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§ 6. The corporation shall have legal existence subject to the limitations prescribed in this Act, from the approval and filing of such Articles, and the original incorporators may adopt by-laws, which thereupon shall be filed with the Insurance Superintendent. § 7. Any corporation organized under the provisions of this Act is empowered and authorized to make contracts of insurance or to reinsure or accept reinsurance on any portion thereof, for the kinds of insurance as follows: Provided, that no mutual corporation organized or licensed under this Act shall have power to write any kind of insurance which is not permitted to be written by stock companies under the laws of this State. 1. To make insurance on property and rents and use and occupancy against loss or damage by fire, lightning, hail, tempest, earthquake, explosion, fire ensuing and explosion, no fire ensuing, except explosion by steam boilers or fly wheels against loss or damage by water, caused by the breakage or leakage of sprinklers, pumps, or other apparatus, water pipes, plumbing, or their fixtures, erected for extinguishing fires and against accidental injury from any cause to water pipes, plumbing, or their fixtures, erected for extinguishing fires, and against accidental injury from any cause to such sprinklers, pumps, other apparatus, water pipes, plumbing and fixtures; on the risks of inland transportation and navigation; and to make insurance upon automobiles, whether stationary or operated under their own power, against loss or damage by any of the causes or risks specified in this section, including explosion, transport[a]tion, collision, liability for damage to property resulting from owning, maintaining, or using automobiles, and including burglary and theft, but not including loss or damage by reason of bodily injury to the person. 2. Against loss, expense and (or) liability by reason of bodily injury, death by accident, disability, sickness or disease suffered by others for which the insured may be liable or have assumed liability. 3. To issue individual insurance policies against bodily injury, or death by accident or upon the health of persons. 4. Against loss, expense, and liability resulting from the ownership, maintenance or use of any automobile or other vehicle. 5. Against loss or liability to persons or property resulting from explosion, or accidents, to boilers, containers, pipes, engines, fly wheels, elevators and machinery in connection therewith and against loss of use and occupancy caused thereby, and to make inspections and issue certificates of inspection thereon. 6. Against loss from interruption of trade or business which may be the result of any accident or casualty. 7. Against any loss or liability arising from any other casualty or insurance hazard which may lawfully be the subject of insurance, excepting life or fire. § 8. Any mutual corporation authorized to transact the kind of insurance described under Sub-section 1 of section 7, shall not be authorized to transact any of the kinds of insurance described under subsections 2, 3, 4, 5, 6 and 7 of section 7; nor shall any mutual corporation authorized to transact any of the kinds of insurance described under sub-sections 2, 3, 4, 5, 6 and 7 of section 7, be authorized to transact the r kind of insurance described under sub-section 1 of section 7. Any mutual corporation authorized to transact any of the kinds of insurance described under sub-sections 2, 3, 4, 5, 6 and 7 of section 7, may be authorized to transact any or all of the additional kinds described under said sub-sections, providing it holds the admitted assets required under sub-section 7 of section 9. § 9. No such corporation shall issue policies or transact any business of insurance unless it shall comply with the conditions following, nor until the Insurance Superintendent has by formal license authorized it to do so, which license shall not issue until the corporation has complied with the following conditions: If organized to transact the kind of insurance described in subsection 1, of section 7: . 1. Applications for at least two hundred (200) risks, for at least twenty members, shall be subscribed, aggregating not less than five hundred thousand dollars ($500,000.00) insurance. 2. The maximum amount of any single risk, less reinsurance, shall not exceed three times the average risk or one per cent of the insurance applied for, whichever is the greater. 3. A premium upon each application shall be collected in cash and the corporation shall hold total cash assets of not less than twice the maximum single risk assumed subject to one fire, nor less than ten thousand dollars ($10,000.00). 4. It shall hold admitted assets equal to at least two times the maximum risk assumed. If organized to transact the kind of insurance described under subsections 2, 3, 4, 5, 6 and 7 of section 7: 5. It shall hold bona fide applications for insurance upon which it shall issue simultaneously at least twenty policies to at least twenty members of the same kind of insurance upon not less than 200 separate risks, each within the maximum single risk prescribed herein. 