News and citizen. [volume] (Morrisville, Vt. ;) 1881-current, 1891-04-30
The New Insurance Law.
NOTICES SENT OUT BY THE STATE COZ
NuSSIONERS OF INSURANCE.

, | NOIlJES Sen OOI BY THE SIAIE CONE
mssIONERs OF INSURANCE.
The state insurance commissioners
are sending out notices to the mutu-
al accident and mutual life insurance
companies and the agents of such
companies in this state, calling at
tention to the requirements of the
state law. In this circular the COM
missiOners say
The attention of those prosecuting
or applying to do the business of in
surance in this state, in any and all
OF its branches, us principals or as
the representatives of corporations
organized under the laws of other
states and countries, is especially di-
rected to the provisions of law regu-
lating the business of such corpora
tions in Vermont, of which the fol-
lowing is brief synopsis
First-A company, association or society
must be able to meet these requirements be-
! fore its application for admission to the state
can be entertained by the commissioners,
| viz:
a. Joint stock companies-Capital Of at
least, 100000, not less than half of which
must be invested in cash securities, other
! than mortgages
Assets equal to liabilities, reckoning so per
| cent. OF premiums on outstanding fire, health
| and accident risks, the whole amount of pre-
miums on marine risks, and premium re-
serve on life risks based on acturaies' tables,
with interest at per cent.
d. Mutual insurance company, or cooper
ciety-Assets amounting to 100000. in
vested in securities readily convertible into
cash-not less than half in securities other
than mortgages-assetst to equal liabilities in
accordance with standard prescribed for
joint stock companies including guarantee
capital n liability. Cash reinsurance re-
serve, other than premium notes, not requir-
ed, when such notes amount in gross to 3
per cent. of total amount al risk.
c. Mutual accident company-Assets, or
reserve fund applicable to payment of losses
to amount of $4,000.
Second-Such company must file a certified |
copy of its character and bylaws, and q |
statement under oath of its financial condi- |
ton, business, etc, with the secretary of |
state, and must also constitute him its at
torney upon whom legal process, in any ac- |
tlon against such company, may be served, |
before the commissioners are permitted to /
license it to do business.
Third-The business of such company, as |
sociation, or society can be prosecuted by |
licensed resident agent only; no office clerk |
partner or emplOye being permitted to |
solicit or receive risks of applications for in |
surance in behalf of his principal without a |
license; and any violation of this require
ment is subject to the following penalty:
'He shall forfeit not less than
500 and not more than $1,000"
Fourth-Appointments of agents must be
officially certified to commissioners by an
officer of the company or its authorized gem
eral agent.
Fifth-Annual reports of condition. total
business and business in Vermont for each
calendar year. are required to be filed with
the commissioner on or before March | in
each year, and annual tax returns to be
made to the commissioner of state taxes in
the month of February.
SlXth-tees and taxes arei required as
follows, except where by the laws of another
state greater rate is eXacted, when reciprO- 1
cal charges must be made, viz
Filing annual statement......... $50 90
Annual license to company ............... 90 |
Agent annual lIcense........... ............ 90
Broker annual lhcense..-...........!....-.. 10 90
Tax of ? per cent. on gross premiums
received.
1t will be observed that the Ian
guaGe of the statute brings every !
A." company, ASSOCIATION or sOci-
ETY." under the control and super
vision of this department, and the
commissioners desire hereby to give
notice that all cooperative associa-
tions, assessment societies, benefit
and endowment orders are held to be
to the foregoing require
ments and will be expected to make
report to the commissioners of all
business done within the state, be-
ginning from January l, 1891, and
also to submit their financial condi-
ton to their inspection, and to pro-
cure the prescribed licenses for the
coming insurance year, commencing
April /, 1891.