la HG 8521 N75 B3 GENERAL STATUTE LAWS STATE OF NEW YORK KELATI.Va TO LIFE INSURANCE COMPANIES. COMPILED BY WILLIAM BARNES, SUPERINTENDENT OF THE INSURANCE DEPARTMENT. ALBANY : WEED, PARSONS AND COMPANY, PRINTERS. 1861. /JJENERAL STATUTE LAWS STATE OF NEW YORK EELATINO TO LIFE INSURANCE COMPANIES. COMPILED BY WILLIAM BARNES, SUPERINTENDENT OF THE INSURANCE DEPARTMENT. ALBANY: WEED, PARSONS AND COMPANY, PRINTERS. 1861. 0^A CONTENTS Page to Pago. I. Extract from the CONSTITUTION, 5- 5 II. An Act for the Incorporation of Life and Health Insurance Companies, and in relation to Agencies of sucli Comi)anies ; passed June 24th, 1853, (with amendments and additions to January 1st, 1862), 7-24 III. An Act in relation to all Companies transacting the business of Life In- surance within this State ; passed April 8th, 1S51, 25-29 IV. An Act in respect to Insurances for Lives for the benefit of Married Women ; passed April 1st, 1840, (with amendments to January 1st, 1862,) 30-30 V. An Act to amend the General Law relative to the Incorporation of Insur- ance Companies ; passed June 29, 1853 31-31 VI. An Act to declare the intention and make more certain an Act entitled, " An Act to amend the General Law relative to the Incorporation of Insurance Companies; passed June twenty-ninth, eighteen hun- dred and fifty- three ;" passed March 24, 1855, 31-31 Index 33-42 EXTRACT FROM THE CONSTITUTION OF THK STATE OF NEW YORK, Adopted November 3d, A. X)., 1846. ARTICLE VIII. Section 1. Corporations may be formed under General corpora. tiolip, how laws ; but shall not be created by Special act, except for "''''*'"^- Municipal purposes, and in cases where, in tiie judgment of the Legislature, the objects of the corporation cannot be attained under General laws. All general laws and special acts, passed pursuant to this section, may be altered from time to time, or repealed. Section 2. Dues from Corporations shall be secured by ceMsot corpora- such Individual Liability of the corporators, and otlier '■""*• means as may be prescribed by law. Section 3. The term Corporations, as used in this Arti- " corpora- tioii§" de- cle, shall be construed to include all Associations and ^''^^' Joint-Stock comjjanies having any of the powers or privi- leges of Corporations not possessed by individuals or part- nerships. And all Corporations shall have the right to sue and shall be subject to be sued in all courts in like cases as natural persons. LAWS KELATINf! TO LIFE INSURANCE COMPANIES. Chap. 463. AN ACT FOE THE Incorpoeation of Life and Health Insueance Companies, and in eelation TO Agencies of such Companies ; passed June 24th, 1853, (with amendments and additions to January 1st, 1862.) Section 1. Companies may be formed ; their purposes. 2. When organized under one Department, not to take Risks in the other Department. 3. Declaration and Charter to be filed in the Office of the Superintendent of the Insurance Department ; contents thereof. 4. Declaration and Charter to be examined by the Attorney- General, and, if correct, certified and delivered back to the Superintendent of the Insurance Department, and recorded. 5. When Corporators have received certified copy from the Superintendent, may publish notice of intention to form Company, open books of subscription to capital stock, &c. 6. Amount of capital stock required to organize Companies ; how paid in ; deposit of securities with the Superin- tendent as security for Policy holders. 7. Superintendent of the Insurance Department to furnish Corporation with Certificate of deposite of securities, and a certified copy of Charter, &c., to be filed in County Clerk's oflice; when company is authorized to commence business. . . . . . " g LIFE INSURANCE LAWS 8. Companies may invest funds in bonds and Mortgages or in certain Stocks. 9. Companies not permitted to purchase, hold or convey Real Estate, except for certain specified purposes. 10. Corporators empowered to adopt a Corporate Seal, make By-Law.s ; suits may be maintained by stockholders against Corporation, and vice versa. 11. Companies organized under this act to become bodies corporate and politic. 12. Officers of Corporation required to furnish the Superin- tendent of the Insurance Dex)artment with an Annual Statement of the Company's afiairs ; contents thereof; Superintendent to furnish forms. 13. Annual Report of the Superintendent to the Legislature. 14. Agents of Life Insurance Companies of other States not to act, unless certain conditions are complied with ; Certificates of Authority to be granted by the Superin- tendent in certain cases, &c. 15. Agents of foreign Life Insurance Companies not to act, unless a deposit is made in the Insurance Department and certain other conditions complied with; Certificates of Authority to be granted by the Superintendent in certain cases, &c. 16. Fees of County Clerk. 17. Superintendent of the Insurance Department to cause an Kxamination to he made into Company's aflairs in cer- tain cases ; iiroceedings thereon ; duties of Superinten- dent and Attorney-General. 18. Penalty for violating provisions of this Act 19. Proceedings, when Companies desire to relinquish busi- ness. 20. Charters to continue until repealed. 21. Existing Companies may avail themselves of the provi- sions of this Act. 22. Repeal of Act of April 10th, 1849, and of April 8th, 18.51, so far as said Acts relate to Life Insurance ; exception. The People of ihe Slate of New York, represented in Senate and AssemUij, do enact as follows : — Compnny S !