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Legislatures Including 1901.
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ARTICLE I.-INCORPO
INSURANCE.
CHAPTER XLIV.—INSURANCE.
RATIONS AND Gover NMENT OF INSUR-
ANCE COMPANIES.
AN ACT to incorporate and govern insurance companies doing business in Oklahºma
Territory. -
SECTION.
Q.
II.
I2.
I3.
I4.
15.
I6.
I7.
What real estate company may
Who may incorporate, purpose.
May re-insure.
Declaration; copy of charter.
Form of charter.
Restrictions. -
Capital of joint stock or mutual com-
panies.
Opening books of joint stock and mu-
tual companies.
Investment of capital.
sale.
Charter, etc., examined by Attorney
General.; capital by commissioners
of insurance; certificate filed; com-
mence business; evidence.
By laws; seal.
Dividends; year defined.
Mutual companies; notes; numbers;
assessments; liability.
Mutual or “joint stock” indicated on |
policy, ete.
Suits.
Liabilities of corporators, etc.; notes.
Joint stock companies may extend
charter; mutual may become joint
stock company.
hold; -
"Took effect December 25, 1890.]
617.
Hap. 44,
*,
º,
**
:
i
&
SECTION.
18. Increase of capital stock.
19. Companies heretofore formed su"
ject to this act.
2O. Bodies corporate and politic.
21. Annual report to commissioner of .
IllSUl Iſa Il Ce.
22. Foreign companies; agent; service of
process.
23. Examination by commissioner or his
appointee.
24, Suits for penalties.
25. Duration of company; legislative con-
- trol, etc.
26. Lien on stock; stock impaired; reduc-
tion; receiver's statement; publica-
tion. -
27. Fees of commissioners of insurance.
28. Agents responsible; embezzlement.
29. Reciprocity.
30. Tax on net receipts.
31. Security by foreign companies,
32. Amount of policy to be paid.
33. Policy to contain copy of applica-
tion-
Be it enacted by the Legislative Assembly of the Territory of Oż-
(3025) $ 1.
homa:
Any nur.ber of persons, not less than thirteen,
may associate and form an incorporated company in this Terri-
tory for the following purposes, to-wit: To make insurance on
dwelling houses, stores and all kinds of buildings and upon house-
hold furniture and other property, against loss or damage by fire,
- and the risks of transportation.
sioner of insurance a declaration signed by all the corporators
Any and all insurance companies
hereafter incorporated under the provisions of this act, which shall
in the declaration and charter provided to be filed, have expressed
an intention to make insurance or which shall have power to make
insurance against loss or damage by the risks of transportation,
shall have power to make insurance upon cargos, merchandise,
freights and other property against loss and damage by all and
any of the risks of transportation.
(3026) $ 2. Any companies organized under this act, shall
have power to effect re-insurance of any risks taken by them
respectively.
(3027) $ 3. Such persons shall file in the office of the commis-
y
expressing their intention to form a company for the purpose of
transacting the business of insurance as expressed in the first sec-
tion of this act, which dec
I. L.-1.
Tw 3.
* , ;
't
• * ~
laration shall also comprise a copy of
*… . . . . . . . .
* Lý. K. A
º
Who may in
c or p or a t e :
Qtil 1998éºle
May reinsure.
Declaration ;
copy of char
Ü6Iſ, *
--~~~
618
INSURANCE.
Chap. 44, the charter proposed to be adopted by them and shall publish a
Form of char-
ter, " -
Restrictions.
, ºr
Capital of
gº under this act, or transacting business, in this Territory, shall
Lº Úl
panies
notice of such their intention, once in each week, for at least four
weeks, in a public newspaper in the county in which such insurance
company is proposed to be located. ºr
(3028) $ 4. The charter comprised in such declaration shall
set forth the name of the company, the place where the principal
office for the transacting of its business shall be located, the mode
and manner in which the corporate powers granted by this act
are to be exercised, the mode and manner of electing its trustees
or directors, a majority of whom shall be citizens of this Territory,
and of filling vacancies, (but each director of a stock company
shall be the owner in bis own right, of at least five hundred dol-
lars worth of the stock of such company, at its par value), the
period for the commencement and termination of its fiscal year,
and the amount of capital to be employed in the transaction of its
business, and the Commissioner of Insurance shall have the right
to reject any name or title of any company applied for when he
shall deem the name too similar to one already appropriated, or
likely to mislead the public in any respect.
(3O29) $ 5. No company formed under this act shall direct-
ly or indirectly, deal or trade in buying or selling any goods,
wares, merchandize, or other commodities whatever, excepting
such articles as may have heen insured by such company, and are
deemed to be damaged by fire or water.
(3O3O) $ 6. No joint stock fire insurance company, organ, d
expose itself to any loss on any fire or inland transportation risk or
hazard to an amount exceeding ten per cent of its paid up capital.
No company formed under this act, for the purpose of doing the
business of fire or inland navigation insurance on the plan of mu-
tual insurance shall commence business until agreements have been
entered into for insurance with at least two hundred applicants the
premiums on which shall amount to not less than one hundred thous-
and dollars, of which twenty thousand dollars at least shall have
been paid in cash, and notes of solvent parties founded on actual
and bona fide applications for insurance, shall have been received
for the remainder. No one of the notes received as afore-
said shall amount to more than five hundred dollars, and no two
shall be given for the same risk, or be made by the same person or
firm, except where the whole amount of such note shall not ex-
ceed five hundred dollars. Nor shall any such note be represented
as capital stock unless a policy is issued upon the same within
thirty days after the organization of the company. Upon a risk
which shall not be for a shorter period than twelve months, each of
said notes shall be payable in part or in whole at any time when
the directors shall deem the same requisite for the payment of losses
by fire or inland navigation, and such incidental expenses as may
be necessary for transacting the business of said company. And
no note shall be accepted as part of such capital stock unless the
same shall be accompanied by a certificate of a justice of the
peace of the town or city where the person making such note shall
reside, that the person making the same is in his opinion pecuni.
INSURANCE.
arily good and responsible for the safne; and no such note shall be
surrendered during the life of the policy for which it was given.
(3031) $ 7. It shall and may be lawful for the individuals asso-
ºciated for the purpose of organizing any company under this act
after having published the notice and filed the declaration and
charter as required by the third section of this act, and also on
filing in the office of the commissioner of insurance, proof of such
publication by the affidavit of the publisher of such newspaper, his
foreman or clerk, to open books for subscription to the capital
stock of the company so intended to be organized, and to keep
the same open until the full amount specified in the charter is
subscribed; or in case the business of such company is proposed.
to be conducted on the plan of mutual insurance, then to open
books to receive propositions, and to enter into agreements in
the manner and to the extent specified in the sixth section of
this act.
(3032) $ 8. It shall be lawful for any insurance company or-
ganized under this act, or any such company under any law of
this Territory, to invest its capital and the fund accumulated in
the course of its business, or any part thereof, in bonds and mort-
gages on any improved unincumbered real estate within the Ter-
ritory of Oklahoma, worth fifty per cent more than the sum loaned
thereon (exclusive of buildings, unless such buildings are insured
and the policy transferred to said company,) and also in the bonds
of this Territory or bonds or Treasury notes of the United States;
and, in the bank stock of national banks; and, also in the stock
and bonds of any county or incorporated city in this Territory
authorized to be issued by the Legislature; and to lend the same,
or any part thereof, of such stock or bonds or Treasury notes,
or upon bonds or mortgages as aforesaid, and to change and to re-
invest the same as occasion may from time to time require, but
any surplus money over and above the capital stock of such fire or
other insurance companies, or any such insurance companies in-
corporated under any law of this Territory, may be invested in or
loaned upon the pledge of the public stock or bonds of the United
States or any one of the states of the stock bonds or other eviden-
ces of indebtedness of any solvent, dividend paying institution in-
corporated under the laws of this Territory or of the United Sta-
tes except their own stock; Provided, always, That the current
market value of such stocks, bonds and other evidences of indebt-
edness shall be at all times during the continuance of such loans
at least ten per cent more than the sum loaned thereon.
(3O33) $ 9. No company organized by or under this act shall
purchase, hold or convey real estate, excepting for the purposes
and in the manner herein set forth, to-wit: First, Such as
shall be requsite for its convenient accommodation in the trans-
action of business or second. Second, Such as shall have been
mortgaged to it in good faith by way of security for loans pre-
viously contracted or for money due. Third, Such as shall
ſhave been conveyed to it in satisfaction of debts previously
contracted in their legitimate business or for money due; or,
Jourth, Such as shall have been purchased at sales upon judg-
INSURANCE.
“*-
620 *
ments, decrees or mortgages ebtained or made for such debts; and it
shall not be lawful for any such company to purchase, hold or
convey real estate in any other case or for any other purpose; and
all such real estate as may be acquired as aforesaid, and which
shall not be necessary for the accomodation of such company in
the transaction of its business, shall be sold and disposed of with-
in five years after such company shall have acquired title thereto,
unless the company shall procure a certificate from the Commis-
sioner of Insurance that the interest of the company will suffer
materially by a forced sale thereof; in which event the sale may
be postponed for such period as the said Commissioner shall direct
in said certificate; and the said Commissioner may also give such
- certificate and extend the time for holding real estate in like cir-
cumstances, on the application of any insurance company hereto-
fore incorporated. *~.
charter-etc., (3034) $ 10. The charter and proof of publication herein re-
:::::::"gº quired to be filed by every such company, shall be examined by
**.*.*.* the Attorney-General. and if found conformable to this act, and
}. corn m i S-
O O
her...ot in not inconsistent with the Oaganic Act or laws of this Territory,
surance; cer-
tº cate filed, shall be certified by him to the Commissioner of Insurance, who
tº;"º shall thereupon cause an examination to be made, either by him-
dence. self or by three disinterested persons specially appointed by him
for that purpose, who shall certify under oath, that the capital
therein required of the company named in the charter, according
to the nature of the business proposed to be transacted by such
company has been paid in and is possessed by it in money or in
such stocks and bonds and mortgages as are required by the
eighth 'section of this act; or if a mutual company, that
has received and is in actual possession of the capital,
premium or bona fide engagements of insurance or other
securities, as the case may be, to the full extent and of the
value required by the sixth section of this act, and the name and
the residence of the maker of each premium note forming part of
the capital, and the amount of such note, shall be returned to said
commissioner, and the corporators and officers of such company
shall be required to certify under oath that the capital exhibited
to these persons is bona fide property of the company. Such cer-
tificate shall be filed in the office of said commissioner who shall
thereupon deliver to such company a certified copy of the charter
and of said certificates, which on being filed in the office of the
clerk of the county where the company is to be located shall be their
authority to commence business and issue policies; and such cer-
tified copy of the charter and of said certificates may be used in
evidence for or against said company with the same effect with the
originals, and shall be conclusive evidence of the fact of the or-
ganization of such company.
(3035) $ 11. The corporators or the trustees or the directors,
as the case may be, of any company organized under this act,
all have power to make such by-laws not inconsistant with the
Organic Act or the laws of this Territory, as may be deemed
necessary for the government of its officers and the conduct of its
affairs and the same when necessary to alter and amend; and
Chap. 44.
*~.
INSURANCE.
they and their successors may have a common seal and may change
and alter the same at their pleasure.
(3036) $ 12. It shall not be lawful for the directors, trustees
or managers of any such insurance company to make any dividend
except from the surplus profits arising from their business; and in
estimating such profits there shall be reserved therefrom a sum
equal to the whole amount of unearned premiums on unexpired risks
and policies and there shall be reserved all sums due the
corporation on bonds and mortgages, stocks and book accounts of
which no part of the principal or interest thereon has been paid
during the last year, and for which foreclosure or suit has not
been commenced for collection, or which after judgment obtained
thereon, shall have remained more than two years unsatisfied and
on which interest shall not have been paid, and also there shall be
which interest shall not have been paid, and also there shall be re-
served all interest due or accrued and remaining unpaid: Provid-
ed, always, That any company may declare dividends not exceed-
ing ten per cent on its capital stock in any one year, that shall
have accumulated and be in possession of a fund in addition to
the amount of its capital stock and of such dividend, and all actual
outstanding liabilities equal to -one half of the amount of all
premiums on risks not terminated at the time of making such
dividends. Any dividend made contrary to these provisions shall
subject the company making the same to a forfeiture of its char-
ter, and each stockholder receiving it to a liability to the creditors
of such company to the extent of the dividend received, in addi-
tion to the other penalties and punishments in such case made
and provided. This section shall not apply to the declaration of
scrip dividends by participating companies, but no such scrip div-
idends shall be paid except from surplus profits after reserving all
sums as above provided, including the whole amount of premiums
on unexpired risks. The word “year” whenever used in this sec-
tion shall be construed to mean the calendar year.
