INSURANCE LAWS OF WISCONSIN IN EFFECT JULY L 1909 COMPILED BY HERMAJSr L. EKEIil^ FOE GEORGE E. BEEI>LE, Commissioner of Insurance PUBLISHED BY AUTHORITY OP LAW JAl^ES A. FREAR Secretary of State MADISON, WIS. Democrat Printing Company, Stati Pmntir. 1909. •T^'t^-tx? /L/txx>-; INSURANCE LAWS OF WISCONSIN IN EFFECT JULY 1, 1909 COMPILED BY HERMAN L. EKERN FOR GEORGE E. BEEDLE, Coniniissioner of Insurance PUBLISHED BY AUTHORITY OF LAW JAMES A. FREAR Secretary of State MADISON, WIS. Democrat Printing Company, State Printer. 1909. 9^ TABLE OF CONTENTS. Department of insurance, 94k-94m, 128, 170, 961. Taxation, exemptions, 1038. Future estates, valuation, 1087—13 (2); 1087 — 15 (2). License fees, 1219-1222. Retaliatory laws, 1221. Proxies, 1760m. Corporations, articles, amendments, 1772-1774. Domestic companies, stock and mutual, 1896-1908a. Guaranty surplus and special reserve funds, 1909-1914. Reinsurance companies, 1914a. Fire companies, foreign, 1915-1919c. Reinsurance, 1919d-1919g. Unauthorized companies. 1919f. Fire company reports, 1920, 1921. Payment of judgment, 1919e. Boards of fire under-writers and fire patrol, 1922-1925. Fire department duties, 1926. Town mutuals, 1927-1941. City and village mutuals, 1941—2 to 1941—12. Standard fire policy, 1941—42 to 1941—65. Fire insurance, general provisions, 1942-1946. Policies to indicate whether mutual or stock, 1942. Surplus, limitation, fire companies, 1942 — 1. Realty insurance, valued policy, 1943. Cash value, co-insurance, 1943a. Rates, combination to fix, 1943b. Premium notes, 1944, 1945. Application, attach to policy, 1945a. Foreign companies, limitation of assessment, 1945b. Fire companies, domestic, cyclone risk, l&45c. Magistrate's certificate, 1945d. Resident agents, 1945e. Directors, 1945f. Lloyds' insurance, resident agent, 1945g. Fire companies, mutual, directors, liabilities, 1945h. Fire companies, foreign, assessments, notice, 19451. Milwaukee agents, 1946. Misrepresentation, 1946a-1946f. Cancellation, short rate, 1946d. State fire marshal, 1946g-1946q. Life companies, definitions, 1946x. Life companies, domestic, 1947-1947a. Life companies, domestic mutuals, 1947c-1947k. Policies, participating and non-participating, 1947o. Surplus, rights of stockholders and policyholders, 1947p. Life companies, domestic, salaries, 1947r. 68S19? TABLE OP CONTENTS. License, 1947 (5), 1948, 1949. Valuation of policies, 1950 Premium, expense charge and limitation, 1950m. Expenses, report, limitation, 1950n-1950t. Life companies, domestic, investments, 1951. Dividends, 1952-19521. Life companies, foreign, admission, 1953. * Application, copy, 1953b. Disbursements, political, legislative, 1953d, 1953e. Report, annual, gain and loss exhibit, 1953n, 1954, 1955. Mutual benefit societies, 1955a-1955n. Discrimination, 1955o. General penalty provision, 1955o — 5. Agent, corporation not licensed, 1955x — 1. Assessment life companies, 1955y — 1 to 1955y — 2. Reinsurance, domestic life and casualty companies, 1955 — 21, 1955 — 26. Hail companies, foreign, 1966 — 1. Casualty companies, foreign, 1966 — 32 to 1966 — 49a. Department of insurance, 1967-1 972c Deposit with state treasurer, 1973. Judgment, non-payment, 1974. Removal of causes, conditions in contracts, 1975. Agents, 1976, 1977. Insurers to comply with law, 1978. State insurance fund, 1978a-1978e. Lloyds' marine insurance, 1978f-1978m. Insurance by married women, 2347, 2347b. Defendant insurance companies, joinder, 2609a. Process, service on insurance corporations, 2637 (9) (10) (11). Exemption of insurance moneys, 2982 (19). Injunction, 3218, 3219. Forfeiture, 3299, 3300. Future estates, 3871a. Evidence, documentary, 4182, 4182a. Warranties in insurance, 4202m. Arson, 4405. Fraud on life companies, absconding, 4438e. State officers and employees, 4549, 4549m. Mutual benefit society, penalties, 4575c-4575e. Insurance Laws of Wisconsin. The Sect'ons are taken from the Statutes of 1898 unless otherwise noted. DEPARTMENT OF INSURANCE. 128 Commissioner of Insurance; election; term. Section 128. The governor, lieutenant-governor, secretary of state, treasurer, attorney-general, * * * and commis- sioner of insurance shall be chosen at the general election in the year 1898 and biennially thereafter; and the regular term of office of said state officers when elected for a full term shall commence on the first Monday in January next succeed- ing their election. * * * " 170 (1898; chs. 643 and 676, 1907.) Officers; employes; compensation. 14. Department of Insurance. a. The commissioner of insurance, five thousand dollars. b. The deputy commissioner of insurance, eighteen hundred dollars. c. The clerks and other employes in the office of the com- missioner of insurance the sums following: The chief clerk fourteen hundred dollars; the license clerk, twelve hundred dollars; the examiner, fourteen hundred dollars; two clerks, twelve hundred dollars each; an expert stenographer, twelve hundred dollars; the filing clerk, who must be a typewriter operator, twelve hundred dollars. 1038 TAXES AND FEES. 6 d. The insurance actuary, not to exceed twenty-four hun- dred dollars; the assistant actuary, not to exceed fifteen hun- dred dollars. Sections 94k to 94m relating to vacancies in state oflSices are omitted, also section 961 relating to resignations. 1038 Personal property of insurance companies exempt. Section 1038. The property in this section described is exempt from taxation, to- wit: * * * 13. All the personal property of all insurance companies that now are or shall })e, organized or doing business in this state. 10^7^13 (Sec.-l'8;chV44, 1903.) Fuiture estates; valuation. Section 1087 — 13 (2). Whenever a transfer of property is made upon which there is, or in contingency there may have been, a tax imposed, such property shall be appraised at its clear market value immediately upon such transfer or as soon thereafter as practicable. The value of every future or limited estate, income, interest or annuity dependent upon any life or lives in b'^ing, shall be determined by the rule, method, standard of mortality and value employed by the commis- sioner of insurance in ascertaining the value of policies of life insurance and annuities for the determination of liabili- ties of life insurance companies except that the rate of inter- est for making such computation shall be five per centum per annum. For the method of valuation see section 3871a. 1087—15 (Subd. 2, sec. 15, ch. 44, 1903.) . Commissioner to value future estates. Section 1087 — 15 (2). The commissioner of insurance shall on application of any county court determine the value of any such future or contingent estates, income or interests therein limited, contingent, dependent or determinable upon the life or lives of the person or persons in being upon the facts con- tained in such appraiser's report or upon the facts contained in the county court's finding and determination and certify the same to the county court and his certificate shall be pre- sumptive evidence that the methods of computation adopted therein is correct. '7 TAXES AND FEES. 1219e 1219 (1898; ch. 325, 1905; ch. 290, 1909, in effect July 1, 1909.) Fire and manne companies; license fees. Section 1219. 1. Every company transacting the business of insurance against fire or by the risk of inland navigation or transportation, * * * shall pay to the state * * *, on or before the thirty-first day of January in each year, a tax of * * * two per centum on the amount of the gross premiums received for direct insurance, less return premiums and cancel- lations on direct insurance, by such company during the pre- ceding year, in this state. =* * * Direct insurance shall in- clude all insurance other than reinsurance. In case any com- pany shall discontinue business in this state and reinsure the whole or a part of its risks without making payment of this tax, the company accepting such reinsurance shall pay the tax; and if several companies shall make such reinsurance the tax shall be apportionea between such companies in proportion to the original premiums upon the business, in this state, so reinsured by each such company, upon the payment of the tax herein proviaed, such company may be licensed to transact its busmess until the last day of January m the ensuing year, unless sooner revoked or forieited according to law. Insurance companies, domestic mutual, license fees, excep- tions. 2. J^xcepi'ing domestic mutual insurance companies included in sections 1^20 or l^kiOa and companies heretofore organized unaer sections 1^96 to 190U, inclusive, no domestic mutual in- surance company siiaU be required to pay any taxes, fees, or cliarges to the state by reason of this or any other section of the statutes now m force or hereafter enacted u7Uess the same shall, by specific reference to this section, expressly iticlude such com- pany. Section 1219 is referred to in 1219m, 1915 (7). 1219e (Ch. 460, 1909, in effect June 19, 1909.) Casualty companies ; license fee. Section 1219e. Every corporation transacting the business of casualty or suretyship insurance shall pay to the state on or before the first day of March in each year, as a license fee for transacting such business, two per centum upon the gross premiums received during the preceding year on all policies or contracts which have been written on the lives of residents or property in this state. Formerly section 1966 — 49. See section 1219. 1219m TAXES AND FEES. 8 1219m (Ch. 259, 1909, in effect June 3, 1909.) Fire companies; license fees, unauthorized insurance; in- sured; report; payment by. Section 1219ni. Any company not authorized to do busines&i in this state, which shall insure any property situated in this state against fire or the risk of inland navigation or trans- portation shall pay to this state a tax upon the gross premiums paid to such company on such insurance computed at the rate per centum prescribed by section 1219, and on default of any such company in the payment of such tax before the first day of March next succeeding, the owner of such property shall pay such tax. Every person paying more than one hundred dollars premiums to any one such company in any year shall report the same in writing by mail to the commissioner of in- surance before the first day of March next succeeding, and if such report be not made and such tax remains unpaid for sixty days after the said first day of March, the tax shall be in- creased by one-tenth for every month during which such tax remains unpaid after the expiration of said sixty days. 1220 (Ch. 326, 1899; ch. 21, 1901; ch. 208, 1903; ch. 455, 1905; ch. 656, 1907.) Life companies; annual license fee. Section 1220. Every company, corporation or association transacting the business of life insurance within this state, ex- cepting only such fraternal societies as have lodge organiza- tions and insure the lives of their own members, and no others shall, on or before the first day of March, in each year, pay into the state treasury as an annual license fee for transacting such business, the amounts following: Domestic companies. (1) If such company, corporation or association is organized under the laws of this state, and is not purely an assessment or stipulated premium plan company ojider chapter 270, laws of 1899 (sec. 1955 — 1), three per centum of its gross income from all sources for the year end- ing December 31st, next prior to said first day of March ex- cepting therefrom income from rents of real estate upon which said company, corporation or association has paid the taxes assessed thereon, and excepting also premiums collected out- side of the state of Wisconsin or on policies held by non-resi- dents of the state of Wisconsin. In ascertaining the income upon which such license fee shall be computed as aforesaid, no deduction shall be made from premiums, whether paid in cash or premium notes, on account of dividends allowed or paid to the insured. 9 TAXES AND PEES. 1220a Foreign companies. (2) If any such company, corporation or association is organized without the state of "Wisconsin, and is not purely an assessment company, it shall pay into the state treasury, as such annual license fee, the sum of three hundred dollars, except that whenever the similar taxes and fees imposed upon a company of another state under section 1221, shall exceed three hundred dollars, the amount of the tmnual license fee shall be deducted. - Section 2. Chapter 455, laws of 1905, is repealed. Section 1220 is referred to in 1219, 1947. See subd. 13, section 1038; also subd. 2, section 1219. 1220a (Part of ch. 326, 1899, and sec. 2, ch. 21, 1901.) License fees of other companies. Section 1220a. Every other such association, corporation or company doing business within this state, whether organized within or without the state, including all assessment companies and associations, and stipulated premium plan companies under chapter 270, laws of 1899 (sec. 1955 — 1), and excepting only such fraternal organizations as are hereinbefore specified, shall, on or before the first day of March, in each year, pay into the state treasury of the state as an annual license fee, the sum of three hundred dollars. Section 1220a is referred to in 1219. 1220b (Part of ch. 326, 1899; and sec. 3, ch. 21, 1901.) Power jranted by license; license fee in lieu of all taxes, except on real estate. Section 1220b. Such license, when granted shall authorize the company, corporation or association to whom it is issued to transact business until the fir.st day of March of the ensuing year, unless sooner revoked or forfeited. The payment of such license fee shall be in lieu of all taxes for any purpose author- ized by the laws of this state, except taxes on such real estate as may be owned by such company, corporation or association. 1220c (Sees. 4, 5 and 6, ch. 21, 1901.) Extension of license to become due an May 1. Section 1220c. Any such company, corporation or associa- tion may have such license extended in any year, from the first day of March to the first day of May, by paying a pro rata share of the license fee prescribed by this act for the interven- ing two months and thereafter said annual license fee shall be paid on the first day of May of each year, and shall authorize 1221 RETALIATORY LAWS. 10 such company, corporation or association to transact business until the first day of May of the ensuing year. Conflicting laws repealed. AH acts and parts of acts conflicting with the provisions of this act are hereby repealed. Provisions of act not to affect section 1221. This act shall not affect, alter or repeal the provisions of section 1221 of the statutes of 1898, which, section is hereby declared to be in full force and effect. 1221 Retaliatory laws; life, fire, accident and marine com- panies; deposit; license fees. Section 1221. Whenever the laws of another state of the United States shall require of life, fire, accident or inland navigation insurance companies organized under the laws of this state and doing business in such other state any deposit of securities for the protection of their policy holders or other- wise, or any payment of taxes, fines, penalties, certificates of authority, license fees or otherwise, greater than the amount required by the laws of this state for the same purposes from similar companies organized under the law of such other state and doing business in this state, then all such companies of such other states doing business within this state shall make the same deposit with the state treasurer and shall pay him the same sum for taxes, fines, penalties, certificates of author- ity, license fees or otherwise as a condition to the issue of a j license to them as is required to be paid by the laws of such | other state. 1 Section 1221 is referred to in sections 1220, 1220c. 1222 License; form. Section 1222. The license herein provided for shall certify to the fact of the payment of the license fee, be attested by the great or lesser seal thereto affixed, and shall be in such form j as shall be approved by the attorney-general. ''^ 1760m (Ch. 389, 1907.) Proxies, existing invalidated. Section 1760m. No proxy heretofore made or given by any policyholder, officer, director or trustee of any mutual life insurance corporation organized and existing under the laws 11 DOMESTIC CORPORATIONS. 1772 of this state shall be exercised or used for voting upon any question whatsoever, and any votes given or attempted to be given by such proxy shall be absolutely void; any thing in the charter, certificate, articles of incorporation, constitution or by-laws of any such corporation to the contrary notwith- standing. 1772 (1898; ch. 507, 1905.) Domestic corporations, articles, contents, verification, filing, fee. Section 1772. In order to form such a corporation the persons desiring so to do shall make, sign and acknowledge written articles containing: 1. A declaration that they associate for the purpose of form- ing a corporation under these statutes, and of the business or purposes thereof. 2. The name of such corporation: But such name shall not contain the names of individuals in the manner in which they are ordinarily used in partnership or business names, and shall be such as to distinc^uish it from any other corporation organized under the laws of this state. In case of the reorganization of a corporation the name of the old corporation may be used. No corporate name shall be held illegal because of the omission of the word ''limited." The location of such corporation in some city, village or town in the state. 3. The capital stock, if any, the number of shares and the amount of each share. 4. The designation of general officers and the number of direc- tors, which shall not be less than three ; and the directors may be required to be classified into three classes so that one-third shall hold their offices for one year, one-third for two and one- third for three years; in which case all directors elected sub- sequent to the first shall hold their offices for three years except when elected or appointed to fill vacancies. 5. The principal duties of the several general officers respec- tively, f). The method and conditions upon which members shall be accepted, discharged or expelled ; and, in stock corporations, per- sons holding stock, according to the regulations of the corpora- tion, and they only, shall be members. 1772 (7) (1898; ch. 507. 1905; ch. 562, 1907; ch. 355, 1909, in effect June 12, 1909.) Articles; amendments; filing; recording; fees. 7. Such other provisions or articles, if any not inconsistent with law, as they may deem proper to be therein inserted 1772 DOMESTIC CORPORATIONS. 12 for the interests of such corporation or the accomplishment of the purposes thereof, including, if desired, the duration of its existence. In case the corporation is formed without capi- tal stock the articles shall fix the time and place for the first meeting for the election of officers, and the signers of such ar- ticles shall give notice thereof to the members in the manner provided in the next section. Such original articles or a true copy thereof, verified as such by the affidavits of two of the signers thereof, shall be filed with the secretary of state. A like verified copy and certificate of the secretary of state show- ing the date when such articles were filed and accepted by the secretary of state within thirty days of such filing and accept- ance, shall be recorded by the register of deeds of the county in which such corporation is located, and no corporation shall, until such articles be left for record, have legal existence. The register of deeds shall forthwith transmit to the secretary of state a certificate stating the time when such copy was recorded and shall be entitled to a fee of twenty- five cents therefor to be paid by the person presenting such papers for record. Upon the receipt of such certificate the secretary of state shall issue a certificate of incorporation. For filing the articles of incor- poration of corporations for the manufacture of beet sugar, or of butter, cheese or other dairy products, or of corporations organized for the business of preparing for rhar'ket, storing and selling products of the farms of the members of such corpora- tion, there shall be paid to the secretary of state ten dollars and for the filing an amendment to such articles, five dollars; for filing in his office the articles of any other corporation, ex- cept as is otherwise provided in these statutes, the corporation shall pay twenty-five dollars if the capital stock of the corpora- tion is fixed therein at twenty-five thousand dollars or less, and one dollar for each additional one thousand dollars of capital stock; and every other corporation organized and do- ing business under the laws of this state shall pay a fee of ten dollars for filing any amendment to its articles other than for the purpose of increasing its capital stock; and for filing an amendment increasing its capital stock shall pay, in addition to said fee of ten dollars, one dollar for each one thousand dol- lars of increase, provided that no fee shall be required from any corporation organized without capital stock or organized exclusively for educational, benevolent, charitable or reforma- tory purposes, the articles of which provide that no dividend or pecuniary profits shall be declared to the members thereof. 13 DOMESTIC CORPORATIONS. 1773 1773 (1898; ch. 507, 1905.) Organization; temporary control; first meeting; capital, subscribed or paid in for transaction of business ; aban- donment of organization. Section 1773. Until the directors or trustees shall be elected the signers of the articles of organization shall have direction of the affairs of the corporation and make such rules as may be necessary for perfecting its organization, accepting mem- bers or regulating the subscription of the capital stock. In stock corporations the first meeting may be held at any time after one-half the capital stock shall have been subscribed; and may be called by any two signers of the articles, at such time and place as they shall appoint, by giving ten days' per- sonal notice thereof in vt^riting to each subscriber of stock or by publishing notice thereof for at least two weeks before such meeting in some newspaper published at or nearest to the designated place of location of the corporation; or such meeting may be held without previous notice if all the sub- scribers for stock be present in person or by duly authorized attorney. No such corporation shall transact business with any others than its members until at least one-half of its capi- tal stock shaU have been duly subscribed and at least twenty per centum thereof actually paid in ; and if any obligation shall be contracted in violation hereof, the corporation offending shall have no right of acting thereon ; but the signer or signers of the articles and the subscriber or subscribers for stock transacting such business or authorizing the same, or having knowledge thereof, consenting to the incurring of any debt or liability, as well as the stockholders then existing, shall be personally liable upon the same. The signers of the articles of organization may abandon the organization and revoke the articles at any time before fifty per centum of the stock has been subscribed and twenty per centum thereof paid in by signing and acknowledging duplicate, written agreements re- voking the original articles of organization and forwarding same to the secretary of state, one agreement to be filed b}^ him and the other agreement to be returned with certificate of the secretary of state attached showing the date when such agreement was filed and accepted by the secretary of state, to be recorded by the register of deeds of the county in which such corporation is located; and the register of deeds shall note on the margin of the record of the articles of incorpora- tion, the volume and page where such agreement is recorded. The register of deeds shall forthwith transmit to the secretary 1774 DOMESTIC CORPORATIONS. 14 of state a certificate stating the time when such agreement was recorded and shall be entitled to a fee of twenty-five cents therefor to be paid by the person presenting such agreement for record provided, that the abandonment of the organization or the revocation of the articles in pursuance hereof shall not relieve such corporation or any signer or subscriber for stock of any stockholder then existing from any liability hereby created. 1774 (1898; ch. 507, 1905.) Articles, amendment; filing; recording; change of name; notice; publication. Section 1774. Any corporation organized under this chap- ter, may at any meeting of its members by a vote of at least the owners of two-thirds of all the stock then outstanding, in case of stock corporations, or at least one-half of the members of the corporation without stock, unless a greater vote shall be required in its articles, amend its articles of organization so as to modify or enlarge its business or purposes, change its name or location, increase or diminish its capital stock, change its officers, or its directors or provide anything which might have been originally provided in such articles j but no corpora- tion without stock shall change substantially the original pur- poses of its organization. Such amendments shall be adopted only in accordance with the articles of organization, if a mode of amending the same shall have been therein prescribed. When adopted, duplicate copies of such amendment, with a certificate thereto affixed, signed by the president and secre- tary, or if none, the corresponding officers, and sealed with the corporate seal, if there be any, stating the fact and date of adoption of such amendment, and, if a stock corporation, the total number of shares voting in favor of such amendment, and if a corporation organized without capital stock, the total number of members and the total vote in favor of such amend- ment, and that such copy is a true copy of the original, shall be forwarded to the secretary of state, one copy to be filed by him, and the other copy to be returned with certificate of the secretary of state attached, showing the date when such amendment was filed and accepted by the secretary of state, which said copy shall be recorded by the register of deeds of the county in which such corporation is located, within thirty days after filing with the secretary of state, and in case of failure so to do, such officers shall forfeit twenty -five dollars, and the register of deeds shall note on the margin of the record of the 15 DOMESTIC CORPORATIONS. 1774 original articles, the volume and page where such amendment is recorded, and no amendment shall be of effect until so re- corded, and such amendment shall be void until so filed and recorded. The register of deeds shall forthwith transmit to the secretary of state a certificate stating the time when such amendment was recorded and shall be entitled to a fee of Iwenty-five cents therefor, to be paid by the person present- ing such amendment for record. Upon receipt of such certifi- cate the secretary of state shall issue a certificate of amend- ment. Whenever the corporate name shall be changed the secretary shall publish a notice thereof in a newspaper pub- lished at or nearest to the place of location of such corpora- tion for three weeks, and if he shall fail for two months so to do shall forfeit twenty-five dollars. No change of location of any such corporation, if beyond the limits of the county, shall be valid until the articles of organization and all amendments shall have been recorded in the office of the register of deeds of the county to which the same shall be changed. 1751 to 1791m, inclusive (Chapter 86 of the Statutes.) For other laws relating to the organization, management and dissolution of corporations generally, see above sections in statutes of 1898, Sanborns' Supplement, and session law^s. The same are omitted here because they are included in a com- pilation issued by the Secretary of State, Madison. Wiscon- sin, entitled, ''Private Corporations." 1896 (Ch. 460, 1909, in effect June 19, 1909.) Insurance companies, organization ; incorporators ; articles ; approrval; filing; recording. Section 1896. Subject to the conditions and In tlie manner prescribed by law, a corpoiration may be organized by fifteen or more residents of this state to transact the business of in- surance and the articles thereof may be amended, in the man- ner provided in chapter 86 of the statutes, except that such articles and amendments shall be filed in the office of the com- missioner of insurance instead of being filed in the office of the secretary of state, and shall be submitted to and approved by the attorney-general before filing. 1897 (Ch. 460, 1909, in effect June 19, 1909.) Insurance companies; organization; purposes; classifica- tion. Section 1897. An insurance corporation may be formed for the following purposes: (The mention of several subjects or 1897 DOMESTIC CORPORATIONS. 16 risks of insurance in any subsection indicates that any one or more or all may be included.) 1. Fire Insurance. Against loss or damage to property on land, by fire, lightning, hail, tempest or explosion. 2. Marine Insurance. Vessels, freights, goods, moneys, ef- fects, and money loaned on bottomry and respondentia, against the perils of the seas and other perils usually insured against by marine insurance, including the risks of inland transporta- tion and navigation. 3. Life Insurance. Upon the lives or health of persons, and every assurance pertaining thereto, and to grant, purchase or dispose of annuities and endowments. 4. Disability Insurance. Against bodily injury or death by accident, and upon the health of persons. 5. Liability Insurance. Against loss or damage by the sick- ness, bodily injury or death by accident, of any person for which loss or damage the insured is liable. 6. Steam Boiler Insurance. Against loss or damage to the property of the insured or to the life, person or property of another, for which the insured is liable, caused by the explosion of steam boilers, pipes, engines, motors and machinery con- nected therewith or operated thereby. 7. Fidelity Insurance. Against the loss from the defaults of persons in positions of trust, public or private, and to guar- antee the performance of contracts and obligations other than that of insurance. 8. Title Insurance. To examine titles to real and personal property, furnish information relative thereto and insure against loss or damage by reason of incumbrance and defects in titles and against non-payment of principal and interest of bonds and mortgages. 9. Credit Insurance. Against loss from the failure of per- sons indebted to the assured to meet their liabilities. 10. Burglary Insurance. Against loss or damage by burglary or theft, or both. 11. Plate Glass Insurance. Against the breakage of glass, located or in transit. 12. Sprinkler Leakage Insurance. Against loss or damage by water, caused by the breakage or leakage of sprinklers, pumps, water pipes or plumbing, or its fixtures, and against accidental injury to such sprinklers and other apparatus. 13. Elevator Insurance. Upon elevators and vehicles, and to inspect the same and issue certificates thereof. 14. Live Stock Insurance. Against loss or damage to do- 17 DOMESTIC CORPORATIONS. 1897a mestic animals, except by fire, and to furnish the services of a veterinary surgeon for such animals. 15. Other Casualty Insurance. Against loss or damage to property by any other casualty which may lawfully be the sub- ject of insurance, and which shall be specified in the articles of organization, and for which no other provision is made by law. Section 1897 is referred to in 1897g. 1897a (Ch. 460, 1909, in effect June 19, 1909.) Insurance companies, s'cock ; mutual. Section 1897a. 1. Companies may be formed upon the stock plan to transact anj^ kind of insurance authorized by section 1897, or upon the mutual plan to transact the kinds of insur- ance described in subsections 1, 2, 3, 4, 5, 11, 12 and 14 of sec- tion 1897. Risks permitted in one company. 2. No company shall be formed for the purpose of engaging in any other kind of insurance than that specified in some one of the subsections of section 1897, or more kinds of insurance than are specified in a single subsection, except that a company may be formed, (a) For the purposes specified in subsections 1, 2, and 12; or (b) For the purposes of specified in subsections 3 and 4; or (c) For any or all of the purposes specified in subsections 4 to 14, both inclusive. . Policies to be separate. 3. Insurance under each subsection of section 1897 shall be written in separate and distinct policies, except that the same policy may embrace risks specified in subsections 1 and 12 or 4 and 5. Policies against hail to be separate. 4. Insurance against damage by hail to crops shall be written in separate and distinct policies from other insurance men- tioned in subsection 1 of section 1897. 1897b (Ch. 460, 1909, in effect June 19, 1909.) Mutual companies, name; "mutual," when liability "lim- ited mutual." Section 1897b. 1. The name of every corporation hereafter organized doing business on the mutual plan shall contain the word "mutual," and if the liability of the members to the 1897c DOMESTIC CORPORATIONS. 18 company and thereby the liability of the company to the mem- bers shall be limited, the name of any corporation hereafter organized shall contain the words ''limited mutual." Stock companies, name. 2. No name shall be used which shall be so similar to any name already in use as to mislead the public in any respect. 