The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-02-25
FOR KANSAS MUTUAL.
Bill to Legalize Reorganization
Is In the Senate.

Senator Mcknight of Geary county
has introduced a bill under which, if
it passes, the consolidation of the KAN
sas Mutual Life Insurance company
with the Kansas Union Life viii be
legalized beyond question. and the two
companies can 60 ahead with the plan
to reOrganize the old Mutual company
which is now tied up in the hands of
policy holders who does not approve OF
the union of the two companies on the
new basis. The final section of the bill
authorizes the trustees Of a. company
which is in receiverslip to exercise the
duties of directors to carry out the
plan of reorganization- The bill, which
is self explanatory, says:
Section 1. That any life insurance
company or association, organized and
authorized to do business under and
by virtue of the laws of the state Of
Kansas on the mutual, or cooperative
plan which shall have for the period
of five years been engaged in the busi-
ness of making insurance on the lives
of individuals and issuing policies
agreeing to pay fixed sum of money,
not conditioned upon realizing the
same from assessments upon the men,
bership or which has been engaged
for said period of time in what is COM
monty known as the old line, level
premium, legal reserve plan of life in
surance or which has issued any out
standing policies or any other kind or
class which are not within the terms
of chapter 131 of the laws of 1888, may,
by resolution adopted by its board Of
directors confirm and ratify such pol
icies and thereafter it shall not be
lawful for any such company or assocl-
alton, its successors or assigns TO de-
fend against such policies on the
ground that said company or assocla-
ton had not the power under the. laws
OF Kansas to issue the same
Section ? provides that certified COPY
of the resolution of the directors sl1aH
be filed with the superintendent OF IN
surazce-
section 8. Whenever the directors OF
anv mutual or cooperative life lnsur-
ance company or association organized
under the laws of the state of Kansas
shall deem it to be the best interests OF
the policy holders to suspend business.
it may secure propositions from other
solvent life insurance corporations au>
thOrized to do business in the state OF
Kansas. whether foreign or domestic
and whether companies possessing a
capital stock or organized on the mu-
tual plan. to reinsure its policies. Ihat
upon securing such proposition or propo-
sitions the same shall be formulated
and the substance transmitted by mail
to each policy holder and a meeting oil
the policy holders shall be called for
the purpose of determining whether Sald
company shall go into liquidation and
also of voting upon said propositions of
reinsurance If at such meeting two
thirds of the number of the holders OF
outsta nding policies of such company or
association shall vote. either in person
or by proxy, to go into liquidation and
to accept any one of said propositions
for reinsurance. the board of directors
may make a contract in accordance
Herewith and upon due execution there
of transfer and turn over to the said
reinsuring company so much Of the
assets of said mutual or cooperative in
surance company or corporation as are
embraced in said proposal or contract
as consideration therefor; provided,
that any dissenting policy holder may
withdraw his equitable share of the
assets of said corporation in lieu of ac-
ceptng said reinsurance contracts.
Section a. That if any mutual or CO.
operative life insurance company or as
sociation is now or shall hereafter be
in the hands of receivers or trustees ap-
pointed by any court Of competent juris-
dictiOn the said receivers or trustees
shall exercise the functions and per
form the duties of directors prescribed
by section 8 of this act and execute the
contract therein referred to.