(3937) $ 13. All notes deposited with any mutual insurance
company at the time of its organization, as provided in section 6
shall remain as security for all losses and claims until the accumu-
lation of the profits invested as required by the eight section of this
act, shall equal the amount of cash capital required to be possess-
ed by stock companies organized under this act, the liability of
each note decreasing proportionately as the profits are accumulated;
but any note which may have been deposited with any such mutual
insurance company subsequent to its organization in addition to the
cash premium, or any insurance effected with such company may, at
the expiration of the time of such insurance, be relinquished and
given up to the maker thereof or his representative, upon his pay-
ing his proportion of all losses and expenses which may have ac-
crued thereon, during such term. The directors or trustees of any
such company shall have the right to determine the amount of the
note to be given in addition to the cash premium by any person
insured in such company, but in no case shall the note be more
than five times the whole amount of the cash premium, and every
person effecting insurance in any mutual company organized under
621
Chap. 44.
inSURANCE.
this act, and also their heirs, executors, administrators and assigns
continuing to be insured shall thereby become members of said
corporation during the period of insurance, and shall be bound to
pay for losses and such necessary expenses as aforesaid accruing
in and to said company in proportion to said amount of his
deposit note or notes. The directors shall as often as they
ideem necessary after receiving notice of any loss or damage
by fire sustained by any member and ascertaining the same, or
after the rendition of any judgment against said company
for loss or damage, settle and determine the same to be paid
by the several members thereof, as their respective portion
of such loss, and publish the same in such manner as they shall.
see fit, or , as the by-laws shall have prescribed. and the sum
to be paid by each member shall always be in proportion to the
original amount of his deposit note or notes, and shall be paid to
the officers of the company within thirty days after the publica-
tion of said notice, and if any member shall for the space of thirty
days after the publication of said notice, and service of such notice
upon such member by mail, directed to him at his postoffice
address as written in or upon his application for insurance,
neglect or refuse to pay the sum assessed upon him as his propor-
tion of said loss as aforesaid in such case, the directors may sue
for and recover the whole amount of his deposit note or notes,
with cost of suit, but the execution shall only issue for assessments
and costs as they accrue. If the whole amount of the deposit
notes shall be insufficient to pay the loss occasioned by any fire or
fires in such case the sufferers insured by the said company shall
receive, toward making good their respective losses, a propor-
cional share of the whole amount of Said notes, according to the
sums by them respectively insured, but no member shall ever be
required to pay for any loss occasioned by fire or inland navigation
more than the whole a mount of his deposited note. sº
(3038) $ 14. Every fire or other insurance company hereafter
organized, if it be a mutual company, shall employ the word
“mutual” in its title, which shall appear on the first page of every
policy and renewel receipt; and every company doing business as
a joint stock company shall upon the face of its policy, in some
suitable manner, express that such policy is a stock policy.
(3039) $ 15. Suit at law may be maintained by any corpor-
ation formed under this act against any of its members or stock-
holders for any cause relating to the business of such corporations,
aiso suits at law may be prosecuted and maintained by any mem-
ber or stockholder against such corporation for any losses which
may have accrued if payment is withheld after such losses may
have became due.
(3040) $ 16. The trustees and corporators of any company
organized under this act, shall be severally liable for all debts or
responsibilities of such company, to the amount by him or them
subscribed, until the whole amount of the capital of such company
shall have been paid in, and a certificate thereof recorded as here-
inbefore provided. Notes taken in advance of premiums under
this act, are not to be considered debts of the company, in deter-
S-> -
, INSURANCE. 628
mining whether a company is insolvet, but are to be regarded as Chap. 44.
- assets of the company.
(304I) $ 17. Any existing joint stock fire insurance company joint atoen,
heretofore incorporated under the laws of this Territory, and any ::::::"...º.
company organized under this act, having a capital of at least one ºf ººl
hundred thousand dollars ($100,000), may without increasing its # *:::::
capital at any time, within two years previous to the termination companye .
of its charter, after giving notice at least once a week for four
weeks successively, in a newspaper published in the county where
such company is located, of such intention, and with a declaration
under its corporation seal, signed by the president and two thirds
of its directors, of their desire for an extension, extend the term
of its original charter to the time specified in the twenty-sixth
section of this act, by altering and amending the same so as to
accord with the provisions of this act, and filing a copy of such
amended charter with the declatarion aforesaid, in the office of the
Commissioner of Insurance, whereupon the same proceedings shall
be had as are required in the tenth section of this act. And any
mutual insurance company heretofore incorporated or organized
under any of the laws of this Territory, having surplus assets aside
from premiums and stock notes, sufficient to reinsure all its
outstanding risks, after having given notice once a week, for four
weeks of their intention, and of the meeting hereinafter provided
for, in a newspaper published in the county where such com-
pany is located, may with the consent of two thirds of its incor-
porators or members, present at any regular annual meeting, or at
any special meeting duly called for the purpose or with the con-
sent, in writing, of two thirds of the incorporators or members of
such company, and the consent also of three fourths of the trustees
or directors, unless otherwise provided in the charter, become a
joint company by conforming its charter to and otherwise proceed-
ing in accordance with this act; and every member of such com-
pany on the day of such annual or special meeting or the date of
said written consent, shall be entitled to priority to such capital
stock of said company for one month after the opening of the books
of subscription to such capital stock in proportion to the amount
of cash premiums paid by such members on unexpired risks in
force on the day of said annual or special mecting, or the date of
such written consent; and every company so extended or changed
shall come under the provisions of this act, in the same manner as
if it had been incorporated originally under this act.
(3o42) $ 18. Any existing fire insurance company and any
company formed under this law may at any time increase the Inerease e:
amount of its capital stock after notice given once a week for four ****
weeks in any newspaper published in the county where such com-
pany is located, of such intention with the written consent of
three-fourths in amount of its stock holders, unless otherwise pro-
vided in its charter, or if a mutual company, with the unanimous
consent of its trustees unless otherwise provided in its charter by
altering or amending their charter in this respect, and filing a
copy of their charter so amended together with a declaration
under its corporate seal, signed by its president and directors, of
* A $ * *
Oxºſ • insur ANCE. *
Chap. 44. their desire to do so, with such written consent of three-fourths in
amount of its stockholders, or the unanimous consent of its trus-
tees as aforesaid, to such increase, in the office of the Commis-
sioner of Insurance and upon the same proceedings had as are
required by the tenth section of this act.
tº: (3 243) § 19. All insurance companies heretofore organized in
formed ºut, the Territory of Oklahoma and now doing business in this Terri-
*****tory, are hereby brought under all the provisions of this act, ex-
cept that their capital may continue of the amounts and character
named in and authorized by their respective charters during the
existing terms of such charters, and the investment of the capital
and assets of such companies may remain the same as prescribed
by their charters, anything in this act to the contrary notwith-
* standing, and such companies shall also be entitled to the privi-
leges and powers granted by said charters.
tº sº; (3o44 $ 20. All companies incorporated or extended under
politic. this act shall be deemed and taken to be bodies corporate and
politic, in fact and in name, and shall be subject to all the pro-
visions of law in relation to corporations so far as the same are ap-
* plicable. º
...”.' ... (3O45) $ 21. It shall be the duty of the president or vice-
#: of president and the secretary of each company organized under this
act, or incorporated under any law of this Territory annually on
the first day of January, or within one month thereafter, to pre-
pare under their own oath or deposition in the office of the Com-
missioner of Insurance of the Territory, a statement of the con-
dition of such company on the thirty-first day of December then
next preceeding, exhibiting the following facts and items in the
following form, namely.
First. The amount of the capital stock of the company actually
paid in.
Second. The property or assets held by the company, specify-
1119
º The value as nearly as may be of the real estate held by
such company:
(b) The amount of cash on hand and deposited in banks to the
credit of the company, specifying in what banks the same are de-
posited.
(c) The amount of cash in the hands of agents and in course of
transmission.
(d) The amount of loans secured by mortgages and bonds, con-
stituting the first lien on real estate, on which there shall be less
than one year's interest due or owing.
(e) The amount of loans on which interest shall not have been
paid within one year previous to such statement.
(f) The amount due the company on which judgments have
been obtained.
(g) The amount of stocks of this Territory, of the United States
or any state, or any incorporated city in this Territory and any
other stocks owned by the company, specifying the amount,
number of shares and “par” and “market" value of each kind of
stock,
IN SURANCE.
(h) The amount of stocks held thereby as collateral securitiss
for loans with the amount loaned on each kind of stock, its paş
value and the market value.
(i) The amount of assessment on stock or premium notes paid
and unpaid, specifying each.
(j) The amount of interest actually due and unpaid.
(k) The amount of premium notes on hand on which policies
are issued.
(l) The amount of installment notes on hand on which policies
are issued.
Third. The liabilities of such company specifying:
(a) The amount of losses due and yet unpaid.
(b) The amount of claims resisted by the company and the
reason why such claims are resisted.
(c) The amount of losses incurred during the year including
those claimed and not due, and including the probable amount of
those reported to the company, upon which no action has been taken.
(d) The amounts of dividends declared and due and remaining
unpaid.
(e) The amount of dividends, if any, declared but not yet due.
(f) The amount of money borrowed and security, if any, given
for the payment thereof.
(g) All other existing claims against the company and also the
gross amount of Outstanding risks, and the gross amounts of pre-
miums thereon unearned.
Fourth. The income of the company during the preceding year,
specifying:
(a) The amount of cash premiums received.
(b) The amount of notes received.
(c) The amount of interest money received.
(d) The amount of income received from other sources, or:
Fifth. The expenditures during the preceding year, specifying:
(a) The amount of losses paid during the year, stating how much
of the same accrued prior and how much subsequent to the date of
the preceding statement and the amount at which such losses were
estimated in such preceding statement.
(b) The amount of dividend paid during the year.
(c) The amount of expenses paid during year, including commis-
sions and fees to agents and officers of the company.
(d) The amount paid in taxes, specifying the annount paid in his
Territory.
(e) The amount of all other payments and expenditures.
It shall be the duty of the Commissioner to establish a classifica-
tion of risks into any number or classes not less than four, accord-
ing to the degree of hazard of such risk; and the Commissioner shall
require said companies as part of the aforementioned statement, to
give the numbers of policies in force, covering property embraced
in each of said classes, and the aggregate amount at risk upon the
property in each class. The Commissioner of Insurance is hereby
authorized and empowered to address any inquiries to any insur-
ance company, or secretary thereof, in relation to its doings or con-
->
I. L.-2
626 x - INSURANCE.
Chap. 44. ditions, or any other matter connected with ſts transactions and
it shall be the duty of any company so addressed to promptly re-
ply in in writing to any such inquiries. The statement of any
company, the capital of which is composed, in whole or in part, of
notes, shall in addition to the foregoing, exhibit the amount of
notes, originally forming the capital and also what proportion of
said notes are still held by such company and considered capital.
, Every insurance company, organized under any law of this Terri-
tory, failing to make out and deposit such statement, or to reply
to any inquiry of said commissioners shall be subject to the pen-
alty of five hundred dollars ($500), and an additional five hun-
dred dollars ($500) for every month that such company shall con-
tinue thereafter to transact any business of insurance without
complying with this section. It shall be the duty of the Commis-
- sioner of Insurance to cause the information contained in the state-
ment required by this section to be arranged in the tabular form
and printed in his biennial report.
