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COMMONWEALTH OF ^MASSACHUSETTS 
 
 RELATING TO 
 
 Insurance ani Insurance Conipnies, 
 
 EMBRACING ALL THE 
 
 GENERAL LAWS IN FORCE NOVEMBER 1, 1870 : 
 
 WITH MARGINAL REFERENCES TO THE DECISIONS OF THE SUPREME 
 JUDICIAL COURT. 
 
 Consolidated and Arranged ^ \ ’ j I I '() j l- 
 
 By JOHN E. S A N F O R D ' >’ <■ I ' /. ' Aj 
 
 Insurance Commissioner: ,'iS 
 
 And in 1870, with Additions from Subsequent Legislation, J? 
 
 By JULIUS L. CLARKE, 
 
 Insurance Commissioner. 
 
 BOSTON : 
 
 WRIGHT & POTTER, STATE PRINTERS, No. 79 MILK STREET, 
 (Corner of Federal Street). 
 
 1870 . 
 
 
f '"*' ’ 
 
 ' 'V;^ 
 
 3 1 e, <) 
 
 l\/\ ^ S /s^ 
 
TABLE OF CONTENTS 
 
 [See Index at end of the Volume.] 
 
 Page. 
 
 INSURANCE DEPARTMENT.— APPOINTMENT, POWERS AND DUTIES 
 
 OF THE INSURANCE COMMISSIONER, 1-4 
 
 GENERAL PROVISIONS RELATING TO INSURANCE COMPANIES IN- 
 CORPORATED IN THIS STATE, 5-22 
 
 Applications for Acts of Incorporation, or for Alteration or Extension of Char- 
 
 ; ters, 5, 6 
 
 Powers, Duties and Liabilities of Insurance Companies, 6-11 
 
 Taxation of Insurance Companies, 11-13 
 
 Tax on Corporate Shares or Franchise, 13-17 
 
 Annual Statements, IT 
 
 Insolvent and Fraudulent Insurance Companies, 18, 19 
 
 Dissolution of Insurance Companies, 19-21 
 
 Amendment or Repeal of Charters, 22 
 
 JOINT STOCK INSURANCE COMPANIES, 23-29 
 
 Investment of Capital, 26, 27 
 
 Risl. and Policies, 28 
 
 Impaiiment of Capital, 29 
 
 MUTUAL FIRE INSURANCE COMPANIES, 30-40 
 
 Assessments, 34-40 
 
 STOCK AND MUTUAL (COMBINED) INSURANCE COMPANIES, . . 41, 42 
 
 , MUTUAL MARINE, AND MUTUAL FIRE-MARINE, INSURANCE COM- 
 
 I PANIES, 43-47 
 
 LIFE INSURANCE COMPANIES, 48-52 
 
 INSURANCE COMPANIES OF OTHER STATES AND FOREIGN COUN- 
 TRIES, 53-64 
 
 Conditions of Admission to do Business in this State, 53-55 
 
 General Agent and Attorney, 55, 56 
 
 Brokers, 56, 57 
 
 Agents, 57-60 
 
 If Annual Statements, 60-62 
 
 ) Taxes, Fees, &c., 62, 63 
 
 I Miscellaneous Provisions, 63, 64 
 
 GENERAL PROVISIONS RELATING TO ALL INSURANCE COMPANIES 
 DOING BUSINESS IN THIS STATE, WHEREVER CHARTERED 
 
 OR ORGANIZED, 65-73 
 
 Agents, 65 
 
 Taxes and Fees, ' 65, 66 
 
 ' Annual Statements, . . . . . 66-71 
 
 1 Miscellaneous Provisions, 71-73 
 
 j PREVENTION OF FRAUDS ON INSURANCE COMPANIES, ... 74, 75 
 
 INQUESTS IN CASES OF FIRE, 76, 77 
 
 I INDEX, 79 
 
NOTE. 
 
 The general laws of this Commonwealth relating to Insurance, 
 enacted prior to the year 1860, were consolidated in the General Stat- 
 utes, which took effect in that year. Since that time nearly fifty 
 different Acts have been passed, modifying the law in many and 
 important respects. 
 
 The partial editions of these supplemental insurance laws, being 
 exhausted, it would have involved much less labor to collect and print 
 in their consecutive order, as heretofore, the several Acts as they are 
 found in the public statute books, — leaving the reader to ascertain the 
 law as it now stands by a comparison of their separate provisions. 
 This, if it does not involve some skill, is troublesome to practical busi- 
 ness men. An attempt has therefore been made to digest into one 
 text all the general insurance laws now in force. 
 
 Other provisions of the General Statutes, not found in the chapter 
 (fifty-eight) specially devoted to Insurance Companies, but applying to 
 them in common with other corporations, have also been incorporated. 
 The same is true of the statutes since enacted. 
 
 It has been found necessary in many cases to change the phraseology 
 of the consolidated Acts, by omitting formal and repeated words and 
 obsolete provisions. A few verbal changes have also been made of 
 purpose. For example, the wmrd foreign^ often inaptly applied, both 
 in point of sense and spirit, to com.panies of other States, has been 
 wholly disused, except in its appropriate connection with companies 
 of other countries. 
 
 The purpose has been to present the laio exactly as it now stands ; 
 and in order that the legal accuracy of the text may be easily tested, 
 marginal references to the consolidated Acts are in all cases given. 
 
 For the convenience of those who desire the light thrown u})on the 
 statute law by inter})retations of the Supreme Judicial Court, refer- 
 ences to its decisions, as far as published, are also made in the margin. 
 
 One im])ortant object will have been gained, if those who are willing 
 to violate the law can no longer plead ignorance of its provisions. 
 
insurance laws. 
 
 insurance department. -appointment, powers and 
 
 DUTIES OE THE INSURANCE COMMISSIONER. 
 
 Section 1. The Governor, by and with the advice and Appoint- 
 consent of the Council, shall appoint some suitable person to H'lV/i' 
 be Insurance Commissioner, who shall, unless sooner re- 
 moved by the Governor, hold his office for the term of three T.rn,of 
 years from the date of his commission and until his succes- 
 sor is appointed and qualified. 
 
 Section 2. The Commissioner shall receive an annual and 
 salary of two thousand dollars. There shall also be allowed IFr 
 and paid out of the fees received from life insiirauce 'cdm- a 
 
 panies as compensation for the valuation'of policies qn liyesj 
 all the expenses incurred for actuarial and clerical assistance 
 employed in making such valuation, and all the 'incidental 
 and contingent expenses connected therewith. One-fifth of 
 the amount received, if so much then remains unexpended, 
 shall be allowed and paid for the actuarial services of the’ 
 Commissioner : provided, that the amount so allowed and 
 
 paid in any one year shall not exceed the sum of three 
 thousand dollars. 
 
 Section 3. The Commissioner may appoint a clerk, who ci.rk. 
 shall receive an annual salary of two thousand dollars. Tlie saiarp. 
 salaries of the Commissioner and of his clerk shall be paid 
 monthly out of the treasury of the Commonwealth. is®;!!;'}: 
 
160 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 ToTisi.and SECTION 4. The Commissioner shall risit and examme 
 insurance company incorporated in this State, when re- 
 by five or more persons, each of whom is 
 a stockholder or creditor, or pecuniarily interested in suci 
 company ; and also whenever he deems an examination nec- 
 essary. At such times he shall have free access to its books 
 and papers, and shall thoroughly inspect and examine all its j 
 afi’airs, and make inquiries such as are necessary to ascer- \ 
 ■tain its condition and ability to fulfil its engagements, and 
 whether it has complied with all the provisions of law ap- 
 plicable to its transactions. 
 
 Section 5. He may at any time require the agents o 
 Sr any insurance company not incorporated by the legislature 
 of this Commonwealth, to exhibit the books kept by them 
 relating to such agencies, and to make answer in writmg 
 and under oath to all reasonable questions proposed by him, 
 in order to elicit a full statement of the business done for 
 the company represented by such agent. Any agent refus- 
 ing or neglecting for thirty days to answer such interroga- 
 tories shall be deemed not to have complied with the pro- 
 visions of the laws of this State ; and if he continues to act 
 as such agent, he shall be liable to a fine not exceeding one 
 
 thousand dollars for each offence. 
 
 Section 6. He may summon and examine under oath, 
 which he may administer, the directors, officers and a^ent 
 of any insurance company, and such other persons as he 
 thinks proper, in relation to the affairs, transactions and con- 
 dition of such company. Whoever without justifiable cause 
 refuses to appear and testify when so required, or obstructs 
 the Commissioner in the discharge of his duty, shall for each 
 offence be punished by a fine not exceeding one thousand 
 dollars, or by imprisonment not exceeding one yeai . 
 
 Pep*-'ty for 
 ' ’ to 
 
 Penalty for 
 refusal to 
 testify, &c. 
 
161 
 
 POWERS AND DUTIES OP COMMISSIONER. 3 
 
 Section 7. When in his opinion an insurance company, to report 
 its officers or agents, have violated any law of the State rela- ^ g 
 tive to such company, he shall forthwith report the facts, 
 with such statements and remarks as he deems expedient, to 
 the Secretary of the Commonwealth, and he shall give notice Attomey- 
 
 General to 
 
 of the same to the Attorney-General, who shall at once pros- prosecute, 
 ecute said company, officer or agent therefor. 
 
 Section 8. He shall annually in September furnish to the to furnish 
 
 forms for re- 
 insurance companies in this State, and to the agents known ^ ^ ^ 
 
 to him of insurance companies not incorporated in this State 
 
 and doing business therein, two or more printed copies of 
 
 the forms of returns to be made by them. 
 
 Section 9. Upon some day in each year, designated to value life 
 
 policies. 
 
 by him, he shall calculate the existing value of all outstand- 
 ing policies of life insurance in companies authorized to 
 make insurance on lives in this State. 
 
 Section 10. He shall keep and preserve in a permanent Tokeeprec- 
 
 ^ ^ ^ ^ ordofhis 
 
 form a full record of his proceedings, including a concise 
 statement of the condition of each company visited or ex- 
 amined by him. 
 
 Section 11. He shall annually, at the earliest practicable to make an- 
 
 ^ nual report. 
 
 date after the returns are received from the severel insur- lo. 
 
 ance companies, make a report to the legislature of the gen- 
 eral conduct and condition of the corporations visited by him 
 since his last annual report, with such suggestions as he 
 deems expedient, and shall include therein an aggregate of 
 the calculated values of all outstanding policies of life in- 
 surance ; and in connection therewith shall prepare an ab- 
 stract of all the returns and statements made to him by 
 insurance companies and agents. Such report shall be 
 printed on or before the first Wednesday of January. 
 
 Section 12. The Commissioner shall visit and examine to visit and 
 
 ... examine 
 
 every Loan and Fund Association incorporated in tliis State, 
 
 ^ ' Corporations 
 
 G. 8. 69, §10 
 
4 INSURANCE LAWS OF MASSACHUSETTS. 
 
 whenever requested in writing by five or more persons, each 
 of whom is a stockholder or creditor, or pecuniarily inter- 
 ested in said association, and also whenever he deems it 
 necessary ; at which times he shall have free access to its 
 books and papers, and shall thoroughly inspect and exam- 
 ine all its affairs, and make all inquiries necessary to ascer- 
 tain its condition, its ability to fulfil all its engagements, and 
 whether it has complied with all provisions of law applicable 
 to its transactions. Upon such examinations the Commis- 
 sioner shall have the powers and perform the duties which he 
 has and 'performs in the examination of insurance companies. 
 
 wnStSfof Section 13. The Commissioner shall annually, on orbe- 
 
 ture, and vi- fore the first Wednesday of January, submit to the legislature 
 
 olations of ^ , 
 
 law to Attor- a rcport in print of the general conduct and condition of the 
 
 G.s. 69, § 11. g0YQpal loan fund corporations, with such suggestions as he 
 deems expedient ; and if in his opinion any such corporation 
 has violated any law relative to such associations, he shall 
 forthwith present the facts to the Attorney-General, who 
 udv osecute the association or its officers, as the case may 
 such violation. 
 
 To report re- SECTION 14. The Commissioner shall report annually to 
 
 C6lptiS^ 
 
 bondf^® fhe legislature all the receipts and expenditures of his de- 
 
 1867 267 § 9 
 
 ’ partment, and shall give bond with sufficient sureties to be 
 approved by the Treasurer in the sum of ten thousand 
 dollars for the faithful discharge of all the duties of his 
 office. 
 
 [JFbr other Powers and Duties of the Insurance Commis- 
 sioner^ see sections 62, 63, 65, 70, 72, 90, 99, 117, 168, 
 181, 211, 212, 214 and 215.'] 
 
GENERAL PROVISIONS. 
 
 5 
 
 GENERAL PROVISIONS RELATING TO INSURANCE COMPA- 
 NIES INCORPORATED IN THIS COMMONWEALTH. 
 
 [Applications for Acts of Incorporation, or for Alteration 
 OR Extension of Charters.] 
 
 Section 15. Persons intending to apply to the legislature 
 for an act of incorporation, and corporations intending to 
 apply for an alteration or extension of their charters, shall 
 •give notice of such intended application by an advertisement, 
 at least four weeks immediately preceding the session at 
 . which the application is to be made, in some newspaper 
 pi luted in the , county where such corporations are, or are 
 intended to be, established ; such newspaper shall be desig- 
 nated by the petitioners and approved by the Secretary of 
 the Commonwealth. 
 
 Section 16. The notice of an application for an act of 
 incorporation shall specify the amount of capital stock re- 
 quired ; and if. the notice is for an alteration or extension 
 of any charter already granted, it shall specifically state the 
 same. 
 
 Section 17. Proof of the publication of the notice re- 
 quired in the preceding sections, may be made by the affi- 
 davit of the printer or publisher of the newspaper in which 
 such publication is made ; which affidavit and the petition 
 to which it relates shall be presented to the general court 
 within the first ten days of the session. The form of proof 
 of publication of notice herein authorized shall not be con- 
 strued to exclude any other equally satisfactory evidence 
 thereof. 
 
 Notice to be 
 given of peti- 
 tions for 
 charters or 
 amendments 
 thereof. 
 
 G. S, 2, § 10. 
 
 To specify 
 capital or 
 amendment 
 asked for. 
 
 G. S. 2, § 11. 
 
 Proof of no- 
 tice. Peti- 
 tion when to 
 be presented. 
 G S. 2, ^ 12. 
 1862, 91, § 3. 
 
164 
 
 
 6 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 k 
 
 Section 18. Whenever it appears upon satisfactory evi- 
 
 Unavoidable 
 accident, 
 
 toe pett”* deuce under oath, that the notice required to be given by the 
 
 dS^’^raJl^ fifteenth section was omitted to be given by reason of any 
 1862, 91, M- e ./ J 
 
 unavoidable accident, without default on the part of the peti- 
 
 Proviso. 
 
 Waiver or 
 admission of 
 
 tioner or applicant, or that the subject-matter of the petition 
 or application did not admit of such previous notice, the 
 notice shall be accounted sufficient, if given for the period of 
 time therein named as soon as such omission was discovered 
 by tlie petitioner or applicant, or within a reasonable time 
 after such subject-matter arose or became known : provided^ 
 such petition or application is presented within thirty days 
 after the first day of the assembling of the legislature. 
 
 Section 19. Whenever any petition is presented within 
 
 § 2 . period of thirty days after the assembling of the legisla- 
 
 ture, and it appears upon satisfactory proof that all the par- 
 ties having rights or interests in the subject-matter thereof 
 have waived notice, or have received satisfactory notice there- 
 of, by writing signed by them, no other or further proof of 
 "otice shall be required. 
 
 General pow- 
 ers, duties, 
 &c. 
 
 G.S.58,U2. 
 
 To give no- 
 tice of organ- 
 ization, &c. 
 G S.58, §14. 
 5 Allen, 446. 
 9 Allen, 483. 
 
 First meet- 
 ing, how 
 called 
 
 G.S.58,§ 13. 
 16 Mass. 94. 
 
 3 Met. 282. 
 
 5 Allen, 446. 
 
 Lr«^. £RS, Duties and Liabilities of Insurance Companies.] 
 
 Section 20. Insurance companies incorporated in this 
 State may exercise the powers and shall be subject to the 
 duties and liabilities herein provided, so far as consistent 
 with their respective charters. 
 
 Section 21. Every such company shall give notice in 
 writing to the Secretary of the Commonwealth, of the 
 acceptance of its charter and organization under the same 
 within one year from the date thereof, or the same shall be 
 void. 
 
 Section 22. The first meeting of such companies here- 
 after organized shall be called by a notice signed by one 
 or more of the persons named in the act of incorporation, 
 
 i 
 
GENERAL PROVISIONS. 
 
 setting forth the time, place and purposes of the meeting, 
 which shall be delivered to each member seven days at least 
 before the meeting, or published in some newspaper of the 
 county in which the company is established, or if there is no 
 such paper, in some newspaper of an adjoining county. 
 
 Section 23. All matters proposed to be acted , upon at 
 any meeting of such companies shall be specified in the call 
 for the same. 
 
 Section 24. When by reason of the death, absence or 
 other legal impediment, of the officers of any such company, 
 there is no person duly authorized to call or preside at a 
 legal meeting, any justice of the peace in the county where 
 the corporation is established may, on a written application 
 of three or more of the members, issue a warrant to either 
 of them, directing him to call a meeting by giving such 
 notice as was previously required by law ; and the justice 
 may in the same warrant direct such person to preside at 
 the meeting until a clerk is duly chosen and qualified, if no 
 officer is present legally authorized to preside. 
 
 Section 25. The corporation, when so assembled, may 
 elect officers to fill all vacancies, and act upon such other 
 business as may by law be transacted at a regular meeting. 
 
 Section 26. All such companies, where no other pro- 
 vision is specially made, may in their corporate name sue and 
 be sued, appear, prosecute, and defend to final judgment 
 and execution ; have a common seal, which they may alter at 
 pleasure ; and elect, in such manner as they determine, all 
 necessary officers, fix their compensation, and define their 
 duties and obligations. 
 
 Section 27. Such companies may adopt by-laws for con- 
 ducting their business, not repugnant to their respective 
 charters or the laws of the State, but no such company shall, 
 by any condition, restriction, or stipulation, in its by-laws or 
 
 Call to spec- 
 ify proposed 
 busine.«s. 
 G.S.58 §15 
 14 Gray, 440. 
 
 In case of 
 disability of 
 officers, jus- 
 tice may call 
 meeting. 
 
 G. S. 68, § 5. 
 8 Cush 93. 
 
 May elect 
 officers, &c., 
 at such meet- 
 ing. 
 
 G S. 68, § 6. 
 
 General pow- 
 ers. Seal. 
 
 G. S. 68, § 1. 
 10 Mass 91. 
 7 -Met. 592. 
 
 By-laws, Ve- 
 nue of ac- 
 tions. Lim- 
 itation of 
 suits 
 
 G.S.58, § 16. 
 4 Met 2i2. 
 
 6 Gray, 174, 
 185, 596 
 
 7 Gray, 61. 
 
166 
 
 
 INSURANCE LAWS OF BIASSACHUSETTS. 
 
 I 
 
 By-laws. 
 
 G. S 68, § 7. 
 1865, 236. 
 
 8 Met, 321. 
 See sects. 78, 
 101, 136, 151. 
 
 Penalties for 
 breach of. 
 
 Vice-presi- 
 dent, elec- 
 tion, powers 
 and duties 
 of. 
 
 1864, 113, §§ 
 
 1,2 
 
 Secretary 
 and treasur- 
 er to give 
 bond 
 
 G.S.58,§ 17. 
 
 Directors to 
 furnish 
 statement of 
 their affairs. 
 G. S. 58, § 19. 
 
 policies, designate the county in which any suit shall be 
 brought against the company, or limit the term of commenc- 
 ing such suit to a less period than two years from the time 
 when the right thereto accrues. 
 
 Section 28. Such companies may by their by-laws, where 
 no other provision is specially, made, determine the manner 
 of calling and conducting their meetings ; the number of 
 members that shall constitute a quorum ; the mode of voting 
 by proxy ; the mode of selling shares for the non-payment of 
 assessments ; and the tenure of office for the several officers. 
 They may annex suitable penalties to such by-laws, not ex- 
 ceeding tlie sum of twenty dollars for one offence ; but no 
 by-law shall be made by a corporation repugnant to its char- 
 ter, or the laws of the State. 
 
 Section 29. Any such company may, by its by-laws, 
 provide for the election annually of a vice-president, who 
 shall be sworn to the faithful performance of his duties be- 
 fore entering upon the discharge thereof. Policies, checks 
 nd other instruments, signed by the vice-president, shall 
 ,ave the same force and effect as if signed by the president 
 or two directors. The vice-president shall perform such 
 other duties as are prescribed by the by-laws or directors. 
 
 Section 30. The secretary and treasurer of such com- 
 panies shall give bond in such sum as is required by the 
 directors, for the faithful discharge of their respective duties. 
 
 Section 31. The directors of such companies shall, when 
 required, furnish to the legislature, or to a committee there- 
 of, or to the Insurance Commissioner, a statement of their 
 affairs, signed by the president and secretary, and sworn by 
 them to be correct according to their best knowledge and 
 belief, and shall submit to an examination on oath concern- 
 ing the same. 
 
GENERAL PROVISIONS. 
 
 9 
 
 Section 32. Investments of the funds of an insurance 
 company shall be made in its corporate name ; and funds of 
 such companies as classify their risks, shall be kept and in- 
 vested separately, so as to designate the assets belonging to 
 each class. 
 
 Section 33. No member of a committee or officer of a 
 mutual marine, mutual fire, or mutual life insurance com- 
 pany, charged with the duty of investing its funds, shall 
 borrow the same, or be surety for such loans to others, or 
 directly or indirectly be liable for money borrowed of the 
 company. 
 
 Section 34. The Treasurer of the Commonwealth in his 
 official capacity shall take and hold on deposit the securities 
 of any insurance company incorporated under the laws of 
 
 Funds and 
 investments, 
 how kept 
 and made. 
 G.S.58, §20. 
 See sect. 113. 
 
 Investing 
 officers not 
 to borrow. 
 
 G. S. 58, § 21. 
 
 Treasurer to 
 hold securi- 
 ties in cer- 
 tain cases. 
 Income and 
 exchange of. 
 
 G.S.58, §63. 
 
 this State, which are deposited by any such company for the 
 purpose of complying with the laws of any other State in 
 order to enable such company to commence business in such 
 State. The company depositing such securities shall have 
 the right to receive the income thereof, and at any time to 
 exchange the same according to the laws of the States in 
 which they are doing business. 
 
 Section 35. Every such company may convey lands to May convey 
 
 lands. 
 
 which it has a legal title. Q-s- 68, § 8. 
 
 Section 36. Mortgages on real estate, held by an insur- Mortgages 
 
 held by, may 
 
 ance company, shall be liable to be attached and taken and be sold on 
 
 execution. 
 
 sold on execution, in the manner provided in sections c^.s. 58 ,§ 22 . 
 seventy-five, seventy-six and seventy-seven, of chapter fifty- • 
 seven of the General Statutes, in respect to mortgages held 
 by banks. The secretary shall perform the duties therein 
 required of cashiers and clerks. 
 
 Section 37. Such companies shall have their office in the where to 
 city or town specified in their charter ; and when they estab- oaSst &"c.’, 
 
 to specify lo- 
 
 lish agencies in other cities or towns, all signs, cards, pam- 
 
168 
 
 
 10 INSURANCE LAWS OF MASSACHUSETTS. 
 
 phlets and advertisements exhibited or issued by them, shall 
 ' specify the city or town where the company they represent is 
 located. 
 
 Policies not SECTION 38. No insurance Company incorporated in this 
 
 to be issued 
 
 b^yond°tfrm Commonwealtli shall issue any policy for a period extending 
 
 is64,^277r§§ beyond the time for which it was incorporated, unless its act 
 
 1 ) 2 . 
 
 See sect. 218. of incorporation lias bccn renewed, extended or continued, 
 and then not exceeding the time of such renewal, extension 
 
 Penalty. OP contiiiuance. Any president, vice-president, director, sec- 
 retary or other officer or agent of any insurance company, 
 who issues or assents to the issuing of any policy contrary 
 to the provisions of this section, shall, upon conviction there- 
 of, be punished by a fine not exceeding five hundred dollars, 
 and shall be liable in an action of tort to the holder of any 
 such policy, for any damage he suffers or sustains by reason 
 of the issuing of the same. 
 
 Remedy in Section 39. When the officers, stockholders or members 
 
 equity for or , 
 
 cers“&c^* insurance company, or any of them, are liable for any 
 
 s.68,§i7. Qj. fQj, their acts or omissions respecting its busi- 
 
 ''O 
 
 '^ss, or when some of them are liable to contribute for 
 
 i3i», . r. ' ic paid by others on account of such debts, acts or omis- 
 sion.^ the party entitled may, instead of any remedy other- 
 wise provided, maintain a suit in equity in the supreme 
 judicial court. 
 
 To publish Section 40. Each insurance company in this State shall, 
 
 list of un- ^ r J 7 
 
 dends**^ once in every five years, publish in some newspaper in the 
 
 ■ ' ’ ‘ city of Boston, and also in some newspaper, if there is any, 
 
 in the county where the corporation is established, a list of all 
 dividends and balances which have remained unclaimed for 
 two years or more, with the names of the persons to whose 
 credit the dividends or balances stand ; which publication 
 shall be continued in three successive papers. 
 
GENERAL PROVISIONS. 
 
 11 
 
 Section 41. Nothing contained in the fifty-fifth chapter of 
 lie General Statutes relating to limited partnerships, shall 
 authorize such partnerships to be formed for the purpose of 
 banking or insurance. 
 
 [Taxation of Insurance Companies.] 
 
 Section 42. Insurance companies incorporated in this 
 State shall be liable to be taxed by any general law taxing 
 insurance companies. 
 
 Section 43. All fire, marine, and fire and marine insur- 
 ance companies, incorporated under the laws of this Com- 
 monwealth, shall pay taxes to the Treasurer of the Common- 
 wealth, as follows, to wit : — One per cent, per annum on all 
 premiums received for insurance either in cash or in notes 
 absolutely payable by any of such companies whether stock, 
 mutual or mixed, and one per cent, on all assessments made 
 by any mutual or mixed companies: provided, however, 
 that such taxes shall not be computed upon premiums re- 
 ceived for insurance in other States, which are subject to a 
 like tax in the State where received. 
 
 Section 44. The tax upon insurance companies provided 
 ^or in the preceding section, shall be levied upon all pre- 
 miums and assessments, after deducting therefrom unused 
 balances on notes taken for premiums on open policies, all 
 sums paid for return premiums on cancelled policies, and all 
 sums actually paid to other insurance companies incorporated 
 under the laws of this Commonwealth, or to the agents of 
 foreign companies located in this Commonwealth, for re-in- 
 surance on risks, for which a tax on the premium would be 
 due had no re-insurance been effected : provided, nothing in 
 this section shall be so construed as to admit of dividends in 
 scrip or otherwise, in stock, mutual or mixed companies, to 
 be called return premiums. 
 
