Indiana.

Burns' annotated Indiana statutes : showing the general statutes in force September 1, 1901 : embracing the revision of 1881 as amended, and all permanent, general and public acts of the General Assembly passed since the adoption of that revision : containing also the United States and Indiana const online

. (page 76 of 135)
Online LibraryIndianaBurns' annotated Indiana statutes : showing the general statutes in force September 1, 1901 : embracing the revision of 1881 as amended, and all permanent, general and public acts of the General Assembly passed since the adoption of that revision : containing also the United States and Indiana const → online text (page 76 of 135)
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cordance with any such provision in such policy: And provided further.
That in every case in which the actual premium charged for an insurance
is less than the net premium for such insurance, computed according to
its respective tables of mortality and rate of interest, the company shall
also be charged with the value of an annuity, the amount of which shall
equal the difference between the premium charged and that required by
the rules above stated, and the term of which in years shall equal the
number of future annual payments due on the insurance the date of the
valuation.

This section amends section 4594u, Burns* R. S. 1901.

4894y. Insolvency — Receiver — Dissolution. — 14. If the auditor of
state shall, at any time, find from any report, examination or otherwise,
that the assets of any life insurance company organized or doing business
under this act, are less than its liabilities, exclusive of capital stock, he
may notify it to cease the issue of new policies, or the payment of divi-
dend to stockholders or policy-holders, or both, until the deficiency be
made good ; and he may, and if it appear to him that the assets of such
company are less than three-fourths of its liabilities, exclusive of capital
stock, he shall communicate the facts to the attorney-general, who shall,*
if by him deemed advisable, at once apply to the circuit or superior court
of the county, where the principal ofiice of said company is located, for
a receiver for said company, and said court shall forthwith issue a -citation
to such company, to appear at a day and place to be named therein, and
answer to said application ; and if, upon the hearing of said application,
the said court shall find the assets of the said company to be less than its
liabilities, as aforesaid, said court may, and if the assets are found to be
less than three-fourths of its liabilities, as aforesaid, shall make such order
with reference to the matter as shall be for the best interests of the
policy-holders, or, if it be not practicable to continue the business, provide
for the reinsurance of its outstanding policies, in some solvent company
doing business in this state ; or, if this is impossible, such court shall ap-
point some disinterested person or persons to be receiver or receivers of
the said company ; and said court may provide the mode of proving said
claims against such company, and appoint a committee to hear and decide
upon them, and may limit and extend the time for the presentation of



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599 STOCK OR MUTUAL LIFE. § 4894z

such claims, and may make all necessary orders in reference to the de-
livery to and possession of such receiver of the assets and property of
such company, and the sale and conveyance of the same by him, and may
direct the application of the avails of such assets and property equitably
in- satisfaction of the claims proved against such company, and the pay-
ment of the present net cash value of its outstanding policies to policy-
holders, either in whole or in part ; and said court shall annul the charter
and decree the dissolution of such company, and make all other orders
and decrees necessary and proper in reference to winding up the affairs
of such company and the disposition of its property.
This section amends section 4894y, Bums' E. S. 1901.

4894z. CSianging securities. — 15. Companies shall have the right at
any time to change their securities on deposit, by substituting for those
withdrawn a like amount in other securities of the character provided
for in this act, and whenever the net cash value of policies outstanding
and in force against any company is less than the amount of security then
on deposit with the auditor of state, said company shall have the right
to withdraw such excess; but at least twenty-five thousand dollars shall
remain on deposit.

This section amends section 4894z, Bums' R. S. 1901.

[Acts 1905, p. 181. In force J^Iarch 4, 1905.]

