The Baltimore County union. [volume] (Towsontown, Md.) 1865-1909, 1905-01-21


Believing that the changes recently made in
the Charter, Constitution and Bylaws of this
Company are not fully understood by policy
holders, in an endeavor to explain the same, we
use the columns of the newspapers as the best
method of reaching those interested. se
In the first place it must be born in mind that
Mutual Fire Insurance Company is partneEF
ship in which the members are bound together.
for the purpose of indemnifying each other for
fire losses. In some Mutual Companies no regu-
lar annual income is collected but special ASSESS
ments are made on policy holders az losses occur;
In others q regular annual incOmef1s collected
with which to pay LOSSES and expenses. special
assessments being made only wheA the regular
needs. Upon the latter plan The Hartford Mn-
tual has been operated.
AS security for carrying out the mutual obli-
cation of indemnifying each other from fire
losses ali Mutual Companies have a lien on the
property covered by their policies. This lien Isl
Of course, enforcible only in the event OF the
share toward the purposes for which the Com
pauy Is organized. In nearly all Mutual Com
panies the character Of the lien and the method
The Hartford Mutual was organized in 1913
under a charter passed by the Legislature ct
Of Assembly of that year. Under the provisions
of that Act each applicant for insurance was re-
quired to give his premium note for sum vary
ing with the amount and character of the prop
erty insured. The interest on this note at 8 per
cent was collected each year as the cost of the
insurance. Whenever the income thus derived
was insufficient to meet the losses and expenses
an extra assessment on the premium note was
made. The amount OF the extra assessment cor
lectable in any one year was limited only by the
amount of the premium note. The notes were
assessable whenever, as often and in such
amounts as the demands on the Company re-
qnired.
that all notes which should be given for pre-
miums for insurance should constitute and be
deemed q lien on any real estate which might be
insured in consideration of such notes, which
real estate should be held liable for the full pay
ment of such notes. either wholly or in part, at
such time or times as the President and Direc-.
tors should demand, and all legal charges that
might be incurred in enforcing payment thereof
in case of refusal or neglect to pay by the draw
ers OF such notes IN ease Oh EeIHsa OF neg sT
whenever and as often as might be demanded by
the President and Directors of the Company,
the said President and Directors might proceed
same manner as in the foreclosure of mort
gage on real estate. A similar plan was con-
tanned in the Charters of all other Maryland
Mutual Fire Insurance Companies.
Although for more than sixty years this Com
pany well performed its duty toward the people
of Hartford and Baltimore counties. 1t has re-
Gently become apparent that in order to prop
erly care for the public interests and to respond
to the demands of modern business conditions
certain changes in the Charter, Constitution and
By Laws should be made. Many persons OBJ
jected to the use of promissory notes. The
liability Of members to assessment for the fuil
necessary and the character of the lien was anti
quated.
Accordingly, just one year ago, after a confer
onaa with a0rna nf the mem harp 0f the Cornnany
who take an active interest in its affairs, appli
cation was made to the Legislature for an amend
ment great care was taken to make only such
changes as would be in the interest OF the policy
Probably more attention has been paid TO ne
perfection of insurance methods and legislation
In the State of Massachusetts than in any other
the Preparation of the amendment believed that
the people of Hartford and Baltimore counties
were entitled to the best kind of insurance that
themselves with the Massachusetts, plan Of Mu-
tual Insurance, and adopted in our new Charter
the best features of the insurance laws of that
State. "a.
Having been passed by the Legislature the
amendment was submitted to q specially called
members meeting on September 18th, 1904. and
after full discussion by those present was unani-
mously approved and accepted.
The leading features of the new Charter are as
follows:
l. The Company is authorized to re-insure any
part of its risks In other companies, and to
accept reinsurance from other companies.
2. Proper provision is made for the insurance
of property by the owners Of limited in
terests therein. ag
8. Applications can now be taken from partner
ships signed in the firm name by one of the
members, whereas when sealed notes were
required each individual member was re-
quired to sign.
4. The life of policy of insurance is limited to
eight years. Thus placing upon the as
sured the obligation to see that his property
is re-surveyed and re-insured at reasonable
intervals. This provision was suggested to
overcome the difficulty we have had In re-
adjusting policies in securing the MEM
ber's assent and signature to new papers.
s. The number Of Directors is fixed ateighteen.
but the members are empowered at any
time to reduce this number to not less than
five. u
9. At all members meetings each member is
for each policy held by him. But Direc-
tors and officers are prohibited from either
soliciting or voting proxies. A self-per-
petuating administration is thus avoided.
T. The Directors are empowered to pass By
Laws which shall be valid and subsisting
until the next annual members meeting.
8. The Directors are empowered to prescribe
the form of application and policy and to
fix the table of rates, subject of course to
revision by the members meeting.
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