160

LAWS OF THE

CHAPTER 156.

SENATE BILL No. 369.

AN ACT to amend section 1, chapter 162 of the laws of 1912, so as to permit corporations to farm part of their cut-over pine lands.

Cut over pine lands, corporations may farm, laws 1912 chapter 162, sec. 1, amends (Hemingway code 4117.)

SECTION 1. Be it enacted by the Legislature of the State of Mississippi, That section 1, chapter 162 of the laws of 1912 be, and it is hereby amended so as to read as follows:

"That no corporation, whether chartered under the laws of the state of Mississippi, or under the laws of any other state of the United States, or of any foreign country, shall acquire title, in fee, or for a term of years, to, or own land for agricultural purposes, in this state outside of an incorporated city, town or village, nor shall any corporation buy, acquire, trade or deal in land situated in any incorporated town or city for agricultural purposes, except as hereinafter provided, and no charter or act of incorporation shall be granted by this state to any corporation or company for any of the above purposes, except as herein provided. Provided, however, that this act shall not prevent a corporation chartered or having the right to do business in this state acquiring the land sufficient to do business for which it was chartered, except that in no case shall a corporation buy or acquire farm land for agricultural purposes, provided, that a corporation may be lessor or lessee for not more than twenty years of as much as 10,000 acres of land to be used for agricultural purposes, but any such lease contract shall not be renewed or extended so as to authorize the holding of said lands for a longer period than above stipulated, and provided further, that corporations now existing or hereinafter created under the laws of the state of Mississippi may own or acquire subject to present statutory limitations, improve, develop, and cultivate wild and uncultivated cut-over pine lands and sell the same when improved, to any person other than a corporation, provided that such corporations may not so improve and cultivate at any time, more than twenty per cent (20%) of their holding of such lands in any one county in the state of Mississippi, unless said twenty per cent (20%) shall be less than one thousand acres when, in such event, said corporation may improve and cultivate as much as fifty per cent, (50%) thereof, and provided further, that when sales shall have been made of such or any part of such improved and cultivated lands said corporations may acquire, improve and thereafter cultivate other wild and uncultivated lands not exceeding the maximum herein specified.

Sec. 2. That this act take effect and be in force from and after its passage.

Approved March 27, 1918.

STATE OF MISSISSIPPI

CHAPTER 157.

SENATE BILL NO. 279.

161

AN ACT to provide for the organization or admission and the regulation and taxation of incorporated mutual insurance companies, other than life, and to repeal chapter 171 of laws of 1912.

Mutual insurance companies, how may be formed.

SECTION 1. Be it enacted by the Legislature of the State of Mississippi, That any number of persons, not less than twenty, a majority of whom shall be bona fide residents of this state, by complying with the provisions of this chapter, may become together with others, who may hereafter be associated with them or their successors, a body corporate, for the purpose of carrying on the business of mutual insurance as herein provided.

Sec. 2. Any persons proposing to form any such company shall subscribe and acknowledge articles of association specifying:

(a) The name, the purpose for which formed, and the location of its principal or home office, which shall be within this state.

(b) The name and addresses of those composing the board of directors in which the management shall be vested until the first meeting of the members;

(c) The names and places of residence of the incorporators.

Name must contain the word "mutual".

Sec. 3. No name shall be adopted by such company which does not contain the word "mutual" or which is so similar to any name already in use by any such existing corporation, company or association, organized or doing business in the United States, as to be confusing or misleading.

Insurance commissioner to approve articles.

Sec. 4. Such articles of association shall be submitted to the commissioner of insurance, herein designated "commissioner" and if prepared in accordance with this chapter, he shall approve and file the same in his office.

Legal existence begins when-by-laws-succession, etc.

Sec. 5. The company shall have legal existance, from the approval and filing of such articles in the office of the commissioner. The board of directors named in such articles may thereupon adopt by-laws and proceed to transact the business of such company; provided, that no insurance shall be put into force until the company has been licensed to transact insurance as provided by this chapter. The company shall have succession for the time limited in its articles of association, but never exceeding fifty years; may determine the manner of calling and conducting meetings;

the mode of voting by proxy, may elect all necessary officers, and prescribe the duties and tenure of officers; may sue and be sued and prosecute and be prosecuted to judgment and satisfaction, before any court, may have a corporate seal; may contract and be contracted with within the limits of its corporate powers; may buy, hold and sell real estate and personal property; may borrow money and secure the payment of same by mortgage or otherwise.

Kinds of insurance authorized.

