The Saint Paul globe., 1899-04-27
in and become the property of the city
so Incorporated.
Sec. 3. This act shall take effect and be
in force from and after it's passage.
Approved April 21st, 1899.

AIN AL 10 dIueflu cudptGT one uuHuTeQ
and eighty-six QS6) Of the general laws
of the year eighteen hundred and
eighty-five QSS5), entitled, IAN act au-
thorizing the formation of companies
for mutual Insurance. against loss
and damage by hall, tornadoes, cyclones
and hurricanes, as amended by chapter
one hundred and four 900 of the gen.
eral laws of eighteen hundred and nine
ty-three QS93)'
Be it enacted by the Legislature of the
State of Minnesota:
Section l. That section seven Cd of
chapter one hundred and eighty-six QS6)
of the general laws of the year eighteen
hundred and eighty-fve QSS5), be and
the same is hereby amended so as to read
follows:
Sec; 7. Such corporation before com
mencing its business shall prepare and
duties and compensation of it's officers
and directors, the manner, time and
place of electing them, the territory to
which its business shall be confined, the
scheme and manner of transacting its
business. and such other rules and regu-
lations as may be deemed essential to the
government of the corporation and the
management of It's affairs.
Such bylaws shall not be> so amended
as to increase the salary or compensation
of the directors or any officer or to
change the territorial limits to which the
business of the corporation is confined,
except by majority vote of all the
members present at the annual meeting
of the corporation, nor shall the bylaws
be otherwise amended, changed, suspend
ed or repealed, except in the manner
therein set forth, and copy of the same
and any subsequent amendment thereto
snail be forwarded to the insurance COM
missioner for his approval, and in case he
approves the same, he shall file and safe
~ keep such bylaws and amendments
in his office.
Sec. 2. That section nine (9) of said
chapter one hundred and eighty-six Q86)
be and the same is hereby amended so
as to read as follows:
Sec. 9. Every holder of a policy of such
insurance, during the time said policy Is
in force and effect, shall be a member
of the corporation: he shall have the
right while such policy is in force, to
participate in the meetings of it's mem
pers and IN the election of its directors
and shall be eligible to election to any
Office In such corporation. He shall be
Liable to the corporation for his pro rata
share of all losses and damages by hall,
tornadoes, cyclones and hurricanes, sus-
tanned by any other member holding a
policy Of insurance then in force; and
also Tor his pro rata share of the >eX-
penses or the management of the business
or such corporation, and shall be bound
by and subject to the bylaws of such
corporation.
Provided. however, that it shall be un-
lawful for any member vr such corpora
ton to authorize any person to vote
Tor MIN by proxy unless the person so
authorized is resident of the same
county as the member giving the proxy
Provided, however, that the president
and secretary may each hold Twenty-Five
IL
their residences. No person shall hold
more than twenty-five !25( proxies at one
time, and no proxy shall be valid sor
more than one % year from It's date.
Provided further, that every applicant
Tor insurance in any mutual hail in
surance company doing business in this
OF the company to which he applies for
such insurance, at the time he makes
such application.
Sec. 3. That section ten dW of said
chapter one hundred and eighty-six QSS
be and the same is hereby amended so as
to read as follows:
Sec. III. The corporation shall in and
by its bylaws provide for the manner In
which such insurance shall be effected.
and the terms and conditions thereof,
the time and manner in which losses by
IT sustained under Its policy of insurance
snail be determined, proved, adjusted and
paid, and fix the limit of liability of the
assured not to exceed five 60 per cent on
the amount of insurance. Said corpora
ton may in and by it's. bylaws provide
for guaranty fund, and whenever the
total amount of losses and expenses in
the hail department in any one year shall
exceed the net amount collected from a
IulI assessment duly made in that year.
there may be taken from the guaranty
fund of the company sufficient sum to
pay all losses and expenses in full, not
exceeding, however, seventy-fiVe (75) per
cent OF such fund; provided, that If the
amount thus derived shall not be suffi-
clent to pay all losses in full then the
same shall be paid pro rata. and such
payment shall be in full of same. The
bylaws of said corporation shall provide
for the time and manner In which assess
ments shall be made upon its members
for their respective pro rata share Of all
l9sses, expenses and guaranty fund.- and
the t1me manner and place in which, and
the person to whom such assessments
shall be paid. 1t shall in and by its by
laws nix the compensation of officers to a
certain stipulated salary, ard the paw
ment OF any commissions to such officers
In addition thereto shall be prohibited.
1t shall also in and by its bylaws provide
such other regulations, terms and condt-
tons as may be necessary for effectively
and fully carrying out it's schemes of in
surance; and the bylaws in force at the
time Of the date of any policy of ins,Ir-
ance issued by such corporation shall
nave the force and effect Of law in the
determination of all questions and claims
arising under such policy between the
nolder thereof and said corporation and
IL such company shall fail to pay all Ie-
g1t1mate losses, said company shall be
deemed to be insolvent, and the insur-
ance commissioner shall be empowered to
proceed against the same in the same
manner as provided by law against insoI-
vent companies.
Sec. 4. That section seventeen 90 of
SAID chapter one hundred and eighty-six
QSb), as the same Is enacted and added
to said chapter by section four az of
chapter one hundred and four GOD Of the
general laws of eighteen hundred ana
nlnety-three QS5S), be and the same IS
hereby amended to read follows:
Sec. II. The commissioner of Insurance.
Is hereby authorized and empowered To
address any inquiry to such corporation
or to the secretary thereof in relation to
its doings or condition, or any other mat
ter connected with its transactions and
1t shall be the duty Of any such corpora
ton so addressed to reply promptly in
writing to such inquiry. If said corpora
ton or any officer thereof to whom env
letter of inquiry is addressed shall will
1ully neglect or fail to make a full and
true report in response to such inouirv
as may relate to It's manner of doing busi
ness, or to other matters connected with
or relating to its business transactions or
II said corporation shall carry on its bust
ness In a fraudulent, eXtravagant and
unsafe manner, and so as not to afford to
us pollcy holders protection against loss
or damage to their crops, or if said cor
porauon violates the provisions of its by-
laws or any of the provisions of this act.
said commissioner Of insurance shall be-
empowered and Is hereby authorized to
revoke the authority of said corporation
to do business in this state, and, when
ever the insurance commissioner shall
have reason to doubt the solvency of any
such corporation or If the insurance COM
missioner shall have reason to believe
that any such corporation is doing bust
ness contrary to any Of the provisions of
this act, he may, at the expense Of such
corporation, cause an examination of it's
books and papers to be made, and if in
his judgment such examination estab-
fishes the fact that such corporation Is
not financially sound or is conducting
It's business fraudulently, or is violating
any of the provisions of this act, he shall
institute or cause to be instituted the
necessary proceedings under the laws of
this state to close up the affairs Of such
corpora ton.