Слике страница
PDF
ePub

having a capital stock; the word "members" applies to corporations organized for purposes other than profit.

[New section.]

NOTE. The Act of March 1st, 1870, on pages 107-8, which authorizes corporations to amend their articles of incorporation, has been omitted. The machinery provided for effecting this amendment is rather cumbersome; besides, the policy of permitting corporations to change the purposes for which they were originally organized, irrespective of whether the business to be embraced in the amendment is germain to that then being conducted, is of a doubtful character, to say the least. Whenever such radical changes are necessary or beneficial to the stockholders, a dissolution and re-incorporation may be had as herein provided, with but little more delay than to amend the articles of incorporation.

TITLE II.

INSURANCE CORPORATIONS.

CHAPTER I. GENERAL PROVISIONS.

II. FIRE AND MARINE INSURANCE CORPORATIONS.
III. MUTUAL LIFE, HEALTH AND ACCIDENT INSUR-
ANCE CORPORATIONS.

To comply with re

CHAPTER I.

GENERAL PROVISIONS.

SECTION 413. To comply with requirements of Insurance Commissioner. 414. Subscriptions to capital stock opened, and how collected. 415. Purchase and conveyance of real estate.

416. Policies, how issued and by whom signed.

417. Dividends, of what, and when declared.

418. Directors liable for loss on insurance in certain cases.

SEC. 413. Every insurance corporation must, before quirements commencing to transact its business, and at all times

of Insurance

Commis

Once thereafter, comply with the requirements of the chapter sioner. on Insurance Commissioner, in Part I of the POLITICAL

CODE.

SEC. 414. After the Secretary of State issues the certificate of incorporation, as provided in Art. I, Chap. I,

tions to

capital stock how col

opened, and

lected.

Tit. I, of this Part, the Directors named in the articles Subscripof incorporation must proceed in the manner specified therein, or in their by-laws, or if none, then in such manner as they may by order adopt, to open books of subscription to the capital stock then unsubscribed, and to secure subscriptions to the full amount of the fixed capital; to levy assessments and instalments thereon, and to collect the same, as in Tit. I provided.

[New section.]

Stats. 1865-6, 755, Sec. 8; 743, Sec. 14.

SEC. 415. No insurance corporation must purchase, hold or convey real estate, except for the purposes, and as hereinafter set forth, to wit:

1. Such as is requisite for its accommodation in the convenient transaction of its business, not exceeding in value one hundred and fifty thousand dollars.

2. Such as shall have been conveyed to it, or to any person for it, by way of mortgage or in trust, or otherwise, to secure or provide for the payment of loans previously contracted, or for moneys due.

3. Such as shall have been purchased at sales upon deeds of trust, or judgments, decrees or mortgages obtained or made for such loans or debts.

4. Such as shall have been conveyed to it in satisfaction of debts previously contracted in the course of its dealings.

All such real estate so acquired, and which is not requisite for the accommodation of such corporation in the transaction of its business, must be sold and disposed of within five years after such corporation shall have acquired title to the same. No such real estate must be held for a longer period than five years, unless the corporation first procures a certificate from the Insurance Commissioner that the interest of the corporation will suffer materially by a forced sale of such real estate, in which event the time for the sale may be extended to such time as the Insurance Commissioner directs in the certificate.

Stats. 1865-6, 756; 1867-8, 341.

SEC. 416. All policies made by insurance corporations must be subscribed by the President or Vice President, or, in case of the death, absence or disability of those officers, by any two of the Directors, and countersigned

Purchase ance of real

and convey

estate.

Policies, how

issued and

by whom

signed.

Dividends, of what, and when de.

clared.

Directors

liable for loss

in certain

cases.

All such policies

by the Secretary of the corporation.
are as binding and obligatory upon the corporation as if
executed over the corporate seal.

Stats. 1865-6, 748, Sec. 20.

SEC. 417. The Directors of every insurance corporation, at such times as their articles of incorporation or by-laws provide, must make, declare and pay to the stockholders dividends of so much of the net profits of the corporate business and interest on their capital stock invested as to them appears advisable; but the moneys received and notes taken for premium on risks which are undetermined and outstanding at the time of making the dividend must not be treated as profits, nor divided, except as provided in Chap. II of this Title.

Stats. 1865-6, 748, Sec. 21.

