The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-03-31
INSURANCE.
Provisions of the Law Passed by the
Last Legislature on the Subject.
The Graveyard" Insurance Business Made
Punishable by Fine and Imprisonment
Fraternity Insurance Excepted.
70 the Editor of the Indianapolis Journal.

Ro the Editor of the Indianapolis journal;
Please publish the main features of the new
law regarding insurance associations transact
ing business on the assessment plan.
JONATHAN W. HARVEY.
MCCoRDsvHLE, Ind, March 20.
The act relating to life insurance companies
transacting business on the assessment plan,
provides ~ that any number of persons, not
less than five nor more than thirteen, one or
more of whom shall be bona fide citizens and
voters of the State, may associate themselves to-
gether as a life insurance company; ~ that they
shall be persons in law capable OF suing and be-
ing sued, may have power to make and enforce
contracts in relation to the legitimate business
of their corporation, and may make bylaws not
inconsistent with the constitution of the State
United States ~ the name of the corporation
shall be submitted to the Auditor Of State, and
shall be approved if 1t indicates the object or
purpose OF the company; az before the charter
is granted the corporation shall file statement,
sworn TO by at least two of its executive officers,
with the proper State officer, showing that ap-
plicaticn has been made for not less than $780,
600 insurance by not less than 90 persons, and
that the amount of the first assessment on
each policy or certificate has been deposited
in bank TO the credit of the mortuary fund.-
(5) no part of the proceeds of any assessment
shall be applied to any other purpose than the
btdtod purpose IOr WnlOn III Is cOllecUeu; (O) q
policy or certificate shall be exempt from valua-
ton based upon any table of mortality, and
when payments are made by any other person
than the insured and without the written con-
sent of the insured, the policy, to be valid, must
be supportabie by an insurable interest; az no
association shall issue endowment certificates or
policies promising to pay members during life,
except for accident or temporary illness, any
stipulated sum of money. The expenses OF such
associations are to be provided for by admission
fees, or assessments designated for expenses. and
no part OF the mortuary fund shall in any case
be used to pay expenses; (S) all associations
shall submit annually before the 31st of August,
under oath, to the Auditor of State, detailed
statement of assets, liabilities, insurance in
force, and shall answer such rogatories
the Auditor shall make, in order to ascertain its
financial character and condition. Upon q petit
ton of a majority of the officers ten members
of the association, an examination into its af-
fairs may be instituted by the Auditor of State;
90 any agent, physician or other person who
shall secure policy, or be instrumental in doing
so, without his knowledge or consent or by
means of misrepresentation. upon ali aged or in
hrm person, shall be guilty of misdemeanOr,
subject to a fine of not less than 800, to which
may be added Imprisonment in the penitentary;
(1O) whenever an association fails to make its
annual statement to the Auditor of State, or in
his opinion is not conducting its business ac-
cordance with law, the Attorney general shall
begin proceedings by writ of quo warranto, re-
curing it TO appear in court and show cause
why 1t should not be decreed dissolved; al
agents are required to execute bond to the
board OF directors of the association for the
faithful discharge of their duties, and the treas
urer is required TO give bond of $4,000; Q3)
associations organized in other States by COM
plying with the provisions of the law, may ope-
rate in this State; Q4 bond of 500, 900, with
two resident and two nonresident sureties will
be required; 90 statement from the Insurance
Commissioner of the State in which such ass0-
Citations have been organized, shall be accepted
by the Auditor OF state prima facie evidence of
its solvency; Q6l they may be proceeded against
by THE Attorney general in the same manner
as those organized in the State; ~ any assO-
citation now doing business in the State which
shall fail to comply with the provisions of the
act within ninety days after Its passage, shall
be lined not less than $50 and imprisonment in
the county Jail for not less than thirty days; QSl
tae act does not apply TO secret fraternal
cieties, which, under the supervision of q Grand
or Supreme Lodge, secures membership through
the lodge system exclusively; 40 all conflicting
laws are repealed (2Ol an emergency exists.
Printed copies of the insurance laws can be OBJ
tanned from W. b. Burford, this city.