Bismarck weekly tribune. [volume] (Bismarck, Dakota [N.D.]) 1884-1943, 1891-03-20
RELATING TO ASSESSMENT INSUR.
ANCE COMPANIES.
I'll. b. No. 65.l

RELATING TO ASSESSMENT INSUR-
ANCE COMPANIES.
III. b. No. ISL
An Act Relating to Life. Casualty and Other Insur-
ance on the Assessment Plan, and the Conduct of
the Business of such Insurance.
Be- Enacted hy I'll. Legislative assembly Of tie
State Of North D"kpta:
SECTION l. Every contract whereby a
benefit is to accrue 10 a party or parties
named therein pom the death or physical
disability of a person insured Hereunder,
or for the payment of any money or bene-
tit from the proceeds or dues or assessment
collected from persons holding similar con-
tracts, but which contracts must show that
the liabilities of the insured or members
hereunder are not limited to fixed or arti-
fetal premiums, shall be deemed a contract
OF mutual insurance on the assess
ment plan: and the business involving the
issuance OF such contracts shall be carried
on in this State only by duly organized and
authorized corporations, which shall be
subject only to the provisions and require
ments of this act: but nothing herein
contained shall be construed to apply to
secret or fraternal societies, lodges or coun-
ellis, now doing business in this State, or
hereafter seeking to DO business therein,
| which conduct their business and secure
members on the lodge system exclusively,
having ritualistic work and ceremonies in
their societies, lodges or councils, and are
under the supervision of a grand or SUI
preme body, nor to any associations organ
lied solely for benevolent purposes, and
not for profit, which do not employ paid
agents in soliciting business, nor to any as
ISOLATION that limits its certificate holders
to a particular order, religion or fraternity
or to the employees of a designated firm,
business house or corporation.
SEC. 2. Nine or more persons, citizens
OF this State, may form a corporation to
carry on the business of mutual insurance
on the assessment plan, as defined in the
first section. Such persons shall file in the
office OF the Commissioner of Insurance
and with the register of deeds of the county
where the principal office is located, a dec
l~aratiOn signed by each of the corporators
and duly acknowledged before an officer
authorized under the laws of this Stale to
take Acknowledgement OF deeds, and shall
therein express their intention to form an
organization for the transaction of life or
casualty insurance upon the assessment
plan; the place where the principal office
for the transaction of its business shall be
located, which shall be in this State: the
the manner in which the corporate powers
granted by this act are to be exercised; the
manner OF electing trustees, or directors,
or other persons, not less than mine in num-
Der, a majolity of whom shall be residents
OF this State, by whatever name or title daS-
ignated, who are to have and exercise the
general control and management OF its al
fairs and funds, which election shall be in
the manner prescribed by the bylaws of
Slcn corporation.
SEC. J. Upon filing in the office of the
Commissioner OF Insurance a . D of the
declaration required by the preceding sec
ton. together with proof satisfactory to
said Commissioner that at least 200 persons
having made application in writing for
membership therein, and have each made
one payment OF assessment, ~aggregating
five thousand dollars, which is invested in
state or county bonds Of his State, and de-
posted with the State Treasurer, the prin-
cipal to be by him held in trust for the
benefit of the beneficlaries thereof. the
same Shall be referred to and examined by
the Attorney General of the State, and if
by him found cOnfOrmable to the require
ments of this act and not inconsistent with
the Constitution inc Laws OF the United
States, or of this State, he Shall certify ac-
cordlngly and return the same with his
certificate of such conformity to such Com
missioner, to be filed and recorded in his Of
hce: and thereupOn said Commissioner shall
issue to said corporation a license or certiti-
cate OF authority to engage in the business
set forth in such declaration and the said
corpuratOrs and those who may thereafter
become associated with them or their sue
cessors shall be constituted a body polite
and corporate and be lawfully entitled to
business, and any copy OF any
paper referred to in this act, certified by
said Commissioner may be used and read
in evidence in any action or legal proceed
ing with the same effect as the original.
SEC. 4. Every corporation created by or
under this act shall continue until revoked
by the judgment of a court of competent
jurisdiction. No articles of incorporation,
or certificate of incorporation, or corpora
ton under the provisions of this act, shall
| DnntipIln valid ny ho,yn lnroI ,u;%., -
ter one year from the date of such articles,
unless the organization has been com-
pleted, and business begun hereunder
within that time in accordance with the
provisions of this act. Nor shall any cor
pOratl0n, company or individual solicit or
cause to be solicited for such corporation
any business until such corporation shall
have complied with all the provisions of
THIS act; Proridcd, ulmays, That the name
or title OF my such proposed CORPORATION
snail not be the same as, nor too closely re-
semble, the name or title already III use by
a corporation OF this or other states, as in
dictated by The reports of the several insur.
ance departments on file in the Office of the
said Commissioner of Insurance, and said
Conmissioner shall not license any corpor-
alton the name or title of which so closely
resembles one already in use as to mislead
the public.
SEC. 5. The corporators, trustees, direct
oAo, III VI lCpIC ScuGdGlftSS DIS may IKE
provided in the declaration aforesaid, of
any corporation, association or society or.
ganlzed or ~re-organized under this act shall
have power to make such bylaws, not in
consistent with the Constitution or Laws
OF this State or of the United States, or of
this act, as may be deemed necessary for
the government of its officers and the con-
duct OF its affairs, and the same when ne
cessary to alter and amend; and they and
their successors may have a common seal,
and may change and alter the same at their
pleasure.
SEC. 6. Any corporation existing under
the laws OF this State, and now engaged in
transacting the business OF mutual insur.
ance on the assessment plan, may re-incor.
porate under the provisions of this act:
Prouded, That nothing in this act con.
tanned shall be construed as requiring OF
making obligatory upon any such cor
poratlon to re-incorporate, and any such
corporation may continue to exercise all
rights, powers and privileges conferred by
this act, or its articles of Incorporation, not
inconsistent with this act and its provi-
sions, thelsame as if re-incorporated here.
under.
SEC Z. When the Commissioner of In.
s%urance, on investigation, is satisfied that
any corporation doing business in this
State under this act has exceeded its pow
ers, or failed to comply with any of the