five, residing in any county in this State, who collectively shall own property of not less than fifty thousand dollars ($50,000) in value, which they desire to have insured, may form an incorporated company for the purpose of mutual insurance against loss or damage by fire or lightning.

*66, Declaration—copy of charter. 2. Such persons shal! file with the auditor of public accounts a declaration of their intention to form a company for the purposes expressed in the preceding section, which declaration shall be signed by all the corporators and shall contain a copy of the charter proposed to be adopted by them. Such charter shall set forth the name of the corporation, which shall embrace the name of the city, town er village in which the business oflice of such company is to be located and the intended duration of the company, and if it is found conformable to this act and not inconsistent with the laws and constitution of this State, the auditor shall thereupon deliver to such persons a certified copy of the charter, which, on being filed in the office of the county clerk of the county where the office of such company is to be located, shall be their authority to organize and commence business. Such certified copy of the charter may be used in evidence for or against said company, with the same effect as the original: Provided, that such charter so obtained shall be subject to control of, and modification by the general assembly. *67. Directors-election-voting. 3. The number of directors shall be not less than nine, and not more than fifteen, a majority of whom shall constitute a quorum to do business, be elected from the corporators by ballot, of whom one-third shall be elected for one year, one-third for two years and one-third for three years, and until their successors are elected and qualified. All subsequent elections, except to fill vacancies, one-third of said board of directors shall be elected for three years; said election shall be held at the annual meeting of the company, which shall be on the first Tuesday after the first Monday in January in each year: Provided, that any company now incorporated and doing business under this act may at any time so change their mode of electing their board of directors at an annual meeting as to be in conformity with this act. In the election of the first board of directors each corporator shall be entitled to one vote. At every subsequent election every person insured shall be entitled to as many votes as there are directors to be elected and an equal additional number for every risk or risks he holds in the company and may cast the same in person or by proxy, distributing them among the same or a less number of directors to be elected, or cumulating them upon one candidate as he shall think fit. [Amendment, June 6, 1887. L. 1887, p. 196. *68. Officers. § 4. The directors shall elect from their number a president and a treasurer, and shall also elect a secretary, who may or may not be a member of the company, all of whom shall hold their office for one year, and until their successors are elected and qualified.

*69. Bonds of treasurer and secretary. § 5. The treasurer and secretary shall each give bonds to the company for the faithful performance of their duties, in such amounts as shall be prescribed by the board of directors. *70. Powers of corporation. § 6. Such corporation and its directors shall possess the usual powers and be subject to the usual duties of corporations and directors thereof, and may make such by-laws, not inconsistent with the constitution or laws of this State, as may be deemed necessary for the management of its affairs in accordance with the provisions of this act; also to prescribe the duties of its officers and fix their compensation, and to alter and amend its by-laws when necessary.

*71. Qualification for membership. 7. Any person owning property in the county for which any such company is formed, if he resides in the county in which such company is located, may become a member of such company by insuring therein, and shall be entitled to all the rights and privileges appertaining thereto, but no person not residing in the county in which the company is formed shall become a director of such company

*72. Property insured-policies-duration-amountpayment. 8. Such company may issue policies only on detached

dwellings, school houses, churches, barns (except livery, boarding and hotel barns), and other farm buildings and such property as may properly be contained therein; also other property on the premises and owned by the insured, hay and grain in the stack, and live stock on the premises of the insured and anywhere in the county, for any time not exceeding five years, and not to extend beyond the limited duration of the charter, and for an amount not to exceed four thousand All persons so insured shall give five hundred dollars ($4,500) on any one risk. their obligation to the company binding themselves, their heirs and assigns to pay their pro rata share to the company of the necessary expenses and all losses by fire or lightning which may be sustained by any member thereof during the time for which their respective policies are written; and they shall also, at the time of effecting the insurance, pay such percentage in cash, and such other charges as may be required by the rules or by-laws of the company. [Amendment, June 6, 1887. L. 1887, p. 196.

*73. Classification of property. 9. Any such company may classify the property insured therein at the time of issuing policies thereon, under different rates, corresponding as nearly as may be to the greater or less risk from fire or lightning and loss which may attach to each several building insured.

*74. Location of property insured. § 10. No such company shall insure any property beyond the limits of the county comprised in the formation of the company, nor shall they insure any property within the limits of any city containing over twelve thousand (12,000) inhabitants at the time of the organization of such company.

