The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-01-31

NAAC OOA1lCl u Tic VI e5dLAl1Lc-
ton and conduct of assessment insur-
ance companies, is attracting great
deal of attention. as the question of
forming these companies is one that
often comes up. Therefore the full text
of the bill is given, as follows:
a Bill for an Act to Provide for Organiz-
ing and Regulating the Business OF Life
or Accident insurance Corpora tons,
Associations or Societies, Transacting
business on What is Known as the
Assessment Plan and Fixing Penalties
for the Violation of Its Provisions.
Be it enacted by the Governor and
Legislative Assembly Of the Territory
OF Utah:
Section l. That any number of per-
sons, not less than five nor more than
thirteen, citizens of the United States,
two or more of whom shall be bona
fide citizens and voters Of this terri
tory, may associate themselves to-
gether as body corporate for the
purpose of organizing a corporation,
association or society to transact the
business Of life or accident insurance
on the assessment plan, on compliance
with the provisions of this act, and OF
Chapters I and VII, part fourth of the
Compiled Laws OF Utah, in so far as
the provisions OF said chapter are or
may be applicable, subject to the con-
ditions and restrictions hereinafter pro-
vided.
A BODY CORPORATE.
Sec. 2. A corporation, association or
society organized under the provisions
of this act, shall be a body corporate
and polite by the name stated in
certificate of organization, and by that
name they and their successors may
have SUGGESTIONS, and shall be persons
in law capable of suing and being sued;
may have power to make and enforce
contracts in relation to the legitimate
business of their corporation, asSocia-
ton or society; may have and use a
common seal, and may change or alter
the same at pleasure, and they or their
successors in their corporate name shall
in law be capable of taking, purchaS-
ing, holding and disposing of real and
persona estates for purposes Of their
association or society, and may make
bylaws, not inconsistent with the
constitution and laws of this territory
or the United States, in which bylaws
shall be defined the manner and form
OF electing directors and officers of the
corporation. ASSOCIATION or society, and
the qualihca tons and duties Of the
same, and also the qualifications and
<plivileges Of members thereof.
APPROVAL OF NAME
5. Sec. 8. The corporators shall submit
the title or name of the proposed cor
poration to the secretary of the terri
tory, who shall approve the same. pro-
vided ii indicates the object or purpose
for which the corporation is formed
and does not too closely resemble
title in use. Before approving a title
II shall be the duty Of the secretary of
the territory to examine the titles of
corpora tons, and no corporation or as
ISOLATION organized under this act shall
take any name in use by any other
organization or so closely resembling
such name as to mislead the public as
70 its identity.
TO FILE STATEMENT.
Sec. 4. Before the certificate of in
corporation is issued to any such cor
poration it shall file its statement.
sworn to by at least two of its execu-
tive officers, with the proper territorial
officer, showing that application has
been made for not less than two hun
dred thousand dollars insurance by not
less than one hundred persons; and it
shall be unlawful for any corporation,
association or society, or its agents, to
solicit and secure business to that
amount for the purpose herein provid-
ed, before its charter shall have been
granted.
NOTICE OF ASSESSMENT.
Sec. s. Each notice of assessment
made by any corporation, association or
society transacting business of life. en-
dowment or casualty insurance. unon
the cooperative or assessment plan.
made upon its members or any of them.
shall truly state the cause and purpose
of such assessment
EXEMPTION FROM EXECUTION
Sec. 6. The money or other benefit
charity, relief or aid to be paid. pro
Vided or rendered by any corporation.
ASSOCIATION or society authorized to do
business under this act, shall be ex-
empt from execution, and shall not be
liable to be seized, taken or appropriat
ed by any legal or equitable process to
pay any debts or liabilities of a mem
Der.
CHANGE IN BENEFICIARY.
Sec. T. Any member. of any cornora-
ton, association or society onara fine,
under this act shall have the right AT
any time, with the consent of such cor
poration, association or society IN
make change in his beneficiary with
out requiring the consent of such bene-
ficiary ge'ie
NO PAY DURING LIFE
Section S. No corporation. associa-
ton or society organized under the
provisions Of this act, shall issue en-
doWment certificates or policies under
taking or promising to pay members
during HE, except for accident or tenn
porary illness. any stipulated sum If
money The expenses of such CORPORA
ton, association or society shall he
provided for by admission fees. and
either fixed annual payments or as
SesSments made and designated to he
for such expenses, and no part of the
expense fund shall in any case be 11sed
10 pay death claims, and no part of tbe
mortuary fund shall in any case he
used to pay expenses.
ANNUAL STATEMENT.
Section g. Any corpora ton, associa-
ton or society, carrying on the business
Of life or accident insurance on the as
sessment plan, shall submit annually
before the 3lst day OF January. under |
oath, 10 the auditor of public accounts |
q detalied statement Of assets. Habili- |
ties, insurance il. force, and number Of |
persons upon whom risks are in force |
on the preceding 31st day of December
and answer such interroga tories as the |
audltcr OF public accounts, who shall |
furnish a blank for that purpose may
under the provisions Of this act. make |
IN order to ascertain its financial char
acter and condition, and shall nav To |
tie auditor OF public accounts. llnon
fling such statement, fee of S.. and |
the auditor of public accounts shall in
clude such statement in his annual re- |
port For the purpose of verifying such |
statement, the auditor Of public ac- |
counts SHALL ON petition of a major |
1ty Of the officers. or Of ten members lof
such association, supported by the affi-
daVit of one or more of the petitioners
showing the necessity therefor. iusti /
tute an examination Of its affairs to |
ascertain its true character and condi-
ton. The auditor shall be entitled to
receive and collect from such company