• Anj' number of persons, not less tlian thirteen in treated. number, may associate aiid form an Incorporation or company for the purposes specified in either of the fol- lowing departments; — First department, To make Insurance upon the Lives of individuals and every insurance appertaining thereto or connected therewith, and to grant, purchase or dispose of Annuities. Second department. To make Insurance upon the Health of individuals, and upon the lives of horses, cattle and other live stock. OF THE STATE OF NEW YORK. 9 Every company organized under this act shall have authority to re-insure any risk herein authorized to be undertaken. [>§ 1, Chay. 463, Laws of 1853.] % 2. No company organized under this act for the jjur- ^,5^5. poses named in the First department, shall undertake either of the risks mentioned in the Second department ; nor shall any company organized under this act, for the purposes named in the Second department, undertake any business mentioned in the First department ; and no company organized under this act shall undertake any business or risks, except as herein provided. \^ 2, Chap. 463, Laivs of 18-53.] ^ 3. The persons referred to in the first section of this corpora- act shall be designated as Corporators, and they shall file J?^"'""- in the office of the Superintendent of the Insurance De- partment,* a Declaration signed by each of the corpora- tors, setting forth their intentions to form a company for the purposes named in this act, which Declaration shall comprise a copy of the Charter they propose to adopt, and the said Charter shall set forth the name of the com- pany ; the place where it is to be located ; the kind of business to be undertaken by referring to and repeating the department of the first section of this act to which they refer ; the mode and manner in which the corporate powers of the company are to be exercised ; the manner of electing the Trustees or Directors and officers, a majority of whom shall be citizens of this state, and the time of such election ; the manner of filling vacancies ; the amount of capital to be employed ; and such other particulars as may be necessary to explain and make manifest the objects and purposes of the company, and * The words " Superintendent of the Insurance Department " or " said Superintendent," are substituted for " Comptroller," in accordance with the provisions of section 3, Chapter 366, Laws of 1859. jQ LIFE INSURANCE LAWS the manner in which it is to be conducted. [§ 3, Chap. 463, Laws of 1853.] Attorney- § 4. Whenever the corporators shall file such Declara- ^eniTy^to" tion with the Superintendent of the Insurance Depart- Peclara- ^ i -i j_i i. ''o"- ment, it shall become his duty to submit the same to the Attorney-General for examination ; and, if found by him to be in accordance with the provisions of this act, and not inconsistent with the Constitution and laws of the United States and of this state, he shall certify to the same and deliver it back to the said Superintendent who shall cause the said Declaration, with the Certificate of the Attorney-General, to be recorded in a book to be kept for tliat purpose, and, upon application of the cor- porators to the said Superintendent, it shall become his duty to furnish a certified copy of such Declaration and Certificate to the said corporators. [§ 4, Chap. 463, Laivs of 1S53.] To publish §5. Whenever the corporators sliall have received fOTmcom-'" from the said Superintendent the certified copy provided '"'"^ for in the last section, and desire to pi'oceed to organize such company, they shall publish their intentions in the paper in which the state notices are directed to be in- serted ; and when such intentions liave been published in said paper for six weeks, they may open books to re- ceive subscriptions to the capital stock, and keep such books open until the amount required by this act is sub- scribed, and may tlien proceed to distribute the stock among the subscribers, if more than the necessary amount is subscribed, and proceed to collect in the said capital and complete tiie organization of the company. [§ 5, Chaj). 463, Laics of 1853.] Capital. 2 6. No company shall be organized under this act, for the purposes mentioned in the First department, with a less capital than One hundred thousand dollars, and no OF THE STATE OP NEW YORK. 11 company shall be organized, for the purposes mentioned in the Second department, with a less capital than Twenty-five thousand dollars. The whole capital of such company shall, before proceeding to business, be paid in and invested in stocks of the United States or of the State of New York, the market value of which shall be at the time at or above par, or in bonds and mortgages on improved unincumbered Real Estate within the State of New York, worth seventy-five per cent more than the amount loaned thereon, (but in such valuation, farm buildings shall not be estimated,) or in such stocks or securities as now are or may hereafter be receivable by the Banking Department.* And it shall be lawful for any company organized under this act, to change and reinvest its capital, or any part thereof, at any time they may desire, in the stocks or bonds and mortgages or securities aforesaid. No • The following are the statute provisions prescribing the kind and nature of the Stocks receivable by the Bank Department : — " The stocks which banking associations or individual bankers, now or hereafter to be organized under the provisions of the act, ' To autho- rize the business of banking,' passed April 18, 1838, and the amend- ments thereto, shall hereafter deposit with the Superintendent shall be New York State stocks, in all cases to be, or to be made to be, equal to stock producing six per cent per annum, or at least oue-half the amount so deposited, shall be in the stocks of the State of New York, as before mentioned, and not exceeding one-half in stocks of the Uni- ted States, in all cases to be, or to be made to be equal to a stock producing an interest of six per cent per annum ; and it shall not be lawful for the Superintendent to take such stocks at a rate above their par value, or above their current market value." [ Vide § 1, Chap. 313, Laws 0/1849.] In lieu of stocks, one-half of the deposit of securities in the Bank Department may consist of seven per cent bonds and Mortgages on im- proved, productive, unencumbered lands within this State, for not exceeding two-fifths of the value of said lands, excluding buildings ; to be received at a sum not above five thousand dollars for each Mortgage, and under regulations to be prescribed by the Superintendent of the Bank Department. [ Vide § 8, Chap. 260, Laws of 1838 ; and § 2 and g 3, Chap. 340, Laws of 1848 ; and g 10, Chap. 164, Laws of 1851.] 