4894gl. Investment of funds. — 22. No company organized under the
provisions of this act shall invest its funds in any other manner than as
follows : In bonds of the United States, in bonds of this state or of any
other state, country or province in which said company is transacting an
insurance business, if at or above par ; in legal tender money of the United
States ; in bonds and mortgages on unincumbered real estate within this
state, or in any other state or country in which said company is trans-
acting an insurance business, worth at least double the amount loaned
thereon, and the value of such real estate shall be determined by a valua-
tion made under oath by two freeholders of the county where the real
estate is located (if buildings are con8iderei_a..pArt of ihe value of such
real estate they must be insured for the benefit of the mortgagee) ; in
bonds or other evidence of indebtedness, bearing interest, of any county,
incorporated city, town, township or school district within this state, or in
any other state or country in which said company is transacting an in-
surance business, where such bonds or other evidences of indebtedness
are issued by authority of law, and upon which interest has never -been
defaulted ; in loans upon the pledge of stock, bonds or mortgages of par
value, if the current value of such stock, bonds or mortgages is at least
twenty-five per cent, more than the amount loaned thereon, and in loans
upon its own policies : Provided, That the amount so loaned shall not ex-
ceed the reserve against said policy at the time such loan is made : Pro-
vided, That in the annual certificate furnished by the auditor of fiitate to
any such company he shall name all deposits and the amount thereof



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§ 4897 CX)BPORATIONS — ^INSURANCE. 600

made by such company with any other state or country, which deposits
must be of the character of securities herein provided for.
This section amends section 4894gl, Bums' R. S. 1901.

ARTICLE 4.— MUTUAL LIFE AND ACCIDENT COMPANIES.

8B0. 8E0.

4897. Life insurance, assessment plan. 4909a. Foreign oompanj, license, state-
4905. Fraud in procuring policy. ment, capital.

4914s. Foreign companies, authority to act

4897. Life insurance, assessment plan.

Construction of the powers of a mutual accident insurance company organized
under the act of 1883, and the rights of policy holders when such a company is in the
hands of a receiver. Rohison v. Wolf, 27 App. 683.

4905. Fraud in procuring policy.

If a person takes out an insurance policy on the life of another in which be has
no insurable interest without the consent of the insured, and against the proYisiofis
of a statute, such person can not recover from the insurance company the premiums
paid although the company knew all the facts. Work v. American Ins. Co., 31 App.
163.

[Acts 1905, p. 464. In force March 6, 1906.]

4909a. Foreign company, license, statement, capital — 1. That it shall
not be lawful for any agent or agents of any casualty, surety or health
company incorporated under the laws of any other state or any govern-
ment foreign to the United States, directly or indirectly, to solicit insur-
ance by any person or persons, firm, partnership or corporation, or to
take any risks, or transact any business of insurance or suretyship in this
state without first procuring a license from th© auditor of state authoriz-
ing him, or them, to transact such business of insurance or suretyship as
agent for such company in this state ; and before such license shall be is-
sued there shall be filed with the auditor of state a copy of the act of
incorporation of such company, if such copy has not already been filed,
and a statement or [on] blanks prepared by said auditor of state, under
oath of two of the officers of the company making such statements, which
statement shall show in detail the assets and liabilities of such company,
and such other information as the auditor of state may require and no acci-
dent and liealth company shall transact any business of insurance in this
state unless such company is possessed of at least one hundred thousand
dollars invested in the stocks or bonds of some one or more of the srtates
of the United States or of the United States or in bonds of some one or
more of the counties, cities or towns of this state or some other state of
the United States, at the current market value thereof at the date of
admission of such company to do business in this state, or in first mort-
gage bonds or mortgages on real estate worth double the amount for
which the same is mortgaged and free from any prior incumbrance. And
no casualty company shall transact a general casualty business unless
such company is possessed of at least two hundred thousand dollars in-



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601



ACCIDENTS — BOILER EXPLOSIONS.



§ 4914s



vested in the stocks or bonds of some one or more of the states of the
United States or of the United States, or in bonds of some one or more of
the counties, cities or towns of this state, or some other state of the United
States, at the current market value thereof at the date of admission of
such company to do business in this state or in first mortgage bonds or
mortgages on real estate worth double the amount for which the same is
mortgaged and free from any prior incumbrance. And no surety com-
pany shall transact a surety business either singly or generally in connec-
tion with a casualty business unless such company is possessed of two
hundred and fifty thousand [dollars] capital, and unless such capital to
the extent of one hundred thousand dollars is invested in the stocks or
bonds of some one or more of the states of the United States or of the
United States, or in bonds of some one or more of the counties, cities, or
towns of this state, or some other state of the United States, at the cur-
rent market value thereof at the date of admission of such company to
do business in this state, or in first mortgage bpnds or mortgages on real
estate worth double the amount for which the same is mortgaged and free
from any prior incumbrance. And upon the filing of the foregoing state-
ment and furnishing him with satisfactory evidence of such investment,
and complying with the other laws of this state, concerning foreign in-
surance companies, or surety companies, it shall be the duty of the audi-
tor of state to issue to the agent or agents of the company applying for
the same, a license to transact the business of insurance for such company
in this state.

