Title and Credit Guaranty Corporations. SS 177-178 177. Conditions requisite to commencing business of a credit guaranty corporation.-No credit guaranty corporation shall commence business before twenty-five per cent of its capital shall be paid in, nor until it shall have deposited with the superintendent of insurance the sum of one hundred thousand dollars as security for its policy holders. 178. Powers of credit guaranty corporations. Any such credit guaranty corporation shall have the right, power and authority to guaranty from loss, and to agree to pay to merchants, manufacturers, dealers and persons engaged in business and giving credit, the debt or debts owing to them, and to indemnify them from loss and to charge and receive therefor such a sum or per centum as the consideration for such agreement, guaranty and indemnity as shall be agreed upon between such corporation and the persons guaranteed, and to buy, hold, own and take an assignment of any and all claims, accounts and demands so guaranteed, and to hold, own and collect the same, and to enforce the collection thereof by action the same as the original holder and owner thereof might or could do; also to insure the payment of money for personal services under contract of hiring. No corporation transacting credit guaranty business in this state shall advertise any assets or capitalization which are not held at the sole and exclusive risk of such business. Any such corporation may use its capital stock or its funds accumulated in the course of its business to purchase or pay for any claim or demand, the payment of which it has or does guarantee; and such of its capital stock or funds as may not be so used shall be invested in the securities in which the capital and funds of insurance corporations are required by the provisions of this chapter to be invested. When an examination is made by the authority of the superintendent of insurance into the affairs of any credit guaranty corporation doing business in this state, or when such corporation renders a statement to the insurance department, there shall not be allowed as assets any investments which are not held as prescribed by law at the date of such examination or rendering such statement; but unpaid premiums on policies written within three months shall be admitted as available resources. In estimating its liabilities, there shall be charged, in addition to the capital stock and all outstanding claims, a sum equal to the total unearned premiums on the policies in force, calculated on the gross sum without any deduction on any ac count, charged to the policy holders on each respective risk. from the date of the issue of the policy. (As amended by chap. 387 of 1897, § 1, and chap. 140 of 1898, § 1.) $179-added 1901c. 677 ARTICLE VI. LIFE OR CASUALTY INSURANCE CORPORATIONS UPON THE CO-OPERATIVE OR ASSESSMENT PLAN. SECTION 200. Incorporation. 201. What corporations to be subject to this article. 202. Annual report. 203. Designation of principal office, and of person upon whom process may be served. 204. Foreign corporations. 205. Reserve or emergency fund. 206. Reincorporation of existing societies. 207. Visitation by superintendent; proceedings to restrain corporation from doing business. 208. Hearing thereon. 209. Corporations subject to this article; annual meetings; examınations; transfer of risk; reinsurance. 210. Payment of maximum amount of policy; notice of assess ment. 211. Charge of beneficiary. 212. Exemption from execution. 213. Penalties. 214. Exemption of certain societies and subordinate lodges, of Odd Fellows and Masons, from the provisions of this article. 215. Corporations may deposit securities with the superintendent of insurance. 216. Quorum. 200. Incorporation.-Nine or more persons may become a corporation for the purpose of transacting the business of life or casualty insurance, or both, upon the co-operative or assessment plan, fraternal or non-fraternal, by filing in the office of the superintendent of insurance a declaration signed by each of them and duly acknowledged, setting forth their intention to form a corporation for the transaction of life or casualty insurance, or both, upon the co-operative or assessment plan, the name of the proposed corporation, the place where its principal office shall be located within the state, the mode in which its corporate powers are to be exercised and of electing directors or other persons, by whatsoever name or title designated, who are to have and exercise the general control and management of its Co-operative Life and Casualty Insurance. § 201 affairs and of its funds, which election shall be in such manner as shall be prescribed by its by-laws, or in case of fraternal societies, by representatives chosen by subordinate lodges, councils or bodies, who shall be members of such societies and a majority of them citizens of this state. Such declaration shall have indorsed thereon or annexed thereto and as a part thereof, the sworn statement of three of such persons that at least two hundred persons eligible under the proposed laws of the corporation to membership therein have in good faith made application in writing for membership. If all the requirements of this chapter have been complied with, the superintendent shall file such declaration and record it with the certificate of the attorney-general, in a book to be kept for that purpose, and deliver to the corporation a certified copy of the papers so filed and recorded, with his license in writing to the corporation to engage in the business proposed in the declaration, which certified copy and license shall be filed in the office of the clerk of the county where the office of the corporation is to be located. Such corporation shall not commence the business of insurance until at least two hundred persons have subscribed in writing to be insured therein in the aggegrate amount of at least four hundred thousand dollars, and have each paid in two per cent on the amount of the insurance severally subscribed for in cash, and the same is deposited in bank to the credit of the mortuary fund to be held in trust for the benefit of the beneficiaries, and the superintendent of insurance shall have further certified that it has complied with the provisions of this chapter, and is authorized to transact business. 