12 LIFE INSURANCE LAWS company organized for the purposes mentioned in the First department, shall commence business until they have deposited with the Superintendent of the Insurance Department of this State, the sum of One liundred thousand dollars, invested as hereinbefore provided for the investment of the capital of sucli company, and no company organized for the purposes named in the Second department, shall commence business until they have deposited with the Superintendent of the Insurance Department of this State, the sum of Twenty-five thou- sand dollars, invested as hereinbefore provided for the investment of the capital of such company. The Super- intendent of the Insurance Department shall hold such securities as security for policy holders in said companies, but so long as any company so depositing shall continue solvent, may permit such company to collect the interest or dividends on its securities so deposited, and from time to time to withdraw any of such securities on depositing with the said Superintendent such otiier securities of like value as those withdrawn, and of the same character as those above mentioned. ['^ 6, Chaf. 463, Laws of 1853, as amended by ^ 1, Chop. 551, Laws of 1853, and § 1, Chap. 328, Laws of 1860.*] * The original section 6 of Cliapter 4G3, Act of 1853, as amended \>y section 1, Chapter 551, Laws of the same year, is as follows ; — ^ U. No company shall be organized under this act for the purposes mentioned in the First department with a less capital than one hundred thousand dollars ; and uo company shall he organized for the purposes mentioned in tlie Second department with a less capital than twenty-five thousand dollars. The whole capital of such company shall, before proceeding to business, be paid in and invested in stoekjs of the United States, or of the State of New York, the market value of which shall be at the time at or above par, or in such stocks or securities as now are or may hereafter be receivable by the Bank Department. No company organized for the purposes mentioned in the First department shall commence business until they have deposited with the Comp- troller of this state the sum of one hundred thousand dollars in the stocks or securities before mentioned ; but all mortgages deposited by any company under this section shall be upon improved unincumbered lieal Kstate, worth seventy-five per cent more than tlie amount loaned OF THE STATE OF NEW YORK. 13 g 7. Whenevei- the corporators shall have fully organ- superinten- ized such company, and the said company have deposited uishcenifl- with the said Superintendent the requisite amount of JepoBit. capital, it sliall become his duty to furnish the corjjora- tion with a Certificate of such deposit, which, with a certified copy of the papers previously required under this act, shall, when filed in the County Clerk's office of the county where such companj'^ is' to be located, be the Authoi'ity to commence business and issue policies, and the same may be used in evidence for and against the corporation in all suits. [§ 7, Clia/p. 463, Laws of 1S53.] g S. It shall be lawful for any company organized under this act, to invest its funds or accumulations in bonds and mortgages on unincumbered Real Estate within the State of New York, worth fifty per cent more than the sum so loaned thereon, on in stocks of the United States, stocks of this State, or of any incorporated city of this State, if at or above par, and to lend the same or any jiart thereof on the security of such bonds and mort- gages, and upon the pledge of such stocks ; provided, that the current market value of sucli stocks shall be at least ten per cent more than the sum so loaned thereon. [>§! 8, Chap. 463, Laws of 1S53, as amended by § 2, C/taj). 328, Laws of I860.*] thereon ; and no company organized for the purposes named in the Second department shall commence business until they have deposited witlx the Comptroller of this state the sum of twenty-five thousand dol- lars in the stocks or securities before mentioned. The Comptroller shall hold such stocks or securities as security for policy holders in said companies ; but, so long as any company so depositing shall continue solvent, may permit such company to collect the interest or dividends on its stocks or securities so deposited, and, from time to time, to with- draw any of such securities, on depositing with the Comptroller other securities of like character, the market value of which shall be at the time of such deposit at or above par. * The original section 8, Chapter 463, Laws of 1853, is as follows : — ^ 8. It shall be lawful for any company organized under this act, to invest its funds or accumulations in bonds and mortgages, on unincum- 14 LIFE INSURANCE LAWS Charter may he amended* To hold Real OBtaU* Any company organized under the acts to which this is an amendment, having first obtained the consent of the Superintendent of the Insurance Department thereto in writing, may, by a vote of a majority of their Directors, accept the provisions of this act, or any of them, and amend their Charter to conform with the same. [_^ 3, Chap. 328, Laws of I860.] 