4914s. Foreign companies, anthority to act.

If a foreign mutual benefit association fails to file with the auditor of state its
it& consent that process may be served on the auditor in suits against such association,
process may be served on the chief officers of a local lodge. Modem Woodmen v.
Noyes, 158 Ihd. 503.

ARTICLE 4%.— ACCIDENTS— BOILER EXPLOSIONS.



8EC.






ssa


4914al.


Boiler inspection, accident


in-


4914ml.




sorance.




4914nl.


4914bl.


Articles, contents, name.




4914ol.


4914cl.


Articles, acknowledgment,


fil-


4914pl.




ing, approval.




4914ql.


4914dl.


Officers, stock, subscription.




4914rL


4914el.


Capital stock, investment.




4914sl.


4914fl.


Corporate powers, l^-laws.




4914tl.


4914gl.


Annual report, contents.




4914ul.


4914hl.


Additional reports.




4914vl.


4914iL


Non-compliance, duty of auditor.


. 4914wl.


4914JL


Examinations by auditor.




4914x1.


4914kl.


Receiver, appointment.




4914yl.


491411.


Changing securities.







Increasing capital stock.

Dividends.

Closing business, proceedings.

Interest on deposits.

Penalties.

Actions for penalties.

Investment of funds.

Real eetate.

Sale of real estate.

Certificate of auditor.

Application of act.

Fees of auditor.

Liability of stockholders.



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§ 4914al COHPORATIONS — INSURANCE. 602

[Acts 1903, p. 242. In force BCarch 9, 1903.]

4914al. Boiler inspection, accident insurance. — 1. That any ten or
more persons, a majority of whom shall be residents of the State of Indi-
ana, may associate in accordance with the provisions of this act and form
an incorporated company for any one or more of the following purposes : .

First. To inspect steam boilers and other vessels, appliances and con-
nections, and to insure again^ loss or damage to the life and property of
the assured, or loss or damage to the life, person or property of another
for which the assured is liable, caused by explosions or other accident in
the use of steam boilers and other vessels, appliances and connections.

Second. To insure any person against bodily injury or death by acci-
dent, to make insurance upon the health of individuals, to insure any per-
son, firm or corporation against loss or damage on account of bodily in-
jury or death by accident of any person for which loss or damage said
person, firm or corporation is responsible and liable; and to provide for
the payment of wages or partial wages or other form of indemnity on ac-
count of accident resulting in bodily injury or death.

Third. To insure against the breakage of plate glass, local or in
transit.

Fourth. To insure against loss or damage by water to any goods or
premises arising from the breakage or leakage of sprinklers and water
pipes.

Fifth. To insure against loss or damage by burglary, theft or house
breaking.

4914bl. Articles, contents, name. — 2. Such persons shall associate
themselves together by articles of incorporation in writing, for the pur-
pose of forming an accident or casualty insurance company, which arti-
cles shall specify the name by which the company shall be known, the
place in which its principal office will be established or located, the
amount of its capital stock, the general object of the company, and the
proposed duration of the same. Any name not previously in use by any
existing company may be adopted. The auditor of state shall reject any
name or title, when in his judgment it too closely resembles that of any
existing company or is likely to mislead the public.

4914cl. Articles, acknowledgment, filing, approval. — 3. The sub-
scribers to said articles of incorporation shall acknowledge the same be-
fore some one empowered to take acknowledgments of deeds, and forward
the same to the auditor of state, who shall, in case he approves of the title
of the proposed company, submit said articles of incorporation to the
attorney-general for examination, and if found by the attorney-general
to be in accordance with the provisions of this act, and not inconsistent
with the constitution of this state or of the United States, he shall certify
the same to the secretary of state, with his approval endorsed hereon,
who shall file the same in his office.

