Weekly Caledonian. (St. Johnsbury, Vt.) 1919-1920, 1919-04-23
NO. 1856


Section /. Mutual Associations Au-
thorizcd. Employers who have accepted
the provisions of the work1nens COM
pensation act and are bound to pay com
pcnSation to their employees there
under. may, with the approval of the
Insurance commissioner, associate them
selves i'll accordance with the law for the
formation of corporations without capi-
tai stock for the purpose of establishing
and maintaining mutual associations to
insure their Liabilities under such act
Sec. ;. Approval by Insurance Com
missioner. The insurance commissioner
may require the incorporators of such
association to include in their proposed
certificate of incorporation such lawful
provisions for the regulation of the
affairs of the association and the deflni-
ton OF It's powers and the powers of its
officers, directors and incorporators as
shall satisfy him that it is well designed
and wisely adapted to its proposed pur-
poses. When such a certificate in form
and substance acceptable to the insur-
ancc commissioner has been approved
by and filed with the secretary OF state,
the mCorporatorS shall forthwith cause
copies thereof to be filed in the Office
tI lflt NiSul dllCC commissioner dllu VI
the commissioner of industries
Sec. B. Membership. Membership i'll
such association shall be limited to such
employers as are liable for compensa-
ton TO their employees under the work
mems compensation law and such asso-
citation shall have power by appropriate
bylaws to provide for the admission,
suspension, withdrawal or expulsion OF
members.
Sec T. Control of Association EN-
Govt as herein otherwise provided such
association shall be subject to the same
regulations and control as is or may be
imposed by law upon other corporations
or associations taking similar risks in
this state, and the insurance commits
soner shall have such jurisdiction and
power over such association as may be
now or hereafter given by the insur-
ance laws of this state.
Sec. ). Policies, a policy shall not
he issued by such association until
membership in such number and with
such numbers of employees as the in
surance commissioner may decide will
give fair diffusion OF risks shall have
obligated themselves to take policies i'm
mcdiately upon their authorization, nor
shall a policy be issued except such as
the insurance commissioner shall have
approved as conforming in all respects
to the requirements of this act. If at
any time by the retirement of members,
reduction of numbers of employees or
other cause the membership of any asso-
citation shall appear to the insurance
commissioner no longer to afford fair
diffusion of risks, he may suspend or
forbid the further issue of policies until
the former conditions of the association
have been restored
Sec g. Officers and Voting. The
affairs of an association incorporated
under this act shall be managed by such
officers and directors as may be chosen
in manner prescribed by the bylaws
of the association. provided each mem
Der shall be entitled to cast at least
ono ballot in all elections and votes and
that member who has had for six
months an average of more than one
hundred and not more than two hun
drcd fifty employees to whom he is
bound to pay compensation under the
workmcn's compensation act shall be
entitled to two ballots, and that each
additional one hundred and fifty en-
ployces shall cntitle such member to an
additional ballot, provided, however,
that no member shall be entitled to
cast more than ten ballots.
Sec. T. Safety Rules. Such associa-
ton shall have power to prescribe and
enforce reasonable rules for safety regu-
lationS on the premises of its members,
subject, however, to the approval of the
commissioner of industries, and for that
purpose its inspectors shall have free
access to all such premises during regu-
lar working hours.
Sec. g. Premium Rates. Such asso-
citation shall have power to determine
the premium rates for each occupation
or risk insured by it and to prescribe
rates of cash premiums sufficient to
cover losses incurred and current cost
The premium rate on each policy shall
prevail for full year but annually may
be changed by the directors. The cur
rent cost herein specified shall be such
an amount as is sufficient to cover the
losses and expenses incurred and Il
premium reserve equal to fifty per cent
of all premiums and assessments levied
or paid. Members of such association
shall be required to pay yearly in adj
vance cash premiums and i'll addition
thereto an amount in negotiable notes
or cash sufficient to maintain reserve
equal to that required of other COM
panies doing the same class of business.
Notes shall be payable in whole or i'll
part OH the vote of the directors of the
association as such payments may be
required to meet estimated losses or
expenses in excess of the current cost
and to meet claims covering losses not
n ~ fiscal
within which the claim originated. The
directors may fix rates OF interest OH
either notes or balances.
Sec 9. Assessments If an associa-
ton has not sufficient funds for the pay
ment of losses incurred, reserves and
expenses, it shall make an assessment
for the amount needed to pay such
losses, reserves and expenses upon the
members i'll proportion to their several
pay rolls and rates.
Sec 10 Investments. The funds of
such association shall be invested by the
directors in the same class of securities
i'll which the funds of insurance COM
panies may be lawfully invested.
Sec. II. Bylaws and Regulations.
Such association may, subject to the
approval of the insurance commissioner, |
determine the premiums, contingent
liabilities, assessments, penalties and
dividends of its members and enforce
or administer the same 1t may also
make and amend bylaws or regulations,
not inconsistent with its certificate of
incorporation. for the prompt, economi- |
cal and safe conduct OF its affairs. All |
bylaws and regulations Of such asso-
citation except safety rules made under |