The aegis & intelligencer. [volume] (Bel Air, Md.) 1864-1923, 1905-01-20

made i'll the Charter, Constitution an
; bylaws of this Company are not full
understood by policy-holders, in an Ell
deavor to explain the same we use tn
columns of the newspapers as the hes
method of reaching those interested.
In the first place, it must be borne il
mind that Mutual Fire Insurance Com
pany is a partnership in which the mem
bers are bound together for the purpos'
OF indemnifying each other for fire losses
In some Mutual Companies, no regular
annual income is collected, but spccia
assessments are made on policy holders
as losses occur. In others irregular an
nua' income is collected with which tc
pay losses and expenses, special assess
neats being made only when the regular
income is insufficient to meet the Com,
pany's needs. Upon the latter plan The
Hartford Mutual has been operated.
AS security for carrying out the Mutual
obligation of indemnifying each other
from fire losses, all Mutual Companies
have lien on the property covered by
their policies. This lien is, of course, en-
forciblc only in the event of the failure OF
the policy-holder to contribute his share
toward the purposes for which the Com
pany is organized. In nearly all Mutual
| Companies the character of the lien and
the method of its enforcement are the
| same
! The Hartford Mutual was organized in
| ! S43 under charter passed by the Leg
islature of Maryland in 1912, being chap
ter IA OF the Acts of Assembly of that
year. Under the provisions of that Act
each applicant for INSURANCE was required
to give his premium note for sum vary
ing with the amount and character of the
property insured. The interest on this
note ut 6 per cent. was collected each
year as the cost of the insurance. When
ever the income thus derived was INSULT
Gent to meet the losses and expenses, an
extra assessment on the premium note
was made. The amount of the extra
assessment collectible in any one year
was limited only by the amount of the
premium note. The notes were assess
able whenever, as often and in such
amounts as the demands on the Com.
pany required.
By Section 4 of our old Charter it was
provided that all notes which should be
given for premiums for insurance should
constitute and be deemed lien on any
real estate which might be insured in con-
sideration of such notes, which real estate
should be held liable for the full payment
of such notes, either wholly or in part, at
such time or times as the President and
Directors should demand, and all legal
charges that might be incurred in enforc-
ing payment thereof, in case of refusal or
neglect to pay by the drawers of such
notes. In case of refusal or neglect to
pay such notes, either wholly are inpart,
whenever and as often as might be de-
manded by the President and Directors
of the Company, the said President and
Directors might proceed to collect the
same or any part thereof in the same
manner as in the foreclosure of mort
gage on real estate. A similar plan was
contained i'll the Charters Of all other
Maryland Mutual Fire Insurance Com
panies.
Although for more than sixty years
this Company we'll performed its duty
toward the people OF Hartford and Balti-
more counties, it has recently become APP
parent that in order to properly care for
the public interests and to respond to the
demands of modern business conditions
certain changes in the Charter, Constitu-
ton and Bylaws should be made.
Many persons objected to the use of
promissory notes. The liability of men,
beers to assessment for the full amount of
the notes was found to be wholly unnec-
essary, and the character of the lien was
antiquated.
Accordingly just one year ago, after
conference with some of the members of
the Company who take an active interest
in its affairs, application was made to
the Legislature for an Amendment of our
Charter. In preparing the Amendment
great care was taken to make only such
changes as would bein the interest of the |
policy-holders.
Probably more attention has been paid
to the perfection of insurance methods |
aud legislation in the State of Massachu-
sets than in any other State of the
Union. Those who had charge of the
preparation of the Amendment believed |
that the people of Hartford and Baltimore /
counties were entitled to the best kind of
insurance that could be devised. They |
accordingly familiarized themselves with
the Massachusetts, plan of Mutual Insur-
ance and adopted in our new Charter the /
best features of the insurance laws of
that State.
Having been passed by the Legislature,
the Amendment was submitted to spe- [,
ciallv called members meeting on Sep |
TENDER &c, 1904, and after full discussion |
by those present was unanimously ap-
proved and accepted.
The leading features of the new Char
ter are as fOliOWs:
l. The Company is authorized to re-
insure any part of its risks in other Com |
panies and to accept reinsurance from |
other Companies.
2. Proper provision is made for the in
surance of property by the owners of linn
tied interests therein.
3. Applications can now be taken
from partnerships signed in the firm
name by one of the members, whereas /
when sealed notes were required each in /
dividual member was required to sign.
4. The life of policy Of insurance is |
limited to eight years, thus placing upon |
the assured the obligation to see that his .
property is re-surveyed and re-insured at /
reasonable intervals. This provision was I
suggested to overcome the difficulty we
have had in readiusting policies in secur
ing the members assent and signature to .
new papers,
5. The number of Directors is fixed at
eighteen, but the members are empow-
cred at any time to reduce this number
to not less than five.
G. At all members meetings each mem /.
Der is entitled to one vote, in person or
by proxy, for each policy held by him.
But Directors and officers are prohibited /
from either soliciting or voting proxies.
A seli-perpetuating administration is
thus avoided.
7. The Directors are empowered to
pass Bylaws which shall be valid and
subsisting until the next annual men,
bers' meeting.
8. The Directors are empowered to
prescribe the form of application and
policy and to fix the table of rates, sub
ject of course, to revision by the mem-
bers' meeting.