least par value, or mortgages on real estate situated in this state, of at least double the value for which the same is mortgaged; which statement and deposit shall be so made from year to year, at the time of each renewal or original grant of authority by said auditor, until the sum of forty thousand dollars is deposited as aforesaid, which said sum and every yearly part thereof deposited as aforesaid, shall be held under control of such auditor of the state, as a guarantee fund for the benefit of such persons as may be in any manner insured in their property by such company in this state, and the same or any part of the sums so deposited shall not be drawn out of the depositors until all claims for losses or premiums, or risks unexpired, shall be paid and discharged, or until all deposits made in other states, territories, or other places not within this state shall be withdrawn; and in case of the insolvency of any such company, the sums so deposited as aforesaid shall be applied by the auditor of the state, pro tanto, toward the payment of all claims against such body or individual filed in his office duly liquidated and authenticated, and losses and premiums or risks unpaid on policies issued within six months after such insolvency may occur. Any such body or individual shall be deemed insolvent, upon failure to pay any undisputed loss insured against within this state for the space of ninety days after final judgment for the amount of any loss so insured against, when no appeal shall have been taken from such judgment by either party or other proceeding begun to vacate, modify, reverse, or review such judgment, or to arrest the same, or to obtain a new trial. Such body or individual shall be entitled to receive the interests or dividends on such stock so deposited from time to time as the same may become due. This section shall not apply to any of the aforesaid bodies or individuals who have made no such deposits as in this section mentioned, elsewhere than in this state.

432. Mutual insurance companies incorporated by any state or territory other than the state of Nebraska, upon filing in the office of the auditor the act of incorporation of said company, together with a written instrument under seal of said company, signed by the president and secretary of said company under oath, certifying that said company is possessed of a capital of at least one hundred thousand dollars, secured by lien on real estate worth at cash valuation at least five times the amount of said capital, and not encumbered to more than one fourth of said cash valuation, shall be entitled to a certificate from said auditor with authority to transact business of insurance in this state, and said company shall be exempt from the provisions of this subdivision, with the exception of the publication of statement and certificate of the auditor.

433. It shall be the duty of the agent or agents in either of the foregoing sections mentioned, before taking any risks or transacting any business of insurance in this state, to file in the office of the county clerk of the county of which he or they may desire to establish an agency for any such company, a copy of the statement required to be filed with the auditor of the state as aforesaid, together with a certificate of such auditor, which shall be carefully preserved for public inspection by said clerk; and said statement and certificate shall be published one week in one daily and four weeks in one weekly newspaper, printed and published in the county in which such agent or agents has or have his or their office of business as such agents; and if no daily paper is published in such county, then such publication shall be sufficient if made in one weekly newspaper as aforesaid; but if no weekly newspaper be printed or published in such county, then such publication shall be made in one weekly newspaper of this state of most general circulation in such county.

III. MISCELLANEOUS PROVISIONS.

Sec. 434. "An act to provide for canceling insurance policies." 1885, p. 267. In force February 28.

434. Any person, company, association, or corporation transacting the business of fire, or fire, wind, storm, and tornado insurance, in this state, shall cancel any policy of insurance hereafter issued or renewed, at any time, by request of the party insured, or his legal representative, and shall return to the said party, or his representative, as aforesaid, the net amount of premium received by the company, after deducting the actual compensation of the agent or solicitor for securing the issue of said policy, and also deducting the customary short-rate premium for the expired time of the full term for which said policy was issued or renewed, anything in the policy to the contrary notwithstanding.

Secs. 435 to 437. "An act defining the liability of fire insurance companies in certain cases." 1889, p. 425. In force July 1.

435. Whenever any policy of insurance shall be written to insure any real property in this state against loss by fire, tornado, or lightning, and the property insured shall be wholly destroyed, without criminal fault on the part of the insured or his assigns, the amount of the insurance written in such policy shall be taken conclusively to be the true value of the property insured, and the true amount of loss and measure of damages.

Stipulations in policy in conflict with this provision are inoperative. Where there is a total loss there is nothing to arbitrate. German Ins. Co. v. Eddy, 36, — (54 N. W., 856).

436. This act shall apply to all policies of insurance hereafter made or written upon real property in this state, and also to the renewal, which shall hereafter be made, of all policies heretofore written in this state, and the contracts made by such policies and renewals shall be construed to be contracts made under the laws of this state.

437. The court, upon rendering judgment against an insurance company upon any such policy of insurance, shall allow the plaintiff a reasonable sum as an attorney's fee, to be taxed as part of the costs.

Validity of act sustained, and allowance of attorney fee upheld. German Ins. Co. v. Penrod, 35, 273 (53 N. W., 74).

Secs. 438 to 441. "An act to require insurance companies organized under the laws of other states and doing business in Nebraska to pay a duty or rate for the support of fire companies comprising the fire department of any city or village." 1889, p. 422. In force July 1.

This act held unconstitutional.

