The Olneyville times. (Olneyville [Providence, R.I.]) 1887-1917, 1889-07-12
CHAPTER 1872.
AN ACT Relating TO Life aud Casualty
Insurance on the Assessment Plan.
Passed April. %, 1889.

Passed April. %, 1889
IL il enacted by the General Assembly az
follows.
SECTION /. No person shall act with
i'm this state as agent, or otherwise IN ro-
curing or securing applications for insui-
ance upon the life, health or safety OF any
person. or in any manner aid in transact
ing the business Of such life, health or safe
ty insurance upon the assessment plan.
for any company or association incorpor-
ated by or organized under the laws oil any
other state or government until such IN
surance company or association snail nave
complied with all Of the provisions OF this
act.
Sec. 2. Every contract whereby ben
eft il To accrue to party or parties
named therein upon the death or physi-
cal disability of n person, which benefit
il or may become in any degree or manner
conditional upon the collection of an
assessment upon persons holding similar
contracts, shall be deemed contract of
inaurance On the assessment plan, and
the business involving the issuance OF
said contracts shall be carried on in this
state only by duly organized corporations
which shall be subject TO all the provis-
ions and requirements of this act III
the benefit is 10 accrue through the death
of the insured person, the contract shall
be of lfe insurance; If through acciden-
tai death only, or the physical disability
from accident or sickness of the insured,
il shall be of casualty insurance.
Sec. 3. When the insurance commits
sioner on investigation, liz satisfied that
any corporation. doing business IN TINS
state under this act, has exceeded it's
movers. failed 90 comply with any provis-
ions of law, or il conducting business
fraudulently, he shall revoke its author
ity To do business in this state. Any cor
poration may appeal to the Supreme
court from the decision of the insurance
commissioner and during the pendency
of such appeal shall not carry on busi-
meas.
Sec. A. Every policy or certificate is
sued by any corporation doing business
under this act and promising n payment
TO be made upon contingency OF death.
sickness or accident, shall specify the sum
of money which il promises to pay upon
such contingency insured against, and the
number of days after satisfactory proof of
the happening Of contingency at which
such payment shall be made; and upon
the occurrence of such contingency, un-
less the contract shall have been voided
by fraud, or 10y breach of it's conditions,
the CORPORATION shall be obliged To the
beneficiary for such payment at the time
and TO the amount specified III the policy
or certificate. If the insurance commiss-
sioner shall be satisfied on investigation
that any such corporation has refused or
failed to make such payment for sixty
days after il became due, and after proper
demand he shall notify the corporation
to issue no new policies or certificates
until such Indebtedness is fully paid, and
any officer or agent of the corporation
who shall sign or issue any policy or Ger
ti6cate of insurance while such notice IL
in force shall be fined not less than one
hundred nor more than one thousand
dollars for each and every new policy or
certificate 80 issued.
Sec. 3. Corporations doing business in
this State, under this act. shall provide
in their contracts with policy or certihcste
holders. for the accumulation OF an emer-
gency or reserve fund, which shall be at
all times not less than the proceeds OF
one death assessment on all policy or
certificate holders thereof; said fund shall
be invested in such securities as insur-
ance companies are by law allowed to IN
yest their funds. and he trust for the
nayment of death Of disability claims
nniv. The income of said fund may oe
nsed for the payment OF accruing death
or disability claims.
Continued next week.