rºleseem. (3046) $ 22. It shall not be lawful for any insurance company,
tº ...; association or partnership incorporated by or organized under the
vide of irocess. laws of any other territory or state of the United States, or
any foreign government for the purposes specified in this act,
directly or indirectly to take risks or transact any business of
insurance in this Territory unless possessed of the amount of
actual capital required by similar companies formed under the
provisions of this act; and any such company desiring to tran-
sact any such business as aforesaid, by any agent or agents in this
Territory, shall first appoint any attorney in each county in this
Territory on whom process of law can be served and filed in the
office of the Commissioner of Insurance of the Territory a written in-
strument duly signed and sealed certifying such appointment, which
shall continue until another attorney be substituted; and any pro-
cess issued by any court in this Territory, and served upon such at-
torney by the proper officer of the county in which such attorney
may reside or may be found shall be deemed a sufficient service of
process upon such company [service] may also be made in any other
manner provided in this act. In case any insurance company, not
incorporated in this Territory, shall cease to transact business in this
Territory, according to the laws thereof, the agents last designa-
ted or acting as such for such corporation, shall be deemed to con-
tinue agents for such corporation for the purpose of servrng pro-
cess for commencing action upon any policy or liability issued or
contracted while such corporation transacted business in this Ter-
ritory; and service of such process for the cause aforesaid, upon any
such agent, shall be deemed a valid personal service upon such
corporation. And every such company, association or partnership
shall also file with the Commissioner of Insurance a certified copy
of their charter together with a statement, under the oath of the
president or vice-president or other chief officer, and secre-
tary of the company for which he or they may act stating the
name of the company and place where located, the amount of its
capital, with a detailed statement of its assets showing the amount
wQſ sº ea hand, in the banks or in the hands of agents, the
----- *...,
*
INSURANCE. ,
amount of real estate and how much the same is encumbered by
mortages, the number of shares of stocks of every kind owned by
the company, the par and market value of the same, amount loaned
on bond and mortgage, the amount loaned on the security stating
the kind and amount loaned on each, and the estimated value of
the whole amount of such securities, and other assets or prop-
erty of the company, also stating the indebtedness of the com-
pany, the amount of losses adjusted and unpaid, the amount
incurred and in process of adjustment, the amount resisted
by the company as illegal and fraudulent, and all other
claims existing against the company; also a copy of the last an-
nual report, if any, made under any law of the Territory, or state
by which said company was incorporated; and no agent shall be
allowed to transact business for any such company whose capital
is impaired to the extent of twenty per cent thereof while such de-
ficiency shall continue. The stocks and securities so deposited may
be exchanged from time to time, for other securities receivable as
aforesaid. And so long as the company so depositing shall con-
tinue solvent and comply with the laws of this Territory, such com-
pany or association may be permitted by the said commissioners to
collect the interest or dividend on said deposits, and where a de-
posit is made of bonds and mortgages accompanied by full abstracts
of titles and searchers, the fees for an examination of title the coun-
sel to be paid by the party making the deposits, shall not exceed
twenty dollars ($20) for each mortgage and the fee for the apprai-
sal of property shall be five dollars ($5) to each appraiser, not
exceeding two, besides expenses for each mortgage. Nor shall it
be lawful for any agent or agents to act for any company or com-
panies referred to in this section directly or indirectly in taking
risks or transacting the business of fire or other insurance in this
Territory without procuring from the Commissioner of Insurance,
of this Territory a certificate of authority stating that such com-
pany has complied with all the requsitions of this act which apply
to such companies, and the names of the attorneys appointed to act
for the company. The statements and evidences of investments re-
quired by this section shall be served from year to year in such
manner and form as may be required by said Commissioner with an
additional statement of any amount of premiums received and losses
incurred in this Territory during the preceding year, so long as
such agency continues; and the said Commissioner on being satis-
fied that the capital, securities and investments remain secure as
hereinbefore provided, shall furnish a renewal of the certificate as
aforesaid. Any violation of any of the provisions of this act, shall
subject the party violating the same to a penalty of five hundred
dollars($560) for each violation and of the additional sum of one
hundred [dollars] ($100) for each month during which any such agent
shall neglect to file such affidavits and statements as are herein re-
quired. Every agent of any insurance company shall in all adver-
tisements of such agency, publish the location of the company,
giving the name of the city or village in which the company is lo-
cated and the state or government under the laws of which it is
organized. The term “agent or agents" used in this section,
gº INSURANCE.
W &
shall include an acknowledged agent, surveyor, broker or any other
person or persons who shall, in any manner aid in transacting the
insurance business of any insurance company not incorporated by
the laws of this Territory. In the case of neglect or refusal to
nake such annual statement as aforesaid, all persons acting in this
Territory as agents or otherwise, in transacting the business of in-
surance for said companies, corporations, associations, partnerships
or individuals, shall be subject to the same penalties provided by
law in case of the failure of any insurance company organized
under the laws of this Territory to make an annual statement as
provided in this act. Foreign insurance companies shall be re-
quired to make and file their annual statements and evidences on
the first day of January in each year, or within thirty days there-
after, made out for the year ending on the preceding thirtieth of
September. The supplementary annual statements of their busi-
ness and affairs in the United States, duly verified by the resident
manager of such company shall be filed in the month of January
in each year, made out for the year ending the thirty-first day of
December immediately preceding.
(30+7) $23. It shall be the duty of the Commissioner of In-
surance of the Territory, whenever he may deem it expedient so
to do, in person or by one or more persons, to be appointed by
him for that purpose not officers or agents of, or in any manner in-
terested in any insurance company doing business in this Terri-
tory except as policy holders to examine into the affairs of any
insurance company incorporated in this Territory, or doing busi-
ness by its agents in this Territory; and it shall be the duty of the
officers or agents of any such company doing business in this Ter-
ritory, to cause their books to be opened for the inspection of the
Commissioner or the person or persons so appointed, and otherwise
to facilitate such examination so far as it may be in their power to
do, and to pay all reasonable expenses incurred therein; and for that
purpose the said Commissioner or person or persons so appointed by
him, shall have the power to examine under oath the officers
and agents of any company or any other person or persons rela-
tive to the business of said company, and whenever the said Com-
missioner shall deem it for the best interests of the public so to
do, he shall publish the result of said investigation in one or
nore newspapers in this Territory. And whenever it shall
appear to the said Commissioner from such examination that
the assets of any company incorporated in this Territory are
insufficient to justify the continuance in business of any such
company, he may direct the officers thereof to require the
stock-holders to pay in the amount of such deficiency within
such period as he may designate in such requisition, or he
shall communicate the fact to the Attorney General, whose duty
it shall then become to apply to the district court of the county in
which the principal officers of said company shall be located, for
an order requiring them to show cause why the business of such
company should not be closed, shall thereupon proceed to hear the
allegations and proofs of the respective parties; and in case it
shall appear to the satisfaction of said court that the assets and
->
** * INSURANCE.
funds of said company are not sufficient as aforesaid, or that the
interests of the public so require, the said court shall decree a dis-
solution of said company and a distribution of its effects. Any
company receiving the aforesaid requisition from the said commis-
sioner shall forthwith call upon its stockholders for such amounts
as will make its capital equal to the amount fixed by the charter
of said company and in case any stockholder of such company shall
refuse or neglect to pay the amount so called for after the notice
personally given or by advertisement, in such time and manner as
the said Commissioner shall approve, it shall be lawful for the said
company to require the return of the original certificate of stock
held by such stock-holder and in lieu thereof to issue new
certifiates for such number of shares as the said stock-holder may
be entitled to in proportion that the ascertained value of the
funds of the said company may be found to bear to the original
capital of the said company the value of such shares for which new
certificates shall be issued to be ascertained under the direction of
the said Commissioner, and the company paying for the fractional
parts of shares and it shall be lawful for the directors of such
company to create new stock and dispose of the same, and to issue
new certificates therefor to the amount sufficient to make up the
original capital of the company. And it is hereby declared that in
the event of any additional losses accruing upon new risks taken
after the expiration of the period limited by said Commissioner, in
the aforesaid requisition for the filling up of the deficiency in the
capital of such company, and before such deficiency shall have
been made up, the directors shall be individually liable to the ex-
tent thereof. And if upon such examination, it shall appear to
the said Commissioner that the assets of any company chartered
on the plan of mutual insurance, under this act, are insufficient to
justify the continuance of such company in business, it shall be
his duty to proceed in relation to such company in the same man-
ner as is herein required in regard to joint stock companies; and
the trustees or directors of such company are hereby made person-
ally liable for any losses which may be sustained upon risks taken
after the expiration of the period limited by said Commissioner
for filling up the deficiency in the capital and before such
deficiency shall have been brought up. Any transfer of the stock
of any company organized under this act, made during the pend-
ing of any such investigation, shall not release the party making
the transfer from his liability for losses which may have accrued
previous to the transfer. And whenever it shall appear to the
said Commissioner from the report of the person or persons ap-
pointed by him that the affairs of any company not incorporated
by the laws of this Territory, are in an unsound condition, he
shall revoke the certificates granted in behalf of such company,
and shall cause a notification thereof to be published in a news-
paper of general circulation published in the Territory, and mail
a copy thereof to each agent of the company, and the agent or
agents of such company, after such notice shall be required to dis-
continue the issuing of any new policy and the renewal of any
previously issued.
629
30 & INSURANCE,
Chap. 44. (3o48) $ 24. Every penalty provided for by this act, shall be
suits for pen-sued for and recovered in the name of the Territory of Oklahoma,
alties. by the county attorney of the county in which the company or
agent or agents so violating shall be situated, and one-half of
said penalty when recovered, shall be paid into the treasury of
said county and the other half to the informers of such violation;
and in the case of non-payment of such penalty, the party so
offending shall be liable to imprisonment for a period not exceed-
ing six months, in the discretion of any court having cognizance
thereof. Such penalties may also be sued for and recovered in
the name of the Territory of Oklahoma, by the Attorney-General,
and when sued for and collected by him shall be paid into the
Territorial treasury.
cº (3O49) $ 25. All companies incorporated or extended under
$16.3 T , , . tº º e e
fº.com: this act may provide in their charters for not more than thirty
3. years, but the legislature may at any time alter or amend this
act, and provide for the closing up of the business and affairs of
any company formed under it. Nothing herein contained shall
be construed to prevent subsequent extension of the charters of
companies organized or extended under this act.
Hºohºº (3050) $26. Any fire or other insurance company chartered
†edº by this Territory, may have a lien by passing a by-law to that
*iº effect, upon the stock or certificate of profits owned by any member
* for any debt hereafter to become due to said company for premiums,
by stating that said stock is subject to any such lien upon the cer-
tificates of stock or profits, and such lien may be waived by the
consent of the president of said company upon the transfer of any
such stock. Whenever it shall appear to the Commissioner of In-
surance of the Territory from an examination made by him in the
manner prescribed by law, that the capital stock of any joint stock
company organized pursuant to law, is impaired to an amount ex-
ceeding twenty per cent of such capital, and he shall be of the
opinion that the interests of the public will not be prejudiced by
permitting such company to continue business with a reduced
capital, it shall be lawful for such company with the permission of
the said commissioner to reduce its capital stock and the par value
of the shares thereof, to such amount as the said commissioner
may, under his hand and official seal certify to be proper, and as
shall in his opinion, be justified by the assets and property of
such company; Provid d, That no part of such assets and property
shall be distributed to the stockholders. And provided furth?r,
That the capital stock of any such company shall not be reduced
to an amount less than the sum now required by law for the or-
ganization of a new company under the general insurance laws for
the transaction of business at the place where such company is
located and of the kind which such company shall be made to
accept upon a resolution of its board of directors approved by at
least two-thirds of the directors and certified under the corporate
ae aſ signed by the president and at least by two-thirds of its di-
rectors, and proved or acknowledged in the manner required by
law for the proof or acknowledgment of conveyances; which cer-
tificate shall be filed in the office of said Commissioner before any
INSURANCE.
action shall be had by him thereon. The Insurance Commissioner
of the Territory in case he shall permit any such company to re-
duce its capital in the manner provided in this act, shall execute
the certificate required in this act, in duplicate and deliver one of
such certificates to the officers of such company, who shall forth-
with file the same with the clerk of the county in which the com-
pany is located, and the other such certificate shall be filed in the
office of said Commissioner. Such company upon filing such cer-
tificate with the county clerk as required by this act, shall with
such reduced capital possess the same rights and be subject to the
same liabilities that it possessed or was subject to at the time of
the reduction of its capital, and the charter of such company shall
be deemed to be amended in respect to the amount of capital and
the par value of the shares so as to conform to the reduction. It
shall be lawful for the said company to require the return of the
original certificate of stock held by each stockholder and in lieu
thereof, to issue new certificates for such numbers of shares as
each stockholder may be entitled to in proportion that the reduced
capital may be found to bear to the original capital of the com-
pany. It shall be lawful for any such company s after its capital
shall be so reduced as aforesaid, to increase its capital stock in
the mode prescribed by this law. It shall be the duty of all re-
ceivers and trustees of insurance companies, during the month of
January of each year, and any time when required by the Insur-
ance Commissioner of the Territory, to make and file annual and
other statements of their assets and liabilities, and of their income
and expenditures in the same manner and form and under the
same penalties as the officers of such companies are now required
by law to make annual and other statements to the Insurance
Commissioner's office. The said Commissioner shall also cause
its annual statement required to be filed by this act, to be pub-
lished in one daily newspaper of general circulation not less than
fifteen days.
(3051) $ 27. There shall be paid to the Commissioner of In-
surance by every company, association, person or persons or agent
to whom this act shall apply, the following fees: For filing the
declaration or the certified copy of a charter herein required the
sum of thirty dollars ($30); for filing the annual statement required,
ten dollars ($10); for each certificate of authority to agents of com-
panies or association not incorporated under the laws of this Ter-
ritory, two dollars ($2); for each certificate of authority to agents
of companies incorporated under the laws of this Territory, fifty
cents (59); for every copy of paper filed in his office the sum of
twenty cents (20) per folio; and for fixing the seal of said office to
such copy and certifying the same, one dollar ($1); and in case two
or more companies shall combine and effect insurance under a
joint policy each and every company shall pay the fees provided
herein the same as if each company wrote separate and distinct
policies; and of the fees so received by the Commissioner,
thirty-five per cent shall be retained by him and the balance
be paid over to the Territorial Treasurer. Before any in-
surance company shall be permitted to do any business in this
531
Chap. 44.
Fees of corn-
mission er of
insurance.
682
.* * *NSURANCE.
*
*
~.