 Limited 
 partnerships 
 not to be 
 formed for 
 insurance. 
 
 G. S. 55, § 1. 
 
 Liable to 
 taxation, 
 G.S.58,§19. 
 
 Tax on pre- 
 miums and 
 assessments. 
 1862,224, §1. 
 1865, 283, k 
 18. 
 
 See sect. 203. 
 
 Proviso. » 
 
 Tax on pre- 
 miums and 
 assessments 
 deflned. 
 
 1868, 165, §1. 
 
 Proviso. 
 
170 
 
 12 
 
 Semi-annual 
 returns to 
 treasurer. 
 1862, 224, §§ 
 6, 9. 
 
 Form of re- 
 turn defined. 
 1868, 165, §2. 
 
 Proviso, 
 1868, 283. 
 
 Mass. Hosp. 
 Life Ins. Co. 
 to pay taxes. 
 1862, 224, §§ 
 3, 4, 12. 
 
 1865, 283, § 
 18. 
 
 See sect. 203. 
 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 Section 45. Every such insurance company shall semh 
 annually, on or before the second Mondays of May and No- 
 vember, make a return to the Treasurer of the Commonwealth, 
 which shall be signed and sworn to by its president and sec- ■ 
 retary, and shall express the full amount of all premiums 
 received for insurance by said company, either in cash or 
 notes absolutely payable, and, if it be a mutual company, or 
 have a mutual department, of all its assessments made, dur- 
 ing the six months last preceding the first day of the month 
 of May or November, in which said return is required. 
 
 Section 46. Insurance companies, in making their re- 
 turns under the preceding section, shall state the full amounts 
 of premiums and assessments received, and deduct there- 
 from the sums paid for re-insurance, return premiums, and 
 unused balances provided for in section forty-four, and the 
 tax shall be computed on the net amount thus actually re- 
 ceived by said companies for the six months preceding the 
 time of making up said return : provided^ nothing in this 
 section or in section forty-four shall be construed to repeal 
 or modify the existing statute, which exempts insurance com- 
 panies from paying a tax “ upon premiums received for in- 
 surance in other States which are subject to a like tax in the 
 State where received.” 
 
 Section 47. The Massachusetts Hospital Life Insurance 
 Company shall pay to the Treasurer of the Commonwealth 
 upon all moneys and property in the possession or charge of 
 said company as deposits, trust-funds, or for purposes of in- 
 vestment, at the time for which the return of said company, 
 required by the following section, is made, the same rate* of 
 tax as is imposed upon or paid by savings banks or institu- 
 tions for saving on account of deposits. All property taxed 
 
 * Under existing laws, one-lialf of one per cent, per annum, payable, 
 one-balf of said tax semi-annually. 
 
GENERAL PROVISIONS. 
 
 13 
 
 ander this section shall be otherwise exempt from taxation 
 "for the current year in which the tax is paid. 
 
 Section 48. The Massachusetts Hospital Life Insurance 
 ' Company shall semi-annually, on or before the second Mon- -^9/ ’ 
 days of May and November, make a return to the Treasurer 
 of the Commonwealth which shall be signed and sworn to 
 by a majority of its board of directors, and shall include the 
 full amount of all moneys and property, in detail, in the 
 possession or charge of said company as deposits, trust-funds, 
 or for the purposes of investment, on the first day of May or 
 November, in which said return is required. 
 
 Section 49. The taxes herein before provided for, shall 
 be paid semi-annually within ten days after the first Mon- gee sect. 203. 
 days of June and December, each payment to be an assess- 
 * ment, by the treasurer, of one-half the annual percentage. 
 
 Section 50. 
 
 Every corporation neglecting to make return Penauie^for 
 as herein before required, shall forfeit fifty dollars for each 
 
 turns, or 
 false returns. 
 
 - Mr* 11 false returns 
 
 day of such neglect ; and any corporation that willuliy 1862, 224, § 9 
 makes false statements in any such return shall be liable to 
 pay a fine of not less than five hundred nor more than five 
 thousand dollars. 
 
 [Tax on Corporate Shares or Franchise.] 
 
 Section 51. Every insurance company chartered by this 
 
 Commonwealth, and having a capital stock divided into holders, «&c. 
 
 i XI j p 1865,283,§3. 
 
 shares, shall annually, between the first and the tenth day ot 
 May, return to the Tax Commissioner,^ under the oath of its 
 treasurer, a complete list of its shareholders, with tlieir 
 places of residence, the number of shares belonging to each 
 on the first day of May, the amount of the capital stock of 
 the corporation, its place of business, the par value and the 
 
 * The Treasurer of the Commonwealth is ex officio Tax Commis- 
 sioner. 
 
14 
 
 INSURANCE LAWS OP MASSACHUSETTS. 
 
 market value of the shares on said first day of May. Sue] 
 return shall, in the case of stock held as collateral security 
 state not only the name of the person holding the same, bu^^ 
 
 To return also the name of the pledger and his residence. The return 
 
 real estate. 
 
 shall also contain a statement in detail of the real estate 
 owned by such company, and subject to local taxation within.\ 
 the Commonwealth, and the location and value thereof. The 
 company shall also return the amount, value and location of 
 all real estate owned by it and subject to local taxation with- 
 out the Commonwealth. 
 
 TaxCommis- SECTION 52. The Tax Commissiouer shall ascertaiii, from 
 
 sioner to as- 
 
 of’ghlreland returns or otherwise, the true market value of the shares 
 
 i865tS'§4. of each such company, and shall estimate therefrom the fair 
 cash valuation of all of said shares constituting the capital 
 stock of such company on the first day of May next preced- 
 ing, which shall be taken as the true value of its corporate 
 franchise for the purposes of taxation. 
 
 And of real He sliall also ascertaiii and determine the value and 
 
 estate. 
 
 amount of all real estate owned by each such company, and 
 subject to local taxation, and to the deduction hereinafter 
 presided ; and for this purpose he may take the amount or 
 value at which such real estate is assessed at the place where 
 the same is located as the true amount or value ; but such 
 local assessment shall not be conclusive of the true amount 
 or value thereof. 
 
 Amoun^of Section 53. Every such company shall annually pay a 
 
 is 65 , 283 !§ 5 . upou its corporatc franchise at a valuation thereof equal 
 to the aggregate value of the shares in its capital stock, as 
 determined in the preceding section, after making the deduc- 
 tion provided for in this section, at a rate determined by an 
 apportionment of the whole amount of money to be raised 
 by taxation upon property in the Commonwealth during the 
 same current year, upon the aggregate valuation of all the 
 

 173 
 
 GENERAL PROVISIONS. 
 
 15 
 
 cities and towns in the Commonwealth for the preceding 
 f year : provided, that the amount of tax assessed upon polls proviso. 
 
 3 the preceding year, may be taken as the amount of poll-tax 
 ' to be deducted from the whole amount to be raised by taxa- 
 tion, for the purpose of ascertaining the amount to be raised 
 by taxation upon property. From the valuation, ascertained Deduction, 
 and determined as aforesaid, there shall be deducted an 
 amount equal to the value, as determined by the Tax Com- 
 missioner, of the real estate of such company subject to local 
 taxation, wherever situated. 
 
 Section 54. In case the value of the real estate located valuation of 
 
 within the Commonwealth, of any such company as deter- m^slk)n2^“’ 
 mined by the Tax Commissioner, is less than the value as unless, &c. 
 
 ’ 1865 , 283 , § 6 . 
 
 determined by the assessors of the city or town where such 
 real estate or machinery is taxable, said Commissioner shall 
 notify the company of such determination, and if said com- 
 pany does not, withiii one month from the date of such 
 notice, make application to said assessors for an abatement, 
 and does not, in case of the refusal of said assessors to grant 
 an abatement, forthwith prosecute an appeal in accordance 
 with the provisions of chapter eleven of the General Statutes, 
 and give notice thereof to the Tax Commissioner, such de- 
 termination shall be conclusive upon said company. The 
 Tax Commissioner may appear before the county commis- 
 sioners and be heard upon any appeal made to them, and 
 the decision of the county commissioners shall be conclusive 
 as to the value. 
 
 Section 55. The Tax Commissioner shall, as soon as Noticeof 
 
 may be after the first Monday in August, notify the treasurer 
 of each such company of the amount of its tax, ascertained ^ 
 
 as aforesaid, to become due and payable to the Treasurer of 
 the Commonwealth within thirty days from the date of such 
 notice : provided, that it shall not be due and payable earlier when paj- 
 
 real estate 
 
 amount of 
 
16 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 Right of ap- 
 peal. 
 
 Board of ap- 
 peal. 
 
 1865 , 283 , § 
 
 Hearing and 
 decision. 
 
 Officers and 
 books may 
 be examined. 
 1865 , 283 , § 
 
 17 . 
 
 Penalty for 
 neglect to 
 make re- 
 turns. 
 
 1865 , 283 , § 
 14 . 
 
 1866 , 291 , § 1 . 
 
 Treasurer 
 may sue for 
 taxes. 
 
 \ 
 
 than the first dav of November. Such notice shall also stat( 
 
 *' r 
 
 that within ten days after the date thereof, the company mai 
 apply for a correction of said tax, and be heard thereon be- 
 fore the board of appeal hereinafter established. 
 
 Section 56. The Treasurer and Auditor, together with' 
 one member of the Council to be named by the Governor, , 
 shall constitute a board of appeal, to which board any party 
 aggrieved by the decision of the Tax Commissioner upon 
 any matter arising under the five preceding sections, may 
 apply within ten days after notice of such decision. Upon 
 such appeal said board shall, as soon as may be, give a hear- 
 ing to such party, and shall thereupon decide the matter in 
 question, which decision shall be final. 
 
 Section 57. Every such company shall, when required, 
 submit its books to the inspection of the Tax Commissioner, 
 and its treasurer and directors to examination on oath in re- 
 gard to all matters affecting the determinations which are to 
 be made by said Commissioner. 
 
 Section 58. Any such company neglecting to make re- 
 turn according to the provisions of section fifty-one, or 
 refusing or neglecting, when required thereto, to submit to 
 the examinations provided for in the preceding section, shall 
 forfeit two per cent, upon the par value of its capital stock ; 
 which penalty may be recovered by an action of tort, brought 
 in the name of the Commonwealth, either in the county of 
 Suffolk or in the county where the company is located. Any 
 company failing to make said return shall also be liable, on 
 application of the Tax Commissioner therefor to any of the 
 justices of the supreme judicial court, to injunction restrain- 
 ing said corporation and the agents thereof from the further 
 prosecution of its business, until such return is made. If 
 any such company fails to pay the tax required by section 
 fifty-three, the Treasurer of the Commonwealth may forth- 
 
GENERAL PROVISIONS. 
 
 17 
 
 with commence an action of contract in his own name, as 
 treasurer, for the recovery of the same, with interest. Said 
 penalty may also be enforced, and said tax may also be col- 
 lected by information brought in the supreme judicial court 
 at the relation of the Treasurer of the Commonwealth, and 
 upon such information the court may issue an injunction 
 restraining the further prosecution of the business of the 
 company named therein, until all taxes due or penalties 
 incurred as aforesaid are paid, with interest and costs. ^ 
 Section 59. No taxes shall be assessed in any city or 
 town for State, county or town purposes, upon the shares in 
 the capital stock of such companies, for any year for which 
 they pay the tax herein imposed ; but nothing contained 
 herein shall be construed to exempt the owners of shares in 
 the capital stock of any such company from liability to taxa,- 
 tion for school-district and parish purposes. 
 
 Section 60. The tax herein imposed upon any such com- 
 pany, shall not affect nor prevent the imposition and collec- 
 tion of any other tax now authorized, or that may hereafter 
 be authorized, upon any especial privilege, franchise or busi- 
 ness, enjoyed or exercised by such company. 
 
 [id?r other provisions in detail regarding the taxation of 
 the corporate shares or franchise of Insurance Companies in 
 common loith other joint-stock corporations, see chapter 383 of 
 the Acts of 1865, and chapter 52 of the Acts g/1867.] 
 
 Further 
 
 remedies. 
 
 Shares ex- 
 empt from 
 local taxes, 
 except, &c. 
 1865, 283, § 
 15. 
 
 1866,196, § 1. 
 
 Tax here im- 
 posed not to 
 prevent oth- 
 er taxation. 
 1865, 283, J 
 18. 
 
 [Annual Statements.] 
 
 Section 61. Every insurance company incorporated in companies to 
 
 make and 
 
 this State shall, on or before the fifteenth day of January in gtatemeX^ 
 each year, transmit to the Insurance Commissioner, and file ? 867 ,? 67 ',^f§ 
 
 2, 3. 
 
 See sects 
 
 * Chapter 52 of tlic Acts of 18G7 also authorizes the Treasurer to 207-214 
 issue a warrant for the collection of such taxes, and limits the remedy 
 of the company for the exaction of an alleged illegal tax, to petition to 
 the supreme judicial court. 
 
176 
 
 18 
 
 Proceedings 
 against in- 
 solvent com 
 panics. 
 
 G. S. 58, § 6 
 1862, 131. 
 
 Injunction 
 may issue. 
 
 Receivers. 
 
 9 Allen, 329 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 in his office, a statement of its business, standing and affairs, 
 in the form prescribed or authorized by law, and adapted to 
 the business done by such company, signed and sworn to by 
 the president and secretary, and made out for the year end- 
 ing on the preceding thirty -first day of December. 
 
 [Insolvent and Fraudulent Insurance Companies.] 
 
 Section 62. If upon examination the Commissioner is 
 of opinion that a company is insolvent, or that its condition 
 is such as to render its further proceedings hazardous to the 
 public or to those holding its policies, he shall apply to a 
 justice of the supreme judicial court to issue an injunction 
 restraining such company, in whole or in part, from further 
 proceeding with its business until after a full hearing can be 
 had. It shall be discretionary with such justice either to 
 issue said injunction forthwith, or to give previous notice to 
 the company, and to cause a hearing -to be had on complaint 
 and answer or otherwise, as in ordinary proceedings in equity, 
 before determining whether an injunction shall be issued. 
 If issued forthwith, without such previous notice and hear- 
 ing, he may, after a full hearing of all parties interested, dis- 
 solve or modify the same or make it perpetual. He may 
 make such orders and decrees as may be needful to suspend, 
 restrain or prohibit, the further continuance of the business 
 of the company ; and may appoint agents or receivers to 
 take possession of the property and effects of the company, 
 subject to such rules and orders as are from time to time 
 according to the course of proceedings in equity prescribed 
 by the court or a justice thereof in vacation. 
 
 [ For proceedings by and against Insolvent Companies in 
 the Courts of Insolvency^ see Gen. Sts., cli. 118, sections 
 113-124.] 
 
 j 
 
GENERAL PROVISIONS. 
 
 19 
 
 Section 63. Whenever upon examination the Commis- injunction 
 sioner is of opinion that any insurance company incorporated 
 under the laws of this Commonwealth has exceeded its pow- 
 ers, or failed to comply with any of the rules, restrictions or 
 conditions provided by law, he may apply to a justice of the 
 supreme judicial court to issue an injunction restraining such 
 company in whole or in part from further proceeding with 
 its business until after a full hearing can be had ; and the 
 provisions of the preceding section are hereby extended to 
 proceedings under this section. 
 
 [Dissolution of Insurance Companies.] 
 
 Section 64. When a maiority in number or interest of May be dis- 
 
 *' solved on pe- 
 
 the members of an insurance company incorporated in this SJr? 
 State desire to close its concerns, they may apply by petition 7^Gray,’ii9,‘ 
 to the supreme judicial court, setting forth in substance the ^ Gray, 34 . 
 grounds of their application, and the court, after due notice 
 to all parties interested, may proceed to hear the matter, 
 and for reasonable cause decree a dissolution of the corpora- 
 tion. Corporations so dissolved shall be deemed and held ^ 
 extinct in all respects as if their charters had expired by 
 their own limitation. 
 
 Section 65. The charters of all fire insurance compa- suspension 
 
 of business 
 
 nies, which, either by the vote of their members, the neglect for one year 
 
 ^ T J ’ O to annul 
 
 of their officers, , or in obedience to injunctions from the 18^1^249, ^ 
 
 1 2 
 
 supreme judicial court, have ceased, or hereafter cease, for 7aiay, 119. 
 the period of one year, to transact the business for which 
 they were established, shall become extinct in all respects as 
 if they had expired by their own limitation. The supreme 
 judicial court shall have authority, upon the application of 
 the Insurance Commissioner, or any person interested, to 
 fix, by decree, the time within whicli such companies shall 
 settle and close their concerns. 
 
178 
 
 20 
 
 INSURANCE LAWS OP MASSACHUSETTS. 
 
 To continue 
 for three 
 years, to 
 close con • 
 cerns. 
 
 G S. 68, § 36. 
 16 Mass. 245. 
 1 Greenl. 79. 
 
 Receivers 
 may ’be ap- 
 pointed. 
 Powers and 
 duties of. 
 
 G. S. 68, § 37. 
 7 Met. 341, 
 695. 
 
 Equity juris- 
 diction of S. 
 J. Court. 
 
 G. S. 68, § 38. 
 
 Receivers to 
 pay debts 
 and distri- 
 bute sur- 
 plus. 
 
 G.S.68, §39 
 1 Gray, 387. 
 9 Allen, 329 
 
 Section 66. Insurance companies whose charters expire 
 by their own limitation, or are annulled by forfeiture or 
 otherwise, shall nevertheless be continued bodies corporate 
 for the term of three years after the time when they would 
 have been so dissolved, for the purpose of prosecuting and 
 defending suits by or against them, and of enabling them 
 gradually to settle and close their concerns, to dispose of 
 and convey their property, and to divide their capital stock ; 
 hut not for the purpose of continuing the business for which 
 they were established. 
 
 Section 67. When the charter of an insurance company 
 expires or is annulled, or the corporation is dissolved as pro- 
 vided in section sixty-four, the supreme judicial court on 
 application of a creditor, stockholder^ or member, at any 
 time within said three years, may appoint one or more per- 
 sons to be receivers or trustees to take charge of its estate 
 and effects, and collect the debts and property due and be- 
 longing to it, with power to prosecute and defend suits in 
 the name of the corporation or otherwise, to appoint agents 
 . .nder them, and do all other acts, which might be done by 
 such corporation if in being, that are necessary for the final 
 settlement of the unfiiiislied business of the corporation. 
 The powers of such receivers may be continued as long as 
 the court deems necessary for said purposes. 
 
 Section 68. The court shall have jurisdiction in equity 
 of the application and of all questions arising in the proceed- 
 ings thereon ; and may make such orders, injunctions, and 
 decrees therein, as justice and equity require. 
 
 Section 69. The receivers shall pay all debts due from 
 the company, if the funds in their hands are sufficient there- 
 for, and if not, they shall distribute the same ratably among 
 the creditors who prove their debts in the manner directed 
 by any order or decree of the court for that purpose. If 
 
GENERAL PROVISIONS. 
 
 21 
 
 there is a balance remaining after the payment of the debts, 
 the receivers shall distribute and pay it to and among those 
 who are justly entitled thereto as having been stockholders 
 or members of the company, or their legal representatives. 
 
 Section 70. All accounts rendered by receivers of insur- 
 ance companies appointed as aforesaid to the supreme judi- 
 cial court, shall be referred to the Insurance Commissioner, 
 who shall carefully examine the same and report thereon to 
 the court, and the court may make all such orders and de- 
 crees in the premises as to law and justice appertain. 
 
 Section 71. Whenever in the opinion of the Commis- 
 sioner, further efforts to collect an assessment will not afford 
 substantial relief to creditors, he shall certify the fact to the 
 supreme judicial court, which, after public notice and hearing 
 of the parties interested, may order the receivers to make a 
 final report. 
 
 Section 72. Receivers of insurance companies shall re- 
 port to the Insurance Commissioner annually, in such form 
 as the Commissioner prescribes, on or before the fifteenth 
 day of November, and as much oftener as he directs. Such 
 reports, or abstracts therefrom, shall be incorporated into the 
 annual report of the Commissioner to the legislature. 
 
 Section 73. The compensation of the receivers and their 
 expenses, other than costs of court, shall not exceed twenty- 
 five per cent, of assessments collected and five per cent, of 
 the proceeds of any assets of the company other than pre- 
 mium notes : provided^ however^ that in the case of receivers 
 appointed prior to the fourteenth day of May in the year 
 eighteen hundred and sixty-four, the amount of compensa- 
 tion to be allowed to them for services rendered prior to 
 said date shall rest in the discretion of the supreme judicial 
 court. 
 
 Accounts of 
 receiTers to 
 be referred to 
 Commission- 
 er. 
 
 1864 , 308 , § 3 . 
 
 S. J Court 
 may order 
 final report 
 on certificate 
 of Commis- 
 sioner. 
 1864 , 308 , § 2 . 
 
 Receivers to 
 report to 
 Commission- 
 er. 
 
 1864 , 308 , § 1 . 
 
 Compensa- 
 tion of re- 
 ceivers. * 
 1864 , 308 , § 4 . 
 
 Proviso. 
 
180 
 
 22 
 
 Ch.arters 
 granted after 
 March 11, 
 1831, may be 
 amended or 
 repealed. 
 G.S.68, § 41. 
 6 Cush. 424. 
 4 Gray, 234. 
 
 k 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 [Amendment or Repeal of Charters.] 
 
 Section 74. Every act of incorporation passed after the 
 eleventh day of March in the year one thousand eight hun- 
 dred and thirty-one, shall be subject to amendment, altera- 
 tion or repeal, at the pleasure of the legislature ; but the 
 corporation, notwithstanding such repeal, shall be subject to 
 the provisions of sections sixty-six and sixty-seven ; and 
 such amendment, alteration or repeal shall not take away 
 or impair any other remedy which may exist by law consist- 
 ently with those sections against the corporation, its mem- 
 bers or officers, for any liability previously incurred. 
 
181 
 
 JOINT STOCK COMPANIES. 23 
 
 JOINT STOCK INSURANCE COMPANIES. 
 
 Section 75. Every insurance company with a specific 
 capital shall annually choose by ballot from the stockholders 
 of the company resident within this State, not less than five 
 directors, who shall hold office for one year and until others 
 are chosen and qualified in their stead. Such directors when 
 elected and notified shall, before they are qualified to act, 
 declare their acceptance in writing to the secretary of the 
 company. 
 
 Section 76. Not less than four directors shall constitute 
 
 (t. h. 58, §§ 
 
 a quorum; and all questions shall be decided by a majority 
 of those present. They shall choose annually, by ballot, a 
 president,* secretary, and such other officers as the rules 
 direct. Vacancies in any office may be filled by the direc- vacancies, 
 tors or by a meeting of stockliolders called for the purpose. 
 
 Section 77. The president shall be chosen from tlie board 
 of directors. He shall preside at all meetings of the stock- oaTh'^o?^ 
 
 office. 
 
 holders and directors, but when absent a president g.s.58, §28. 
 
 pore may be chosen as the meeting determines. The pres- 
 ident and secretary shall annually be sworn. 
 
 Section 78. The shares of every insurance company Par value of 
 organized after the tenth day of May, in the year eighteen p'rSs. Re- 
 hundred and sixty-seven, and having a capital stock divided cience^ofciec- 
 
 tions. 
 
 into shares, shall be fixed at one hundred dollars each. 
 
 Each share shall lie entitled to one vote. Proxies may be 
 authorized in writing. No officer shall vote as proxy, and 
 no stockholder shall, either in person or by proxy, cast more 
 
 * For tlie election, powers, and duties of Vice-President, see section 
 29, page 8. 
 
 Choice of di- 
 rec tor.s. 
 
 To accept in 
 writing. 
 
 G.S.58,§27. 
 
2i 
 
 INSUEANCE LAWS OP MASSACHUSETTS. 
 
 Executors, 
 &c., may 
 vote. 
 
 G S. 68. i 11. 
 9 Cush. 192. 
 
 Duties of 
 secretary. 
 
 G. S.58 § 28. 
 10 Mass. 476. 
 8 Pick. 90. 
 
 Company to 
 register 
 names. &c., 
 of stockhold- 
 ers 
 
 1864,201, § 1. 
 
 List open to 
 inspection. 
 G.S.68, §10. 
 
 Penalty. 
 
 Record of 
 transfers to 
 be kept in 
 this State. 
 
 G S 68. 5 12, 
 8 Pick. 90. 
 
 than thirty votes. The record of the votes, vrhether cast in 
 person or by proxy, made by the secretary or clerk of the 
 company, shall be evidence of all such elections. 
 
 Section 79. An executor, administrator, guardian or 
 trustee, shall represent the shares or stock in his hands at 
 all meetings of the corporation, and may vote as a stock- 
 holder. 
 
 Section 80. The secretary shall keep a record of the 
 votes of the stockholders and of the directors ; a list of the 
 stockl'.olders and number of shares standing in the name of 
 each ; a record of all transfers of shares ; of all policies 
 issued by the company, and of all assignments and transfers 
 thereof; and such additional books as the president and 
 directors require. 
 
 Section 81. Every such company shall register the names 
 and residences of all its stockholders, and all changes there- 
 in of which it is notified ; shall issue no certificate of stock 
 to a stockholder, or purchaser of a share, until he informs 
 the corporation of his actual place of residence ; and shall 
 pay DO dividend to a stockholder whose actual place of resi- 
 ce is unknown, or has become uncertain, until he informs 
 corporation thereof. 
 
 Section 82. The list of stockholders shall at all times, 
 upon written application by any stockholder, be exhibited for 
 his inspection. If the officer keeping such list refuses so to 
 exhibit tlie same, he shall forfeit fifty dollars for each offence. 
 
 Section 83. All records of transfers of stock in companies 
 incorporated by the sole authority of this State, shall be made 
 and kept within the State. The officer of every company 
 wliose duty it is to record such transfers, shall, at the time 
 of his appointment, be a resident within the State ; and when 
 he ceases to be a resident the office shall become vacant. 
 
183 
 
 JOINT STOCK COMPANIES. 25 
 
 Section 84. In transfers of stock as collateral security, Transfers as 
 
 collateral, 
 
 the debt or duty which such transfer is intended to secure, ^ 
 shall be substantially described in the deed or instrument of ^ 
 transfer. A certificate of stock issued to a pledgee or holder 
 of such collateral security, shall express on the face of it 
 that the same is so holden ; and the name of the pledger 
 shall be stated therein, who alone shall be responsible as a 
 stockholder. 
 
 Section 85. The treasurer, cashier or other officer who Record of 
 
 transfers to 
 
 has the lawful custody of the records of transfers of shares, 
 
 upon the written request of a creditor of the general owner 9 cuS’. iM.' ^ 
 
 of stock pledged or transferred, shall exhibit to him the 
 
 record of such transfer ; and in case of refusal and of loss 
 
 to the creditor by reason thereof, the corporation shall be 
 
 liable for the amount of the loss. 
 
