
or through "A local or travelling agent ofany
Erp Insurance pnnnapV. IT shall in la " he
deemed to be the act OF the said company /;
and such agent shall not therein he deemed
to be the agent Of the applicant or insured,
and in all questions arising as to tho facts
stated in such application, the said agent
shall be taken and deemed to be the agent
of the insurers. and not Of the insured.
See. 3. There is hereby established a de
tinct bureau, to be known as the insurance
bureau, which shall b. charged with the ex-
ecution Of the laws of this State in relation
to insurance.
Sec. G.. The Secretary and Treasurer of
this State arc hereby declared e~x-olicio in
surance commissioners
Sec. 7. That no joint stock Insurance
company, not organized under the laws OF
this State. shall DO permitted Or allowed to
transact the business of such company in
this State, unless it shall have a bona fdc
paid up capital, invested in securities read
lily convertible into cash. of at least one
hundred thousand dollars; not less then
one-half of which shall be invested in cash
securities. other than mortgages of real es-
tatc. nor unless such company shall have,
in addition to such capital, assets equal ia
amount to all its outstanding liabilities.
reckoning fifty per cent Of premiums on
outstanding fire risks, the whole amount of
premium on marine risks. and the premium
reserve on life risks, based on the actuaries'
table of mortality. with interest at four per
cent, rs Il liability provided, that tho in
surance commissioners may, at their discre-
ton, licens, any company to do business in
this State whose impairment Of capital does
not exceed twenty per cent of the above
rule nor shall any mutual fire or life in
surance company or cooperative insurance
company, association or society. not organ
lied under the law of this State. be permit
ted or allowed to transact tho business Of
such company in this State unless it pos
Sesses assets amounting to one hundred
thousand dollars, invested IN securities
readily convertible into cash, not less than
one.half of which shall DO invested in cash
securities other than mortgages of real es-
tate, nor unless it possesses such tssets
equal to all its outstanding liabilities Tin
GLIDING Reinsurance, to be estimated as in
the case of joint stock insurance companies
above named, and including tho amount Of
guarantee capital as & liability 4; nor until
oil the law relating to insurance companies
Of other States, enacted by this State, shall
have been complied with. And further
provided, that nothing herein shall be -
construed as to require any mutual fire in
sIrancc company to keep on hand any cash
Reinsurance reserve or funds invested in
securities other than their premium notes,
when said premium notes amount in gr0ss
IN ( brpp nor ppptun al the 0mDunt ut riEk
by said company.
Sec. 8. No insurance company not orga-
nized under tho laws of this State shall do
business in this State until it has filed with
the Secretary OF this State a written stipu-
lation agreeing that any legal process ai-
fecting the company, served on either of the
insurance commissioners, shall have the
SINE effect as il served personally on the
company within this State. SO long as any
liabilities OF the STIMULATING Company to any
resident OF this State continue such stipu-
lation cannot be revoked or modified. Ser
vice Of process according to the stipulation
aforesaid shall be sufficient service on the
company n copy of such stipulation, GER
titled by either OF the commissioners, and
his certificate that process has been served
on him shall be sufficient evidence thereof.
When process against or affecting an insur-
anee company is served on the insurance
commissioners, or either of them, it shall
be served BY duplicate copies. and they or
he shall Immediately forward by mail one
COPY of the same to the company at ITS
home Office or to any person whom slch
company shall designate.
See. g. 1t shall not be lawful for any
insurance soppany embraced in section
seven to transact any insurance business in
this State, unless such company shall first
obtain license OF tho insurance commits
%sioners, authorizing the company so to do.
Before receiving such license, tho com pany
shall file with the Secretary of State a GER
tilted copy of its charter and bylaws, and
a full statement. under oath Of its president
and secretary, showing tho financial c0ndi-
ton and standing Of the company, in accor-
dance with blanks furnished by him. Upon
receiving such copies and staten .nts, if
the Commissioners are satisfied with the
same, and that the company meets the re-
a%uirements Of section seven, and has COM
piled with the requirements OF section
eight of this act, ,hey shall grant such Ii
cense, authorizing such company to do IN
surance business by authorized agents, sub
iect to the laws of this State, until the first
day of April thereafter and annually
thereafter, on tho first day of April such Ii
cense may be renewed, Sd long as such
company shall comply with the requirements
aforesaid, and the commis sloners shall re-
gard the company as safe, reliable, and en-
titled to public confidence. For each IL
cense or renewal as above the company
shall pay to to the insurance commissioner
the um of Eve dollars. .
SEQ. 10. No person shall act as agent OF
any insurance cOmpany, Aforesaid, not or