1897c (Ch. 460, 1909, in effect June 19, 1909.) Mutual company, articles. Section 1897c. 1. The articles of a mutual insurance com- pany shall provide, (a) That every person, corporation, association or partner- ship insured shall be a member and shall have one vote. (b) For amendment of the articles by a vote of three-fourths of the members voting at a regular or special meeting after the proposed amendment has been filed with the secretary and the commissioner of insurance and a copy thereof with notice of the time and place of meeting has been mailed to each member at least thirty days prior to such meeting. Limitation; risk; territcry; liability. 2. The articles of a mutual insurance company, subject to the condition that the same be expressed in every policy, may limit (a) The insurance tu specified kinds or classes of property, lives, individuals or liabilities within any subsection of section 1897; (b) The territory within which insurance shall be granted; or (c) The liability of members, which liability shall be the an- nual premium or a specified number of times the annual premium. 1897d (Ch. 460, 1909, in effect June 19, 1909.) Insurance companies; by-laws; filing; forfeiture. Section 1897d. 1. Every insurance corporation shall adopt by-laws and prescribe the manner in which the same may be amended. A copy of such by-laws and of any amendments thereto, accompanied by the certificate of the president and secretary stating that the same have been duly adopted and that such copy is true and complete, shall be filed with the commis- sioner of insurance within thirty days after such adoption. 19 DOMESTIC CORPORATIONS. 1897e and in case of failure so to do each shall forfeit twenty-five dollars. 1897e (Ch. 460, 1909, in effect June 19, 1909.) Mutual companies; applications for insurance; filing. Section 1897e. 1. In a mutual insurance corporation, a statement of the agreements or applications for insurance made before organization shall be filed with the commissioner of insurance in such form as he shall require. Membership during organization. 2. Every person making such agreement or application shall, after such filing, and until the corporation begins to transact insurance, be entitled to notice of and to participate in all meetings of members of the corporation. 1897g (Ch. 460, 1909, in effect June 19, 1909.) Stock companies; capital stock required. Section 1897g. 1. No stock insurance company shall trans- act the business of insurance unless: (a) It has a capital stock actually paid, in cash or invested as provided by law, *of at least one hundred thousand dollars for the insurance specified in any one subsection of section 1897; (b) With an additional fifty thousand dollars for the in- surance mentioned in any other subsection which may be transacted by such company; (c) Provided that the capital stock required or to be added for transacting business under either subsection 4 or 14 need not exceed twenty-five thousand dollars; (d) Provided, that a company transacting the business men- tioned in subsection 1 shall not require any additional capi- tal to transact that mentioned in subsection 12, and that the total capital required to transact the business mentioned in several or all of subsections 4, 5, 6, 8, 9, 10, 11, 12 and 13. need not exceed two hundred and fifty thousand dollars. Surplus required. 2. Nor shall any stock insurance company begin the busi- ness of insurance unless it has a surplus, including the fund mentioned in paragraph (b) of section 1897s actually paid, in cash or invested as provided by law, equal to one-fourth of its capital stock. 18971 . DOMESTIC CORPORATIONS. 20 Mutual companies; members; corporations. 3. Any mutual insurance company may issue policies to any public or private corporation, board or association in this state and elsewhere; and any public or private corporation, board or association of this state is authorized to make ap- plications, enter into agreements for and hold policies in any mutual insurance company. 18971 (Ch. 460, 1909, in effect June 19, 1909.) Domestic companies; transactin/j business; conditions. Section 18971. 1. No domestic insurance corporation shall continue or transact business, other than the dissolution and winding up of its affairs, at any time after its risks outstand- ing, for a period of one year, shall have been below the mini- mum prescribed by section 1898d, Incorporators ; direcfcors ; liability. 2. The original incorporators during the first year after the filing of the articles of organization and until the elec- tion of directors, and thereafter the directors, shall be jointly and severally personally liable for any losses incurred during the time or times hereinafter mentioned: (a) Upon any policies written, issued or delivered during any time when the risks outstanding shall be below the mini- mum prescribed by section 1898d, and (b) For the excess of any policy above the maximum single risks prescribed by section 1898 during the time while such policy exceeds such maximum single risk. 1897s (Ch. 460, 1909, in effect June 19, 1909.) Domestic companies; transacting insurance; conditions; special surplus fund. Section 1897s. No domestic insurance company shall be- gin to transact the business of insurance until: (a) It shall issue simultaneously policies upon one- hun- dred or more risks, each within the maximum single risk prescribed in section 1898; or (b) It shall hold a fund in excess of the capital stock, if any, in cash or invested as provided by law, equal to ten times the maximum single risk to be assumed, which fund shall be used for the payment of losses only and may be repaid only after the risks outstanding shall exceed the minimum pre- scribed in section 1898d. (c) It shall have received, in cash, one annual premium upon each risk outstanding. Section 1897s is referred to in 1897g. 21 SINGLE RISK. 1897t 1897t (Ch. 460, 1909, in effect June 19, 1909.) Domestic companies; examination, first; certificates. Section 1897t. No domestic insurance company shall be- gin to transact insurance until the same shall have been fully examined by the commissioner of insurance and he shall is- sue a certificate: (a) That such company has a capital, surplus and appli- cations for risks outstanding, as the case may be, and as required by law; (b) That its funds are held in cash or invested as required by law. (c) That those making applications for insurance are in a position to perform the same; (d) That the incorporators and proposed directors are finan- cially responsible for and understand the obligations imposed upon them by law; and (e) That said company has fully complied with all require- ments of the law. 1898 (Ch. 460, 1909, in effect June 19, 1909.) Insurance companies; risk; maximum single; reinsurance Section 1898. 1. (a) Except as otherwise provided by law, the maximum single risk shall be ten per centum of the ad- mitted assets. (b) In a mutual company it may be a greater amount not exceeding three times the average policy or one-eighth of one per centum of the insurance in force, whichever is the greater. (c) Upon the business mentioned in subsection 14 of sec- tion 1897, in a stock company, it shall be one-twentieth of the paid up capital. 2. Any re-insurance taking effect simultaneously with the policy shall be deducted in determining such maximum single risk. Section 1898 is referred to in 1897i, 1897s and 1898d. 1898d (Ch. 460, 1909, in effect June 19, 1909.) Insurance companies ; risks ; minimum outstanding. Section 1898d. The minimum of risks outstanding shall be two hundred, each within the maximum single risk pre- scribed in section 1898. Section 1898d is referred to in 1897i, and 1897s. 1901J MUTUAL COMPANIES. 22 1901J (Ch. 460, 1909, in effect June 19, 1909.) Mutual companies; expenses; limitation; exceptions. Section 1901j. Except as otherwise provided by law and excepting companies transacting only disability insurance no mutual insurance company shall pay or incur in any year any expense, exclusive of investment expenses, taxes and fees, in excess of fifty per centum of the premiums and assessments collected during the year; or in excess of one-half of one per centum on the greatest amount of insurance in force at any time during the year, whichever is the greater. 1901m (Ch. 460, 1909, in effect June. 19, 1909.) Mutual companies; risks; classification. Section 1901m. A mutual insurance company may classify the property or risks insured, at the time of insuring the same, under different rates corresponding as nearly as may be to the greater or less risks which may be attached thereto. 1901n (Ch. 460, 1909, in effect June 19, 1909.) Mutual fire companies ; policies ; term. Section 1901n. Except as otherwise provided by law, no mutual fire insurance company shall make any contract for in- surance expiring more than five years after the date thereof. 1902 Trading powers. Section 1902. No fire or inland navigation or transporta- tion insurance corporation organized under any law of this state shall directly or indirectly deal or trade in buying or selling any goods, wares, merchandise, or other commodities whatever, excepting such goods or articles as may have been insured by such corporation and are claimed to be damaged by fire or water; nor hold or convey real estate, excepting for the purposes and in the manner herein set forth, to-wit : Such as shall be necessary for its convenient accommodation in the transaction of its business, or such as may have been conveyed or mortgaged to it in good faith: by way of surety for loans or for debts or money due in its legitimate business, or such as have been purchased at sales upon judgments or mortgages obtained or made for such debts; but all such real estate as may be so acquired, which shall not be necessary for the ac- commodation of such corporation in the transaction of its bus- iness, shall be sold or disposed of within four years after such corporation shall have acquired the same unless such corpora- tion shall procure a certificate from the commissioner of in- 23 INVESTMENTS. 1903 surance that it will suffer materially from a forced sale there- of, in which event the sale may be postponed for such period as said commissioner may therein direct. 1903 (1898; ch. 267, 1909, in effect June 4, 1909.) Domestic companies, investments; capital. Section 1903. 1. Any domestic insurance corporation, where no other provision is made hy law, may * * * invest its capital * * * a^ follows: a. In a7iy bonds or notes secured on improved, unencumbered real estate within this state worth at least fifty per centum more than the sum loaned thereon, exclusive of buildings un- less such buildings are kept insured to an amount which to- gether with one-half the value of the land shall equal or exceed the loan, and the policy or policies of insurance thereon he as- signed to and held by said corporation as collateral to such loan. h. Any law f idly authorized bonds or other evidence of in- debtedness of the United States, or of any state of the United States. c. In the bonds or other evidences of indebtedness of any county, city, town, village, or school district of any state or ter- ritory of the United States or of the District of Columbia. d. In the first mortgage bonds of any railroad or other pub- lic service corporation of any of the states in which said insur- ance corporation shall be doing business at the time of such in- vestment. Funds other than capital. 2. Any other funds of such insurance corporation may be in- vested: a. In like bmids or evidences of indebtedness or b. In the stocks and bonds or other evdences of indebtedness of any solvent dividend paying corporation of any state in which said insurance corporation shall be doing business at the time of such investment, except stock in its own corporation or in any other insurance corporation. c. Upon the collateral security of any of the foregoing se- ciirities, provided th^t the market value of such securities shall, during the continuance of any such loan, be at least ten per centum more than the sum loaned thereon. Single investment; limitation. 3. No such company shall invest in, acquire or hold, directly or indirectly, more than ten per centum of the capital stock of any corporation, nor shall more than ten per centum of its capi- 1904 REINSURANCE. 24 tal or surplus he invested in the stock or securities of any one corporation. 1904 Lien and stock profits. Section 1904. Any insurance corporation may have a lien upon the stock or certificate of profits owned by any member for any debt due or to become due the corporation for pre- miums by providing therefor by the by-laws and by stating on the face of the certificate of stocks or profits that the same is subject to any such lien; and such lien may be waived in writ- ing by the consent of the president of such corporation upon the transfer of any such stock. 1905 Reinsurance. Section 1905. Every corporation shall have the power to effect re-insurance of any risks taken by it and to re- insure the risks taken by any other such corporation. But no stock fire insurance corporation shall expose its'elf to any loss on any , fire or inland navigation risk or hazard to an amount exceed- ing ten per cent, of its paid-up capital, exclusive of any guar- anty, surplus or special reserve fund. See sections 1905a, 1905b, 1919d. 1905a (Ch. 394, 1903.) Re-insurance by any fire company. Section 1905a. It shall be lawful for, and any fire insurance company or association authorized to transact business in the state of Wisconsin, is hereby fully authorized and empowered to re-insure the whole or any part of any fire insurance risk taken by it on any property situated in the state of Wis- consin in any other responsible company or companies, whose capital stock and surplus shall equal or exceed one hundred thousand dollars. Provided, any fire insurance company oi re-insurance company licensed toodo business in the state of Wisconsin shall on retiring from business before the expira- tion of its policies or contracts, file with the insurance commis- sioner a written notice of such intention together with a sworn statement of its outstanding liabilities or obligations under such policies or contracts, and shall re-insure such liabilities or obligations in a company authorized to do business in this state. All laws, acts and parts of acts, whether general or special, contravening or conflicting with the provisions of this act are hereby repealed. 25 DIVIDENDS. 1906 1906 ; j_: Dividends; penalty for making unauthorized. I" Section 1906. The directors, trustees or managers of any ' fire insurance corporation shall not 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 premiums on unexpirea risks and policies, which are hereby declared to be unearned premiums; and also there shall be reserved all sums due the corporation on bonds and mortgages, stocks and book ac- counts, of which no part of the interest or principal thereon has been paid during the last year and for which no suit or foreclosure has been commenced for collection, or which, af- ter judgment thereon obtained, shall have remained more than two years unsatisfied and on which interest shall not have been paid; and also there shall be reserved all interest due or accrued and remaining unpaid; provided, however, that any corporation may declare dividends, not exceeding ten per cent, on its capital stock in any one year, that shall have ac- cumulated 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 all premiums on risks not terminated at the time of making such dividend. Any corporation making any dividend contrary to the forego- ing provisions shall be liable to a forfeiture of its charter, and ^ each stockholder receiving it shall be liable to the creditors of I such corporation to the extent of the dividend received, as well as to the penalties in such cases made and provided. This section shall not apply to the declaration of scrip dividends by participating companies; but no such scrip dividends shall be paid except from surplus profits after reserving aU sums as above provided, including the whole amount of pre::iiiums on unexpired risks. The word year, wherever used in this sec- tion, shall mean the calendar year. Compare with section 1906a. 1906a (Sec. 1, ch. 166, 1899.) Dividends; penalty for making unauthorized. Section 1906a. Any stock fire insurance company doing business or organized under the laws of this state may de- clare dividends not exceeding ten per centum of its capital stock in any one year, if in addition to the amount of its cap- ital stock, plus ten per centum of the capital stock, and of such dividends and all of its outstanding liabilities, it shall have 1908 CAPITAL STOCK, INCREASE. * 26 accumulated and be in possession of a lawful fund equal to the amount of all unearned premiums on risks not terminated at the time of making such dividend. No dividends m ex- cess of said per cent, of its capital stock shall be declared until such corporation shall be in possession of a net surplus equal to one-half of its capital stock, which surplus in no event shall be less than one hundred thousand dollars. Any dividend made contrary to the provisions of this section shall work a forfeiture of the charter of the corporation making such dividend, and each stockholder receiving such dividend shall be liable to the creditors of the corporation to the ex- tent of the dividend received in addition to the other penalties and punishments prescribed by law. The word ''year," when- ever used in this section, shall not be construed to mean the calendar year. Section 1906a is referred to in section 1908a. 1908 (1898; ch. 460, 1909, in effect June 19, 1909.) Stock companies; capital; increase; amendment to arti- cles; examination. Section 1908. Unless otherwise provided in the articles no insurance corporation shall increase its capital stock without the written consent of the holders of three-fourths of the capital stock outstanding. The amendment of its articles increasing its capital stock shall be adopted as otherwise provided by law, and shall not be filed by the commissioner of insurance until after he shall have made the same examination, in the same man- ner, and on the same conditions, as upon the organization or ad- mission of a like corporation. * * * Compare section 1908 with 1908a. 1908a (Sec. 2, ch. 166, 1899.) Increase of capital stock; stock dividends. Section 1908a. Any stock insurance corporation organized under the laws of this state, or heretofore organized and do- ing business under the laws of this state, whenever it shall have accumulated and be in possession of a fund, in addition to the amount of its capital stock and all actual outstanding liabilities, including re-insurance reserve, in excess of one- half of the amount of all premiums on risks not termined, such corporation may increase its capital stock from such fund, and distribute said increase pro rata to the stockholders of such corporation; provided always that such increase shall be equal to at least twenty-five per centum of the original capi- 27 GUARANTY SURPLUS FUND. 1909 tal stock of said corporation and shall have been authorized by at least three-fourths of the members of the board of di- rectors of such corporation and approved by the commissioner of insurance; and, provided, also, that any such corporation may hereafter make and declare a dividend as provided in the preceding section of this act. See sections 1906a. 1908. GUARANTY SURPLUS FUND AND SPECIAL RESERVE FUND. 1909 How created; commissioner's duty. Section 1909. Any fire insurance corporation now or here- after organized may create the funds to be known as the guaranty surplus fund and the special reserve fund by the adoption of a resolution of its board of directors at a regular meeting thereof and by filing a copy thereof with the com- missioner of insurance, declaring the desire and intention of such corporation to create such funds and do business under the provisions of this chapter therefor. Thereupon the com- missioner shall make or cause to be made an examination of such corporation and make a certificate of the result thereof, which shall particularly set forth the amount of its surplus funds at that time which may, under the provisions of the next section, be equally divided between and set apart to con- stitute such funds, which certificate shall be recorded in the insurance department. After the date of the recording of such certificate all policies and renewals issued by such cor- poration shall have printed thereon a notice that they are issued subject to the provisions of section 1909 to 1913 inclu- sive of these statutes. 1910 Dividends; surplus, and rule for estimating. Section 1910. Thereafter no such corporation shall declare or pay in any form any dividend exceeding seven per cent, per annum upon its capital stock until after its guaranty sur- plus fund and its special reserve fund shall have together ac- cumulated to an amount equal to its said capital stock; and the entire surplus profits of such corporation, above such an- nual dividend, shall be equally divided between and be set apart to constitute the said funds, which shall be held and 1911 GUARANTY SURPLUS FUND. 28 used as hereinafter provided and not otherwise; and any such corporation which shall declare or pay any dividend contrary to the provisions of this section shall be liable to be proceeded against by the attorney-general for its dissolution. In esti- mating such surplus profits for the purpose of making a divi- sion thereof between said funds there shall be deducted from the gross assets of the corporation, including for this pur- pose the amount of the special reserve fund, the sum of the following items: 1. The amount of all outstanding claims. 2. An amount sufficient to meet its liability for the un- earned premiums received on policies having less than one year to run from date of policy and a pro rata proportion of the premiums received on the policies having more than one year to run from date of policy, which shall be known as the re-insurance liability. 3. The amount of its guaranty surplus fund and of its spe- cial reserve fund. 4. The amount of the capital of the corporation. 5. Interest at the rate of seven per cent, per annum upon the amount of the capital for whatever time shall have elapsed since the last preceding cash dividend; and the balance shall constitute such divisible surplus. Section 1910 is referred to in sections 1909, 1912. 1911 Investment of surplus. Section 1911. The said guaranty surplus fund shall be in- vested in the same manner as capital on surplus accumula- tions may be and shall be held liable and applicable in the same manner as the capital stock to the payment of the losses generally; and such special reserve fund shall be invested only as capital stock may be, and shall be deposited from time to time as the same shall accumulate and be invested with the state treasurer, who shall permit said corporation to collect and receive the interest or dividends upon such se- curities as the same may accrue; but no such securities so deposited shall be withdrawn unless others of equal amount and value are substituted therefor; and such special reserve fund shall be deemed a fund contributed by the stockholders to protect such corporation and its policyholders, other than claimants for losses already existing or then incurred, in case of such extraordinary conflagrations as are mentioned in the next section ; and said fund shall not be regarded as any part [^ 29 GUARANTY SURPLUS FUND. 1912 of the assets of said corporation so as to be liable for any claims for losses except as hereinafter provided. Section 1911 is referred to in section 1909. 1912 Application of reserve; safety fund; discharge of com- pany's liability. Section 1912. In the event of an extensive conflagration Avhereby the claims upon any such corporation shall exceed the amount of the capital stock and of its guaranty surplus fund, the corporation shall notify the commissioner of insur- ance thereof, who shall then make, or cause to be made, an examination of the corporation, and shall issue his certificate of the result in duplicate showing the amounts of capital, of guaranty surplus fund, of special reserve fund, or reinsurance liability and of other assets, one copy to be given to the cor- poration and one to be recorded in the insurance department; thereupon the said special reserve fund shall be immediately held to protect all policy-holders, other than such as are claim- ants upon it at the time or such as become claimants in conse- quence of such conflagration, and the amount of such special reserve fund and an amount equal to the unearned premiums of such corporation, to be ascertained as provided in section 1910, shall constitute the capital and assets of such corpora- tion for the protection of policy-holders other than such c'laimants and for the further conduct of its business; and such certificate of the commissioner shall be binding and con- clusive upon all parties interested, whether as stockholders, I creditors or policyholders, and upon payment to the claim- ants for losses or otherwise existing at the time of or caused by such general conflagration of the amount to which they i. are respectively entitled, in proportion to their several claims, of thie full sum of the capital of sQch corporation, its guaranty surplus fund and its assets, excepting only such special reserve fund and an amount of its assets equal to its liability for unearned premiums as so certified, such corpora- tion shall be forever- discharged from any and all further lia- bility to such claimants and to each of them; and the state treasurer shall, after isuing such certificate by the commis- .doner, upon the demand of such corporation, transfer to it all such securities as it shall have deposited with him as such spe- cial reserve fund ; and if the amount of such special reserve fund be less than fifty per cent of the full amount of the capi- tal of the corporation a requisition shall be issued by the 1913 GUARANTY SURPLUS FUND. 30 commissioner of insurance upon the stockholders to make up such capital to that proportion of its full amount in the man- ner provided by law in the case of corporations with impaired capitals; and any capital so impaired shall be made up to at least the sum of two hundred thousand dollars; and in case such corporation, after such requisition, shall fail to make up its capital to at least said amount of two hundred thousand dollars as herein directed, said special reserve fund shall still be held as security and liable for any and all losses occur- ring upon policies of such corporation after such conflagra- tion. Section 1912 is referred to in section 1909. 1913 Restoration of capital. Section 1913. If at any time after said special (reserve fund shall have been set apart by any corporation it shall ap- pear upon examination by the commissioner of insurance that the capital of such corporation has, without the occurrence of any such extensive conflagration become impaired so that he shall order a call upon the stockholders to make up such im- pairment, the board of directors may either require the neces- sary payment by the stockholders or at their option apply for that purpose so much of said special reserve fund as will make such impairment good. Section 1913 is referred to in section 1909. 1914 Scope of chapter. Section 19i4. All fire or fire and inland navigation or transportation insurance companies organized under any law of this state shall be subject to all the provisions of this chap- ter (Ch. 89, Statutes of 1898) properly applicable thereto, ex- cept that their capitals may continue of the amount and char-' acter provided by their respective charters, during the term authorized by such charters, and their investments may re- main as prescribed by their charters, and they shall enjoy any peculiar privileges and powers given in their charters not inconsistent with this chapter. 31 REINSURANCE CORPORATIONS. 1914a REINSURANCE CORPORATIONS. 1914a (Ch. 232, 1901; ch. 206, 1905.) Organization and admission; fees and taxes. Section 1914a. Any number of residents of this state, not less than nine, may form a corporation for the purpose of transacting the business of re-insurance; such re-insurance company shall transact business only with authorized insur- ance companies and not through agents, and such re-insur- ance may include all classes and kinds of insurance permitted by the statutes, provided, however, that any re-insurance com- pany organized or admitted to transact more than one class or kind of re-insurance, shall be required to have an aggre- gate capital equal to the capital now required by law for each kind or class of insurance, and shall be required to hold re- serves in the same amount and manner as now required for each such kind or class of insurance which by the provisions of its charter, it is authorized to transact; such re-insurance com- pany may be incorporated, and foreign re-insurance companies may be admitted to transact business in this state, in the same manner as fire, life, casualty and surety corporations are now provided for and shall comply with the same laws regulating such corporations so far as the same may be applicable. Such re-insurance company shall pay the same fees and taxes re- quired to be paid by fire insurance companies, and shall within the month of January of each year, file an annual statement of its business with the department of insurance, showing its condition on the thirty-first day of December of the preceding year. FOREIGN FIRE INSURANCE COMPANIES. 1915 Conditions upon which they do business. Section 1915. No fire or fire and inland navigaltion or transportation company incorporated under the laws of any other state or of any territory or of any foreign government shall, directly or indirectly take risks or transact any business of insurance in this state except upon compliance with and maintenance of the following requirements. Capital; solvency of mutual companies. 1. It shall be possessed of, if a stock corporation, an actual paid up in cash capital of at least one hundred thousand dol- 1915 FOREIGN FIRE COMPANIES. 32 lars; but mutual corporations of other states, having the same- standard of solvency as required of mutual companies of this state, may be admitted, in case the state where such corpora- tions are located admit the mutual corporations of this state Lloyds, individual underwriters and fire associations, other than stock or mutual corporations, may be admitted by complying in all respects with the laws applicable to fire ' insurance cor- porations organized under the laws of any foreign govern- ment. The commissioner of insurance, before issuing a license for the admission of any corporation or association, shall make a personal examination of the affairs and financial condition thereof, and if found to meet the conditions and requirements of law shall issue such certificate of admission. Remaval of cause; service of process. 2. It shall first file a written instrument, duly signed by the president and secretary thereof, with the corporate seal affixed* declaring that it desires to transact the business of insurance in this state and that it will accept a license therefor accord- ing to the laws of this state, which shall cease and terminate in case such corporation shall remove or make application to remove. into any court of the United States any action or pro- ceeding commenced in any court of this state upon a claim or cause of action arising out of any business or transaction done therein, or in case it shall violate or fail to comply with any provision of law applicable to such corporation, or in case itw capital shall be impaired to the extent of twenty per cent., and shall not be made good within such time as the commis- sioner of insurance shall require, if such commissioner shall, in either case, declare its license revoked therefor. Such cor- poration shall also appoint, in writing, the commissioner of insurance or his successors in office to be its true and lawful attorney upon whom all legal process in any action or proceed- ing against it may be served, and in such writing shall agree that any legal process against it which is served on said at- torney shall be of the same legat force and validity as if served on the corporation, and that such authority shall continue in force so long as there is any liability outstanding against the corporation in this state. A copy of such writing, duly certi- fied, shall be filed in the office of the commissioner, and copies certified by him shall be deemed sufficient evidence thereof. Service upon such attorney shall be deemed sufficient service for all purposes upon the principal, and shall be as effectual for all purposes as though made upon a corporation existing nn^QJ^ th^ laws of this state. When legal process against any 33 FOREIGN FIRE COMPANIES. 1915 such corporation is served upon the commissioner he shall im- mediately notify the corporation of such service hy letter prepaid and directed to its secretary, or, in case of a corpora- tion of a foreign country, the resident manager, if any, in this country, and shall, within two days after such service for- ward, in the same manner, a copy of the process served on him to such secretary or manager or to any person previously designated by the corporation in writing. The plaintiff, for each process so served, shall pay to the commissioner, at the time of such service, a fee of two dollars, which shall be re- covered by him as a part of the taxable costs if he prevails in the suit. The commissioner shall keep a record of all process served on him, which record shall show the day and hour when such service was so made. Copy of charter and statement. 