 Section 86. Persons holding stock in a corporation as Executors, 
 
 ° ^ &c., not lia- 
 
 executors, administrators, guardians or trustees, shall not 
 
 G S 68 § 18 
 
 be personally subject to any liabilities as stockholders ; but 9 bush. 192 .' 
 the estates and funds in their hands shall be liable in like 
 manner and to the same extent as the testator, intestate, 
 ward or person interested in the trust fund, would be if 
 they were respectively living and competent to act and held 
 the stock in their own names. 
 
 Section 87. Special meetings of the stockholders may be special meet- 
 ings, how 
 
 called by the directors when they think proper ; and they ^ 29 . 
 shall call sucli meetings on the written application of the 
 
 14 Gray, 440. 
 
 owners of one-fifth part of the capital, or of twenty stock- 
 holders, setting forth the purposes of the meeting. 
 
 Section 88. At each annual meeting the directors shall Directors to 
 
 make annual 
 
 cause to be furnished to the stockholders a statement of the ®ESoidys° 
 condition of the company, and in making dividends shall not (lends. 
 
 ^ ® ^ G.S.58, §34. 
 
 consider any part of the premium money divisible until the 
 risks for which the same was paid have absolutely been ter- 
 4 
 
26 
 
 INSURANCE LAWS OP MASSACHUSETTS. 
 
 Capital stock 
 when and 
 how paid in. 
 Certificates 
 and policies 
 not to issue 
 until, &c. 
 G.S.58, § 30. 
 G. S. 68, § 9 
 See sect. 137 
 
 Policies not 
 to issue un- 
 til certificate 
 of Commis- 
 sioner is ob- 
 tained. 
 Examination 
 of capital. 
 Oath of di- 
 rectors. 
 
 Fee. 
 
 G S. 58, § 30. 
 1867,267, § 4. 
 See sect. 137. 
 
 Capital stock 
 how to be in- 
 vested. 
 
 G.S. 58, §31. 
 See sect. 32. 
 
 minated. But in making up their annual statement they 
 shall be required to charge the company only such portions 
 of the cash or notes received on policies which are unex- 
 pired, as would be required to re-insure all outstanding 
 risks. 
 
 Section 89. The capital stock, unless otherwise specially 
 provided, shall be paid in cash within twelve months from 
 the date of the charter. No certificates of full shares or 
 policies shall be issued until the whole capital is paid in ; 
 nor, unless specially authorized, shall any shares be issued 
 for a less amount to be actually paid in on each share, than 
 the par value of the shares first issued. 
 
 Section 90. No policy shall be issued until a certificate 
 from the Insurance Commissioner has been obtained author- 
 izing such company to issue policies. The Insurance Com- 
 missioner shall examine the capital, and a majority of the 
 directors shall make oath that the money has been paid in 
 by the stockholders towards payment of their respective 
 shares, and not for any other purpose, and that it is in- 
 tended that the same shall remain as the capital of the com- 
 pany, to be invested as required by the laws of this Com- 
 monwealth. Every insurance company incorporated in this 
 Commonwealth shall pay into the treasury, for the examina- 
 tion required by this section, the sum of thirty dollars. 
 
 [Investment of Capital.] 
 
 Section 91. The capital stock shall be invested in the 
 stocks of the United States, or of this State, or of any city 
 or town in this State, or in any of the banks thereof, or in 
 any railroads thereof which are completed and paid for and 
 the franchises of which are not pledged or mortgaged, or in 
 bonds of railroad corporations in this State ; or it may be 
 loaned on mortgages of real estate therein, or on pledges of 
 
JOINT STOCK COMPANIES. 
 
 27 
 
 any of the stocks or bonds named in this section : provided, 
 that no insurance company shall own more than one-fourth 
 of the capital of any one bank, nor invest in nor loan on the 
 stocks and bonds both included of any one railroad company, 
 more than one-tenth of its own capital, nor in the aggregate 
 shall the investment in and loan on all railroad property 
 exceed one-fifth of its capital. Not more than half of its 
 capital shall be loaned on mortgage of real estate, and not 
 more than one-tenth part of the capital actually existing of 
 any company shall be invested in a single mortgage. 
 
 Section 92. Insurance companies may make investment 
 of their capital and other funds in the stock of any banking 
 association located in this Commonwealth and organized 
 under the provisions of an act of congress entitled “ An Act 
 to provide a national currency, secured by a pledge of United 
 States stocks, and to provide for the circulation and redemp- 
 tion thereof,” approved on the twenty-fifth day of February, 
 in the year eighteen hundred and sixty-three : provided, 
 however, that no insurance company shall own or hold as 
 collateral security more than one-fourth of the capital of any 
 one of such banking associations. Any insurance company 
 which makes any investment in the stock of any banking 
 association, as authorized by this section, shall continue sub- 
 ject to all the limitations and restrictions contained in the 
 preceding section, except as herein otherwise provided. 
 
 Section 93. If any investment or loan is made in a man- 
 ner not authorized by law, the directors making or author- 
 izing the same shall be personally liable to the stockholders 
 for any loss occasioned thereby ; but insurance companies 
 chartered by this State now doing business, shall not be 
 compelled to change any investment that was originally 
 legally made. 
 
 May be in- 
 vested in 
 stocks of na- 
 tional banks. 
 1864, 29, §§ 
 1 , 2 . 
 
 Directors li- 
 able for un- 
 authorized 
 investments. 
 G.S.58,§31. 
 See sect. 39. 
 
28 
 
 INSURANCE LAWS OP MASSACHUSETTS. 
 
 [Risks and Policies.] 
 
 Section 94. Companies thus organized may insure ves- 
 S°l. 68 !rs 2 . sels, freights, goods, money, effects, and money lent on 
 bottomry or respondentia, against the perils of the sea and 
 other perils usually insured against by marine insurance ; 
 and direlling-houses and other buildings, merchandise and 
 other personal property, against loss by fire, according to 
 their respective charters. 
 
 policies shall be signed by the president 
 secretary; or in the absence of the president by two 
 21 ,, 218 . directors, and in the absence of the secretary by a secretary i 
 pro tempore. Policies signed by the vice-president shall 'l 
 have the same force and effect as if signed by the president ' 
 or two directors. 
 
 Section 96. No stock company shall hold, on any one 
 gT‘k “ exceeding one-tenth part of the capital existing, 
 after deducting all losses, claims, liabilities and 
 132,142. debts due from the company. When the capital has been 
 
 reduced by losses, or from any other cause, the amount j 
 thereafter to be taken on any one risk shall correspondingly 
 be reduced to the limitation herein prescribed. If the 1 
 directors allow more to be insured on any one risk, they 
 shall be liable for a loss on any amount exceeding one-tenth ,(• 
 the ex,isting capital. 1, \\ 
 
 aodXr Section 9T. If any company is under liability for losses l\ 
 actually sustained equal to the capital, and the president J 
 du'cctors knowing it make insurance or assent thereto, i 
 S personally liable for the loss if any under such 
 
 Isl'il charter permits the capital stock to , 
 
 Sg.ec.i.89; be paid by instalments, if the capital is lessened by losses 1 
 before all instalments are paid in, each stockholder shall be | 
 liable for the instalments unpaid on his shares at the time i 
 
JOINT STOCK COBIPANIES. 
 
 29 
 
 of such loss ; and no dividend shall be made until the capital 
 is restored to its original amount. 
 
 [Impairment of Capital.] 
 
 Section 98. Whenever, after setting aside a sum equal 
 to the premiums for the unexpired term on existing risks, 
 the cash assets of any fire insurance company with a specific 
 capital do not amount to more than three-fourths of its orig- 
 inal capital, the company shall, by assessing the stock for 
 the difference, repair its capital to the original amount. 
 Shares on which such assessment is not paid within sixty 
 days after demand upon the owner thereof, shall be forfeit- 
 able and subject to be cancelled by a vote of the directors, 
 and new shares may be issued to make up the deficiency. 
 
 Section 99. Any insurance company with a specific cap- 
 ital which does not, within three months after receiving 
 notice from the Insurance Commissioner that its capital is 
 legally subject to repair as aforesaid, satisfy him that it has 
 been fully restored to its original amount, with a reserve of 
 premium sufficient to re-insure all outstanding risks, shall 
 be proceeded against according to the provisions of section 
 sixty- two. 
 
 When cap- 
 ital is re- 
 duced, stock 
 to be assess- 
 ed. 
 
 1863 , 249 , §§ 
 7 , 8 . 
 
 See sects. 
 198 , 216 . 
 
 If capital is 
 not repaired 
 after notice. 
 Commission- 
 er to proceed 
 against com- 
 pany. 
 
 1863 , 249 , §§ 
 6 , 9 . 
 
188 
 
 30 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 MUTUAL FIRE INSURANCE COMPANIES. 
 
 Directors, 
 election and 
 term of 
 ofiBce. 
 
 G.S. 58. f 43 
 1862.181, § 5. 
 14 Gray, 440. 
 
 Members. 
 
 Annual 
 
 meetings. 
 
 Totes. 
 
 G S.58,H3. 
 1870.349.4 7. 
 2 Gray, 543. 
 
 Proxies. 
 
 Section 100. Every mutual fire insurance company shall 
 annually elect by ballot not less than seven directors, citizens 
 of this State, and, after the first election, members of the 
 company, who shall manage and conduct the business there- 
 of. Xo director in any mutual fire insurance company shall 
 cease to be such during the year for which he was elected, 
 on account of the cancelling of any policy held by him. 
 
 Section 101. Every person insured by a mutual fire in- 
 surance company shall be a member of the company, and 
 shall be notified of the time and place of holding the annual 
 meetings of said companies by a written notice or by an 
 imprint upon the back of each policy, receipt or certificate 
 of renewal, in the following form, to wit : By virtue of 
 
 this policy the assured is hereby notified that he is a mem- 
 ber of the Insurance Company, and that the annual 
 
 meetings of said company are holden at its home office on 
 the day of in each year, at o’clock, .” 
 
 The blanks shall be duly filled in making the aforesaid 
 imprint, and the same shall be deemed a sufficient notice as 
 herein provided. Xo one member shall be allowed more j 
 than five votes in person. Members may vote by proxies 
 dated and executed within six months and returned and 
 recorded on the books of the company three days previously 
 to the meeting of the company at which the same are used , 
 but no person shall be allowed by proxy or otherwise to cast 
 more than twenty votes ; and no paid officer shall vote as 
 proxy for any absent member. 
 
189 
 
 MUTUAL FIRE COMPANIES. 
 
 Section 102. The directors of every corporation which 
 becomes a member of any mutual company, may authorize 
 one or more of the stockholders of such corporation to repre- 
 sent the same in all meetings of such company ; and such 
 representatives shall vote and be eligible to the office of 
 director in the company. 
 
 Section 103. The directors of every such company shall 
 annually choose by ballot one of their number as president,* 
 a secretary and treasurer, who shall annually be sworn, and 
 a record of the oath shall be entered upon the books of the 
 company. 
 
 Section 104. Not less than five directors shall constitute 
 a quorum, and all questions shall be decided by a majority 
 of those present. Vacancies in any office may be filled by 
 the directors until the next annual election, or by a new 
 election at a meeting called for that purpose. Special meet- 
 ings of the members may be called when ordered by the 
 directors, and the directors shall call such meetings when 
 requested in writing so to do by any twenty members. 
 
 Section 105. The secretary shall keep true records of the 
 meetings of the corporation and of the directors, and of all 
 votes passed by them ; and record a copy of all policies 
 ^ issued by such company, and all assignments or transfers of 
 the same, when properly assented to, which record shall be 
 open to the inspection of any persons interested therein. 
 
 Section 106. No policy shall be issued by a mutual fire 
 insurance company incorporated subsequently to the twenty- 
 seventh day of March, in the year eighteen hundred and 
 fifty-eight, until the sum of two hundred and fifty thousand 
 dollars has been subscribed to be insured and entered on the 
 books of the company. The policies issued and the deposit 
 
 * For the election, powers and duties of Vice-President, see section 
 29, page 8. 
 
 31 
 
 Corporations 
 how repre- 
 sented. 
 
 G.S. 58, 5 47. 
 
 Directors to 
 choose presi- 
 dent, &c. 
 Oath of 
 office. 
 
 G. S. 58, 4 44. 
 
 Quorum of 
 directors. 
 Vacancies. 
 Special meet- 
 ings. 
 
 G.S 58, §45. 
 14 Gray, 440. 
 8 Allen, 27, 
 217. 
 
 Secretary to 
 keep records. 
 G. S. 58, § 44. 
 
 «250,000 to 
 be sub- 
 scribed be- 
 fore policies 
 are issued. 
 G.S. 58, §58. 
 
 ¥ 
 
190 
 
 32 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 Where may 
 insure. 
 
 G.S. 58,§ 57. 
 
 Single risks 
 limited. 
 
 G. S.58, § 55. 
 
 Eisks limited 
 to three - 
 fourths of 
 value. 
 
 G jS. 58. § 52. 
 4 Met. 206. 
 10 Met. 211. 
 See sects. 
 217, 218. 
 Certain poli- 
 cies to create 
 a lien. 
 
 G. S. 58, § 52. 
 1862,181, § 4. 
 6 Cush. 448. 
 12 Gray, 114. 
 
 Proviso. 
 
 Proceedings 
 to enforce 
 lien. 
 
 notes given for said insurance, which .notes shall not exceed 
 double the amount paid as cash premium, shall be of the 
 same date. 
 
 Section 107. Mutual fire insurance companies incorpo- 
 rated in this State previously to the third day of July, in the 
 year eighteen hundred and fifty-six, may issue policies on 
 any property included in the terms of their charters, situated 
 in the New England States and the State of New York ; but 
 such companies incorporated after that date shall not insure 
 property situated without the limits of this State. 
 
 Section 108. No mutual fire insurance company shall 
 contract for insurance on any one risk for a greater amount 
 than they intend to retain ; nor with the view or intention 
 of re-insuring any part thereof. 
 
 Section 109. No policy shall be issued on the mutual 
 plan for a greater amount than three-fourths of the value of 
 the property insured. 
 
 Section 110. Every policy issued by a mutual fire insur- 
 ance company previously to the thirtieth day of April, in the 
 year eighteen hundred and sixty-two, shall create a lien* on 
 the personal property, and on any building insured and the 
 land under the same, for securing the payment of the deposit 
 note, or other liabilities, or any sums assessed upon the 
 same : provided^ that the extent of the liability and the 
 intention of the company to rely upon the lien are set forth 
 on the face of the policy. Upon the alienation of the prop- 
 erty to a bona fide purchaser, the lien shall cease as to all 
 losses which thereafter occur, unless the policy is continued 
 by consent of the purchaser and the company. If it becomes 
 necessary to resort to such lien for the payment of the liabil- 
 ities secured thereby, the treasurer shall demand payment 
 
 * The lieu is abolished, as regards all policies issued on or after said 
 date, by chapter 181, section 4, of the Acts of 1862. 
 
 s 
 
MUTUAL FIRE COMPANIES. 
 
 33 
 
 from the insured, and also from the tenant in possession, or 
 the person having possession of the personal property, setting 
 forth in writing the sum due ; and in case of non-payment, 
 the company may sue and levy the execution upon the prop- 
 erty or estate. The officer making the levy may sell the 
 whole or any part thereof by auction, and apply the proceeds 
 in the same manner, and the owner shall have the same 
 right to redeem as in the sale of an equity of redemption of 
 real estate. 
 
 Section 111. A person holding property in trust may 
 effect insurance on such property in any mutual fire insur- 
 ance company incorporated in this State, and for that pur- 
 pose may, as such trustee, assume the liabilities and create 
 all the liens upon the property so insured which other per- 
 sons, on becoming members of such insurance companies, 
 assume and create. He shall not be liable, in his individual 
 capacity, upon such contract of insurance. 
 
 Section 112. Every member of a mutual company shall, 
 at the expiration of his policy, have a share in the profits of 
 the company during the time his policy was in force, in pro- 
 portion to the sums by him paid on account of said policy 
 according to the contract or policy, after all expenses, losses 
 and liabilities then incurred, including a sum sufficient to 
 re-insure all outstanding risks, have been deducted. And he 
 shall, in like manner, be subject to pay any assessments 
 which may be laid by such company for the payment of losses 
 and expenses, in accordance with its charter and the laws 
 regulating such companies. 
 
 Section 113. The directors of mutual fire insurance 
 companies may divide the property insured into not exceed- 
 ing four classes. The policy shall designate the class, and 
 the assessments shall be made upon premiums and deposits 
 belonging to the class in which the loss occurs ; but no pol- 
 
 Trustees 
 may insure 
 and create 
 liens. 
 
 Liabilities of. 
 G.S.68,§59. 
 
 Members to 
 share profits, 
 and contri- 
 bute to pay 
 losses. 
 
 Q.S.58, f51. 
 1863,249, J 6. 
 
 Classification 
 of risks. 
 Policies, as- 
 sessments, 
 expenses and 
 dividends, 
 how to be 
 made and 
 apportioned. 
 G.S.68,§63. 
 7 Gray, 267. 
 
34 
 
 INSURANCE LAWS OP MASSACHUSETTS. 
 
 14 Gray, 459. 
 8 Allen, 217. 
 See sects. 
 
 32, 114, 115. 
 
 When and 
 how to be 
 laid. 
 
 G.S.58,H8. 
 
 9 Cush. 140. 
 12 Cush. 64. 
 
 2 Gray, 279. 
 
 3 Gray, 208, 
 210 . 
 
 6 Gray. 77, 
 288. 
 
 7 Gray, 267. 
 
 10 Gray, 297. 
 12 Gray, 165. 
 14 Gray, 440. 
 5 Allen, 446. 
 
 7 Allen, 235. 
 
 8 Allen, 27, 
 217. 
 
 9 Allen, 319, 
 483. 
 
 10 Allen,110. 
 Record and 
 statement 
 to be made 
 and record- 
 ed. 
 
 To be open 
 to inspec- 
 tion. 
 
 G. S. 58, § 54. 
 8 Allen, 27. 
 10 Allen,110. 
 
 icy shall be issued in a separate class, until five hundred thou- 
 sand dollars are subscribed to be insured in that class on one 
 date, and the same is entered on the books of the company. 
 The expenses of the company not strictly applicable to either 
 class, shall be apportioned to each class according to the 
 amount of premiums paid by that class for the same period ; 
 and in a division of the funds and returns of premiums and 
 deposits, each member shall be entitled to receive his propor- 
 tion of the profits belonging to the class in which he was in- 
 sured. No money belonging to one class, received either as 
 premium or assessment in said class, shall be used to pay 
 losses or expenses or other liability of any other class. 
 
 [Assessments.] 
 
 Section 114. When the just claims against a mutual 
 fire insurance company exceed the funds, its directors shall 
 assess such sums as may be necessary upon the members, in 
 proportion to their premium and deposit, no member being 
 liable to pay, in addition to his premium and deposit, more 
 than a sum equal to his said premium and deposit ; and in case 
 of classification of risks, said assessment shall be made upon 
 such premium and deposit as were given upon hazards asso- 
 ciated with the property upon which losses have occurred. 
 
 Section 115. Mutual fire insurance companies, upon 
 making an assessment, shall keep a record of the vote passed 
 by the directors for making the same, with a statement of 
 the condition of the company at the time such assessment is 
 made. When an assessment is ordered, the whole amount 
 to be raised and the particular losses or other liabilties of 
 which said amount consists shall be stated. The statement 
 shall separately show the amount of cash on hand, of deposit 
 notes, and of liabilities subject to such assessment, and it 
 shall be recorded in a book kept for that purpose, and signed 
 
193 
 
 MUTUAL FIRE COMPANIES. 
 
 by the directors voting for such assessment. Companies 
 dividing their risk and insuring in separate classes shall 
 make such statement for each class in which an assessment 
 is ordered. Any member of the company may inspect such 
 statement and take a copy of the same ; and a person who 
 is liable to assessment shall be considered a member. No 
 assessment shall be collected until such statement and record 
 are made. 
 
 Section 116. Whenever the directors of any mutual fire 
 insurance company find that its funds, other than premium 
 notes, are not equal to the cash premium on the unexpired 
 term of the existing risks, and that the company is in dan- 
 ger of becoming insolvent, instead of the assessment or call 
 herein before provided, they may make two assessments, the 
 first determining what each policy-holder must equitably pay 
 or receive in case of withdrawal from the company and hav- 
 ing his policy cancelled, the second what further sum each 
 must pay in order to re-insure the unexpired term of his pol- 
 icy at the same rate as the whole was insured at first. Each 
 policy-holder shall pay or receive according to the first assess- 
 ment, and his policy shall then be cancelled unless he pre- 
 fers to pay the further sum determined by the second assess- 
 ment, in which case his policy shall continue in force : pro- 
 vided^ that in neither case shall any policy-holder receive or 
 have credited to him more than he would have received on 
 having his policy cancelled by vote of the directors, under 
 the by-laws of the company. 
 
 Section 117. Whenever the directors in any mutual fire 
 insurance company make an assessment or call on its mem- 
 bers for money under the provisions of the preceding sec- 
 tion,* or by vote determine that there exists a necessity for 
 
 * Sections 117 to 122, inclusive, do not apply to an assessment made 
 under the provisions of section 114. (Acts of 1864, IGl, § 2.) 
 
 35 
 
 See sect. 113, 
 
 Instead of 
 foregoing as- 
 sessment, di- 
 rectors may 
 make in cer- 
 tain cases 
 two assess- 
 ments, one 
 compulsory, 
 the other op- 
 tional. 
 
 Unless latter 
 paid, policy 
 to he can- 
 celled. 
 1863,249, k 4. 
 
 9 Cush. 140. 
 12 Cush. 64. 
 
 2 Gray, 279. 
 
 3 Gray, 208, 
 210 . 
 
 6 Gray, 77, 
 288. 
 
 7 Gray, 267. 
 
 10 Gray, 297. 
 12 Gray, 165. 
 14 Gray, 440. 
 5 Allen, 446. 
 
 7 Allen, 236. 
 
 8 Allen, 27, 
 217. 
 
 9 Allen. 319, 
 483. 
 
 10 Allen,110. 
 
 11 Allen, 574. 
 Proviso. 
 
 The S. J. 
 Court may 
 examine 
 such assess- 
 ments, or or- 
 der one to 
 be made. 
 1862,181, $ 1. 
 1863,249, § 6. 
 
194 
 
 
 36 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 1864,161, § 2. 
 11 Allen, 574. 
 Where and 
 by whom ap- 
 plication 
 may be 
 made. 
 
 Proviso, 
 
 Gray, 210. 
 
 Directors to 
 file state- 
 ment. 
 
 Notice and 
 proceedings 
 on the peti- 
 tion. 
 
 1862,181, ^ 2. 
 11 Allen, 574. 
 
 ^^^Auditor to 
 be appoint- 
 r ed. 
 
 To notify 
 and bear all 
 parties, and 
 report. 
 1862,181, § 2, 
 1863, 249, H 
 3, 5. 
 
 11 Allen,574 
 
 such assessment or call, they, or any person interested in the 
 company ‘as an officer, policy-holder or creditor, may apply 
 to the supreme judicial court for any county, by a petition in 
 the nature of a bill in equity, praying the court to examine 
 said assessment or call, the necessity therefor, and all mat- 
 ters connected therewith, and to ratify, amend or annul the 
 assessment or call, or to order that the same be made, as law 
 and justice may require : provided^ such application when 
 made by any party except the corporation, or a receiver, or 
 the Insurance Commissioner, shall rest in the discretion of 
 the court. Whenever the directors unreasonably neglect to 
 make an assessment or call to satisfy an admitted or ascer- 
 tained claim upon the company, any judgment creditor, or 
 any person holding such admitted or ascertained claim, or the 
 Insurance Commissioner, may make the application to the 
 court. Upon such application, if made by the directors, or 
 upon any order of the court, if made by application of any 
 other party, the directors shall set forth the claims against 
 the company, its assets and all other facts and particulars 
 appertaining to the matter. 
 
 Section 118. The court before which such petition is 
 filed shall order notice to be given to all parties interested by 
 publication or otherwise, and upon the return thereof shall 
 proceed to examine the assessment or call, or the necessity 
 therefor, and all matters connected therewith. Any parties 
 interested may appear and be heard thereon. All questions 
 that arise shall be heard and determined as in other equity 
 cases. 
 
 Section 119. The application shall be referred to an 
 auditor, who shall appoint a time and place to hear all 
 parties interested in the assessment or call, and shall give 
 personal notice thereof, in writing, to the Insurance Com- 
 missioner, and through the post-office, so far as he is able, 
 
MUTUAL FIRE COMPANIES. 
 
 37 
 
 to all persons liable upon said assessment or call. The 
 auditor shall hear the parties, and report upon the correct- 
 ness of the assessment or call, and all matters connected 
 therewith. The court may refer the apportionment or cal- 
 culation to any competent person ; and upon the examina- 
 tion may ratify, amend or annul the assessment or call, or 
 order one to be made ; and may make such orders and 
 decrees in the premises as under all the circumstances jus- 
 tice and equity require. In case the assessment or call is 
 altered or amended, or one is ordered to be made, the 
 directors shall forthwith proceed to vote the same in legal 
 form, and the record of such vote shall be set forth in a 
 supplemental bill or answer. 
 
 Section 120. When an assessment or call has been, as Decree to be 
 
 entered by 
 
 above provided, ratified, ascertained or established, a decree Effect'S!' 
 shall be entered which shall be final and conclusive upon iiAUen^sTf. 
 the company and all parties liable to the assessment or call, 
 as to the necessity of the same, the authority of the com- 
 pany to make or collect the same, the amount thereof, and 
 all formalities connected therewith. And where an assess- 
 ment or call hereafter made is altered or amended by vote 
 of directors, and decree of the court thereon, such amended 
 or altered assessment or call shall be binding upon all par- 
 ties who would have been liable under it as originally made, 
 and in all legal proceedings shall be held to be such original 
 assessment or call. All proceedings above provided for costs, 
 shall be at the cost of the company, unless the court for 
 cause otherwise order ; and in all cases the court may 
 control the disposition of the funds collected under these 
 proceedings. 
 
 Section 121. If it appears to the presiding judge of the 
 court before which such application is pending, that tlie net SJof'ihe 
 proceeds of any assessments or call will not be sufficient to iSTg.Ts. 
 
 11 AlleD,674. 
 
196 
 
 
 38 INSURANCE LAWS OF MASSACHUSETTS. 
 
 furnish substantial relief to those having claims against the 
 company, the judge may decree that no assessment shall be 
 collected ; and when, upon the application of the Insurance 
 Commissioner or any person interested, the judge is of 
 opinion that further attempts to collect any assessment then 
 partially collected will not benefit those having claims 
 against the company, he may stay the further collection of 
 said assessment. 
 
 If both as- Section 122. If, within two months after the assess- 
 
 ments have become collectable, the amount of the policies 
 whose holders have settled for both assessments does not 
 
 1863,249, H. 
 
 11 Allen, 574. Qq^^i the amouut required by the charter of the company 
 for the commencement of business, and in no case less than 
 two hundred and fifty thousand dollars, the company shall 
 cease to issue policies ; and all policies whose holders have 
 not settled for both assessments shall then be void, and the 
 company shall continue only for the purpose of adjusting 
 the deficiency or excess of premiums among the members 
 and settling outstanding claims. 
 
