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CHAPTER IV.

MARINE INSURANCE COMPANIES.

1849, Ch. 308-The general act.

SEC. 1. Formation of companies; to make marine insurance. 2. Power to reinsure in certain cases.

PAGE.

97

3. Corporators to file declaration in office of superintendent.
4. Books of subscription to stock, when to be opened.
5. Provision relative to capital stock or premium notes.
6. (Repealed, it relating entirely to life insurance.)
7. Provisions respecting companies incorporated by other States;
certificates of authority to be procured; provisions respecting
companies formed by foreign governments; statements and
evidences of investments to be renewed annually; renewal
certificates; penalty; meaning of term " agent."

8. Capital or funds, how invested, surplus, how invested.
9. Real estate not to be held except for certain purposes.
10. Mode of exercising corporate powers to be declared in charter;
mutual companies may issue policies in certain cases.
II. Charter to be examined by attorney-general; examination by
superintendent or commissioners.

12. By-laws may be made.

13. Annual statement to be made and published; contents of same; form thereof may be changed; information contained therein to be reported to legislature; in case of deficiency companies. to be wound up unless deficiency is paid in; calls when to be made on stockholders; when directors individually liable; when deficiency in mutual companies; transfer of stock not to release from liability.

14. Provisions respecting existing joint-stock and mutual companies; may extend their charters.

15. Duration of charters.

16. Suits at law, how maintained.

17. Companies to be subject to Revised Statutes.

18. Restriction as to trade.

19. Corporators, when liable.

20. Dividend, when not to be made.

21. Marine companies may unite cash capital in certain cases; capital how invested; subscribers liable; capital liable; trustees to make regulations.

22. Mutual marine companies doing business in New York city may increase capital; when written consent to be filed in superintendent's office.

23. Superintendent to examine affairs of marine companies; when
deficiency exists business of company may be closed up;
calls may be made on stockholders to repair capital stock;
when directors individually liable; same proceedings in mu-
tual as in joint-stock companies; transfer of stock not to re-
lease from liability.

1852, Ch. 123 — Agencies beyond the United States.....
SEC. 1. Agencies may be established beyond the United States.
2. Agencies in Asia or Europe.

1857, Ch. 28 — Marine mutual insurance companies.....

........

112

112

SEC. 1. Marine insurance companies authorized to create a cash capi-
tal; shares, how transferable.

2. Profits, how to be divided; company to exclude certain risks;
surplus or reserve fund.

3. Certificates convertible into stock.

4. Holders of cash capital entitled to one vote for each share of
stock.

5. Funds or profits not to be applied to redeem certificates
amount of aggregate capital and profits.

6. Subscribers individually liable.

7. Act, how to be construed.

1867, Ch. 442-Extension of charters..

SEC. I. Construes § 18, L. 1849, ch. 308.

114

2. Charters of mutual or stock companies may be extended; pro-
ceedings thereon; companies to be subject to supervision of
superintendent.

CHAP. IV

1873, Ch. 614-Extra dividends for Geneva award....

115

SEC. I. Sums received from Geneva award, how to be divided.

1880, Ch. 222 — Proceedings to amend charter.......

116

SEC. 1. May amend charter; proceedings; certificate of approval; cer-
tified copy of amended charter to be delivered to company.

1881, Ch. 471 — Charges of marine companies upon State canals. 116 SEC. 1. Amount to be allowed or collected for agents limited to fifteen per centum of premium.

2. Verified return to show compliance with this act.

3. Proceedings by attorney-general against companies violating
this act.

L. 1849, Chap. 308– An Act to provide for the incorporation of insurance companies.*

PASSED April 10, 1849.

of com

SECTION 1. Any number of persons, not less than thirteen in Formation number, may associate and form an incorporated company for the panies. following purposes, to wit:

* This act provided for the incorporation of marine insurance companies; of fire and inland navigation and transportation insurance companies, and of life, health and annuity insurance companies. The entire act was repealed as to life insurance companies by Laws of 1853, chap. 463, § 22 (ante, p. 70), and impliedly repealed as to health insurance companies by the same act. It was also repealed as to fire and inland navigation insurance companies by Laws of 1853 chap. 466, § 28 (ante, p. 34), as amended by Laws of 1853, chap. 528, § 1, so that it remains in force only as to marine insurance companies.