Chap, 44. Territory, such company, if a company organized within the Terri-
tory, shall pay a license tax to the Territory Treasurer of ten dol-
lars, and if organized under the laws of any other state, territory
or foreign government, the sum of twenty-five dollars, which li-
cense tax shall be required to be paid each year, thirty-five per
cent of which shall be paid to the Commissioner of Insurance.
(3052) $ 28. Agents appointed by any company doing busi-
ness in this Territory, to solicit for application for insurance to
collect the premiums on the same and to transact the other duties
of agents in such cases, shall be held personally responsible to
such company for any money received for such company; and in
case any such agent shall embezzle or fraudulently convert to his
own use or shall take or secrete with intent to embezzle and con-
vert to his own use without consent of such company, any money
belonging to such company which shall have come into his posses-
sion or shall be under his care by virtue of his agency, he shall be
deemed by so doing, to have committed the crime of larceny, and
on conviction, shall be subject to the fines and penalties provided
by the statutes in such cases.
*** (3053) $ 29. Whenever the existing or future laws of any
state or territory of the United States, or any other kingdom or
country, shall require of insurance companies incorporated by or
organized under the laws of this Territory, and having agencies in
such other state, territory, kingdom or country, and deposits or
securities in such state, territory, kingdom or country, for the pro-
tection of policy holders, or otherwise, or any payment of taxes,
fines, penalties, certificates of authority, license fees, or otherwise
greater than the amount required for such purposes from similar
companies of other states by the then existing laws of this Terri-
tory, then and in every such case, all companies of such states
establishing or having heretofore established an agency or agencies
in this Territory, shall be and are hereby required to make the
same deposit for a like purpose with the Commissioner of Insur-
ance of this Territory, and to pay the Commissioner for taxes,
fines, penalties, certificates of authority, license fees and other-
wise, an amount equal to the amount of such charges and pay-
ments imposed by the laws of such territory or state upon the
companies of this Territory and the agents thereof: Provided,
That the payment requirza of such foreign companies shall in no
case be less than required by this act.
(3054) $ 30. Every agent of an insurance company incorpora-
£ed by the authority of any other state or government, shall re-
turn to the proper officer of the county, town, or municipality in
which the agency is established, in the month of January, annual-
ly, the amount of net receipts, of such agency, which shall be
entered on the tax lists of the county, town, and municipality, and
subject to the same rate of taxation for all purposes, Territorial,
county, town, arid municipality that other personal property is
subject to at the place where created.
(3055) $ 31. All fire or fire and marine insurance companies
organized under the laws of any foreign country establishing o'
flaving heretofore established an agency or agencies in this Terri-
". INSURANCE. º
} :
tory, shall be and are hereby allowed to make the deposit required
by the laws of this Territory in such bonds, stocks or other
securities of such foreign country: Provided, The same shall not
be received for more than par value, nor shall they in any case be
valued at more than their current market value.
(3056) $ 32. All insurance companies issuing policies in this
Territory shall be required to pay in case of total loss the full
amount, and in case of partial loss shall be required to pay the amount
of loss so sustained, for which the property is insured; Provided,
however, That no policy shall be issued which shall contain a sum
greater than seventy-five per cent of the value of the property so
insured.
(3057) $ 33. All insurance policies issued in this Territory
under this act, must be accompanied by a copy of the application
for insurance upon which the policy was issued, and such copy
shall be evidence in favor of the assured of the matter in his applica-
tion contained. *
This act shall take effect from and after the adjournment of this
session of the Legislative Assembly. -
ARTICLE 2.-FIRE INSURANCE.
§IECTION. | | SECTION.
1. Alteration of use; increasing risk. t 8. Act of insured not increasing risk.
2. Same; dot increasing risk. | 4. Measure of indemnity.
(3058) $ 1. An alteration in the use or condition of a thing
insured, from that to which it is limited by the policy, made without
the consent of the insurer, by means within the control of the insured,
and increasing the risk entitles the insurer to rescind a contract of
fire insurance. |
(3059) $ 2. An alteration in the use or condition of a thing in-
sured, from that to which it is limited by the policy, which does not
increase the risk, does not affect a contract of fire insurance.
(3060) $ 3. A contract of fire insurance is not affected by any
act of the insured subsequent to the execution of the policy, which
does not violate its provisions, even though it increases the risk, and
is the cause of a loss.
(3061) $ 4. If there is no violation in the policy, the measure or
indemnity in an insurance against fire is the full amount stated in
the policy; but the effect of a valuation in a policy of fire insurance
is the same as in policy of marine insurance. * *
I. L.—3
684 *: INSURANCE. --
Chap, 44. ARTICLE 3–LIFE AND HEALTH INSURANCE.
AN ACT to organize and regulate the business of life insurance.
[Took effect December 25, 1890.]
SECTION. SECTION.
1. Capital guaranteed; investment of. I6. Territorial Treasurer to receive de-
2. Examination by commissioner; fee. posts; income.
3. Section one applies to foreign com- I7. Valuing policies in special cases.
panies. 18. Life companies; not to insure what.
4. Who to choose directors in mutual I9. Rights of married women; may in-
companies. sure life of husband.
5. Annual statement. 2O. Conditional relations between state
6. The form for life insurance com- laws.
panies. 21. Foreign companies; deposit copy of
§ Foreign companies; statement of. charter, etc.
. Companies without the United 22. To exhibit name or style of com-
States; statement. pany, etc.
9. Neglect to make returns; penalty. 23. Who are agents of foreign com-
Io. Stop issuing policies, when. panies.
II. Investment of funds. 24. Penalty.
12. Investment in other states. 25. Commissioner’s fees.
13. Inquiries by commissioner; revoke 26. Publishing biennial statements.
| certificate. 27. Insurance upon life, when payable.
14. Dividends by mutual companies. 28. Insurable interest in life and health.
15. Foreign companies; agent; service 29. Assignee of policy of life insurance.
of process. 30. Notice of the transfer.
31. Measure of indemnity.
Be it Enacted by the Legislative Assembly of the Territory of
Oklahoma:
capital guar (3062) $ 1. That before any life insurance company goes into
2.Ét.” operation, under the laws of this Territory, a guaranty capital of
at least one hundred thousand dollars, shall be paid in money,
and invested in the bonds of the United States, or of this Territory,
or of any county, or city or town of this Territory, estimated at
their market value, or in such other stocks and securities as may
be approved by the Commissioner of Insurance, or in mortgages,
being first liens on real estate in this Territory, the said real estate
\. being worth at least twice the amount of the money loaned thereon,
with abstract showing a good and sufficient title; and the cer-
tificate of two reputable land holders, under oath, certifying to
the value of said property.
Examination (3063) $ 2. No policy shall be issued until a certificate from
5...*.* the Commissioner has been obtained, authorizing such company
to issue policies. The said Commissioner shall examine the capi-
tal, and the majority of the directors shall make oath that the
money has been paid in by the stockholders towards payment of
their respective shares, and not for any other purpose, and that it
is intended that the same shall remain as the capital of the com-
pany, to be invested as required by the laws of this Territory.
Every insurance company incorporated in this Territory, shall
pay to said Commissioner, for the examination required by this
section, the sum of fifty dollars.
section ºne (3064) $ 3. It shall not be lawful for any person to act, within
:*::::: this Territory, as agent or otherwise, in receiving or procuring
Panies. applications for life insurance, or in any manner to aid in transact-
ing the business of life insurance, referred to in the first section
_--~ of this act, for any company or association incorporated by or or-
13
INSURANCE. 685
*
ganized under the laws of any other territorial or state govern- Chap: 44.
ment, unless such company has cenformed in this Territory, to the
same requirements in regard to capital, that are imposed by section
one of this act, upon companies in this Territory, or in lieu there-
of, has actual assets to the amount of at least one hundred thou-
sand dollars, invested in the same manner as is prescribed in re-
gard to capital in section one of this act.
(3065) $ 4. The subscribers, or holders of guarantee stock in who to choos.
a life insurance company, organized on the mutual or stock and jº."
mutual plan, shall choose the first board of directors, and at all panies.
subsequent elections they shall choose one-half of the directors,
and the holders of mutual policies the other half, until the redem-
tion of the guaranty stock, when the holders of mutual policies
shall elect all the directors.
(3066) $ 5. Every life insurance company incorporated in this annual state
Territory, or doing business in this Territory, shall, on or before meat.
the first day of of March in each year, transmit to the Commis-
sioner of Insurance, and file in his office a statement of its business
standing and affairs, in the form prescribed or authorized by law,
and adapted to the business done by such company, signed and ***
sworn to by the president or vice-president and secretary, and
made out for the year ending on the preceding thirty-first day of
December.
(3067) $ 6. The form for life insurance companies shall be as . The form for
follows: First. Name of the company. Second. When chartered. ...”
Third. For what purpose. Fourth. Where located. Fifth. State
in full the assets of the company. Sixth. Number of shares
owned in any bank; state par value, cost and market value per
share. Seventh. Number of shares owned in any railroad,
stating the corporate name of each and the amount invested in
-- each at cost, on its books; state the par value, and the market
value of each share. Eight/t. Amount owned in railroad bonds;
state par value, cost and market value per share. Ninth. Amount
invested in real estate, at cost on the books of the company.
Tenth. Amount loaned on mortgages of real estate, and esti-
mated value of said real estate. Eleventh. Amount loaned
on notes secured by collaterals of personal property. Twelfth.
Amount loaned on notes without collaterals. Thirteenth.
State in full all other investments. Fourteenth. How much
included in the forgoing statement of assets consists of
premium notes on policies not returned as now in force. Fift-
teenth. Number, date, kind and amount of each outstanding policy,
and age of the insured, excepting such policies as are subject to a
valuation by the proper officer in some other state, which shall be
- shown by certificate from the insurance department of such state.
Sixteenth. Number and amount of each class or kind of policies
which have within the year ceased to be in force; how terminated;
what has been paid to the legal holders of policies. Seventeenth.
Amount of losses ascertained and unpaid. Eighteenth. Amount
of losses claimer against the company, whether acknowledged as
due or not, by the company. Nineteenth. Amount due from the
compañy on its declared, promised or acknowledged indebtedness,”
º
686
INSURANCE.
or other claims, including dividends, bonuses on distribution of -sur-
plus, or as profits. Twentieth. Amount received for premiums the
past year. Twenty-first. Amount received for premiums in cash.
Twenty-second. Amount received for premiums in promissory notes
or securities. Twenty-third. Amount received for interest the past
year. Twenty-fourth. Amount paid for interest the past year:
Twenty-fifth. Amount of guaranty funds, and state particularly
whether the same are in cash or subscription notes. Twenty-
siath. How are dividends, distributions of surplus funds, bonuses
or estimated profits paid, whether in cash, scrip or otherwise on
credit, and whether on demand; or, if on credit, for what length of
time, and whether payable at a specific time or indefinitely, at the
discretion of the company. Twenty-seventh. Amount paid for the
expenses, taxes and commission the past year classified.
(3068) $ 7. All life insurance companies, chartered or organ-
ized in any other state of the United States, or beyond the limits
of the United States, and doing business in this Territory, shall
make an annual statement of their condition and affairs to the
Commissioner of the Insurance department in the same manner
and in the same form as similar companies organized under the
laws of this Territory. The Commissioner shall have authority
to extend the time of filing such statement, for reasons which he
shall deem good and sufficient, whether the company is organized
in this Territory or elsewhere.
(3069) $ 8. Life insurance companies, chartered beyond the
limits of the United States, and doing business in this Territory,
shall make a return of their standing on the thirty-first day of
December in each year, agreeable to the form required by this act
of other companies doing a similar business in this Territory, said
return to be made to the Commissioner on or before the first day
of April, annually, and verified and sworn to before some consul
or vice-consul of the United States, by two or more of the princi-
pal officers of such insurance company.
(3070) $ 9. Any company doing business in this Territory,
neglecting to make returns in the manner and within the time
hereinbefore authorized and prescribed, shall forfeit one hundred
dollars for each day's neglect; and every company that wilfully
makes false statements, shall be liable to a fine of not less than
five hundred, nor more than one thousand dollars. Any new bus-
iness done by any company or its agents in this Territory, after
neglect to make the prescribed returns, shall be deemed to be done
in violation of law.
(307I) $ 10. When the actual funds of any life insurance
company doing business in this Territory, are not of net value
equal to the net value of its policies, according to the “combined
experience” or “actuary's" rate of mortality, with interest at four
per centum per annum, it shall be the duty of the Commissioner to
give notice to such company and its agents to discontinue issuing
new policies within this Territory, until such time as its funds
have become equal to its liabilities, valuing its policies as afore-
said. Any officer or agent who, after such notice has been given,
issues or delivers a new policy, from and on behalf of such com-
INSURANCE. -
•.2°
{
pany, before its funds have become equal to its liabilities as afore-
said shall forfeit, for each offense, a sum not exceeding one thousand
dollars.
(3072) $ 11. It shall be lawful for any company, organized in
this Territory, to invest its funds or accumulations in the bonds of
the United States, or of this Territory, or any county, city, or town
in this Territory, or in any National bank, or in such other stocks-
and securities as may be approved by the Commissioner, or in mort-
gages (being first liens) on real estate being worth at least twice the
amount of money loaned thereon.