 Limitation of SECTION 123. No asscssmcnt shall be laid on any member 
 
 assessment. 
 
 ? 865 ,^i 6 ^ whose policy has expired or been cancelled for the period 
 
 2 AUen, 82 ^' of two vcars I and no assessment shall be valid against any 
 
 11 Allen, 576. J ’ o j 
 
 person who has not been duly notified thereof in writing, 
 within two years after the expiration or cancellation of his 
 policy. 
 
 s.j. Court Section 124. Whenever it appears to the supreme judi- 
 
 may stay col- 
 
 anyifs- cial coui't, upou a petition in the nature of a bill in equity, 
 
 i86M6i,§i. by any member of a mutual fire insurance company, or by 
 the Insurance Commissioner, that further attempts to col- 
 lect any assessment then partially collected, will not furnish 
 substantial relief to those having claims against the com- 
 pany, the court may stay the further collection of said 
 assessment. 
 
197 
 
 MUTUAL FIRE COMPANIES. 
 
 39 
 
 Section 125. Any officer or director of a mutual fire 
 insurance company, who either officially or privately gives a 
 guaranty to any policy-holder thereof against an assessment 
 to which he would otherwise be liable, shall be punishable 
 with a fine not exceeding one hundred dollars for each 
 offence. 
 
 Section 126. If a mutual fire insurance company is 
 owing for money borrowed to pay losses or expenses, or is 
 owing for losses or expenses which it cannot pay otherwise 
 than by borrowing money, and the directors neglect or omit, 
 for the space of six months after such losses or expenses 
 became due and payable, to lay and collect with all practi- 
 cable diligence an assessment which, with other cash funds 
 on hand, if any, is sufficient to discharge all the existing 
 indebtedness of the company, they shall be personally liable 
 for all debts and claims then outstanding against the com- 
 pany, and for all thereafter accruing, until an assessment is 
 laid and put in process of collection, as aforesaid. 
 
 Section 127. When sufficient property of a mutual fire 
 insurance company cannot be found to satisfy an execution 
 issued against it, and it has property belonging to the period 
 assessed, the proceeds of which can be applied to satisfy 
 such execution, if the directors neglect to pay the same, or 
 neglect for thirty days after the rendition of judgment to 
 make an assessment and deliver the same to the treasurer 
 for collection, or to apply such assessment when collected to 
 the payment of the execution, they shall be personally 
 liable for the amount of the execution. 
 
 Section 128. When the directors of a mutual company 
 are liable to pay an execution against the company, the 
 creditor may recover the same by a suit in equity or by an 
 action at law against the directors. Any director who pays 
 an execution against the company for which he is personally 
 
 Guaranty 
 against as- 
 
 prohibited. 
 1860, 149. 
 
 Penalty. 
 
 If unable to 
 pay losses 
 without bor- 
 rowing, di- 
 rectors liable 
 for debts un- 
 less they lay 
 assessments 
 within six 
 months of 
 loss. 
 
 1868,317, § 2. 
 
 Liability of 
 directors for 
 neglect to 
 satisfy judg- 
 ment or as- 
 sess therefor. 
 G.S.58, H8. 
 9 Cush. 140. 
 3 Gray, 210. 
 See sect. 39. 
 
 Remedy of 
 creditor. 
 
 Of directors 
 for contribu- 
 tion, &c. 
 G.S.58, § 60. 
 10 Gray, 326. 
 See sect. 39. 
 
198 
 
 
 40 INSURANCE LAWS OP MASSACHUSETTS. 
 
 liable, may have a suit at law with equitable remedies for 
 contribution against any of the directors for their propor- 
 tion, and also a suit at law with equitable remedies against 
 the company or the individual members thereof who are 
 
 Proviso. liable therefor, for money so paid for them : provided^ that 
 no member shall be liable to pay in addition to his premium 
 and deposit more than a sum equal thereto. 
 
 Liability of Section 129. If the treasurer of a mutual company 
 
 treasurer. 
 
 unreasonably neglects to collect an assessment made by 
 order of the directors and to apply the same to the payment 
 of the claims for which it was made, he shall be liable in his 
 private capacity to the party having such claims for the 
 amount of the assessment ; and he may repay himself out 
 of any money afterwards received for the company on 
 account of said assessment. 
 
199 
 
 STOCK AND MUTUAL (COMBINED) COMPANIES. 
 
 41 
 
 STOCK AND MUTUAL (COMBINED) INSURANCE COMPANIES. 
 
 Section 130 . No mutual fire insurance company shall ca'JStafre- 
 issue policies on any other than the mutual plan of insur- How^paid m 
 ance, excepting such companies as have been chartered as ^ 
 stock and mutual companies ; and such companies, if doing 33® 
 business in Boston, either directly or through agencies, 
 before issuing policies or transacting any business in the 
 stock department, shall have a guarantee capital of at least 
 one hundred thousand dollars, paid in and invested as 
 required by sections ninety, ninety-one and ninety-two, 
 exclusive of stockholders’ notes, (unless such notes are 
 secured by mortgage or by pledges of stock or bonds, as 
 provided in section ninety-one,) and of all debts due from 
 the company, and such proportion of all premiums received 
 in cash for risks not terminated, as would be requisite to 
 re-insure the same. If doing business in any other city or 
 town, the sum of at least fifty thousand dollars shall he 
 paid in and invested in like manner, and be subject to like 
 conditions and restrictions. 
 
 Section 131 . All business and investments on account 
 of the stock department of such companies shall be sepa- 
 rat3ly kept, and the returns to the Insurance Commissioner 
 respecting the same shall be according to the form pre- 207,209,211. 
 scribed or authorized for joint-stock insurance companies. 
 
 The business done on the mutual principle shall also be 
 kept separate, and returns made agreeably to the form pre- 
 scribed or authorized for mutual fire insurance companies. 
 
 Section 132 . Such combined companies shall not take 
 on any one risk in their stock department a sum exceeding See sect. 142. 
 
 6 
 
200 
 
 42 INSURANCE LAWS OF MASSACHUSETTS. 
 
 one-tenth of their capital stock ; and when the capital stock 
 is reduced in any Way, the amount thereafter to be taken 
 on any one risk shall forthwith be correspondingly reduced 
 to the limitation in section ninety-six, until the capital is 
 restored to its original amount. 
 
 Directors, SECTION 133. Onc-lialf of the directors of every mutual 
 
 G.S.58, h6. insurance company with a guarantee capital, shall be 
 chosen from the holders of the guarantee stock, and the 
 other half from the members of the mutual department. 
 
 Duties of Section 134. The secretary shall keep a true list of 
 
 secretary. 
 
 seesSts. stockholders of the guarantee capital, and of the number of 
 shares held by each, and a record of the transfer of shares. 
 
 Special meet- SECTION 135. Special meetings may be called by the 
 
 ings. 
 
 8 Gray^’ 2 V^^’ ^h'ectors wlien they think proper, and shall be called by 
 
 14 Gray, 440. them upon the written application of the owners of one-fifth 
 of the guarantee stock, or of twenty members of the mutual 
 department, setting forth the purposes of the meeting. 
 
MUTUAL MARINE AND FIRE-MARINE COMPANIES. 
 
 43 
 
 MUTUAL MARINE, AND MUTUAL FIRE -MARINE, INSURANCE 
 
 COMPANIES. 
 
 Section 136. Mutual marine and mutual fire and marine 
 insurance companies, established by the laws of this State, 
 shall be subject to the provisions of sections one hundred, 
 one hundred one, one hundred three, one hundred four and 
 one hundred five, relating to mutual fire insurance compa- 
 nies, and shall before commencing business have an agree- 
 ment substantially as follows, viz. : 
 
 “ The subscribers, members of the insurance 
 
 company, severally agree to pay said company on demand 
 the sums set against our names, or such part thereof as may 
 be called in for the use of the company, in money or prom- 
 issory notes.” 
 
 Section 137. Policies of insurance may be issued by 
 such company when two hundred thousand dollars, if the 
 company is in Boston, or one hundred thousand dollars, if 
 the company is in any other city or town in the State, has 
 been subscribed and paid in cash or notes payable on time 
 not exceeding twelve months : provided, that no insurance 
 company chartered after the eighth of June, eighteen hun- 
 dred and sixty-eight, with authority to effect marine insur- 
 ance on the mutual principle, shall issue policies until at 
 least one -half of the subscribed capital or safety fund re- 
 quired by law has been paid in in cash ; and provided, 
 further, that no policies shall be issued as aforesaid, until 
 the president and a majority of the directors have certified 
 that the subscribers are known to them, and they believe 
 them solvent and able to pay their subscriptions ; and a copy 
 
 Election and 
 duties of offi- 
 cers. 
 
 Special meet- 
 ings. 
 
 G.S.58, §35. 
 
 Form of sub- 
 scription. 
 
 When poli- 
 cies may is- 
 sue. 
 
 G.S.68,§ 35. 
 1868,317, § 3. 
 
 Proviso. 
 
 Certificate to 
 be made and 
 filed annu- 
 ally. 
 
202 
 
 44 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 Subscrip- 
 tions, how 
 held and 
 used. 
 
 G. S. 58, § 37. 
 
 Subscription 
 notes to be 
 paid or re- 
 newed. 
 
 Penalty for 
 false certifi- 
 cate. 
 
 G S. 58, § 37. 
 See sect. 3D. 
 
 Notes, how 
 cancelled. 
 Investment. 
 G.S.58, §37. 
 See sects. 32, 
 33. 
 
 Who are 
 
 members. 
 
 G.S.58,.§ 
 
 of the certificate has been deposited with the Insurance 
 Commissioner and approved by him. Subsequent subscrip- 
 tions shall be made and certified in like manner ; and a like 
 copy shall annually, on or before the first day of November, 
 be filed with the Commissioner. The provisions of law 
 relating to the capital of joint stock insurance companies, 
 shall be applicable to the cash capital of such mutual com- 
 panies. 
 
 Section 138. The subscriptions provided for in the two 
 preceding sections shall constitute a permanent fund, to be 
 used when necessary for payment of the losses and expenses 
 of the company ; but shall not be applied to pay the pre- 
 miums for insurance effected by the subscribers. The sub- 
 scription notes as they mature shall be paid in or other notes 
 substituted therefor, so that the amount of the original fund 
 shall not be reduced. 
 
 Section 139. If any subscriber fails to pay his subscrip- 
 tion, and it is proved that the president or a director know- 
 ingly certified falsely in regard to such subscriber, the 
 person certifying shall be liable to the company for such 
 sum as the subscriber fails to pay. 
 
 Section 140. The subscription notes or any pro rata 
 portion thereof may be cancelled whenever the net profits 
 of the business are sufficient to replace the same j and such 
 profits shall then be invested as prescribed in sections 
 ninety-one and ninety-two, thereafter to be held as the 
 permanent fund in place of said notes. All payments made 
 on subscription notes and all cash funds not required for the 
 current uses of the company shall be invested in the same 
 manner. 
 
 Section 141. Each subscriber during the term of his 
 subscription, and each person insured shall be a member of 
 the company ; but persons insured shall not remain members 
 
MUTUAL MARINE AND FIRE-MARINE COMPANIES. 
 
 45 
 
 after the termination of the risk and the payment of the 
 loss, if any thereon. 
 
 Section 142. No company shall hold on one risk more Limitation 
 
 ^ of risks. 
 
 than ten per cent, of its subscriptions and invested funds, gee^sects! 
 
 132 * 
 
 not pledged, and premium notes on risks absolutely termi- 
 nated, after deducting therefrom all losses and claims for 
 losses, or cash received for risks not terminated, and all 
 debts. Whenever by means of open policies or indorse- Reinsurance, 
 ments thereon more than ten per cent, is so at risk, the 
 directors shall as soon as may be obtain re-insurance for 
 the amount of such excess. 
 
 Section 143. If a company is at any time liable for Liability of 
 
 officers for 
 
 losses beyond the amount of its cash fund, legal investments, 
 premium notes received from risks terminated, and subscrip- ? 2 Griy,fe 5 ! 
 
 See sects. 39, 
 
 tion notes, the president and directors, knowing the condi- 97. 
 tioii of the company, shall be personally liable for all losses 
 occurring on insurance effected during such state of the 
 company. 
 
 Section 144. The directors shall require the president Monthly 
 
 statement. 
 
 to make a monthly statement to them of the assets and lia- g s.58,§39. 
 
 bilities of the company ; which statement shall be entered 
 
 upon their records, or in a book kept for that purpose. 
 
 Section 145. Mutual marine insurance companies incor- Annual divi- 
 dend state- 
 
 porated in this State which have been in operation not less Ne°profitsto 
 than twelve months, shall cause an annual dividend state- ?ceJti?u‘^peJ 
 
 cent, on pre- 
 
 ment to be made up in each year, containing a fair estimate 
 of the net profits of the company not before divided, taking Sp’to'il 
 into view the probable amount to be paid on all claims, out- g!s.58,ho. 
 
 T . . , . , . , ^ See sect. 112. 
 
 standing risks, and demands, against the company, and in- 
 cluding expenses, interest, and allowances for previous defi- 
 ciencies. After ascertaining in this mode the net profits of 
 the year on the risks terminated, the directors may declare 
 a dividend of such profits of a certain per cent, on the pre- 
 
46 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 milims received for such terminated risks, and the subscrip- 
 tions made to the safety fund in that year, and may issue 
 certificates representing said dividend to the persons in 
 whose names the policies of insurance and subscriptions for 
 the. year in conformity to the provisions of sections one hun- 
 dred thirty-six and one hundred thirty-seven were originally 
 made, or to their legal representatives. 
 
 SieX. Section 146. The certificates shall be transferable only 
 
 as“5stH0. Oil the books of the company, under regulations to be pre- 
 scribed by the by-laws, and shall contain a provision de- 
 claring the same to be subject to future losses and expenses 
 of the company until they are redeemed as hereinafter pro- 
 vided, and subject to be reduced by the directors in case of 
 losses and expenses in any subsequent year exceeding the 
 estimated profits of such year. But such original certificate 
 need not be issued for a less sum than ten dollars. All such 
 sums may be passed to the contingent accounts of the com- 
 pany. 
 
 Interest on SECTION 147. Such Companies may pay on the certificates 
 issued ill conformity with the preceding sections, from the 
 
 G.S. 58, § 41. . ^ ° ’ 
 
 accrued income of their invested funds, interest not exceed- 
 ing six per cent, per annum ; and whenever the net profits 
 of any such company exceed the sum of two hundred and 
 fifty thousand dollars, the excess may be applied from year 
 to year thereafter to the redemption of the certificates of 
 the previous years in such manner as the directors deter- 
 mine ; but no certificates of any year shall be redeemed 
 while certificates of previous years remain unredeemed. 
 When the accumulations of net profits of such company 
 exceed the sum of five hundred thousand dollars, such ex- 
 cess shall be so applied. 
 
 Debts oyer- SECTION 148. When a person entitled to a certificate of 
 
 due may be 
 
 8?r1p. pi’ofits is indebted to such company for any sum past due, 
 
205 
 
 
 MUTUAL MARINE AND FIRE-MARINE COMPANIES. 
 
 the company may withhold the certificate and deduct such 
 sum from the amount thereof, and reduce or cancel the 
 same ; but persons holding policies of the company or en- 
 titled to certificates shall not be answerable by reason there- 
 of, or for anything contained therein, except for the pay- 
 ment of their premium or other notes in advance for pre- 
 miums. 
 
 47 
 
 Policy-hold- 
 ers not li- 
 able, &c. 
 
 G. S. 68, § 42. 
 
 
48 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 Guarantee 
 capital. 
 G.S.58, § 60. 
 See sects. 32, 
 33. 
 
 Directors, 
 how chosen. 
 G.S. 58, § 60. 
 
 Annual 
 meetings. 
 1870,349, } 7. 
 
 Dividends to 
 stockhold- 
 ers. 
 
 G.S. 58, §60. 
 1870,349, § 6. 
 
 LIFE INSURANCE COMPANIES. 
 
 Section 149. Before any mutual life insurance company 
 goes into operation, a guarantee capital of one hundred 
 thousand dollars shall be paid in money and invested as 
 re(][uired by sections ninety, ninety-one and ninety-two. 
 
 Section 150. The subscribers or holders of guarantee 
 stock in a mutual life insurance company shall choose the ! 
 first board of directors ; at all subsequent elections they j 
 shall choose one-half of the directors until the redemption i 
 of the guarantee stock, when the insured shall choose the ' 
 directors. 
 
 Secton 151. All members of mutual life insurance com- 
 panies, incorporated under the laws of this Commonwealth, 
 shall be notified of the time and place of holding the annua’ | 
 meetings of said companies by a written notice or by ar I 
 imprint upon the back of each policy, receipt or certificate | 
 of renewal, in the following form, to wit : By virtue of if 
 
 this policy the assured is hereby notified that he is a mem- 1 
 her of the Insurance Company, and that, the annual f 
 meetings of said company are holden at its home office on 
 the day of in each year, at o’clock, 
 
 The blanks shall be duly filled in making the aforesaid 
 imprint, and the same shall be deemed a sufficient notice as ' 
 herein provided. | 
 
 Section 152. The stockholders shall be entitled to such j 
 annual dividends not exceeding eight per cent., as are 
 agreed upon at the time of subscribing the capital, if the 
 net surplus over a requsite reservation for liabilities and 
 contingencies is sufficient to pay the same ; and if less than 
 
207 
 
 LIFE INSURANCE COMPANIES. 49 
 
 the sum originally agreed on, it shall be made equal to it 
 when the profits of the company are sufficient. 
 
 Section 153. One-quarter of the estimated surplus fund Redemption 
 above a sufficient fund to provider risks, losses, expenses, S!t 8 ,§ 60 . 
 and dividends, shall be reserved to be appropriated to the 
 redemption of the guarantee stock ; and after the expiration 
 of ten years from the organization, when the amount reserved 
 is sufficient and the insured so vote, the guarantee stock may 
 be redeemed. 
 
 Section 154. At the expiration of every five years, the surplus, 
 
 how may be 
 
 residue of the estimated surplus fund may be divided among aming^poi- 
 the assured in proportion to the amount of premiums paid 
 by them respectively on account of the risk on their policies 
 for any part or the whole of the preceding five years : pro- ProTiso. 
 vided^ that any policy on which the premium is payable 
 otherwise than by equal annual payments, shall not be 
 entitled to a larger distribution than if the premium had 
 been so paid. 
 
 Section 155. Life insurance companies which do busi- Distribution 
 
 of surplus. 
 
 ness upon the principle of mutual insurance, or the members i866,33,$§ 
 of which are entitled to share in the surplus funds thereof, 
 may make distribution of such surplus as they have ac- 
 cumulated, annually, or once in two, three, four or five 
 years, as the directors thereof, from time to time determine. 
 
 In determining the amount of the surplus to be distributed,’ Premium re- 
 there sliall be reserved an amount not less than the aggre- 
 gate net value of all the outstanding policies, said value 
 being computed by the “ Combined Experience” or Actu- 
 aries’ ” rate of mortality, with interest at four per cent. 
 
 Section 156. Such surplus fund may be distributed Surplus may 
 
 be divided on 
 
 among the members of such companies, in proportion to the 
 sums of money which each member has contributed to the S’, 33 , §§ 
 entire surplus funds to be distributed among all the mem- 
 7 
 
208 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 bers, and including in such contribution a just and equitable 
 allowance for interest. Policies which have become payable 
 before the time when such distribution is made, and after the 
 date of the last previous||Btribution of surplus, may share 
 in the same equitably and proportionally. 
 
 Section 157. A policy of insurance on the life of any 
 P^i’son, expressed to be for the benefit of any married 
 G.s^^ 58 ,^ 62 . "^l^ether procured by herself, her husband, or any 
 
 iiAiien.224 other persou, shall inure to her separate use and benefit and 
 that of her children, independently of her husband or his 
 creditors, or the person efiecting the same or his creditors. 
 
 trustee may be appointed by the party obtaining the 
 policy, or if no such appointment is made, then by the 
 judge of the probate court for the county in which the party 
 for whose benefit said policy is made resides, to hold the 
 interest of the married woman in such policy or the proceeds 
 
 thereof. 
 
 Section 158. A policy of insurance on the life of any < 
 to°Shom*to ’ assigned, transferred or made payable to any ‘i 
 
 i 86 ?i 97 . “allied woman, or to any person in trust for her or for ' 
 
 UAiie.,224 her benefit, whether such transfer be made by her husband 
 or other person, shall inure to her separate use and benefit, , 
 and that of her children, independently of her husband or 
 his creditors, or of the person effecting or transferring the 
 r,o,i,o. same or his creditors : provided, however, that if the pre- 
 mium on such policy is paid by any person with intent to : 
 defraud his creditors, an amount equal to the premium so 
 paid, with interest thereon, shall inure to the benefit of said 
 creditors, subject, however, to the statute of limitations, 
 ed by'one SECTION 159. 11' licii a policy is effected by any person on i 
 
 person for •'.'r 
 
 Se^fto another, expressed to be for the ■ 
 
 whom to benefit of such other, or his representatives, or a third per- \ 
 
 G.S. 58, i 62. . 1 ^ 
 
 son, the person for whose benefit it was made shall be 
 
 50 
 
 Policy for 
 benefit of 
 
 marrio/1 
 
LIFE INSURANCE COMPANIES. 
 
 51 
 
 entitled thereto against the creditors and the representa- 
 tives of the person effecting tlie same. If the premium is 
 paid by any person with intent to defraud his creditors, an 
 amount equal to the premium so paid, with interest thereon, 
 shall inure to their benefit. 
 
 Section 160. No policy of insurance on life, issued on or 
 after the tenth day of May, in the year eighteen hundred 
 and sixty-one, by any company chartered by the authority of 
 this Commonwealth, shall be forfeited or become void by the 
 non-payment of premium thereon, any further than regards 
 the riglit of the party insured therein to have it continued 
 in force beyond a certain period, to be determined as follows, 
 to wit: The net value of the policy, when the premium 
 becomes due and is not paid, shall be ascertained according 
 to the Combined Experience,” or Actuaries’ ” rate of 
 mortality, with interest at four per centum per annum. 
 After deducting from such net value any indebtedness to 
 the company or notes held by the company against the in- 
 sured, which notes if given for premium shall then be can- 
 celled, four-fifths of what remains shall be considered as a 
 net single premium of temporary insurance, and the term 
 for which it will insure shall be determined according to the 
 age of the party at the time of the lapse of premium, and 
 
 Not to de- 
 fraud cred- 
 itors. 
 
 Policies 
 lapsed by 
 non-pay- 
 ment of pre- 
 mium, to be 
 continued in 
 force. 
 
 3861,186, §1. 
 
 10 Gray, 308. 
 
 Term of ex- 
 tended policy 
 how ascer- 
 tained. 
 
 the assumptions of mortality and interest aforesaid. 
 
 Section 161. If the death of the party occur within the Policy pay- 
 term of temporary insurance covered by the value of the occur 
 policy, as determined in the previous section, and if no con- 
 dition of the insurance other than the payment of premium 
 has been violated by the insured, the company shall be 
 bound to pay the amount of the policy, the same as if there 
 had been no lapse of premium, anything in the policy to the 
 contrary notwithstanding : provided, however, that notice of Provisos 
 the claim and proof of the death shall be submitted to the 
 
210 
 
 52 
 
 INSURANCE LAWS OP MASSACHUSETTS. 
 
 Corpora- 
 tions, asso- 
 ciations, 
 etc., not to 
 insure, &c., 
 except ac- 
 cording to 
 laws of the 
 state. 
 
 G. S. 58. 
 1861, 186. 
 1870, 349,§ 5. 
 
 Companies 
 subject to 
 certain obli- 
 gations. 
 
 1823, 51, § 2. 
 G.S.58, §61. 
 4 Gray, 227. 
 
 Not to take 
 fire or ma- 
 rine risks. 
 G.S.58,§65. 
 See sect. 218, 
 
 company within ninety days after the decease ; and pro 
 vicled^ alsOj that the company shall have the right to deduc 
 from the amountdiisured in the policy the amount at six pei 
 cent, per annum of the premiums that had been forborne a 
 the time of the death. 
 
 Section 162. No corporation, association, partnership oi 
 individual doing business in this Commonwealth, under any 
 charter, compact or agreement involving an insurance! 
 guaranty, contract or pledge for the payment of annuitif 
 or endowments, or for the payment of moneys to the fam . 
 lies or representatives of policy or certificate holders pi 
 members, shall make such insurance, guaranty or contract 
 therein or with any residents of this State, except in accord? 
 ance with and under the conditions and restrictions of th^ 
 statutes now or hereafter regulating the business of life in' ' 
 surance : provided^ that nothing in this section shall be heh 
 to conflict with the provisions of chapter one hundred an' 
 eighty-six of the acts of eighteen hundred and sixty-one. d 
 
 Section 163. Every company empowered to make insur-) 
 ance on lives upon land shall be subject to the same obliga- 
 tions for the payment of a certain share of the profits to the 
 Massachusetts General Hospital as are imposed on thJ 
 Massachusetts Hospital Life Insurance Company. 
 
 Section 164. No life insurance company shall issu 
 policies insuring fire or marine risks. 
 
 \_For provisions relating to valuation of policies^ se^ 
 sections 9 and 204. For other provisions^ relating to Lift 
 Insurance Companies, see also sections 201, 210, 214 and 
 215.] 
 
 I 
 
COMPANIES OF OTHER STATES AND COUNTRIES. 
 
 53 
 
 INSURANCE COMPANIES OE OTHER STATES AND FOREIGN 
 
 COUNTRIES. 
 
 [Conditions of Admission to do Business in this State.] 
 
 Section 165. No insurance company not incorporated Joint stock 
 
 ^ ^ companies 
 
 by the legislature of this Commonwealth, and having a bS!£ss'in 
 
 . . .. this State, 
 
 specific capital, shall by its agent m this fetate insure prop- unless, &c. 
 
 G.S. 58, § 66. 
 
 erty therein or contract for insurance with any residents in gQray 73^' 
 this State, unless its capital stock amounts to one hun- 
 dred thousand dollars, all of which sum has been paid 
 in cash and invested, exclusive of stockholders’ obligations 
 of any description not secured as required in section ninety- 
 one, and the debts of the company ; nor unless the company 
 
 is restricted by its charter or otherwise from incurring any 
 
 » 
 
 greater hazard in one risk than one-tenth of its unimpaired 
 capital ; nor unless the company has complied with the laws 
 of this State. 
 
 Section 166. It shall not be lawful for any insurance Foreign in- 
 company or association, created by or organized under the noTfo?nsLe 
 the laws of any foreign government, other than the States risk more 
 
 than ten per 
 
 of this Union, or for any , partnership, association, firm or 
 individual of such foreign government, or for any agent or pSS, &c. 
 