5 9. No company organized under this act shall be permitted to purchase, hold or convey Real estate, except for the purposes and in the manner herein set forth, to wit : — 1. Such as shall be requisite for its immediate accom- modation in the transaction of its business ; or, 2. Such as shall have been mortgaged to it in good faith, by way of security for loans previously contracted, or for moneys due ; or, 3. Such as shall have been conveyed to it in satisfac- tion of debts previously contracted in the course of its dealings ; or, 4. Such as shall have been purchased at sales upon judgments, decrees or mortgages obtained or made for such debts ; and it shall not be lawful for any company incorporated as aforesaid to purchase, hold or convey Real Estate in any other case or for any other purpose ; and all such Real Estate as may be acquired as aforesaid, and which shall not be necessary for the accommodation of such company in the convenient transaction of its business, shall be sold and disposed of within five years after such company shall have acquired title to the same ; bered real estate within the State of New York, worth fifty per cent more than the sum so loaned thereon, or in stocks of the United States, stocks of this State, or of any iucorjiorated city in this State, if at or above par, and any stocks created under tlie laws of this state that shall be, at the time of such investment, at a market value in the city of New York, at or above par. OF THE STATE OF NEW YORK. 15 and it shall not be lawful for such company to hold such Real Estate for a longer period than that above mentioned, unless the said Company shall procure a certificate from the Superintendent of the Insurance Department that the interests of the company will suffer materially by a forced sale of such Real Estate, in which event the time for the sale may be extended to such time as the said Superintendent shall direct in said Certificate. [^ 9, Chap. 463, Laws of 1853.] § 10. The corporators, or the Trustees or Directors, as to adopt ,, ^ p • 1 1 j_i • eeal, make the case may be, oi any company organized under this uyiawB.&c. act shall have power to adopt a Seal, and to make such By-laws, not inconsistent with this act or the Constitu- tion and laws of this state, as may be deemed necessary for the management of its affairs ; and suits at law may be maintained by any corporation formed under this act against any of its members or stockholders for any cause relating to the business of such company ; also, suits at law may be prosecuted and maintained by any member or stockholder against such corporation for losses which may have accrued, if payment is withheld more than two months, on all risks, after such losses shall have been due. [§ 10, Chap. 463, Laws of 1853.] § 11. All companies formed under this act shall be companie» deemed and taken to be bodies corporate and politic, in be bodies fact and in name, and shall be subject to all the provi- aadpoutic sions of the Revised Statutes in relation to corporations, so far as the same are applicable, except in regard to Annual Statements and other matters herein otherwise specially provided for. [§ 11, Chap. 463, Laws of 1853.] S 12. It shall be the duty of the President or Vice- ^ffd',',"™^'^ President and Secretary or Actuary, or a majority of the annuauyf^ Trustees of each company organized under the laws of this state, annually, on the first day of January, or within 16 LIFE INSURANCE LAWS sixty days thereafter, to prepare under oath, and deposit in the office of the Superintendent of the Insurance Department of the state, a Statement, showing: — 1. The number of policies issued during the year. 2. The Amount of insurance effected thereby. 3. Amount of Premiums received during the year. 4. Amount of interest and all other Receipts, specify- ing the items. 6. Amount of Losses paid during the year. 6. Amount of Losses unpaid. 7. Amount of Expenses. 8. Whole number of policies in force. 9. Amount of Liabilities or risks thereon, and of all other liabilities. 10. Amount of capital stock. 11. Amount of Accumulation, specifying whether received upon Life insurance, Annuities, or how other- wise. 12. Amount of Assets and manner in which thej'^ are invested, specifying what amount in Real estate, on bond and Mortgage, stocks, loans on stocks, premium notes, credits or other securities. 13. Amount of Dividend unpaid. 14. A tabular statement of the policies in force for the whole term of life, showing how many thereof for each age of life, and for what amount of risk, were issued or in force during the first year of the existence of the com- pany, during the second year, and so on up to the time of making such statement. 15. A tabular statement of the policies in force for a shorter period than the whole term of life, showing how many thereof for each age of life, and for what amount of risk, were issued or continued in force during tiio first OF THE STATE OF NEW YORK. 17 year of the company's existence, during the second year, and so ou up to the time of making such Statement. The Superintendent of the Insurance Department shall cause to be prepared, and furnished to every company to vviiich this act shall apply, printed forms of the State- ments herein required ; and he may make such changes from time to time, in the form of the same, as shall seem to him best adapted to elicit from said companies a true exhibit of their condition in respect to the several points hereinbefore enumerated. [ '§> 12, Chap. 4G3, Laws of 1853.] 5 13. It shall be the duty of the Superintendent of statements the Insurance Department to cause the information con- municated to the Leg- tained in the Statements required iQ the last section to isiature. be arranged in a tabular form, and prepare the same in a single document for printing, which he shall commu- nicate to the Legislature. \_^ 13, Chuji. 