6. The maximum single risk shall not exceed twenty per cent of its admitted assets or three times the average policy, or one per cent of the insurance in force, whichever is the greater, any reinsurance taking effect simultaneously with the policy being deducted in determining such maximum single risk. 7. It shall hold admitted assets for each kind of insurance to be issued equal to at least five times the maximum single risk assumed. 8. For the purpose of transacting the kind of insurance specified in sub-section 2 of section 7, no more than $25,000.00 in such admitted assets shall be required, and at least 1,500 employees shall be covered, each such employee being considered a separate risk, and the provision with regard to maximum single risk shall not apply. § 10. When more than one kind of insurance as enumerated and described under sub-sections 2, 3, 4, 5, 6 and 7 of section 7, is effected by the same corporation, each kind shall be written in a separate policy. In the accounts pertaining to each kind shall be entered all receipts thereof and all expenses incurred directly in its behalf and a due proportion of the unallocated expenses of the corporation, in such manner as to show separately the underwriting experience. The funds earned by one kind of insurance shall not be available to pay losses or expenses incurred by another kind until all available assets of the kind where the losses or expenses were incurred are exhausted. The return of excess premiums, if any, shall be based upon the contribution of each kind of insurance to such excess. § 11. Any public or private corporation, board of [or] association in this State or elsewhere may make applications, enter into agreements for and hold policies in any such mutual insurance corporation. Any officer, stockholder, trustee or legal representative of any such corporation, board, association or estate may be recognized as acting for or on its behalf for the purpose of such membership, but shall not be personally liable upon such contract of insurance by reason of acting in such representative capacity. - - § 12. Every corporation, organized under the provision of this Act, may, in its corporate name, sue and be sued; and shall have power to make contracts of insurance or indemnity with any person, firm, public or private corporation, board, association or estate or any trustee or legal representative of same, in this State or elsewhere; prescribe the qualifications and the manner and form of the admission of members; to have and to use a common seal which may be changed or altered at pleasure; to be capable in its corporate name or in the name of a trustee chosen by the Board of Directors, to take, purchase, lease, hold and dispose of real or personal property for carrying into effect the purpose of the corporation; to make all necessary rules and regulations concerning the hazards incurred, the premium rates to be used and adjustment and payment of losses; to fix the compensation of its directors and officers and require bond for the faithful performance of their duties; to exercise all such other powers as may be necessary to effect the object of such corporation, subject to the restrictions herein provided; to make or amend by-laws not inconsistent with law or the provisions of the Articles of Association, which by-laws shall fix the date and place of the annual meeting of members, shall designate the number of directors, which shall be not less than five, define the duties of the officers and fix the term of office of the directors and officers of such company, and make all further necessary provisions concerning the conduct of its business or affairs. § 13. Every policyholder shall be a member of the corporation and shall be entitled to one or more votes, based upon the insurance in force, the number of policies held or the amount of premium paid, as may be provided in the by-laws, and such members may vote in person or by proxy. . . . . . § 14. The by-laws shall provide for a cash premium and may limit the contingent liability of the members to an amount not less than one or more than ten times the cash premium expressed in the policy. The maximum contingent liability of the holder of each policy shall be plainly stated as a part of each policy. The by-laws may also provide for policies to be issued for cash premiums without contingent liability of policyholders, as provided in section 15. § 15. No such corporation shall issue any insurance policy for a cash premium and without contingent liability until and unless it possesses surplus of at least one hundred thousand dollars ($100,000.00) and not less in amount than the capital required of domestic stock insur. ance companies transacting the same kind of insurance.
