against loss or damage to life or property resulting therefrom; Seventh, against loss by burglary or theft, or both; Provided, That no company shall be organized to issue policies of insurance for more than one of the above three mentioned purposes, and no company that shall have been organized for one of said purposes shall issue policies of insurance for any other, and no insurance company shall expose itself to loss on any one risk or hazard to the amount exceeding five per cent. of its paid-up capital, unless the same shall be re-insured in some other good and responsible companies. Sec. 2. Whenever any number of persons shall associate to form an insurance company, for any of the purposes named in the preceding sections, and become incorporated in accordance with the provisions of chapter XIX of the General Laws of 1877, they shall file a copy of the articles of incorporation with the Superintendent of Insurance who shall submit the same to the Attorney General for examination; and if found by him to be in accordance with the provisions of this act, and not inconsistent with the Constitution of this State, he shall certify and deliver back the same to the Superintendent of Insurance, who shall commission the persons named in the certificate of incorporation, or a majority of them to open books for the subscription of stock in the company, at such time and place as they shall deem it convenient and proper, and shall keep the same open until the full amount specified in the certificate of incorporation is subscribed. To form an in surance com pany; how, etc. Capital subination made. scribed, exam etc. Sec. 3. Whenever such capital stock has been subscribed and not less than the amount required by this act shall have been fully paid in, they shall notify the Superintendent of Insurance, who shall cause an examination to be made, either by himself or some disinterested person, especially ap pointed by him for the purpose, who shall certify under oath that the provisions of this act have been complied with by said company as far as applicable thereto. Such certificate shall be filed in Filing with the office of the said Superintendent, who shall thereupon deliver to such company a certified copy county clerk. Contracts may be made with of said certificate, whch, on being recorded in the offiec of recorder of deeds of the county wherein the company is to be located, shall be their authority to commence business. Sec. 4. All policies or contracts made or entered or without seal. into by any such company organized under the laws of this State may be made with or without the seal thereof. They shall be subscribed by the president or such officers as may be designated by their bylaws for that purpose, and shall be attested by the secretary, and, being so subscribed, shall be obligatory upon such company. Every insur ance company state subject to this law. Sec. 5. Every insurance company now existing now existing in under the laws of this State shall be subject to the provisions of this act, but shall be allowed ninety days from the approval hereof to comply with the requirements herein set forth. Shall not prevent Masonic, Odd Fellows or religious socie ties, but they must render annual statements. Shall not prevent forming mutual insurance for protection of its members. Sec. 6. The provisions of this act shall not be construed so as to prevent any Masonic, Odd Fellows, religious or benevolent society from issuing indemnity to any one against loss by death or accident, of any of its members, and such society shall not be held amenable under nor governed by any of the provisons of any article in this act pertaining to accident or life insurance, except as to rendering an annual statement of the condition of said associations or societies. But all life and accident associations hereafter organized under the laws of the State to operate on the mutual assessment plan shall comply with all the provisions of this act so far as applicable, and shall be under the full supervision of the Superintendent of Insurance. All such companies now existing shall comply with this law within ninety (90) days after its approval, and thereafter shall be subject to examinations, shall take out certificates of authority, and in all ways contemplated herein be under the direction of the Insurance Department. Sec. 7. The provisions of this act shall not be construed to prevent any number of persons, not less than twenty, from associating together for the purpose of forming an incorporated company for the purpose of mutual insurance of the property of its members. When persons so associated shall have complied with the provision of this act, so far as are applicable to such mutual companies, the Superintendent of Insurance shall commission the persons named in the certificate of incorporation, or a majority of them, to open books, to receive propositions, and enter into agreements in manner hereinafter specified. But no company so organized shall commence business until bona fide agreements have been entered into for insurance with at least one hundred individuals, covering property to be insured to the amount of not less than fifty thousand dollars. shall not make tions or give rebates. Sec. 8. No life insurance company doing business Life companies in the State of Colorado shall make or permit any distinction or discrimination in favor of individuals, between insurants (insured) of the same class and equal expectation of life, in the amount of payment of premiums or rates charged for policies of life or endowment insurance, or in the dividends or other benefits payable thereon, or in any other of the terms and conditions of the contracts it makes. Nor shall any such company, or any agent thereof, make any contract of insurance or agreement as to such contract other than as plainly expressed in the policy issued thereon; nor shall any such company or agent pay or allow, or offer to pay or allow, as inducement to insurance, any rebate of premiums payable on the policy, or any special favor or advantage in the dividends or other benefits to accrue thereof, or any valuable consideration or inducement whatever not specified in the policy contract of insurance. The penalty for violating this section shall be a fine of $250; and the Superintendent of Insurance shall revoke the certificate of authority of any agent convicted of a violaton of this act, and shall not grant the agent so convicted a license as agent for the term of three years thereafter. heretofore ex Sec. 9. All acts and parts of acts inconsistent Repeal of acts with the provisions of this act, heretofore existing, isting. are hereby repealed; Provided, That nothing in this act shall be construed to affect the corporate existence or the rights as such of any corporation now existing and heretofore organized under the laws of the State of Colorado for the period of ninety days as set forth herein before. Sec. 10. Whereas, an emergency exists, this act shall take effect and be in full force from and after its passage. Approved April 19, 1889. AN ACT TO REQUIRE FIRE INSURANCE COMPANIES TO CANCEL POLI- Be it enacted by the General Assembly of the State of Colorado: intendent of insurance. Section 1. That the Superintendent of Insur- Duty of superance shall have power and it shall be his duty to examine the form of all policy contracts hereafter issued or proposed to be issued by any fire insurance company,association or corporation now organized by law, or that may hereafter apply to be authorized to transact business of fire insurance in this State. The Superintendent of Insurance shall refuse to authorize any such company, association or corporation to do business in this State whenever the form of policy contract issued or proposed to be issued by any such company, association or corporation does not provide for the cancellation of the same at the request of the insured upon equitable terms; nor whenever the form of policy does not provide that in case the policy shall be cancelled at the request of the insured, the premium having been actually paid, that the unearned portion shall be returned on surrender of the policy or last renewal, the company in no event retaining an amount in excess of the amount shown to be the earned portion of said premium, as per the customary shortrate table. Sec. 2. Any and all fire insurance companies now authorized to do business in this State shall conform to the requirements of this act within sixty days after the same shall become a law. the authority. Sec. 3. In consequence of any violation of this Shall revoke act it shall be the duty of the Superintendent of Insurance to revoke the authority of such company to do business in this State, and the same shall not be renewed during a period of six months thereafter. Approved April 6, 1889. |