 , « . G. S. 58, §§ 
 
 agents ot such foreign company, association, partnership, 
 
 loo7 ^ . 
 
 firm or individual to make contracts of insurance, or expose S’ 349, » 
 
 1 4.’ ’ 
 
 such company, association, partnership, firm or individual to 
 loss in this State, in any one risk or hazard to an amount 
 exceeding ten per cent, of the value of the securities 
 deposited by such company, association, partnership, firm or 
 individual with the several insurance, or other departments 
 of the States of this Union, and ten per cent, of the net 
 
212 : 
 
 54 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 Not to re- 
 insure risk 
 ■with com- 
 pau)’, &c., 
 not author- 
 ized to do 
 business in 
 this State. 
 
 Penalty. 
 
 Mutual com- 
 panies not to 
 do business 
 in this State, 
 unles.'s, &c. 
 G.S.58, §67. 
 3 Gray, 215. 
 6 Gray, 73 
 
 To satisfy 
 Insurance 
 Commission- 
 er that they 
 have requi- 
 site funds, 
 &c. 
 
 G. S. 58, § 67. 
 
 Provisions 
 of general 
 laws extend- 
 ed. 
 
 1868,317, § 1 
 See sect. 200. 
 
 assets in the hands of trustees resident in and citizens of 
 any of tlie United States, subject at all times to the approval 
 of the Insurance Commissioner of this State, for the general 
 benefit and security of all policy-holders residing in the 
 United States, which shall be immediately available for the 
 payment of losses in this State. Nor shall it be lawful- for 
 any such foreign or other insurance company, association, 
 partnership, firm or individual, directly or indirectly, to con- 
 tract for or effect any re-insurance of any risk on property 
 in this State taken by such company, association, partner- 
 ship, firm or individual, with any insurance company, asso- 
 ciation, partnership, firm or individual not authorized to 
 transact the business of insurance in this State in accord- 
 ance with the laws thereof. Any violation of the provisions 
 of this section shall subject the party guilty thereof to a 
 penalty of five hundred dollars for each violation. 
 
 Section 167. No insurance company not incorporated 
 by the legislature of this Commonwealth, and doing busi- 
 ness upon the mutual plan, shall by its agent in this State 
 insure property therein or contract for insurance with any 
 resident thereof, unless said company has one hundred thou- 
 sand dollars in cash or available cash funds securely in- 
 vested, and at least one hundred thousand dollars in deposit 
 notes. 
 
 Section 168. Before any company not incorporated as 
 aforesaid, whether doing business on the stock or mutual 
 plan, transacts by its agents any business in this State, it 
 shall satisfy the Insurance Commissioner that it has the 
 amount of funds required by the laws of this Commonwealth 
 and has complied with all other provisions of the same. 
 
 Section 169. The provisions of all general laws which 
 are or may be in force^relating to insurance companies incor- 
 porated in other States of the United States, are hereby 
 
213 
 
 COMPANIES OF OTHER STATES AND COUNTRIES. 55 
 
 extended to all companies, associations and individuals 
 formed or associated in such other States, and doing an 
 insurance business in this State, whether incorporated or 
 not. 
 
 [General Agent and Attorney.] # 
 
 Section 170. Every such company shall, before doing 
 business in this State, appoint in writing a citizen thereof, cept service 
 
 of process. 
 
 resident therein, a general agent upon whom all lawful proc- g 
 esses against the company may be served with like effect as lOGrSfiei. 
 
 .-,. 1.0 T .T . . 12 Gray’, 201. 
 
 if the company existed in this State ; and said writing or 
 power of attorney shall stipulate and agree on the part of 
 the company making the same, that any lawful process 
 against said company which is served on said general agent, 
 shall be of the same legal force and validity as if served on 
 said company. A copy of the writing duly certified and 
 authenticated shall be filed in the office of the Insurance 
 Commissioner, and copies certified by him shall be sufficient 
 evidence. This agency shall be continued while any liability 
 remains outstanding against the company in this State, and 
 the power shall not be revoked until the same power is given 
 to another, and a like copy filed as aforesaid. Service upon 
 such agent shall be deemed sufficient service upon the prin- 
 cipal. 
 
 Section 171. The general agent shall, before any insur- Togiveboni. 
 ance is made by such company, give a bond to the Treasurer ’ ' ’ ^ 
 of the Commonwealth, with one or more sureties to be ap- 
 proved by him, in the sum of two thousand dollars, with 
 condition that he will accept service of all lawful processes 
 against the company in the manner herein before provided. 
 
 Section 172. The general agent of every such company to deposit 
 
 copy of char- 
 
 shall, before any insurance is made, deposit with the Insur- 
 
 ance Commissioner a copy of the charter of the company, isox^ay/go!' 
 
 See sects. 
 
 188, 197. 
 
214 
 
 56 INSURANCE LAWS OF MASSACHUSETTS. 
 
 and a statement signed and sworn to by the president and 
 secretary, in the form prescribed or authorized for the annu- 
 al statement adapted to the business done by such company. 
 
 Company^ ^0 SECTION 173. Any sucli Company which neglects to ap- 
 
 to?ecover^ point a general agent agreeably to the provisions of section 
 
 premiums, 
 
 &c. M one hundred and seventy, shall not recover any premium or 
 
 G. S. 58, § 7Z. 
 
 6 G^ay’ 73 ^ asscssmcnt made by it on any contract of insurance with a 
 
 pGravi 206 . citizcn of tliis State until such provisions are complied with. 
 
 1 Allen, 436. r- i - 
 
 2 Allen, 398. 
 
 10 Allen, 231. 
 
 [Brokers.] 
 
 Insurance Section 174. Whoever acts or aids in any manner in 
 
 broker, what 
 
 i869^^ST*i ii6gc)tiating contracts of insurance, or placing risks, or effect- 
 ing insurance, for any person other than himself, receiving 
 compensation therefor, and is not the officer, agent or sub- 
 agent of the company or companies in which such insurance 
 is effected, shall be deemed to be an insurance broker. 
 
 Not to act Section 175. No person shall act as an insurance broker 
 
 without au- 
 
 iSLc^*^ until he has procured a certificate of authority so to act, 
 from the Insurance Commissioner. Such certificate shall 
 
 1869, 93, § 2. 
 
 authorize the person named therein to negotiate contracts of 
 insurance, or place risks, or effect insurance with any insur- 
 ance company established in this Commonwealth, or its agents, 
 and with the agents of any insurance company not incorpo- 
 rated in this Commonwealth, which has complied with all of 
 the laws thereof, and is duly authorized to do business there- 
 
 proviso. in : provided, such agents have duly given bond to make re- 
 turns and pay taxes, and have complied with all other require- 
 ments of said laws. Whoever assumes to act as an insurance 
 broker otherwise than as aforesaid, shall be held to be an in- 
 surance agent, and subject to all the duties, requisitions, lia- 
 bilities and penalties set forth in the laws relating to such 
 agents. 
 
215 
 
 COMPANIES OP OTHER STATES AND COUNTRIES. 57 
 
 Section 176. The Insurance Commissioner shall grant Limit of au- 
 
 tnority to 
 
 certificates of authority as aforesaid, which shall continue in ig 69 , 93 ,§ 3 . 
 force until the first day of April next after the date thereof, 
 and shall be renewed on said day and annually thereafter. 
 
 For each certificate so granted, and for each renewal thereof, Fee. 
 there shall be collected and paid into the treasury of the 
 Common wealth, the sum of ten dollars. 
 
 Section 177. Whoever violates any of the provisions 
 this act shall be punished by a fine not exceeding five hun- 
 dred dollars. 
 
 [Agents.] 
 
 Section 178. Whoever solicits insurance on behalf of 
 any insurance company not chartered by and not established 
 
 5 Gray, 497. 
 
 within this Commonwealth, or transmits for any person other 
 than himself an application for insurance, or a policy of in- 
 surance to or from such company, or advertises that he will 569. 
 
 ^ ’ 3 Allen, 213. 
 
 receive or transmit the same, shall be held to be an agent of s® °t’ 201 ’. 
 
 such company, to all intents and purposes, and subject to all 
 the duties, requisitions, liabilities and penalties set forth in 
 the laws of this Commonwealth relating to insurance com- 
 panies not incorporated by the legislature thereof. 
 
 Section 179. No person shall, as agent of any fire, ma- Agents of 
 rine, or fire and marine insurance company, not incorporated ^ne co’mpa- 
 under the laws of this Commonwealth, make or cause to be 
 
 1862, 224, § 
 
 made any insurance in this Commonwealth, until he has geepgcts. 
 given a bond to the Treasurer of the Commonwealth, with 
 sufficient sureties to be approved by said Treasurer, in the 
 sum of two thousand dollars, with condition that he will pay, 
 as provided by the laws of this State, tlie taxes imposed by 
 said laws upon all premiums charged or received or collected 
 by him, or under his authority, for the company or compa- 
 nies of which he is the agent. Any person making insur- Penalty. 
 
 8 
 
216 
 
 58 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 Agents of 
 other com- 
 panies also 
 to give bond 
 G.S 58, §69 
 See seers. 
 195, 196. 
 
 Officers, 
 agents and 
 sub-agents, 
 to procure 
 certificate of 
 authority 
 from (he In- 
 surance 
 Commission- 
 er for each 
 company, 
 
 1867,267, § 5. 
 
 Continuance 
 and renewal 
 thereof. 
 
 May be re- 
 voked. 
 
 ance, or causing insurance to be made in violation of the 
 provisions of this section, shall be liable to pay a fine not 
 exceeding one thousand dollars. 
 
 Section 180. Every agent of an insurance company not 
 incorporated by the legislature of this Commonwealth and 
 doing business therein, excepting agents of companies in- 
 cluded in the provisions of the preceding section, shall, be- 
 fore any business is done by him for said company, give a 
 bond to the Treasurer, with one or more sureties to be ap- 
 proved by him, in the sum of one thousand dollars, with 
 condition that he will on or before the fifteenth day of 
 November in each year make return on oath to the 
 Treasurer of the amounts insured by him, the premiums 
 received, and assessments collected, during the year ending 
 on the thirty-first day of the October preceding, and at the 
 same time pay to the Treasurer the taxes provided by law. 
 
 Section 181. No officer, agent or sub-agent of any in- 
 surance company not incorporated in this Commonwealth, 
 shall act or aid in any manner in transacting the business 
 of insurance of or with such company, or placing risks or 
 effecting insurance therein, without first procuring from the 
 Insurance Commissioner a certificate of authority so to do, 
 for each company for which he proposes to act, which shall 
 state in substance that such company is duly authorized to 
 do business in this State under the laws thereof, and that 
 such agent or other person has duly complied with the laws 
 relating to the agents of such companies. The Commis- 
 sioner, upon being satisfied of the facts to be stated tlierein, 
 shall grant such certificate, which shall continue in force un- 
 til the first day of April next after the date thereof, unless 
 sooner revoked by the Commissioner for non-compliance with 
 the laws aforesaid, and shall be renewed on said day and an- 
 nually thereafter, so long as the company and its agents con- 
 
217 
 
 COMPANIES OF OTHER STATES AND COUNTRIES. 
 
 tinue to comply with said laws. For such certificate, so 
 granted, and for each renewal thereof, the company named 
 therein shall pay into the treasury the sum of two dollars. 
 Whoever violates the provisions of this section shall be pun- 
 ished by a fine not exceeding five hundred dollars for each 
 offence. 
 
 Section 182. Every person acting for an insurance com- 
 pany not incorporated in this State shall exhibit in conspicu- 
 ous letters on the sign designating his place of business, the 
 name of the State under whose authority the company he 
 represents has been incorporated. And said company and 
 agent shall also have printed in large type the name of such 
 State and the kind of office, whether chartered as a mutual 
 or stock company, upon all policies issued to citizens of this 
 State, on all cards, placards, and pamphlets, and in all adver- 
 tisements published, issued or circulated, in this State, by it 
 or him, relating to the business of such company. 
 
 Section 183. No person shall act as agent of an in- 
 surance company not incorporated in this State, until he has 
 complied with all the requirements of the laws of this State 
 relating to such companies and their agents ; and every per- 
 son so acting without such compliance, or who knowingly 
 procures payment or any obligation for the payment of any 
 premium for insurance, by fraudulent representations, sliall 
 be punished by a fine not exceeding one thousand dollars for 
 each offence. 
 
 Section 184. Every agent of such insurance company 
 neglecting to make the returns required by law, shall forfeit 
 twenty-five dollars for each neglect, to be recovered by the 
 Treasurer of the Commonwealth. Every agent so neglect- 
 ing shall be immediately notified thereof by the Treasurer : 
 and if he continues said neglect for ten days after such 
 notice is deposited in the post-office, he shall forfeit five hun- 
 
 59 
 
 Fee. 
 
 Penalty. 
 
 Location and 
 kind of com- 
 pany, how to 
 be advertised 
 to the public. 
 G.S.58, §73. 
 See sect. 216. 
 
 Not to act 
 until laws 
 are complied 
 with, nor to 
 procure in- 
 surance by 
 fraud. 
 
 G.S 58, § 74. 
 See sect. 202. 
 Penalty. 
 
 Penalty for 
 neglect to 
 make re- 
 turns. 
 
 G.S.58, §76. 
 See sects. 
 179, 180. 
 
60 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 ProTiso. 
 
 Company 
 not comply- 
 ing with law 
 bound by its 
 contracts, 
 but agent li- 
 able to fine. 
 G.8.58, §72. 
 3 Gray, 215. 
 6 Gray, 73, 
 75, 204, 288, 
 376. 
 
 8 Gray, 200. 
 
 1 Allen, 436. 
 
 2 Allen, 398. 
 10 Allen, 231. 
 
 Agent per- 
 sonally liable 
 on such con- 
 tracts. 
 1864,114, § 2. 
 See sect. 170. 
 
 Agent per- 
 sonally liable 
 for taxes if 
 not paid by 
 company. 
 1864,114, § 3. 
 See sects. 
 192-196. 
 
 When to be 
 filed by com- 
 panies of 
 other States. 
 Form of. 
 
 G. S. 58, §§ 
 25, 71. 
 1867,267, §§ 
 2,3. 
 
 See sects. 
 197, 207-214. 
 
 dred dollars for every such neglect, to be recovered by the 
 Treasurer : provided^ that no agent shall be held liable if it is 
 made to appear to the satisfaction of the Treasurer that the 
 returns were duly made and deposited by said agent in the 
 post-office, properly directed to the Insurance Commissioner, 
 and that there was no neglect on bis part. 
 
 Section 185. If insurance is made by such insurance 
 company without complying with the requisitions of the laws 
 of this State, the contract shall be valid ; but the agent 
 making the insurance shall be liable to a fine not exceeding 
 one thousand dollars for each offence. 
 
 Section 186. The agent of any such insurance company 
 which does not comply with the laws of this Commonwealth 
 as to the appointment of a general agent, the filing of said 
 appointment, and the continuance of such agency, shall be 
 personally liable on all contracts of insurance made by or 
 through him, directly or indirectly, for and in behalf of any 
 such company. 
 
 Section 187. The agent of any such insurance company 
 which neglects to pay the taxes imposed on such company 
 by the laws of this Commonwealth, shall be personally liable 
 therefor, and the same may be recovered of him in an action 
 of tort in the name of the Commonwealth. 
 
 [Annual State:ments.] 
 
 Section 188. The general agent of every insurance com- 
 pany chartered or organized in any other State of the United 
 States, and doing business in this Commonwealth, shall, on 
 or before the fifteenth day of January in each year, transmit 
 to the Insurance Commissioner, and file in his office, a state- 
 ment* of its business, standing and affairs in the form pre- 
 
 * The provision of the General Statutes, (chap. 58, § 71,) requiring 
 the publication of a copy of this statement in newspapers in each county 
 in which the company has an agency, is repealed by Acts of 18G7, chap. 
 2G7, § 7. 
 
219 
 
 COMPANIES OF OTHER STATES AND COUNTRIES. 61 
 
 scribed or autliorized by law and adapted to the business 
 done by such company, signed and sworn to by the president 
 and secretary, and made out for the year ending on the pre- 
 ceding thirty- first day of December. 
 
 Section 189. All foreign insurance companies, associa- 
 
 tions, partnerships, firms or individuals, whether incorporated filed by com- 
 panies of 
 
 or not, transacting the business of fire, marine or life insur- foreign coun- 
 
 ' ~ j tries. 
 
 ance, or any other kind of insurance, in this State, shall, in g°s“oM^ 5 ! 
 the month of November in each year, return full annual 2 . 3 .’ ’ 
 
 statement of their condition and affairs to the Insurance 
 
 207-214 * 
 
 Department, made out at the home office for the preceding 
 calendar year, in the same manner and in the same form, 
 without erasure or addition, (except necessary explanation,) 
 and subject to the same liabilities as similar companies or 
 associations organized under the laws of this State, which 
 statement shall be verified and sworn to before some consul 
 • or vice-consul of the United States, by two or more of the 
 
 principal officers of such insurance companies. Supplemen- when to bo 
 
 filed by 
 
 tary annual statements of the business and condition of their American 
 
 DJT£LtlCXl€S* 
 
 American branches shall also be filed within the time, and 
 made out for the period required of companies in the United 
 States. 
 
 Section 190. In case of neglect or refusal to make such Liability for 
 
 neglect to 
 
 annual statements as provided in the preceding section, all 
 persons acting in this State as agents, or otherwise, in trans- ^ 
 
 acting the business of insurance for said companies, associa- 
 tions, partnerships, firms or individuals, shall be subject to 
 the same penalties provided by law in case of the failure of 
 any insurance company or association, organized under the 
 laws of this State, to make an annual statement as now 
 required by law. 
 
 Section 191. Any violation of the provisions of the two Penalties. 
 
 1870 , 349 , § 4 . 
 
 preceding sections shall subject the party guilty of such vio- 
 
220 
 
 62 
 
 Companies of 
 other States 
 to pay two 
 per. cent, on 
 premiums. 
 1862,224, § 2. 
 See sect. 203. 
 
 Companies of 
 foreign coun- 
 tries, four 
 per cent. 
 1862,224, § 2. 
 See sect. 203. 
 
 Taxes, when 
 payable. 
 1862,224, § 2. 
 1870,391, § 1. 
 See sect. 203. 
 
 Not liable to 
 other tax. 
 
 Reciprocal 
 taxes, &c., 
 imposed on 
 companies of 
 other States. 
 Q.S.58, §70. 
 1870,391, § 1. 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 latioii, to a penalty of five hundred dollars for each violation, 
 to be sued for and recovered in the manner provided for the 
 prosecution and recovery of penalties prescribed by the in- 
 surance laws of this State. 
 
 [Taxes, Fees, &c.] 
 
 Section 192. Each fire, marine, and fire and marine in- 
 surance company incorporated by any other State of the 
 United States, shall annually pay to the Treasurer of the 
 Commonwealth a tax of two per cent, upon all premiums 
 charged or received on contracts made in this Commonwealth 
 for the insurance of property, or received or collected by 
 agents in this Commonwealth. 
 
 Section 193. Each fire, marine, and fire and marine in- 
 surance company incorporated or associated under the laws 
 of any government or State other than one of the United 
 States, shall annually pay to the Treasurer of the Common- 
 wealth a tax of four per cent, upon all premiums charged or 
 received on contracts made in this Commonwealth for the 
 insurance of property, or received or collected by agents in 
 this Commonwealth. 
 
 Section 194. The aforesaid taxes shall respectively be 
 assessed by the Treasurer of the Commonwealth for the year 
 ending October thirty-first, and shall be paid within ten days 
 after the first Monday in December, in each year ; and no 
 other tax shall be assessed upon such insurance companies 
 so long as the two preceding sections continue in force. 
 
 Section 195. When, by the laws of any other State, any 
 taxes, fines, penalties, deposits of money, or of securities, or 
 other obligations or prohibitions, are imposed upon insur- 
 ance companies incorporated or organized under the laws of 
 this State, and transacting business in such other State, or 
 upon the agents of such insurance companies, so long as 
 
COMPANIES OF OTHER STATES AND COUNTRIES. 
 
 63 
 
 such laws continue in force, the same taxes, fines, penalties, 
 deposits and obligations shall be imposed upon all insur- 
 ance companies doing business in this State which are incor- 
 porated or organized under the laws of such other State, and 
 upon their agents. 
 
 Section 196. Insurance companies transacting business 
 in this State whose charters or other powers are derived from 
 governments or authorities out of the United States, except- 
 ing companies included in the provisions of section one hun- 
 dred ninety-three, shall through their agents in this' State, in 
 lieu of the relative taxes herein before indicated, be subject 
 to the payment annually of a tax of one per cent, on all 
 premiums and assessments collected by the agents of such 
 companies. 
 
 Section 197. Every insurance company not incorporated 
 in this Commonwealth, applying for admission to do business 
 therein, shall pay into the treasury, for filing copy of its 
 charter or deed of settlement, the sum of thirty dollars ; for 
 filing statement preliminary to admission, and for filing 
 each annual statement after admission, the sum of twenty 
 dollars. 
 
 [Miscellaneous.] 
 
 Section 198. Whenever, after setting aside a sum equal 
 to the premiums for the unexpired term on existing risks, 
 the cash assets of any fire insurance company not incor- 
 porated by the legislature of this Commonwealth and having 
 a specific capital, do not amount to more than three-fourths 
 of its original capital, the company shall, by assessing the 
 stock for the difference, repair its capital to the original 
 amount. No such company shall be permitted to do business 
 in this Commonwealth unless it complies with the provisions 
 of this section. 
 
 Companies 
 of foreign 
 countries, 
 excepting, 
 &c., to pay- 
 one per cent, 
 on pre- 
 miums. 
 G.S.58,§70. 
 See sect. 200. 
 
 Fees for fil- 
 ing copy of 
 charter and 
 statements. 
 1867,267, J 4. 
 
 Capital, 
 when to be 
 repaired. 
 
 Not to do 
 business, un- 
 less, &c. 
 1863, 249, H 
 7, 10. 
 
 See sects. 
 
 98, 215. 
 
64 
 
 INSURANCE LAWS OF MASSACnUSETTS. 
 
 Liability to 
 suit and at- 
 tachment. 
 
 G.S 63. § 15 
 10 Mass. 91. 
 16 Pick. 274. 
 3 Met. 420, 
 564. 
 
 6 Met. 391. 
 
 8 Gray, 199. 
 
 Laws relat- 
 ing to com- 
 panies of 
 foreign coun- 
 tries, to em- 
 brace those 
 not incorpo- 
 rated. 
 
 1867,267, § 1. 
 See sect 169. 
 
 Section 199. Insurance companies created by any other 
 State, having property in this State, shall be liable to be sued 
 and their property shall be subject to attachment in like 
 manner as residents of other States having property in this 
 State are liable to be sued and their property to be attached. 
 
 Section 200. The provisions of all general laws relating 
 to insurance companies chartered, incorporated or associated 
 in, or under, the laws of any foreign country, are hereby ex- 
 tended to all companies, associations and individuals formed 
 or associated in foreign countries and doing an insurance 
 business in this State, whether incorporated or not. 
 
ANNUAL STATEMENT. 
 
 65 
 
 GENERAL PROVISIONS RELATING TO ALL INSURANCE COM- 
 PANIES DOING BUSINESS IN THIS COMMONWEALTH, 
 WHEREVER CHARTERED OR ORGANIZED. 
 
 [Agents.] 
 
 Section 201. Whoever solicits insurance on behalf of 
 any fire or life insurance company, [whether] chartered 
 in this Commonwealth [or elsewhere] or transmits for any 
 person other than himself, an application for insurance, or a 
 policy of insurance, to or from said company, or advertises 
 that he will receive or transmit the same, shall be held to be 
 an agent of such company to all intents and purposes, and 
 within the meaning of the following section, unless it can be 
 shown that he receives no commission, or other compensa- 
 tion or consideration, for such service, from said company. 
 
 Section 202. An agent making insurance in violation of 
 any law of this State regulating insurance companies, shall 
 forfeit for each offence a sum not exceeding one thousand 
 dollars. 
 
 [Taxes and Fees.] 
 
 Section 203. Every corporation or association of persons 
 neglecting to pay the taxes imposed by sections forty-three, 
 forty-seven, one hundred ninety-two and one hundred ninety- 
 three, as herein before provided, shall be liable for the same 
 with costs and interest in an action of contract in the name 
 
 * This section, so far as it relates to agents of companies not incor- 
 porated in this State, is superseded by section 178, page 57, which is a 
 later enactment. Tlie receipt of compensation is not material upon the 
 question of agency in such companies. 
 
 ' 9 
 
 Who to be 
 
 deemed 
 
 agents. 
 
 1861, 170. 
 
 5 Gray, 497. 
 
 6 Gray, 204. 
 13 Gray, 79. 
 
 1 Allen, 436. 
 
 2 Allen, 1, 
 569. 
 
 3 Allen, 213. 
 9 Allen, 231. 
 See sect. 178. 
 
 Penalty for 
 violation of 
 law by 
 agents. 
 
 G.S.58,5 77. 
 
 Companies 
 neglecting to 
 pay taxes, 
 liable to suit 
 and injunc- 
 tion. 
 
 1862, 224, § 
 11 . 
 
 1870,391, § 1. 
 See sects 49, 
 194. 
 
6G 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 Fee for valu 
 ation of life 
 policies. 
 U.S.58, §64 
 See sects. 2, 
 9. 
 
 Fee for cer- 
 tiflcate of 
 valuation. 
 1870,349, § 8. 
 See sects. 2, 
 9. 
 
 Fees for 
 copies. 
 1867,267, § 6. 
 
 Form for 
 joint stock 
 companies. 
 G. S. 58, A. 
 See sect. 211. 
 
 of the Commonwealth at the suit of the Treasurer, and shall 
 be further liable, on application of the Treasurer of the Com- 
 monwealth therefor to any one of the justices of the supreme 
 judicial court, to injunction restraining said corporation or 
 association and the agents thereof, from the further prosecu- 
 tion of its business until all taxes dde as aforesaid with costs 
 and interest are fully paid. 
 
 Section 204. Every insurance company doing business 
 in this Commonwealth shall annually pay into the treasury 
 of the same, by the way of compensation for the valuation of 
 its policies, one cent on every thousand dollars insured by it 
 on lives. 
 
 Section 205. For each certificate of the valuation of the 
 outstanding policies of any insurance company doing busi- 
 ness in this Commonwealth, there shall be paid the sum of 
 two dollars, to be collected by the Insurance Commissioner 
 and paid into the treasury. 
 
 Section 206. For each copy of a paper filed in the office 
 of the Insurance Commissioner there shall be paid at the 
 rate of twelve cents a page, and for certifying the same the 
 sum of one dollar. Said fees shall be collected by the Com- 
 missioner and paid into the treasury. 
 
 [Annual Statements.] 
 
 Section 207. The form of annual statement for insur- 
 ance companies with specific capitals, shall be as follows : 
 
 1. State the name of the company. 2. Where located. 3. 
 When incorporated. 4. Amount of capital. 5. Amount of 
 capital actually paid in. 6. Number of shares and par value of 
 each. 7. Amount of fire risks outstanding. 8. Amount of 
 marine risks outstanding 9. Total amount of outstanding risks. 
 10. Amount of United States stock or treasury notes owned by 
 the company ; state amount of each kind, and par value and 
 
225 
 
 ANNUAL STATEMENTS. 
 