463, Laws of 1S53.] g 14. It shall not be lawful for any person to act within this state, as Agent or otherwise, in receiving or procuring applications for insurance, or in any manner to aid in transacting the business of insurance, referred to in the first section of this act, for any company or associa- tion incorporated by or organized under the laws of any other state government, unless such company is possessed of the amount of capital required by the sixth section of this act for companies in this state, and the same is invested in stocks of the United States, or of the State of New York, or of the state in which said company is located, the market value of which at the time of such g^^^,^ deposit shall be at or above par, or in such stocks or securities as now are or may hereafter be receivable by the Bank Department; but all Mortgages deposited by 18 • LIFE INSURANCE LAWS anv coTiipaii}' under this section sjiall be upon improved, unincumbered Real estate, worth seveutj^-iive per cent more than the amount loaned thereon, which investments are deposited with the Auditor, Comptroller or Chief Financial officer of the state by whose laws said com- pany is incorporated, and the Superintendent of the Insurance Department of this state is furnished with the Certificate of such Auditor, Comptroller or Chief Financial officer aforesaid, inider his hand and official seal, that he, as such Auditor, Comptroller or Chief Financial officer of such state, holds in trust and on deposit, for the benefit of all the policy holders of such company, the security before mentioned, which Certifi- cate shall embrace the items of the security so held, that he is satisfied that such securities are worth one hundred thousand dollars, if the company proposes to transact the business referred to in the First department, or that they are worth twentj^-five thousand dollars if the company proposes to transact the business referred Eschangeof to in tlic Sccond department. But nothing herein con- tained shall be construed to invalidate the agency of any company incorporated by another state by reason of such company having from time to time exchanged the securi- ties so deposited with the Auditor, Comptroller or Chief Financial officer of the state in which such company is located, for other stock, authorized by this act, the mar- ket value of which shall be at or above par, or by reason of such company having drawn their interest and divi- dends, from time to time, for such stocks. Such com- pany shall also appoint an Attorney in this state, on whom process of law can be served ; and such Attorney shall file with the Superintendent of the Insurance De- partment a certified copy of the Charter of said company, OF THE STATE OF NEW YORK. 19 and also a certified copy of tlie vote or resolution of the Trustees or Directors of the said company appointing such Attorney, which appointment shall continue until anotiier Attorney be substituted, in which vote or reso- lution they shall name the time designated for making their Annual Statements. When the foregoing require- superinten- o ^ 1 dent to give nients shall have been complied with, the said Superin- •^"'"i<^'"»- tendent shall give a Certificate to that efi'ect, setting forth the name of the Attorney for such company, which Cer- tificate, when filed in the County Clerk's office of the count}'^ where the agency is to be established, shall be the Authority of such company to commence business ; and such company, or their Attorney, shall annually file with the said Superintendent of the Insurance Depart- ment of this state, a Statement of their affairs in the manner and form provided in section twelve for similar companies in this state. [§ 14, Ckcqj. 463, Laws (f 1S53, as amended hij % 2, Chap. 551, Laws of 1853.] 5 15. It shall not be lawful for any person to act in seouriuo. this state as acrent or otherwise, in procurinc; applica- Bitedwith ° ^ oil Superinten- tions for Life or Health insurance, or in any manner to dent bctoro ^ aL'ent can aid in transacting the business of any Life or Health in- surance company incorporated by or organized under the laws of any foreign government, until such company have deposited with the Superintendent of the Insurance Department of this state, for the benefit of the policy holders of such company, citizens or residents of the United States, securities to the amount of one hundred thousand dollars of the kind required by section sixth, for similar companies of this state, and have appointed an Attorney in this state on whom process of law can be served, and said Attorney shall have filed with the said Superintendent a certified copy of the Charter of a^ent can act. 20 LIFE INSURANCE LAWS the said company, aud also a certified copy of the vote or resolution of the Trustees or Directors of such com- pany, appointing him the Attorney of such company, which appointment shall continue until another Attorney be substituted. When the foregoing requirements shall have been complied with, the said Superintendent shall give a Certificate to that effect, and also state the name of the Attorney, which Certificate when filed in the County Clerk's office of the county where the agency is to be located, shall be the Authority to commence busi- ness. The Attorney of such company shall annually file with the said Superintendent a Statement of its affairs in the United States, in the manner and in the form required by the twelfth section of this act, which said Statement shall be sworn to by the Attorney of such company, but this act shall not apply to such companies as have made the deposit with the Comptroller until the first day of July, eighteen hundred and fifty-three. [^ 15, Chap. 463, Laivs of 1853.] All foreign Insurance