(3073) $ 12. When any life insurance company, organized
under the laws of this Territory, shall transact business in any other
state, it may invest its surplus funds in such state in like security and
under the same restrictions as in this Territory.
(3074) $ 13. The Commissioner is hereby authorized and em-
powered to address any inquiries to any life insurance company,
or to the secretary thereof, in relation to its doings or conditions,
or any other matter connected with its transactions; and it shall
be the duty of any such company so addressed to reply promptly,
in writing, to any such inquiries; and all such companies not in-
corporated under the laws of this Territory, failing to answer all
such inquiries, shall not be authorized to transact any business in
this Territory, and their certificates of authority may be revoked
and cancelled. It shall be the duty of the Commissioner to make
or cause to be made an examination of the condition and affairs
of any life insurance company doing business in this Territory,
whenever he shall deem it expedient to do so; and, also, when-
ever he shall have good reason to suspect the correctness of any
annual statement, or that the affairs of any company making such
statements are in an unsound condition.
(3075) $ 14. Life insurance companies, doing business in this
Territory, which do business upon the principle of mutual insur-
ance, or the members of which are entitled to share in the surplus
funds thereof, may make distributions of such surplus as may have
accumulated, annually, or once in two, three, four, or five years,
as the directors thereof may from time to time determine. In de-
termining the amount of the surplus to be distributed, there shall
be reserved an amount not less than the aggregate net value of
all outstanding policies, said value being computed by the com-
bined experience or actuary rate of mortality, with interest not ex-
ceeding four per cent.
(3076) $ 15. Every life insurance company, not organized in
this Territory, before doing business in this Territory shall in
-writing, appoint an attorney, resident in this Territory, upon
whom all lawful processes against the company may be served,
with like effect, as if the company existed in this Territory, and
said writing, of power of attorney, shall stipulate and agree, on
the part of the company making the same, that any lawful process
against said company which is served on said attorney, shall be of
the same legal force and validity as if served on said company. A
copy of the writing, duly certified and autheriticated, shall be filed
in the office of the Commissioner, and copies served by him shall
insukANCÉ.
be sufficient evidence. This agency shall be continued while any
liability remains outstanding against the company in this Terri-
tory, and the power shall not be revoked until the same power is
given to another, and a like copy filed as aforesaid. Service upon
said attorney shall be deemed sufficient service upon the company.
(3077) $ 16. The Treasurer of the Territory, in his official
capacity, shall take and hold on deposit the securities of any life
insurance company incorporated under the laws of this Territory,
which are deposited by any such company for the purpose of
securing policy holders, and complying with the laws of any state,
ſh order to enable such company to transact business in such state.
The company depositing such securities shall have the right to
receive the income thereof, and at any time to exchange the
same, according to the laws of the state in which they may be do-
ing business.
(3078) $ 17. If any life insurance company, organized in this
Territory, or in any other state of the United States, or in any
foreign country, whose policies are not valued by the insurance
department or proper officers of any other state, shall transact
business in this Territory; it shall be the duty of the commis-
sioner to calculate the existing value of all outstanding policies of
such company; and every such company shall pay, annually, to
the Commissioner of Insurance of this Territory, by way of com-
pensation for the valuation of its policies, three cents on every
one thousand dollars insured by it on lives.
(3979) $ 18. No life insurance company organized under the
laws of this Territory, shall issue policies insuring fire or marine
or accident or live stock risks, nor do any banking business.
(3980) $ 19. It shall be lawful for any married woman, by
herself, and in her own name, or in the name of any third person,
with his assent as her trustee, to cause to be insured, for her sole
use, the life of her husband, for any definite period or for the term of
his natural life and in case of her surviving such period or term the
sum or net amount of the insurance becoming due and payable by
the terms of the insurance, shall be payable to her, to and for her
own use, free from the claims of the representatives of her husband
or of any of his creditors: Provided, however, That if the prem-
ium of such policy is paid by any person with intent to defraud
his creditors, an amount equal to the premium so paid, with in-
terest thereon, shall inure to the benefit of said creditors, subject
however, to the statute of limitations. The amount of the insur-
ance may be made payable, in case of the death of the wife, before
the period at which it becomes due, to his, or their children, for
their use, as shall be provided in the policy of the insurance, and ,
their guardian if under age, and shall be exempt from execution.
(308 I ) $ 20. Whenever the existing or future laws of any
other state of the United States shall require of life insurance com-
panies, incorporated by or organized under the laws of this
Territory, and having agencies in such other state, or of the
agents thereof, any deposits of securitias in such state for the
protection of policy holders or otherwise, or any payment for
taxes, fines, penalties, certificates of authority, license fees of
INSURANCE. '
otherwise, greater than the amount required for such purposes from
similar companies of other states by the then existing laws of
this Territory, then and in every such case, all life insurance
companies of such states, establishing or having heretofore
established an agency or agencies in this Territory, shall be and
are hereby required to make the same deposit for a like purpose,
with the Territorial Treasurer of this Territory, and to pay to the
Commissioner, for taxes, fines, penalties, certificates of authority,
license fees or any other obligations, an amount equal to the
amount of such charges and payment imposed by the laws of
such other state upon the companies of this Territory and the
agents thereof.
(3082) $ 21. Every life insurance company, not organized
under the laws of this Territory. shall before doing business in
this Territory, deposit with the Commissioner a copy of the char-
ter of the company, and a statement signed and sworn to by the
president or vice-president and secretary, in the form prescribed
or authorized for the annual statement adapted to the business
done by such company.
(3O83) $ 22. Every person acting for a life insurance com-
pany not incorporated in this Territory, shall exhibit in conspic-
uous letters, on the sign designating his place of business, the
name of the state under whose authority the company he repre-
sents has been incorporated; and said company and agents, shall
also, have printed in large type the name of said state upon all
policies issued to citizens of this Territory, and on all placards,
pamphlets and circulars published, issued or circulated in this
Territory, by them or him, relating to the business of said com-
pany.
(3O84) $ 23. Whoever solicits insurance on behalf of any life
insurance company, not charted by, and not established within
this Territory, or transmits, for any person other than himself, an
application for life insurance; or a policy of life insurance, to or
from such company, or advertises that he will receive or transmit
the same, shall be held to be an agent of such company to all in-
tents and purposes, and subject to all the duties, requisitions, lia-
bilities and penalties set forth in the laws of this Territory, re-
lating to life insurance companies not incorporated by the legis-
lature thereof.
(3085) $ 24. Any agent making insurance in violation of any
law of this Territory regulating life insurance companies, shall
forfeit for each offense, a sum not exceeding five hundred dol-
lars.
(3O86) $ 25. For filing the annual statement required in the
office of the Commissioner, if incorporated in this Territory, the
said Commissioner shall be paid ten dollars; foreign corporations
the sum of fifty dollars; for each agent's certificate of authority
two dollars, for every copy of a paper filed in the commissioner's
office, twenty cents per folio; and for affixing the seal of said
office to such copy and certifying the same, one dollar; and for
examining the affairs of any company, when deemed necessary,
the expe: es incurred therein, shall be paid to the said Commis-
639
Chap. 44.
Foreign com-
panies, depos-
it of charter,
etc.
To exh i b 11
name or style
of comp a n v
etc.
Wh o a r a
agents for for-
eign compan-
168,
Penalty.
Commission-
ers’ fees.
640
INSURANCE.
sioner by the company: Provided, That forty per cent of all the
fees collected by the Commissioner of insurance under the provi-
sions of this act, shall be credited to said Commissioner, and the
remaining sixty per cent be paid into the treasury of the Terri-
tory.
(3O87) $ 26. The Commissioner shall, biennially, prepare and
print in a single document the information contained in the state-
ments made under this act, and shall communicate the same to
the general assembly. He shall also cause the biennial, statements
required to be filed by this act to be published not less than one
week in two daily newspapers of general circulation, published in
this Territory.
(3O88) $ 27. An insurance upon life may be made payable
on the death of the person, or on his surviving a specified period,
or periodically so long as he shall live, or otherwise contingently
on the continuance or determination of life.
(3O89) $ 28. Every person has an insurable interest in the life
and health:
First. Of himself.
Second. Of any person on whom he depends wholly or in part
for education or support. **
Third. Of any person under a legal obligation to him for the
payment of money, or respecting property or services, of which
death or illness might delay or prevent the performance; and,
Fourth. Of any person upon whose life any estate or interest,
vested in him, depends.
(3090) $ 29. A policy of insurance upon life or health may
pass by transfer, will, or succession, to any person, whether he has
an insurable-interest or not, and such person may recover upon it
whatever the insured might have recovered.
(3091) $ 30. Notice to an insurer of a transfer or bequest
thereof is not necessary to preserve the validity of a policy of in-
surance upon life or health, unless thereby expressly required.
(3092) $ 31. Unless the interest of a person insured is sus-
ceptible of exact pecuniary measurements the measure of indemnity
under a policy of insurance upon life or health is the sum fixed in
the policy. • *
178
insukANCE. [Ch. 17
Directors,
Members.
Who are.
Vacancies in
office.
Officers, who
elig ible.
Meetings of
board.
President's
uties.
SECTION 9. Election of directors shall be held an:
nually at the principal office of the company. Each
member of the association shall have one vote at any
election of the association, for not less than five (5) nor
more than thirteen (13) directors, and the majority or
plurality of the votes cast shall determine the election
of any person. Votes shall be cast by the members
present and by proxy. Said board of directors shall
elect a president, secretary and treasurer, who shall hold
office for a period of two years, or until removed by the
board. ---
SECTION 10. Any person taking a policy of insurance
upon grain, stock or farm buildings and paying a
premium of one ($1.00) dollar or more shall be deemed
a member of the association for the purpose of such elec.
tion for the time that his policy is to run.
SECTION 11. In case of a vacancy by death or other-
wise in the office of the president, secretary or treasurer,
the board of directors are authorized to fill such vacancy,
and no person shall be permitted to serve in either office
who at the time is not a policy holder.
SECTION 12. No person shall be eligible to election to of.
fice in the association unless he is a farmer by occupation.
SECTION 13. The board of directors shall be subject
to the call of the president. In the absence or neglect of
the president, the majority of the board may call a meet-
ing at the principal office of the association at such time
or times as the by-laws may prescribe, but the board shall
in no event meet less frequently than twice a year, of
which times one shall be in the Spring and one shall be
in the Fall of each year. At the Spring meeting a full
and complete report of the condition of the association
shall be made.
SECTION 14. The president shall preside at all meet-
ings of the directors, and perform such other duties as
the by-laws may require, and he shall receive as full com-
pensation a salary not to exceed four hundred dollars per
annum. In the absence of the president the directors
may elect a temporary president.
.**
:
Ca. 17] INSURANCE. 179
• SECTION 15. The board of directors, with the presi- ;lºt”.
dent, shall appoint a board of appraisers, to assess
damages to property insured, at such time or times as
the board may see fit, with the power to change the per-
sons composing the board at such time or times as the
directors may see fit. Iº
SECTION 16. The secretary shall keep correct minutes Secretary,
of the proceedings of the board of directors and keep the"
records of the association. He shall issue all notices,
keep an impression copy of all letters sent, keep in proper
letter books all fetters received, receive all moneys and
funds belonging to the association, keep a record of such
moneys and funds and turn them over in the condition
they were received by him to the treasurer of the associa-
tion, taking the treasurer’s receipt therefor upon his
books of account; the record of such funds shall be kept
in a book having stubs and the secretary's payment to
the treasurer shall be upon warrants numbered in reg-
ular order, the stubs having corresponding numbers to
the warrants, and the secretary shall take from the treas-
urer receipts-numbered with the identical numbers of the
warrants. The stub of the secretary’s book shall show the
date and amount and the source from which, and the pur-
pose for which the money or other property was paid in.
The secretary shall have charge of the clerical business
of the association, subject to the direction of the board
of directors, and he shall receive as full compensation a
salary not to exceed nine hundred dollars per annum.
SECTION 17. The treasurer shall receive from the sec- 3.
retary and have custody of all moneys and funds arising
from the assessments levied and such other moneys, funds
and assets as may, from time to time, be received by the
association, for its use or benefit. He sht ll keep an ex-
act account of all moneys, funds and property, and all
moreys paid out by the association shall be paid out by
the treasurer, upon warrants in the form of checks, stat-
ing fully to whom they are paid and the purpose and the
claims upon which paid; each warrant shall be signed
by the secretary and countersigned by the president of
aso
INSURANCE. *. [CH. 17
*
Bond of
officers.
Removal of
officers.
Rebate.
the association. The treasurer shall take receipts for all
such sums paid by him and keep and file all receipts.
