St. Paul tidende. [volume] (St. Paul, Minn.) 1902-1928, 1913-05-02

or. levied and the payments Of the actual cost
and all proceedings Of every kind and descrip:
ton had Hereunder. including the service OF
al 5s1a' net,se snd RrG Sss1sesd fG e By By 1 Jay; s ans IN hsr sai2
force and effect to tho same extent as though
all or any Of such proceedings had been con-
du xppros anS A nsd e q, 1 1s{s. BY law
CHAPTER 4ek-H. +. No. 1881.
AN c authorizing and regulating certain
classes Of indemnity contracts empowering
corporations to mako such contracts and
fixing certain fees. and the penalty for vio-
lation thereof.
Be it enacted by the Legislature OF tho State
Of Minnesota: '
Section 1. Individuals, partnerships and
eorporations OF this s.! State o hereby desi tg tee
trscts with each other. or with indiSlaua1s
and countries. providing Indemnity among
themselves from any loss which may be IN
sured against under other provisions of the
Sec. 2. Such contracts may pc executed by
an attorney, agent OF other representative.
hna act dss'f foa such At s1pseyiD. as'' authorized
Sec. 8. Such Subscribers SO contracting
among themselves shall through their Attor.
ney file with the Insurance Commissioner OF
this State a declaration verified by the oath
Of such Attorney, setting forth:
(a) The name or title Of the office at which
d denim n contracts. Said name or title shall
not be SO similar to any other name or title
previously adopted by a similar organization
ton as in the opinion Of the Insurance Com
missioner Is calculated to result In confusion
or deception.
() The kind or kinds Of insurance 10 be
effected or exchanged
() A copy Of the form Of policy contract
an td} q 4 Go eop ~ Of the form nAe Of power OF at
torney or other authority Of such Attorney
under which, such insurance is to DO effected
(e) The location Of tho office or Offices
from which such contracts or agreements are
to be issued.
indemnity upon at least one hundred separate
Half Million IS ,5oo, 10000, Dollars, as rep
applications, to become concurrently effective,
or, in case Of Liability or Compensation In
. su1anc &C. F., covering owe ng. a 4 Total M pay roll Il, Of fod net 0ao Less es
Dollars.
() That there is on deposit with such At
toEEss 9 and a,m aSa al not for 3esz the than payment Ewsnit-oS Of
Thousand &25,ooo.oo) Dollars.
Provided, however. that In case Of liability
or compensation insurance all subscribers
ness and have an annual pay roll in Mime
sofa Of not less than -Four Millions &4,ooo,-
9 fo9os ;S9) an p0l a1a,,a aas f e DEPOSIT fgs nsv with such Of losses Ass
Ss1oo, o o.o0S Dollars
Sec. 4: concurrently with tho fling of the
Declaration provided for by the terms Of Sec
ton 8 hereof, the Attorney shall file with the
Insurance Commissioner an instrument in
conditioned that upon the issuance Of Certih-
Gates of Authority provided for IN Section Ten
hereof fse dnza ss9n'ss S CT gg1ssEa @a N be all had suits aDG in
this state arising out Of such policies, con-
tracts or agreements, which service shall be
valid and binding upon all Subscribers ex-
changing at any time Reciprocal or Inter
Insurance contracts through such Attorney.
Three copies Of such process shall be served
copy, forward ono copy to said Attorney and
return one copy with his admission Of service.
Sec s. There shall be filed with the 1nsur-
Attorney a statement under the oath Of such
Attorney showing tho maximum amount OF
Attorney shall, whenever ana as often as the
same shall be required. file with the 1nsur-
ance Commissioners 9 statement verified by
the he commerciai rating Of such subscribers as
shown by the reference book Of a CONNER
Thdus AgdnG gup sezaas at .n Least that 9nf fro Mun aaea
possession it appears that no subscriber has
assumed ON any single risk an amount greater
subscriber.
SEQ. g. There shall at all times be main
tanned as a reserve a sum in cash or con-
%vertible securities equal to fifty per cent of
the net annual deposits collected and credited
having one year or less to run and pro rata
on those for longer periods. Net annual de-
posts shall be construed to mean the adj
vance payments of Subscribers after deduct
ing therefrom the amounts specifically pro-
vided in the Subscribers agreements, for ex-
R fsan rw saia su% r sha j ad 9 3s2s t ,oos' oS 3 b Isas
lars, and If at any time fifty per cent Of the
deposits SO collected and credited shall not
their Attorney for them. shall make up any
deficiency.
Sec. 4. Such Attorney shall mako a report
to the Insurance Commissioner for each-cal-
endar year, on the first day Of March showing
the financial condition Of affairs at the office
where such contracts are issued and shall
ports as may be required.
Provided. however; that .ush Attorney
ratio.
The business affairs and assets Of such Or
ga1izations shall be subject to examination
by the Insurance Commissioner.
Sec. 8. Any corporation now or hereafter
organized under the laws Of this State shalh
in addition to the rights, powers and fran
chises specified in its Articles Of Incorpora-
ton have full power and authority to ex-
character herein mentioned. The right to ex-
change such contracts is hereby declared to
be Incidental to the purposes, for which such
corporations are organized and as much grant
ed as the rights and powers expressly con-
ferred.
Sec. Q. Any attorney who shall. except for
the purpose of applying for Certificate of Au-
thority as herein provided, exchange any con-
tracts Of indemnity OF the kind and charac-
ter specified in this Act, or directly or in
directly solicit or negotiate any applications
for same without first complying with the
foregoing provisions shall be deemed guilty
of a misdemeanor, and. upon conviction there
of, shall be subjected to a fine Of not less
than Ono Hundred (S1O0.O0) Dollars nor more
than One Thousand Isl. 100000 Dollars.
Sec. 10: Each Attorney by or through
for indemnity Of the character referred to in
this Act shall procure from the Insurance
Commissioner annually a Certificate Of Au-
thority stating that all the requirements Of
this Act have been compiled with, and upon
such compliance and the payment Of the
fees required by this Act the Insurance
Commissioner shall issue such Certificates. In
case of a breach Of any Of the conditions
imposed by the provisions Of this Act the In
surance Commissioner may revoke the Ger
|tifcate Of Authority issued hereunder.
Sec. II. Such Attorney, in lieu Of all
taxes, State. County and Municipal. shall
pay to the State with the fling Of each an
nual report. as an annual license fee 2 per
cent Of the gross premiums or deposits for
tho preceding calendar year, deducting all
amounts returned to Subscribers or credited
to their accounts; and he shall pay a fling
Sec. II, Except as herein provided no law