Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-03-19
III

nesota.
Section /. Any number Of persons not less than
nine, being actual resic ents Of this State. and
Gagged In the business OF milling or manufacturing
therein and owning property within this State Of the
aggregate value of not less than one hundred thou
sand dollars, may. upon the terms and restrictions
hereinafter contained, form themselves into COM
pany Tor the purpose Of nsuring, upon the plan of
mutual insurance milie, manufactures, elevators,
ana the contents and products thereof: and the
paDies 30 formed shall possess the usual powers and
be subject to he liabilities Of corporations
Sec. O.. Such persons shall organize by adopting
aud signing articles of Incorporation which shall be
recorded In the oco of the egster OF deeds of the
county where the principal place of business Is be,
and in the Office of the secretary of state, and be
published as required by law in Of other corpor
atoms,
Sec. 8. Such articles of incorporation shall con-
lain
/. The name of the corporation.
Q. The general nature of the business to be
transacted.
8. Tbs principal place of business Of such COM
pany. w 1854 9aa
A. The time of commencement and period of
continuance Of such corporation which shall not 10
any case exceed fifty years
s. The general terms and conditions Of member
ship.
6. The names and residence Of the persons FORM
ing the corporation.
Z. The designation of the officers Ia whom the
management of the corporation shall be vested, the
time and manner of eecng the same and the names
of the first board of directors. Ed
8. Such other provisions or articles not inconss-
tent with law as the members forming such corpora
ton shall deem proper or necessary to define the
manner il which such corporate power shall be
ercised Ht sra
Sec. 4. The provisions Of section four of chapter
hrty-four of general statutes 1878, shsn apply to
and be observed by all corporations organized under
this act. eAa.
Sec s. Such corporations shall have power
To make contracts of insurance on the plan of
mutual insurance, in this Slate and elsewhere, with
any person, against loss or damage by fire light
ming, any mill, mandatory, elevator, the
tents products thereof for such premiums con-
sideration, and under such regulations as it may in
its bylaws prescribe.
To prescribe the manner and form of the admis.
sion of members and their withdrawal.
To make all necessary regulations concerning in
suranee of roperty and the apprajsement and pay
ment of losses, ana alter and amend the same at
pleasure, subject to the restrictions hereinafter pre-
scr1bed.
To fix the compensation of Its officers define their
duties and obligations, and to require bonds for the
faithful performance of their duties.
Ts exercise such other powers shall be neces-
sary to effect the objects Of such corporation.
Sec 7. A majority of the members of the board
of directors shall be residents of the State of Mime
sota and all meetings of such board shall be held
within the State.
Sec. s. No company orgar ized under this act
shall commence business until agreements have
been entered into for insurance with at least eighty
applicants. the premiums on which shall amount to
not less than fifty thousand dollars, of which ten
thousand dollars at least. shall have been paid
in cash, and the notes of solvent parties founded
shall have been received for the remainder No
of the notes received aforesaid shall amount
TO more than one thousand dollars and ten twol
notes shall be given for the same lisk, be made
by the same person or firm, except when the whole
amount Of such notesShall not exceed one Thousand
dollars; nor shall any such note be repre-
sented as capital stock, unless policy be issued
upon the same within thirty days after the organ
iZation of the company, upon q risk which shall
not be for shorter period than twelve months.
No note shall be accepted as part of the capital
CTR of OF h,,oj
ness unless accompanied by certificate of
justice of the peace, or supervisor of the town.
one of the aldermen of the city, where the person
making such note shall reside, that the person
making the same is in his opinion. pecuniariy coed
and responsible for the same, or by other evidence
to the satisfaction of the insurance commissioner
of the responsibility Of The maker or makers
thereof. tH ~ st
Sec. o. All general laws of tina State, containing
provisions applicable to ali Classes of compar les,
and to fire insurance companies far as the ssme
relate or can apply to companies making mutual
insurance, on mutual plan, shall apply to and
be observed by all companies organized under this
act. ae "a s.,r .
Sec 10. When any company shall be organized
as herein provided, and its organization submitted
to and approved by the attorney genegal and shall
have furnished the insurance commissioner proof
of its compliance with section eight hereof, it
shall be entitled to receive from said insurance
commissioner certificate that it is entitled to
assume risks and issue policies in this State upon
the property above specified for any term not
ceedipg five years, and Hot to extend beyond the
duration of the corporation, and for an
amount not to exceed ten thousand dollars in any
one risk.
SEQ II. Such company may by its bylaws pre-
scribe the forms and conditions of its policies, and
the Same alter ut pleasure; may fix the rates Of
insurance upon different classes of property SO
insured, and may provide for varying the came
according to the exposure or risk of the several
parcels of property insured; may determine the
proportion of premium to be paid in advance, and
to be secured by premium notes and vary The same
as the experience of such company shall make it
necessary, but shall not SO reduce the advance pay
ments as to reduce the amount If cash reserve be-
low ten per cent. OF the wnole capital, in any
event below ten thousand dollars.
Sec. IL. Every person insured by euch CORPORA
tion shall pay st the time Of receiving his policy
such sum in money and give his premium note for
such further may be required; and every
person efecting insurance in any company organ
lied under this act, and the heirs, executors and
assigns Of such person continuing to be insured,
shall thereby become members of such corporation
during the period of insurance, d shall be bound
to pay for losses and such necessary expenses as
may accrue in the management of such cpmpiny, in
directors shall often as they may deem necessary
after receiving notice OF any loss damsge by fire
and ascertainng the same, or after the rendition Of
any judgment against such company forloss or dam
age settle and determine the sums to be paid by the
several members thereof their respective portions
of such loss, and give notice thereof in such
ner as the bylaws may require and the so de-
ternmed shall be paid to the officers of such COM
pany within thirty days after the publication or de-
livery of such notice. If any member shall for the
space Of such thirty days. after such notice. neglect
or refuse TO ray the sum sessed upon him as his
proportion of any loss as aforesaid, or Of the
penses of such company, such company may sue for
and recover judgment for the whole amount of such
premium note notes. with cos s.of suit, but exc
cuticn shall only issue for assessments and costs
they accrue. If the whole amount of premium notes
shall be insufficient to pay the loss occasonsd by any
fire or res in such the sufferers insured by the
eald company shall receive, towards m king good
their respective losses, proportional share Of the
whole amountof sech notes according to the sums
by them respectively insured; but no member ehall
ever be required to pay for any loss more than the
whole amount of his premium note. as
Sec. 49,. Except for the payment Of losses as pro-
vidsd for in policies, and With the limitations there
on hereinbefore provided for. corporation organ
ized under this act ehal incur any debt liability
whatever. sa f.
SEQ. IA. The amounts received for cash premi-
INNS and payments, together with the investments
and accommodations thereof. remaining on hand at
any time, shall constitute the actual funds Of such
CORPORATION, the amounts due ON premium notes
shall constitute the contingent fund,
and the aoprepat0 of suph