companies, associations, corpora- tions, partnerships and individuals, transacting the busi- ness of Fire, Marine or Life insurance, or any other kind of insurance in this state, shall make Annual Statements of their condition and affairs to the Insurance Depart- ment, in the same manner and in the same form as similar companies organized under the laws of this state. [§ 1, Chap. 334, Laws of 1S61.] In case of neglect or refusal to make such Annual Statements, as aforesaid, all persons acting in this state, as agents or otherwise, in transacting the business of in- surance for said companies, corporations, associations, partnerships, or individuals, shall be subject to the same penalties provided by law in case of the failure of any OF THE STATE OF NEW YORK. 21 iusurance company, organized under the laws of this state, to make an Annua! Statement, as now provided by law. [§ 2, Clia-p. 334, Laivs of 1861.] 3 16. Every County Clerk shall demand and receive Feee. for every paper filed in his office under this act, the sum of ten cents, to be accounted for and paid to the County Treasurer as now provided with regard to other fees. [■§ 16, Chap. 463, Laws of 1853, as modified by § 7, ajid I 8, Chap. 366, Laivs of 18-59.] 3 17. It shall be the duty of the Superintendent of supenn- the Insurance Department, whenever he shall have good esamin". reason to suspect the correctness of any Annual State- made"^" ment, or that the affairs of any company making such Statement are in an unsound condition, to cause an Examination to be made into the affairs of any insurance company for the purposes named in this act, incorporated in this state, or doing business by its agencies in this state ; and it shall be the duty of the officers or agents of any insurance company doing business in this state, to cause their books to be opened for the inspection of tlie person or persons so appointed, and otherwise to facili- tate such Examination so far as it may be in their power so to do ; and for that purpose the said Superintendent, or the person or the persons so appointed by him, shall have power to examine, under oath, the officers and agents of any company relative to the business of said company ; and whenever the said Superintendent shall deem it for the interest of the public so to do, he shall publish the result of such investigation in the paper in which the state notices are directed to be inserted ; and whenever it shall appear to the said Superintendent, from such Examination, that the Assets of any such company be insufficient to reinsure the outstanding 22 LIFE INSURANCE LAWS risks, he shall communicate the fact to the Attoruey- General, whose duty it shall then become to apply to the Supreme Court for an order requiring them to show- cause why the business of such company should not be closed, and the court shall thereupon proceed to hear the allegations and proofs of the respective parties; and in case it shall appear to the satisfaction of the said court that the Assets and funds of the said company are not sufficient, as aforesaid, the said court shall decree a dis- solution of said company and a distribution of its effects, including the securities deposited in the hands of the said Superintendent. The Supreme Court shall have power to refer the application of the Attorney-General to a referee, to inquire into and report upon the facts stated therein. And whenever it shall appear to the said Superintendent from the Report of the person or persons appointed by him, that the affairs of any com- pany not incorporated by the laws of this state, are in an unsound condition, he shall revoke the Certificates granted in behalf of such company, and shall cause a notification thereof to be published in the state paper for four weeks, and the Agent or agents of such com- pany are after such notice, required to discontinue the issuing of any new policies. The expenses of any Ex- amination made under this section, shall be borne by the company so examined. [§17, Chaf. 463, Laws of 1S53.] g 18. Every violation of this act shall subject the vioutionof party violating to a penalty of five hundred dollars for each violation, which shall be sued for and recovered in the name of the people, by the District Attorney of the county in which the company or agent or agents so vio- lating shall be situated, and one-half of such penalty when recovered, shall be paid into the Treasury of such OF THE STATE OF NEW YORK. 23 county, and the other half to the informer of such viola- tion ; and, in case of the non-payment of such penalty, the party so offending shall be liable to imprisonment for a period not exceeding six months, in the discretion of any conrt having cognizance thereof. [§ 18, Chaji. 463, Laws of 1853.] 3 19. When any company, transacting the business of proceed- insurance under either of the departments specified in company™ wishes to the first section of this act, within the State of New rfi''' 23, Chap. 463, Laws of 1853.] [For the Act of April 10th, 1849, See Session Laws of that year, Chap. 308 ; for the Act of April Sth, 1851, See post p. 25.] OF THE STATE OF NEW YORK. 25 Cliap. 95. AN ACT IN RELATION TO ALL COMPANIES TRANS- ACTING THE BUSINESS OF LiFE INSURANCE WITH- IN THIS state; passed April 8th, 1851.* Section 1. Every Life Insurance Company tr.insacting business in tbis state, sliall deposit one hundred thousand dollars in certain stocks or bonds and mortgages ; regula- tions, &c. 2. Stocks, bonds and mortgages to be held as security for policy holders ; companies may collect interest in cer- tain cases ; securities may be withdrawn on depositing other like securities ; regulations as to title and value of real estate mortgaged. 3. Agents not to act in this state without procuring Certili- cates of Authority. 