The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-03-10
Insurance LegislntiOn.


great deal of insurance legislation of
very good character was enacted. Most i'm
portant of these was the McCord bill re-
pealing that section of the old law which
imposed penalty OF 10 per cent upon home
fire insurance companies for failure to ad-
just and pay losses within sixty days This
has always been almost a complete bar to
the organization of Indiana fire companies.
Another insurance bill provides for the
ganization of class mutuals in various lines
OF trade upon the same plan that the mill
ers, the furniture manufacturers and other
large trades in other States have organized
mutual fire insurance companies. Another
bill for the relief Of home stock companies
broadens their scope so that they can in
sure against other calamities besides fire.
such as cyclone, and permits them TO hold
real estate for five years. Another bill
broadens somewhat the scope OF the farm
ers live stock mutuals. Another insurance
bill of considerable Importance completes
the list of insurance legislation. This is
House bill No $40 for the organization and
regulation of assessment life and accident
companies. Folio Wig is a oIier digest of it:
Any number of persons not less than-five
may form an association to do life, acct
dent or both life and accident business on
the assessment plan. The age limit of APP
plicants for policies is fixed at sixty-five
years. The association cannot obtain a
charter until bona fde applications have
been received for 100000 insurance from not
less than two hundred applicants shown by
medical examination to be good risks. A
way is provided for existing companies to
reorganize under the act All forms of
fraternal insurance are exempted from the
provisions of the bill, and an assessment
company is defined thus: ANY corpora
tion association or society organized TO in
sure lives, which provides for the payment
or policy claims or the accumulation OF re-
serve or emergency funds, and the ex-
penSeS of the management and prosecution
of the business by payments TO be made
either at periods named in the contract or
upon assessments as required, by persons
holding similar contracts. and wherein the
insureds liability TO contribute TO the pay
ment Of policy claims accrued or to accrue
is not limited TO fixed sum-. Such con-
Germs are subject TO the provisions of this
act only Every such life insurance cor
poration, association or society shall ac-
cumulate and maintain a reserve or emer-
gency fund equal to such sum as might
be realized from one assessment on OF
periodical payment by policy or certificate
holders thereof and in no event less than
the amount of its maximum policy or GER
tificate. Such fund IL not Already accumu-
months and by every corporation formed
under this act, within six months from the
date of its organization, and shall be held
as a trust fund for the purposes for which
such fund was created or accumulated. In
case such fund or any portion thereof shall
have been used by the corporation, reduced
10 less than the amount of one death as
seSsment or PERIODICAL payment, the amount
of such deduction shall be made up within
six months thereafter Nothing con
tanned in the act shall be con
strued to permit any contract promising
any fixed cash payment to any living GER
titicate or policy holder. excepting in the
contingency of physical disability. Assign
ments of policy 10 persons having no in
surabe interest except for debt are void
An annual report from life associations tt
the auditor OF state is required. The
definition for accident companies is like tina
of life companies quoted above. Their re-
serve fund must be accumulated at the rat,
amounts to 81 for every s5.vUO of insurance
in force. 1t sets out In detail the items t.
be shown in the annual report by accident
| companies to the auditor. Policies must b,
paid within sixty days after the claim il
| proven under penalty of revocation of Ii
cense. Transfers of risks or reinsurance
| can only be accomplished with the approva
| of two-thirds of a meeting of the insured
| properly called. All associations are sub
Ject TO examination by the auditor at thei
| expense and on the other hand he is re
| quired to examine and certify at their re
! quest. In insolvency proceedings the audi
| tor cannot act arbitrarily, but must motif.
the attorney general, who must apply II
the courts for order requiring the com
| pany TO show cause why il should not b
| closed up. Foreign associations are ad
| mitted upon equal terms, with the provision
that they must accept service upon tn
| auditor and cannot conduct any form o
| business not authorized by this act. Falls
| statements by agents officers are made
misdemeanor. Money paid to beneficiarie
| is not liable to attachment. A scale of fee
| TO the State is provided for filing papers
| Retaliatory clauses permit the imposition o
/ fla. md foes rai ~
associations as are imposed by their State
| or countries upon those of Indiana.