INSURANCE LEGISLATION. 



445 



published and mailed a notice to the remain- 

 ing creditors of such insolvent company or re- 

 ceiver to present their claims for payment 

 within three months from the date of said 

 notice, or that the same be thereafter forever 

 barred, a copy of which notice shall be pub- 

 lished in the city of Albany in the newspaper 

 designated for the publication of certain public 

 notices pursuant to chapter 262, laws of 1885, 

 and in a newspaper published in said county 

 once in each week for live successive weeks, 

 and a copy of which notice shall be mailed, 

 postage paid, on the day of the date thereof, to 

 each of said remaining creditors, to their last 

 known address. Upon due proof of the publi- 

 cation and mailing of such notices as aforesaid, 

 and the payment of all claims so presented, a 

 Justice of the Supreme Court, at a special term 

 thereof held in and for said county, upon mo- 

 tion of the Attorney-General, or the receiver 

 or any of his bondsmen, may grant an order 

 discharging such receiver and his bondsmen 

 from further liability. The fourth provides for 

 a uniform contract or policy of fire insurance 

 to be made and issued in this State by all in- 

 surance companies taking risks on property in 

 this State. This law makes it possible to create 

 a standard policy, which shall do justice to all 

 of the many-sided interests touched by insur- 

 ance, as the New York Board is intrusted with 

 its original preparation and the Legislature can 

 revise it if it should at any time need revision. 

 The fifth allows any town insurance company, 

 acting under the laws of 1857 and 1881, to 

 choose not fewer than five nor more than nine 

 directors to be elected annually, and to hold 

 office not to exceed three years. The sixth 

 provides for a codification of several laws ; it 

 amends the law of 1870, chapter 287, so as to 

 conform with chapter 362 of the laws of 1880 ; 

 it was introduced at the request of the New 

 York State Central Organization of Co-opera- 

 tive Fire Insurance, and refers more especial- 

 ly to the making of reports at a particular 

 time and to the filing of reports with the Secre- 

 tary of State. The seventh provides that the 

 capital stock of any corporation organized since 

 May 15, 1878, as a limited liability company, 

 under an act entitled " An act to provide for 

 the organization and regulation of certain busi- 

 ness corporations," passed June 21, 1875, may 

 be paid in six months from the passage of this 

 act, or may be reduced by proceedings author- 

 ized by law to be taken within such time. 

 Nothing in this act contained shall be con- 

 strued in anywise to relieve any such corpora- 

 tion or the directors or stockholders thereof 

 from liability to creditors for debts contracted 

 before the passage of this act by reason of any 

 failure to pay in its capital or any part thereof 

 within the time prescribed for the making of 

 such payments by the said act, or to make and 

 file any certificates of such payment. The 

 eighth was the cause of considerable discussion. 

 It amends the laws relating to the payment of 

 premiums to the fire department of cities and 



villages by companies not organized under the 

 laws of this State. The significant amendment 

 allows any company licensed to do business in 

 this State to transact business in any place 

 where it has no agent, if it will give a bond to 

 the insurance department that it will pay the 

 two-per-cent. premium required by law. It is 

 also provided that for the purposes of this act 

 the limits of any incorporated village in this 

 State shall be determined by the town board of 

 the town in which such village is situated. The 

 ninth provides for the incorporation of credit 

 guarantee and indemnity companies for all parts 

 of the State except New York and Brooklyn. 

 The Comptroller was struck out of the bill, and 

 the Superintendent of Insurance was added, as 

 the officer with whom the business should be 

 done, and stringent provisions were enacted in 

 regard to sending reports to him. It was fur- 

 ther provided that at least 25 per cent, of the 

 capital stock of such company shall be paid in 

 before it proceeds to business ; and that no such 

 company shall begin business before it has 

 deposited at least $100,000 with the Superin- 

 tendent of Insurance. The tenth amends the 

 law of 1880 relative to the examinations and 

 reports of fire and inland companies, so that 

 where a note is taken for a premium the com- 

 pany may deduct the expense of obtaining the 

 risk and issuing the policy. The eleventh pro- 

 vides for a tax of one half of one per cent, on 

 the gross premiums received by all fire and 

 marine companies doing business in this State 

 whether organized in this State on not. The 

 payment is to be made annually by the 18th of 

 August to the State Treasurer, sworn returns 

 in regard to the business being sent to the 

 Comptroller. The tax in each case shall be 

 paid up to the 30th day of June preceding. 



Aside from these laws, a new law, developed 

 from the investigation of the Broadway rail- 

 road, provides for the appointment of receivers 

 for corporations whose charters have been an- 

 nulled. A law of very great general interest 

 was passed providing that every receiver shall 

 be allowed to receive, as compensation for his 

 services as such receiver, 5 per cent, for the 

 first $100,000 received and paid out, and 2 per 

 cent, on all sums received and paid out in ex- 

 cess of the said $100,000 ; but no receiver shall 

 be allowed or shall receive, from such per- 

 centage or otherwise, for his said services for 

 any one year, any greater sum or compensation 

 than $12,000, nor for any period less than one 

 year, more than at the rate of $12,000 a year, 

 provided that where more than one receiver 

 shall be appointed, the compensation herein 

 provided shall be divided between such re- 

 ceivers. This is an amendment to the receiver- 

 ship act of 1 878. 



Aside from the State of New York, the most 

 important insurance laws of 1886 were passed 

 by the State of Connecticut. The fees of the 

 Insurance Commissioner were fixed in that 

 State. Another law provides that no insurance 

 company shall cancel a fire policy without giv- 