4. Companies from other states and foreign countries, to make and publish Annual Statements of their condi- tion and affairs ; contents thereof. 5. An Examination may be made into the .affairs of any com- pany when deemed expedient ; proceedings thereon. 6. Further proceedings when the Assets are not sufficient to re-insure the outst.anding risks. 7. Certificates of Authority to lie revoked in certain cases. 8. Proceedings when company desires to relinquish business. 9. Penalty for violating provisions of Act. 10. Eepealiug section. The People of the State of Neiv York, represented in Senate and Assembly, do enact as follows: — 5 1. Every company or association transacting the biisi- $ioo,oooto ness of Life insurance within the State of New York, cd wuh"*" shall, on or before the 1st day of August, in the year one ^o™p"""- tliousand eight hundred and fifty-one, deposit witli tlie Comptroller of this state the sum of fifty thousand dol- lars, and on or before the first of February thereafter, the further sum of fifty thousand dollars, in public stocks of the United States, or of this state, or stocks or bonds of either of tlie incorporated cities of this state ; and which stocks or bonds shall be at or above par at the time of such deposit, or in bonds and mortgages on un- incumbered improved Real Estate situate within this state, and worth at least fifty per cent more than the amount * This act is repealed sub modo ; See Section 22, Chapter 463, Laws of 1853, Ante, p. 24. The word "Comptroller" is retained in this Act, under the circumstances, although the powers and duties of the Comp- troller are now devolved on the Superintendent as far as this Act remains in force. 4 26 LIFE INSURANCE LAWS of the mortgage thereon ; and the President or Agent of every company shall annex to every mortgage his affidavit that said mortgage was made and taken in good faith for money loaned by the company wliich lie repre- sents, to the amount therein named, and that no part thereof has been since paid or returned, and that he has reason to believe, and does believe, that the premises tliereby mortgaged are wortii at least fifty per cent more than the aniount of the mortgage thereon ; and the Comptroller shall prescribe such regulations for ascer- taining the title and value of such Eeal Estate as he may deem necessary ; provided, hovfever, that companies or associations established, or which may commence opera- tions in this state by agents or otherwise, subsequent to the passage of this act, shall, before obtaining the Cer- tificate required by the act to provide for tiie incorpora- tion of insurance companies, passed April tenth, eighteen hundred and forty-nine, deposit with the Comptroller the sum of one hundred thousand dollars, in securities as hereinbefore specified. Money.how g o, hj^i^q Comptroller shall hold said stocks, bonds and how man- mortgagcs as security for policy holders in said compa- "^'"^' nies, but shall, so long as any company so depositing shall continue solvent and shall comply with all the re- quisites of the laws of this state applicable to such company, permit such company to collect the interest or dividends on its bonds and mortgages or stocks so deposited, and from time to time to withdraw any of such securities on dejiositing with the Comptroller other like securities, stocks or mortgages, the par value of which shall be equal to the par value of such as may be withdrawn ; each mortgage so substituted to be also accompanied with an aftidavit as required in the first section; and the Comptroller shall prescribe such i-egu- lations for ascertaining the title and value of the real estate covered by the mortgage so substituted, as he may deem necessary. Agen.a. § 3- It shall iiot be lawful for any person to act, within this state, as Agent or otherwise in receiving or procuring apjilication for insurance in or in any manner to aid in transacting tin; insurance business of any company or as- sociation not incorporated under the laws of this state, until he has procured a Certificate from the Comptroller OP THE STATE OF NEW YORK. 27 that tlie company or association for which he acts has complied with all the provisions of this act ; antl for every Certificate so obtained the sum of three dollars shall be paid to the Comptroller. erintendent of the Insurance Department, 21 To make application to Sujierintendent, under oath, in case of intention to relinquish business ; and to make oath that all liabilities are extinguished 23 ORIGINAL: — Section 6 of Chap. 463, Laws of 1853, referring to the organization of Life and Health Insurance Companies and the investment of their Capital 12,13 Section S, Chap. 463, Laws of 1853, 13, 14 P. PENALTY, for violation of Act of June 24, 1853, to be sued for by District Attorney ; to whom to be paid, 22, 23 PENALTIES, for neglect or refusal of Agents of Foreign Life Insurance Com- panies to make Statements, same as provided in case of New York State Companies, , 20, 21 PERSONAL LIABILITY, Constitutional provisions concerning 5 PERSONS, number of, who may associate and form Incorporation for the pur- poses specified in M, Chap. 463, Laws of 1853, 8 POLICIES, Number and amount of, issued and in foi-oe, and tabular state- ments thereof to be made, in Anniial Statement, 16, 17 PREMIUMS, Amount of, received during year, to he reported in Annual Statement, 16 POWER of Superintendent to examine affairs of a Life Insurance Company or to appoint persons for that purpose, 21 PRESIDENT, or other officers of a Life Insurance Company, duty of, to make Annual Statements to Superintendent, 15, 16 PROCEEDINGS in case a Company wishes to relinquish bu.siness, 23 40 INDEX. P»ge. PUBLICATION : — In Stutf I'aper, of Inteiitiou of Corporators, to form a Life or Health In- surance Company, 10 Of result of an investigation of a Life Insurance Company's affaii-s, to be made, at discretion of the Superintendent, 21 Of Notification of Revocation of Certificates of Authority to be made by Superintendent, in State Paper, 22 Of notice of intention of a Company to relinquish business ; when and liow to be made, 23 R. REAL ESTATE : — May be held by Life Insurance Companies, in what manner and for what purposes 14, 15 Held by Companies, to be disposed of within five years 14 Certificate to postpone sale of, may be issued by Superintendent in certain cases 15 RECORD to be made of Declaration and Charter of Corporators of a Life Insurance Company, and of the Attornej'-General's Certificate thereto 10 REFEREE, Power of Supreme Court to appoint in case of Application by At- torney-General to close the business of a Life Insurance Company, . 