Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1919-04-23

ASSOCIATIONS TO DO WORK
MEMS COMPENSATION 1NSUR-
AlJCE.
1t is hereby enacted by the General
Assembly of the State of Vermont:
Section I. Mutual Associations All
thorized Employers who have accepted
the provisions of the workmer's COM
pensation act and are bound to pay COM
pensation to their employees there
under, may, with the approval of the
insurance commissioner, associate them
selves in accordance with the law for the
formation of corporations without CAPT.
tai stock for the purpose of establishing
and maintaining mutual associations to
insure their liabilities under such act.
Sec. 2. 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 dehni-
ton of its 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 certificate in form
and substance acceptable to the insur
ance commissioner has been approved
by and filed with the secretary of state,
the incorporators shall forthwith cause
copies thereof to be filed in the office
of the insurance commissioner and Of
the commissioner of industries.
Sec. 3. Membership. Membership in
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-
,ot, hal h,,o t1tA
bylaws to provide for the admission,
suspension, withdrawal or expulsion Of
members
Sec 4. Control of Association. Ex-
cept 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
sioner 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. S. Policies. A policy shall not
be 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
mediately upon their authorization, nor
shall 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. E. 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 a manner prescribed by the bylaws
of the association, provided each men,
Der shall be entitled to cast at least
one 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
bred fifty employees tc whom he is
bound to pay compensation under the
workmens compensation act shall be
entitled to two ballots, and that each
additional one hundred and fifty en-
ployees shall entitle such member to an
additional ballot, provided, however
that no member shall be entitled to
cast more than ten ballots.
Sec. 7. 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 tina,
purpose its inspectors shall have free
access to all such premises during regu,
lar working hours.
Sec. 8. 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 tc
cover losses incurred and current cost
The premium rate on each policy shall
prevail for full year but annually ma,
be changed by the directors The cur
rent cost herein specified shall be sucl
an amount as is sufficient to cover tn,
losses and expenses incurred and
premium reserve equal to fifty per cen
of all premiums and assessments leviet
or paid. Members of such association
shall be required to pay yearly in ad
vance cash premiums and in addition
thereto an amount in negotiable note
or cash sufficient to maintain reserv
equal to that required of other com
panies doing the same class of business
Notes shall be payable in whole or il
part on the vote of the directors of tn
association as such payments may b
required to meet estimated losses o
expenses in excess of the current cos
and to meet claims covering losses no
payable within the same fiscal yea
within which the claim originated, Til
directors may fix rates OF interest o.
either notes or balances.
Sec. O.. Assessments. If an associ.
/ ton has not sufficient funds for the pay
ment of losses incurred, reserves an
expenses, it shall make an assessment
for the amount needed to pay sue
losses, reserves and expenses upon tn
members in proportion to their severe
pay rolls and rates.
Sec TO- Investments The funds c
such association shall be invested by tn
directors in the same class of securite
in which the funds of insurance con
panies may be lawfully invested,
Sec II. Bylaws and Regulation
Such association may, subject to tn
approval of the insurance commissions
determine the premiums, continger
liabilities, assessments, penalties an
dividends of its members and enforc
or administer the same. 1t may ais
make and amend bylaws or regulation
not inconsistent with its certificate {
ACCOMMODATION for the DrOmDt ecOnon