3. It shall file in the office of said commissioner a copy of its charter, duly certified by its secretary, together with a statement verified by the oath of the president, vice-president or other chief officer and of the secretary, containing the name of the corporation, place where located, amount of its capital stock, and a detailed statement of its assets showing the amount of cash on hand and in bank, the amount of real estate and how much of the same is incumbered by mortgage or otherwise, the number of shares of stock of every kind owned by it, the par and market value of the same, the amount loaned on bond and mortgage and other securities, stating the kind and amount loaned on each, the estimated value of the whole amount of such securities and all its other assets or property and the value thereof; also showing the amount of its indebt- edness, the amount of losses adjusted and unpaid, the amount incurred and in process of adjustment, the amount resisted as illegal or fraudulent and all other claims existing against it; and a copy of the last report, if any, made under any law of the state by which it was incorporated. Conditions as to companies organized under foreign gov- ernments. 4. Every such corporation organized under the laws of any foreign -government shall, in addition to the foregoing, file in the office of said commissioner a statement, verified by the oath of its president, secretary or manager residing in the United States, showing to his satisfaction that such corpora- tion has invested in the bonds of the United States or of the states of New York or Wisconsin, such bonds to produce at 3-1. L. 1915 FOREIGN FIRE COMPANIES. 34 least the average current rate of interest on such securities or in bonds or mortgages on unincumbered real estate worth fifty per cent, more than the amount loaned thereon, the sum of at least two hundred thousand dollars, and that such bonds are deposited with the superintendent of the insurance depart- ment or other proper officer of some one of the states of the United States, or are held by citizens of the United States as trustees, and that such securities are not pledged or incum- bered, but are held and remain for the benefit and security of the policy holders of such corporation residing in the United States; or in default of such statement shall deposit with the state treasurer, for the benefit and security of policy holders residing in the United States, a sum not less ban fifty thou- sand dollars in bonds of the United States or of the state of Wisconsin producing the rate of interest aforesaid, said bonds not to be received, by said treasurer at a rate above their par or current market value, or in bonds and first mortgages on improved unincumbered real estate in this state worth fifty per cent, more than the amount loaned hereon. The bonds and securities so deposited mav be exchanged from time to time for other securities receivable as aforesaid ; and so long as the corporation so depositing shall continue solvent and comply with the laws of this state it may be permitted by the state treasurer to collect the interest or dividends on said de- posit; and where deposit is made of bonds or mortgages ac- companied by full abstracts of titles the fees for an examina- tion of title by counsel, to be paid bv the par^v making the deposit, shall not exceed twentv dollars for each mortgage ; and the fees for an appraisal of propertv shall be five dollars to each appraiser, not exceeding two. besides expenses, for each mortgage. Renewal of statements; report. 5. Tt shall renew from year to year, in such manner and form as may be required by the commissioner of insurance, the statements and evidences of investments and deposits above required and shall make and file the annual statement and report required by section 1920 so long as it shall transact business in this state. Certificates. f) Tt shall first procure from the s^ate treasurer a certificate for the deposit so made, when renuired by the foregoing: pro- visions : and from the commissioner a certificate of authority stating that such corporation has complied with all the pro- visions of this chapter applicable to it. 35 LICENSE, ISSUE, EXPIRATION. 1916 License fees. 7. It shall pay the state treasurer the license fees required ; to be paid by section 1219 at the time and in the manner there- in prescribed. Section 1915 is referred to in sec. 2637 (9). 1916 Issue and expiration of license. Section 1916. The commissioner of insurance shall, upon being satisfied that any such insurance corporation has fully complied with the requirements of the preceding section and all other provisions of law applicable thereto, deliver to such corporation a license to transact business in this state as pre- scribed in these statutes, and shall renew the same from year to year so long as such corporation shall desire to do business in this state and its capital, securities and investments remain secure, and shall give to every agent of such corporation a certificate that such corporation has complied with all the provisions of law and is authorized to transact business in this state, which shall continue in force unless sooner revoked, in case of fire, marine or inland navigation or transportation and mutual hail corporations, until the thirty-first day of January next after the date thereof , and in case of life or accident cor- porations until the first day of March next after the date thereof, and shall be annually renewed. ; 1917 Payment of fee ; cause f tvr revocation of license. . Section 1917. No fire or fire and inland navigation insur- ance corporation shall transact any insurance business in this state without first having paid the license fees prescribed therefor by section 1219 and obtained a license therefor a^ provided in the preceding section, and if any such corporation shall remove or make application to remove into n^iy court of th';' United States any action or proceding commenced in any couri: of this state upon a claim or cause of action arising nut of any business or transaction done in this state, or if it shall violate or fail to comply with any provision of law applicable thereto, or in case its capital shall be impaired to the extent of twenty per cent, and shall not be made good within such time Hs the commissioner of insurance shall require, according to section 1968, it shall be the imperative duty of the commis- sioner to revoke any and every authority, license or certificate granted to such corporation or any agent thereof to transact 1918 FIRE COMPANIES. 36 any business in this state, and no such corporation or agent thereof shall thereafter transact any business of insurance in this state till again duly licensed ; in case such revocation shall be made because of the removal of any action to any court of the United States no renewal, license or certificate of au- thority shall be granted to such corporation for three years after such revocation. Whenever such license shall be re- voked the commissioner shall give notice of such revocation by mail to every agent of such corporation who shall have obtained any certificate of authority therefor and shall also publish notice thereof in the official state paper. 1918 Withdrawal of securities. Section 1918. Whenever any such foreign corporation shall elect to discontinue business in this state and shall have risks unexpired on property insured therein it shall, before with drawing its bonds or other securities deposited with the treas- urer, re-insure in some good and solvent corporation author- ized to transact business in this state all such unexpired risks to the satisfaction of the insured and the commissioner of insurance, and when so re-insured the said commissioner shall certify the fact to the treasurer, who shall thereupon, and not otherwise, surrend(^r and deliver its bonds and other securities in his custody. 1919 Service of process. Section 1919. If the license of any such corporation not organized under any other law of this state, shall be revoked or it shall cease to transact business in this state the attorney last appointed and the agents last designated as acting as such for it shall continue attorney and agents for the purpose of serving process for commencing actions upon any policy or liability incurred or contracted in this state while it transacted business therein so long as any such liability shall exist. 1919a (Sec 1, ch. 190, 1899; sec. 1, ch. 166, 1905.) Risks to be approved by resident agent; exceptions. Section 1919a. No fire insurance company or association not incorporated under the laws of this state, authorized to transact business herein, shall make, write, place, or cause to be made, written or placed, any policy, duplicate policy or contract of insurance of any kind or character, or any general 37 RESIDENT AGENTS. 1919b or floating policy upon property situated or located in this state except after the said risk has been approved, in writing by an individual agent who is a resident of this state, regu- larly commissioned and licensed to transact fire insurance busi- ness herein, w^ho shall countersign all policies so issued and re- ceive the commission thereon when the premium is paid, and enter such policy, duplicate policy or contract and payment of premium upon his records, to the end that the state may receive the taxes required by the law to be paid on the premiums col- lected for insurance on all property located in this state. Nothing in this act shall be construed to prevent any insurance company or association, authorized to transact business in this state, from issuing policies at' its principal or department offices, covering property jn this state, provided that such policies are issued upon applications procured and submitted to such company by agents who are residents of this state, and licensed to transact the business of insurance herein and who shall countersign all policies so issued and receive the commission thereon when paid, and make the entries thereof hereinbefore provided. No provision of this section is in- tended to or shall apply to direct insurance covering the roll- ing stock of railroad corporations or property in transit while in the possession and custody of railroad corporations or other common carriers, nor to the property of such common car- riers used or employed by them in their business as common carriers of freight, merchandise or passengers. See sections 1945e and 1976. 1919b (Sec. 2, ch. 190, 1899.) Re-insurance, how effected. Section 1919b. No fire insurance company or association shall re- insure in any manner "whatsoever, the whole or any part of a risk taken by it on property situated or located in this state in any other company or association not authorized to transact business in this state. No fire insurance company or association shall transfer or cede, in any manner whatso- ever, to any company or association not authorized to do busi- ness in this state, any risk or liability or any part thereof as- sumed by it, under any form of contract of insurance, cover- ing property located in this state, including any risk or liabil- ity under any general or floating policy, or any agreement general, floating or specific, to re-insure excess loss by one or more fires. No fire insurance company or association shall re- insure, or assume as a reinsuring company, or otherwise, in 1919c REINSURANCE. 38 any manner or form whatsoever, the whole or any part of any risk or liability, covering property located in this state, of any insurance company or association not authorized to transact business in this state. Section 1919b is referred to in 19T9g. Compare sections 1905, 1905a and 1919d. 1919c (Sec. 3, ch. 190, 1899.) Ccanmissioner's authority; evidence of violation of lav^. Section 1919c. A\/henever the commissioner of insurance shall have or receive information that any fire insurance com- pany or association, not incorporated under the laws of this state, has violated any of the provisions of sjection one of this act, he is authorized, at the expense of such company or association, to examine, by himself or his accredited represent- ative, at the principal office or offices of such company or asso- ciation, located in the United States of America, or in any for- eign country, and also at such other offices or agencies of such company or association as he may deem proper, all books, rec- ords and papers of such company or association and may ex- amine under oath the officers, managers and agents of such company or association as to such violation or violations. The refusal of any such company or association to submit to such examination or to exhibit its books and records for inspection shall be presumptive evidence that it has violated the provi- sions of the first section of this act, and shall be subject to the penalties prescribed and imposed by this act. Section 1919c is referred to in sec. 1919g. 1919d (Sec 4, ch. 190, 1899.) Report concerning re-insurance; effect of not making re- port. Section 1919d. Every fire insurance company or associa- tion shall annually and at such other times as the commissioner of insurance may require, in addition to all returns now by law required of it or its agents or managers, make a return to the commissioner of insurance in such form and detail as may be prescribed ])y him, of all reinsurance or cessions of risk or liability contracted for or etfected by it, whether by issue of policy, entry or bordereau, general participation agreement or by excess less re -insurance, or in any other manner whatso- ever, upon property located in this state, or covering, whether specified or otherwise, any risk or liability upon property so located, such return to be certified by the oath of its presi- 39 REINSURANCE. 1919e dent and secretary, if a company or association of one of the United States, and, if a company or association of a foreign country, by the oath of its managers in the United States as to such reinsurance or cessions effected through its branch office in the United States, and by oath of its president and secretary, or by officers corresponding thereto, at its home office wherever located, as to re- insurance as aforesaid con- tracted for or effected through the foreign office. The refusal of any such company or association to make the returns herein required' shall be presumptive evidence that it is guilty of vio- lating the provisions of the second section of this act, and shall subject it to the penalties prescribed and imposed by this act. Section 1919d is referred to in sec. 1919g. Compare sections 1905, 1905a and 1919c, 1919e. 1919e (Sec. 5, ch. 190, 1899.) Penalty for violating law; non-payment of judgment. Section 191 9e. Any insurance company or association wil- fully violating or failing to observe and comply with any of the provisions of this act, applicable thereto, shall be subject to and liable to pay a penalty of five hundred dollars for each violation thereof and for each failure to observe and com- ply with any of the provisions of this act ; such penalty may be collected and i-ecovered in an action brought m the aiame of the state in any court having jurisdiction thereof. Any in- surance company or association which shall neglect and refuse for thirty days after judgment in any such action to pay and discharge the amount of such judgment shall have its authority to transact business in this state revoked by the commissioner of insurance and such revocation shall continue for at least one year from the date thereof,' nor shall any insurance company or association whose authority to transact business in this state shall have been so revoked, be again authorized or permitted to transact business herein until it shall have been paid the amount of any such judgment and shall have filed in the office of the commissioner of insurance a certificate signed by its president or other chief officer to the effect that the terms and obligations of the provisions of this act are accepted by it as a part of the conditions of its right and authority to transact business in this state. Section 1919e is referred to in sections 1919c, 1919d, 1919g. 1919f UNAUTHORIZED INSURANCE. 40 ' Conflicting laws repealed. (Sec. 7, ch. 190, 1899.) All acts and parts of act, whether general or special, incon- sistent with the provisions of this act are hereby repealed. 1919f (Sec. 6, ch. 190, 1899.) Unauthorized risks; penalty. Section 1919f. Any company or person who shall solicit or place insurance in a fire insurance company not authorized to do business in this state, shall, in the event of the failure, of such unauthorized company to pay any claim or less with- in the policy issued, be liable to the insured for the amount thereof to the extent that such company would have been liable ; and such company or agent shall, on satisfactory proof of vio- lation of either of the foregoing provisions made to the com- missioner of insurance, have its or his authority to transact business in this state revoking for a period of not less than ninety days, and shall not again be permitted to do business herein until all liability for such violation shall be discharged and the provisions of these statutes concerning the admission of foreign fire insurance companies to do business in this staie be complied with. Whenever said commissioner shall receive notice of the violation of any provision of this section he shall forthwith in person or by his deputy, visit the office of the company or any insurance agent charged with such violation, and demand an inspection of the books and records thereof; and any company or such agent refusing to permit such in- spection shall be deemed guilty of violating this section, and such commissioner shall enforce the penalties herein provided against the same. 1919g (Sec. 1, ch. 344, 1899.) Construction of foregoing provisions concerning re-in- surance. Section 1919g. Nothing contained in chapter 190, laws of Wisconsin for the year 1899, shall be construed as preventing any insurance company which has lawfully issued a policy of insurance upon property within this state, from reinsuring said risk or any portion thereof, in any authorized company without having said policy of reinsurance signed by a local agent in this state. 41 FIRE COMPANY REPORTS. 1920 REPORTS. 1920 a898. eh. 181, 1905.) When to be made; contents. Section 1920. The president or vice-president and secre- tary of each fire, inland naviajation or transportation insurance corporation, except mutual fire insurance corporations organ- ized urider the laws of this state and licensed to do business therein, shall annually within the month of January, prepare and deposit in the oflfice of the commissioner of insurance a statement, verified by their oaths, of the business of the cor- poration during the year and the condition thereof on the thir- ty-first day of December then next preceding, exhibiting the following items: First. The amount of the capital stock of the corporation. Second. The property or assets of the corporation, speci- fying : 1. The value as near as may be, of the real estate held by such corporation. 2. The amount of cash on hand in such corporation's oiSce and also the amount deposited in bank to the credit of such corporation, and specifying in what bank or banks the same is deposited. 3. The amount of loans secured by bonds or mortgages, con- stituting the first lien on real estate on which there shall be less than one year's interest due or owing. 4. The amount of loans on which interest shall not have been paid within one year previous to such statement. 5. The amount due the corporation on which judgments have been obtained. 6. The amount of stocks of this state of the United States of anv incorporated city of this state and of any other stocks owTied by the corporation, specifying the amount, number of shares and the par and market value of each kind of stock so held. 7. The amount of stocks held thereby as collateral security for loans with the amount loaned on each kind of stock, its p:^r value and market value. 8. The am.ount of the assessments on stocks or premium notes, paid and unpaid. 9. The amount of interest actually due and unpaid. 10. The amount of premium notes on hand on which policies are in force. 1920 FIRE COMPANY REPORTS. 42 11. The amount and the manner of the investment of its "uaranty surplus fund, if any. 12. The amount and. manner of the investment of the special reserve fund, if any. Third. The liabilities of such corporation, specifying: 1. The amount of losses due and unpaid. 2. The amount of claims for losses resisted by the corpora- tion. 3. The amount of losses incurred during the year, includini? tho'^e claimed and not yet due and those reported to the cor- poration upon which no action has been taken. 4. The amount of dividends declared due and unpaid. 5. The amount of dividends, either cash or script, declared not yet due. 6. The amount of money borrowed and security given for the payment thereof. 7. The amount required to reinsure all outstanding risks. 8. The amount of all other existing claims against the cor- poration. Fourth. The income of the corporation during the preced- ing year, specifying: 1. The amount of interest money received, 2. The amount of cash premiums received. 3. The an^ount of notes received for premiums. 4. The amount of income received from other sources. 5. The amount received in cash premiums for insuring prop- erty in this state. •6. The amount received in premium notes, in cash notes, and the amount received from other sources in this state. Fifth. The expenditures during the preceding year, speci- fying: 1. The amount of losses paid during the year, stating how much accrued prior and how much subsequent to the date of the preceding statement. 2. The amounts of dividends paid during the year. 3. The amount of expenses during the year, stating the amount paid officers, salaries and^fees ; the amount paid agents commissions and fees, and the amount paid for office expenses and rent; the amount paid for taxes, and the amount of all other payments and expenditures. 4. The amount paid in this state for salaries, commissions to agents and for losses. Sixth. Any other items or facts which the commissioner of insurance may require. The statement of (>very such corporation whose capital is 43 LOCAL BOARDS. 1921 composed in whole or in part of notes shall show the amount of notes originally forming such capital and what portion of them is still held by such corporation and considered capital. The statement of any such foreign corporation shall set forth its business and affairs in the United States, duly verified by its resident manager in the United States For any failure to make and deposit such annual statement or to promptly reply in writing to any inquiry addressed by the commissioner of insurance in relation to the business of any such corporation or for wilfully making any false statement therein, every cor- poration or officer so failing or making such false statement shall pay to the state a fine of five hundred dollars, and for neglecting to file such annual statement an additional five hun- dred dollars for every month that such corporation shall con- tinue thereafter to transact any insurance business in this state until such statement be filed. Section 1920 is referred to in section 1915 (5). 1921 Receivers and trustees to make report. Section 1921. All receivers and trustees of any such insur- ance corporation shall, in the month of January in each year and at any other time when requested by the commissioner of insurance make and file annual and other statements of their assets liabilities and of their income and expenditures in the same manner and form as the officers of such corporations are required by law to do and under the same penalties for failure or neglect so to do. BOARDS OF FIRE UNDERWRITERS AND FIRE PATROL. 1922 Incorporation. Section 1922. Any three or more agents or underwriters lawfully doing the business of fire insurance in any city of this state, may be incorporated as a board of underwriters in such city under the provisions of chapter 86 for the usual purposes for which such boards are established. 1923 Fire patrol; duties. Section 1923. Any incorporated board of fire underwriters may establish a fife patrol in any city wherein it is located and for that purpose may appoint and remove at pleasure a 1924 LOCAL BOARDS. 44 superintendent and such number of patrols as they shall deem proper and provide suitable accommodations and apparatus for such patrol, and from time to time make all needful rules and regulations for the government and direction thereof; the duty of such patrol shall be to discover and prevent fires and to save and preserve life and property at and after fires and for that purpose full power is given to such superintendent and patrol to enter any building on fire or which may be exposed to or be in danger of taking fire from other burning buildings subject to the control of the chief of the fire department of the city, and to remove such property or any part thereof at or immediately after a fire and to guard and protect the same. 1924: (1898, sec. 1, ch. 144, 1901.) Meeting of underwriters. Section 1924. For the purpose of establishing and defray- ing the necessary expenses of such fire patrol there shall be a meeting of the said board of fire underwriters in the month of January in each year; prior notice of such meeting, speci- fying the time and place at which it will be held, shall be in- serted for at least ten days in one daily newspaper published in the city where such board is located; at such meeting each insurance corporation, agent or person doing a fire insurance business in such city shall have the right to be present and each corporation represented shall be entitled to one vote. Such meeting may determine whether such fire patrol shall be established, or continued if established, and fix the maximum amount of expenses which shall be incurred therefor during the ensuing year; but such maximum amount shall not in any one year exceed two per cent of the aggregate amount of premiums for fire insurance received in such city during such year. 1925 (1898; sec. 2, ch. 144, 1901.) Expenses of patrol. Section 1925. On the first day of February in each year each insurance corporation, underwriter or agent doing any fire insurance business in such city shall furnish to said board a statement, verified by affidavit, of the aggregate amount of premiums received for insuring property in such city during the year endiuQf on the next preceding first dav of January. Upon the statement so furnished said board shall assess the amount fixed as aforesaid for the expenses of said fire patrol for the current year upon the several corporations, underwrit- 45 FIRE DEPARTMENT TAX. 1926 ers or agents, in proportion to the amount of the premiums returned, as received by each, and such assessmenis may be recovered by action in the name of such board, if any such !^tatements shall not be made as above required, said board shall cause a demand in writing to be served on the corpora- tion, underwriter or agent so failing to make such sworn state- ment. Such demand shall be served by leaving the same dur- ing business hours at its or his office with the person in charge thereof, and every such corporation, underwriter or agent who shall wilfully make false statement or who shall, for fifteen days after such demand neglect to render such statement shall forfeit fifty dollars and an additional fifty dollars for each day's neglect after the expiration of said fif- teen days, one-half to the use of said board, when it shall- prosecute therefor. DUTIES TO BE PAID. 1926 (1898, xjh. 32, 1899.) For fire departments; liability of insured; action to re- cover. Section 1926. There shall be paid on the first day of Feb- ruary in each year to the treasurer of any city or village, or town containing an unincorporated village, having or main- taining a regularly organized fire department, as hereinafter provided, for the support and maintenance of such fire depart- ment, by every underwriter who shall effect any fire insurance and by every person who shall act as agent for any fire insur- ance corporation or underwriter in such city, village or town a duty of two percentum upon the amount of all premiums which, during the year or part of a year ending on the next, preceding first day of January, shall have been received by such underwriter or agent or by any other person for him, or shall have been agreed to be paid for any insurance effected or agreed to be effected or promised by him as such agent or otherwise, against loss or injury by fire in any such city or village, or town containing an unincorporated village. And no person shall, in any such city, .village or town, as under- writer, agent or otherwise, effect or agree to effect, or procure to be effected any insurance upon which the above duty is re- quired to be paid until he shall have executed and delivered to such treasurer a bond in the sum of one thousand dollars with such sureties as such treasurer shall approve, conditioned 1926 FIRE DEPARTMENT TAX. 46 that he will render to such treasurer ou the lirst day of each l* ebruary a just and true aeeount, verihed by his altidavit, oi all premiums which, during the year enamg on the lirst day 01 ejanuary preceding such report, shall have been received by him or any other person tor lum, or agreed to be paid for any insurance against loss or injury by fire in any such city, vil- lage or town which shall have been effected or agreed to be effected by him, and that he will on the first day of each Feb- ruary, pay to the said treasurer two per centum upon the fuli amount of such premiums. Every person who shall effect or agree to eft'ect any ffre insurance in any such city, village or town without having executed and delivered such bond or who shall wilfully omit to pay such duty shall, for each offense, for- feit one hundred dollars, which snail be paid into the treasury for the support and maintenance of such ffre department, in case the ffre department of such city, village or town be a voluntary department, or part paid, or either, having a treas- urer or treasurers, all moneys received or collected by virtue of this section shall be paid to the treasurer of such depart- ment for the support and maintenance thereof exclusively. No city, village or town shall be entitled to such duty unless it shall have, support or maintain a ffre department consisting. in case of a voluntary department, of at least one fire engine company with not less than ten active inembers, having at loasl i>r)e good fire engine and not less than five hundred feet oi* sound rubber, leather or other hose kipt 'n an engine house fit and ready at all times for actual service, and at least one hook and ladder company, wnth not less than twelve active members, having a good hook and ladder truck, and each such company shall hold a meeting at least once a month, and in case of a paid or partly paid fire department, the buildings machinery and materials hereinbefore enumerated and the necessary men, teams and equipment to constitute an active and properly equipped department, ready for service at all times, l^ut in case any city, village or town shall have and maintain a system of waterworks-^vith sufficient pressure for fire purposes, with one or more hose companies of not less than ten active members, each having not less than five hundred feet of sound rubber, leather or other hose, with one or more hose carts kept fit and ready at all times for actual service such city, village or town shall not be required to maintain a fire engine and the fire department shall be entitled to receive the two per centum named in this section. If any such under- writer or agent shall fail to file the bond or make the report 47 TOWN MUTUALS. 1927 ur payment herein provided ior liie coinmisciioner ui insurance snail, upon satisiactory proot tiiereoi, nociiy tne company rep- resentea by sucli unaerwriier or agenc that he is in aeiauit and tliat ii sucn deiault continues lor thirty days after the uate ot such notice he win revoke ilie license oi such company and all ot its agents to do Dusiness in this state lor the unex- pired portion of the year, and at me expiration ot such time he shall revoke all o± sucli licenses and shall not renew tlieni or any ot them so long as such ueiault continues. The owner. ot any property situated m any city, village or town within this section who shall insure me same in any company not authorized to do business in this state, or in any company authorized to do business in this siate out tarough agents or persons not residing in such city, village or town, and who has not complied with the provisions of this section in regard to filing bond shall be liaule to the city, village or tow^n in which such property is situated for the percentage of pre- miums on the insurance on such property, and such percent- age may be recovered in a civil action brought in the name of the city, village or town the fire department of which is en- titled thereto ; and all actions to recover such percentage may be so brought. TOWN MUTUAL COMPANIES. 1927 (1898, ch. 202, 1901; ch. 439, 1907.) Organization. Section 1927. 