The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-02-03
NEW INSURANCE.
Senator Sheehan's Bill TO Govern
Assessment Concerns.

Senator Sheehan yesterday intro
duced the bill which has been drawn up
by the insurance commissioner
for the closer supervision Of the
cooperative or assessment life and
casualty insurance companies. It pro-
Vides as does the present law, that nine
or more persons may organize such
companies, and provides for the deposit
with the insurance commissioner of 81
for each $1,000 applied for. 1t also pro-
vides that no less than 400 applications
for insurance must be made to the
company before a charter is granted,
except in the case of plate glass or
boiler insurance companies, in the case
OF which 200 applications is declared
to be enough.
All corporations doing an insurance
business as defined by this law must
before the first day Of February, each
year, file with the insurance commits
sioner a report Of it's affairs for thu
preceding year. Every policy issued
by such a corporation shall specify the
sum insured, and 1t must not be more
than the amount of one assessment
on the entire membership. Such In
surance shall be first lien over all
Indebtedness Of the company. The in
surance commissioner is given full au-
thority to examine the accounts OF
companies in case any legitimate claim
has failed Of payment without proper
cause, thirty days after it is due. He
may apply to the courts for a receiver
if he thinks the condition Of affairs
justifies such a course.
No corporation is permitted to trans
fer or re-insure its risks, unless ap-
proved by a two-third vote Of the in
sured. Ten days notice shall be given
for a special meeting to consider such
action.
The manner in which these societies
shall do business is carefully defined
'and they must accumulate an erner-
gency fund CT not less than 25 per
cent Of one annual assessment for life
companies and not less than ten per
cent Of one annual assessment for
other than life companies.
Where the mortuary sum is not suff1-
cient to pay valid claims the company
must levy an assessment within sixty
days, for the payment of the claim.
Companies organized in other states,
before transacting business in this
state, must satisfy the insurance COM
missioner that they are complying
with the requirements OF. the states in
which they are organized, and that for
twelve months preceding they have
paid the maximum of their policies
Whenever the insurance commissioner
is satisfied that the latter provision is
not being complied with he must re-
woke the charter.
Every domestic or foreign corpora
ton doing business in this state must
in writing appoint the insur-
ance commissioner it's attorney, upon
whom all proceedings against it may
be served. No person doing business
under this act is allowed to issue
policy on the life Of any person more
than sixty years Of age.
The insurance commissioner or his
clerk may visit amy insurance COM
pany and inspect it's affairs whenever
he deems 1t necessary.
Any solicitor. agent, examining ply
sician or other person making fradu-
lent statements in relation to an ap-
plicatiOn fer insurance may be punish
ed by fine Of from $25 to $780, or by
Imprisonment.
Any company neglecting to comply
with the provisions of this act will be
punished by fine of not less than
500 or more than $500.