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the said company shall be competent to transact the business for which it shall have been incorporated.*

Ibid, sec. 145. 1888, art. 23, sec. 113. 1868, ch. 471, sec. 97. 153. Any corporation incorporated under this Article for insurance purposes, except for the insurance of the lives of persons, is hereby authorized to include in its certificate of incorporation as among the other objects and purposes for which said corporation is formed, the following, that is to say: to guarantee the payment, punctual performance, and collection of promissory notes, bills of exchange, contracts, bonds, accounts, claims, rents, annuities, mortgages, choses in action, evidences of debt, and certificates of property or value, and the titles to property, real or personal, on such terms as may be established by the board of directors of said company; to receive on storage, deposit or otherwise, merchandise, bullion, specie, plate, stock, bonds, promissory notes, certificates and evidences of debt, contracts or other property, and to take the management, custody and charge of real or personal estate or property, and to advance money, securities and credits upon any property, real, personal or mixed, on such terms and with all such powers of sale and other disposition thereof as shall be established by the charter or by-laws of such corporation; provided, that the corporate title of any company having among its other purposes those enumerated in this section, shall designate the same as a security, as well as an insurance company.

1912, art. 23, sec. 154. 1904, art. 23, sec. 146. 1888, art. 23, sec. 114. 1868, ch. 471, sec. 98. 1914, ch. 489, sec. 154.

154. Corporations may be formed under the provisions of this Article, for insurance purposes, and may be formed either as mutual or stock companies or as mutual or stock companies combined, as shall be determined and declared in the certificate of incorporation of any such company.

1914, ch. 489, sec. 154A.

154A. No mutual insurance association or company hereafter incorporated under the provisions of this Article, for the purpose of insuring employers against loss or damage resulting from accident to or injury suffered by an employee or

See Article 23, section 29.

other person and for which the employer or person insured is liable, or the liability of the employer to pay compensation to his employees or for insuring payment of the compensation to injured employees or their dependents under any Workmen's Compensation Law,or against loss or damage caused by a truck, wagon or other vehicle propelled by steam, gas, gasoline, electric, mechanical or other power or drawn by horses or mules used in trade or manufacture and owned by any such employer or person to any other person, or to the property of another, for which loss or damage the employer or person insured is liable, or for insuring sick, old age, non-employment or other benefits to such employees, shall begin or transact any such business of insurance unless and until at least twenty employers, employing not less than two thousand employees, have be come members of such mutual insurance association and applied for and agreed to take insurance therein, covering the liability of such employers to their employees for accidents to or injuries suffered by such employees and assuring payment of compensation to their employees or the dependents of their employees for such injuries, nor until such facts have been cer tified under oath to the State Insurance Commissioner by at least three of the persons signing the certificate of incorporation of such association and a license authorizing such association to begin writing the insurance specified in this section has been issued by the State Insurance Commissioner. Before granting any such license it shall be the duty of the State Insurance Commissioner to ascertain to his satisfaction that the membership list of the association is genuine, and that every member thereof will take the policies as greed by him within 30 days of the granting of the license to such association to issue policies. If at any time the number of members falls below twenty, or the number of employees who are employed by the members of any such association falls below two thousand, no more policies shall be issued by such association until other employers have made bona fide applications for insurance therein, who, together with the existing members, amount to not less than twenty employers, who employ not less than two thousand employees, and in the event that such applications for insurance shall not be obtained within a reasonable time, to be fixed by

the State Insurance Commissioner, said Insurance Commissioner may take the proceedings against such association under and as provided in sub-section or division seventh of Section 178 of this Article (Bagby's Code).

The members of any such mutual insurance association shall be policyholders therein or contributors to the fund, and when any member ceases to be a policyholder or contributor to the fund he shall cease, at the same time, to be a member of such association. A corporation, partnership, association or joint stock company may become a member of such mutual insurance association and may authorize another person to represent it in any such insurance association, and such representative shall have all the rights of any individual member. Any person acting as employer in the capacity of a receiver or trustee may insure in such association, and as such receiver or trustee may assume the liabilities and be entitled to the rights of a, member, but shall not be personally liable upon such contract of insurance.