The warrants shall be numbered, and the accounts or
claims in payment for which they are given shall also
be numberel with the corresponding number of the war-
rant by which they are paid. The secretary shall keep
stubs of all warrants issued by him showing the date,
payee, amount, for what paid, and the number of the war.
rant. The treasurer shall make semi-annual statements
at the regular semi-annual meetings of the association
showing in detail the amount received and disbursed by
him since the last report, giving for each the name, date
and purpose of the receipt or disbursement and the num-
ber of the warrant or claim upon which the money or
property was received or disbursed. The directors shall
allow him reasonable compensation for his services.
SECTION 18. The secretary and treasurer shall each give
bond for the faithful performance of his duties in the sum
of twenty-five thousand ($25,000) dollars, payable to the
board of directors of the association and with sureties
worth at least double the amount of the bond, to the satis-
faction of the board.
SECTION 19. Any officer of the association may be re.
moved for incompetency, neglect or refusal to attend to
business, or for conduct unbecoming an officer, by a two-
thirds majority of the board of directors, or by a majori-
ty of the stockholders at one of the regular meetings
of such board or of such stockholders, or at a special
meeting of such board or such members, called for that
purpose. 1 ſ >
SECTION 20. In case at any annual meeting it shall
appear that the association has in its treasury the sum
of one thousand ($1,000.00) dollars or more accumulated
from the risk on grain over and above the funds reason-
ably necessary to carry on the business of the company
and pay its losses for that year, such sum shall be paid out
* as a rebate pro rata to the persons who had paid in:
sº.
-CH. 17] - INSURANCE). Y8)
surance upon growing grain during that year; no rebate
of less than twenty-five cents (0.25) shall be paid.
SECTION 21. The association may sue and be sued in Resident
its corporate name. It shall be the duty of the associa- agent.
tion to appoint, in writing, an agent in each county a
resident therein, on whom service of summons may be
had, and shall file said written appointment in the Office
of the county clerk, and in case said appointment is not
so made, then the association will be liable, in addition
to the loss incurred, [for] all damages the plaintiff may
sustain by reason of going to the county where the said
officers reside, including an attorney fee of not less than
one hundred dollars.
SECTION 22. In case of suit on any policy or obliga-Members' il-
tion of the association no member of the association shan”
be liable for any amount other than his premium on his
policy. Any judgment upon any policy or claim against
the association shall be paid in the same manner and
to the same extent as other claims. In case the losses
and claims exceed the maximum premium, less the nec-
essary expenses for the year, the amount collected, less
the necessary expenses shall be paid pro rata upon such
claims and losses and the association shall be released
from any further liability thereon.
SECTION 23. The officers of any company organized Annual re-
under this Act, shall annually, before the first day of port.
February of each year, make to the Commissioner of In-
surance, a full report of the financial condition of the
company of which they are officers, showing the financial
condition of the 31st day of December of the previous
year, and also a report of all the business transacted by
said company during the previous year, with a detailed
report of its receipts and expenditures, and in compli-
anae with Section 21, of Chapter 44, of the Statutes of
Oklahoma.
SECTION 24. The grant of corporate power in this Act Limitation,
contained is subject to alteration, suspension or repeal
in the discretion of the Legislative Assembly. • ,’
182
INSURANCE. r- [CH. 17.
Repeal.
Return of
money.
SECTION 25. All Acts and parts of acts inconsistent
herewith are hereby repealed. -
Section 26. This Act shall take effect and be in force
from and after its passage and approval.
Approved February 27, 1899.
*
*
ARTICLE 2.-INSURANCE of ScHool. PROPERTy,
SECTION. “SECTION.
1. Repeal. 2. Return of money.
AN-ACT to repeal Chapter 17, Session Laws, 1897, being an act to
rovide for the insurance of school houses and the Ériº: ., and
xtures thereof. sº
Be it Enacted by the Legislative Assembly of the Territory
of Oklahoma:
SECTION 1. That Chapter 17, Session Laws 1897, en-
titled “An Act to provide for the insurance of school
houses, and the furniture and fixtures thereof,” be and
the same is hereby repealed.
SECTION 2. It shall be the duty of the Territorial
Superintendent of Public Instruction, immediately upon
the passage and approval of this Act to return to the
county treasurers of the several counties, all moneys col-
lected under the provisions of Chapter 17, Laws of 1897,
from the various counties, less the proportionate amount
paid out for losses as required thereunder, to be by the w
said county treasurers distributed ratably among the sev-
eral school districts entitled thereto, and the said Super-
intendent is hereby authorized to draw his warra
against the funds so collected and in the hands of the
Treasurer of the Territory for the purpose of carrying
this Act into effect.
SECTION 3. This Act shall take efiect and be in force
from and after its passage and approval.
Approved March 2nd, 1899.
CH. 16] INSURANCE. 119
*
CHAPTER XVI.
INSURANOE.
ARTICLE. ARTICLE.
1. Fraternal Insurance Associa- 2. Relating to Mutual Insurance
tions. Companies.
ARTICLE 1.-FRATERNAL INSURANCE ASSOCIATIONS.
SECTION. SECTION.
1. Fraternal Beneficiary Associ- 10. Associations, When Shall Be
ations Defined; Manner of Deemed Incorporated; Pow-
Conducting. ers of.
Associations Heretofore, Exist- 11. Soliciting Agents Prohibited,
ing Must Comply With This Except When.
Ct. 12. Member Cannot Contract With
8. Associations Organized in Beneficiary, When.
Other States Must Comply 13. Benefits Exempt From Legal
With Provisions of This Act; Process.
Superintendent of Insurance, 14. Fºilº Associations Admit-
Duties of. ted, When; Mortality Table.
4. Annual Report to Superin- 15. Legislative Body of Associa-
tendent of Insurance; License tion, May Meet Where; Pro-
Issued, When, Fees for; Re- cedure; Fraudulent Applica-
port, Publication of; Superin- tion for Membership, Misde—
tendent of Insurance May meanor; Penalty.
Make Inquiries. 16. Fraudulent Statement, Death
5. Foreign Associations to Ap- or Disability Certificate; Per-
point Superintendent of In- Jury: ..
surance, on Whom Process to 17. Association Refusing to Make
to Be Served; Resident As— Report, Duty of Superin-
sociations, Process, How tendent of Insurance; Officer
Served. disobeying Injunction, Mis-
6. Permit, When and How Issued. demeanor; Penalty., .
7. Examination by Superintend- 18. Agent Violatin This Act,
º ent of Insurance, When isdemeanor; Penalty,
Made. 19. Enforcing Obligations Im-
Organization of Association. posed by Other States.
ow Made. 20. This Act to Apply Only to Fra-
Present Associations May Re- ternal Beneficiary Associ-
incorporate Under This Act. ations.
AN ACT for the Regulation and Incorporation of Fraternal Beneficiary As-
sociations, Societies or Orders, and Repealing All Acts and Parts of Acts
in Conflict There with.
Be it Enacted by the Legislative Assembly of the Territory
of Oklahoma:
tº Ç ſe ic, Fraternal
SECTION 1. A fraternal beneficiary association is #jāºry
Associations
hereby declared to be a corporation, Society or Volun- fº
tary association, formed or organized and carried on *s.
for the sole benefit of its members and their benefi-
ciaries, and not for profit. Each association shall
have a lodge system, with ritualistic form of Work
and representative form of government, and shall
make provision for the payment of benefits in case
of death, and may make provision for the payment of
benefits in case of sickness, temporary or permanent
120 INSURANCE). * [Ch. 16
Sphysical disability, either as a result of disease, ac-
cident or old age, provided the period of life at which
the payment of physical disability benefits on ac-
count of old age commenced shall not be under
seventy (70) years. All subject to the compliance of
its members with its constitution and by-laws. The
fund from which the expenses of such an association
shall be defrayed, shall be derived from assessments
or dues collected from its members. Payment of
death benefits shall be to the families, heirs, blood
relatives, affianced husband or affianced wife of, or
to persons dependent upon the member. Such as-
sociations shall be governed by this Act and shall be
exempt from the provisions of the insurance laws
of this Territory, except as provided in this Act, and
no law hereafter passed shall apply to them unless
they be expressly designated therein. Any such fra-
ternal beneficiary association may create, maintain,
djsburse and apply a reserve or emergency fund in ac.
cordance with its constitution or by-laws. The terrºn
“fraternal beneficiary association” wherever used in
this Act, or in any other law of this Territory here-
after enacted, shall be construed to mean any associa-
tion such as is defined in this section.
Associºlons SECTION 2. All such associations coming within
Heretofore
#. § the description as set forth in Section One (1) of this
Comply With
*** Act, organized under the laws of this Territory, or
the laws of any other State, Province or Territory,
and now doing business within this Territory, may
continue such business provided they hereafter com-
ply with the provisions of this Act regulating annual
reports to the Superintendent of Insurance and the
designation of the Superintendent of Insurance as
the person upon whom process may be served as here-
inafter provided.
Aºns SECTION 3. Any such fraternal beneficiary associa-
Organized
Šiºus tion, within the meaning and description as set forth
Ch. 16] insurancE. .* 121
in Section One (1) of this Act, organized under the ɺ
~e? © gº T S ct;
laws of any other State, Territory or Province, and jina.
©10t O
not now doing business within this Territory when Hºe.
it shall be shown to the satisfaction of the Superin-
tendent of Insurance of this Territory that its charter
or articles of association, and its by-laws provide for
the conduct of its business in accordance with the pro-
* visions of this Act; that it has at the time it applies
for admission to do business within this Territory
a sufficient number of members so that One assess- **,
ment upon such members, the amount of which as-
- sessment or other stated paymentshall not exceed the
amount previously provided by the laws of the order,
shall be sufficient to pay in full the largest death
loss the association might be called upon, under its
laws, to pay, and that it has paid in full all just bene-
fit claims of whatever nature incurred by it within
the two years last past. Provided, That before any
such fraternal beneficiary association shall be au-
thorized to do business in this Territory it shall file
with the Superintendent of Insurance thereof a duly
certified copy of its constitution or by-laws, or both,
if it has both, certified to under oath by its secretary
or similar officer and its chief executive officer, to-
gether with the appointment of the Superintendent
of Insurance of this Territory as a person upon whom
all legal process may be served as hereinafter pro-
Vided; and it must also be shown that the said asso-
ciation is duly authorized to do business in the State,
Territory or Province in which it is incorporated or
organized, in case the laws of such State, Territory or
Province provide for such authorization; but in case
the laws of such State, Territory or Province do not
provide for any such formal authorization for such
association to do business, then such association shall
be shown to be conducting its business in accordance
with the provisions of this Act; and to satisfy himself
*.
122
INSURANCE). [Ch. 16
Annual Re-
port to Su-
perintendent
of Insurance;
License I s-
sued, When,
Fees for:
Report, Publi-
cation of; Su-
perintendent
of Insurance
May Make
Inquiries.
that such is the fact, the Superintendent of Insurance
of this Territory may personally, or by some person
designated by him, examine into the condition, af-
fairs, character and business methods, accounts,
books and investments of such association at its home
office, which examination shall be at the expense of
such association; but such expense shall not exceed
ten dollars ($10.00) per diem in addition to the reason-
able traveling expenses of the person making such ex-
amination; Provided, That the Superintendent of In-
surance may accept the examination made by the in-
surance department of the State, Territory, or Prov-
ince in which the home office of said association is
located, in his sound discretion. Every condition of
this section shall be considered a condition precedent
for such an association doing business in this Terri-
tory.
SECTION 4. Every such association doing business
within this Territory shall, on or before the first day
of February of each year, make and file with the Sup-
erintendent of Insurance of this Territory a report
and statement of its affairs, business and operations,
during the year ending on the 31st day of December
immediately preceding, together with a certified copy
of its laws, rules and regulations; Provided, That no
such association organized under the laws of this Ter-
ritory prior to the passage of this Act shall be required
to make such report until it is two years old. If such
association is found, upon examination of its report
and laws, to be doing business in accordance with the
provisions of this Act, the Superintendent of Insur.
ance shall issue it a license to do business within
this Territory for one year, for which license he shall
charge and receive the sum of five dollars ($5.00).
Such annual reports, which shall be in lieu of all
other reports required by the Superintendent of In-
surance, shall be made on blank forms furnished by
CH. 16] ex INSURANCE.
said Superintendent of Insurance, or may be in pam-
phlet form, and shall be verified under oath by the
duly authorized officers of such association. The
substance of this report shall be published in the an-
nual report of the Territorial Superintendent of In-
surance, in a part to be entitled “Fraternal Bene-
ficiary Associations,” and shall contain answers to
the following questions, and any other information
the Superintendent of Insurance may require:
First: Number of certificates issued during the
year or number of members admitted.
Second: Amount of indemnity effected thereby.
Third: Number of losses or benefit liabilities in-
curred. *
Fourth: Number of losses or benefit liabilities
paid.
Fifth: The amount received from each assessment
during the year.
Sixth: Total amount paid members, beneficiaries,
legal representatives or heirs.
