New Ulm review., 1895-05-22
3 B.


forgery. Such records Shall be omen to tha Z
ihsSpection sa OF any person interested therein,
ars sei; ins,,, o.. me directors of any mutual
time, by vote, fix and determine the arnonnt:
to pe PAID as dividend upon policies ex- :
s,aIi a aurlhg naRg eaeh year Each policyholder
u auy assessments which may be made
~ ~ als. .ns laWl IN accordance with law and
ms cohtracl on account of losses and ex.
penses incurred while he was member.
provided he is notified of such assessmenf
WlIhln one year after the expiration of his
policy. - Ai''
Sec. 40. Mutual fire Insurance comnanies.
except as provided in the next Section.
shail cnarge and collect ON their policies a
11ra,,l Iuli mutual premium in cash notes abso-
iinteiy its Ely PAYABLE. @ e. Any. such company may in
lts bylaws and policies fix the Contingent
mutual liability of it's members for the
Iiiaa paiflaenI mt OF losses and expenses not pro-
Vlded IOr Dy ITS cash funds; provided that
such contingent liability Of a. member shall
NOT pc less than a sum equal to and in
huuiIi0n hss no1ia TO tne cash premium written in
Ihsp Ms policy, nor more than = sum equal to
three times the amount of such cash pre-
MUM The total amount of the liability Of
tn the polieyholder shall be plainly and iegi-
bly, stated upon each policy Whenever
any reduction is made in the contingent lia-
bility OF members such reduction shall ap-
ply proport1onally to all policies in force
Sec. Al. Mutual fire insurance companies
now organized and lawfully dong business
upon the plan Of taking deposit or
the. amount insured by its policies. and
making call or assessment thereon for
the paymentrof losses and expenses as the
same are incurred, may continue such svs-
tenn Of business, and not less than twice
nor more than five times the amount Of
such deposit notes or contingent liabilities
shall constitute the entire liability of their
members.
Sec. AZ. Whenever mutual fire insur-
ance company is not possessed of cash
funds above its reinsurance reserve Sutti-
cient for the payment of incurred losses
and expenses, it shall make an assessment
for the amount needed to pay such losses
and expenses upon it's members liable to
assessment therefor in proportion to their
several liabilities. The company shall cause
to be recorded in a book kept for that pur-
gether with statement which shall set
forth the condition of the company at the
date OF the order the amount Of its cash
assets and office deposit notes or other
contingent funds liable to the assessment.
the amount the assessment calls for and
the particular losses or other liabilities it
be made and signed by the directors who
voted for the order before any part OF the
assessment @ is collected: and any person
take copy Of the same.
Sec. 43. When, by reasons Of deprecia-
tion ion or loss Of its it's, funds, OF otherwise, the
viding for it's other debts. less than the
required premium reserve upon it's policies,
it shall make good the deficiency bv assess
| ment In the mode provided in the preceding
section, notice of which assessment shall be-
filed in the insurance commissioners office,
or II the directors. or insurance comrns-
sioner, are of the opinion that the company
is liable to become insolvent, the directors,
or upon their failure for a period of five
days to do so, the Insurance commissioner,
may, instead OF such assessment, order two
assessments to be made, the first determin-
ing what each pOlicyholder must equitably
! pay, or receive in case of his withdrawal
| from the company and having his policy
Cancelled, the second what further sum
| each must pay in order to reinsure the I'M
expired term of his policy at the same rate
| policyholder shall pay receive according
| to the first assessment, and his policy shall
| then be Cancelled, unless he pays the
mnt, in which case his, policy shall continue
in force; but in neither case shall policy
holder receive or have credited to him more
| than he would have received on having his
| policy cancelled by vote Of the directors un-
! der the bylaws.
:, If within two months after such alterna-
! amount OF the policies whose holders have
| settled for both assessments is less than
| hive hundred thousand dollars, the company
| hall cease to issue policies, and all policies
| whose holders have not settled for both
| assessments shall be void, and the company
shall continue only for the purpose of adj
! ums among the members and settling out
standing claims.
No assessment shall be valid against a
person VINO has not been duly notified
| thereof in writing within one year after the
expiration or cancellation of his policy. And
| When an assessment is ordered the directors
| demand for payment to be made upon each
person subject thereto, by mail or personal
| Sec. a. When the directors make an
| assessment or call upon the members for
money, OR vote that there exists necessity
! TOR such call or assessment, they or any
| officer, poicyholder or creditor may apply
| TO the district court of any county by a Pc
! tltlon IN the nature Of bill in equity,
! praying the court to examine such assess
ment or call, the necessity therefor, and
all matters connected Herewith, and to
ratIy, amend or annu the assessment or
call, or to order that the same be made as
| law and Justice may require; but applica-
| tfon. when made by any party except tho
corporation, OF a receiver, or the insurance
commissioner, shall rest in the discretion Of
! the court. When the directors unreasona-
| bly, neglect to make an assessment or call
to satisfy an admitted OR ascerta,ned claim
/ or any person holding such claim or the
insurance commissioner, may make the ap-
plication to the court. Upon such appli-
| cation. if made by the directors, or Upon
! an order of the court, if made by any
| other party, the directors shall set forth
! the claims against the company, its assets,
| and all other f. cts and particulars aDDer-
| tanning to the matter.
The court before which such petition is
filed shall order notice to be given by pub
| Hcation or otherwise to all parties interest
ed, and upon the return thereof shall pro-
! ceed to examine the assessment or call, or
the necessity, and al matters connected
pear and be heard thereon. All questions
| that arise shall be heard and determined
| Us in other equity cases.
The application may be referred to a ref
| eree who shall appoint Il time and place
to hear all parties interested, and shall
give ut least ten days personal notice
sioner and through the nostofiice,. so far
as he is able. to all persons liable upon
said assessment or call. The referee shall
| hear the parties and report upon the cor
rectness Of the assessment or call, and all
| matters connected herewith. The court
may ratify, amend or annul the assessment
| or call, or order one to be made, and may
make such orders and DEGREES in the prem
ises as, under all the circumstances, justice
and equity require. If the assessment Or
call is altered or amended. or one is or
dered to be made, the directors shall forth
| with proceed to vote the same in legal
| form, and the record of such vote shall be
set forth in supplemental bill or answer.
when an assessment or call has been SO
| ratified, ascertained or established, decree
| shall be entered which shall be final and
conclusive upon the company and all parties
liable to the assessment call as to the
necessity Of the same, the authority OF the
company to make or collect the same, the
amount thereof and all fOrmalites con-
nected Herewith. An assessment or call
altered or amended by vote Of the directors
and decree of the court thereon shall be
binding on all parties who would have
been liable under it as originally made,
and in all legal proceedings shall be held
to be such original assessment or-call. All
such proceedings shall be at the cost Of the
company unless the court for cause other
wise orders; and in all cases the court may
control the disposition of the funds collect
ed under such proceedings.
If 1t appears to the court before which
i such application is pending that the net
/ proceeds Of any assessment or call will not
be sufficient to furnish substantial relief to
those having claims against the company,
the judge may decree that no assessment
shall be collected, and when, upon the ap-
pIication Of the insurance commissioner, or
a member Of the company, or of any person