22 RE-INSURANCE, Power of Company to efi'ect 9 REPE.\L sub modo, of portions of the Acts of April 10th, 1849, and April 8th, 1851, relating to Life Insurance, 24 REQUIREMENTS : For admission of Companies from other States, 17, 18, 19 For admission of Companies from Foreign Countries, 19, 20 REVOCATION of Certificates of Authority to be made by Superintendent in certain cases, 22 RISES under First department of the Law of June 24, 1853, not to be taken by a Company organized under the Second department, and vice versa, 9 s. SALE of Real Estate owned by a Life Insurance Company, may be postponed by Certificate of Superintendent " " 15 SEAL, Corporators of a Life Insurance Company have power to adopt 15 SECRETARY or other officers of a Life Insurance Company to make Annual Statement, j5 jg SECURITIES :— Of Life and Health Insurance Companies, what to consist of; amount to bo deposited witli Superintendent of Insurance Department; may be witiulrawn and exchanged, H J2 Dcscrii)lion of, receivable at Banking Di-partment, .'.. ' n Of a Life Insurance Company from another State to be deposited with Chief Financial Ollicer of that state; nature thereof; may be ex- changed ; and interest thereon received by Company, 17 18 INDEX. 41 Pago. SERVICE of Process, may be made upon the Attorney of a Life Insurance Company from another State or Country, 19, 20 STATEMENT, Annual, of a Life Insurance Company, when to be made and tiled ; manner and contents thereof, 15, 16, 17 To be filed by the Attorney of a Company from another State or Country, 19, 20 STOCK of a Life Insurance Company to be distributed among subscribers in certain cases, 10 STOCKS:— Of the State of New York or the United Slates, the capital of a Life Insurance Company may be invested in, 11 Description of, receivable at Banking Department, 11 Of incorporated cities of this State, funds and accumulations of a Life Insurance Company may be invested in, 13 Description of, in which the capital of a Life Insurance Company from another State may bo invested, 17 STOCKHOLDERS may bring suits at law against a Life Insurance Corporation in certain case.s 15 SUITS AT LAW, may be maintained by Life Insurance Corporations again.-st any of their members, and vice versa, 15 SUBSCRIPTION BOOKS to Capital Stock, when to be opened ; regulations, 10 SUPERINTENDENT OF THE INSURANCE DEPARTMENT: — May extend time for gale of Real Estate in certain cases, 15 Duty of, to prepare and furnish printed forms for Annual Statements ; power to make changes therein, 17 To Compile and report to tlie Legislature the information contained in the Annnal Statements 17 To give Certificate of Authority, in certain cases, to the agent of a Com- pany from anotlier State, or foreign Country, 19, 20 To cause an Examination to be made into the afl'airs of a Life Insurance Company, when he shall deem it expedient so to do ; powers of Superintendent iu such cases 21 To publish the result of an Examination into tlie affairs of a Life Insur- ance Company, if deemed for the interest of the public so to do,. . . 2' To communicate to the Attorney-General the fact of the insufliciency of the Assets of a Life Insurance Company 21, 22 To publish Notification of Revocation of the Certificates of Authority of agents of a Company not incorporated under the laws of tliis State, . 22 To publish notice of the Intention of a Life Insurance Company to relin- quish business, on receiving the application of its officers to that effect, 23 To deliver up to a Company relinquishing business, all securities held for it iu trust, ou being satisfied that all its debts are extinguished ; or in proportion as all liabilities upon any contract with any citizen of this State are diminished less than one-half the amount of .secu- rities retained, 23, 24 SUPREME COURT, to take cognizance of application of the Attorney- General to close the business of a Life Insurance Company organized under the laws of the State of New York, and in certain cases to decree the dissolution of the Company, 22 6 4-2 IXDEX. Page. T. TAXATION : — Of Mutual Life Iiism-anoe Companies provided for by AmeDdment to Law of June 29, 1853 31 Of Mutual Life Insurance Companies to be limited to taxation on SIOO.OOO for personal property and no more, as jjrovided by Chap. S3, Laws of 1855, ". 31 TRUSTEES of a Life Insurance Company, Majority of, to be citizens of this State, 9 Majority of, or certain officers, to make Annual Statement, 15, 16 Have power to make Seal and Bj--Laws, .■ 15 T. VICE-PRESIDENT of a Life Insurance Company, or other officers, duty of, to make Annual Statement to Superintendent 15, 16 VIOLATION of Provisions of Chap. 463, Laws of 1853, penalty for, 22, 23 VOTE of Directors of a Company not organized under the laws of this State, Appointing Attorney in the State of New York, certified copy of, to be filed in Insurance Department, 19, 20 SOUTHERN RErfnK ?f California 405 Hiigard Avenue S'-'fR^^ Return this maflria?fo f h^ rK 80°24-l388 ^°m Which it w's'borS'j^^ THE I IBP Uiiive Soi Li