 67 
 
 market value of each. 11. Amount of State stocks; state 
 amount of each kind, and par value and market value of each. 
 
 12. Amount of bank stocks ; state amount of each kind, and 
 par value and market value of each. 13. Amount of railroad 
 stocks ; state amount of each kind, and par value and market 
 value of each. 14. Amount of railroad bonds ; state amount 
 of each kind, and par value and market value of each. 15. Cash 
 value of real estate owned by the company. 16. Amount of 
 cash on hand. 17. Amount of cash in hands of agents. 18. 
 
 Am ount loaned on mortgage of real estate. 19. Amount loaned 
 
 ^on collateral. 20. Amount loaned without collateral. 21. 
 Amount of all other investments. 22. Amount of premium 
 notes on risks terminated. 23. Amount of borrowed money, 
 specifying collaterals given for the same. 24. Amount of losses 
 due and unpaid. 25. Amount of losses claimed and unpaid. 26. 
 Amount of losses reported, upon which the liability of the com- 
 pany is not determined. 27. Amount of all other claims against 
 the company. 28. Amount of cash received for premiums on 
 fire risks. 29. Amount of cash received for premiums on marine 
 risks. 30. Amount of notes received for premiums on fire risks. 
 
 31. Amount of notes received for premiums on marine risks. 
 
 32. Amount of cash received for interest. 33. Amount of in- 
 come received from all other sources. 34. Amount of fire losses 
 paid last year. 35. Amount of marine losses paid last year. 
 
 36. Amount of dividends paid the last year. 37. Amount paid 
 for expenses of office. 38. Amount of other expenditures. 
 
 . 39. Amount received in cash for fire risks not terminated. 40. 
 Amount required to re-insure all outstanding risks. 41. Amount 
 of premium notes on risks not terminated. 42. Amount of de- 
 linquent notes not charged to profit and loss. 43. Highest rate 
 of interest received. 44. Highest rate of interest paid on money 
 borrowed. 45. How many shares of the capital stock are 
 pledged to the company. 46. Balance to credit of profit and 
 loss account. 47. Balance to debit of profit and loss ac- 
 count. 48. How many shares of the capital stock are owned 
 by the company, or not subscribed for. 49. What amount of 
 the capital consists of the stockholders’ notes. 
 
 Section 208. The form for mutual marine, and mutual Form for 
 
 fire and marine insurance companies, shall be as follows : 
 
 mutual ma- 
 rine, and 
 mutual fire- 
 
226 
 
 68 
 
 marine c 
 panies 
 G. S. 58, 
 1860,156, 
 See sect. 1 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 1. Name or title of the company. 2. Where located. 3. 
 When incorported. 4. For what period. 5. Amount invested 
 211 . in United States funded debt, Avith the amount of each kind 
 owned ; state par value and market value, per share. 6. Amount 
 of United States treasury notes owned ; state par value and 
 market value, per share. 7. Amount invested in State stocks, 
 with the amount of each kind OAvned ; state par value and 
 market value per share. 8. Number of shares OAvned in each 
 bank wdiich are not pledged; state par value and market value, 
 per share. 9. Number of shares OAvned in each railroad; amount 
 inA^ested in each, at cost on books ; state par value and marked' 
 value, per share. 10. Amount received in railroad bonds, and 
 amount of each kind, at cost on books ; state par value and mar- 
 ket value, per share. 11. Amount invested in real estate, as it 
 stands on the books of the company. 12. State specifically all 
 other investments or property. 13. Cash on hand. 14. Cash 
 in hands of agents. 15. Amount loaned on mortgage of real 
 estate. 16. Amount loaned on notes secured by collaterals of 
 personal ^woperty. 17. Amount loaned on notes without col- 
 lateral security. 18. Amount of stock notes on hand not OA^er- 
 due. 19. Amount of stock notes on hand that are past due. 
 20. Amount of premium notes on risks terminated. 21. Amount 
 of premium notes on risks not terminated. 22. Amount of de- 
 linquent premium notes not charged to profit and loss. 23. 
 Amount of scrip issued for profits which remains outstanding. 
 24. Amount of debts due the company other than those before 
 enumerated: state particularly their respective amounts and 
 origin. 25. Amount of marine risks not terminated. 26. 
 Amount of fire risks not terminated. 27. Amount received in 
 cash for fire risks not terminated. 28. State the highest rate of 
 interest received. 29. Amount received for interest. 30. State 
 the highest rate of interest paid for money borroAved. 31. 
 Amount paid for interest. 32. State the amount borroAv^ed 
 which remains unpaid, and state particularly the collateral given 
 for each loan. 33. Amount of fire losses paid the past year. 
 34. Amount of marine losses paid the past year. 35. Amount 
 of losses ascertained and unpaid. 36. Amount of losses claimed 
 other than those ascertained and unpaid. 37. Amount of ex- 
 penses, taxes, and commissions, paid the past year. 
 
227 
 
 ANNUAL STATEMENTS. 
 
 69 
 
 Section 209. The form for mutual fire insurance compa- Form for 
 
 mutual fire 
 
 iiies shall be as follows. All companies having policies in g.TXc. 
 
 1860 156 § 1 
 
 separate classes, shall in their answers specify the respective 
 amounts in each class. 6 Gray, 73. 
 
 1. Kame of company. 2. Where located. 3. When incor- 
 porated. 4. Date of commencement of business. 5. Amount 
 insured by existing policies. 6. Amount of premiums and. de- 
 posits on same. 7. Amount of premiums on same received in 
 cash. 8. Amount of United States and State stocks or notes; 
 state par value and market value of each. 9. Amount of bank, 
 stocks, railroad stocks and bonds ; state number of shares in. 
 each bank and railroad comjoany, and par value and market 
 "s alue of each. 10. Cost value of real estate owned by the com- 
 pany. 11. Amount loaned on mortgage of real estate., 12. 
 Amount of other investments. 13. Cash on hand and in bank. 
 14. Cash in hands of agents. 15. Amount of assessments re- 
 garded good, due and not paid. 16. Amount of losses ascer-- 
 tained and unpaid. 17. Amount of other losses claimed. 18.. 
 Amount owed for borrowed money, and on what securities.. 19.. 
 Amount owing for dividends on expired policies. 20. Amount 
 and particulars of all other liabilities. 21. Estimated amount 
 in cash required to re-insure all outstanding risks. 22. Amount 
 of polic’es terminated the past year. 23. Amount of policies 
 issued the past year. 24. Amount of premiums received in cash 
 the past year. 25. Amount of premiums received in notes the 
 past year. 26. Amount received on assessments the past year.. 
 27. Amount received for interest, including dividends on stocks 
 and all other revenue on investments, the last year. 28. Amount 
 of losses paid the last year. 29. Amount of cash dividends paid 
 to policy-holders the past year. 30. Amount paid in cash as 
 return premiums on policies cancelled the past year. 31. 
 Amount for expenses, taxes and commissions. 32. State the 
 gain or loss in investment account arising from changes in mar- 
 ket values of securities the past year. 33. Amount assessed 
 the last year. 34. Amount of liability to future assessment. 
 35. Highest rate of interest paid. 36. Highest rate of interest 
 received. 37. Amount insured on real estate. 38. Amount 
 insured on personal estate. 39. What proportion of the property 
 insured is in Massachusetts ? 40. What proportion of the losses 
 was on property in Massachusetts ? 
 
228 
 
 70 INSURANCE LAWS OF MASSACHUSETTS. 
 
 SECTION 210. Tlio form for life insurance companies shall 
 be as follows : 
 
 1860,156, § 2. 
 
 See sect. 211. 
 
 1. Name of the company. 2. When chartered. 3. For what 
 period. 4. Where located. 5. State in full the assets of the 
 company. 6. Number of shares owned in each bank; state par 
 value and market value, per share. 7. Number of shares owned 
 * in each railroad, stating the corporate name of each, and amount 
 invested in each, at cost, on books ; state par value and market 
 value, per share. 8. Amount owned in railroad bonds ; state 
 par value and market value, per share. 9. Amount invested in 
 real estate, at cost, on the books of the company. 10. Amount 
 loaned on mortgages of real estate. 11. Amount loaned on 
 notes secured by collaterals of personal property. 12. i^mount 
 loaned on notes without collaterals. 13. State in full all other 
 investments. 14. How much included in the foregoing state- 
 ments of assets consists of premium notes on policies not re- 
 turned as now in force ? 15. Number, date, and amount of each 
 outstanding policy not heretofore returned, and age of the in- 
 sured. 16. Number, date, and amount, of each policy which 
 has within the year ceased to be in force, how terminated, what 
 has been paid to the legal holder of the policy, and age of the 
 insured. 17. Amount of losses ascertained and unpaid. 18. 
 Amount of losses claimed against the company, whether 
 acknowledged as due or not by the company. 19. Amount due 
 from the company on its declared, promised, or acknowledged 
 indebtedness or other claims, including dividends, bonuses on 
 distribution of surplus, or as profits. 20. Amount received for 
 premiums the past year. 21. Amount received for premiums 
 in cash. 22. Amounts received for premiums in promissory 
 notes or securities. 23. Amount received for interest the past 
 year. 24. Amount paid for interest the past year. 25. Amount 
 of guarantee funds ; and state particularly whether the same are 
 in cash or subscription notes. 26. How are dividends, distribu- 
 tions of surplus funds, bonuses or estimated profits paid, whether 
 in cash, scrip, or otherwise on credit, and whether on demand, 
 or if on credit, for what length of time, and whether payable at 
 a specific time or indefinitely at the discretion of the company. 
 27. Amount paid for expenses, taxes and commissions, the past 
 year. 
 
229 
 
 MISCELLANEOUS PROVISIONS. 
 
 71 
 
 Section 211. The Insurance Commissioner is hereby commis- 
 sioner may 
 
 authorized to amend and revise the forms of annual state- foregoing*' ’ 
 ment herein before prescribed, and to propose such addi- Sf267,5 3. 
 tional inquiries as are necessary to elicit a full exhibit of 
 the business and standing of tlie various insurance compa- 
 nies doing business in this Commonwealth. 
 
 Section 212. The time herein before prescribed for filing May extend 
 
 ^ time for fil- 
 
 annual statements, may be extended by the Commissioner 
 
 in favor of any company for good cause shown, but not See"sect3. 61, 
 
 188^ ISd* 
 
 beyond the first day of the month next after the date herein 
 before specified for filing the same. 
 
 Section 213. Any company doing business in this State, 
 neglecting to make returns in the manner and within the 
 time herein before authorized and prescribed, shall forfeit i867,267,§3! 
 
 6 Gray, 73. 
 
 one hundred dollars for each day’s neglect ; and every com- raise re- 
 turns. 
 
 pany that wilfully makes false statements shall be liable to 
 a fine of not less than five hundred nor more than one 
 thousand dollars. 'Any new business done by any company 
 or its agents in this State after neglect to make the pre- 
 scribed returns, shall be deemed to be done in violation of 
 law. * 
 
 Section 214. The Insurance Commissioner shall have Commis- 
 sioner may 
 
 authority to prevent the publication of any part of the Statements 
 annual statements of the life insurance companies, until panies‘!°“" 
 
 1 • r. • 1 ^ • • 1*^64,220, } 
 
 such time as the annual report of said Commissioner is 
 made to the legislature. 
 
 [Miscellaneous.] 
 
 Section 215. When the actual funds of any life insur- ufe insur- 
 
 . , , ance com- 
 
 ance company doing business in this Commonwealth are not panics not to 
 
 ^ issue policies 
 
 of a net casli value equal to its liabilities, counting (as such) premium 
 the net value of its policies according to the Combined impaired. 
 
 ^ 1863, 148. 
 
 Experience,” or “Actuaries’ ” rate of mortality, with inter- see sects. 98, 
 
72 
 
 INSURANCE LAWS OP MASSACHUSETTS. 
 
 Penalty. 
 
 Companies 
 to conduct 
 business in 
 corporate 
 name only. 
 Policies. 
 
 G.S 5S, §24. 
 See sect. 182. 
 
 Conditions of 
 insurance to 
 be stated in 
 body of 
 policy. 
 
 1861, 152. 
 1864,196, § 1. 
 7 Allen, 42, 
 132. 
 
 est at four per centum per annum, it shall be the duty of the 
 Insurance Commissioner to give notice to such company and 
 its agents, to discontinue issuing new policies within this 
 Commonwealth until such time as its funds have become 
 equal to its liabilities, valuing its policies as aforesaid. Any 
 officer or agent who, after such notice has been given, issues 
 a new policy from and on behalf of such company before its 
 funds have become equal to its liabilities as aforesaid, shall 
 forfeit for each offence a sum not exceeding one thousand 
 dollars. 
 
 Section 216. Every insurance company doing business 
 in this State shall conduct the same in the proper and 
 corporate name of said company, and not by various and 
 different names. The policies and contracts of insurance 
 issued by any company shall be headed or entitled only by 
 the corporate name or title of said company. 
 
 Section 217. In all insurance against loss by fire by 
 companies chartered or doing business in this Common- 
 wealth, the conditions of the insurance shall be stated in 
 the body of the policy, and neither the application of the 
 insured nor the by-laws o£ the company shall be considered 
 as a warranty or a part of the contract, except so far as 
 they are incorporated in full into the policy, and so appear 
 on its face, before the signatures of the officers of the com- 
 
 pany. 
 
 Term of SECTION 218. No policy sliall be issued for a term 
 
 policy 
 
 GgS g ^5 24. exceeding seven years. But this section shall not apply to 
 See sect. 38. insurance companies. 
 
 Insurance SECTION 219. No iusurancc company shall deal or trade 
 
 companies , i 
 
 &°c buying or selling goods, wares, merchandise, or other like 
 
 G.s.58,§23, property, excepting such articles as have been insured by 
 such company, on which losses are claimed by the insured. 
 
MISCELLANEOUS PROVISIONS. 
 
 73 
 
 Section 220. The governor and council may allow such 
 reasonable compensation for services rendered and expenses 
 incurred in enforcing the laws relating to insurance compa- 
 nies as they deem proper. 
 
 ProTision for 
 cost of en- 
 forcing laws, 
 G.S.58,§77. 
 
232 
 
 1 
 
 74 
 
 INSURANCE LAWS OF MASSACHUSETTS. 
 
 PREVENTION OF FRAUDS ON INSURANCE COMPANIES. 
 
 S°infent ^ECTiON 221. Wlioever wilfully burns a building or any 
 insurer, how goods, wares, merchandise, or other chattels, which are at 
 
 punished. , . . 
 
 G.s. 161, §7. the time insured against loss or damage by fire, with intent 
 to injure the insurer, whether such person is the owner of 
 the property burnt or not, shall be punished by imprison- 
 ment in the State prison not exceeding twenty years. 
 
 Destroying SECTION 222. Wliocver wilfullj casts away, burns, sinks 
 8ureT?how or otherwise destroys a ship or vessel with intent to injure 
 s\*i6i,' k or defraud an insurer of such ship or vessel, or of any prop- 
 erty laden on board the same, or of any part thereof, shall 
 be punished by imprisonment in the State prison for life or 
 any term of years. 
 
 Fitting out Section 223. Whoever lades, equips or fits out, or assists 
 deSd^in- ill lading, equipping or fitting out, a ship or vessel, with 
 punShed.^ intent that the same shall be wilfully cast away, burnt, sunk 
 
 G. S. 161, § 
 
 or otherwise destroyed, to injure or defraud an insurer of 
 such ship or vessel, or of any property laden on board the 
 same, shall be punished by imprisonment in the State prison 
 not exceeding twenty years, or fine not exceeding five thou- 
 sand dollars and imprisonment in the jail not exceeding 
 three years. 
 
 Making or SECTION 224. If tlic owiicr of a ship or vessel, or of 
 
 procuring 
 
 property laden or pretended to be laden on board the same, 
 punished, or if any other person concerned in the lading or fitting out 
 78- ’ ^ of a ship or vessel, makes out or exhibits, or causes to be 
 
 made out or exhibited, a false or fraudulent invoice, bill of 
 lading, bill of parcels, or other false estimates, of any goods 
 or property laden, or pretended to be laden, on board such 
 
233 
 
 PREVENTION OP FRAUDS ON INSURERS. 75 
 
 ship or vessel, with intent to injure or defraud an insurer of 
 such ship, vessel, or property, or of any part thereof, he 
 shall be punished by imprisonment in the State prison not 
 exceeding ten years, or by fine not exceeding five thousand 
 dollars and imprisonment in the jail not exceeding two 
 years. 
 
 Section 225. If a master, other officer, or mariner, of a Making or 
 
 ' ' ' procuring 
 
 ship or vessel, makes, or causes to be made, or swears to, SFntent’ 
 any false affidavit or protest, or if an owner or other person ^ 
 
 concerned in such ship or vessel, or in the goods or prop- 
 
 erty laden on board the same, procures any such false affi- 
 
 davit or protest to be made,' or exhibits the same, with 
 intent to injure, deceive, or defraud an insurer of such ship 
 or vessel, or of any goods or property laden on board the 
 same, he shall be punished by imprisonment in the State 
 prison not exceeding ten years, or by fine not ex(jgeding 
 five thousand dollars and imprisonment in the jail not 
 exceeding two years. 
 
76 
 
 INSURANCE LAWS OP MASSACHUSETTS. 
 
 Jury to be 
 summoned 
 upon com- 
 plaint and 
 certificate. 
 1867 , 303 § 1 . 
 
 Warrant, 
 how served. 
 
 Oath of 
 jurors. 
 1867 , 303 , § 2 . 
 
 INQUESTS IN CASES OF FIRE. 
 
 Section 226. When property is destroyed by fire, and a 
 complaint, within thirty days thereafter, is subscribed and 
 sworn to by any person before any police court, or any 
 municipal court, or any trial justice, alleging that reasona- 
 ble grounds exist for believing that the fire was caused by 
 design, and a majority of the mayor and aldermen or select- 
 men of the city or town respectively in which said property 
 is situated certify in writing, that in their opinion the same 
 is a proper case for investigation, such court or justice shall 
 forthwith issue a warrant to a constable of the place where 
 the pi^crty was destroyed, requiring him forthwith to 
 summon^six good and lawful men of the county to appear 
 before the court, or justice, at a time and place expressed in 
 the warrant, to inquire when and by what means the fire 
 originated ; which warrant shall be served and returned in 
 the manner prescribed in section three of chapter one hun- 
 dred and seventy-five of the General Statutes ; and the 
 constables and jurors shall be subject to the penalties 
 therein specified for similar neglects. If any person so 
 summoned does not appear, the constable shall by order of 
 the justice or court, return some person from the by-stand- 
 ers to complete the number. 
 
 Section 227. The justice or court shall in view of the 
 spot on which the property was destroyed administer to the 
 persons thus summoned or returned the following oath : 
 “You solemnly swear, that you will diligently inquire and 
 true presentment make, on behalf of this Commonwealth, 
 when and by what means the fire which has here occurred 
 
INQUESTS IN CASES OF FIRE. 
 
 77 
 
 was caused, and that you will return a true inquest accord- 
 ing to your knowledge and such evidence as shall be laid 
 before you. So help you, God.” 
 
 Section 228. The justice or court may issue subp(nnas 
 for witnesses returnable forthwith at a time and place there- 
 in set forth. Their attendance may be enforced in like 
 manner as if they had been subpoenaed in behalf of the 
 Commonwealth. 
 
 Section 229. An oath to the following effect shall be oath of wit- 
 
 ^ nesses. 
 
 administered to such witnesses : “ You solemnly swear, that i86(,303, §4- 
 the evidence which you shall give to the inquest, concerning 
 the origin of the fire of which inquiry is now to be made, 
 shall be the truth, the whole truth, and nothing but the 
 truth. So help you, God.” 
 
 Section 230. The testimony shall be reduced to writing Testimony, 
 
 ° how taken. 
 
 by the presiding justice, or some person by his direction, i867,303,§5. 
 and subscribed by the witnesses. 
 
 Section 231. The jury, after hearing the testimony and 
 making all needful inquiry, shall draw up and deliver to the 
 justice or court their inquisition under their hands, in which 
 they shall find and certify when and by what means the fire 
 was caused ; and said inquisition and testimony thus sub- 
 scribed shall within one week thereafter, be filed by the 
 magistrate with the clerk of the courts for the county, or in 
 the county of Suffolk with the clerk of the municipal court. 
 
 Section 232. The fees of the magistrate and the ex- costs. 
 
 ^ 1867 , 303 , $ 7 . 
 
 penses of the inquisition, shall be the same, and be returned, s. 175 , § 
 audited, certified and paid in like manner as is provided 
 for coroners’ inquests. 
 
^ 236 
 
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INDEX. 
 
 Page. 
 
 ACCUMULATION, limit of, before scrip becomes redeemable, . . .46, 47 
 
 Accumulations, of mutual marine and fire-marine companies, how to be 
 
 invested, 9, 26, 27, 44 
 
 ACTS OF INCORPORATION. [-See also Charters ] 
 
 passed since March 11, 1831, subject to amendment, alteration or repeal 
 
 by the Legislature, 22 
 
 notice to be given of applications to the Legislature for, .... 5 
 
 to specify amount of capital stock required, 5 
 
 proof of publication of, 5 
 
 waiver and admission of, 6 
 
 petition and proof of notice, when to be presented to the Legislature, . 5 
 
 time extended 20 days in case of unavoidable accident, &c., . . 6 
 
 ACTUARIAL assistance in making valuation of life insurance policies, provi- 
 
 sion for, 1 
 
 actuarial services of the Insurance Commissioner, compensation for, . 1 
 
 “ACTUARIES’ ’’ RATE OF mortality, prescribed as a standard for valuation 
 
 in certain cases, 49, 51, 71, 72 
 
 ADMINISTRATORS. [See Executors, &c.] 
 
 AGENTS OF INSURANCE companies. [See General Agent and Attorney, 
 and Sub-Agents.] 
 
 who may be deemed such, 57, 65 
 
 not to make insurance in violation of any law of this State, under pen- 
 alty, &c,, 65 
 
 not to act for any company after it has failed to make its annual statement, 71 
 not to issue new policies of life insurance in certain cases, under penalty, &c., 71 
 
 may be summoned and examined by Insurance Commissioner, . . 2 
 
 penalty for refusal to appear and testify, 2 
 
 violations of law by, to be reported by the Commissioner, and prosecuted 
 
 by the Attorney-General, 3 
 
 penalty, and personal liability of, for issuing, &c., policy extending beyond 
 
 the term of any charter granted in this State, .... 10 
 
 Or COMPANIES NOT INCORPORATED IN THIS State, who may be deemed 
 
 such, 57 
 
 may be required by Commissioner to exhibit their books and answer inter- 
 rogatories, 2 
 
 penalty for refusal or neglect to answer within thirty days, . . 2 
 
 to be furnished by the Commissioner with blank forms for returns, . . 3 
 
 to give bond to the Treasurer of the Commonwealth to make returns of 
 business done by or through them, and pay the taxes imposed 
 
 by law, ’. 57, 58 
 
 penalty for acting before giving such bond, 57, 58 
 
 penalty for neglect to make such returns, 59, 60 
 
 to be notified of such neglect by the Treasurer, 59 
 
 11 
 
INDEX. 
 
 Page. 
 
 AGENTS OF COMPANIES NOT INCORPORATED IN THIS STATE — Continued. 
 
 not liable if it appears that the returns were duly made and mailed to 
 
 the Insurance Commissioner, 60 
 
 personally liable for the taxes, and to injunction, if the company fails 
 
 to pay the same, 60, 66 
 
 to procure from the Commissioner a certificate of authority to act for each 
 
 company, 58 
 
 penalty for acting or aiding in any manner, without such certificate, . 59 
 
 not to act until they have complied with all requirements of law, under 
 
 penalty, &c,, 59 
 
 nor until the companies for which they act have complied with the 
 
 same, under penalty, &c., 60 
 
 to exhibit and advertise the location and kind of each company repre- 
 sented by them and how, . . . ^ 59 
 
 not to procure payment for insurance by fraudulent representations, under 
 
 penalty, &c., 59 
 
 to be personally liable on contracts of insurance made by or through them, 
 if the company has not duly appointed a general agent and 
 
 attorney to accept service, &c., 60 
 
 to be subject to the same penalties, obligations, &c., as are imposed on 
 agents of companies of this State, by the laws of the several 
 
 States to which their companies belong, 61 
 
 AGREEMENT of subscription to safety fund of mutual marine and fire- 
 
 marine companies, form of, &c., ....... 43 
 
 AMENDMENT, alteration or extension of charters. [See Charters.] 
 ANNUAL REPORT of Insurance Commissioner, on insurance companies, 
 
 when and how to be made, 4 
 
 to include abstract of returns of companies and their agents, ... 4 
 
 and results of valuation of policies of life insurance, .... 4 
 
 and reports of receivers of insurance companies, or abstracts the . 
 Commissioner to make regarding loan fund associations, . 
 
 and of all the receipts and expenditures of his department, 
 
 ANNUAL STATEMENTS, when and how to be made and filed by insurance 
 
 companies incorporated in this State, 17, 18 
 
 b}' companies of other States of the United States, .... 60 
 
 by companies of foreign countries, 61 
 
 supplementary, by American branches of foreign companies, . . 61 
 
 fees for filing, 63 
 
 form of, for joint-stock companies, 66, 67 
 
 for mutual marine, and mutual fire-marine companies, . . .67, 68 
 
 for mutual fire companies, 69 
 
 for life insurance companies, 70 
 
 how to be signed and sworn to, 17, 18, 61 
 
 forms prescribed may be amended and revised by the Commissioner, and 
 
 additional inquiries proposed, 71 
 
 time prescribed for filing may be extended by Commissioner for cause, 
 
 within certain limits, 71 
 
 penalty for neglect to make, as required by law, 61, 71 
 
 for making false statements, 71 
 
 new business done after neglect to make, to be deemed in violation of law, 71 
 of life insurance companies, may be withheld by the Commissioner until 
 his annual report is published, 
 
 71 
 
239 
 
 INDEX. 81 
 
 Page. 
 
 ANNUAL STATEMENTS— Con^inwec?. 
 
 companies classifying their risks, to return the respective amounts in each 
 
 class, 69 
 
 stock and mutual (combined) companies to make separate, in the forms 
 prescribed for joint-stock and mutual fire companies respec- 
 tively, 41 
 
 APPLICATIONS TO the Legislature. [See Acts of Incorporation, 
 and Charters.] 
 
 To THE Supreme Judicial Court, in what cases may be made, 16, 18, 19, 20, 
 
 36, 38, 66 
 
 Of the insured, not to form part of policy or contract, unless incorporated 
 
 in body of the policy, before the signatures, .... 72 
 
 ASSESSMENTS, in Joint-Stock Fire Companies, to be laid on the stock- 
 holders, when the capital is impaired twenty-five per cent., . 29, 63 
 In Mutual Fire Companies, provisions concerning, . . .34, 40 
 
 collection of by receivers may be stayed by supreme judicial court, . . 21 
 
 ASSIGNMENTS of policies, secretary to record, 24, 31, 43 
 
 ATTORNEY to accept service of process. [See General Agent and 
 Attorney.] 
 