Sec. 6. Any company organized under the provisions of this chapter is empowered and authorized to make contracts of insurance or to reinsure or accept reinsurance on any portion thereof, to the extent specified in its articles of association, for the kinds of insurance following:

1. Fire insurance. Against loss or damage to property and loss of use and occupancy by fire, lightning, hail, tempest, flood, earthquake, frost or snow, explosion, fire ensuing, and explosion, no fire ensuing, except explosion by steam boilers or fly-wheel; 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 to such sprinklers, pumps, other apparatus, water pipes, plumbing or fixtures; against the risks of inland transportation and navigation; upon automobiles, whether stationery or operated under their own power, against loss or damage by any of the causes or risks specified in this sub-section, including also transportation, 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 risk of bodily injury to the person.

2. Liability insurance. Against loss, expense or liability by risk of bodily injury to death by accident, disability, sickness or disease suffered by others for which the insured may be liable or have assumed liability, including workmen's compensation.

3. Disability insurance.-Against bodily injury or death by accident and disability by sickness.

4. Automobile insurance.-Against any or all loss, expense, and liability resulting from the ownership, maintenance or use of any automobile or other vehicle, provided no policies shall be issued under this sub-section against the hazard of fire alone.

5. Steam boiler insurance. - Against loss of liability to persons or property resulting from explosions 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 inspection and issue certificates of inspection thereon.

STATE OF MISSISSIPPI

163

6. Use and occupancy insurance. Against loss from interruption of trade or business which may be the result of any accident or casualty.

7. Miscellaneous insurance. - Against loss or damage by any hazard upon any risk not provided for in this section, which is not prohibited by statute or at common law from being the subject of insurance, excepting life insurance.

License-conditions under which to be granted.

Sec. 7. No such company shall issue policies or transact any business of insurance unless it shall hold a license from the commissioner authorizing the transaction of such business. Which license shall not be issued until and unless the company shall comply with the following conditions:

(a). It shall hold bona fide applications for insurance upon which it shall issue simultaneously, or it shall have in force, at least twenty policies to at least twenty members for the same kind of insurance upon not less than two hundred separate risks, each within the maximum single risk described herein.

(b) The "maximum single risk" shall not exceed twenty per cent of the admitted assets or three times the average risk or one per cent of the insurance in force, which ever is the greater, any reinsurance taking effect simultaneously with the policy being deducted in determining such maximum single risk.

(c) It shall have collected a premium upon each application which premium shall be held in cash or securities in which insurance companies are authorized to invest and shall be equal, in case of fire insurance to not less than twice the maximum single risk assumed subject to one fire nor less than ten thousand dollars, and in any other kind of insurance to no less than five times the maximum single risk assumed, and in case of workmen's compensation insurance to not less than fifty thousand dollars.

(d) For the purpose of transacting employer's liability and workmen's compensation insurance, the applications shall cover not less than one thousand five hundred employees, each such employee being considered a separate risk for determining the maximum single risk.

Membership-corporations and associations may hold policies.

Sec. 8. Any public or private corporation board or association in this state or elsewhere may make application, enter into agreements for and hold policies in any such mutual insurance company. 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 in

surance by reason of acting in such representative capacity. The right of any corporation organized under the laws of this state to participate as a member of any such mutual insurance company is hereby declared to be incidental to the purpose for which such corporation is organized and as much granted as the rights and powers expressly conferred.

Voting of members-on what based.

Sec. 9. Every member of the company shall be entitled to one vote, or to a number of votes based upon the insurance in force, the number of policies held, or the amount of premiums paid, as may be provided in the by-laws.

Premiums-restrictions as to.

Sec. 10. The maximum premium payable by any member shall be expressed in the policy or in the application for the insurance. Such maximum premium may be a cash premium and an additional contingent premium not less than the cash premium, or may be solely a cash premium. No policy shall be issued for a cash premium without an additional contingent premium unless the company has a surplus which is not less in amount than the capital stock required of domestic stock insurance companies transacting the same kind of insurance.

Investment of assets.

Sec. 11. No such company shall invest any of its assets except in accordance with the laws of this state relating to the investment of the assets of domestic stock companies transacting the same kind of insurance.

Reserves and unearned premiums.

Sec. 12. Such company shall maintain unearned premium and other reserves separately for each kind of insurance, upon the same basis as that required of domestic stock insurance companies transacting the same kind of insurance; provided, that any reserve for losses or claims based upon the premium income shall be computed upon the net premium after deducting any socalled dividend or premium returned or credited to the member.

Deficiency in assets-assessment for.

Sec. 13. Such company 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 expressed in his policy; provided, the commissioner may, by written order, relieve the company from an assessment or other proceedings to restore such assets during the time fixed in such order.