SEC. 418. If any insurance corporation is under liabil on insurance ities for losses to an amount equal to its capital stock, and the President or Directors, after knowing the same, shall make any new or further insurance, the estates of all who make such insurance, or assent thereto, are severally and jointly liable for the amount of any loss which takes place under such insurance.

Stats. 1865-6, 743, Sec. 13.

Capital to be at least one hundred thousand

dollars.

CHAPTER II.

FIRE AND MARINE INSURANCE CORPORATIONS.

SECTION 423. Capital to be at least one hundred thousand dollars.
424. Payment of subscriptions. Capital to be all paid in twelve

months.

425. Certificate of capital stock paid up to be filed, and when.

426. Property which may be insured.

427. Funds may be invested, how.

428. Rate of risk.

429. Amounts to be reserved before making dividends.

430. Amounts to be reserved by companies with less than two hundred thousand dollars capital.

SEC. 423. No company, corporation or association shall hereafter be formed or organized under the laws of this State, for the transaction of business in any kind of

insurance, except live stock, without a subscribed capital equal at least to one hundred thousand dollars in United States gold coin, twenty-five per cent. whereof shall be paid in previous to, the issue of any policy, and the balance by monthly or quarterly instalments within twelve months from the day of filing the certificate of incorporation. Nor shall any individual or person be permitted to transact business as agent of any non-resident person or corporation, whether foreign or domestic, in any kind of insurance, except live stock, except such person or corporation shall possess available cash assets, exclusive of stock notes, to the amount of at least one hundred thousand dollars in United States gold coin, over and above all liabilities except capital.

[New section.]

NOTE. This section was suggested by the San Francisco
Board of Underwriters.

subscriptions.

SEC. 424. The Directors of every fire and marine cor- Payment of poration may levy, demand and call in from the stockholders thereof, such percentage of the capital stock subscribed by them respectively, in such assessments or instalments as they may deem proper. Notice of such levy must be given and such proceedings had for the collection of the same as is provided in Chap. II, Tit. I, of this Part, for the collection of assessments. The entire capital stock in cash must be paid in within twelve months from the filing of the articles of incorporation, and no policy of insurance must be issued or risk taken until twenty-five per cent. of the whole capital stock is paid up.

Stats. 1865-6, 743, Sec. 5.

SEC. 425. The President and a majority of the Directors must, within thirty days after the payment of the twenty-five per cent. of the capital stock, and also within thirty days after the payment of the last instalment or assessment of the capital stock limited and fixed, prepare, subscribe and swear to a certificate setting forth the amount of the fixed capital and the amount thereof paid up at the times respectively in this section named, and file the same in the office of the County Clerk of the county where the principal office of the corporation is located,

Capital to be

all paid in twelve

months.

[blocks in formation]

Property which may be insured.

Funds may be invested, how.

Rate of risk.

Amounts to be reserved before making dividends.

and a duplicate thereof, similarly executed, with the Insurance Commissioner.

Stats. 1865-6, 743, Sec. 10.

SEC. 426. Every corporation formed for fire and marine insurance, or either of such objects, may make insurance upon vessels, freight, money, treasure, goods and effects, and upon money lent upon bottomry and respondentia, and upon other interests lawfully insurable; and they may also make insurance against fire on any dwelling house or other building, and on merchandise or other property, wherever situated; and they may cause themselves to be reinsured, at the discretion of the officers thereof.

Stats. 1865-6, 743, Sec. 8.

SEC. 427. Every fire and marine insurance company has power, either by its Board of Directors or by its Finance or Executive Committee, as the by-laws may direct, to invest its funds in loans upon real estate or personal securities, or by purchases of stocks, bonds or other securities, but no loan must be made on the stock of the company as security.

[New section.]

NOTE. This new section was suggested by the San Francisco Board of Underwriters.

SEC. 428. Fire and marine insurance corporations must never take, on any one risk, whether it is a marine insurance or an insurance against fire, a sum exceeding one-tenth part of their capital actually paid in, without reinsuring the excess above one-tenth.

Stats. 1865-6, 747, Sec. 15.

SEC. 429. No corporation transacting fire, marine or inland insurance business under the laws of this State, must make any dividends, except from profits remaining on hand after retaining, unimpaired

1. The entire subscribed capital stock.

2. All the premiums received or receivable on outstanding marine or inland risks, except marine time risks.

3. A fund equal to one-half of the amount of all premiums on fire risks and marine time risks not terminated at the time of making such dividend.

4. A sum sufficient to pay all losses reported, or in

« ПретходнаНастави »