Page images
PDF
EPUB

Ninth. Possessory rights to public lands;

Tenth. All dues and credits secured by mortgage, trust deed or other lien;

Eleventh. Mining claims not patented; but machinery, property and improvements upon or appurtenant to mining claims shall not be exempt.

SEC 2. That chapter one, title ten, of the Political Code of Idaho, be amended by adding thereto Section 1402 to read as follows:

Section 1402. The following property is exempt from taxation; all irrigating canals and ditches and water rights appurtenant thereto, when the owner or owners of said irrigating canals and ditches use the water thereof exclusively upon land or lands owned by him, her or them: Provided, In case any water shall be sold or rented from any such canal or ditch, then, in that event, such canal or ditch shall be taxed to the extent of such sale or rental.

SEC. 3. An emergency existing therefor this act shall take effect and be in force from and after its passage and approval by the Governor.

SEC. 4. All acts and parts of acts in conflict with this act are hereby repealed.

Approved the 6th day of March, 1903.

HOUSE BILL NO. 78.

AN ACT
TO AUTHORIZE THE ORGANIZATION OF MUTUAL CO-OPERA-

TIVE INSURANCE COMPANIES, TO INSURE BOTH PER-
SONAL AND REAL PROPERTY AGAINST LOSS BY FIRE,
LIGHTNING, TORNADO, CYCLONE, WINDSTORM, AND THE
FIDELITY OF PERSONS AND TO REGULATE THEIR CON-

DUCT.
Be it enacted by the Legislature of the State of Idaho:

SECTION 1. Organization. Any number of persons re. siding in this State who own personal or real property of not less than $100,000.00 in value which they desire to have insured may associate themselves together for the purpose of mutual co-operative insurance against loss by fire, lightning, tornadoes, cyclone, windstorm and the fidelity of persons, and form an incorporated company for such purposes and issue policies. Such companies shall embody the words, “Mutual Co-operative," in its name.

SEC. 2. Recording.The articles of incorporation of such company shall be filed with the insurance commissioner for examination. If by him found to be in accordance with the provisions of this act, and the name of such company is not similar to the name of any other insurance company organized in this State, he shall thereupon deliver to such company a certified copy of the articles of incorporation, which on being recorded in the office of the recorder of the county where the principal office of such company shall be located, and a copy thereof, certified by the county recorder, filed with the Secretary of State, the Secretary of State must then issue to the corporation, over his official seal, a certificate that a copy of the articles containing the required statement of facts has been filed in his office; and thereupon the persons executing the articles, and their associates and successors, shall be entitled to transact business and issue policies of insurance under the corporate name stated in the articles, and for the term of fifty years, unless it is in the articles of incorporation otherwise stated, or by law otherwise specially provided.

A copy of any articles of incorporation filed in pursuance of this act and certified by the Secretary of State must be received in all courts and elsewhere as prima facia evidence of the facts therein stated.

SEC. 3. Members.-All persons and corporations, municipal or otherwise, who effect insurance in any company organized under the provisions of this act shall thereby become members of such company and continue to be during the period that their insurance is in force and no longer. All persons so insured shall give their obligation to such company in an application binding themselves, their heirs, executors, administrators, successors or assigns to pay all legal assessments made upon them by such company. They shall also at the time of effecting insurance pay such an amount in cash as is provided for in the by-laws, but no company shall organize or transact business that does not provide for a reasonable amount of cash to be paid down at the time the insurance is taken in proportion to the risk that is to be carried. The application of any corporation or municipality for insurance in any company shall be signed by the officer or officers authorized to sign ordinary contracts of such corporations or municipalities.

SEC. 4. Meetings.-An annual meeting of such company for the purpose of electing directors as provided in the articles of incorporation, shall be held in each year at the principal office of such company, of which all members shall be notified in such manner and form as the bylaws shall provide. Special meetings may be held by order of the president upon the written request of a majority of all directors with a like notice. Each member may vote by ballot for as many persons as there are directors to be elected.

SEC. 5. Directors.—The number of directors shall be not less than six or more than twelve. Of those elected at the time of the organization of such company, one-third shall be elected for one year, one-third for two years and one-third for three years. At each annual meeting thereafter a number equal to one-third of the whole number of directors shall be elected for three years or until their successors are elected and qualified. Such directors are to manage the affairs of the company. Vacancies in the board of directors may be filled by the remaining directors, and such board of directors, or a majority of them, when legally convened at the principal office of the company shall be competent to exercise all of the powers created by this act.