CHAP. IV.

To make marine

insurance.

Power to
re-insure in

certain

cases.

Corporators to file

in the office

erintend

ent.

To make insurance upon vessels, freights, goods, wares, merchandise, specie, bullion, jewels, profits, commissions, bank-notes, bills of exchange, and other evidences of debt, bottomry and respondentia interests, and to make all and every insurance appertaining to or connected with marine risks and risks of transportation and navigation. [As modified by Laws of 1853, chap. 463, § 22; by Laws of 1853, chap. 466, § 28, and by Laws of 1853, chap. 528, § 1.]

Thomas v. Achilles, 16 Barb. 491; Jones v. Dana, 24 id. 395; Hart v. Achilles, 28 id. 576; White v. Coventry, 29 id. 305; Thomas v. Whallen, 31 id. 176; Elwell v. Crocker, 4 Bosw. 22; Western v. Genesee Mutual Ins. Co., 12 N. Y. 258; White v. Haight, 16 id. 310; Savage v. Medbury, 19 id. 33; Howland v. Edmonds, 24 id. 307; Sands v. Boutwell, 26 id. 233; Sands v. Lilienthal, 46 id. 341.

§ 2. Any company organized under this act shall have power to make re-insurance of any risks taken by them, respectively, and may make insurance upon any or all of the risks mentioned in the first section. [As modified by Laws of 1853, chap. 463, § 22; by Laws of 1853, chap. 466, § 28, and by Laws of 1853, chap. 528, § 1.] Berry v. Yates, 24 Barb. 199.

§ 3. Such persons shall file, in the office of the superintendent declaration of the insurance department, a declaration, signed by all the corof the sup- porators, expressing their intention to form a company for the purpose of transacting the business of insurance as expressed in the first section of this act, which declaration shall also comprise a copy of the charter proposed to be adopted by them, and shall publish a notice of such their intention, once in each week for at least six weeks, in a public newspaper in the county in which such insurance company is proposed to be located. [As modified by Laws of 1853, chap. 463, § 22; by Laws of 1853, chap. 466, § 28; by Laws of 1853, chap. 528, § 1, and by Laws of 1859, chap. 366.] Thomas v. Achilles, 16 Barb. 491; Dana v. Munro, 38 id. 528; Mygatt v. New York Protection Ins. Co., 21 N. Y. 52.

Books of

tion to

to be

opened.

§ 4. It may and shall be lawful for the individuals associated for subscrip- the purpose of organizing any company under this act, after having stock, when published the notice and filed their declaration and charter as required by the preceding section, to open books for subscription to the capital stock of the company so intended to be organized, and to keep the same open until the full amount specified in the charter is subscribed; or, in case the business of such company is proposed to be conducted on the plan of mutual insurance, then to

open books to receive propositions, and enter into agreements in
the manner and to the extent hereinafter specified.
Thomas v. Achilles, 16 Barb. 491; Dana v. Munro, 38 id. 528.

CHAP. IV.

relative to

stock or

notes.

§ 5. No joint-stock company, organized for the purposes men- Provision tioned in this act, shall be organized in the city and county of New capital York, nor in the county of Kings, with a smaller capital than one premium hundred and fifty thousand dollars; nor in any other county in this State with a smaller capital than fifty thousand dollars; nor shall any company, formed for the purpose of doing the business of marine insurance, on the plan of mutual insurance, commence business, if located in the city of New York, or in the county of Kings, until agreements have been entered into for insurance with at least one hundred applicants, the premiums on which shall amount to three hundred thousand dollars, and notes have been received in advance for the premiums on such risks payable at the end of or within twelve months from the date thereof, which notes shall be considered a part of the capital stock, and shall be deemed valid, and shall be negotiable and collectible for the purpose of paying any losses which may accrue or otherwise; nor shall any mutual marine insurance company, in any other county in the State, commence business until agreements have been entered into for insurance, the premiums on which shall amount to one hundred thousand dollars, and the notes received therefor, payable as aforesaid, and which notes shall be liable for and used as aforesaid. [As modified by Laws of 1853, chap. 463, § 22; by Laws of 1853, chap. 466, § 28, and by Laws of 1853, chap. 528, § 1.]

