The Bennington banner. [volume] (Bennington, Vt.) 1858-1894, 1891-04-23
TEE NEW INSURANCE. Law.

The State Insurance Commissioners
are sending out notices to the Mutual
Accident and Mutual Insurance com
panies in this State, calling attention to
the requirements of the State law. In
this circular the Commissioners say:
The attention of those prosecuting OF
applying to do the business of insurance
in this State, in any and all of its
branches, as principals or as the repre-
sentatives of corporations organized un-
der the laws of other States and coun.
tries, is especially directed to the pro.
visions of law regulating the business of
such corporations in Vermont, of which
the following is a brief synopsis:
Flrst-A company, association or So
ciety must be able to meet these require
ments before its application for admis-
sion to the State can be entertained by
the Commissioners, viz:
a. Joint stock cOmpanies-CapitalO of
at least, 500, 900 not less than half of
which must be invested in cash securi.
ties, other than mortgages.
Assets equal to liabilities. reckoning
30 per cent. Of premiums on outstanding
fire, health and accident risks. the whole
amount of premiums on marine risks
and premium reserve on life risks based
on acturaies' tables, with interest at
per cent.
b. Mutual insurance company. or co.
operative insurance company. associa
tion or sOciety-Assets amounting tc
Sl00,0O0 invested in securities readily
convertible into cash-not less than hall
in securities other than mortgages
| assets to equal liabilities in accordance
with standard prescribed for joint stOcl
companies, including guarantee capita
as liability. Cash reinsurance reserve
other than premium notes, not required
when such notes amount in gross to pei
cent of total amount at risk.
c. Mutual accident company Assets
or reserve fund applicable to payment o.
losses, to amount of $4,000.
Second-Such company must file
certified copy of its charter and by laws
and a statement under oath of its tinan
eial condition, business, etc, with tn,
Secretary of State, and must also consti
tutc him its attorney upon whom lega
process, in any action against such com
pany, may be served. before the Com
missioners are permitted to license it t,
do business.
Third-The business Of such company
association or society can be prosecuted
by licensed resident agents only; NJ
Office clerk, partner or employee bein,
permitted to solicit or receive risks o
applicants for insurance in behalf of hi
principal without license; and any vic
lation of this requirement is subject t.
the following penalty:
He shall forfeit not less than 800 an,
not more than $1,000"
Fomth-Appointments of agents mus
be officially certified to commissioner
by an officer of the company or its gen
eral agent
Fifth-Annual reports of condition
total business and business in Vernon
for each calendar year, are required t
be filed with the commissioner on or be
fore March !, lin each year, and annual ia
returns to be made to the COMMISSIONS
of State taxes in the month of February
SiXth-Fees and taxes are required a
follows, except where by the laws of al
other State greater rate is exacteC
when reciprocal charges must be mad,
viz:
Filling annual statement. s9j
Annual license to company ....... ...... Bl
| Agents annual license ....... .
Brokers annual license e..................... 10
: Tax of per cent. on gross premium
received.
/ 1t will be observed that the languag
of the statute brings every company,
! association" or society under I'll
Q control and supervision of this depar
= ment, and the commissioners desil
9 hereby to give notice that all cooper
! tive associations, assessment societie
j. benefit and endowment orders are he
| to be held amendable to the foregoiI
, requirements and will be expected
D make report to the commissions of 9
r business done within the State, begi
= ming from January /, 1891, and also
= submit their financial condition to the
o inspection, and to procure the prescribe
n licenses for the coming insurance yea
n commencing April /, 1891.