4914dl. Officers, stock subscription. — 4. The subscribers to said arti-
cles of incorporation shall choose from their number a president, a secre-



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603 ACCIDENTS — ^BOILER EXPLOSIONS. § 4914el

tary, a treasurer, and such number of directors, not less than five, who
shall continue in oflfice for the period of one year from the date of filing
articles of incorporation and until their successors shall be duly chosen
and qualified, as hereinafter provided. They shall open books for the sub-
scription of stock in the company at such times and places as they shall
deem convenient and proper, and shall keep them open until the full
amount specified in the certificate is subscribed.

4914el. Capital stock, investment. — 5. Companies organized under
the provisions of this act shall have not less than three hundred thousand
dollars ($300,000) of capital stock subscribed, three hundred thousand
dollars ($300,000) of which shall be paid up and invested in bonds of the
United States or of this state or of any county or of any municipality of
the state, or in bonds or mortgages upon unincumbered real estate in the
State of Indiana, worth at least double the sum loaned thereon. (If
buildings are considered a part of the value of the real estate they must
be insured for the benefit of the mortgagee.) Seventy-five thousand dol-
lars of such securities shall be deposited with the auditor of state, and
upon said deposit and satisfactory evidence to the auditor of state that
the capital stock of at least three hundred thousand dollars is all sub-
scribed and paid up in cash in good faith, and that such stock has been
invested as herein prescribed, and upon the deposit of the sum of seventy-
five thousand dollars of such securities or in cash with the auditor, then
said auditor shall issue to said company a certificate authorizing it to do
business. No part of the capital paid in shall be loaned to any officer or
stockholder of said company.

4914fl. Corporate powers, by-laws. — 6. A corporation organized or
doing business under the provisions of this act, shall, by the name adopted
by such corporation, in law, be capable of suing or being sued, and may
have the power to make or enforce contracts in relation to the business
of such corporation ; may have and use a common seal, and may change
or alter the same at pleasure, and in the name of the corporation or by
a trustee chosen by the board of directors, shall, in law, be capable of
taking, purchasing, holding and disposing of real and personal property
for carrying into effect the purposes of their organizaton; and may by
their, board of directors, trustees or managers, make by-laws and amend-
ments thei'eto not inconsistent with the laws or the constitution of the
state or of the United States, which by-laws shall define the manner of
electing directors, trustees or managers and officers of such corporations,
together with the qualifications and duties of the same, and fixing the
term of office.

4914gl. Annual report, contents. — 7. The president, vice-president
and secretary, or a majority of directors or trustees of each company or-
ganized under the provisions of this act, shall, annually on the first day
of January, or within sixty days thereafter, prepare and deposit in the
office of the auditor of state a verified statement of the condition of such
company on the 31st day of December of the preceding year showing :



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§ 4914hl COBPORATIONS — INSURANCE. 604

First. Name and where located, (a) Names of oflBcers. (b) The
amount of capital stock, (c) The amount of capital stock paid in.
Second. Assets, (a) The value of real estate owned by said company.

(b) The amount of cash on hand, (c) The amount of cash deposited in
bank or trust company, (d) The amount of bonds of the United States,
and all other bonds, giving names and amounts, with par and market
values of each kind, (e) The amount of loans secured by first mortgage
on real estate, (f ) The amount of all other bonds, loans and how secured,
with rate of interest, (g) The amount of notes given for unpaid stock
and how secured, (h) The amount of interest due and unpaid, (i) All
other credits or assets.

Third. Liabilities, (a) The amount of losses due and unpaid, (b)
The amount of claims for losses unadjusted, (c) The amount of claims
for losses resisted.

Fourth. Income during the year, (a) The amount of fees received
during the year, (b) The amount of interest received from all sources.

(c) The amount of receipts from all other sources.

Fifth. Expenditures during the year, (a) The amount paid for losses.
(b) The amount of dividends paid to stockholders, (c) The amount of
commissions and salaries paid to agents, (d) The amount paid to officers
for salaries, (e) The amount paid for taxes, (f ) The amount of all other
payments or expenditures.

