The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-03-09
SHALL INSURANCE IysUREp
A1n,vy March s-Mr, Hustled hns e,

Albany, March s-Mr. Hustled hns sub
mittcd to the Insurance Committee a bill codify-
ing and simplifying the insurance laws of tho
State II covers not only the establishment OF
the Insurance Department the powers and du-
ties of the Superintendent the organization OF
companies. their examinations. reports invcst-
ments. loans, and mortgages. but also foreign
companies doing business in the State insur-
ance of husbands by married women. and the
new features Of many Of the bills introduced in
the Legislature this session
The most important of these new provisions
are those rclatingt to suits. insurance OF policies
lapse of policies. appointment of receivers and
their action. penalty for Attempting to cxtort
money from companies and for the payment Of
hush money by officers Of the companies. Ono
section provides that in any suit at law against
any life insurance company in which II
shall appear that the cause Of action is
common to the stockholders or policy holders,
or I'm which the remedy asked for shall appear
to be one which affects the interests of the policy
holders Mt large. it shall be the duty Of the Court
to notify the Attorney General of the nature VI
the suit. and the latter shall confer with the In
suranco Superintendent thereon; and If he be-
licvcs that such action is proper for the protoc-
ton of the policy holders. stockholders. or the
public. he shall instruct the Acknowledgement
to appear in his behalf. and to move for leave to
the said Superintendent to be admitted as n
party 10 the suit or proceedings And the Court
may. in its discretion. admit the superintendent
rs party to represent the interests affected by
the remedy prayed for, or may direct the Attor-
ncy-Gcncral, under the instruction Of the Super
intcndcnt 10 take entire charge of the prosecu-
ton II the suit
II any two or moro persons shall agree or
consprc together ~ destroy or inure the
reputation Of any lifo insurance company 10y
malicious publication or false and slandcrous
statement. or by vexatious suits. or shall con-
spire together to extort money or any valuable
consideration hv threats Of such publication or
suits. or shall demand accept or receive from
any company. directly or indirectly. any money
or valuable consideration for the cessation or
suppression OF such publication, or stopping
suits thcv shall be guilty OF n misdemeanor,
punishable with fine OF $1,000 or imprison-
ment for one year, or both. in the die 'rotion II
the Court; but nothing herein contained shall
release any person SO convicted from liability
10 civil suit Tor damages for injury done 10
the company.
or offer to pay money Of the company to any
person for the suppression Of any injurious
publication or suit affecting the company shall
be guilty of msdemeanor punishable 10y fine
and Imprisonment. and be liable to refund the
money 50 paid Ia the company.
The bill regulating rcinsurances or amalgn-
nations. which has already pas sod the Senate.
| il Incorporated with the amendment-that any
rein surnnce made or attempted by or Tor any
!
the at. shall bc void.
The M also provides that any violation Of tho
act shall be punishable by n fine Of $500 for ench
violation. To- bee recovered in the name Of the
people by the Attorney-Cencral.
II prohibits any company whose surplus shall
be less than one half VI amillion from declaring
| a policy forfeited for the non payment of the
| premiums. unless notice in writing stating
! the amount ~ annual premium. when due and
! when PAYABLE. shall have h'en sent tothr holder
~ the policy at least thirty days before II comes
| due. or until at least thirty DAYS have elapsed
| after mailing of such notice, and the premium
The provision regulating tho lapse NJ poll ,ies
requires the companies to issue n pad-up
| policy for such sum as the value Of the
entire insurance of the policy, according 70 the
| unpaid premiums contracted to be paid. will
purchase provided that this shall not apply 70
! contracted 70 give a definite surrender Nniu"
And no policy shall he forfeited or terminated
when there shall he n cash dividend to tho credit
of the policy upon the books OF the company
sufficient 10 cover the annual premiums; and.
| unless otherwise directed in writing by the
| owner of the policy. the company shall apply 50
mu'h of surh dividend n shall be- required to
ioreo until the payment is exhausted.
Section - prohibits any life insurance com
| pnny from mnknga loan or pledge of securities
10 any other ike company. or. on or hcfor" tho
dav Of annual balance Of accounts. making "a
| transfer Of securities or assets t. such company
with n view ot Increasing the apparent assets
| any officer who shall knowingly sign or publish
anyreport which shall include such transferred.
hss,gh'u, or hyppihr'ui'l sr'urlll't " nH-'u'
OF the company, Tor larger sum thnn tn" a.
tual property Of the company in such securi-
ties. shall be personally liable 10 make good tho
deficiency in value. and suit may bc brought 10y
the superintendent for the purpose OF rerov"ry
Of such deficiency. or 10y any receiver appointed
N any tim" within six years after the making OF
such statement or report.
Tho resignation 81 any director or trustoc
shall not release him from any liability contract
ed hy him rs such director or trustee during his
term Of Office.
No reccivcr ~ any life insurance company
appointed by any court shall pay or cngag" I
pay any sum as foes 10 counsel out Ot the fund,
IT tn" company. cxcrpt under the order Of tn
court which appointed him.
No officer or trustee or other person acting IL
! behalf of any insurance company organized IN
this state shall mako application Ia any cour
for the appointment " n rrcciver. or consent 4
any such appointment. until the company -hnl
! have reported ia condt 10 the Suptrininn
| dent Of Insurance. who. in case such condition
in his Judgment requires dissolution of IN
company. shall take such action rs Is provided
| fl8r D. liz net