State v. Wheeler, 33, 563 (50 N. W., 770).

IV. SPECIAL FORMS OF INSURANCE.

Secs. 442 to 450. "An act to exempt secret societies and associations from the requirements of chapter sixteen (16) of the Compiled Statutes of 1835, to define the duties, powers, and obligations of such societies and associations, and provide penalties for violations thereof." 1887, p. 337. In force June 29.

442. That any secret society or association, the management and control of which is confined exclusively to the membership of any secret society or order heretofore organized or which may hereafter be organized, which in addition to the benevolent and fraternal features thereof, shall also issue certificates of indemnity calling for the payment of a certain sum known and defined, in case of the death, disability, or sickness of any of its members, to the wife, widow, orphan or orphans, or other persons dependent upon such members, shall be exempt from the provisions of chapter twenty-five (25) of the Revised Statutes of 1866, of the territory, now state of Nebraska, the same being chapter sixteen (16) of the Compiled Statutes of 1885 [ch. 9]; Provided, That such secret society or association as aforesaid shall comply with all the requirements of this act.

Not liable to pay fees under section 412. State, ex rel. Arcanum, v. Benton, 35, 463 (53 N. W., 567).

443. Within thirty (30) days after the taking effect of this act such society, as aforesaid, shall, by its presiding officer, or recording officer, or both of them,

file a certificate in the office of the auditor of public accounts, setting forth the total number of members in good standing in such society or association at the date of the taking effect of this act, the name, title, and postoffice address of each of the chief officers of such society or association; the plan of assessment upon which funds are provided to pay the certificate of indemnity issued by such society or association, together with a certified copy of the constitution and by-laws of such society. If, from such statements, the auditor of public accounts shall be satisfied that such society or association has a sufficient membership to pay a certificate so issued by such society or association, in case of the death of any of its members, by its usual method of assessment, he shall issue to such society or association a certificate authorizing it to transact business for one year.

444. On the first day of January of each year, or within fifteen days thereafter, such society or association shall, by its presiding or recording officer, or both of them, file with the auditor of public accounts a sworu statement, setting forth the total number of members in good standing on the first day of January of that year; the total number of members who have been suspended for non-payment of dues or assessments for the twelve months next preceding the date of the report; the name of each member deceased during the year next preceding the date of the report, together with the amount of money paid to each; the number of claims resisted and the reasons for resisting the payment thereof; the total amount collected for the payment of certificates of indemnity herein before provided for; the amount due and unpaid upon certificates of deceased members, the total amount on hand in such fund, and the amount paid out in such fund. If the auditor shall be satisfied that such society or association has a sufficient membership to pay its certficate in full in case of the death of any of its members, by its usual method of assessment, he shall issue his certificate authorizing such society or association to transact its business for the term of one year from the first day of January next preceding the date of the report.

445. If at any time the auditor shall be credibly informed that the membership of such society or association has fallen below a number sufficient to produce the amount required to pay a certificate of membership in full, in case of the death of any of its members, he shall cause an investigation to be made of the affairs of such society or association, at the expense of such society or association, and if he shall become satisfied that its membership has fallen below the number required as aforesaid, he shall revoke the certificate provided for in section three of this chapter, and it shall be unlawful for such society or association to further transact any business within the state of Nebraska.

446. Before any change in the constitution or by-laws of any such society or association shall take effect, a copy of the same shall be filed in the office of the auditor of public accounts.

447. All moneys collected by any such society or association for the payment of its certificates of indemnity shall be used for that purpose, and none other.

448. Any person or persons violating the provisions of this act shall, upon conviction thereof, be imprisoned in the penitentiary for not more than five nor less than one year.

449. This act shall only apply to secret, benevolent, fraternal societies.

450. Any officer of any such society or association, who shall embezzle or appropriate any of the moneys or property of any such society or association to his own use, shall be deemed guilty of embezzlement, and shall, upon conviction thereof, be punished accordingly.

Secs. 451 to 469. "An act to authorize the organization of mutual insurance companies.” 1891 p. 272. In force August 1.

451. That any number of persons, not less than twenty (20), residing in this state, who collectively shall own property of not less than twenty thousand (20,000)

dollars in value, which they desire to have insured, may form an incorporated company for the purpose of mutual insurance, against loss by fire, lightning, or tornado.

452. Such persons shall file with the auditor of public accounts a declaration of their intention to form a company, for the purposes expressed in the preceding section, which declaration shall be signed by at least twenty of the incorporators, and shall contain a copy of the charter proposed to be adopted by them. Such charter shall set forth the name of the corporation, the name of the city, town, or village in which the business office of such company is, to be located, and the intended duration of the company, and if such declaration is found conformable to this act, and not inconsistent with the constitution of this state, the auditor shall thereupon deliver to such persons a certified copy of the charter, which, on being filed in the office of the county clerk of the county where the office of such company is to be located, shall be their authority to organize and commence business. certified copy of the charter may be used in evidence for or against said company with the same effect as the original.