Seventh: Number and kind of claims for which
assessments have been made. * *
from such county and re-attachment to another
the taxes were levied the same as if the detachment
Eighth: Number and kind of claims compromised
or resisted, and a brief statement of reasons there.
for.
Ninth: Does the association charge annual or
Other periodical dues or admission fees?
Tenth: How much on each One Thousand Dollars
annually or per capita, as the case may be?
Eleventh: Total amount received, from what
Source, and the disposition thereof.
Twelfth: Total amount of salaries paid to officers.
Thirteenth: Does the association guarantee, in its
certificates, fixed amounts to be paid, regardless of
the amounts realized from assessments, dues, admis-
sion fees and donations?
123
124 --- INSURANCE. *& [ CH. 16
*~.
Fourteenth: If so, state amount guaranteed, and
the security for such guaranty.
Fifteenth: Has the association a reserve fund?
Sixteenth: If so, how is it created, what is its pur-
pose, its amount, and how is it invested?
Seventeenth: Has the association more than one
class?
Eighteenth: If so, how many and the alli, unt of
the indemnity in each?
Nineteenth: Number of members in each class?
Twentieth: If it is a voluntary association, so
state and give date of its organization.
Twenty-first: If organized under the laws of this
Territory under what law and at what time, giving
year and date of the approval of the Act.
Twenty-second: If organized under the laws of
any other State, Territory or Province, state such
fact and the date of organization, with cºmplete
reference and designation of the law or laws under
which organized.
Twenty-third: Number of certificates C f bene-
ficiary membership lapsed during the year.
Twenty-fourth: Number in force at the beginning
and end of the year; if more than one class, the num-
ber in each class.
Twenty-fifth: Names and address of its president,
secretary and treasurer, or of its corresponding of-
ficers.
The Superintendent of Insurance is authorized and
empowered to address any additional inquiries toº
any such association in relation to its business or
condition, or any other matter c innected with its
transactions relative to the business contemplated by
this Act, and such officers of Suen associations as
the Superintendent of Insurance unay require shall
promptly reply in writing, unler oath, to all such
inquiries.
- Ch. 16] Insurance. 125
*
*~,
º e © º F i gº.
SECTION 5. Every such association now doing or ºne
º e e © © t A t
hereafter admitted to do business within this Ter- ;:
€nt O InSUlf-
ritory, and not having its principal office within this ºn
Territory, and not being organized under the laws of §:**
this Territory, shall appoint in writing the superin-jºº.
tendent of Insurance and his successors in office to Served.
be its true and lawful attorney, upon whom all legal
process in any action or proceeding against it must
be served, and in such writing shall agree that any
lawful process against it which is served on said Sup-
erintendent of Insurance shall be of the same legal
force and validity as if served upon said association,
and that the authority shall remain in force so long
as any liability against said association shall remain
outstanding within this Territory. Copies of such
certificate, certified by said Superintendent of In-
surance, shall be deemed sufficient evidence thereof,
... and shall be admitted in evidence with the same force
and effect as the original thereof might be admitted.
Service upon said Superintendent of Insurance simall
be deemed sufficient service upon such association;
Provided, That such process shall not be returnable
until thirty days after such service. When legal pro-
cess against any such association is served upon the
Superintendent of Insurance, he shall immediately
notify the association of such service by registered
letter, prepaid and directed to its secretary or its cor-
responding officer, and shall within two days after
such service forward in the same manner a copy ºf
the process served upon him to such officer. 'The
plaintiff in the action upon which such process was
issued shall pay to the Superintendent of Insurance
at the time of such service a fee of three dollars
($3.00), which shall be recovered by said plaintiff as a
part of his taxable costs, if he prevail in his said
action. The Superintendent of Insurance shall keep
a record of all processes served upon him, which
126
Insurance. - [Ch. 16
Permit,
When and
How Issued.
Examination
by Superin-
tendent of
* Insurance,
When Made.
record shall show the day and hour when such service
was made, and when the notice hereinbefore provided
for was given to the officers of such association. In
all suits in this Territory against any such associa-
tion organized under the laws of this Territory, and
having its principal officer in this Territory, ſervice
shall be had upon the chief executive officer or the
secretary, or corresponding officer of such associa-
tion.
SECTION 6. The Superintendent of Insurance, upon
“the application of any fraternal beneficiary associa-
tion having the right to do business in this Territory,
as provided for in this Act, shall issue,to such assoeia-
tion a permit in writing authorizing such association
to do business within this Territory for one year from
the date thereof, for which permit or certificate and
all proceedings in connection therewith such associa-
tion shall pay to the said Superintendent of Insurance"
a fee of five dollars ($5.00).
SECTION 7. The Superintendent of Insurance, at
the request of any such fraternal beneficiary associa-
tion doing business under the provisions of this Act
in this Territory, shall make an examination of the
books and accounts of such association, and shall
furnish a certificate of the results of such examina-
tion, showing all such association’s assets and how
invested, the condition of its business, its methods
and such other particulars as may be deemed neces-
sary to show the character and condition of the finan-
cial affairs of such association; and such association
shall at all times be subject to such examination
without any request being made by them. 'The neces-
sary expense of the examination shall be paid by said
association, but it shall not exceed ten dollars ($10.00)
per day and the necessary traveling expenses of the
person making the examination.
Ch. 16] INSURANch. * - 127
SECTION 8. Any number of persons, being citizens ºftº
of the United States, not less than seven, five of whom ****
shall also be citizens and residents of the Territory of
Oklahoma, hereafter desiring to form a fraternal
beneficiary association, may associate themselves to.
gether and effect such organization in the manner
provided in this section, and not otherwise. Articles
of association shall be prepared in triplicate in the
manner hereinafter provided, and submitted to the
Superintendent of Insurance for his approval; and
they shall not be approved by said Superintendent of
Insurance if it shall appear that the name selected
is the same or so near the same as that of any other
association or corporation then doing business within
this Territory as to cause confusion in the minds of
the people, or to interfere with the rights of such ex-
isting association or corporation, or that the objects
of the association are not in accordance with the pro-
visions of this Act, or of any other law or laws of
this Territory applicable to such associations or that
the said articles of association do not conform to the
provisions of this Act in every particular; but in case
none of these objections are found to exist, the said
Superintendent of Insurance shall indorse on the
back of each copy of said articles of association the
fact that he has approved them, together with the
date of such action, all of which shall be signed by
him with his official title; Provided, however, That
before the said Superintendent shall approve any
such articles of association it shall be shown to him
by the sworn statement of one or more of the pro-
posed incorporators that at least three hundred per-
sons have signed, in good faith, applications for bene-
ficiary membership in such proposed association, and
paid to the proper one of such proposed incorporators
the amount of one death or mortuary collection, by
whatever name it may be called, and that such money
123
INSURANCE). [Ch. 16
is deposited with some bank or trust company, and is
held for the special purpose named. For this exam-
ination and approval of the articles of association
herein mentioned, the Superintendent of Insurance
shall charge and receive a fee of five dollars ($5.00).
One copy of such articles of association, approved as
hereinbefore provided, shall be filed with the Sec-
retary of this Territory, whereupon the said Secretary
shall issue his certificate of incorporation, and perma-
nently attach the same by the seal of the Territory to
another copy of the said articles of association, ap
proved as hereinbefore provided, which copy shall be
delivered to the incorporators of such association.
The third approved copy of such articles of incorpora-
tion shall be filed with the Superintendent ºf Insur-
ance. The articles of association hereinbefore 1men-
tioned shall be substantially in the following form:
First: The preamble shall name the incorporators
and give the residence of each and the fact of their
citizenship as herein required, and express their de-
sire to incorporate a fraternal beneficiary association
in accordance with and under the provisions of this
* Act, (designating this Act so as to positively identify
it.)
Second: Article I shall give the name of the aSSO-
ciation.
Third: Article II shall state the location of the
principal office of the association.
Fourth: Article III shall state the objects of the
association and the plans by which these Objects are
to be carried out, including the extreme limit of age
of persons to whom benefit certificates may be issued,
which limit of age shall not exceed fifty-five (55)
years, and it shall also state the fact that all bene-
ficiary members will be required to pass a medical
examination such as is usually required by fraternal
beneficiary associations.
CH. 16] - INSURANCE).
Fifth: Article IV shall state the names of the per-
sons selected to manage the business or prudential
affairs of the association for the first term, for which
such persons are to be elected, and the manner of
electing their successors, the title of all officers and
the name of such officers, with their residences, if
they have been selected.
Sixth: Article V shall contain a description of
the corporate seal adopted by such association, to-
gether with an impress of the same. These articles
of association shall be signed and acknowledged by
each of the incorporators.
129
Present Asso-
SECTION 9. Any such fraternal beneficiary associa-j č.
tion that is now doing business in this Territory as a
corporation de jure or a corporation de facto, by
virtue of any law of this Territory authorizing the in-
corporation of such associations, may re-incorporate
under the provisions of this Act and receive from the
Secretary of the Territory a certificate of re-incor-
poration. Any such association desiring to re-incor-
porate under this Act, shall, by its supreme govern-
ing body or committee having power to change its
laws, adopt a resolution embodying new articles Cf
association prepared to conform to Section Eight (8)
of this Act, which resolution must be copied in tripli-
cate, signed by the executive officer of the body
adopting it, or by the chief executive officer of the as-
sociation; and its correctness and the fact that it was
adopted in accordance with the provisions of this
section must be certified to under oath by the secre-
tary or similar officer of such association. The afore-
said triplicate copies of such resolution shall then be
submitted to the Superintendent of Insurance for his
approval, the same as if they were original articles of
association, as provided in Section Eight (8) of this
Act, and one copy shall be filed with said Superinten-
dent of Insurance and one copy with the Secretary of
S. L —- )
re- º COrpOrate
180
INSURANCE. [Ch. 16
Associations,
When Shall
Be Deemed
Incorporated;
Powers of.
Soliciting
Agents Pro-
hibited. Ex-
cept When.
Member Can-
not Contract
With Bene-
ficiary, en.
the Territory in the manner provided in Section
Eight (8) of this Act, for the incorporation of new
associations; and when this is done, the Secretary
shall issue, in the manner provided in Section Eight
(8) of this Act, his certificate of re-incorporation: and
thereafter such association shall be deemed to be re-
incorporated under the provisions of this Act.
SECTION 10. Every such fraternal beneficiary as-
sociation, from the time it files a copy of its articles
of association for record in the office of the Superin-
tendent of Insurance and files a copy of said articles
of association with the Secretary of the Territory,
and receives its certificate of incorporation, as pro-
vided either in Section Eight (8) or in Section Nine (9)
of this Act shall be deemed and held to be a corpora-
tion or body politic in perpetuity and shall have and
possess all rights, powers and privileges given to
corporations by common law; it may sue and be sled
in any court of competent jurisdiction; it may borrow
money and secure the payment of the same by notes
and mortgages, bonds or deeds of trust upon its per-
sonal or real property; it may rent, lease, purch'use,
hold, sell, and convey such real estate and personal
property as may be necessary and proper for the pur-
pose of erecting buildings for the use of the associa-
tion, and for other proper objects of such association,
or which may be taken for debts due to the associa-
tion; and it may in general do all things not prohib.
ifed by law that are necessary and proper for the
economical and proper conduct of its business.
SECTION 11. Such association shall not employ
paid agents in soliciting or procuring members, ex-
cept in the organization or building up of subordinate
bodies or granting members inducements to procure
new members.
SECTION 12. No contract between a member and
his beneficiary that the beneficiary or other person
CH. 16] INSURANCE). 131
for him shall pay such member's assessments and
dues or either of them, shall give the beneficiary or
other person a vested right in the benefit certificate
or in the benefit or deprive the member of the right
to change the name of the beneficiary or revoke the
certificate, if any, issued by such association; Provided,
That such change or revocation shall be made by
written or printed notice to the association in the
manner and form provided for by its by-laws.
SECTION 13. The money or other benefit, charity, re- Benefits Ex-
lief or aid to be paid, provided or rendered by any as fºr
sociation authorized to do business under this Act,
shall not be liable to attachment, by trustee, garnishee
or other process, and shall not be seized, taken, appro-
priated or applied by any legal or equitable process,
or by operation of law, to pay any debt or liability of
the certificate holder, or of any beneficiary named ill
any certificate, or any person who may have any
right thereunder.
SECTION 14. No association not admitted to trans- sº A so-
act business within this Territory prior to the passage º
of this Act shall be incorporated or given a permit or Table.
certificate of authority to transact business within
this Territory, as provided for by this Act, unless it
shall first show that the mortuary assessment rates,
provided for in whatever plan of business it has
adopted, are not lower than is indicated as necessary
by the following mortality table:
FRATERNAL CONGRESS MORTALITY TABILjº.
Probability
Age No. Living. No. Dying. of Dying.
20 100,000 500 .005000
21 99,500 501 .005035
22 98,999 502 .005071
23 98,497 503 .00510'(
24 97,994 505 . 00:5153
25 97,489 507 .005201
132
[Ch. 16
INSURANCE).