Any such insurance association may borrow money or assume liability in a sum sufficient to defray the reasonable expenses of its organization.*

Ibid, sec. 154B.

154B. Any such mutual insurance association shall have not less than nine directors, and such officers as shall be provided in the certificate of incorporation or by the by-laws made by the members. The directors shall be elected annually by the votes of the members. All except three of the directors of any such association elected after its organization is completed and it is authorized to begin issuing insurance policies shall be members of such association. All the officers except the secretary, assistant secretary and the actuary must be members of the Board of Directors.

Ibid, sec. 154c.

154c. At all meetings of the members of the association each employer member shall have one vote and one additional vote for every five hundred employees or major fraction thereof,

* See Workmen's Compensation Act or Article 101, herein, and also Article 23, section 178, sub-sections 11 to 14, inclusive.

covered by the policy held by such employer member in the association, provided that no such employer member shall have more than ten votes. The number of votes of an employer member shall be determined by the average number of employees at work and covered by said member's policy in the association during the last six months from a date not less than ten days immediately prior to the date of any such meeting. Before any such employer member shall be permitted to cast more than one vote at any meeting of members he shall file with the secretary an affidavit showing the average number of employees at work during the preceding six months covered by the employer's policy of insurance.

If any of the employees of any such employer members shall contribute to the funds of any such association for the purpose of being insured against temporary disability, sickness, old age or non-employment, they shall be members of such association and entitled to elect from among their number representatives equal in number to the number of votes that all of the employer members of such association are entitled to cast at any meeting of the members of such association. Each of the representatives elected by the employee members shall be entitled to one vote at any meeting of the members of such association ard shall be eligible as directors or officers of such association.

Ibid, sec. 154D.

154D. The association may in its by-laws and policies fix the contingent mutual liability of the members for the payment of losses and expenses not provided for by its cash funds; but such contingent liability of a member shall not be less than an amount equal to and in addition to the cash premium wi in the policy. If the association is not possessed of cash funds above its unearned premium sufficient for the payment of incurred losses and expenses, it shall make an assessment for the amount needed to pay such losses and expenses upon the members liable to assessment therefor, in proportion to their sev eral liability. Every member shall be liable to pay and shall pay his proportionate part of any assessment which may be laid by the association in accordance with law, and his contract, on account of losses and expenses incurred while he was

a member, if he is notified of such assessment within one year after the expiration of his policy. All assessments of employer members shall be based upon present values of all future payments, and all proposed premium assessments shall be filed in the State Insurance Department and shall not take effect until approved by the State Insurance Commissioner, after such investigation as he may deem necessary. All funds of the association and the contingent liability of the members thereof shall be available for the payment of any claim against the association.

Ibid, sec. 154E,

154E. The board of directors may from time to time, fix and determine the amount to be paid as a dividend upon policies expiring during each year after retaining sufficient sums to pay all the compensation and other policy obligations which may be payable on account of injuries by accident and other disabilities sustained and expenses incurred. Any such association may hold cash assets in excess of its liabilities, but such excess shall be limited to one hundred per centum of its reserves for losses and expenses incurred, and may be used from time to time in payment of losses, dividends and expenses.

Ibid, sec. 154F.

154F. Such association shall be required to maintain the same reserves for the protection of policyholders and employees who may have a right of action directly against such association as are required to be maintained by stock insurance companies in relation to the same class of insurance, except that reserves for liability for insurance of compensation under the Workmen's Compensation law shall be the same reserves as provided by the State Industrial Commission for the Accident Insurance Fund established in pursuance to said Workmen's Compensation law, and the State Insurance Commissioner may suspend or cancel the certificate issued by him authorizing said association to transact such insurance business at any time when, in the judgment of the State Insurance Commissioner the reserves of said association are insufficient to insure and secure the payment of its policy obligations, and the State Insurance Commissioner may reinstate or renew said certifi

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