 ATTORNEY-GENERAL, to prosecute insurance companies, their officers and 
 
 agents, for violation of law, 3 
 
 may prosecute loan fund corporations and their officers for the same, . 4 
 
 BOND, official, to be given by Insurance Commissioner, in sum of ten thou- 
 sand dollars, with sufficient securities, &c., .... 4 
 
 secretary and treasurer of insurance companies to give, in sum required by 
 
 directors, g 
 
 general agent and attorney of companies not incorporated in this State to 
 give, in sum of two thousand dollars, with condition to accept 
 
 service, &c., 55 
 
 agents of fire, marine, and fire-marine companies not incorporated in this 
 State, to give, in sum of two thousand dollars, with condition 
 
 to pay taxes, &c., 57 
 
 agents of other such companies to give, in sum of one thousand dollars, 
 
 with condition to make returns, pay taxes, &c., ... 58 
 
 BOTTOMRY, money lent on, may be insured by joint-stock marine companies, 28 
 
 BROKERS, INSURANCE, what constitutes, 56 
 
 not to act without certificate of authority from Insurance Commissioner, . 56 
 
 limit of authority to act, 57 
 
 penalty for acting without authority, 57 
 
 BURNING building, ship, merchandise or other property, with intent to injure 
 
 or defraud insurer, how punished, 74 
 
 BY-LAWS, insurance companies may adopt, not repugnant to their charters 
 
 or laws of the State, 7 
 
 what provisions ma}” be made in, 8 
 
 penalties may be annexed to, not exceeding twenty dollars for one offence, 8 
 
 not to restrictor designate the county in which the company shall be sued, 8 
 
 not to limit the right to sue the company to a period of less than two years, 8 
 
 not to be considered as part of contract or policy of insurance, unless in- 
 corporated in body of policy before signatures, ... 72 
 
 may provide for election of vice-president, and prescribe his duties, . . 8 
 
240 
 
 82 
 
 INDEX. 
 
 PAaz. 
 
 CAPITAL STOCK, applications for acts of incorporation to specify the amount 
 
 of required, 5 
 
 Joint-Stock Companies to return amount of annually to Tax Commis- 
 sioner, 13 
 
 shares of, to be of par value of one hundred dollars each, .... 23 
 
 to be paid in cash within one year from date of charter, .... 26 
 
 Insurance Commissioner to examine, and directors to make oath to pay- 
 ment of, 26 
 
 how to be invested, 9, 27 
 
 tax on corporate shares or franchise, provisions concerning, . . . 13-17 
 
 Stock and Mutual (combined) Companies, if in Boston, to have a 
 guarantee (capital of $100,000; in any other city or town, of 
 
 $50,000, 41 
 
 how to be paid in and invested, 9, 26, 27, 41 
 
 Mutual Marine and Fire-Marine Companies to have, if in Boston, a 
 
 cash or stock-note capital or safety-fund of $200,000, . . 43 
 
 in any other city or town, of $100,000, 43 
 
 Mutual Life Insurance Companies to hav^e a guarantee capital of 
 
 $100,000, 48 
 
 how to be paid in and invested, 9, 26, 27, 48 
 
 when and how to be redeemed, 49 
 
 Joint-Stock Companies not incorporated in this State, to have a 
 capital of at least $100,000, paid in cash and invested, exclu- 
 sive, &c., 53 
 
 Joint-Stock Fire Companies, capitals of, when impaired twenty-five 
 
 per cent., to be restored to original amount by assessing stock, 29, 63 
 CERTIFICATE OF AUTHORITY to be obtained from Commissioner by 
 
 joiot-stock companies before issuing policies, .... 26 
 
 to be procured from Commissioner by officers, insurance brokers, agents or 
 sub-agents of companies not incorporated in this Stf*'' 
 acting or aiding in any manner the business thereof 
 to state what 
 
 may be revoked by the Commissioner, 5» 
 
 continuance and annual renewal of, 57, 58 
 
 fee to be paid for, 57, 59 
 
 penalty for acting or aiding in any manner without, . . . ^ . 59 
 
 CERTIFICATES of profits. [See Mutual Marine Companies.] 
 
 of valuation of life policies, 66 
 
 CERTIFIED COPIES of papers filed in Insurance Department, fees for, . 66 
 
 CHARTERS. [See Acts of Incorporation.] 
 
 granted since March 11, 1831, subject to amendment, alteration or repeal 
 
 by the Legislature, 22 
 
 notice of acceptance of, and organization under, to be given within one 
 
 year^from date of, 6 
 
 to become extinct by omission of the company to do business for onei'ear, 19 
 companies whose charters have expired or been annulled, to continue 
 
 bodies corporate for certain purposes, 20 
 
 notice to be given of petitions to the Legislature for alteration or exten- 
 sion of, 5 
 
 to specify the amendment desired, 5 
 
 proof of publication of, how made, 5 
 
 waiver and admission of, 6 
 
 petition and proof of notice, when to be presented to the Legislature, 5 
 
241 
 
 INDEX. 
 
 83 
 
 Page. 
 
 CHARTERS — Continued. 
 
 time extended twenty days in case of unavoidable accident, &c., . 6 
 
 copy of, to be filed by companies not incorporated in this State, on apply- 
 ing for admission to do business here, 55 
 
 fee for filing, 63 
 
 CLERK, Insurance Commissioner may appoint, 1 
 
 salary of, 1 
 
 Clerical assistance in making valuation of life policies, provision for, 1 
 
 “COMBINED EXPERIENCE” rate of mortality. [See “Actuaries’” 
 
 RATE, &C.] 
 
 COMMISSIONER. [See Insurance Commissioner, and Tax Commis- 
 sioner.] 
 
 COMPENSATION of Insurance Commissioner, 1 
 
 of his clerk, 1 
 
 for actuarial and clerical assistance in making valuation, provision for, . 1 
 
 CONTENTS, table of, iv 
 
 COPIES of papers, fees for making and certifying, 66 
 
 CREDITORS, individual liability of officers of companies to, in certain cases, 10, 
 
 28, 39, 40, 45 
 
 of stockholders to, in certain cases, 10, 28 
 
 of agents to, in certain cases, 60 
 
 policies of life insurance, when to inure to benefit of married woman, or 
 
 that of her children, as against, 50 
 
 to inure to any person for whose benefit the policy was procured, as 
 
 against, 51 
 
 premiums paid with intent to defraud creditors, to inure to their benefit, . 51 
 
 DEED OF SETTLEMENT. [^See Charters, and Fees.] 
 
 DEFICIENCY. [>8ee Impairment of Capital, and Premium Reserve.] 
 DEPOSITS OF Moneys or Securities, reciprocal required of companies of 
 
 other States, 62, 63 
 
 Treasurer of Commonwealth to hold in certain cases, .... 9 
 
 DIRECTORS, to make sworn statement of affairs of company to the Legisla- 
 ture or Commissioner, when required, 9 
 
 Commissioner may summon and examine under oath, .... 2 
 
 penalty for refusal to appear and testify, 2 
 
 [See Personal Liability.] 
 
 DISSOLUTION of Insurance Companies, provisions concerning, . . . 19-21 
 
 may be dissolved on petition of members to supreme judicial court, . . 19 
 
 effect of such dissolution, 19 
 
 charters of to become extinct by omission to do business for one year, . 19 
 
 supreme judicial court may fix time within which to wind up their 
 
 concerns, 19 
 
 companies whose charters have expired or been annulled, to continue 
 
 bodies corporate for certain purposes for three years, . . 20 
 
 receivers may be appointed by court, 20 
 
 court to have full equity jurisdiction in the premises, .... 20 
 
 mutual fire companies, when to close their concerns, 38 
 
 DISTRIBUTION of Surplus. {See Surplus ] 
 
 DIVIDENDS, list of unclaimed, to be published once in five years, . . 10 
 
 premiums received on risks not terminated, not to be divided, . . .25, 26 
 
 not to be paid to a stockholder whose residence is unknown, ... 24 
 
INDEX. 
 
 Page. 
 
 DIVIDENDS— Continued. 
 
 not to be made until the capital, Avhen reduced, is restored to its original 
 
 amount, 28 
 
 the insured in mutual fire companies entitled to share in profits, . . 33, 34 
 
 hoTT to be made by mutual marine companies, 45, 46 
 
 stockholders in life insurance companies entitled to what, .... 48 
 
 surplus of life insurance companies,'when and how to be distributed among 
 
 the assured, 49, 50 
 
 EXAMINATION of companies, their oflicers and agents, when to be made by 
 
 Commissioner, 2, 3, 4, 8 
 
 of the capital of joint-stock companies, 26 
 
 of loan fund corporations, 4 
 
 of assessments by* the supreme judicial court, 35-38 
 
 EXECUTORS, Administrators, Guardians and Trustees, may repre- 
 sent shares in their hands, and vote as stockholders, . . 24 
 
 not personally liable as stockholders, but estates in their hands are liable, 
 
 &c., 25 
 
 EXPENDITURES of Insurance Department, to be reported annually, . . 4 
 
 EXTENSION of Charter. [See Charters.] 
 
 FEES, for examining capital of joint-stock companies, 26 
 
 for certificates of authority to insurance brokers, .... 57 
 
 for certificates of authority to agents, &c., 59 
 
 for filing copy of charter or deed of settlement, 63 
 
 for filing statement preliminary to admission, 63 
 
 for filing annual statements, 63 
 
 for valuation of life insurance policies, 66 
 
 for certificates of valuation, 66 
 
 for copies of papers and certifying the same, .... 
 reciprocal imposed on companies of other States and their agents, . 
 
 FINES, reciprocal imposed on companies of other States and their agents, 
 
 FIRE INQUESTS, provisions concerning, 76, 77 
 
 jury may be summoned on complaint and certificate, .... 76 
 
 warrant for, how served and returned, and panel made up, . . 76 
 
 oath of jurors, form of and how administered, 76 
 
 witnesses, oath, attendance and testimony of, 77 
 
 verdict of jury, how made up and filed, 77 
 
 fees and costs, how returned and paid, 77 
 
 FIRE INSURANCE COMPANIES. [See Joint-Stock, Stock and Mu- 
 tual. Mutual Fire, and Mutual Fire-Marine, Insurance 
 Companies. Impairment of Capital. Taxes, &c ] 
 FIRE-MARINE INSURANCE COMPANIES. [See Joint-Stock, and Mu- 
 tual Fire-Marine Insurance Companies. Taxes, &c.] 
 FOREIGN INSURANCE COMPANIES. [See Insurance Companies op 
 
 OTHER States and Foreign Countries.] 
 
 FORMS prescribed for annual statements, 60-70 
 
 Commissioner may amend and revise, and propose additional inquiries, . 71 
 
 to furnish two or more copies of, to companies and agents, . . 3 
 
 FRANCHISE, corporate, of joint-stock companies, provisions concerning tax 
 
 on, 13-17 
 
243 
 
 INDEX. ^ 85 
 
 Page. 
 
 FRAUDS ON INSURERS, provisions for prevention of, 74, 75 
 
 penalty for burning building or personal property with intent to defraud 
 
 the insurer, 74 
 
 for burning or destroying ship or vessel with intent, &c., .... 74 
 
 for lading, equipping, &c., ship or vessel, with intent, &c., ... 74 
 
 for making or exhibiting false invoice, bill of lading, &c., with intent, &c., 74 
 
 for making or procuring false protest or affidavit with intent, &c., . . 75 
 
 FRAUDULENT insurance companies, proceedings against, . . .18, 19 
 
 FUNDS of insurance companies. [See Investments.] 
 
 GENERAL AGENT AND ATTORNEY to accept service of process, to 
 be appointed by companies not incorporated in this^State, be- 
 fore doing business here, 55, 56 
 
 mode and terms of appointment of, &c., 55, 56 
 
 appointment of to be continued and not revoked, until, &c., ... 55 
 
 effect of service upon, 55 
 
 to give bond to Treasurer of the Commonwealth, 55 
 
 to deposit with Insurance Commissioner copy of charter, and statement of 
 
 condition of the Company, 55 
 
 to file annual statements of standing, business and affairs of the Company, 60, 61 
 GOVERNOR, with advice of Council, to appoint Insurance Commissioner, . 1 
 
 may remove the Commissioner, 1 
 
 and Council may allow compensation for service and expenses in en- 
 forcing laws relating to insurance companies, .... 73 
 
 GUARDIANS. [See Executors, &c.] 
 
 IMPAIRMENT op capital, when amounting to twenty-five per cent., capitals 
 of fire companies to be restored to original amount by assess- 
 ing the stock, 29, 63 
 
 if ssessment is not paid, shares may be cancelled, . g . . . 29 
 
 if not so repaired, within three months after notice from the Commissioner 
 to his satisfaction, he shall apply for an injunction against the 
 
 company, 29 
 
 fire insurance companies not incorporated in this State, to repair their 
 
 capitals as aforesaid, or not to be allowed to do business here, 63 
 INDIVIDUAL LIABILITY. [See Personal Liability.] 
 
 INJUNCTIONS, in what cases may be issued by Supreme Judicial Court 
 
 against insurance companies, their officers and agents, 17, 18, 19, 20, 
 
 21, 66 
 
 INQUESTS IN CASES of fire. [See Fire Inquests.] 
 
 INSOLVENT insurance companies, proceedings against, . . . . 18, 19 
 
 when mutual fire companies are in danger of becoming, the directors may 
 
 lay assessments, 35 
 
 INSURANCE, limited partnerships not to be formed for, .... 11 
 
 conditions of, to be stated in body of policy, before signatures, ... 72 
 
 contracts of, to be valid though compau}’- has not complied with laws, . 60 
 
 policies or contracts of, to be headed 'Cvith corporate name or title of the 
 
 company only, 72 
 
 INSURANCE BROKERS, what constitutes, 56 
 
 not to act without certificate of authority from Insurance Commissioner, . 56 . 
 
 limit of authority to act, 57 
 
 penalty for acting without authority, 57 
 
INDEX. 
 
 
 this State, 
 
 to exhibit 
 
 INSURANCE COMMISSIONER, appointment and term of ofifice of, 
 salary, and compensation for actuarial services of, 
 
 to give bond, 
 
 may appoint a clerk, 
 
 to make an annual valuation of all policies of life insurance, 
 may employ actuarial and clerical assistance in making, 
 to visit and examine any insurance company incorporated in 
 
 upon request, &c., 
 
 to have free access to its books and papers, &c., . 
 may require agents of companies not incorporated in this State, 
 their books and answer interrogatories, 
 penalty for refusal or neglect to answer, 
 may summon and examine directors, officers and agents of any 
 company and other persons, 
 penalty for refusing to appear and testify, . 
 directors to furnish sworn statement of affairs of company to, when re- 
 quired, 
 
 to report violations of law by companies, their officers or agents, through 
 Secretary of Commonwealth to the Attorney-General, 
 to apply to the Supreme Judicial Court for injunction against insolvent 
 
 and unsound companies, 
 
 and against joint-stock fire companies which do not repair their capi- 
 tals when reduced, &c., 
 
 may apply for, if -a company exceeds its powers, or fails to comply with 
 
 requirements of law, 
 
 may apply to the Court to wind up a company which has ceased to do 
 
 business for one year, 
 
 and to examine assessments made by mutual fire companies, or to 
 
 order such to be made, 
 
 and to prohib^jt, or stay the further collection of assessments, 
 to examine accounts rendered by receivers of insurance companie'' t 
 
 port thereon to the Court, 
 
 to certify to the Court when further efforts of, to collect an assessment 
 
 will not avail creditors, 
 
 to notify life insurance companies and their agents, to cease issuing poli- 
 cies while premium reserve is impaired, 
 
 to examine the capital of joint-stock companies, and grant certificate of 
 
 authority before policies issue, 
 
 to approve subscriptions to safety fund of mutual marine and fire-marine 
 
 companies, 
 
 to be satisfied that companies of other States and foreign countries have 
 requisite funds, &c., before admission to do business in this 
 
 State, 
 
 to grant certificates of authority to the officers, agents and sub-agents of 
 such companies, and revoke or renew the same, 
 to furnish blank forms for returns, to insurance companies and agents, 
 may amend and revise the forms of annual statement prescribed, and pro- 
 pose additional inquiries, 
 
 may extend the time prescribed for filing such statements, for cause shown, 
 
 but within certain limits, 
 
 may withhold the annual statements of life insurance companies until his 
 annual report is published, 
 
 Page. 
 
 1 
 
 1 
 
 4 
 
 1 
 
 3 
 
 1 
 
 2 
 
 2 
 
 2 
 
 2 
 
 18 
 
 29 
 
 19 
 
 19 
 
 21 
 
 71 
 
 26 
 
 44 
 
 54 
 
 57, 58 
 3 
 
 71 
 
 71 
 
 71 
 
245 
 
 INDEX. 
 
 87 
 
 Page. 
 
 INSUEANCE COMMISSIONER— Continued. 
 
 to collect and pay into the treasury fees for copies, &c., .... 66 
 
 to keep a record of his proceedings, . 3 
 
 to make an annual Report to the Legislature. [See Annual Report.] 
 powers and duties of, regarding Loan and Fund Associations, ... 4 
 
 obstructing the Commissioner in discharge of his duty, penalty for, . 2 
 
 INSURANCE COMPANIES, violations of law by, to be reported by Com- 
 missioner and prosecuted by Attorney-General, ... 3 
 
 to conduct business in proper and corporate name only, .... 72 
 
 not to deal or trade in goods, merchandise, &c., except insured property 
 
 on which losses are claimed, 72 
 
 Governor and Council may allow compensation for services and expenses 
 
 in enforcing laws relating to, 73 
 
 to make and file annual statements of their standing, condition and 
 affairs. [See Annual Statements.] 
 to pay certain taxes and fees. [See Taxes and Fees.] 
 prevention of frauds on. [See Frauds on Insurers.] 
 
 Incorporated in this State, general provisions concerning, . . 5-22 
 
 powers, duties and liabilities of, 6 
 
 to give notice of their acceptance of charter and organization, within one 
 
 year, 6 
 
 first meeting of, how called and notified, 6 
 
 call for all meetings of, to specify proposed business, 7 
 
 meetings of, how called in case of death or disability of officers, . . 7 
 
 what business may be transacted at such meetings, .... 7 
 
 maj’’ sue and be sued, prosecute and defend, &c., 7 
 
 may have a common seal, and alter the same, 7 
 
 may elect officers, fix their compensation, define their duties, &c., . . 7 
 
 may adopt by-laws, not repugnant to their charters or laws of the State. 
 
 [See By-Laws,] 7, 8 
 
 •' If’ * ' md treasurer of, to give bond, 8 
 
 ' <-e of, to furnish sworn statement of their affairs to Legislature or 
 
 Insurance Commissioner, when required, 8 
 
 funds of, how to be invested. [See Investments.] 
 
 mortgages held by may be attached and sold on execution, . . 9 
 
 Treasurer of the Commonwealth may hold securities of, to enable them to 
 
 comply with laws of other States, 9 
 
 may convey lands to which they have a legal title, 9 
 
 to have their office in the city or town specified in their charters, . . 9 
 
 cards, advertisements, &c., of, to specify the location of, as fixed by their 
 
 charters, 9, 10 
 
 not to issue policies extending beyond the term of their original or re- 
 newed charter, under penalty, &c., 10 
 
 personal liability of officers, stockholders and members of, may be enforced 
 
 in equity, 10 
 
 to publish a list of unclaimed dividends and balances, .... 10 
 
 to be liable to be taxed by any general law taxing insurance companies, . 11 
 
 to be visited and examined by the Commissioner, on request, &c., . . 2 
 
 when insolvent, or proceeding in fraud of law, injunction may be issued 
 
 against, and receivers appointed, 18 
 
 when and how may be dissolved, and charters become extinct, . . 19-21 
 
 to continue bodies corporate in such cases, for certain purposes, . . 20 
 
 12 
 
INDEX. 
 
 INSURANCE COMPANIES— 
 
 Page. 
 
 Of Foreign Countries, laws relating to, to include all companies, asso- 
 ciations and individuals engaged in insurance, whether incor- 
 porated or not, 64 
 
 Of other States, to be subject to the same taxes, penalties, obligations, 
 prohibitions, &c., as are imposed on companies of this State, 
 by the laws of their own States respectively, .... 62, 63 
 Of other States and Foreign Countries, provisions concerning, . 53-64 
 conditions of admission of, to do business in this State, .... 53, 54 
 joint-stock companies, to have a capital of at least $100,000, paid in cash 
 
 and invested, exclusive, &c., 53 
 
 Of other States, to be restricted from taking single risks exceeding 
 
 one-tenth part of unimpaired capital, 53 
 
 Of Foreign Countries, to ten per cent, of value of securities deposited, 
 
 See., 53 
 
 nor to re-insure in companies not authorized to do business in the State, . 54 
 
 to comply with all the laws of this State, 53, 54 
 
 mutual companies, to have $100,000 in cash or cash funds securely in- 
 vested, and $100,000 in deposit notes, 54 
 
 whether stock or mutual, to satisfy the Insurance Commissioner that they 
 have the requisite funds, and have complied with all require- 
 ments of law, 54 
 
 to appoint a General Agent and Attorney to accept service of process, . 55, 56 
 
 not to recover premiums or assessments without such appointment, . 56 
 
 officers, agents and sub-agents of, to procure certificates of authority to 
 
 act, from the Insurance Commissioner, 58 
 
 to specify in policies, cards, advertisements, &c., the location and kind of 
 
 company, 59 
 
 contracts of insurance by, to be valid, though company does not comply 
 
 with the requirements of law, 60 
 
 to be liable to be sued, and property attached, 64 
 
 fire insurance companies, capitals of, when impaired twentj'-five percent., 
 to be repaired by assessing the stock, or company not to do 
 
 business, 63 
 
 INSURERS. [See Frauds,] 
 
 INVESTIGATION into the origin of fires. [See Fire Inquests.] 
 INVESTMENTS, to be made in the corporate name of the company, . . 9 
 
 of companies classifying their risks, to be made separately, ... 9 
 
 investing officers of mutual companies, not to borrow funds, or to be sure- 
 ty for loans to others, 9 
 
 of the capital of joint-stock companies, how to be made, . . . . 26, 27 
 
 of stock and mutual (combined) companies, 41 
 
 of life insurance companies, 48 
 
 of the safety-fund and profits of mutual marine and fire-marine companies, 45 
 
 originally legally made, need not be changed, 27 
 
 directors personally liable for loss by unauthorized investment or loan, . 27 
 
 mortgages may be attached and sold on execution by creditors, . . 9 
 
 INVOICE, false. \See Frauds.] 
 
 JOINT-STOCK INSURANCE COMPANIES incorporated in this 
 
 State, provisions concerning, 23-29 
 
 Directors, choice and term of office of, 23 
 
247 
 
 INDEX. 89 
 
 Page. 
 
 JOINT-STOCK INSURANCE COMPANIES, Directors— 
 
 to accept in writing, 23 
 
 quorum and meetings of, 23 
 
 to choose president, secretary, &c., and may fill vacancies, . . 23 
 
 personally liable for loss arising from unauthorized investments, . 27 
 
 for loss on risk exceeding one-tenth of existing capital, ... 28 
 
 for loss on policies issued while losses are equal to capital, . . 28 
 
 may, and in certain cases shall, call special meetings of the stock- 
 holders, 25 
 
 at annual meeting to furnish statement of condition of company to, . 25 
 
 how much to charge the company therein as reserve for re-insurance, 26 
 not to divide to the stockholders premiums received on risks not ter- 
 minated, 26 
 
 President, to be chosen by and from directors, and sworn, ... 23 
 
 to preside at all meetings, and in his absence a president pro tempore 
 
 to be chosen, 23 
 
 to sign policies, 28 
 
 Vice-Presdent, election and duties of, 8 
 
 to be sworn, may sign policies, &c., 8, 28 
 
 Secretary, to be chosen by directors, and sworn, . . . . . 23 
 
 to keep record of votes, transfers, policies, assignments, &c., . . 24 
 
 to be a resident within the State, and, by removal, to vacate his office, 24 
 to exhibit list of stockholders, and record of transfers of stock, in cer- 
 tain cases, under penalty, &c., 24, 25 
 
 to sign policies, 28 
 
 vacancies in any office, how filled, 23 
 
 Stockholders, special meetings of, when to be called, .... 25 
 
 liable for unpaid instalments of shares when capital is reduced by 
 
 losses, 28 
 
 name and residence to be registered, &c. 24 
 
 ates and dividends not to be issued or paid to while residence 
 
 •s unknown, 24 
 
 , ... be open to inspection, under penalty, &c., .... 24 
 
 Capital Stock, when and how to be paid in, 26 
 
 Commissioner to examine capital, '26 
 
 directors to make oath to payment of, &c., 26 
 
 how to be invested. [See Investments.] 
 
 when to be repaired by stockholders. [See Impairment of Capital.] 
 
 Shares, par value of, to be one hundred dollars each, .... 23 
 
 certificates of, when and how to be issued, 26 
 
 each entitled to one vote, 23 
 
 executors, &c., to represent shares and vote but not personally lia- 
 ble, &c., 24, 25 
 
 record of transfers of, to be kept in this State, and exhibited in cer- 
 tain cases, 24, 25 
 
 in transfer of as collateral, debt to be described, &c., .... 25 
 
 tax on corporate shares or franchise, provisions concerning, . . 13-17 
 
 Votes, no stockholder, in person or as proxy, to cast more than thirty, . 23 
 
 record of by secretary, to be evidence of elections, . . . . 24 
 
 Proxies may be authorized in writing, but officers not to vote as, . . 23 
 
 Policies, not to issue until capital is paid in and certificate of Commis- 
 sioner obtained , 26 
 
 how to be signed. {See Policies,] 28 
 
INDEX. 
 
 Page. 
 
 JOINT-STOCK INSURANCE COMPANIES -Con^mMerf. 
 
 Risks, -what may be insured by such companies, 28 
 
 not to exceed one-tenth part of unimpaired capital, .... 28 
 
 none to be taken when losses are equal to capital, .... 28 
 
 JOINT-STOCK INSURANCE COMPANIES of other States and For- 
 eign Countries, conditions of admission of, to do business in 
 this State, 53, 54 
 
 LEGISLATURE. [See Acts of Incorporation and Charters.] 
 
 Insurance Commissioner to make annual reports to, . . . *3, 4, 21 
 
 directors to make sworn statements to, or to a committee of, . . . 8 
 
 LIABILITIES, terra to include a sura sufficient to re-insure all outstanding 
 
 risks, 26, 29, 33, 35 
 
 what to include, and how ascertained, in life insurance companies, . . 71, 72 
 
 [See Personal Liability.] 
 