Sixth. Miscellaneous, (a) The amount paid in fees during the year.
(b) The amount paid for losses during the year, (c) The whole amount
of insurance issued and in force on the 31st day of December of the pre-
vious year.

4914hl. Additional reports. — 8. The auditor of state is authorized to
amend the form of statement and to exact such additional information
as he may think necessary in order that a full exhibit of the standing of
companies organized and doing business under this act may be shown.

4914il. Non-compliance, duty of auditor. — 9. Upon the failure of any
company organized or doing business under this act to make the deposit
or to file the statement in time as stated in the preceding section, the
auditor of state shall notify such company to issue no new insurance until
there should have been a compliance with said requirements, and it shall
be unlawful for any such company to thereafter issue any policy of insur-
ance until such requirements shall be complied with.

4914J1. Examinations by auditor.— 10. The auditor of state may at
any time make personal examination of the books, papers and securities
of any company organized and doing business under the provisions of
this act, or may authorize or empower any other suitable person to make
such examinations, and for the purpose of securing a full and true exhibit
of its affairs, he or the person selected by him shall have power to ex-
amine under oath any officer of said company relative to its business
management.

4914kl. Receiver, appointment. — 11. If the auditor of state shall at
any time find from any report or examination that the company has not



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605 ACCIDENTS — ^BOILER EXPLOSIONS. § 491411

complied with the provisions of this act, he shall refer the facts to the
attorney-general, who shall proceed to ask the proper court to appoint
a receiver for said company, who shall, under the direction of the court,
wind up the aflfairs of said company. But in no other way can the auditor
of state or other person restrain or interfere with the prosecution of busi-
ness of any company doing business under provisions of this act, except
in actions by judgment creditor or in proceedings supplementary to exe-
cution.

.491411. Changing securities. — 12. Companies shall have the right at
any time to change their securities on deposit with the auditor of state
by substituting for those withdrawn a like amount in other securities of
the character provided for in this act, but securities to the amount of at
least twenty-five per cent, of the stock subscribed shall at all times be
and remain on deposit.

4914ml. Increasing capital stock. — 13. Any company organized under
the provisions of this act may increase the capital stock of the same at
any time after the intention to so increase the capital stock shall have
been ratified by a two-thirds vote of the stockholders and after notice
of the purpose to so increase the capital stock has been given by publi-
cation in some newspaper of general circulation for the period of four
consecutive weeks; but no increase of capital stock in less amount than
fifty thousand dollars is hereby authorized.

4B14nl. Dividends. — 14. The directors of any company organized
under this act shall not make any dividends except from the surplus
profit arising from their business. No dividends shall be declared except
at the close of the year and at the time when, by law, the company is re-
quired to file its annual statement with the auditor of state.

4914ol. Closing business, proceedings. — 15. If at any time any com-
pany organized under this act shows to the circuit or superior court of the
county where its principal office is located, that it wishes to retire from
business, that it has no unpaid liabilities of any character, such court
shall, if it finds such facts to be true, enter an order directing the auditor
of state to surrender to said company all funds or securities theretofore
deposited with him by such company. No order shall be made until the
auditor of state shall have been notified of the pendency of such appli-
cation at least ten days before the time set for the hearing thereof and
until a full hearing by said court.

4914pl. Interest on deposits. — 16. The auditor of state shall permit
companies having on deposit with him bonds on [as] security, to collect
the interest accruing on such deposit, delivering to their authorized agent
respectively the coupons or other evidence of interest as the same shall
become due; but upon default by any. company to deposit additional se-
curity as called for by the auditor of state, or pending any proceedings
to close up or enjoin it, the auditor of state shall collect the interest as
it becomes due, and add the same as security in his hands belonging to
such company.

4914ql. Penalties. — 17. Any company organized or doing business



Online LibraryIndianaBurns' annotated Indiana statutes : showing the general statutes in force September 1, 1901 : embracing the revision of 1881 as amended, and all permanent, general and public acts of the General Assembly passed since the adoption of that revision : containing also the United States and Indiana const → online text (page 76 of 135)