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
96,982 510
96,472 513
95,959 517
95,442 522
94,920 527
94,393 533
93,860 540
93,320 548
92,772 557
92,215 567
91,648 578
91,070 591
90,479 606
89,873 622
89,251 640
88,611 660
87,951 683
87,268 708
86,560 734
85,826 761
85,065 790
84,275 822
83,453 857
82,596 894
81,702 935
80,767 980
79,786 1,029
78,757 1,083
77,674 1,140
76,534 1,202
75,332 1,270
74,062 1,342
72,720 1,418
71,302 1,501
69,801 1,588
68,213 1,681
66,532 1,778
.0052.59
.00531S
. 00:53SS
.005469
. 00:5647
. ()05647
. 00:57.53
.005872
.006004
.006149
.006307
,0064.90
.006698
. 0.06921
. 007171
.007 448
, 0.07766
.008113
. 0084.80
. 0.08867
.009287
.0097.54
.010269
. 0108.238
.0114440
. 0121337
.0128970
. O1375.11
. 0146767
. 01:57.054
.0168587
. 0181200
. 0194994
. ().2105.13
.02.27504
.0246434
.0267240
Ch. 16]
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
64,754
62,874
60,889
58,795
56,589
54,271
51,841
49,302
46,657
43,913
41,081
38,172
35,203
32,194
29,168
26,152
23,175
20,270
17,471
14,812
12,327
10,047
7,997
6,197
4,658
3,381
2,358
1,570
991
587
323
162
73
29
10
33
INSURANCE.
1,880
1,985
2,094
2,206
2,318
2,430
2,539
2,645
2,744
2,832
2,909
2,969
3,009
3,026
3,016
2,977
2,905
2,799
2,659
2,485
2,280
2,050
1,800
1,539
1,277
1,023
788
579
404
264
161
89
44
19
7
3
. 0290330
.0315711
.0343904
.0375206
.0409620
.0447753
.04897.67
.0536489
.0588122
.0644912
. 0708113
.0777795
.0854,757
.0939927
... 1034010
. 1138345
. 1253506
. 1385163
. 1521951
. 1677694
. 18495.99
. 1855707
.2250844
. 24.83460
. 2741520
.3025732
.3341815
. 3687898
. 4076690
.4497445
.4984520
. 54.93827
. 6027397
.6551724
. 7000000
... 10000000
183
134
INSURANCE. [Ch. 16
Hººve
Body of
Association
May Meet,
Where;
Procedure.
Fraudulent
Application
for Member-
ship, Misde-
mean Or;
Penalty.
Fraudulent
Statement;
Death or
Disability
Certificate;
Perjury.
SECTION 15. Any such fraternal beneficiary asocia-
tion organized under the laws of this Territory may
provide for the meeting of its legislative or governing
body in any other State, Territory or Province,
wherein such association shall have subordinate
lodges or bodies, and all business or corporate acts
transacted at such meetings shall be valid in all re.
spects as if such meetings were held in this Territory;
and where the laws of any such association provide
for the election of its officers by votes cast in its
subordinate bodies, the votes so cast by its subordin-
ate bodies in any other State, Territory or Province
shall be as valid as if cast in this Territory.
SECTION 16. Any person, officer, member or exam-
ining physician who shall knowingly or Wilfully
make any false or fraudulent statement or represen-
tation in or with reference to any application for
membership or for the purpose of obtaining any
money or benefit in any association transacting busi-
ness under this Act, shall be guilty of a misdemeanor,
and upon conviction shall be punished by a fine of
not less than One Hundred Dollars ($100.00), nor
more than Five Hundred Dollars ($500.00), or im-
prisonment in the county jail for not less than thirty
days nor more than one year, or both such fine and
imprisonment in the discretion of the court; and any
person who shall wilfully make any false statement
of any material fact or thing in a sworn statement as
to the death or disability of a certificate holder or
member in any association for the purpose of procur-
ing payment of a benefit named in the certificate of
such holder, and any person who shall wilfully make
any false statement in any verified report or declara-
tion under oath, required or authorized by this Act,
shall be guilty of perjury, and shall be proceeded
against and punished as provided by the Statutes of
this Territory in relation to the crime of perjury.
CH. 16] INSURANCE). 135
SECTION 17. Any such association, whether organ-flºº
ized under the laws of this Territory or of any other #####"
gº c gº © perintendent
State, Territory or Province, refusing or neglecting ºf º:
cer Dis—
to make the report as provided in this Act shall be ºf
In Junction,
excluded from doing business within this Territory. *::::::::: *
The Superintendent of Insurance, within sixty days
after any such association’s failure to make such re-
port, or in case any such association shall exceed its
powers, or shall conduct its business fraudulently, or
shall fail to comply with any of the provisions of this
Aét, must give notice in writing to the Attorney Gen-
eral, who shall immediately commence an action
against any such association to enjoin it from carry-
ing on any business within this Territory. No in-
junction against any such association shall be
granted by any court to enjoin it from transacting
business in this Territory, except on application of
the Attorney General thereof, at the request of the
Superintendent of Insurance, whether the Territory
or a member of other party seeks relief. No associa-
tion so enjoined shall have power or authority to Con-
tinue in business until such report shall be made, Or
overt acts or violation of the law complained of shall
be corrected, nor until the costs of such action be paid
by it, provided the court shall find that such associa-
tion was in default as charged; whereupon the Super-
intendent of Insurance shall re-instate such associa-
tion, and not until that is done by him shall such as-
sociation be again allowed to do business within this
Territory. Any officer, agent or person acting for
such association, or subordinate body thereof, within
this Territory, while such association shall be so en-
joined or prohibited from doing business pursuant to
this Act, shall be deemed guilty of a misdemeanor,
and, on conviction thereof, shall be punished by a fine
of not less than twenty-five dollars ($25.00), nor more
than Two Hundred Dollars ($200.00), or by imprison.
186 - INSURANCE). [Ch. 16
ment in the county jail for not less than thirty days,
nor more than one year, or by both such fine and im-
prisonment in the discretion of the court.
§§§ SECTION 18. Any person who shall act within this
Act, Misde- º o
#. Territory as an officer, agent, or otherwise, for any
association, which shall have failed, neglected, or re-
fused to comply with or shall have violated any of
the provisions of this Act, or shall have failed or
neglected to procure from the Superintendent of In-
surance a proper certificate of authority to transact
business within this Territory, as provided for by
this Act, shall be subject to the penalties provided
in the last preceding section for the misdemeanor
therein defined and specified.
§s SECTION 19. When any other State, Territory, or
&#sº. Province shall impose any obligation upon any fra-
* ternal beneficiary association organized under the
laws of this Territory, or upon its agents or repre-
séantatives, or other persons transacting business for
it in such other State, Territory or Province, the like
obligations are hereby imposed on similar fraternal
beneficiary associations organized under the laws of
such other State, Territory or Province, and their
agents or representatives doing business in this Ter-
ritory.
####, to SECTION 20. This Act shall not apply to any cor-
F ſº & © e * © e
####y poration, society or association carrying on the busi-
“ness of life, health, casualty or accident insurance for
profit or gain, but it shall apply only to fraternal ben-
eficiary associations as defined in Section One (1) of
this Act. This Act shall not affect or apply to any
grand or subordinate lodge of the Ancient Order of
Free and Accepted Masons, Independent Order of
Odd Fellows, Improved Order of Red Men, or
Knights of Pythias as they now exist, nor to similar
Orders or secret Societies, nor to any association not
Working on the lodge system, or which limits its cer-
$.
Ch. 16] INSURANCE).
tificate holders to a particular class, or to the em-
ployees of a particular town, or city, designated firm,
business house or corporation.
SECTION 21. All Acts and parts of Acts in conflict
with the provisions of this Act are hereby repealed.
SECTION 22. This Act shall take effect and be in
force from and after its passage, approval and publi-
cation in the Session Laws.
Approved this 8th day of March, 1901.
ARTICLE 2—RELATING To MUTUAL INSURANCE COM-
PANIES.
SECTION.- SECTION.
1. Charter, How Procured. 5. Premiums, How Applied. .
2, Kind of Property Insured. 6. Change of Location of Principal
8. Amount of Policy. ice.
4. Premiums, How Collected. 7. Foreign Mutual Insurance Com-
panies, When Admitted.
AN ACT Relating to Mutual Insurance Companies Organized under Article
l, of Chapter 17, of the Session Laws of the Territory of Oklahoma of
1899, and to Amend Sections 1, 5, 6, 7, 8 of Said Act, and for Other
Purposes.
Be it Enacted by the Legislative Assembly of the Territory
of Oklahoma:
SECTION 1. That Section 1, of Article 1, of Chapter
17, of the Session Laws of Oklahoma, Territory, of
1899, be amended to read as follows:
SECTION 1. That associations of not less than one
thousand persons, farmers by occupation, may be
formed for the purpose of mutual insurance of grow-
ing crops of grain against loss by hail, and of live'
stock, farm buildings and contents, against fire, light-
ning, or wind storms, under the following regula-
tions, to-wit: There shall be a charter filed with the
Secretary of the Territory showing the name of the
association, the number of directors, the names of a
president, secretary and treasurer and not less than
five (5) nor more than thirteen (13) directors, who
187
Charter, How
138
INSURANCE. --~~~ [Ch. 16
Kind of Prop-
erty insured.
Amount of
Policy.
shall hold office for such term as the by-laws of the
association shall provide, but not for a less period
than one year, except in case of removal for cause,
and except that the first officers so named shall hold
until the first election of said association, which may
be held at such time as the by-laws provide.
SECTION 2. That Section 5, of Article 1, of Chapter
17, of the Session Laws of Oklahoma Territory, of
1899, be amended to read as follows:
SECTION 5. Such association may insure growing
Wheat, rye, barley, oats and other crops against
losses by hail, and may also insure live stock, farm
buildings and contents, and other property located
On farms, against loss or damage by fire, lightning,
Or wind storms of any character, upon the payment
of the premium in cash, or as hereinafter provided.
The policy shall state the name of the owner and de-
scribe the land upon which the crop, stock, build-
ings, or other property are located, describing the
property insured and stating the amount insured per
acre, or on each building or animal as the case may
be.
SECTION 3. That Section 6, of Article 1, of Chapter
17, of the Session Laws of Oklahoma Territory, of
1899, be amended to read as follows:
SECTION 6. No policy shall be for a larger amount
upon buildings than Fifteen Hundred ($1,500) Dol-
lars, nor for a larger amount per acre than twenty
(20) bushels of wheat, fifteen (15) bushels of rye or
barley, twenty-five (25) bushels of oats, or eight (8)
bushels of flax, nor exceeding twenty-five dollars ($25)
per head for cattle, nor fifty dollars ($50) per head for
horses or mules; Provided, That no buildings nor the
contents thereof, shall be insured against fire or
lightning for a larger amount than three-fourths of
its actual cash value. No property shall be insured
except that which is located upon farms.
CH. 16] INSURANCE. 139
SECTION 4. That Section 7, of Article 1, of Chapter jº.
17, of the Session Laws of Oklahoma Territory, of lected.
1899, be amended to read as follows:
SECTION 7. That the association may, at its option,
under the provisions of its by-laws, receive in cash or
well secured promissory demand note not less than
one-half of the premium upon stock, buildings and
contents, or not less than one-fourth of the premium
on growing crops, and the remainder secured by a
Ilote, payable in whole or in part upon assessment
or assessments made by the board of directors of the
association in accordance with its by-laws whenever
they consider the same necessary to pay the losses
and expenses arising during the continuance of the
policy for which said note was given, said note being
secured by property or otherwise, to the satisfaction
of the association. t
SECTION 5. That Section 8, of Article 1, of Chapter ɺled
17, of the Session Laws of Oklahoma Territory, of
1899, be amended to read as follows:
SECTION 8. The premiums upon growing crops
shall be applied to loss or damage on growing crops
and the premiums upon live stock, farm buildings,
and other property insured against fire, lightning or
wind storms, shall be applied to losses upon such
property. The expenses of the association shall be
borne ratably by all the insurance carried by the as-
sociation.
SECTION 6. The board of directors of a mutual in-ghange of
surance company incorporated under the laws of this ; of
Territory may change the location of the principal"
office of said company only by a vote of two-thirds of
said directors.
SECTION 7. That no mutual insurance company or- Foreign
Mutual Insur-
ganized or incorporated outside of the Territory shall A. $ºn
be permitted to engage in the business of hail insur Kied"
ance or the insurance of farm property against fire,
:40
INSURANCE). º * [Ch. 16
lightning or wind storms, until after the same has
made a satisfactory showing to the Commissioner of
Insurance that it has not less than One ‘Hundred
Thousand Dollars in reserve, subject to payment of
losses.
SECTION 8. All Acts and parts of Acts in conflict
herewith are hereby repealed.
SECTION 9. This Act shall take effect and be in
force from and after its passage and approval.
Approved this 8th day of March, 1901.
UNIVERSITY OF MICHIGAN
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