1. Any number of persons, not less than twenty-five, residing in the same to\Vn or in adjoining towns not exceeding thirty in number, except in cases where any county contains a larger number, when all the towns therein may be included, who collectively own insurable property of not less than twenty-five thousand dollars in v.ilue which they desire to have insured, may form themselves into a corpv)ra- tion for mutual insurance against loss or damage by fire of lightning by complying with the following conditions namely: They shall sign articles of organization which shall be sub- stantially in the following form: Articles; form. 2 The undersigned residents of the town below named and owners of more than twenty-five thousand dollars' worth of property therein which we desire to insure, do hereby asso- ciate for the purpose of forming a mutual fire insurance 1927 TOWN MUTUALS. 48 \ corporation to do sucli insurance m the towns o± inhere insert the names ot each town in Which such corporation proposes to do business and the names oi the counties in wnich the^^ are situated;, under the provisions ot seeiions 19257 to 1941, inclusive, of the Wisconsin statutes. Ihe name of such cor- poration shall be the (give name at length; The ohicers shall be a board of directors. . . . (insert number, not less than live nor more than eleven), a president, secretary and treasurer and such others as may be provided for in the by-laws of such corpora- tion, and the office of such corporation shall be in the town from which said directors shall elect their secretary, in the county of The following named persons shall constitute the first board of directors and shall hold their re- spective offices for one year and until their successors are elected (here insert the names). In witness whereof we have hereunto subscribed our names, this day of A. D. 190 1927 (S) (Ch. 31, 1909, in effect April 2, 1909.) Articles of organization; amendment; filing; recording. 3. Such articles of organization shall be subscribed by at least tw^enty-five persons, residents of the towns therein named, who are owners of at least twenty-five thousand dollars' worth of property which shall be insured by such corporation. * * * a. Two copies of the original articles, each accompamed hy the affidavit of two of the signers thereof stating that they are personally acquainted with the signers and know them to he the owners of property to the amount stated in said articles, which may he insured for said sum, and that such copy is a true and complete copy of the original' articles of organization, shall he forwarded to the commissioner of insurance, and if approved hy him and the attorney-general, the former shall file one copy in his office and attach to the other copy his certificate of such filing. Such certified copy shall within thirty days he recorded in the office of the re,gister of deeds of the county in which the greater numher of the directors named in so/id articles reside. The register of deeds shall forthwith trans- mit to the commissioner of instance his certificate stating the time and place when such copy was recorded, and shall he entitled to a fee of twenty-five cents therefor to he paid hy the person presenting the same for record. Upon the receipt of such certificate the commissiotier of insurance shall issue a certificate of incorporation. h. Thereupon the persons subscribing said articles, and 49 TOWN MUTUALS. 1927 such as shall afterwards become insured thereby, shall be a corporation by the name mentioned in said articles with the usual powers and subject to the usual duties and liabilities of a corporation for tlie purpose hereinafter mentioned. c. ike articles of organization may be atnended by a resolu- tion adopted by four-fijtiui of the votes_ cast at any annual or special meeting. A notice reciting the proposed amendment bfiall be given by mail to the members at least thirty days prior to the adoption of any such amendment. The secretary shall give such notice upon request therefor by ten or more members, within ten days after the adoption of such amendment two copies thereof and the minutes sJwwing the vote by which adopted, and of tlie affidavit of the secretary of the mailing of such notive, verified as such oy the affidavit of the president and secretary shall be forwarded to the commissioiner of in- surance, and if approved by him and by the attorney-general, the former shall file one copy in his office and attach to the other copy his certificate of such filing. Such certified copy shall be recorded as provided for the articles of organization and a like certificate made by tJie register of deeds. 1927 (1898, ch. 202, 1901; ch 439, 1907.) Name. 4. The words "Town Insurance Company" shall form part of the name of every such corporation hereafter organized, and no corporation not organized under this section shall be entitled to use a name embodying said words, except that cor- porations now existing may continue their present names. Change of name. 5. Corporations organized under this section may change •their name to conform thereto. Division of towns. 6 The subsequent division of the territory of the towns mentioned in the articles into new towns shall not impair any power, duty or liability of such corporation. Copies furnished commissioner. 7. A copy of the articles, by-laws, policy, and of each blank used by any such company shall be furnished to and filed and preserved by the commissioner of insurance. Section 1927 is referred to in sections 1941a-3, 1946n. 4-1. h. 1928 TOWN MUTUALS. 50 1928 (1898, ch. 81, 1901.) iiiiection ana ciasaincation ol directors. {SECTiuJs 19z8. ine airecturs, suusequeiit to the tirst board shall be chosen by ballot at tne annual meeting oi the cor- poration, wliich shall De held on the tirst Tuesaay alter tne ilrst Monaay u± January, unless some other day be hxed theretor by a majority ot votes of such corporation; and every person insured shall have one vote lor each two hundred dol- lars for which he is insured, sa such election and in the trans- action of all other business of the corporation. But no per- son shall vote by proxy except women, and no person shall have the right to vote more than one proxy. The corporation may, by a two-thirds vote at any annual meeting, adopt a reso- lution providing that its board of directors shall consist of nine persons; that they shall be divided into three classes of three persons each, and be designated as the first, second and third classes. Thereafter the directors of the first class shall be elected for one year, those of the second class for two and those of the third class for three years, and in each case until their successors are qualified, and thereafter all elec- tions shall be for three years, except that vacancies shall be filled for the unexpired term. 1929 (1898, ch. 168, 1899.) Directors' terms; officers; records; place of meeting. Section 1929. The directors shall, unless the corporation otherwise direct, in accordance with the preceding section hold their office for one year and until their successors are elected. They shall choose from their number a president, secretary and a treasurer, the latter of whom may be chosen from members of the company, and keep a record of all their proceedings in a book kept for that purpose, together with the names and places of residence of all presons insured and the amount for which each is insured, which shall be open for in- spection of all members of the corporation from nine o'clock in the forenoon to four o'clock i^ the afternoon of such days of each week as may be determined by its annual meeting. The board of directors may change the place of the annual meeting of the corporation to any town inside the boundary of its corporate limits notwithstanding its by-laws may des- i;,nate some particular town as the place for holding such meeting. 51 TOWN MUTUALS. 1930 1930 Treasurer's bond. Section 1980. Tho treasurer, before entering upon the duties of his office, shall execute to such corporation and file with the secretary a bond conditioned for the faithful dis- charge of the duties of his office, with two or more securities in such sum, not less than five thousand dollars, as the directors may order, such bond and sureties to be approved by the presi- dent and a majority of the directors. 1931 (1898, ch. 352, 1903; ch. 36, 1905; ch. 442, 1907.) Location of risks. Section 1931. 1. Xo such corporation shall insure any property out of the town or towns in which it is located ; pro- vided that it may, at its annual meeting, authorize its direct- ors to insure any farm property or detached dwelling house and contents in any adjoining city or village, town or towns or in any city or incorporated village which is located in such town or towns. 1931(2) (1898, ch. 353, 1903; ch. 36, 1905; ch. 442, 1907; ch. 99, 1909, in effect May 11, 1909.) Risks; kind; single, maximum. 2. No such corporation shall insure any property other than detached dw^ellings and their contents, farm buildings and their contents, live stock in possession, u>:e or running at large, farm products on premises and farming tools, implements and machin- ery; * « * providing that it may, wJien its directors shall Ik so authorized at any annual meeting, insure property in any of the following classes, in an amount not exceeding thirty-five hundred' dollars on any si)igle risk, towit: (1) country stores * *. (5) school houses * *■ *. (5) town and society halls * *, (4) churches * * =* (,/}) country hotels * * *^ I 6) water mills * '* *, (7) blacksmith shops, (8) cheese fac- tories ^ * *^ (p) creameries, and * * * the contents of tiny such hiiildings. * * * May assume cyclone risk, when. 3. And it may at such time authorize its directors to insure nny of the classes of property herein mentioned against damage or loss by wnnd storms, cyclones and tornadoes, under the same rules and restrictions as relate to insurance by it against dam- ; 're or loss by fire; provided, that a request in writing, signed by ;it least ten members of the corporation, be filed with the secre- 1931a TOWN MUTUALS. 52 tary at least thirty-five days before the next annual meeting of the corporation requesting that the question of insuring against damages or loss by wind storms, cyclones and tornadoes be sub- mitted at such meetings, and that the secretary give thirty days' notice by mail to each member of the corporation at his post- office address, that said question will be submitted at such meet- ing. Section 1931 is referred to in sections 1932, 1941a-3. 1931a (Ch. 153, 1909, in effect May 19, 1909.) Reinsurance. Section 1. Section 1931a of the statutes is amended to read: Section 1931a. Any such corporation may, at any annual meet- ing or special meeting thereof convened for that purpose, author- ize its board of directors to effect reinsurance in some other town insurance company of this state, doing business in the same or adjoining territory and in like manner to re-insure similar risks of any other such corporation. Terms of policies; approval of form. Section 1932. The board of directors may issue policies signed by the president and secretary, agreeing in the name of the corporation to pay to the insured all loss or damage of and to the property mentioned and described therein w^hich may be occasioned by either of the causes mentioned in sec- tion 1931, and providing for such conditions of insurance as may be deteiii^ined by the by-law^s of such corporation or by the resolutions of its annual meeting ; but no such corporation shall make or execute any policy until the blank form for the same shall have been submitted to and approved by the com- missioner of insurance ; provided, that no such company shall be required to use the standard policy; and the said board or a committee of not less than three, at least tv^o of v^hom shall be directors, or the corporation may classify the property in- sured at the time of issuing policies thereon under different rates, corresponding as near as may be to the greater or less risk M^hich may attach to such property. 1933 Liabilities of members. Section 1933 Every person to vrhom any such policy is issued shall be deemed a member of such corporation, and shall give his undertaking, bearing even date vrith such policy 53 TOWN MUTUALS. 1934 binding himself, his heirs, and assigns to pay his pro rata share to the. corporation of all losses or damages which may be sustained by any member thereof, and of its necessary business expenses, together with all legal costs and charges incurred in case legal proceedings are commenced to collect any assessment made upon him; and every such undertaking shall, within ten days after its acceptance, be filed in th3 office of the secretary and shall remain on file in such office except when required to be produced in court as evidence. He shall also at the time of effecting such insurance, pay such percentage in cash and such reasonable sums for a policy as may be required by the rules or by-laws. 1934 Notice and adjustment of loss. Section 1934. Every member of such corporation who may sustain loss or damage from any cause insured against shall immediately notify the president, or in his absence the secre- tary thereof, who shall forthwith convene the directors, whose duty it shall be when, so convened to appoint a committee of not less than three nor more than five members of such cor- poration, except in case the loss is supposed to be less than three hundred dollars when the president and secretary may appoint such committee, to ascertain the amount of such loss or damage ; provided, that when any loss or damage does not exceed one hundred dollars the president and secretary may in their discretion, adjust the same without the appointment of any such committee; and provided further, that the board of directors may appoint a committee of not less than three members of the corporation for the adjustment of all losses that may occur during the year; and in case of the inabilities of the parties to agree upon the amount of such loss or dam- ages the claimant may appoint one disinterested person on his part, and upon receiving notice from such claimant of such appointment the president of the corporation shall forthwith appoint a member of such corporation, and the two persons so appointed shall forthwith proceed to appoint a thirkj per- son who shall be disinterested, and the three persons so ap- pointed shall constitute a committee of reference, who shall have full authority to examine witnesses and determine all matters in dispute, and shall make their award to the presi- dent, or in his absence to the secretarv of such corporation which award thereon shall be final. The said committee of reference shall each be allowed two dollars per day for each 1935 TOWN MUTUALS. 54 day 's service so rendered and five cents per mile for each mile necessarily traveled in the discharge of such duties, which shall be paid by the claimant, unless the award of said com- mittee shall exceed the sum offered by the corporation in liquidation of such loss or damage, in which case the said expense shall be paid by said corporation. Before entering upon their duties each member of said committee shall be duly sworn to faithfully and impartially discharge the duties thereof. The secretary of any such corporation may admin- ister any oaths and take any acknowledgments necessary to adjust claims against his company; provided, that he shall receive no compensation for such service. Section 1934 is referred to in sections 1941a-3, 1941-8. 1935 (1898, ch. 457, 1907.) Assessments; notices; fees; neglect to pay; borrowing moneys. Section 1935. "Whenever the amount of any loss so ascer- tained shall exceed the amount of the cash funds of the cor- poration the president shall convene the board of directors, who shall make an assessment upon all property insured by it in proportion to the amount thereof and the rate under which it may have been classified sufficient at least to pay such loss; provided, that such board may assess up to three and a half mills even if such loss should not require such an amount, and when such assessment shall have been completed the secretary shall immediately insert a notice in one or more newspapers printed in the county or counties where such a corporation is doing business, stating therein the time when such assessment was levied and the time when the same be- comes due, such notice together with the proof of the publi- cation thereof shall be conclusive evidence of notice of such assessment to every member of the corporation; the secretary shall also notify every such member and the morteragee or raortgaerees to whom the insurance of any such member may be made pavable by letter or^^postal card sent to his usual Dost office address, 'of the amount of such loss, and the sum due him from his as his share thereof, and the time when and to whom pavment thereof is to be made, which time shall not be less than thirtv nor more than sixtv davs from the date of snr^h notice. The treasurer or person desiomated to receive «jnr'h monev mav demand and receive two per cent in addi- tion to the amount of each such assessment for his fees in receiving and paving over the same. ??uch assessment, when 55 TOWN MUTUALS. 1936 collected shall be paid to the person entitled thereto according to the terms of the policy issued to him ; provided that if any loss shall occur duing the first eight months in any year the board of directors, at the time of making the assessment there- for may borrow money sufficient to pay the same at a rate of interest not exceeding eight per cent, and shall therein include such interest in the assessment and direct the payment of such assessment to be made not later than the thirty-first day I of December next following. Every member who shall neglect. ^or refuse to pay such assessment at the time specified in the notice sent to him, shall pay to such corporation a fine of two I per cent, of the amount of such assessment for each w^eek or t part thereof during which the same shall remain unpaid, and ^ no payment shall be made by .any company upon the policy of any member, hereafter written, who shall sustain a loss ^ if such member at the time of such loss, shall be in default i- and shall have neglected or refused to pay such assessment at the expiration of thirty days from the time specified in said i notice sent to him. f f 1936 ActioEs to collect; directors' liability. Section 1936. An action at law may be brought against . any member of such corporation who shall refuse or neglect to pay any such assessment made upon his insured property The directors of any such corporation who shall wilfully neg- ^ lect or refuse for thirty days to perform the duties imposed ^ upon them cither in this or the next preceding section shall be P jointly or severally liable in their individual capacity to the person sustaining such loss. 1937 (1898; ch. 169, 1899.) ' Withdrawal of members; cancella^i?n of policies. Section 1937. Any member of such corporation may with- draw therefrom at any time by returning his policy with a re- ((uest for its cancellation written thereon or by a notice in writing over his own signature properly witnessed (one wit- , ness) to the president or in his absence to the secretary thereof. ■' and pavine: his share of all claims then exist^ins: against said corporation. And the directors, or a majority thereof or such ind so many of them as thev may have appointed as a com- 1^'it^^ee for such purpose shall have power to annul any pol- icy by giving notice in writing to that effect to the holder thereof. 1938 TOWN MUTUALS. 56 1938 Secretary and treasurer's report. Section 1938. The secretary of every such corporation shall annually prepare a statement showing' its condition on the 31st day of December preceding its annual meeting, which shall contain the names of all persons then insured, the amount insured by each policy, the whole number of policies issued, the whole number then in force, the aggregate amount then insured and the aggregate amount of each class of insured property, the amount of losses paid during the year, the whole amount of losses paid, and the whole amount insured by the corporation since its organization, the amount of losses sus- tained and unpaid, if any, and all such other matters per- taining to its interest as by the by-laws he may be required to report upon. The treasurer of every such corporation shall annually prepare a statement of its financial condition on the 31st day of December preceding its annual meeting showing amount on hand January 1 preceding, amount received during the year from premiums, amount received from assessments Nos. , amount received from any other sources, amount paid for losses, amount paid for expenses , giving a detailed statement of every item of expenses, and amount of cash on hand. Such statements or so much thereof as said corpora- tion, at its annual meeting, may, by resolution or otherwise, agree upon shall be read to the members at such meeting and entered at length upon the records; and within fifteen days after such meetinsr shall be filed in the office of the clerk of the county in which such corporation has its office and cer- tified copies thereof transmitted to the commissioner of in- surance. Section 1938 is referred to in 1941a-3, 1941-12. 1939 Non-resident members. Section 1939. A non-resident of any town, owning insur- able property therein, may beconre a member of any such cor- poration authorized to insure property in such town and shall be entitled to all rights and privileges of such member. 1940 (Ch 31, 1909, in effect April 2, 1909.) Risks; territory; amendment to articles; exception. Section 1940. Any such corporation * * * m^y attach any adioining town or towns as part of its territory m which it may thereafter do business; provided the town or towns so at- 57 TOWN MUTUALS. 1941 1 ached, together with those already within its jurisdiction, shall not exceed * * - thirty, except in cases where all such towns shall be within the same county. No town or towns shall be so attached except by mnendnient to the articles of organiza- tion * * * J provided nothing herein contained shall affect any company already doing business outside of the county in which it is organized. 1941 Authority of existing companies ; new towns, how brought in. Section 1941. All town insurance corporations heretofore organized under any law^ shall be deemed to be organized under and governed by the provisions of the laws of this state; and such existing corporations shall, without reorganization, be authorized to insure in such towTi or towns as they may have heretofore effected insurance in, not exceeding in all twenty ad- joining tow^ns; but each such corporation desiring to extend its territory beyond the town or towns in which it w^as originally organized shall, within six months after the adoption of these statutes, file in the office of the county clerk of the county in which its office is located a declaration signed by its president and secretary and duly acknowledged by them naming the town or towns in which it has heretofore transacted the business of in- surance and declaring its intention to continue its business in such to\\'ns thereafter. 1941a^l (Ch. 130, 1909, in effect May 14, 1909.) Town reinsurance mu;;uals, organization. Section 1941a — 1. Any number of town mutual fire insur- ance companies organized under the laws of this state, not less than nine in number, who collectively carry fire insurance risks aggregating not less than ten million dollars may form them- selves into a corporation for mutual re-insurance against loss or damage by fire or lightning. 19418^2 (Ch. 130, 1909, in effect May 14, 1909.) Members ; representative. Section 1941a — 2. Any town mutual fire insurance company may, at its annual meeting, or at a special meeting called for that purpose, by resolution duly adopted, vote to become a mem- ber of a re-insurance corporation to be organized under this chap- ter. The secretary, or in case of his inability the president, of such town company shall thereupon be authorized to represent 1941a— 3 TOWN REINSURANCE MUTUALS. 58 such town company in forming and organizing such re-insur- ance corporation; and shall in all matters represent such town company in said re-insurance corporation. 1941a,— 3 (Ch. 130, 1909, in effect May 14, 1909.) Directors; risks. Section 1941a — 3. The affairs of said re-insurance corpora- tion shall be managed by a board of nine directors who shall be chosen by the representatives of the town companies composing such re-insurance corporation from among their number. Such re- insurance corporation shall have power to re-insure the risks of any of the town mutual fire insurance companies composing such re-insurance corporation ; and such town mutual fire insurance companies are authorized to effect re-insurance of their risks in said re-insurance corporation. The provisions of sections 1927 to 1941, inclusive, of the stat- utes, together with all amendments at any time made thereto, shall, so far as applicable, apply to the organization, manage- ment, powers, rights, privileges, duties, and burdens of such re- insurance corporation, and the members thereof, and the rela- tions of such members with each other and with such re-insur- ance corporation, and the manner of withdrawal of members therefrom. 1941a^-4 (Ch. 130, 1909, in effect May 14, 1909.) Members; town mutuals. Section 1941a — 4. After any re-insurance corporation shall have been duly organized under the provisions of this chaptei, any town mutual fire insurance company may become a mem- ber thereof whenever such town insurance company shall, at its annual meeting, or at any special meeting called for that pur- pose, vote to apply for insurance in such re-insurance corpora- tion ; and when such application for insurance shall be accepted and approved as provided by the by-laws of said re-insurance corporation, such town mutual fire insurance company shall thereupon be a member of said re-insurance corporation. 1941g (Ch. 460, 1909, in effect June 19, 1909.) Domestic companies repeal; domestic stock and mutual companies. Section 1941g. 1. (a) Sections 1896, 1897, 1898, 1899, 1900, 1901 and 1907, of the statutes, relating to domestic fire and marine insurance companies, are repealed. (b) Sections 1941a, 1941b, 1941c, 1941d, 1941e, and 1941f, of the statutes, relating to millers' mutuals, are repealed; 59 DOMESTIC COMPANIES, REPEAL, BY-LAWS. 1941g (c) Sections 1941—1, 1941— la, 1941—3, 1941—8 and 1941 — 18 of the statutes, relating to village mutuals, are re- pealed ; (dj Sections 1941—14, 1941—15, 1941—16, 1941—17, 1941—18, 1941—19, 1941—20, 1941—21 and 1941—22 of the statutes, relating to druggists' mutuals, are repealed j (e) Sections 1941— 22a, 1941— 22b, 1941— 22c, 1941— 22d, 1941— 22e, 1941-221, 1941— 22g, 1941— 221i and 1941—221 of the statutes, relating to plate glass mutuals, are repealed; (f) Sections 1941—23, 1941—24, 1941—25, 1941—26, 1941 —27, 1941— 27a, 1941—28, 1941—29, 1941—30, 1941—31 and 1941 — 32, of the statutes, relating to church mutuals, are re- pealed ; (g) Sections 1941—33, 1941—34, 1941—35, 1941—36, 1941 —37, 1941—38, 1941-39, 1941—40 and 1941—41 of the stat- utes, relating to lumber dealers' mutuals, are repeoled; [h) Sections 1966—2, 1966—3, 1966—4, 1966—5, 1966—6, 1966—7, 1966—8, 1966—9, 1966—10, 1966—11 and 1966—12 of the statutes, relating to hail and cyclone mutuals, are re- pealed ; (i) Sections 1966—13, 1966—14, 1966—15, 1966— 16, 1966— 17, 1966—19, 1966—20, 1966—21, 1966—22, 1966—23, and ^^)66 — 24 of the statutes, relating to live stock mutuals, are repealed ; (j) Sections 1966—25, 1966—26, 1966—27, 1966—28, 1966— 29, 1966—30, 1966—31, and 1966— 31a of the statutes, relat- ing to domestic casualty companies, are repealed; (k) Sections 1966—41, 1966—43, and 1966^9 of the stat- utes, relating to casualty companies, are repealed; (1) Sections 1966—50, 1966—51, 1966—52, 1966—53, and 1966 — 54 of the statutes, relating to live-stock business mu- tuals, are repealed; (m) Sections 1966—61, 1966—62, 1966—63, 1966—64, 1966 —65, 1966—66. 1966—67, 1966—68, 1966—69, 1966-^70, and 1966 — 71 of the statutes, relating to bicycle mutuals, are re- pealed. (n) Sections 1966—81, 1966—82, 1966—83, 1966—84, 1966 —85, 1966—86, 1966—87 and 1966—88, of the statutes, re- lating to bankers' casualty mutuals, are repealed. By-laws. 2. From and after the repeal of the foregoing sections, the said sections shall be considered as a part of the by-lavrs of the respective corporations heretofore organized now doing business under the provisions of said laws, and such by-laws 194111 DOMESTIC COMPANIES, DURATION. 60 shall remain in force except as hereby or hereafter changed by law or by amendment hereafter adopted to the by-laws by such corporation. Amendment of by-laws. 3. When no other provision is made for the amendment of the by-laws of such corporation, such by-laws may be amended in the manner provided in paragraph (b) of subsection 1 of section 1897c. Term of duration, limitations removed. 4. Every insurance corporation heretofore organized and now doing business under the provisions of any law of this state is continued without any limitation whatever upon the duration of its corporate existence, notwithstanding any lim- itation heretofore imposed by law or incorporated into its articles of organization. 1941n (Ch. 63, 1909, in effect April 24, 1909.) Term of duration; validating provisions; filjng articles. Section 1941n. Any town insurance company organized, or attempted to be organized under the provisions of section 1927 to 1941 inclusive of the statutes, or the acts of which said sections are amendatory, if doing business as such cor- poration at the time of the taking effect of this act, notwith- standing the term of duration of its corporate existence has expired, the invalidity of any amendment to its articles of organization, or any provision or provisions of law may not have been complied with in such organization, shall be held and considered to be a corporation duly organized and exist- ing under the sections of the statutes aforesaid, and the term of duration of any such corporation is hereby extended with- out any limitation whatever; all provided, that the said cor- poration shall file with the commissioner of insurance a copy of its articles of organization and any amendments thereto, duly verified as such by the affidavit of its president and sec- retary, and within thirty days after such filing, record a copy thereof, duly certified by the commissioner of insurance, in the office of the register of deeds of the county in which the home office of said corporation is located. Thereupon all acts of such corporation are validated. Any limitation of the term of duration of any corporation organized under the sec- tions of the statutes aforesaid, whether prescribed by statute or in the articles of organization or any amendment thereto 61 CITY AND VILLAGE MUTUALS. 1941—2 is hereby abrogated and such corporation shall continue with- out any limitation of its term of duration. CITY AND VILLAGE MUTUALS. 1941—2 (1898; ch 459, 1909, in effect July 1, 1909.) City and village mutuals, meeting, annual; vote; proxy. Section 1941 — 2. Unless otherwise provided by the consti- tution or by-laws of any city and village mutual fire insurance company^ the directors, subsequent to the first board, shall be cliosen by ballot at the annual meeting which shall be held on the * * third Monday of January of each year, unless some other day be fixed therefor by a majority of the votes of such corporation. Every person insured shall have one vote at such election ; and the transaction of all other business, except as otherwise provided by law, may be determined viva voce or by ballot as the by-laws or other rules and regulations prescribe. ::= * * No person shall vote by proxy except women, and no person shall cast more than one proxy vote. 1941—4 Treasurer's bond. Section 1941 — 4. The treasurer, before entering upon his duties, shall execute to such corporation and file with the secre- tary a bond conditioned for the faithful discharge of his duties, with two or more sureties, in such sum as the directors may order, such bond and sureties to be approved by the president and a majority of the directors. 1941—5 (1898; ch. 69, 1901; ch. 93, 1903; ch. 459, 1909, in effect July 1, 1909.) Risks ; territory ; single ; term. Section 1941 — 5. Such corporations may insure property * * located anywhere in this state, but in no case shall any * * * .single risk exceed fifteen hundred dollars ($1,500), * * * except that aiiy such corporation haviyig a surplus may insure a single risk in an amount not exceeding one-eighth of one per centum of the insurance in force, nor ten per centum of the surplus, nor to exceed three thousand dollars on any sin- gle risk. No policy shall he issued for a term of more than three years. 1941—6 Policies; approval of form; classification of risks. Section 1941 — 6. The board of directors may issue policies signed by the president and secretary, agreeing in the name of ^ 1941—7 CITY AND VILLAGE MUTUALS. 62 the corporation to pay the insured all loss or damage of and to the property mentioned and described therein to the amount named therein, which may be occasioned by fire or lightning within the period named in said policy, which in no case shall be more than three years, and providing for such conditions of insurance as may be determined by the constitution and by-laws, or the resolutions of the annual meeting; but no policy shall be made or executed until the blank form therefore shall have been submitted to and approved by the commissioner of insurance; provided, that no such company shall be required to use the standard policy. The said board, a committee of not less than three, at least two of whom shall be directors, or the corporation may classify the property insured at the time of issuing policies thereon under different rates corresponding, as near as may be, to the greater or less risk which may attach to the several build- ings or property insured. See notes to section 1932. 