453. The number of directors shall not exceed nine (9), a majority of whom shall constitute a quorum to do business to be elected from the members by ballot, and they shall hold their offices until their successors are elected and qualified.

454. The policy-holders shall elect from their number a president and a treasurer, and shall also elect a secretary, who may or may not be a member of the company, all of whom shall hold their offices for one (1) year, and until their successors are elected and qualified.

455. The treasurer and secretary shall each give bonds to the company for the faithful performance of their duties, in such amounts as shall be prescribed by the board of directors.

456. Such corporation and its directors shall possess the usual powers and be subject to the usual duties of corporations and directors thereof, and may make such by-laws, not inconsistent with the constitution or this act, as may be deemed necessary for the management of its affairs in accordance with the provisions of this act, and may prescribe the duties of its officers and fix their compensation, and to alter and amend its by-laws when necessary.

457. Any person owning property in the territory for which any such company is formed, under such restrictions and qualifications as the by-laws may prescribe, may become a member of such company by insuring therein, and shall be entitled to all the rights and privileges appertaining thereto.

458. Such company may issue policies only on detached farm dwellings, barns (except livery, boarding, and hotel barns), and other farm buildings, and such property as may properly be contained therein, and also upon horses, mules, cattle, sheep, hogs, and against damage by fire, lightning, or tornado for any length of time, but not to extend beyond the limit and duration of the charter, and for any amount the company may deem safe on any one risk, nor shall any property be insured for more than two-thirds (3) its actual value. All persons so insured shall give their obligation to the company, in a written or printed application, binding themselves, their heirs and assigns, to pay their pro rata share to the company of the necessary expenses, and of all losses by fire, lightning, or tornado which may be sustained by any member thereof during the time for which their respective policies are written and they continue as members of the company, and they shall also, at the time of effecting the insurance, pay such percentage in cash and such other charges as may be required by the rules and by-laws of the company; Provided, That any company formed under the provisions of this act may in its by-laws limit the percentage of the liability of its members.

459. Any such company may classify the property insured therein at the time

of issuing policies thereon under different rates corresponding as nearly as may be to the greater or less risk from fire, lightning, or tornado which may attach to each building or personal property insured.

460. No such company shall insure any property beyond the limits of the territory, nor shall it insure any property within the limit of any city or village.

461. Every member of such company who may sustain loss or damage by fire, lightning, or tornado shall immediately notify the secretary thereof, stating the amount of damage or loss claimed, then the person or persons authorized by the by-laws of such company to adjust losses shall proceed to ascertain the amount of such loss or damage and adjust the same. If there is a failure of the parties to agree upon the amount of such damage or loss, the same shall be submitted to three (3) persons as a committee of reference, one of whom shall be selected by the claimant, one by the company, and the third by such two persons, who shall be sworn to a faithful and impartial investigation and award, and who shall have authority to examine witnesses and to determine all matters in dispute, and shall make their award in writing to the secretary of the company, and such award shall be final. The pay of the membership of such committee shall be two ($2) dollars per day for each day's service so rendered in the discharge of their duties, which shall be paid by the claimant, unless the award of said committee shall exceed the sum offered by the company in liquidation of such loss or damage, in which case said expenses shall be paid by the company.

462. Whenever the amount of any loss shall have been ascertained, which exceeds in amount the cash funds of the company, the secretary shall make an assessment upon all the property insured by the company; Provided, That any company may provide in its by-laws for making assessments at stated intervals only, and may also provide that assessments shall be made by the board of directors.

463. It shall be the duty of the secretary, whenever such assessment shall have been made, to immediately notify every person composing such company personally, or by a letter sent to his usual postoffice address, of the amount of such loss, and the sum due him as his share thereof, and of the time, and to whom such payment is to be made; but such time shall not be less than twenty (20) nor more than forty (40) days from the date of such notice.

464. Suits at law may be brought against any member of such company, who shall neglect or refuse to pay any assessment made upon him or her, by the provisions of this act, and the directors or officers of any company so formed, who shall willfully refuse or neglect to perform the duties imposed upon them by the provisions of this act, shall be liable in their individual capacity to the person sustaining such loss. Suits at law may also be brought and maintained against any such company by members thereof for losses sustained, if payment is withheld after

such losses become due.

465. It shall be the duty of the secretary to prepare an annual statement showing the condition of such company, and the business transacted the preceding year, and present the same at the annual meeting.

466. Any member of such company may withdraw therefrom by surrendering his policy for cancellation at any time while the company continues the business for which it was organized, by giving notice in writing to the secretary thereof, and paying his or her share of all claims then existing against said company, and a cancellation fee not to exceed one dollar; Provided, That by the withdrawal of any such member, the number of members remaining in the company shall not be reduced below twenty, or that the assets will not be reduced below twenty thousand dollars; Provided further, That the company shall have power to cancel or terminate any policy by giving the insured notice to that effect, and such cancellation of policy ends his or her membership in such company.