 LIEN, mutual fire insurance companies to have, in certain cases, ... 32 
 
 how enforced, 32 
 
 now abolished (note), 32 
 
 LIFE INSURANCE COMPANIES, mutual, to have a guarantee capital of 
 
 $100,000, 48 
 
 how to be paid in and invested, 9? 26, 27, 48 
 
 investing officers not to borrow or be surety for loans, ... 9 
 
 when and how to be redeemed, 49 
 
 annual meetings, how notified, 48 
 
 Directors, first and subsequent boards of, how chosen, .... 48 
 
 Stockholders entitled to dividends not exceeding eight per cent, per 
 
 annum, 48 
 
 Surplus funds may be divided among the assured annually, or once in 
 
 two, three, four or five years, 49, 50 
 
 on what basis distribution of may be made, 49, 50 
 
 may be distributed on the basis of contribution to surplus, . . 49 
 
 policies becoming payable before such distribution, to «hare in the 
 
 same equitably, 50 
 
 amount ot premium reserve required in ascertaining divisible surplus, 49 
 
 Valuation of policies of, to be made annually by the Commissioner, . 3 
 
 to pay as compensation for such valuation, one cent on each $1,000 
 
 insured on lives, 66 
 
 Married Woman, policy effected for benefit of, to inure to her sole use 
 
 and benefit, &c., 50 
 
 trustee may be appointed to hold her interest in such policy, . . 50 
 
 policy assigned or transferred for benefit of, to inure in like manner, . 50 
 
 policy effected by one person for benefit of another, to inure to latter, as 
 
 against creditors, &c., 50, 51 
 
 if premium is paid with intent to defraud creditors, an equal amount to 
 
 inure to their benefit, 51 
 
 policies issued on or after May 10, 1861, not to become void by non-pay- 
 ment of premium, but to continue in force for a certain period, 51 
 
 term of extended policjq how ascertained, 51 
 
 policy to be paid, if death occur within such period, if, &c., . . 51 
 
 notice and proof of death to be made within ninety da 3 's, ... 52 
 
 company may deduct amount of premiums forborne with interest, . 52 
 
 no corporation, association, etc., to insure or contract, &c., except in ac- 
 cordance with insurance laws of the State, .... 52 
 
INDEX. 
 
 Page. 
 
 LIFE INSURANCE COMPANIES— ConiiwMetf. 
 
 not to issue new policies while the premium reserve is impaired, according 
 
 to a prescribed standard of valuation, 71, 72 
 
 Commissioner to notify companj’^ and its agents in such cases, . . 72 
 
 officers and agents issuing new policies after such notice, how pun- 
 ished, 72 
 
 not to issue policies insuring fire or marine risks, 52 
 
 to be subject to the same obligations, &c., as the Mass. Hos. Life Ins. Co., 52 
 
 agents of, who to be deemed such, 65 
 
 annual statements of, may be withheld from publication until report of 
 
 Commissioner is published, 71 
 
 LIMITATION OF actions against companies, not to be for less than two 
 
 3 ^ears, 7, 8 
 
 Of eisks, in joint-stock companies, provisions concerning, ... 28 
 
 in mutual fire companies, 33, 34 
 
 in stock and mutual (combined) companies, 41, 42 
 
 in mutual marine and fire-marine companies, 45 
 
 in joint-stock companies of other States and foreign countries, . . 53, 54 
 
 LIMITED PARTNERSHIPS, not to be formed for business of insurance, . 11 
 
 LOAN AND FUND CORPORATIONS, powers and duties of Insurance 
 
 Commissioner in relation to, 3, 4 
 
 Commissioner to visit and examine upon request, &c., .... 4 
 
 to have free access to books and papers of, 4 
 
 to report condition of, to Legislature annually, 4 
 
 to report violations of law by, to the Attorney-General, .... 4 
 
 LOANS. [See Investments.] 
 
 MARINE INSURANCE COMPANIES. [See Joint-Stock, Mutual Fire- 
 Marine, and Mutual Marine Insurance Companies, 
 Taxes, &c.] 
 
 . ■ A'^OMAN, policies of life insurance in certain cases to inure to 
 
 her sole use and benefit, and that of her children, ... 50 
 
 iu^oDAt,.rLaSETTS HOSPITAL LIFE INSURANCE COMPANY to pay 
 
 tax to the Treasurer of the Commonwealth, .... 12 
 
 to make semi-annual returns to, 13 
 
 penalty for neglect to make return, or making false return, . . 13 
 
 tax, when and how to be paid by, 13 
 
 not paj'ing, liable to suit and injunction, 65, 66 
 
 other life insurance companies subject to certain obligations the same as, . 52 
 
 MEMBERS, who are of mutual companies, 30, 35, 44 
 
 how notified of annual meetings, 30, 48 
 
 not to be allowed more than five votes each in person, . . .30, 44 
 
 entitled to share in profits, 33, 46 
 
 liable to pay assessments, 33 
 
 personal liability of, for debts, &c., may be enforced in equity, . . 10 
 
 company may be dissolved on petition of, 19 
 
 MORTGAGES of Rp:al Estate held by companies, liable to attachment and 
 
 sale on execution, 9 
 
 investment of capital and funds may be made in, 26, 27 
 
 MUTUAL FIRE INSURANCE COMPANIES, provisions concerning, . 30-40 
 
 Directors, election and term of office of, 31 
 
 to choose president, secretary and treasurer, &c., .... 31 
 
 quorum, powers and duties of, 31 
 
INDEX. 
 
 MUTUAL FIRE INSURANCE COMPANIES— 
 
 President, to be chosen by and from directors, and sworn, 
 Vice-President, election, powers and duties of, . 
 
 Secretary and Treasurer, to be chosen by directors and sworn. 
 Secretary, to keep record of all meetings, votes, policies, &c., 
 
 vacancies in any office, how filled, 
 
 investing officers of, not to borrow funds, or be surety for loans to others, 
 
 Members, all persons insured to be, 
 
 to be notified of annual meetings, 
 
 other corporations becoming members, how represented, &c., 
 trustees may become members, &c., but not individually liable, 
 all entitled to share in profits, and liable to pay assessments, &c.. 
 
 Votes. AND Proxies, provisions regulating, 
 
 Special Meetings, when may and shall be called, .... 
 Policies not to issue until $250,000 has been [subscribed to be insured 
 
 &c., 
 
 may cover property situated where, 
 
 not to cover over three-fourths of value of property insured. [See 
 
 Policies,] 
 
 single risks not to be taken for excessive amount or with intention of 
 
 re-insuring, 
 
 policies not to be issued on other than mutual plan, unless the compa 
 ny is chartered as a stock and mutual company, 
 
 Lien, policies issued prior to April 30, 1862, to create, &c., 
 
 proceedings to enforce, 
 
 now abolished (note), 
 
 Classification of Risks, provisions concerning, .... 
 classes not to exceed four, and policies to specify the class, 
 policy not to issue in separate class until $500,000 is insured therein 
 assessments, expenses, dividends, &c., how made and apportioned, 
 
 invelstments of funds how made, 
 
 annual statements to specify respective amounts in each class, . 
 
 Assessments, provisions concerning, 
 
 when and how made by directors, 
 
 vote of directors, making, to be recorded, 
 
 statement of condition of company to be made, recorded and signed 
 to contain what, and when separate statements to be made, . 
 any person liable to assessment may inspect and copy statement, 
 assessment not to be collected until record and statement are made, 
 directors may, in certain cases, make two assessments, — one compulsory 
 the other optional, — provisions concerning, 
 unless latter is paid, policy to be cancelled, .... 
 supreme judicial court may, on petition, examine, ratify, amend or 
 annul such assessments, or order the same to be made, 
 who may make such application to the court, .... 
 
 directors to set forth claims, &c., 
 
 notice of application to be given, and proceedings on return thereof 
 auditor to be appointed, to notify and hear all parties, and report, 
 
 court may appoint a competent computer, 
 
 and make such order as equity requires, 
 
 if assessment is amended, directors to vote the same in legal form, 
 final decree to be entered by court, and to be conclusive on all parties 
 liable to the assessment, &c., 
 
 Page. 
 
 -31 
 
 8 
 
 31 
 
 31 
 
 31 
 
 9 
 
 30 
 30, 48 
 
 31 
 33 
 33 
 
 30 
 
 31 
 
 31 
 
 32 
 
 32 
 
 41 
 
 32 
 
 32 
 
 32 
 33, 34 
 
 33 
 
 34 
 
 34 
 . 35 
 9 
 
 69 
 34-40 
 34, 35 
 34 
 
 34 
 
 34, 35 
 
 35 
 35 
 
 35 
 
 35 
 
 35, 36 
 
 36 
 36 
 36 
 
 36 
 
 37 
 37 
 37 
 
 37 
 
INDEX. 
 
 Page. 
 
 .MUTUAL FIRE INSURANCE COMPANIES— Conimwet?. 
 
 an amended assessment to be as binding as original would have been, 37 
 
 court may control disposition of proceeds of assessment, ... 37 
 
 may decree that no assessment be collected, or stay further collec- 
 tion of, • . 37, 38 
 
 proceedings to be at cost of the company, unless, &c., ... 37 
 
 company to cease issuing policies, and close its concerns, unless both 
 assessments are paid on policies insuring at least $250,000, 
 
 &c., within two months, &c., 38 
 
 no assessment to be laid on any person whose policy has been cancelled 
 
 or expired for two years, 38 
 
 nor to be valid unless written notice is given thereof within said 
 
 period, 38 
 
 supreme judicial court may stay the further collection of any assessment, 21, 38 
 no officer or director to give a guaranty against assessment, under penal- 
 ty, &c., 39 
 
 directors neglecting to pay an execution against the company, or to assess 
 
 therefor,’ to be personally liable for its amount, ... 39 
 
 remedy of creditor in such cases against directors, . . . . 39, 40 
 
 of directors paying, for contribution, &c., 39, 40 
 
 treasurer neglecting to collect or apply assessment, to be personally liable, 40 
 {See Stock and Mutual (combined) Insurance Companies.] 
 
 MUTUAL FIRE-MARINE INSURANCE COMPANIES. {See Mutual- 
 Marine AND Mutual Fire-Marine Insurance Compa- 
 nies.] 
 
 MUTUAL INSURANCE COMPANIES of other States and Foreign 
 Countries, conditions of admission of, to do business in this 
 
 State, 53, 54 
 
 MUTUAL LIFE INSURANCE COMPANIES. [See Life Insurance Com- 
 panies.] 
 
 - VL MARINE INSURANCE COMPANIES, to make an annual div- 
 idend statement, showing net profits of business, ... 45 
 
 irectors may divide net profits at a uniform percentage on expired premi- 
 ums and subscriptions to safety fund, 45 
 
 may issue certificates or scrip representing such dividend, ... 46 
 
 scrip, how transferable, 46 
 
 need not be issued for sum less than ten dollars, 46 
 
 subject to future losses and expenses, and to be reduced, and certifi- 
 cates so to express, 46, 47 
 
 interest may be paid on at rate of six per cent, per annum, ... 46 
 
 when and how to be redeemed, 46 
 
 limit of accumulation before scrip becomes redeemable, .... 46 
 
 scrip may be withheld if person entitled owes the company for a debt past 
 
 due, 47 
 
 liability of policy-holders and scrip-holders defined, 47 
 
 MUTUAL MARINE, AND MUTUAL FIRE-MARINE INSURANCE COM- 
 PANIES, to be subject to certain provisions relating to mutual 
 
 fire insurance companies, 43 
 
 Directors, election, term of office, powers and duties of, . . 30, 31, 43 
 
 President, election and oath of office, 31, 43 
 
 Vice-President, election, powers and duties of, 8 
 
 Secretary and Treasurer, election, oath and duties of, . . . 31, 43 
 
252 
 
 94 
 
 INDEX. 
 
 Page. 
 
 MUT. MARINE AND MUT. FIRE-MARINE INSURANCE Continued. 
 
 members, votes, and proxes, provisions concerning, 30, 43 
 
 special meetings and vacancies in office, provisions concerning, . . 31, 43 
 
 before commencing business to have an agreement or subscription, form of, 43 
 
 policies not to be issued until, &c., 43 
 
 if in Boston, $200,000 to be subscribed and paid, (See., ... 43 
 
 elsewhere, $100,000 to be subscribed and paid, &c., .... 43 
 
 one-half the subscribed capital required by law to be paid in, in cash, 43 
 
 president and directors to certify solvency of subscribers, &c., ... 43 
 
 liability of, for false certificate, 44 
 
 copy of certificate to be filed with and approved by the Commissioner, 44 
 
 subsequent subscriptions to be made, certified and filed in like manner, . 44 
 
 subscriptions to constitute a permanent safety-fund, 44 
 
 how to be held and used, 44 
 
 subscription notes to be paid, or others substituted, 44 
 
 when may be cancelled, 44 
 
 cash payments of subscribers and surplus funds, how invested, . . 27, 44 
 
 investing officers not to borrow or be surety for loans, .... 9 
 
 risks not to exceed ten per cent, of net assets, 45 
 
 excess to be re-insured, 45 
 
 president and directors personally liable on policies issued when company 
 
 is insolvent, 45 
 
 directors to require of president a monthly statement, which shall be re- 
 corded, 45 
 
 [/See Mutual Maeink Insurance Companies.] 
 
 NON-FORFEITURE of policies of life insurance issued by companies incorpo- 
 rated in this State, provisions concerning, . . . . 50, 51 
 
 NOTES of stock-holders, not to be considered part of capital unless secured, 
 
 &c., 41, 53 
 
 subscription, in mutual marine and fire-marine companies, provisions con- 
 cerning, 43-47 
 
 OBLIGATIONS, reciprocal, imposed on companies of other States and their 
 
 agents, 62, 63 
 
 OFFICERS of insurance companies. Commissioner may summon and exam- 
 ine under oath, 2 
 
 penalty for refusal to appear and testify, 2 
 
 violations of law by, to be reported by Commissioner and prosecuted by 
 
 Attorney-General, 3 
 
 in case of death or disability of, meetings how called, and vacancies filled, 7 
 corapaniesmay elect necessary, define their duties, compensation, &c., . 7, 8 
 
 personal liabilities of, may be enforced in equity. [See Personal Lia- 
 bility,] 10 
 
 Of Companies not incorporated in this State, to procure certifi- 
 cates of authority in certain cases, 58 
 
 PARTNERSHIPS, limited, not to be formed for the purpose of insurance, . 11 
 
 PENALTIES, reciprocal imposed on companies of other States and their 
 
 agents, 62-63 
 
 may be annexed to by-laws of companies, 8 
 
 for frauds on insurers, 74, 75 
 
 PENALTY on agent, for refusing to answer interrogatories, ... 2 
 
253 
 
 ■fr 
 
 y •• 
 
 INDEX. 95 
 
 Page. 
 
 PEN ALTIES— 
 
 on officers and agents, for refusing to appear and testify, ... 2 
 
 for issuing policy extending beyond term of charter, or assenting 
 
 thereto, 10 
 
 for issuing life policies while premium reserve is impaired, . . 71 
 
 on officers, for giving guaranty against assessment, .... 39 
 
 on brokers and agents, for acting without giving bond, procuring 
 
 certificate, &c., 57-60 
 
 for not making returns to Treasurer of Commonwealth, ... 59 
 
 for making insurance in violation of any law, .... 65 
 
 on company, for neglect to make tax returns, or for false returns, . 13, 16 
 
 for neglect to make annual statement, or for false statement, . . 71 
 
 for obstructing Commissioner in discharge of his duty, .... 2 
 
 PERSONAL LIABILITY of officers, stockholders or members may be enforced 
 
 in equity, 10, 39 
 
 of president or directors, for unauthorized investment or loan, ... 27 
 
 for taking excessive risks, or making insurance while company is in- 
 solvent, 28, 45 
 
 for neglect to make assessment when unable to pay losses, &c., . 39 
 
 for neglect to satisfy execution, or make assessment therefor, . . 39 
 
 for false certificate of solvency, &c., 44 
 
 of treasurer, for neglect to collect or apply assessment, .... 40 
 
 of agent, on policies issued in violation of law, 60 
 
 for taxes not paid by company for which he acts, .... 60 
 
 POLICIES, not to restrict or designate the county in which the company shall 
 
 be sued, 8 
 
 not to limit right to sue the company to a less period than two years, . 8 
 
 to be signed by president or two directors, and secretary, ... 28 
 
 may be signed by vice-president, 8, 28 
 
 not to be issued extending beyond the term of original or renewed charter, 10 
 
 to be headed or entitled only by corporate name or title of company, . 72 
 
 conditions of insurance to be stated in body of policy, before signatures, . 72 
 
 application of the insured, and by-laws of company, not to form part of, 
 
 unless written in body of policy, 72 
 
 not to be issued for term exceeding seven years, except by life insurance 
 
 companies, 72 
 
 of companies not incorporated in this State, to specify the location and 
 
 kind of company, 59 
 
 binding on the company, though it has not complied with require- 
 ments of taw, 60 
 
 PREMIUM RESERVE of life insurance companies, when to be deemed im- 
 paired, 71,72 
 
 new policies not to be issued while, 71, 72 
 
 PRESIDENT. [See Penalties, and Personal Liability.] 
 
 PROCESS, SERVICE OF. [See General Agent and Attorney.] 
 
 PROHIBITIONS, reciprocal imposed on companies of other States and their 
 
 agents, 62, 63 
 
 PROTEST, false. [See Frauds on Insurers.] 
 
 PROXIES. [See Votes and Proxies.] 
 
 13 
 
254 
 
 96 
 
 INDEX. 
 
 Page. 
 
 RECEIVERS of insurance companies, may be appointed by S. J. Court when 
 
 a company is insolvent, or fails to comply with laws, , . 18 
 
 and when the company is dissolved, or its charter expires, or is an- . ,1 
 
 nulled, 19 ^ ^ 
 
 powers and duties of, 18, 19, 20, 21 ^ 
 
 to be subject to the direction of the Court, 18, 20, 21 } 
 
 to collect and pay debts and distribute surplus, 18, 20 
 
 accounts rendered by to Court, to be referred to Insurance Commissioner, 21 
 
 may be ordered to make a final report upon certificate of the Commissioner, 21 
 
 to report annually or oftener to the Commissioner, in such forms as he 
 
 prescribes, 21 
 
 compensation of, 21 
 
 RE-INSURANCE, when to be procured by mutual marine or fire-marine com- 
 panies, 
 
 not to be procured by foreign company, in companies not authorize 
 
 business in the State, 
 
 risks not to be taken by mutual fire companies, with intention of piocur- 
 
 ing, 32 
 
 amount to be charged company for, in annual statement of directors to j 
 
 stockholders, in joint-stock companies, 25, 26 ^ 
 
 amount of premium reserve required for in life insurance companies, . 71, 72 ^ 
 
 reserve for, to be considered a liability, . . . .26, 29, 33, 35, 41. 45 _ 
 
 RESPONDENTIA, money loaned on may be insured by joint-stock marine . 
 
 companies, 28 
 
 REVOCATION. {See Certificate of Authority.] 
 
 RISKS, what may be taken by joint-stock companies, 28, 54 
 
 [See Limitation of Risks.] 
 
 SALARIES and compensation of the Insurance Commissioner and clerks, . 1 
 
 SCRIP. {See Mutual Marine Insurance Companies.] 
 
 SEAL, corporate, insurance companies may have and change at pleasure 
 SECRETARY of the Commonwealth, Commissioner to report vioh 
 
 of insurance laws to, 
 
 to give notice thereof to the Attorney-General, 3 
 
 notice of acceptance of, and organization under charter, to be given 
 
 to within one year, 6 
 
 Of insurance companies, duties of in regard to sale on execution of 
 
 mortgages held by companies, 9 
 
 Secretary and Treasurer of, to give bond, 8 
 
 SECURITIES of insurance companies. Treasurer of the Commonweath may 
 hold, to enable them to comply with the laws of other States, . 
 companies may receiv'e income of, and exchange the same, 
 
 SERVICE OF PROCESS. [See General Agent and Attorney.] 
 SHARES. [See Joint-Stock Insurance Companies, and Taxes.] 
 
 SHIPS OR VESSELS. [See Frauds.] 
 
 STATEMENT. [See Annual Statements.] 
 
 directors of companies to make, in certain cases, to the Legislature or In- 
 surance Commissioner, 
 
 companies not incorporated in this State, to make, preliminary to admis- 
 
 sion, 55 
 
 fee for filing same, . 63 ; 
 
 • ! 
 
INDEX. 
 
 Pagk. 
 
 STOCK AND MUTUAL (combined) Insurance Companies, if in Boston, 
 
 to have a guarantee capital of $100,000, . . • • 41 
 
 in any other city or town, of $50,000, 41 
 
 capital how to be paid in and invested, 26, 27, 41 
 
 business and investments in stock and mutual departments to be kept 
 
 separate, 
 
 separate annual statements to be made for each department. 
 
 Directors to be chosen one-half from holders of guarantee stock, and one- 
 
 half from the mutual members, 42 
 
 Secretary to keep a record of stockholders, shares and transfers, . . 42 
 
 special meetings, when may and shall be called by directors, . . . 42 
 
 risks in stock department not to exceed one-tenth of existing capital, . 41 
 
 STOCK AND Stockholders. [See Joint-Stock Insurance Companies.] 
 STOCKHOLDERS’ notes and other obligations, not to be considered part of 
 
 capital, unless secured, &c., 41, 53 
 
 STOCKS, investments may be made in what, 27 
 
 SUB-AGENTS. [See Certificate of Authority.] 
 
 SUBSCRIPTION TO Safety Fund of mutual marine and fire- marine com- 
 panies, form of, &c., 43 
 
 SUPPLEMENTARY Annual Statement. [See Annual Statements.] 
 SUPREME JUDICIAL COURT, jurisdiction and powers of in relation to in- 
 surance companies, their officers and agents, in certain cases, . 10, 
 
 18, 19, 20, 21 
 
 in case of neglect to make returns or pay taxes, . . . .16, 17, 65 
 
 in regard to receivers, - 18, 20, 21 
 
 to assessments of mutual fire companies, 34-40 
 
 SURPLUS Funds of life insurance companies, when and how may be distrib- 
 uted among the assured, 49, 50 
 
 amount of divisible, how ascertained, . . . . . . ' . 49 
 
 of mutual marine and fire-marine companies, how invested, divided, &c., 45-47 
 
 TAX COMMISSIONER, Treasurer of Commonwealth to be ex officio , . . 13 
 
 powers and duties of in relation to taxes on insurance companies, . . 13-17 
 
 TAXES, Insurance Companies incorporated in this State liable to be 
 
 taxed by any general law taxing such companies, ... 11 
 
 Fire, Marine, and Fire-Marine companies to pay one per cent, per annum 
 
 on premiums and assessments, 11 
 
 premiums received in other States, and there subject to a like tax, not 
 
 to be taxed here, . . . . . . . - . . 11 
 
 tax on premiums and assessments defined, 11 
 
 to make semi-annual returns to Treasurer of Commonwealth, ... 12 
 
 form of returns defined, 12 
 
 penalty for neglecting to make return, or making false return, . . 13 
 
 ^ taxes when and how payable, 13 
 
 compan)’ not paying, liable to suit and injunction until taxes, costs 
 
 and interest are paid, . - 65 
 
 Joint-Stock companies to pay State tax on corporate shares or franchise, 
 
 provisions concerning, 13-17 
 
 to make annual returns to Tax Commissioner, 13 
 
 value of corporate franchise and real estate, how ascertained, ... 14 
 
 vf ’ iou of real estate by Tax Commissioner conclusive, unless, &c., 14 
 
INDEX. 
 
 Page. 
 
 TAXES — Continued. 
 
 amount of tax, how determined, 14 
 
 notice of amount of tax and right of appeal to he given each com- 
 pany, *.15 
 
 tax when payable, 15, 16 
 
 board of appeal established, proceedings before, 16 
 
 books and officers of company may be examined by Tax Commissioner, . 16 
 
 penalties for neglect to make return, submit to examination, or pay tax, . 16 
 
 remedies for collection of tax and penalties 16, 17 
 
 remedy of company for exaction of alleged illegal tax, .... 16 
 
 local taxes not to be assessed on corporate shares, except, &c., . . 17 
 
 company not to be exempt from other taxes, 17 
 
 Companies of other States, fire, marine, and fire-marine, to pay 
 two per cent, on premiums charged, received or colle 
 
 this State, &c., 
 
 no other tax to be assessed on, while such tax is imposed, 
 
 tax when and how to be assessed and paid, 62 
 
 not pajnng tax, liable to suit and injunction until tax, costs and interest 
 
 are paid, 65 
 
 reciprocal taxes, penalties, obligations, prohibitions, &c., imposed on, . 62, 63 
 Companies of Foreign Countries, fire, marine, and fire-marine, to 
 pay four per cent, on premiums charged, received or collected 
 
 in this State, &c., 62 
 
 no other tax to be assessed on, while such tax is imposed, ... 62 
 
 tax, when and how to be assessed and paid, 62 
 
 other companies of foreign countries to pay a tax of one per cent, on pre- 
 miums and assessments collected in this State, ... 63 
 
 [(See Insurance Brokers, Agents and Fees.] 
 
 TRANSFERS of Shares, provisions concerning, 24, 25, 42 
 
 Of Policies, provisions concerning, 24, ol, 50 
 
 TREASURER of the Commonavealth, to hold securities of insurane 
 panies, to enable them to comply with laws of other Sta 
 
 insurance companies to pay taxes to, 11, 12, , 
 
 to make returns to, 12, 13 
 
 to be ex officio Tax Commissioner, 13 
 
 poAvers and duties of, regarding tax on corporate franchise, . . 13-17 
 
 agents of companies not incorporated in this State, to give bond to, . 57, 58 
 
 to make returns and pay taxes to, 57, 58 
 
 neglecting, to be notified, and penalties recoA'ered, by, . . .59, 60 
 
 to sue for and recover certain taxes, or apply for injunction, . . .16, 66 
 
 TREASURER, Secretary and, of insurance company, to give bond, . . 8 
 
 of mutual fire company, when personally liable, 40 
 
 TRUSTEES, may become members, &c., of mutual fire companies, but not 
 
 indiAudually liable. {See Executors, &c.,] .... 33 
 
 VALUATION of life insurance policies. Insurance Commissioner to make 
 
 annually 3 
 
 compensation of Insurance Commissioner for making, .... 1 
 
 actuarial and clerical assistance employed in making, provision for, . . 1 
 
 annual report of Commissioner to include the results of, ... . 3 
 
 companies to pay as compensation for, one cent on each SI, 000 insured on 
 
 liA’cs, 66 
 
257 
 
 INDEX. 99 
 
 Page. 
 
 VALU ATION — Continued. 
 
 for certificate of valuation, fee chargeable, 66 
 
 assumptions to be adopted in making, certain cases, . . .49, 51, 71 
 
 VENUE OF Actions against companies, not to be restricted or designated 
 
 in by-laws or policies, 7 
 
 VICE-PRESIDENT, companies may provide for election of in by-laws, . 8 
 
 to be sworn, 8 
 
 may sign policies, checks, &c., with same effect as president or two direc- 
 tors, 8, 28 
 
 to perform such other duties as are prescribed by by-laws or directors, . 8 
 
 VOTES AND Proxies, provisions concerning, 8, 23, 24, 30, 43 
 
 WARRANTY, application of insured or by-laws of company not to be consid- 
 ered as, unless incorporated in body of policy before signatures, 72 
 
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