1941—7 (1898; ch. 25, 1899; ch. 196, 1905; ch. 521, 1909, in effect June 19. 1909.) Members; liability; contingent fund. Section 1941 — 7. Every person to whom any such policy is issued shall be deemed a member of such corporation while such policy is in force, and it shall be lawful for such corporation to require the payment of such premiums, * * * make as- sessments upon its members, and enforce the collection thereof as circumstances may require and as may be specified in its con- stitution or by-laws or fixed by resolution ; and the members thereof shall be subject to such other duties as may be prescribed by the by-laws. Such corporations may accumulate a contingent fund consisting of the premium receipts each year w^hich are not renuired to pay the losses and expenses of the corporations, which constitute the balance at the close of the year. Such fund shall be limited to an amount not to exceed ten per cent, of the amount of insurance in force and; shall be used for the payment of losses, actual expenses, and return premiums for the current year only. 1941— 7m (Ch 521. 1909, in effect June 19, 1909.) Policy fees; limitation; report. Section 1941 — 7m. No such corporation shall charge or col- lect or permit to bf» charged or collected any fee in excess of the premium so renuired to be paid, provided that any such cor- poration may by its by-laws require all of its members to pay 63 CITY AND VILLAGE MUTUALS. 1941—9 in addition to theiF premium a policy fee of not to exceed $1.50 i)ii each policy issued, such policy fee when so fixed to be col- h^eted with and as part of the amount paid by each member for each policy. Such policy fee shall be accounted for in the same manner as the other receipts and disbursements of such corpora- tion. 1941—9 (1898; ch. 459, 1909, in effect July 1, 1909.) Assessments; notice; borrowinj money. Section 1941 — 9. Whenever the amount of any loss * * * shall exceed the amount of the cash funds of the corporation, the president, or in his absence, the vice-president shall convene the board of directors, who shall make an assessment upon all ])roperty insured in proportion to the amount thereof and the rate under which it may have been classified, sufficient at least to pay such loss ; provided that such board may assess up to four mills even if such loss should not require such an amount. Wheneven such assessment shall have been completed, the secre- tary shall immediately cause to be published for three consecu- tive weeks in such weekly newspaper, printed within the city or village, if any, in which the office of such company is located, otherwise in such newspaper printed within the county as the board of directors may desii^nate. a notice stating the time when such assessment was levied and the time when the same be- comes due ; said notice, together with the proof of the publica- tion thereof, shall be conclusive evidence of notice of such as- sessment. * * * Qr fJiQ directors may, for the purpose of paying losses ivithin the limit hereitrnfter specified-, horrow a sum not exceeding one- fourth of the premium and interest in- ( ome of the company for the preceding year for a time not ex- < reding six months at a rate ef interest not exceeding seven per ci.nt., and may, on or before the maturity of such loan, levy an assessment upon the members at the time of the making of such loan, for the payment of the same and interest. No such loan shall be renewed. Within * * * thirty days after the levy- ing of such assessment the secretaiy shall notify every member by letter or postal card, sent to his usual postoffice address, of tlie amount of such assessment, and the sum due from him as his share thereof, and the time within w^hich and to whom payment is to be made, which time shall not be less than * * * thirty Tior more than * * * sixty days from the date of such notice. * * * jf f^e assured neglect. to make payment of any assessment within the time specified in the notice sent him his policy shall be null and void until such assessment is paid, and also his pro rata share of all other assessments which may 1941— 9m CITY AND VILLAGE MUTUALS. 64 be levied during the suspension of the policy on account of the non-payment of a previous assessment. Section 1941 — 9 is referred to in 1941-10. 1941— 9m (Ch. 274, 1909, in effect June 4, 1909.) Assessment; notice; omission; validation. Section 1941 — 9m. Whenever the secretary shall have omitted or neglected for more than five days to notify every member of an assessment as herein provided, such notification thereafter and within one year shall, nevertheless, be lawful, provided it otherwise comply with this section and the time for payment be fixed in such later notice at not less than sixty nor more than ninety days from the date of such notice as the board of directors shall then determine. Any assessment made prior to January 1, 1909. in which a bona fide attempt has been made to comply with this section is hereby validated. 1941—10 (1898; ch. 459, 1909, in effect July 1, 1909 ) Assessmen*;s ; action; directors* liability. Section 1941 — 10. An action at law may be brought against any member of such corporation who shall refuse or neglect to pay any assessment made upon his insured property, and the directors of any such corporation who shall wilfully neg- lect or refuse for thirty days to perform the duties imposed upon them by * * * section 1941 — 9 shall be jointly and severally liable in their individual capacity to the persons sustaining such loss. 1941—11 (1898; ch. 459, 1909, in effect July 1, 1909.) Withdrawal ; cancellation. Section 1941 — 11. * * * J.^7/ policy may he cancelled as provided in section 1941 — 52, upon the payment by such mem- ber of his portion of all the liabilities outstanding at the time of such cancellation, and the liability on the part of such member on such policy shall cease. 1941—12 (1898; eh. 459, 1909, in effect July 1, 1909.) Reports. Section 1941 — 12. The president and secretary * * * i of every such <>orporation shall, on or before the first day of February in each year, * * * make such * * * report as * * * may be required * * * by the commissioner of insuranc^^i , 65 STANDARD FIRE POLICY. 1941—42 County asylum companies. The provisions relating to 'county asylum companies are found in ch. 128, 190P) and sections 1941— 13a to 1941— 13n, inclusive. No such corporation has been organized in this state. Sections 1941— 14m (ch. 4, 1909) and 1941— 14t (ch. 52, 1909) are not specifically repealed by ch. 460, 1909, section 1941g, but as the objects of these sections can be effected under ch. 460, 1909, sections 1896 to 1901n, the same are omitted. School district mutuals. The law relating to school district mutuals is contained in chapter 373, 1905, sections 1941— 32a to 1941— 32o inclusive. No such corporation has been organized in this state. STANDARD FIRE INSURANCE POLICY. 1941—42 1"^ Commissioner to provide printed form. Section 1941 — 42. The commissioner of insurance shall pre- pare and file in his office immediately after these statutes take effect a printed form in blank of a policy of fire insurance containing the provisions, agreements and conditions specified in the following sections, omitting section numbers from the printed policy; and such form shall be known as the STANDARD FmE INSURANCE POLICY. 1941—43 Formal part. Section 1941—43. No. . $ . in consideration of the stipulations herein named and of dollars premium does insure for the term of from the day of , 18 — , at noon, to the day of , 18 — , at noon, against all direct loss or damage by fire, except as herein after provided, to an amount not exceed- ing dollars to the following described property while lo- cated and contained as described herein and not elsewhere, to- wit: Sections 1941-42 to 1941-63 is referred to In sees. 1941-63, 1941-64. 5-1. L. 1941—44 STANDARD FIRE POLICY. 66 1941—44 Liability; appraisement; repairs. Section 1941 — 44. Except when otherwise provided by- statute this company shall not be liable beyond the actual cash value of the property at the time any loss or damage occurs and the loss or damage shall be ascertained or estimated ac- cording to such actual cash value, with proper deduction for depreciation however caused, and shall in no event exceed what it would then cost the insured to repair or replace the same with material of like kind and quality; said ascertain- ment or estimate shall be made by the insured and this com- pany, or, if they differ, then by the appraisers as hereinafter provided ; and the amount of loss or damage having been thus determined the sum for which this company is liable pursuant to this policy shall be payable sixty days after due notice and proof of the loss have been received by this company in ac- cordance with the terms of this policy. It shall be optional, however with this company to take all or any part of the articles at such ascertained or appraised value, and also to re- | pair, rebuild or replace the propertv lost or damasred with other of like kind and quality within a reasonable time on srivinsr notice within thirtv days after the receipt of the proof herein reauired by (of) its intention to do so; but there can be no abandonment to this company of the property described. ■'I 1941—45 1 CorcpaTnifiiit: fraud. Section 1941 — 45. This entire policv shall be void if the I insured hath concealed or misrepresented, in writing or other- | wise, any material fact or circumstance concerning this in- I surance or the subiect thereof; or if the interest of the insured in the property be not truly stated herein, or in case of any fraud or false swearing by the insured touching anv matter relating to this insurance or the subject thereof, whether be- fore or after a loss. See section 4202m. 1941—46 (1898; ch. 316, 1899.) Other insurance ; increase of risk. Section 1941 — 46. This entire policy unless otherwise pro- vided by agreement endorsed hereon or added hereto, shall be void if the insured now has or shall hereafter make or pro- cure any other contract of insurance whether valid or not, on property covered in whole or in part by this policy; 67 STANDARD FIRE POLICY. 1941—46 Or if the subject of insurance be a manufacturing estab- lishment and it be operated in whole or in part at night later than ten o'clock; Or if it cease to be operated for more than ten consecutive days; Or if the hazards be increased by any means within the con- trol or knowledge of the insured; Or if mechanics be employed in building, altering or repair- ing the within described premises for more than fifteen days any one time; Or if the interest of the insured be other than unconditional and sole ownership; Or if the subject of insurance be a building on ground not owned by the insured in fee-simple; Or if the subject of insurance be personal property and be or become incumbered by a chattel mortgage ; Or if, with the knowledge of the insured, foreclosure pro- ceedings be commenced of notice given of sale of any prop- erty covered by this policy by virtue of any mortgage or trust deed; Or, if any change, other than by the death of an insured, take place in the interest, title or possession of the subject of insurance except change of occupants without increase of hazards, whether by legal process or judgment or by volun- tary act of the insured or otherwise; Or if this policy be assigned before a loss ; Or if illuminating gas or vapor be generated in the de- scribed building (or adjacent thereto) for use therein; Or if, any usage or custom of trade or manufacture to the contrary notwithstanding, there be kept, used or allowed on the above described premises benzine, benzole, dynamite, ether, fireworks, gasoline, greek fire, gunpowder exceeding twenty-five pounds in quantity, naphtha, nitro-glycerine or other explosive, phosphorous or petroleum or any of its prod- ucts of greater inflammability than kerosene oil of the Wiscon- sin standard, which last may be used for lights and kept for sale accordinsr to law, but in quantities not exceedinsr five barrels, provided it be drawn and lamps filled by daylight or at a distance not less than ten feet from artificial light; Or if a building herein described, whether intended for oc- cupancy by owner or tenant, be or become vacant or unoccu- pied and so remain for ten days, and continuing until the time of the fire. * . See section 4202m. 1941—47 STANDARD FIRE POLICY. 68 1941—47 (1898; ch. 525, 1907.) Risks not assumed; lightning covered; other insurance. Section 1941 — 47. This company shall not be liable for loss caused, directly or indirectly, by invasion, commotion, riot, insurrection, civil war, or military or usurped power, or by order of any civil authority ; or by theft ; or by neglect of the insured to use all reasonable means to save and preserve the property at and after a fire or when the property is endan- gered by fire in the neighboring premises; or (unless fire en- sue, and, in that event, for the damage by fire only) by explo- sion of any kind. This policy shall cover any direct loss or damage caused by lightning (meaning thereby the commonly accepted use of the term lightning, and in no case to include loss or damage by cyclone, tornado, or windstorm) not ex- ceeding the sum insured, nor the interest of the insured in the property, and subject in all other respects to the terms and conditions of this policy. If there shall be any other insur- ance on said property this company shall be liable only pro rata with such other insurance for any direct loss by lightning whether such other insurance be against direct loss by light- ning or not. 1941—48 Fallen buildings. Section 1941—48 If a building or any part thereof fall^ except as the result of fire, all insurance by this policy on such building or its contents shall immediately cease. 1941—49 Exemption from liability. Section 1941—49. This company shall not be liable for loss to accounts, bills, currency, deeds, evidences of debt money, notes or securities; nor, unless liability be specifically assumed ■ hereon for loss to awnings, bullion, casts, curiosities, drawings, dies, implements, jewels, manuscripts, medals, models, patterns, pictures, scientific apparatus, signs, store or office furniture or fixtures, sculpture, tools or property held in storage or for re- pairs; nor, beyond the actual value destroyed by fire, for loss occasioned by ordinance or law regulating construction or re- pair of buildings, or by interruption of business manufacturing process or otherwise ; nor for any greater proportion of the value of pi ate CTlas«, frescoes and decorations than that which this policy shall bear to the whole insurance on the building de- scribed. i 69 STANDARD FIRE POLICY. 1941—50 1941—50 Waxranty. Section 1941 — 50. If an application, survey, plan or de- scription of property be referred to in this policy it shall be a part of this contract and a warranty by the insured. See section 4202m. 1941—51 Renewal of policy. Section 1941 — 51. This policy, may, by a renewal, be con- tinued under the original stipulations, in consideration of pre- mium for the renewed term, provided that any increase of hazard must be made known to this company at the time of renewal or this policy shall be void. 1941—52 Cancellation; unearned premium. Section 1941 — 52. This policy shall be cancelled at any time at the request of the insured or by the company by giv- ing five days' notice of such cancellation, unless during a time in which the hazard shall be increased solely by the act of God and in such case and during such time of such increase of hazard the company shall not cancel this policy, except upon sixty days' notice of such cancellation, without the consent of the assured. If this policy be cancelled as hereinbefore pro- vided or become void or cease, the premium having been act- ually paid, the unearned portion shall be returned on sur- render of this policy or last renewal, this company retaining the customary short rate ; except that when this policy is can- celled by this company by giving notice it shall retain only the pro rata premium. 1941—53 Rights of mortgagee. Section 1941 — 53. If with the consent of this company, an interest under the policy shall exist in favor of a mortgagee or of any person or corporation having an interest in the sub- ject of insurance, other than the interest of the insured as described herein, the conditions hereinbefore contained shall apply in the manner expressed in such provisions and condi- tions of insurance relating to such interest as shall be written upon, attached or appended hereto. 1941—54 STANDARD FIRE POLICY. 70 1941—54 Removal of property. Section 1941 — 54. If property covered by this policy be so endangered by fire as to require removal to a place of safety and be so removed, that part of this policy in excess of its proportion of any loss and of the value of property re- maining in the original location shall, for the ensuing five days only, cover the property so removed in the new location; it removed to more than one location such excess of this policy -j shall cover therein for such five days in the proportion that the value in any one such new location bears to the value in all such new locations ; but this company shall not, in any case of removal, whether to one or more locations, be liable beyond the proportions that the amount hereby insured shall bear to the total insurance on the whole property at the time of fire whether the same cover in new location or not. 1941—55 Kotice and proof of loss; examination; books; etc. Section 1941 — 55. If fire occur the insured shall give im- mediate notice of any loss thereby in writing to this company, protect the property from further damage, forthwith separate the damaged and undamaged personal property, put it in the best possible order, make a complete inventory of the same stating the quantity and cost of each article and the amount claimed thereon; and, within sixty days after the fire, unless such time be extended by agreement with the company through the local agent or any other authorized agent or any adjuster acting for such company concerning such loss, shall render a statement to the company, signed and sworn to by said insured stating the knowledge and belief of the insured as to the time and origin of the fire, the interest of the in- sured and of all others in the property, the cash value of each item thereof and the amount of loss thereon, all in- cumbrances thereon, all other insurance, whether valid or not, covering any of said property and a copy of all the descrip- tions and schedules in all policies, any changes in the title, use, occupation, location, possession or exposures of said prop- erty since the issuing of this policy by whom and for what purpose any building herein described and the several parts thereof were occupied at the time of the fire, and shall fur- nish, if required, verified plans and specifications of any build- ing, fixtures of machinery destroyed or damaged, and shall also, if required, furnish a certificate of a magistrate or no- 71 STANDARD FIRE POLICY. 1941—56 tary public residing in the country where the insured prop- erty is located (not interested in the claim as a creditor or otherwise, nor related to the insured) stating that he has ex- amined the circumstances and believes the insured has hon- estly sustained loss to the amount that such magistrate or notary public shall certify. The insured, as often as required, shall exhibit to any person designated by this company all that remains of any property herein described, and submit to examinations, all under oath by any person named by this company, and subscribe the same; and, as often as required shall produce for examination all books of account, bills, in- voices and other vouchers, or certitied copies thereof if origi- nals be lost, at such reasonable place as may be designated by this company or its representative, and shall permit extracts and copies thereof to be made. 1941—56 Appraisement of loss. Section 1941 — 56. In the event of disagreement in the amount of loss the same shall, as above provided, be ascer- tained by two competent and disinterested appraisers who shall be residents of this state unless otherwise agreed by the parties thereto; the insured and this company each selecting one within thirty-live days after the mailing of proof of loss to said company, as herein stated, and in case either party fail to select an appraiser within such time the other appraiser and the umpire selected, as herein provided, may act as & board of appraisers and whatever award they shall find shall be as binding as though the two appraisers had been chosen; and the two so chosen shall first select a competent and dis- interested umpire, provided that if after five days the two appraisers cannot agree on such an umpire the presiding judge of the circuit court of the county wherein the loss occurs may appoint such an umpire upon application of either party in writing by giving five days' notice thereof in writing to the other party. Unless within thirty days after proof of the loss has been mailed to the company, either party, the assured or the company, shall have notified the other in writing that such party demands an appraisal, such right of an appraisal shall be waived; the appraisers together shall then estimate and appraise the loss, stating separately sound value and damage and, failing to agree, shall submit their differences to the umpire; and the award in writing of any two shall determine the amount of such loss; the parties 1941—57 . STANDARD FIRE POLICY. 72 thereto shall pay the appraisers respectively selected by them and shall bear equally the expenses of the appraisal and um- pire. 1941__57 Waiver; loss, when payable. Seotion 1941 — 57. This company shall not be held to have waived, except as above expressly provided for, any provision or condition of this policy or any forfeiture thereof by any re- quirement, act or proceeding on its part relating to the ap- praisal or to any examination herein provided for; and the loss shall become payable sixty days after the notice and proof of the loss herein required have been received by this company. 1941—58 Liability if other insurance; re-insurance. Section 1941 — 58. This company shall not be liable under this policy for a greater proportion of any loss on the des- cribed property or for loss by and expense of removal from premises endangered by fire than the amount hereby insured shall bear to the whole insurance, whether valid or not, or by solvent or insolvent insurers covering such property, and the extent of the application of the insurance under this policy or of the contribution to be made by this company in case of loss may be provided for by agreement or condition written hereon or attached or appended hereto. Liability for re-insuranjce shall be as specifically agreed hereon. 1941—59 Subrogation. Section 1941—59. If this company shall claim that the fire was caused by the act or neglect of any person or corporation private or municipal, this company shall, on payment of the loss, be subrogated to the extent of such payment to all right of recovery by the insured for the loss resulting therefrom and such right shall be assigned to this company by the insured on receiving such payment. 1941—60 Definitions. Section 1941—60. Whenever in this policy the word ''in- sured" occurs it shall be held to include the legal representa- tive of the insured, and whenever the word "loss" occurs it shall be deemed the equivalent of "loss or damage." 73 STANDARD FIRE POLICY. 1941—61 1941—61 Other conditions. Section 1941 — 61. If this policy be made by a mutual or other company having special regulations lawfully applicable to its organization, membership, policies or contracts of insur- ance, such regulations shall apply to and form a part of this policy as the same may be written or printed upon, attached or appended hereto. 1941—62 Waiver; agent's knowledge. Section 1941 — 62. This policy is made and accepted subject to the foregoing stipulations and conditions, together with such other provisions, agreements or conditions as may be indorsed hereon or added hereto, and no officer, agent or other representa- tive of this company shall have power to waive any provision or condition of this policy except such as by the terms of this policy may be the subject of agreement indorsed hereon or added here- \ to, and as to such provisions and conditions no officer, agent or representative shall have such power or be deemed or held to have waived such provisions or conditions unless such waiver, if any, shall be written upon or attached hereto, nor shall any privilege or permission affecting the insurance under this policy exist or be claimed by the insured unless so written or attached. Up to the time of the delivery of the policy to as- sured, in all transactions relating to this policy or to the prop- erty herein insured, between the assured and any agent of the company, knowledge of the agent shall be knowledge of the company; and in all transactions relating to the subject of insurance, between the insured and any agent of the company after loss, knowledge of the agent shall be knowledge of the company. In witness whereof, this company has executed and attested these presents this — day of — , 19 — . 1941—63 Forms. Section 1941 — 63. (Indorsements.) Assignmetit of Interest hy Insured. The interest of as owner of property covered by this policy is hereby assigned to subject to the con- ■ sent of (name of company). Dated . Signature of the insured. 1941—64 STANDARD FIRE POLICY. 74 Note— To secure mortgagees, if desired, the policy should be made payable on its face to such mortgagee, as follows: Loss, if any, payable to John Doe, mortgagee. Consent hy Company to Assignment of Interest. (name of company) hereby consents that the interest of as owner of the property covered by this policy be assigned to Dated . Signature for company. Expires . Property . A'mt $ . Premium $ . No. . It is important that the written portions of all policies cover- ing the same property read exactly alike. If they do not they should be made uniform at once. 1941—64 (1898; ch. 102, 1905; ch. 525, 1907.) • Standard policy required of what companies. Section 1941 — 64. No fire insurance company, corporation or association, except township mutual insurance companies, their officers, or agents, shall make, issue, use or deliver for use any fire insurance policy on property in this state, other than such ,is shall conform in all particulars as to blanks, size of type, context, provisions, agreements and conditions with the printed form of contract or policy so filed in the office of the commissioner of insurance as provided for in sections 1941 — 42 to 1941—63', except that the policy may be printed on paper of a size different from that of the printed form of con- tract or policy filed in the office of the commissioner, of insur- ance, which, however, shall not be less than nine inches in width, and no Other or different provision, agreement, condi- tion or clause shall in any manner be made a part of said con- tract or policy, or be indorsed thereon or delivered therewith except as follows, towit: Other provisions; agent to countersign. 1. The name of the company, its location or place of busi- ness, the date of its incorporation or organization and the state or country under which the same is organized, the amount of paid up capital stock, whether it is a stock or mutual com- pany, the name of its officers, the number and date of the policy, 75 STANDARD FIRE POLICY. 1941—64 and, if it be issued through a manager or agent of the company, the words ''this policy shall not valid until countersigned by the duly authorized manager or agent of the company at /' may be printed on policies issued on property in this state. All policies shall be countersigned by an individual agent. Schedules; conditions. 2. Printed or written forms of description and specifica- tion of schedules of the property covered by any particular policy, and any other matter necessaiy to clearly express all the facts and conditions of insurance on any particular risk (which facts or conditions shall in no case be inconsistent with or a waiver of any of the provisions or conditions of the standard policy herein provided for), may be written upon or attached or appended to any policy issued on property in this state. Other provisions required by law. 3. A company, corporation or association organized or in- corporated under and in pursuance of the laws of this state or elsewhere if entitled to do business in this state, may, with the approval of the commissioner of insurance, if the same is not already included in the standard form as provided for in said sections, print on its policies any provision, which it is required by law to insert therein, if such provisions be not in conflict with the laws of this state or of the United States, or of .the provisions of the standard form provided for herein but any such provision shall be printed apart from the other provisions, asreements or conditions of the policy and in type not smaller than the body of the policy, and under a separate title as follows: ''Provisions required by law to be stated in this policy,'^ and be a part of said policy. Agents name and place of business. 4. There may be indorsed on the outside of any policy herein provided for the name, with the word "agent" or "agents*' and place of business of any insurance agent or agents, either by writing, printing, stamping or otherwise. Joint policies; several liabilities. 5. Where two or more companies (each having previously complied with the law of this state) unite to issue a joint pol- icy there may be expressed in the heading of such policy the fact of the severalty of the contract; also the proportion of premium to be paid to each company, and the proportion of 1941—65 FIRE POLICIES. 76 liability which each company agrees to assume. And in the printed conditions of such policy the necessary change may be made from the singular to the plural number when reference is had to the companies issuing such policy. See next section. 1941—65 Violation of law; bound by contract. Section 1941 — 65. Any insurance company, its officers or agents or either of them, violating any provision of sections 1941—42 to 1941 — 64, inclusive, by making, issuing, deliver- ing or offering to deliver any policy of fire insurance on prop- erty in this state, except as hereinbefore provided, shall be guilty of a misdemeanor and upon complaint made by the com- missioner of insurance or any citizen of this state, shall, upon conviction thereof, be punished by a fine of not less than fifty dollars nor more than one hundred dollars nor more than two hundred and fifty dollars for each subsequent offense; but any policy so made, issued and delivered shall, nevertheless, be binding upon the company issuing the same, and such company shall thereafter be disqualified from doing any insur- ance business in this state. GENERAL PROVISIONS, FIRE INSURANCE. 1942 Policies; contents. Section 1942. Every insurance corporation doing business on the mutual plan shall contain in its name, which shall be upon the first page in every policy or renewal receipt, the word mutual, and if doing business as a cash stock corporation it shall, upon the face of its policies, express that it is a stock policy. 1942—1 (Ch. 555, 1907.) Surplus in domestic fire company; limitation. Section 1942—1. All of the surplus of any domestic mutual fire insurance company doing business on the mutual plan in excess of two per cent, of the total amount of its outstanding fire risks shall be distributed annually pro rata among the members of said company within sixty days after the holding of its annual meeting, provided such total surplus shall equal or exceed three per cent, of the amount of such outstanding risks. 77 FIRE POL.ICIES. 1943 1943 Realty insuraaice; valued policy. Section 1943. AVhenever any policy of insurance shall be written to insure real property and the property insured shall be wholly destroyed, without criminal fault on the part of the insured or his assigns, the amount of the insurance written in such policy shall be taken conclusively to be the true value of the property when insured and the true amount of loss and measure of damages when destroyed. 1943a Policy clauses; cash value, measure of; co-insurance; separate rates; forfeiture. Section 1943a. No fire insurance company doing business in this state shall issue any policy containing any provision limiting the amount to be paid in case of loss below the actual cash value of the property, if within the amount of the insur- ance for which premium is paid, and no such company shall require the use of any so-called co-insurance clause or rider to be attached or made a part of any policy except at the option of the insured, and every such company shall give to every ap- plicant for insurance the rate of premium demanded with and without such clause or rider. The commissioner of insurance, upon evidence furnished to him that any such company has failed when requested to furnish any applicant for insurance such separate rates, shall forthwith revoke the license of said company and all its agents. If any company which violates any provision of this section is incorporated under the laws of this state such violation shall be cause for forfeiting its charter, and the attorney-general shall institute proceedings to have such forfeiture declared. 