§ 16. No such corporation shall invest any of its assets except in accordance with the laws of this State relating to the investment of funds of domestic stock insurance companies doing a similar business. § 17. Such corporation shall maintain unearned premium and other reserves, separately for each kind of insurance, upon such basis as is required of domestic stock companies writing the same kind of insurance: Provided, however, that any reserve for losses or claims based upon the premium income shall be computed upon the net premium income, after deducting any so-called dividend or premium returned or credited to the assured: Provided, further, that where a State insurance fund is operated for insuring any of the kinds of insurance enumerated under section 7, then the reserves required of any mutual corporation for such kinds of insurance shall not be greater than the reserves required of the State fund. § 18. Such corporation not possessed of assets at least equal to the unearned premium reserve and other liabilities, shall make an assessment upon its members liable to assessment, to provide for such deficiency, such assessment to be against each such member in proportion to such liability as may be expressed in his policy: Provided, the Insurance Superintendent may, by written order, relieve the corporation from an assessment or other proceedings to restore such assets during the time fixed in such order. § 19. Any director, officer or member of any such corporation, or any other person, may advance to such corporation any sum or sums of money necessary for the purpose of its business, or to enable it to comply with any of the requirements of the law, and such moneys and such interest thereon as may have been agreed upon, not exceeding ten per cent per annum, shall not be a liability or claim against the corporation or any of its assets, except as herein provided, and shall be repaid only out of the surplus earnings of such corporation. No commission or promotion expenses shall be paid in connection with the advance of any such money to the corporation, and the amount of such advance shall be reported in each annual statement. $ 20. The president or vice president, together with the secretary of each corporation organized or authorized to do business under this Act, shall annually on or before the 28th day of February of each year, prepare under oath, if required, and file with the Insurance Superintendent a full, true and complete statement of the condition of the company on the 31st day of December of the preceding year, in such form as shall be prescribed by said Insurance Superintendent. § 21. When by the laws of any other State, district or territory any corporation is authorized to engage in the insurance business on the mutual plan in accordance with the laws of the State, district or territory in which the corporation is organized, it shall be admitted to do the kinds of insurance business authorized by this Act when it shall be solvent under this Act and shall have complied with the following requirements, to-wit: 1. Filed with the Insurance Superintendent a duly certified copy of the charter and articles of association. doll 2. Paid the Insurance Superintendent a fee of twenty-five ($25,00) OILars.
3. Filed with the Insurance Superintendent a copy of its by-laws certified to by its secretary. 4. Appointed the Insurance Superintendent as a person upon whom a process may be served, which when so served shall be of the same force and effect, as if served upon the company. This authority shall continue in force so long as liability remains outstanding in this State. 5. Filed a certificate of the Insurance Superintendent that said corporation is organized and authorized to do such business in the State, district or territory in which it is incorporated. 6. Filed a financial statement under oath, in such form as may be required and have complied with other provisions of law applicable to the filing of papers and the audit and inspection of stock companies transacting the same kind of insurance. Upon compliance by any foreign corporation with the provisions of this section, its application to do business in this State, shall be approved by the Insurance Superintendent and such officer shall issue to such corporation a permit, in writing, authorizing it to do business within the State. When legal process against any such corporation is served upon said Insurance Superintendent, he shall immediately notify the company of such service by registered letter, prepaid and directed to its home office, or to such officer or authorized representative as the company may direct, and enclose copy of the process served on him. The plaintiff in such process so served shall pay the Insurance Superintendent at the time of such service a fee of $2.00, which shall be recovered by him as a part of the taxable costs if he prevails in the suit. The insurance superintendent shall keep a record of all processes served upon him, which record shall show the day and hour when such service was made. § 22. Any mutual insurance company heretofore organized and doing business pursuant to the laws of the State of Illinois, may without reorganization avail itself of and be governed by all the provisions of this Act, by the adoption by its board of directors of a resolution accepting the provisions of this Act. A copy of such a resolution duly certified by the president and the secretary of such company, shall be filed with the Insurance Superintendent of the State of Illinois. Nothing in this Act shall affect any contract of insurance heretofore made. § 23. Nothing in this Act shall be construed as repealing any existing statute or provision of law not herein expressly repealed, and nothing herein contained shall repeal or amend any existing law in so far as same relates to reciprocal insurers or inter-insurers. $ 24. That an Act entitled, “An Act to provide for the organization and management of mutual corporations for the purpose of furnishing insurance and indemnity against loss or liability to members in consequence of accidents or casualties to any employee, person or persons, occurring in or connected with the business of members thereof; and to control such corporation of this State and other States doing business in this State and providing and fixing the punishment for violation of the provisions thereof,” approved May 16, 1905, in force July 1, 1905, as amended, except section 131%, thereof; and all provisions of an Act entitled, “An Act to incorporate and govern fire, marine and inland navigation insurance companies doing business in the State of Illinois.” approved and in force May 11, 1869, as amended, in conflict herewith;