Thomas v. Achilles, 16 Barb. 491; Devendorf v. Beardsley, 23 id. 656; Williams v. Babcock, 25 id. 109; Hart v. Achilles, 28 id. 576; Howland v. Edmonds, 33 id. 433; Bell v. Shipley, id. 611; Otis v. Harrison, 36 id. 210; Sands v. St. John, id. 636; Hyatt v. Esmond, 37 id. 601; People v. Rensselaer Ins. Co., 38 id. 329; Dana v. Monroe, id. 530; Toll v. Whitney, 18 How. 161; White v. Haight, 16 N. Y. 310; Howland v. Edmonds, 24 id. 307; Sands v. Campbell, 31 id. 345; Tuckerman v. Brown, 33 id. 297; Chase v. Lord, 77 id. 1; S. C., 6 Abb. N. C. 258.

(See Laws of 1877, chap. 209, as amended by Laws of 1878, chap. 337, post, p. 180, further modifying this section by prohibiting the organization of any stock companies with a smaller capital than $200,000 paid in.)

§ 6. [This section in the original act (chap. 308, Laws of 1849), relating entirely to life insurance, was repealed by Laws of 1853, chap. 463, 22, ante, p. 70.]

respecting

§ 7. It shall not be lawful for any company organized under this Provisions act to transact business unless possessed of capital or securities companies as herein before mentioned; nor shall it be lawful for any agent

incorpo

200

CHAP. IV.

other States.

Certificates of authority

cured from

superintendent.

Statement, what to contain.

rated by or agents of insurance companies incorporated by other States, directly or indirectly, to take risks or transact any business of insurance in this State, without procuring a certificate of authority from to be pro- the superintendent of the insurance department of this State, and such agent or agents having procured a statement under the oath of the president or secretary of the company for which he or they may act; which statement shall show the amount of the capital of such company, the manner in which the same is invested, and shall also state the fact whether its capital is impaired, and, if so, how To be filed much; such statement shall be filed in the office of the county clerk of the county where such agent resides, and shall be published in at least one newspaper, if a newspaper be therein published, at least six successive weeks after the filing of such statement as aforesaid; the first statement shall be filed in the month of January next, and such statement shall be procured annually and filed and published in each and every succeeding month of January thereafter as long as such agency continues, and no company incorporated by other States shall transact business in this State unless possessed of the amount of actual capital required of companies formed under the provisions of this act. Nor shall it respecting be lawful for any agent or agents, hereafter to be appointed, of formed by any company incorporated by any foreign government, other than foreign governments.

in county
clerk's
office where
agent re-
sides, and
to be
published.

To be procured, filed

and published an

nually.

Provisions

companies

the States of this Union, for the purpose of insurance, to transact the business of insurance in this State without procuring a certificate of authority from the superintendent of the insurance department; such agent or agents having previously furnished evidence, to the satisfaction of the superintendent of the insurance department of the State, that such company has invested in the stocks of this State, or of the United States, an amount equal to the amount of capital or security required by this act, and such stocks are held in trust by citizens of this State for the benefit and security of such as may effect insurance with him し or them. And the agent or agents, furnishing satisfactory evidence as aforesaid, shall be entitled to a certificate thereof from the superintendent of the insurance department aforesaid. The statements and evidences of investments required by this section shall be renewed from year to year, in the month of January in each year, and the superintendent of the insurance department, on being satisfied that the capital, securities and investments recertificates main secure as at first, shall furnish a renewal of certificates as aforesaid; and the agent or agents obtaining such certificates shall file the same, together with a copy of the statements on

Statements and evi

dences of invest

ments to be renewed annually. Renewal

to be

furnished.

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