1943b Rates; combination; local boards of underwriters; for- feiture. Section 1943b. No fire, fire and marine, or marine, and in- land insurance company or association, its agent or representa- tive doing business in this state, shall, either directly or in- directly, enter into any contract, agreement, combination or compact with any other such company or companies or its or their agents or representatives for the purpose of establishing and maintaining a fixed schedule or schedules of rates; pro- vided, that in cities and villages it shall be lawful for the local board of underwriters incorporated under the statutes of this state, and in case of the non-existence of such board therein 19431 DISCRIMINATION. 78 for an association of the local agents in such city or village to, from time to time, establish and maintain rates therein, and for them and such companies represented by them to enter into any lawful contract or agreement to so establish and maintain rates so made; all such schedules shall at all reasonable times be open to the inspection of the insured or any person applying for insurance. The commissoner of insurance shall revoke the license of every such company which violates any provision of this section and shall report such violation to the attorney gen- eral, who shall prosecute the same and every such company shall, for each and every such violation, forfeit five hundred dollars. 14931 (Ch. 159, 1909, in effect May 19, 1909.) Insurance other than life ; discrimination prohibited ; com- panies; agents. ' Section 1943 1. No insurance company doing business in this state, other than a life insurance company, and no agent, officer, or employe thereof, shall offer to pay or allow, or offer or agree to pay or allow, as an inducement to an insurance, any rebate of the premium paid or payable under its policy, or any special favor, advantage, benefit, valuable consideration or inducement whatever not specified in its policy. Any person violating this section shall be subject to sub-section 4, 5, 6, 7 and 8 of section 1955o, of the statutes. 1944 Premium notes; contents; defenses. Section 1944. Every promissory note or obligation, except ordinary notes received in payment of premiums for policies issued on the cash basis, taken by any fire insurance corpora- tion doing business in this state or by any agent thereof, for which the consideration in whole or in part shall be the issuing of a policy of insurance, shall have written in the body thereof the words "given in payment for. a policy of insurance and if transferred either before or after maturity shall remain subject to all defenses." Such notes or obligations shall be subject to all defenses the maker thereof may or could have against the or- iginal promisee in whosesoever hands the same may be ; and if any such corporation or agent thereof shall take any such note or obligation not so written such corporation shall forfeit its license to do business in this state. 79 NOTES, APPLICATION, ASSESSMENT. 1945 1945 P Premium notes; insolvency, effect. J Section 1945. Every note or obligation given in payment of any premium for any policy of insurance issued by any ; fire insurance corporation shall, if before the expiration of such policy such corporation shall become insolvent or bankrupt ; become utterly void in whosesoever hands the same may be so far as the premium for which the same was given was un- earned at the time of such insolvency or bankruptcy. 1945a (1898; ch. 51, 1905.) Appucauon aivacnea lo policy. Section lb>4oa. All tire insurance corporations, except mu- tual lire insurance corporations organized unaer the laws of this state, shall, upon the issue or renewal of any policy, at- tach to such policy or indorse thereon a true copy of any ap- plication or representations of the assured, which Dy the terms of such policy are made a part thereof or of the concract of insurance or reierred to tiierem, or which may in any manner aliect the validity of such policy. The omission so to do shall not render the policy invalid, but, if any corporation neglect to comply with the requirements of this section, it shall for- ever be precluded from pleading, alleging or proving such application or representations or any part thereof, or the falsity thereof or any part thereof in any action upon such policy; and the plaintiff in any such action shall not be re- quired, in order to recover, either to plead or prove such ap- plication or representations, but may do so at his option. 1945b Foreign, fire, life or accident company; limitation of ac- tion on assessment. Section 1945b. No action shall be brought in any court of this state by the receiver, trustee or other officer or person exercising the functions of a receiver to recover any assess- ment made by a foreign mutual fire, life or accident insurance company, for any money due any such company as and for dues or fees on account of insurance therein, whether such as- sessment be made by the company or the receiver, trustee or other officer or person unless such action be begun within six months after such assessment is made or the liability, to pay such dues or fees accrued. 1945c FIRE COMPANIES. 80^ 1945c (Ch. 106, 1909, in elt'ect May 12, 1909.) J; ire o&mpanies, domestic, risKs; sprinkler leakage; ex- plosion; steam boiler excepted. Section 1945c. Any corporation organized under the laws of this state for the insurance of property against loss or damage by fire and lightning may also insure the same classes of property, subject to the limitations prescribed by the law under which it was organized or is governed as to the amount of any single risk, against loss or damage by lightning, hail, windstorms, tornadoes, cyclones, * * ^* hurricanes, leak- age of sprinklers and sprinkler systems, installed or maintained for the purpose of protection against fire and hy explosions, whether fire ensues or not; provided the same shall be clearly ex- pressed in the policy, hut nothing herein' shall he construed to em^power such companies to insure against loss or damage to persons or property resulting from explosions of steam boilers. 1945d Magistrate's certificate of loss; who may make. Section 1945d. Whenever any policy insuring property against damage or loss from any cause shall require the in- sured, in case of loss or damage to the insured property, to furnish the insurer a certificate or statement of a magistrate or notary public concerning the property insured or the loss or damage thereto, it shall be a compliance with any such pro- vision to furnish a certificate or statement, conforming to the requirements of the policy in other respects, of any magistrate or notary public residing in the county where the loss or dam- age occurred, who shall not be interested in the claim or re- lated to the insured. 1945e (1898: ch. 227, 1901; ch. 432, 1907.) Fire, casualty and surety compaiiies to do business through resident agent; penalty. Section 1945e. No fire, casualty or surety insurance com- pany not incorporated under the laws of this state shall write or cause to be written, any policy except through its resident agent duly authorized by the commissioner of insurance. Any company or person who shall solicit or place insurance in a fire, casualty or surety insurance company, not authorized to do business in this state shall, in the event of the failure of such unauthorized company to pay any claim or loss within the policy issued, be liable to the insured for the amount thereof to the extent that such company would have been lia- 81 FIRE COMPANIES. 1946f ble ; and such company or agent shall, on satisfactory proof of violation of either o± the toregoing provisions made to the commissioner of insurance, have its or his authority to trans- act business in this state revoked for a period of not less than ninety days, and shall not again be permitted to do business herein until all liability for such violation shall be discharged and the provisions of these statutes concerning the admission of foreign lire, casualty or surety insurance companies to do business in this state be complied with. Whenever said com- missioner shall receive notice of the violation of any provision of this section he shall forthwith, in person or by his deputy, visit the office of the company or any insurance agent charged with such violation, and demand an inspection of the books and records thereof; and any company or such agent refusing to permit such inspection shall be deemed guilty of violating this section, and such commissioner shall enforce the penal- ties herein provided against the same. The commissioner shall receive as compensation for such inspection, ten dollars for each day he is engaged therein and be reimbursed his necessary traveling expenses; both of which sums he shall collect from the company, if he find the same guilty; other- wise he shall be paid and reimbursed out of any funds in his hands available for that purpose. See sections 1919a, 1976. Compare sections 1919a, 1919b, 1919c, 1919d. 1945f Directors; classification; term of oflBce. Section 1945f. Any fire insurance company oarganized un- der any special law of this state may classify its directors so that a proportionate number of them shall hold for one, two and three years respectively. See sections 1978 1, 1978m. 1945g Lloyds insurance; resident agent; local office. Section 1945g. Persons and corporations of this state may unite with themselves or with persons and corporations of ad- joining states in making and entering into agreements to in- demnify each other for any losses arising from fire to their man- ufacturing plants or the stock, manufactured or unmanufac- tured, on hand, on such terms, in such manner, in such propor- tions and amounts and during such time as may be agreed upon between them in writing; and for the purpose of the con- venient transaction of such business and the speedy payment n— T. T,. 1945h FIRE COMPANIES. 82 ; of losses incurred therein they may appoint an agent or attor- ney to act for them or each of them in the said business, and may pay in and accumulate a fund for the payment of such losses and of the expenses of the business. Before making any such agreement they shall appoint, by writing filed with the commissioner of insurance, an agent or attorney, resident of this state, on whom all process or papers concerning or growing out of the said business may be served, and service on such agent shall be equivalent to personal service on all such persons and corporations. They shall at all times maintain an office in some city of over ten thousand inhabitants in this state, and all such business shall be transacted at such office. Each person and corporation so making or signing any such contract shall be severally but not jointly liable thereon for their proportionate amount of the idemnity in such contract stated, and shall not be liable otherwise or for any greater sum. I945h Liabilities of directors of mutual fire companies. Section 1945h. The directors of every mutual fire insurance corporation shall be personally liable for all dues owing and assessments made and policies written upon property in any other state, territory or foreign country in which the corporation has not been duly admitted to do business and wherein such policies have been issued in violation of the law of such state, territory or foreign country; provided, this section shall not apply to church mutual insurance companies. lM5i Assessments by foreign company. Section 1945i, The secretary or some other officer of every foreign mutual fire insurance company licensed to do business in this state shall, immediately after making an assessment upon any of its members herein, notify the commissioner of insur- ance thereof and accompany sucli^ notice with a statement of the condition of the company, setting forth therein in particu- lar the facts showing the necessity for each assessment made. No such company shall make or increase any such assessment because of its inability to collect assessments from its members in states or territories in which it was not authorized to do busi- ness and wherein its policies were written in violation of the laws thereof ; provided, that this section shall not apply to church mutual insurance companies. 83 MISREPRESENTATION. 1946 Agents in Milwaukee to report; forfeiture. Section 1946. Every person who shall, in the city of Mil- waukee, as agent or otherwise for any fire insurance corpora- tion, effect or agree to effect any insurance shall, on or before the tenth day of February in each j^ear and whenever he shall change his place of doing business in said city, report in writ- ing to the treasurer of the fire department of such city the street and number of his place of doing business, specifying for what corporation he acts as agent; and for every default in any of these particulars such person shall forfeit one hun- dred dollars. Section 1946 is referred to in 1946c. MISREPRESENTATION. 1946a Representation as to assets. Section 1946a. It shall not be lawful for any company corporation, association, individual or individuals, now trans- acting or which may transact the business of insurance within this state, to state or represent by advertisement in any form any funds as assets to be in its, his or their possession and not so actually possessed and available for the payment of losses and held for the protection of the holders of policies of . insurance ; and such statement shall also show the amount available and held in the United States. Section 1946a is referred to in 1946e. 1946b Misrepresentation; capital; surplus. Section 1946b. Every advertisement or public announce- ment and every sign, circular or card hereafter made or issued by any company, corporation, association, individual or indi- viduals, or any officer, agent, manager or legal representative thereof, which is or may be authorized to transact the business of insurance within this state shall purport to make known the financial standing of any such company, corporation, as- sociation, individual or individuals shall exhibit the capital ac- tually paid in in cash and the amount of its, his or their net surplus of assets over all liabilities actually available for the payment of losses and held for the protection of holders of their policies of insurance, including in such liabilities capital actually paid in and the fund reserved for re-insurance of outstanding 1946c MISREPRESENTATION. 84 risks, and shall correspond with the verified statement made by the company, corporation, association, individual or individuals making or issuing the same to the insurance department of this state next preceding the making or issuing of the same; but in policies or renewals thereof there may be stated a single item showing the amount of authorized capital. Section 1946b is referred to in 1946e. 1946c Misrepresentation; risks; evidence; penalty. Section 1946c, It shall be unlawful for any company, asso- ciation or corporation transacting the business of insurance in this state to publish or cause to be published, or permit to be published by any of its agents or with the knowledge or eon- sent of any of them, any statement which shall represent said company, association or corporation as writing risks different in nature or class from those actually written by it, or shall represent said company, association or corporation as confining its business to a particular class of risks when it is in reality writing risks of another class. The distribution of any cards or other documents by any such agent containing such decep- tive representations, or the existence of any sign exposed to public view containing them and belonging to any such com- pany, association or corporation or any agent thereof, or the existence of any advertisement or card or statement containing any such deceptive representations in any newspaper published' in any town, village or city in which said company, association or corporation has an agent transacting business or soliciting insurance shall be prima facie evidence of the violation of this section by said company, association or corporation. In addi- tion to the penalty provided in section 1946, which is hereby made applicable to this section, the commissioner of insurance shall revoke the license of any company, association or corpora- tion which shall be convicted of violating this section, and the licenses of all its agents for the transaction of the business of insurance within this state, immediately upon the filing of a certified copy of the record of such conviction with said com- missoner. Whenever there shall be filed with him an affidavit containing a statement of facts constituting prima facie evi- dence of the violation of this section by any such company, as- sociation or corporation the commissioner phall immediately notify it of such filing and require such company, association or corporation to show cause before him, within thirty days from such notification, why its license should not be revoked; and if such company, association or corporation shall fail within the 85 MISREPRESENTATION. 1946d j time specified to establish to the satisfaction of said commis- sioner that it has not violated this section in the manner al- leged in such affidavit he shall immediately revoke the license of said company, association or corporation and the license of all agents for the transaction of the business of insurance with- in this state. No license to transact such business within this state shall be granted to any company, association or corporation or to any agent thereof for said company, association or cor- poration for one year from the date when its license was so re- voked. Section 1946c is referred to in 1946e. 1946d Cajicellation of policy; return of premium; short rate. Section 1946d. Any company, association or corporation transacting the business of insuring property against loss or damage from any cause shall, except as is otherwise provided by any provision applicable to any class of insurance com- panies, cancel any policy at any time, by request of the party insured or his assignee, and return to said party the amount of premium paid, less the customary short-rate premium for the expired portion of the full term the policy has been issued. 1946e Penalties for misrepresentations. Section 1946e. Any violation of any provision of sections 1946a. 1946b, or 1946c shall, for the first offense, subject the company, corporation, association or individual so violating to a penalty of five hundred dollars, to be sued for and re- covered in the name of the state, with costs and expenses of such prosecution, by the district attorney of any county in which the company, corporation, association, individual or individuals shall be located or may transact business or in any county where such offense may be committed; and such penalty, when re- covered, shall be paid into the treasury of such county for the benefit of the school fund. Every subsequent violation shall subiect the company, corporation, association, individual or in- dividuals guilty of such violation to a penalty of not less than one thousand dollars, which shall be sued for, recovered and disposed of in like manner as for the first offense. 1946f rCh. 126. 1907.) Misrepresentation; estimates; nature of policies; other fe companies: penalty. Section 1946f. No life insurance corporation doing busi- ness in this state, and no officer, director, or agent thereof, 1946g STATE FIRE MARSHAL. 86 shall issue or circulate, or cause or permit to be issued or cir- <'ulated, any estimate, illustration, circular or statement of any sort misrepresenting the terms of any policy issued by it, or advantages promised thereby, or the dividends or share of surplus to be received therefrom, or shall use any title of any policy or class of policies, misrepresenting the true jiature thereof, and no life insurance company, its officers, directors or agents, shall issue or circulate or cause or permit to be issued or circulated, any written circular or statement of any sort, wilfully misrepresenting any other company, the nature or terms of its policy or policies, its premium charge or dividends allowed or returned by such other company. Any officer, director or agent aforesaid, found guilty of violating any of the provisions of this act, shall be punished by a fine of not less than twenty-five dollars nor more than three hundred dollars, or by imprisonment in the county jail for a term not exceeding six months. STATE FIRE MARSHAL. 1946g (Ch. 228, 1907.) Appointment; confirmation; removal. Section 1946g. The governor is hereby authorized and em- powered to appoint within thirty days after this act shall take effect, and every six years thereafter, between the fif- teenth day of January and the first day of February, by and with the advice and consent of the senate and also within thirty days after the occurrence of a vacancy in the office, a suitable person who shall be a citizen of this state, as state fire marshal, who shall hold the office until his successor is appointed and qualified, the title of which office shall be state fire marshal. Such officer shall keep his office in the eapitol, in the city of Madison, and may be removed for cause at any time by the governor. 1946h (Ch. 228, 1907: ch. 211. 1909, in effect May 29, 1909.) Assistants: deDnties: qualifications. Section 1946h The state fire marshal is hereby empowered and reouired to appoint one chief assistant fire marshal and two deDutv fire marshals to be desisrnated as first and second deDuHes. * * * The duties of the said chief assistant and deputies shall be to assist the state fire marshal. In the event of a vacancy in the office of the state fire marshal, or during the absence or disability of that officer, the chief assistant shall perform the duties of the office. 87 STATE FIRE MARSHAL. 19461 19461 (Ch. 228, 1907.) Duties; investigation of fires. Section 19461. 1. The state fire marshal and the chief of the fire department of every city or village in which a fire department is established, and the mayor of every in- corporated city, and the president of the village board of every incorporated village in which no fire department exists, and the town clerk of every organized township within the limits of any organized city or village shall investigate or cause to be investigated the cause, origin and circumstances of every fire occurring in such city, village or town by which property has been destroyed or damaged when the damage exceeds twenty-five dollars, except that all fires of unknown origin shall be reported, and shall especially make investi- gation as to whether such fire was the result of carelessness accident or design. Investigation within two days. 2. Such investigation shall be begun within two days of the occurrence of such fire, and the state fire marshal shall have the right to supervise and direct such investigation whenever he deems it expedient or necessary. Notice to state fire marshal ; statement. 3. The officer making investigation of fires occurring in (jties, villages and towns shall forthwith notify said state fire marshal and shall within one week of the occurrence of the fire, furnish to the said state fire marshal a written state- ment of all the facts relating to the cause and origin of the fire, and such further information as may be called for by the blanks furnished by said state fire marshal. The state fire marshal shall keep in his Office a record of all fires occurring ill the state, together with all facts, statistics and circum- stances including the origin of the fires, which may be de- termined by the investigations provided by this act; such statistics shall be at all times open to the public inspection. 1946J fCh. 228, 1907; ch. 211, 1909; in effect May 29, 1909.) Arson ; prosecution ; testimony ; arrest ; record. Section 1946j. 1. The state fire marshal shall, when in his opinion further investigation is necessary, take or cause to be taken the testimony on oath of all persons supposed to be cognizant of any facts or to have any means of knowledge in relation to the matter as to which an examination is herein required to be made, and shall cause the same to be reduced 1946k STATE FIRE MARSHAL. 88 to writing; and if he shall be of the opinion that there is evi- dence sufficient to charge any person with the crime of arson, he shall cause such person to be arrested and charged with such offense, and shall furnish to the proper prosecuting at- torney all such evidence, together with the copy of all names of witnesses and all the information obtained by him, includ> ing a copy of all pertinent and material testimony taken in the case ; and shall keep a record of the proceedings and prog- ress made in all such prosecutions for arson and the result of all cases finally disposed of. 2. It shall he the duty of the attorney in the state fire mar- shal's department to assist in performing the duties and work of said department, to assist in the taking of testimony and cross examination of witnesses in cases under investigation hy said department, and to aid and assist district attorneys in the prosecution of all arson cases in all the courts of the state. 1946k (Ch. 228, 1907.) Powers; witnesses; fees. Section 1946k. 1. The state fire marshal, chief assistant marshal, and deputy state fire marshals shall each have the power in any county of the state of Wisconsin, to summon and compel the attendance of witnesses before them, or either of them, to testify in relation to any matter which is by the provisions of this act, a subject of inquiry and investi- gation, and may require the production of any book, paper or document deemed pertinent thereto by them or either of them Such witness shall be subpoenaed in the same manner as witnesses in circuit court. They shall receive the same- compensation, which shall be paid out of the fire marshal fund, upon vouchers signed by the state fire marshal, chief assistant fire marshal, or deputv fire marshal, before whom any witnesses shall have attended, and such officer shall at the close of the investigation wherein such witness was sub- ' poenaed certify to the aUendance and mileage of such witness, which certificate shall be filed ip the office of the state fire marshal. All investigations held by or under the direction of said state fire marshal, or his subordinates, may, in his dis- cretion, be private, and persons other than those required to be present by the provisions of this act. may be excluded from the place where such investigation is held, and witnesses may be kept separate and apart from each other and not allowed to communicate with each other until they have been examined. 89 STATE FIRE MARSHAL. 1946k 1946k (2, 3) (Ch. 228, 1907; ch. 211, 1909, in effect May 29, 1909.) Oaths; perjury. 2. Said state fire marshal, chief assistant fire marshal, * * deputy state fire marshals, and assistant state fire mar- shals are hereby authorized and empowered to administer oaths and affirmations to any person appearing as witnesses before them; and false swearing in any matter or proceeding aforesaid shall be deemed perjury and shall be punished as such. Contempt; penalty. 3. Any witness who refuses to be sworn, or who refuses to testify, or who disobeys any lawful order of said state fire marshal, chief assistant fire marshal, * * * deputy state fire marshals, or assistant state fire marshals, in relation to said investigation, or who fails or refuses to produce any paper, book, or document touching any matter under exam- ination, or who is guilty of any contemptuous conduct, after l)eing summoned to appear before them, or either of them, to give testimony in relation to any matter or subject under ex- amination or investigation as aforesaid, may be summaril^^ punished by the state fire marshal, chief assistant fire mar- shal, * * * deputy state fire marshals, or assistant state fire marshals as for contempt by a fine in a sum not exceeding one hundred dollars or be committed to the county jail until such time as such persons may be willing to comply with an^^ reasonable order made by the said state fire marshal, chief assistant fire marshal, *. * * deputy state fire marshals, or assistant state fire marshals as provided in this act, and sub- ject to the provisions of section 3577 of the statutes of 1898. 1946k (Ch. 228, 1907.) View of premises after fire. 4. Said state fire marshal and his subordinates, or either of them, shall have the authority at all reasonable hours in performance of the duties imposed by the provisions of this act, to enter upon and examine any building or premises where any fire has occurred, and other buildings or premises adjoining or near the same. 19461 (Ch. 228, 1907.) View of building. Section 19461. 1. The state fire marshal, his chief assist- ant and deputies, upon complaint of any person, or without 1946m STATE FIRE MARSHAL. 90 any complaint previously entered, shall have a right at all reasonable hours, for the purpose of examination, to enter into and upon all buildings and premises within their jurisdiction. Dangerous premises; order. 2. Whenever any of said ofticers shall find any building or other structure, which for want of repair, or by reason of age or dilapidated condition, or for any other cause is es- pecially liable to fire, and which is so situated as to endanger other buildings and property, and whenever any such othcers shall find in any building, or upon any premises, any combus- tible or explosive material, or infiammable conditions, dan- gerous to the safety of said buildings or premises, they shall have power to make reasonable orders for the repair or re- moval of the same, and such order shall be forthwith complied with by the owner or occupant of said premises or building. Penalty for disobeying reasonable order. 3. Any owner or occupant of buildings or premises failing to comply with any reasonable order of the authorities, above specified, shall be punished by a fine of not less than ten dollars nor more than fifty dollars for each day's neglect, in any action to be brought by any of the officers above referred to in any municipal or justice court in the county where such owner or occupant is resident. Section 1946 1 is referred to in 1946m. 1946m. (Ch. 228, 1907.) Officer neglecting to comply with law; penalty. Section 1946m. Any officer referred to in section 19461 of this act, who neglects to comply with any of the require- ments of this act shall upon conviction be punished by a fine of not less than twenty-five dollars nor more than two hun- dred dollars for each neglect or violation. 1946n (Ch. 228, 1907.) Salaries; officers' fees. Section 1946n. 1. The state fire marshal shall receive an annual salary of three thousand dollars, the chief assistant fire marshal shall receive an annual salary of two thousand five hundred dollars, the first deputy marshal one thousand eight hundred dollars, and the second depilty marshal one thousand five hundred dollars. All officers who shall perform any service at the request of any such state fire marshal, 91 STATE FIRE MARSHAL. 1946n chief assistant fire marshal, or deputy fire marshal, shall receive the same fees as officers in justice courts, and such fees shall be paid out of the fire marshal fund in the same manner as witnesses testifying under this act. 1946n(2) (Ch. 228, 1907; ch. 211, 1909, in effect May 29, 1909.) Clerks; assistants; attorney at law; expenses. 2. Said state fire marshal shall employ clerks and assistants, at least one of whom shall he an attorney -at -law, and incur such other expense as may be necessary in the performance of the duties of the office, including necessary traveling expenses, not to exceed, including salaries, such sum as may be paid to the state treasury in the manner hereinafter provided. 1946n(3) (Ch. 228, 1907, ch. 390, 1909, in effect June 15, 1909.) Tax on fire companies; town mutuals excepted; expenses limited. 3. For the purpose of maintaining the department of state fire marshal and paying all the expenses incident thereto, every fire insurance company doing business in the state of Wisconsin, except town mutual insurance companies hereto- fore or hereafcer organized under the provisions of section 1927, statutes of 1898, and the acts amendatory thereof, shall pay to the * * * commissioner of insurance within thirty days after the passage and publication of this act and * * * on or before the first day of February, annually thereafter in addition to the taxes now required by law to be paid by such company, * * * three-eighths of one per cent, on the gross premium and assessment receipts of such com- panies on all business done in Wisconsin in the year next preceding, as shown by their annual statements under oath to the insurance department. The cmnmissioner of insurance shall pay over the moneys thy^ collected to the state treasurer. The money so received into the treasury shall be set aside as a special fund for the maintenance of such office of state fire marshal and the expenses incident thereto. The state shall not be liable in any manner for the salary of said fire marshal, his deputies, clerks, assistants, employes or for the maintenance of the office of fire marshal or any expenses in- cident thereto, and the same shall be payable only from the special fund provided for in this subsection. 