SEC. 6. Officers.-Immediately after their election the directors must organize by electing a president and a vicepresident, who shall be one of their number, a secretary and a treasurer. They shall perform the duties enjoined upon them by law and the by-laws of the corporation. Such officers shall receive such compensation and give such bonds as the by-laws provide or the board of directors de termine.

The board of directors shall have power, by two-thirds vote, to remove any officer for just cause. They shall also fill any vacancies that may occur from any cause.

SEC. 7. Agents and Employes.The directors of such company may appoint agents, clerks, adjusters and other employes, allowing them such compensation and exacting from them such bonds as the directors may deem proper. The board of directors may appoint an executive committee to whom they may delegate the minor powers and authority vested in such board.

SEC. 8. By-Laws.The members of such company or the board of directors, as may be provided in the articles of incorporation, shall make such by-laws not inconsistent with this act as they deem necessary for the management of such company. All amendments of the by-laws shall be furnished to the members in such manner, form and time as the by-laws shall provide.

SEC. 9. Suits at Law.-If any member of such company for a space of thirty days after the written or printed notice of assessments has been mailed to him or her, postpaid, and directed to the postoffice as stated in the application for insurance, or as the same may have been thereafter changed to and recorded with the company, shall neglect to pay the sum assessed, such company may sue for and recover such amount and costs. Suits at law may be brought against such company by a member or members thereof for loss sustained if payment is withheld after such loss becomes due. The officer or officers of such company who shall wilfully neglect or refuse to perform the duties imposed upon them by the provisions of this act, shall be liable in their individual capacity to the persons sustaining such loss.

SEC. 10. Territory.--It shall be lawful for such companies to insure property only within this State until such time as such company shall have at least $5,000,000.00 at risk, and then the board of directors may determine in what State or States, other than the State of Idaho, it shall do business and apply for admittance to such other State or States. Any mutual co-operative insurance company organized under the law of any other State similar in form and in substance to this act may be admitted to do business in this State by the insurance department of the State upon making a showing that they are legally incorporated under the laws of their own State and have complied with the conditions of such law, have at least $5,000,000.00 of insurance in force, and the proper Insurance Commissioners of such State shall certify that he believes such company solvent, doing a good business, Officered by men of integrity and standing, and he believes they aro entitled to the confidence of the public, and upon such company procuring a request and application for membership of one hundred persons, citizens of this State having property that they desire to have insured, and paying a fee of $25.00 to the Insurance Commissioner of this State: Provided, always, That the Insurance Commissioner and the laws of the State, where such company applying for admission is domiciled, shall grant to the mutual co-operative companies of this State, organized under this or similar laws, like rights and privileges under in substance the same rules and restrictions.

SEC. 11. Policies.-Such companies may issue policies on all kind of insurable real and personal property as herein provided against loss or damage by fire, lightning, tornado, cyclone and windstorm, and the fidelity of persons for any length of time as may be determined upon by such company in its by-laws. It shall not issue policies on any one risk or hazard to exceed $1,000.00 until there is $300,000.00 insurance in force when policies of $2,000.00 may be issued; or issue policies for more than $2,000.00 on any one risk until there is $1,000,000.00 insurance in force, when policies of $3,000.00 may be issued; or issue policies for more than $3,000.00 on any one risk until there is $2,-. 000,000.00 insurance in force, when policies may be issued in the discretion of the company: Provided, No real property shall be insured for more than three-fourths its value.

Should the amount of insurance decrease below any of the figures above enumerated, the amount of the policy must be correspondingly reduced upon its renewal or within three months from time that the amount of insurance falls below the foregoing figures.

All policies shall be signed by the president and secretary, and each policy holder shall be furnished with the by-laws of the company. Should the amount of insurance of any company created under this act decrease below $100,000.00 the president of such company shall at once call a meeting of the members to consider the matter of disorganizing

SEC. 12. Assessments.-All assessments shall be determined by proper classification and rating of the property insured, so that each member will be assessed according to the greater or less risk of the property insured to the hazard insured against.

An assessment may be made on the members due and payable within thirty days thereafter to enable the company to provide for losses and expenses necessary in the conducting of its business whenever the board of directors so determine. No assessment shall be made on a member for liabilities incurred prior to his or her membership.

« PreviousContinue »