8 201. What corporations to be subject to this article.-Any corporation, association or society which issues any certificate, policy or other evidence of interest to, or makes any promise or agreement with its members, whereby, upon the decease of a member any money or other benefit, charity, relief or aid is to be paid, provided or rendered by such corporation, association or society to his legal representatives, or to the beneficiary designated by him, which money, benefit, charity, relief or aid is derived from voluntary donations or from admission fees, dues or assessments, or any of them, collected or to be collected from the members thereof, or members of a class therein, or interest, or accretions thereon, or accumulations thereof, or rebates from amounts payable to benficiaries or heirs; and wherein the money or other benefit, charity, relief or aid, so realized, is applied to or accumulated for the uses and purposes herein specified, or of such corporation, association or society, and the expenses of the management and prosecution of its business, shall be deemed to be engaged in the business of life insurance upon the co-operative or assessment plan, and shall be subject to the provisions of this article. Any such corporation, association or society, which issues any certificate, policy or other evidence of interest to, or makes any promise or agreement with, its members, whereby, upon the sickness or any other physical disability of a member, and not by reason of having attained a certain age, any money or other benefit, charity, relief or aid is to be paid, provided or rendered by such corporation, association or society to such member or beneficiary designated by him, which money, benefit, charity, relief or aid is derived from voluntary donations or assessments or admission fees, dues or assessments, or any of them, collected or to be collected from the members thereof, or members of a class therein, and interest and accretions thereon; and wherein the money or other benefit, charity, relief or aid is applied to or accumulated for the uses and purposes herein specified or of such corporation, association or society, and the expenses of the management and prosecution of its business, shall be deemed to be engaged in the business of casualty insurance upon the cooperative or assessment plan and shall be subject to the provisions of this article. § 202. Annual report. Every such corporation, association or society doing a life or casualty insurance business, or both, upon the co-operative or assessment plan, as herein defined, shall, on or before the first day of March in each year, make and file with the superintendent of insurance a report of its affairs and its operations during the year ending on the thirty-first day of December immediately preceding, which report shall be in lieu of all other reports required by this chapter. Such reports shall be verified by such of the officers of the corporation, association or society as the superintendent may require and shall contain answers to the following questions: 1. Number of certificates or policies issued during the year or members admitted. 2. Amount of indemnity effected thereby. 3. Number of death losses. Co-operative Life and Casualty Insurance. 4. Number of death losses paid. § 202 5. The amount received from each assessment in each class for the year. 6. Total amount paid policy-holders, beneficiaries, legal representatives or heirs. 7. Number of death claims for which assessments have been made. 8. Number of death claims compromised or resisted, and brief statement of reason. 9. Does society charge annual dues? 10. How much on each one thousand dollars annually of per capita, as the case may be? II. Total amount received, and the disposition thereof. 12. Does society use money received for payment of death claims to pay expenses of society, in whole or in part, and if so, state the amount so used? 13. State total amount of salaries paid to officers. 14. Does society guarantee fixed amount to be paid, regardless of amount realized from assessments, dues, admission fees and donations? 15. If so, state amount guaranteed and the security of such guaranty. 16. Has the society a reserve fund? 17. If so, how is it created, and for what purpose, the amount thereof, and how invested? 18. Has the society more than one class? 19. If so, how many, and the amount of indemnity in each. 20. Number of members in each class. 21. If organized under the laws of this state, state under what law and at what time. 22. If organized under the laws of any other state, state such fact and the date of organization. 23. Number of policies of membership lapsed during the year. 24. Number in force at beginning and end of year in each class, if more than one class. 25. Aggregate maximum, minimum and average age of membership in each class in the society. 26. The assets applicable to life or casualty insurance other than reserve fund, and how invested. 27. Amount received from all sources for life or casualty insurance and the disposition thereof. |