1946n (Ch. 228, 1907.) Omission of tax. 4. Whenever at any time there shall accumulate in the special fund a surplus sufficient to maintain the department of 19460 STATE FIRE MARSHAL. 92 the state fire marshal for the period of one year, then in the discretion of the state fire marshal, the foregoing special tax for such year may be omitted. Expense accounts and vouchers. 5. The state fire marshal shall keep on file m his office an itemized statement of all expenses incurred .^y his depart- ment and shall approve all vouchers issued therefor, before the same are submitted to the secretary of state for payment, which said voucher shall be allowed and paid in the same manner as other claims against the state. 19460 (Ch. 228, 1907.) State fire marshal not to engage in other business. Section 1946o. The state fire marshal shall not engage in any other business, and he or one of his chief subordinates shall at all times be in the office of ttie fire marshal ready for such duties as are required by this act. 1946p (Ch. 228, 1907.) Annual report to governor. Section 1946p. The fire marshal shall submit annually as early as consistent with full and accurate preparation, and not later than the fifteenth day of February, a detailed report of his official action to the governor. 1946q (Ch. 228, 1907.) Fees to municipal officers for reporting fires. Section 1946q. 1. There shall be paid to the chiefs of fire departments, and to mayors of cities, who do not receive to exceed fifty dollars annually as compensation for their serv- ices as such chiefs and mayors, and to presidents of the vil- lage boards, and to the township clerk of every organized township, who are by this act required to report fires to the state fire marshal, the sum of tw^ dollars for each fire reported to the satisfaction of the state fire marshal, and in addition thereto, mileage at the rate of ten cents per mile for each mile traveled to and from the place of the fire. Said allowance shall be paid by the state fire marshal at the close of each fiscal year out of any funds appropriated as heretofore provided for the use of the office of said state fire marshal. Salaried chiefs and mayors excepted. 2. All chiefs of departments who receive a stated salary and devote their entire time to the duties of chief of the depart- 93 LIFE COMPANIES. 1946x ment, and those mayors of cities who receive a stated salary exceeding fifty dollars, and such officer, shall be precluded from receiving any extra allowance for the report herein men- tioned. LIFE INSURANCE COMPANIES. 1946X (Ch. 637, 1907.) Definitions, life companies. Section 1946x. Unless the context of any statute or law relating to life insurance indicates otherwise, the following words and phrases shall be understood in the sense herein set forth and defined: Amount at risk. 1. The ''amount at risk," in any policy year, is the differ- ence between the sum insured in such policy year and the terminal reserve for such policy year. Beneficiary. 2. ''Beneficiary" is the person in whose favor a policy is written. Company. 3. "Company." includes all corporations, associations, part- nerships or individuals engaged as principals in the business of life insurance, except fraternal or beneficiary corporations, societies, orders or associations for the relief of members or beneficiaries, orders or associations for the relief of members on the mutual or assessment plan. Deposit. 4. "Deposit," is the terminal reserve on a policy discounted to the beginning of the policy year at the rate of interest as- sumed. ' Domestic company. 5. "Domestic company," is any company organized or in- corporated under the laws of this state. 1946x (Ch. 120, 1909, in effect May 13, 1909.) Expense charge. 6. The "expense charge," for any policy year is the excess of the stipulated premium for such policy year and the terminal reserve of the preceding policy year over the sum of the mor- tality charges and deposit for such policy year. • • • 1946X LIFE COMPANIES. 94 1946x (Ch. 637, 1907.) Foreign company. 7. ''Foreign company,'' is any company not organized or incorporated under the laws of this state. Insured. 8. "Insured," is the person upon whose life the contract of insurance is written. Mortality charge. 9. ''Mortality charge," is the provision made in the policy at the beginning of the policy year for the mortality on ac- count of such policy year, according to the expense charges assumed, the table of mortality adopted and the rate of inter- est assumed. Policy. 10. "Policy," is the contract issued by the company to the insured. Policy anniversary. 11. "Policy anniversary," is any anniversary of the date of the policy. Policy year. 12. "Policy year," is the year beginning with the date of the policy or any anniversary thereof. Premium. 13. "Premium," is the payment stipulated in the policy to be made of the insured to the company during any one policy year. ' . ' ' ."1 Reserve. 14. The "reserve," at any time within the policy year is the deposit for such year improved at the assumed rate of in- terest to such time within the policy year together with the proportional unused part of the mortality charge for such year. Sum insured. 15. The "sum insured," under a policy in any policy year is the value of the guaranteed payments and benefits stipulated to be made or granted if it should mature within such policy year. 95 DOMESTIC LIFE COMPANIES. 1947 Terminal reserve. 16. The ''terminal reserve." is the reserve at the end of the policy year, and is the sum sufficient, with the premiums com- ing due, to provide for the future expense and mortality charges, and mature the policy according to its terms, all com- puted upon the expense charges assumed, the table of mortal- ity, adopted and the rate of interest assumed. DOMESTIC LIFE COMPANIES. 1947 (Ch. 640, 1907.) Organization ; incorporators. Section 1947. 1. Any number of residents of this state not less than nine, may form a corporation either with or without pa pita 1 stock for the purpose of granting insurance upon the lives of persons. Contents of articles. 2. Such persons shall make, sign and file in the office of the commissioner of insurance articles of organization stating: fa) That they associate for the purpose of forming a cor- poration to transact the business of insuring lives, stating the nature and kind thereof; (h) The name of the corporation and the place where thff principal office for the transaction of business shall be located: (e) The capital stock, if anv. the number of shares thereof and the amount of each share; (d) The desismation of the general officers, and the number of directors, which shall not be less than seven ; (e) The mode and manner of electing directors, filling va- cancies in their number, and their terms of office; Cf) The period for the c(>mmencement and termination of their fiscal year ; (g) Such other provisions or articles not inconsistent witl law as they may deem proper to be inserted therein for the interests of such corporation or the accomplishment of the pur- poses thereof, or to define the manner in which the corporate powers granted by law shall be exercised. 1947(3^ (Ch. 39. 1909. in effect Apr. 15, 1909.) Life companies; conditions precedent to doinqf business; risks, minimum number: maximum single; special guaranty fund; capital stock; fee. 3. No such corporation shall transact any business of in- surance, until all the following condition shall be complied with: 1947 DOMESTIC LIFE COMPANIES. 96 a. If organized without capital stock at least * * * f^^Q hundred persons shall have subscribed for not less than one thousand dollars of insurance each and passed a prescribed medical examination and shall have each paid one full annual premium in cash upon the insurance subscribed for, amounting in the aggregate to at least twenty thousand dollars. * * * Or, in lieu of such subscriptions for insurance, the company shall provide and hold a special guaranty fund of at least twenty-five thousand dollars in cash or invested as prescribed in section 1951 of the statutes, to be used for no purpose other than the payment of death losses, until the largest policy in force, deducting any reinsurance thereon in authorized compan- ies, shall not exceed one-half of one per centum of the total insurance in force, deducting all such reinsurance. Such com- pany may borrow a sum of money sufficient to provide the amount to be held as a special gauranty fund and an additional sum to defray the expenses of organization not exceeding ten thousand dollars. This loan shall not be a liability and the agreement therefor shall so provide and that the principal and interest thereon shall only be repaid from assets in excess of all liabilities. The aareement shall also provide for interest at a rate not exceedina eight per centum per annum and after the release of the svecial guaranty fund the principal shall be re- padd in the discretion of the board of directors or at such times OS fixed in said aareement. Solicitation of Subscriptions for insurance under this section may be made by agents holding a certificate of authority to be issued by the commissioner of in- surance. Every application for such insurance shall contain a statement that the issuance of the policy is contingent upov ths completion of the organization of the company. 1947 (3>(b) rCh 39, 1909, in effect Apr. 15, 1909.) ft. * * * If organized, with capital stock, until a capital stock of at least one hundred thousand dollars * * * and a special survlus of at least twenty-five thousand dollars shall have been subscribed for and fully paid in and is held in cash or invested as provided in section * * * :/p5:/ of the statutes No part of such special surplus shall be used for any purpose other than the payment of death losses while the largest policy in force, deducting any reinsurance thereon in authorized com- panies, shall exceed' one-half of one per centum of the total in- surance in force, deducting all such reinsurance. c. * * • There shall have been paid to the insurance commissioDfr in case of a corporation organized without cap- 97 DOMESTIC LIFE COMPANIES. 1947 ital stock, a fee of one hundred dollars, and in case of a cor- poration organized with capital stock, a fee equal to that re- quired upon the incorporation of other corporations under chap- ter 86 of the statutes, but no such fees shall be required to be paid until at the time of the issuing of the certificate of author- ity under subsection d. d. A certificate shall have been made and filed by the com- missioner of insurance in his office setting forth that such cor- poration has complied with all the provisions of the law and is authorized to transact the business of life insurance. General corporation laws applicable; filing articles and amendments; fees; first meeting. 4. The provisions of chapter 86 of the statutes and acts amen- datory thereof relating to corporations under the general law shall apply to all corporations mentioned in this section except so far as the same are inconsistent with the provisions of the law relating to life insurance companies. The manner of filing articles of incorporation shall be the same, except that such articles shall be filed with and the fees paid to the commissioner of insurance. The manner of filing amendments and the fee upon the filing of any amendment shall be the same, except that such amendment shall be filed with and the fees paid to the •commissioner of insurance. In case the corporation is formed without capital stock the signers of the articles shall subject to the approval of the commissioner of insurance fix the time and place for the first meeting for the election of officers, which time and place shall be specified in the certificate of authority to do business heretofore mentioned; but the signers of such articles shall give written not'ce thereof by mail to each person subscrib- ing for insurance at least twenty days prior to the holding of such meeting. Licenses requisite for all life insurance; revocation for removal of actions ; service of process. 5. No life insurance corporation whatever shall do any busi- ness in this state, nor shall any person act as agent or otherwise within this state in receiving or procuring applications for life insurance or in any manner aid in transacting such business for any such corporation until it shall have first procured a license from said commissioner authoriz'ng it to issue policies of insur- ance in this state and have paid therefor the license fee required to be paid by section 1220. provided, that in case any such life insurance corporation organized under the laws of any other 7-1. L. 1947a DOMESTIC MUTUAL LIFE COMPANIES. 98 state or country, having procured license as herein provided, shall remove or make application to remove into any court of the United States any action or proceeding begun in any court of this state upon a claim or cause of action ar'sing out of any business or transaction done in this state it shall be and is hereby made the imperative duty of the commissioner to revoke any and every authority, license or certificate granted to such cor- poration or any agent thereof to transact any business in this state, and no such corporation or agent thereof shall thereafter transact any business of insurance in this state, till again duly authorized, and no renewal, license or cert'ficate of authority shall be granted to such corporation for three years after such revocation; and, provided further, that if the license of any such corporation shall be revoked as aforesaid, the attorney last ap- pointed and the agent last designated as acting as such for it shall continue attorney and agent for the purpose of servmg process for beginning actions upon any policy or liability in- curred or contracted in this state, while it transacted business there'n so long as any such liability shall exist. Section 1947 is referred to in 1947a. 1947a (Ch. 104, 1903.) Stock life company may write accident and health in- surance. Section 1947a. Any life insurance company, incorporated under section 1947 of the statutes of the year 1898, with a cap- ital stock of one hundred thousand dollars fully paid up, may engage in the business of personal, accident and health insur- ance, as its articles of associat'on shall provide, and may issue such contracts either independently of or in conjunction with its life or endowment policies. Any foreign life company by comply'ng with this section, may also be licensed to transact such business, provided, that every such company shall first comply with all the laws of Wisconsin relating to the business of personal, accident and health insurance. All acts or parts of acts in conflict with the provisions of this act are hereby re- pealed. DOMESTIC MUTUAL LIFE COMPANIES. 1947c (Ch. 667, 1907.) Election; votes; cumulative vote; assignee; qualification for office; vacancy. Section 1947c. At every general election of directors or trustees in any domestic mutual life insurance company, whether 99 DOMESTIC MUTUAL LIFE COMPANIES. 1947d incorporated by special act or general law and anything to the contrary ^n its charter, certificate, articles of incorporation or by-laws, notwithstanding, every policy holder whose insurance shall be. in force, and shall have been in force for at least one > car prior thereto, shall be entitled to one vote without other qualification. Every policy holder entitled to vote shall have the same number of votes irrespective of the number of policies or the amount of insurance held by him, and shall have one vote for each director to be elected, and may cast all such votes for one candidate or distribute them among the number as he may elect. Unless a poPcy shall have been assigned more than six months prior to the election by an assignment absolute on its face to an assignee other than. the company which shall have issued the policy, the person upon whose application the policy shall have been issued, and if the application be signed by more than one person, each person whose life is insured shall be deemed to be a policy holder entitled to vote as aforesaid. In case the policy shall have been assigned as aforesaid, the assignee shall be deemed to be a policy holder entitled to vote, provided his sis-nature, either attested by the assignor or acknowledged in like manner as in case of a deed to be recorded in this state, shall have been filed at the home office of the company. Any policv holder entitled to vote at any election shall be qualified to fill anv office to be voted for at any such election. Such a gen- eral election shall be held at intervals of not more than two years. At each such election not less than one-fourth of the total number of directors provided for in the charter or articles shall be elected. No appointment or selection of a director to fill a vacancy other than when made by general election shall extend beyond the next general election. 1947d (Ch. 667, 1907.) Lists of policy holders; arrangement; how furnished; re- turns. Section 1947d. Upon written request, filed w^'th the com- pany, at the time of making the nomination, and within thirty days thereafter, the company shall, at its own expense, furnish to the policy holders makinsr nominat^'on of an independent ticket a full and complete printed list of the names and last known postoffice addresses of all policy holders whose insurance was in force twelve months prior to the day fixed for an election. Such list shall be made separately for each state, territory and county and shall be elass'fied by postoffice addresses and the names shall be arranged alphabetically. The company shall mail 1947e DOMESTIC MUTUAL LIFE COMPANIES. 100 to each such policy holder one list, and no more, for each state, territory or county requested by him as above provided. Such list shall be returned to the home office of the company within ten days after such election. See sections 194 — 52. IMle (Ch. 667, 1907.) Inspectors; directors; nominatic^ns of candidates. Section 1947e. 1. At least three months prior to the date of any general election of d'rectors or trustees in any such com- pany, the directors or tru'^tees thereof shall appoint three qual- ified voters, who are not directors or trustees, as inspectors of election, who shall be paid by the company, and such directors or trustees shall suggest the name of a person as candidate for every vacancy to be filled at the ensuing election, and shall file with the comm^'ssioner of insurance a certificate thereof, giving the names, occupations and addresses of the inspectors so ap- pointed, and the persons whose names have been so suggested. Officers not to assist in other nomination nor use money of company; penalty. 2. Any afficer, trustee, agent or employe of such company who shall d'rectly or indirectly nominate or assist or encourage the nomination of any other candidate or cand^'dates for the office of director other than those on the administration ticket, or who shall use or expend any of the property or funds of the com- pany in promoting the election of any nominee, candidate or person except as directed or authorized in this act, shall be guilty of a misdemeanor. Policy Holders' nominations. 3. Any one hundred or more qualified voters of such comr pany may also suggest the name of a person as a candidate for one or more of the vacanc'es to be filled at any such ensuing election, by filing with the commissioner of insurance, and with the secretary of the company at its home office, not more than ninety nor less than sixty days prior to such election, a certifi- cate signed and acknowledsred by them, giving the names, oc- cupations, and addresses of the persons so suggested as candi- dates, together with a written statement signed by sa'd candi- dates that they will accept such office if elected. Vacancies in tickets. 4. In case of the death or resignation or incapacity of any person so suggested as a candidate, a majority of the board of directors or trustees, or a majority of the persons suggesting lai DOMESTIC MUTUAL LIFE COMPANIES 19471 the name of such nominee, may suggest the name of another person as a candidate in his place, by filing prior to the day set for the election a like certificate with that required for the original nominations, if such certificate be filed more than fifty days prior to the election, the name of such person sug- gested as a candidate shall be inserted on the ballot hereinafter mentioned. i ' » , > ^ . . 1947f (Ch. 667, 1907.) ; ' /, > .,,',' .„ ',^\,\ Ballots ; envelopes ; mailing ; other qu^siioa^ ; .^,ujiio$if^^ . \}y section 1948, the commissioner of insurance shall giv€^.np-.^,fCilg^^^ lice to such company and its agents to discontinue issuing^ ^ new policies within this state until such time as its assets have become equal to its liabilities computed as aforesaid. Any officer or agent who, after such notice has been given, is- sues or delivers a new policy for and on behalf of such cor- poration before its funds shall have been examined by the commissioner and a new certificate of authority issued shall forfeit for each offense not less than one hundred dollars not more than one thousand dollars. 1950 (1898; ch. 519, 1905; ch. 209, 1909, in effect Jan. 1, 1910.) Life companies, valuadon of policies; basis; method. Section 1950. 1. Every life insurance company doing busi- ness in this state or having in force in this state, policies is- sued therein, shall hold funds properly and safely secured to provide for its reserve liability over and above all its other liabilities, which reserve liability shall be determined by the state as follows: a. All policies issued by a domestic company after the year 1909 shall be valued according to the expense charges assumed, the table of mortality adopted, and the rate of interest assumed. b. Any policies issued by a foreign company after the year 1909 may be valued as provided in subsection a, provided the assumptions as to mortality and interest sJiall coniform to the requirements of subsections 1 and 2 of section 1950c, and pro- vided the aggregate liability shall not be less than that result- ing from a valuation under the laws of the state or country where the home office of said company is located. c. All policies issued before the year 1910, on any plan not providing in every year for fu:ll net level premium reserves may he valued upo7i such plan and on the basis of either the Amer- ican Experience or the Actuaries Table of Mortality, and a rate of interest not higher than that assumed nor higher than four and one half per centum per annum. d. All policies for which no other method of valuAition is pro- vided shall except as hereafter provided be valued on a net level premium reserve basis computed on either the American Experience or Actuaries Table of Mortality and a rate of in- terest, for policies issued before the year 1910, not higher than that assumed nor higher tlian four and one half per centum per annum, and for policies issued after the year 1909, not higher than thai assumed nor higher than four per centum per annum. 1950 LIFE COMPANIES. 110 e. Any policies mentioned in subsections b, c, and d may be valued to produce aggrepate reserve liabilities in excess of those required by said subsections but not greater than such as would result from valuing the same on the basis of the table of mortality adopted with interest at three per centum per an- num, jj^^ /. The commissioner of insurance may vary the standards of interest and mortality in the case of corporations of foreign countries as to contracts issued by such corporation in other countries than the Umted States and in particular cases of invalid lives and other extra hazards, and value policies in groups and use approxiwMte averages for fractions of a year. * * * Liability; premium; deficient. 2. In every case in which the actual premium charged for an insurance is less than the net premium for such insurance, * * * required according to the table of mortality adopted and rate of interest assumed * * *, the company shall also be charged with the present value of an annuity, the amount of which shall equal the deficiency by reason of * * * the preimum charged * * * being less than the net premium required * * *. Expense charge. 3. In every case where the premium stipulated in any policy shall provide for an expense-charge exceeding in any year the provision for expenses in such year the valuation shall include a liability computed on the basis of the excess of such expense- charge. * * * Valuation; department of foreign state. 4. The valuation annually made and accepted by the insur- ance department of any other state of the United States or any Other country of any policies of a company located in such other state or country, if such valuation shall be certified as true and correct by the insurance commissioner, or like officer, of such state or country, shall be received and accepted by the commissioner of insurance of this state, and no further valua- tion shall be required or be mxide by him for the year for which such valuation shall be so certified^ provided that the aggregate liability so determined shall not be less than the liability re- sulting from a valuation made under the laws of this state. Valuation; department of commerce and labor. 5. The valuation by the department of commerce and labor of the United States, authorized by any law thereof, of any ill LIFE COMPANIES. 1950a policies of a company located outside of this state, if conform- ing to the aforesaid provisions as to valuaton by the commis- sioners or iiHe officers of such other stales or countries, shall be received and accepted in Like manner. Valuation; commissioner to make. 6. Except as aforesaid the comymssioner of insurance shall annually make or cause to be made valuations of all outstand- ing policies, additions thereto, and other obligations of every such company mentioned in subsection 1. Valuation; commissioner to certify. 7. The commissioner of insurance siiall, annually, after the year 1909, upon the request of any domestic company, without additional charge or expense to it, make one additional valua- tion of such policies according to such standard, as it shall specify. Any valuation made by him shall, upon request, be ctrtified to the commissioner of insurance or like officer of any other state or country. Valuation; records of. 8. All valuations made by the state shall be tabulated and preserved as a part of the records of the Department of insur- ance. Each valuation shall be accompanied by a statement of the tables of mortality used, the rates of interest assumed, and the method of computation employed. 1950a (Ch. 209, 1909, in effect Jan. 1, 1910.) Valuation; fee. Section 1950a. There shall be paid by every life insurance company organized in this state and by every life insurance company organized under the laws of some other state or for- eign country, if no certified valuation «= * * lias been fur- nished as herein provided, by way of compensation for * * * the valuation of its policies one cent on every one thou- sand dollars insured by it, which shall be paid by the commis- sioner of insurance into the state treasury. * * * 1950b (Ch. 209, 1909, in effect Jan. 1, 1910.) Life companies; from foreign countries; valuation; de- posit. Section 1950b. Whenever any life insurance company, or- ganized under the laws of any foreign country, shall have been admitted, it shall also be the duty of the commissioner of insur- 1950c LIFE COMPANIES. 112 ance to annually and separately value all policies written in, or on, the lives of residents of this state, and it shall be the duty of such company, as one of the conditions of renewal of license, to invest, and at all times keep invested, the aggregate net value of such policies, in such securities as provided for under the laws of this state, and deposit such aggregate amount in such securities at the'r book value, with the state treasurer; every such company depositing such securities shall have the right to receive the income thereof, and to exchange the same from time to time for like securities of 1 ke value, and may withdraw such deposit when the commissioner of insurance shall certify that all liability arising under all poLcies or contracts issued in or on the lives of residents of this state has been satisfied, and that there is no further necessity for such deposit. 1950c (Ch. 209, 1909, in effect Jan. 1, 1910.) . Life companies, valuation; mortality table; interest rate. Section 1950c. 1. The table of mortality adopted, if other than the Amer.can Experience, the Actuaries, or the American Experience Select, (on the basis that the rate of mortality dur- ing the first five years after the date of insurance shall be cal- culated according to the following percentages of the rate shown by the American Experience Table of Mortality, to-wit: First year of insurance fifty per centum thereof, second year of in- surance s'xty-five per centum thereof, third year of insurance seventy-five per centum thereof, fourth year of insurance eighty- five per centum thereof, fifth year of insurance ninety-five per centum thereof, and for each year thereafter one hundrd per centum thereof) shall not exhibit at any age a lower death rate than that shown at the corresponding age and duration by the British Offices Select (M) Mortality Table. 2. The rate of interest assumed in computing premiums and reserves shall not be less than three, nor more than four per * centum per annum. 1950d (Ch. 536, 1909, in effect June 22, 1909.) Valuation of policies; industrial insurance. Section 1950d. 1. Policies of industrial insurance on which the premiums are payable monthly or oftencr shall be valued to produce reserves not less than those computed on the "Standard Industrial Mortality Table" and the ''Substandard Industrial Mortality Table" based on the exper"ence of the Metropolitan Life Insurance Company, with interest at three and one-half per centum per annum. 113 LIFE COMPANIES. 1950m Valuation; annuities. 2. Annuities shall be valued to produce reserves not less than those computed on "McClintock's Tables of Mortality among annuitants," with interest at three and one-half per centum per annum; provided that any table not exhibit'ng at any age a higher death rate than that shown at the corresponding age and duration by the "British Offices Annuity Tables 1893," may be used. Annuities granted in any policy of life insur- ance may be valued in like manner except that annuities de- ferred for ten years or more may be valued on the table of mortality used for computing the premiums. Valuation; disability. 3. The reserves computed on policies insuring aga'nst dis- ability because of sickness or accident shall not be less than those determined according to the ''British Friendly Society Table 18;T6 to 1880," w'th interest at three and one-half per centum per annum. The commissioner may vary the standards in cases where the use of such table is impracticable, and may also require additional reserves in case of hazardous occupations. Valuation; exception; policies issued prior to 1907. 4:. This section shall not apply to any policies issued prior to 1907. 1950m (Ch. 668, 1907.) Limitation of expense provision in premiums. Section 1950m. After the year 1907 no foreign life insur- ance company shall issue or deliver any policy in this state, and no domestic life insurance company shall issue or deliver any policy, wherein the pi'3sent value of the premiums stip- ulated to be paid shall exceed the sum of: a. The net single premium which will mature the policy according to its terms (exclusive of the provisions mentioned in subdivision b) such present value and net single premium to be computed on the basis of the table of mortality adopted and the rate of nterest assumed; and b. An amount as a provision for expenses and contingencies equal to one-third of the net single premium on an ordinary- life policy insuring the same sum and issued at the same age, computed according to the Amer'can Experience table of mor- tality with interest at three per centum per annum. 8-1. L. 1950n LIFE COMPANIES. 114 First and subsequent years. The amount provided for expenses and contingencies for any policy year (as a measure for first and subsequent years) shall not exceed: (1) In the first year, the difference between the mortality charge computed on the basis of no deposit for such year and the level premium on a twenty annual premium payment life policy insuring the same sum and issued at the same age and computed upon the same table of mortality and rate of in- terest, and the maximum provision under subdivision b, com- puted on the American Experience table of mortality with interest at three per centum per annum, together with the ex- cess, if any, of the first year's premium over the largest subse- quent annual premium en such policy, provided the first year's expense charge on any policy shall in no case exceed the dif- ference between the premium and the mortality charge for such year. (2) In any one of the four succeeding years, one and one- half the amount which would be available under a level dis- tribution of the maximum provision under subdivision b; over the premium paying period of the policy, computed upon the American Experience table of mortality with interest at three per centum per annum. (3) In any year after the fifth year, the amount which would be available under a level distribution of the maximum pro- vision under subdivision b, over the premium paying period of the policy, computed upon the Am.erican Experience table of mortality with interest at three per centum per annum. Exceptions. This section shall not apply to policies of industrial in- surance. 1950n (Ch. 657, 1907.) Expenses; first year; total; aniiual report; form. Section 1950n. Every foreign life insurance company do- ing business in this state or having in force any policies issued in this state, and every domestic life insurance company, shall, beginning with the first day of March, 1909, and on the first day of March each year thereafter, as of the calendar year pre- ceding, make a report in writing to the commissioner of insur- ance in the following form : Report of of expense charges and expendi- tures for the year ending December 31, 19 . . 115 LIFE COMPANIES. 1950n FIRST YEAR BUSINESS. (a) Total expense charges of first year contained in premiums for the first year of insurance received in said calendar year $ • (b) Total expenses incurred or paid: 1. For commissions on first year's premiums $. 2. For advances to agents $ . 3. For advertising $ . 4. For such part of the expenses of medical examinations and inspection of risks not actually paid from sav- ings on mortality $ . 5. The due proportion well and truly ascertained of all other epenses properly chargeable to first year's business, exclusive of expenses for medical exam- inations and inspections of risks actually paid from gains on mortality, and of investment ex- penses, taxes, fees and licenses, actually paid from the savings on interest and the contingency re- serve: For agency supervision $ For home office $ . . . . For other items $ Total $. Total first year's expenses $ . TOTAL BUSINESS. (3) Total expense charges becoming available in said calendar year * (d) Expenses for medical examinations and inspection of risks • ^ Amount actually paid from the gains on mortjility, to be deducted from above $ Balance of above expenses $ Total ; ^ Fees and licenses | Taxes $..•• Amount actually paid from savings on interest $ Contingency reserve $ Total to be deducted from above $ Balance of above expenses j All other expenses ^ Total expenses ^ Section 1950n is referred to in section 1950o. The form for total expenses issued by the commissioner under this section is as follows: 1950O LIFE COMPANIES. 116 Total Business. (c) Total expense charges becoming available in said cal- endar year $ , (d) Total expenses for said year: 6. Medical examination and inspection of risks $ 7. Deduct amount of same paid from gains on mortality $ 8. Balance, deducting (7) from (6) $ . 9. Fees and licenses $ 10. Taxes $ 11. Investment expenses .... $ 12. Total of 9, 10, and 11 $ 13. Amt. actually paid from savings on interest ... $ 14. Amount paid from contin- gency reserve $ 15. Total (13) and (14) $ 16. Balance, deducting (15) from (12) $. 17. All other expenses $. 18. Total expenses, add (8), (16) and (17) $. 19. Excess or deficiency of (c) over (18) $. 1950O (Ch. 657, 1907.) Limitation of first year expense. Section 1950o. No company mentioned in section 1950n, shall incur or expend or permit any person, firm or corporation to incur or expend on its behalf, or under any agreement with it, during any calendar year, for the purposes specified in sub- division b, in sect'on 1950n, an amount exceeding in the aggre- gate the total expense charges specified in subdivision a, in section 1950n. Section 1950o is referred to in section 1950t. 1950p (Ch. 657, 1907.) Limitation of aggrejate expense. Section 1950p. No company mentioned in section 1950n shall in any calendar year make or incur any expense, or per- mit any expenses to be made or incurred on its behalf or under any agreement with it, for all purposes (exclusive of such ex- penses for medical examinations and inspections of risks as are actually paid from the gains on mortality and of such invest- ment expenses, taxes, fees and licenses as are actually paid from the savings on interest and the contingency reserve), in an amount exceeding in the aggregate the total expense charges specified in subdivis'on c in section 1950n. Section 1950p is referred to in section 1950t. 117 LIFE COMPANIES. 1950q 1950q (Ch. 120, 1909, in effect May 13, 1909.) Agents; commissions and advances; limitation. Section 1950q. No company mentioned in section 1950n shall in any calendar year, on account of any policy, make or incur any expense or permit any expense to be made or incurred on its behalf or under any agreement with it * * * for commissions and advances to agents, greater than the expense charge becoming available on such policy in such calendar year. Section 1950q is referred to in section 1950t. 1950r (Ch. 657, 1907.) Compensation of agents to be agreed on in advance. Section 1950r. No such company, nor any person, firm or corporation en its behalf, or under any agreement with it, shall pay or allow any agent, broker or other person, firm or corpor- ation, for procuring an application for life insurance, for collect- ing any premium thereon or for any other service performed in connection thereT^^th, any compensation other than that which has been determined in advance. Section 1950r is referred to in section 1950t. 1950s (Ch. 657, 1907.) Bonuses and prizes prohibited. Section 1950s. All bonuses, prizes and rewards and all in- creased or add'tional commissions or compensations of any sort, based uDon the volume of any new or renewed business, or upon the aggregate of policies written or paid for, or upon any other contingency, are prohibited. Section 1950s is referred to in section 1950t. 1950t (Ch. 657, 1907.) Stock companies issuing non-participating bus.iness ex- cepted; industrial policies excepted. Section 1950t. Sections 1950o, ]950p, 1950q, 1950r, and 1950s, shall not apply to stock corporations, issuing and repre- senting themselves as issuing non-participating policies ex- eluively, nor to industrial policies. 1951 (1898; ch. 22, 1901; ch 6, 1903; ch. 263, 1905.) Investments by domestic life companies; business prohib- ited. Section 1951. Every such corporation organized under the laws of this state, may invest its funds and accumulations in stocks or bonds of the United States or of this state, or of any 1952 LIFE COMPANIES. 118 county, city, town or village, or duly organized school dis- trict therein, or in mortgages being first liens on real estate whether held in fee, or as leasehold running not less than twenty- five years, or in fee subject to leasehold, worth at least twice the money loaned thereon, or in the mortgage bonds of any rail- way or street railway company duly incorporated and organ- ized under the authority of this state ; and it may also make loans on the security of promissory notes amply secured by pledge of any of the bonds in which such insurance corpora- tions are hereby authorized to invest their funds, and everj' such corporation may not only loan to its policy holders, sums not exceeding one-half of the annual premiums on their poli- cies, upon note to be secured by the policies of the persons to whom the loans may be made, but may also make loans upon the security of its own pol'cies to an amount not exceeding ninety-five per cent of the cash surrender value of each such policy at the time of making any loan; and such corporation may invest its funds in other states, organized territories of the United States, and the D 'strict of Columbia, on like se- curities and under the same restrictions as in this state. No life insurance corporation organized under the laws of this state shall issue polic'es insuring fire, marine, accident or live stock risks, or do any banking business, except as otherwise provided by law. Section 1951 is referred to in 1987 (3). 1952 (1898; ch. 448, 1905.) Surplus in mutual life companies; deferred dividend pro- hibited. Section 1952. Every life insurance corporation doing busi- ness in this state upon the principle of mutual insurance, or the members of which are entitled to share in the surplus funds thereof may make distribution of such surplus as they may have accumulated annually, or once in two, three, four or five years as the directors thereof may from tim.e to time deter- mine. In determining the amount of the surplus to be distrib- uted there shall be reserved an amount not less than the aggre- gate net value of all the outstanding policies, said value to be computed by the American Experience Table of Mortality with interest not exceeding four and one-half per cent. Nothing in th^s section shall be construed to hereafter permit any such corporation to defer the distribution, apportionment or account- ing of surplus to policy holders for a longer period than five years, and on all policies,- hereafter outstanding, under the con- 119 LIFE COMPANIES. 1952a ditions of wh'ch the actual distribution is provided for at a definite or fixed period, the apportioned surplus shall be car- ried as a liability to the class of policies on which the same was accumulated. 1952a (Ch. 636, 1907.) Dividends ; annual apportionment of surplus to deduction. Section 1952a, Every life insurance company hav'ng in force any policy of insurance issued or delivered in this state upon the mutual or participatino: plan, shall annually, as of the thirty-first day of December, ascertain and determine the excess of its assets over all reserve liabilities and all other liabilities constituting its profits, savings, earnings or surplus, and also the amount of unapportioned surplus which it will retain there- from as a contingency reserve. After setting aside such unap- portioned surplus, such sums as may be requ'red for the pay- ment of authorized dividends upcn the capital stock, if any, and such sums as may properly be held for account of existing de- ferred d'vidend policies, the remaining surplus shall be appor- t'oned equitably to all other policies entitled to share therein. 1952b (Ch. 636, 1907.) Annual ascertainment and credit of dividend required; exceptions. Section 1952b. On all participating policies of life insur- ance heretofore or hereafter issued in this state, excepting policies of industrial insurance or of paid-up or temporary and pure endowment or other stipulated form of insurance issued or granted in exchange for lapsed or surrendered poli- cies and policies under the conditions of which the distribution «if profits, savings, earnings or surplus is deferred for more than one year from the date of the policy, and contingent upon the policy being in force and the insured living at the com- pletion of the period for which such distribution is deferred, the company shall annually ascertain and credit the share of each such policy in the profits, savings, earnings or surplus. Section 1952b is referred to in 1952d. 1952c (Ch. 636, 1907.) Dividends ; liability to policy. Section 1952c. 1. The amount of profits, savings, earnings or surplus so ascertained to be due to each such policy, together with the interest earnings and accretions thereto, shall be car- ried as a distinct and separate liability to such policy and shall, except as otherwise provided in contracts heretofore issued, be paid or applied or be subject to be withdrawn in each policy year, or be paid upon the maturity or termination of the policy. 1952d LIFE COMPANIES. 120 Dividend share for fractional year. 2. Policies which have become payable before the time when the next distribution would have been made, and after the date of the last previous distributicn, shall share in the same equi- tably and proportionally. Annual statement to commissioner of surplus and appor- tionment. 3. The company shall annually, on or before the first day of March, after the year 1907, file with the commissioner of in- surance in such form as he may require, a statement verified by the secretary and actuary, showing the amounts respectively of the unapportioned surplus, unpaid dividends, deferred dividend surplus mentioned in section 1952a and other surplus: and showing fully and in detail the method of ascertainment and apportionment of profits, savings, earnings or surplus on the policies within the provisions of section 1952b; the interest, mortalities and expense factors used :n making such ascertain- ment and apportionment, and the rate of mterest at which div- idends left to accumulate have been improved. 1952d (Ch. 120, 1909, in effect May 13. 1909.) Dividends; statement to insured; form. Section 1952d. Not less than thirty nor more than sixty days prior to the date of distribution of the dividend on any policy in any year after the year 1907, every company having in force in this state any policy within the provisions of section 1952b shall mail to the insured named in each policy, at his last known postoffice address, a statement of the apportionment of surplus to such insured according to the last dividend ascer- tainment, wh^ch statement shall be in the following form : Annual Statement of Dividend Apportionment for 19. .. On Policy No Name Mortality table Interest basis per cent. Gain from interest computed at ^er cent $ Gain from mortality charge computed at per cent. . . $ Gain from expense charge $ Gain from all other sources $ Total dividend credit for year $ Dividend credit preceding year $ Interest credit at per cent $ Total dividend credit 19 $ Interest earned by company, gross per cent, net per cent. Mortality gain actually experienced per cent. Hi*********** , Secretary. 121 LIFE COMPANIES. l»52g 1952f (Ch. 658, 1907.) Deferred dividends; ascertainment annually to class; for individual on request. Section 1952f. On all policies of life insurance heretofore or hereafter issued by any company doing business in this state under the conditions of which the distribution of profits, sav- ings, earnings or surplus is deferred for more than one year irom the date of the policy, and contingent upon the policy being in force and the insured living at the completion of the period for which such distribution is deferred, the company shall, as of the thirty-hrst day of December in each year, after the year 1907 : (a) Ascertain and set apart as to such policies as a class the amounts of profits, savings, earnings, or surpto then ac- cumulated to provide for the apportionment and distribution agreed upon in such policy contracts. (b) Ascertain upon the written request of the insured the i-ontngent share of every individual policy in such class, in the profits, savings, earnings or surplus so ascertained and set apart. Section 1952f is referred to in 1952i. 1952g (Ch. 658, 1907.) Deferred dividend; diversion prohibited. Section 1952g. No part of the amount of profits, savings, earnings or surplus so ascertained r^nd set apart to such class of policies under subdivision (a) of section 1952f, nor of the in- terest earnings or accret ons thereto, shall be diverted for di- vidends, expenses or surplus on account of any other class or classes of policies. 1952h (Ch. 658, 1907.) Deferred dividend ascertainment; report to commissioner. Section 1952h. The company shall, en or before the first day of March, in each year after the year 1908, file with the commissioner of insurance, a statement verified by the secre- tary and actuary showing fully and in detail the method of as- certainment of such profits, sav'ngs, earnings or surplus, the amount accumulated at the end of the preceding year, the additions thereto during the year, and the sources from which derived ; the deductions, if any, made, during the year, and the purposes thereof, and the amount accumulated at the end of the year; and a statement showing the number of such policies and the amount of insurance m force at the beginning of the 10521 LIFE COMPANIES. 122 year, the number and amount respectively issued, revived and terminated during the year, specifying the different modes of termination; and the number and amoimt of such policies in force at the end of the year. 19521 (Ch. 658, 1907.) Deferred dividend; statement to policy holder on request; form. Section 1952i. Every company having in force in this state any policy mentioned in section 1952f shall on written request from the insured under any such policy residing in this state forward by mail to such insured at his last known postoffice address, within thirty days, after receiving such request, and if the request shall so specify, in every calendar year thereafter while the policy is in force prior to and including the year of the final distribution agreed upon, a statement of the cont'n- gent share of such policy mentioned in subdivision (b) of sec- tion 1952f according to the last contingent share ascertainment prior to the mailing of such statement, which statement shall give the following items : Annual Statement of Contingent Shabe of Surplus for the Year Ending ,19 Number of policy Contingent share at beginning of year $ Interest at per centum for year on above contingent share $. . . . Other additions for year to above contingent share $ Total contingent share at end of year $ Net rate of interest earned by company for year. . . .per centum Date of distribution , 19 ... . This ascertainment and statement shall not be construed as any alteration or waiver of any of the terms and conditions of the policy. ., Secretary. 1953 Foreign life company; deposit of papers; appointment of attorney. Section 1953. Every life insurance corporation not organ- ized under the laws of this state shall, before doing business herein, deposit with the comm'ssioner of insurance a copy of its charter and a statement signed and verified by the affidavit of the president or vice-president and of the secretary in the form hereinafter prescribed for its annual statement; and also ; a written instrument duly signed by the president and secre- tary thereof, with the corporate seal affixed, and therein ap- point an attorney to reside in this state, specifyng his place of residence, upon whom and where any summons, notice or proc- 123 UPB COMPANIES. Id53b ess of any court of this state may be served, and stipulate that service of any such summons, notice or process upon any such attorney in any action brought upon any cause of action arising out of any business or transaction in this state shall be accepted irrevocably as a valid service upon such corporation, unless another attorney shall be subsequently appointed with like authority in his stead such authority shall be continued unrevoked while any liability remains outstanding against the corporation in this state, and such an appointment shall not be revoked until another be made and a like letter of attorney deposited. Every such serv-ce shall be as effectual for all pur- poses as if made on a corporation organized under the laws of this state. Section 1953 is referred to in section 2637 (9). 1953b (Ch. 127, 1907.) Application, copy of furnished on request. Section 1953b. Every person within the state holding a pol- icy of insurance issued by any life insurance company do'ng business in this state, shall be furnished by such company with a copy of the application upon which polcy was issued, upon demand made for such copy by the holder of such policy or by any person upon whose life such policy was issued. If such company wilfully neglect or fail for thirty days from the time of such demand, to furnish such person a copy of such applicat'on. it shall be forever barred from setting up by way of defense to any suit on such policy of insurance, any error, incorrectness, fraud or misrepresentation of the person making the same, or any mistake therein; and such application shall thereafter be taken and held, so far as the same may affect any claim under such polcy, or any gain secured thereby to be in all respects true and correct. 1953d (Ch 342, 1907.) Polidcal contributions, statement filed with commissioner. Section 1953d. As a condition precedent to the issuance of a license to transact life insurance business in th's state, every life insurance company shall file with the commissioner of in- surance a statement verified by its president and secretary, set- ting forth a schedule showing in detail, the moneys, property and other consideration paid or contributed, directly or indi- rectly, or used or offered or agreed to be paid in aid of any political party, company or organization, or for and in aid of any corporation, joint stock or other organization organized or 1953e LIFE COMPANIES. 124 maintained for palitical purposes or for or in aid of any can- didates for political office, or for iiomination for such office, or for the reimbursement or indemnification of any person for property so used; the names and address of parties, companies or organizations to whom paid, the time, place and amount so disbursed or paid, and that such disbursements have been truly entered upon the books of the company, together with such other information in relation thereto, as the commissioner of insurance may require. 1953e (Ch. 131, 1907.) Legislative expenditures, statement required. Section 1953e. As a condition precedent to the issuing of a license to transact life insurance business in this state, every life insurance company shall file with the commissioner of insurance a statement verified by its president and secre- tary, setting forth a schedule showing in detail; (a) the bills opposed or promoted by it during the preceding year; (b) the state in which such legislation was pending; (e) names and addresses of parties engaged as counsel or otherwise ; (d) the consideration paid each of them; (e) and the expenses of advertising, traveling, etc., and to whom paid; (f) and that such disbursements and expenses have been truly entered upon the books of the company, together with such other informa- tion in relation thereto, as the commissioner of insurance may require. 1953n (Ch. 584, 1907.) Gain and loss exhibit required, classes of business sepa- rated. Section 1953n. Every life insurance company doing busi- ness in this state, or having in force any policies issued or delivered therein, shall annually furnish the report required by section 1954 and with such report separately for its partic- ipating and non-participating business and its ordinary and industrial business a statement exhibiting the gains and losses separately for the first year's business and for the total busi- ness of the company upon blanks prepared by the commissioner in substantially the form heretofore required. Where a sepa- rate account of any items required on such statement shall not be kept as to the participating and non-participating or ordinary and industrial business of any company, such state- ment shall state what porportion of such items is apportioned to each kind of such business. Such company shall also furnish such other information in regard to said matters as the com- missioner of insurance may require. 125 LIFE COMPANIES. 1954 1954 (1898; ch. 237, 1903; ch..597, 1907.) Annual report; contents; publication; forfeiture. Section 1954. Every life insurance company doing business in this state shall on or before the first day of March in each year, file in the office of the commissioner of insurance an annual statement giving a complete and accurate exhibit of its business and financial condition signed and verified by the affidavits of the president and secretary, or if a foreign corporation by its resident managing officer in the United States, and covering the year ending on the preceding thirty-first day of December, and its business for that year, and exhibiting the following facts and items: (1) The name of the company. (2) Where located. (3) When incorporated and for what period. (4) Amount of capital stock or guaranty fund. (5) All the real property held by the corporation, the dates of acquisition, the names of the vendors, the actual cost, the value at which it is' carried on the company's books, the market value, the amounts expended during the year for repairs and improvements, the gross and net income from each parcel, and if any portion thereof be occupied by the company the rental value thereof, a statement of, and all purchases and sales made since the last annual statement, with particulars as to dates, names of vendors and vendees, and the consideration. (6) The amount of existing loans upon the security of real property in each state and foreism country. (7) The moneys loaned by the corporation to any person other than loans upon the security of real property above men- tioned and other than loans upon policies the actual borrowers thereof, the maturity and rate of interest of such loans, the securities held therefor, and all substitutions of securities in connection therewith, and the same particulars with reference to any loans made or discharged since the last annual statement. (S) All other property owned by the company or in which it has any interest (including all securities, whether or not recosmized bv the law as proper investments), the dates of acquisition, from whom acquired, the actual cost, the value at which the property is carried upon the books, the market value, the interest or dividends received thereon, during the year; also all purchases and sales of property other than real estate made since the last annual statement, with particulars as to dates, names of purchasers and sellers, and the consideration ; and also the income received and outlays made in connection with all such property. 1954 LIFE COMPANIES. 126 (9) Cash in office and in bank. (10) Premium notes and loans on policies in force. (11) Outstanding and deferred premiums on policies in force. (12) All other loans, investments and property. (13) All outstanding losses and policy claims. (14) All other liabilities and claims against the company. (15) Cash received for premiums. (16) Cash received for interest and rents. (17) Income from all other sources. (18) Paid for losses and claims. (19) Dividend of surplus to policyholders. (20) Paid for expenses. (21) All other expenditure. (22) All commissions paid to any persons in connection with loans or purchase or sales of any property and a statement of all payments for legal expenses, giving particulars as to date, amounts and names and addresses of payees. (23) All moneys expended in connection with any matter pending before any legislative body or any officer or depart- ment of government, giving particulars as to dates, amounts, names and addresses of payees, the measure or proceeding in connection with which the payment was made, and the interest of the corporation therein. (24) The names of the officers and directors of the company, the proceedings at the last annual election, giving the names of candidates and the number of votes cast for each and whether in person, by proxy or by mail. (25) The salary, compensation and emoluments received by officers, directors or employees and where the same amounts to more than three thousand dollars, also salary, compensation and emoluments of three thousand dollars or over received by any person, firm or corporation, with particulars as to dates, payees and the authority by which the payment was made; also all salaries paid to any representative either at the home office, or at any branch office, or agency, or agency supervision, also the commissions received by each general agent stated separately as to first year and renewal commissions, the amount paid to sub-agents, the amount paid out in expenses of the agency and the net compensation of the general agent. (26) The largest balances carried in each bank or trust com- pany during each month of the year. (27) All death claims resisted or compromised during the year, with particulars as to sums insured, sums paid and reasons assirrned for resisting or compromising the same in each case. (28) The rates of annual dividends declared during the year 127 LIFE COMPANIES. 1955 precise methods and factors by which such dividends have been declared. (29) A statement of any and all reserve or surplus funds held by the company and for what purpose they are claimed respectively to be held. (30) Number and amount of policy loans and rates of inter- est charged on such loans. (31) Number of policies and amount of insurance lapsed on which loans had been granted, giving net value of policies and amount of loans. (32) Am.ount separately paid insurance departments for ex- amination and valuation fees and all other payments not in- cluding statutory fees, licenses and taxes payable to the various states. (33) Amount of statutory fees, licenses and taxes paid for privilege of transacting business, separately: Company licenses, agents' licenses, filing *and department fees, advertising, retali- atory taxes, state taxes on premiums or income, local license or privilege tax. (34) Number and amount of Wisconsin policy loans. (35) Number and amount of loans on Wisconsin real estate. For any failure to make and deposit such annual statement or for wilfully making anv false statement therein every such corporation or officer so failing or m.aking such false statement shall forfeit five hundred dollars, and for every neglect to file such annual statement an additional five hundred dollars for QYery m.onth while ?^uch company shaH have any policy in force in this state until such statement be filed. It shall be the duty of the commissioner of insurance to pub- lish the information contained in such annual statement in the annual report of the insurance department for the information of policyholders. Section 1954 is referred to in 1953n. 1955 Revocation of license. Section 1955. If any such corporation shall violate or fail to comply with any provision of law applicable thereto or in case its capital shall be impaired and shall not be made good within such time as the commissioner of insurance shall re- quire, according to section ♦1968, it shall be the imperative duty of said commissioner to revoke any and every authority, license or certificate granted to such corporation or any agent thereof to transact business in this state, and no such corporation or 1955a MUTUAL BENEFIT SOCIETIES. 128 assent thereof phall thereafter transact any business of insur- ance in this state till asfain duly licensed, and shall ^*ve notice thereof as required in the case of fire insurance corporations. MUTUAL BENEFIT SOCIETIES. 1955a (1898; ch. 442, 1901; ch. 511, 1907) Organization; incorporators; members. Section 1955a. 1. No fraternal or beneficiary corporation, society, orde^* or association for the relief of members or ben- eficiaries or making life or casualty insurance or indemnity upon the mutual or assessment plan shall be incorporated until after a declaration signed by each of the incorporators, who shall be residents and citizens of this state, not less than nine in number, shall have been made in writing and sworn to by them, and filed in the office of the commissioner of insurance, setting forth that at least five hundred persons have made appli- cation in writing for membership in such proposed corporation, and in case of a life company have each been examined and recommended as insurable by a reputable physician, and who shall have deposited five dollars each, one thousand dollars of which sum shall be pledged for the payment of death losses. And the table- rates of assessment or liability of each person so pledged for membership shall be such that one assessment will realize at least one thousand dollars for a single death loss, over and above all sums required for expenses, reserves, emergencies or other purposes. Incorporation or admission of new societies; minimum rates; mortality tables; disability benefits. 2. No Fraternal beneficiary order or society not licensed to transact business within this state at the time of the passage of this act shall be incorporated within this state or be licensed or permitted to transact business within this state, unless its laws require the regular payment and collection of rates of assess- ments under whatsoever plan of business it has adopted not lower than those deduced from the national fraternal congress mortality table computed upon an interest assumption of four per cent which said mortality table is as follows: MUTUAL BENEFIT SOCIETIES. 1955a NATIONAL FRATERNAL CONGRESS MORTALITY TABLE. Ag-e. Number livint?. Number dying. Proba- bility of dying. Age. Number living. Number bilUyof dying. ! dying. 100,000 99,500 98,099 98,497 97,994 97,489 96.982 96,472 95,959 95.442 94,920 94,393 93,860 93,390 92,772 92,?15 91,648 91,070 90.479 80,873 89,251 88,611 87,951 87,2f8 86,560 85,826 85,065 84,275 83,453 82,596 81,702 80,767 79,786 78,757 77,674 76,5.34 75,332 74,062 72,720 71,302 500 501 502 503 505 507 510 513 517 522 527 533 540 548 557 56? 578 591 606 622 640 660 734 761 790 822 857 894 935 981 1,029 1,083 1,140 1,202 1,270 1,342 1,418 1,501 .0050000 .0050352 .oosoros .0051068 .0051535 .005?006 .0052587 .0053176 .0053877 .0054693 : 0055520 .0056466 .0057532 .0058723 .0060040 .0061487 .0064895 .0006977 .0069209 .0ffn708 .0074483 .0077657 .0081 1?9 .0084797 .0092870 .0114440 .01?! 460 .0128970 .0137512 .0146^67 .0157054 .0168587 .0181200 .0194991 .0210513 a. 62, «S. 64 65 66, 67 68 69 70 71 72 73 74 75 76 77 78 79 90 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 96 «9.8r)l 68,213 66.532 64,754 62.874 60.889 58,795 56.539 54.2n 51.841 49 ..^02 46.6^ 43.913 41,081 88.172 35,203 32.194 29,168 26,1-2 2S.175 20,270 17,471 14.812 12,.?27 10,047 7,997 6,197 4,658 3.381 2,358 1.570 991 587 82S 162 78 29 10 8 1.BB3 1.081 1.T78 1,890 1,985 2,094 2.206 2,318 2.4.'!0 2.539 2,645 2.744 2.882 2.909 2.909 3.009 8.028 8.015 2.977 2.905 2.799 2,659 2.4S5 2.290 2,0% 1.800 1,539 1.277 1.023 788 579 404 264 161 89 44 19 7 8 .0227504 .0246484 .02072iO .0290880 .0315711 .034^904 .0t09f;20 .0447758 .0189767 .05-64S9 .05S8122 .0644 t'f .0702^8 .0777795 .0854777 .093^77 .1034010 .113>W45 .i2S.r)00 .1S»!858 •.1^21951 .1577«94 .1849=109 .2040410 .2250844 .24334t) .2741-20 . .302-732 .8^41