*75. Proof of loss-reference - award. § 11. Every member of such company who may sustain loss or damage by fire or lightning shall immediately notify the president of such company, or, in his absence, the secretary thereof, stating the amount of damage or loss claimed, and if not more than If the claim for two hundred dollars ($200), then the president and secretary shall proceed to ascertain the amount of such loss or damage and adjust the same. damage or loss shall be an amount greater than two hundred dollars ($200), then the president of such company, or in case of his absence, the secretary thereof shall forthwith convene the directors of such company, whose duty it shall be when convened, to appoint a committee of not less than three disinterested members of such company to ascertain the amount of such damage or loss. If, in either case, there is a failure of the parties to agree upon the amount of such damage or loss, the claimant may appeal to the judge of the county court of the county in which such company is located, whose duty it shall be to appoint three disinterested persons as a committee of reference, who shall have full authority to examine witness's and to determine all matters in dispute, and shall make their award in writing to the president of such company, and such award shall be final. The pay of said committee shall be two dollars ($2) per day for each day's service so rendered, and four cents for each mile necessarily traversed in the discharge of their duties, which shall be paid by the claimant, unless the award of said committee shall exceed the sum offered by the company in liquidation of such loss or damage, in which case said expenses shall be paid by the company. [As amended June 6, 1887. L. 1887, p 197.

*76. Assessment to pay loss. § 12. Whenever the amount of any loss shall have been ascertained, which exceeds in amount the cash funds of the company, the president shall convene the directors of said company, who shall make an assessment upon all the property to the amount for which each several piece of property is insured, taken in connection with the rate of premium under which it may be classified.

*77. Notice of assessment. § 13. It shall be the duty of the president whenever such assessment shall have been made, to immediately notify every person composing such company, personally, by an agent or by letter sent to his usual post-office address, of the amount of such loss, and the sum due from him as his share thereof, and of the time when and to whom such payment is to be made; but such time shall not be less than thirty nor more than ninety days from the date of such notice.

actions against *78. Suits to recover assessments — company. 14. Suits at law may be brought against any member of such company who shall neglect or refuse to pay any assessment made upon him by the provisions of this act: and the directors of any conipany so formed, who shall willfully refuse or neglect to perform the duties imposed upon them by the provisions of this act, shall be Hable in

their individual capacity to the person sustaining such loss. Suits at law may also be brought and maintained against any such company, by members thereof, for losses sustained, if payment is withheld after such losses have become due.

*79. Annual statement. 15. It shall be the duty of the secretary to prepare an annual statement, showing the condition of such company on the thirty-first day of December and present the same at the annual meeting.

*80. Withdrawal from company – notice – cancelation of policy. 16. Any member of such company may withdraw therefrom by surrendering his policy for cancelation, at any time while the company continues the business for which it was organized, by giving notice in writing to the secretary thereof and paying his share of all claims then existing against said company: Provided, that by the withdrawal of any such member, the number of the members remaining in the company shall not be reduced below the original number of corporators, or that the assets will not be reduced below the amount at the time of the organization: Provided, further, that the company shall have power to cancel or terminate any policy by giving the insured notice to that effect.

*81. Annual statement to auditor. 17. It shall be the duty of the president and secretary of every such company on the first day of January of each year, or within one month thereafter, to prepare under their own oath and transmit to the auditor of public accounts, a statement of the condition of the company on the thirty-first day of December then next preceding in such form as the auditor may direct. If, upon examination, he is of the opinion that such company is doing business correctly, in accordance with the provisions of this act, he shall thereupon furnish the company his certificate, which shall be deemed authority to continue business the ensuing year; subject, however, to subsequent provisions of this act. For such examination and certificate the company shall pay one dollar. Each company shall pay, at the time of organization, ten dollars ($10.00) for the auditor's services, all of which shall be paid into the State treasury and applied to the insurance fund.

*82. Proceeding to dissolve company. 18. Any such company may be proceeded against and dissolved in the manner and upon the same conditions as provided in case of other insurance companies incorporated in this State.

*83. Township insurance companies may accept benefits. 19. Any township or district insurance company formed under an act entitled An act to revise the law in relation to township insurance companies," approved March 24, 1874, may with the written consent of two-thirds of the members, accept the provisions of this act, and thereupon shall be governed by its provisions. Before any such company shall be entitled to the benefits thereof, the directors or a majority of them shall file with the auditor of public accounts the declaration pro vided for in section two of this act.

TOWNSHIP COMPANIES.

AN ACT to revise the law in relation to township insurance companies. proved March 24, 1874. In force July 1, 1874.]

[Ap

84. Who may form. SEC. 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly, That any number of persons, not less than twenty-five, residing in any congressional or political township, or in one or more adjoining congressional or political townships in this State, not exceeding six in number, and without regard to county lines who collectively shall own property of not less than fifty thousand dollars in value, which they desire to have insured, may form an incorporated company for the purpose of mutual insurance against loss or damage by fire or lightning.

85. How formed. § 2. Such persons shall file with the auditor of public accounts a declaration of their intention to form a company for the purposes expressed in the preceding section, which declaration shall be signed by all the corporators and shall contain a copy of the charter proposed to be adopted by them. Such charter shall set forth the name of the corporation, which shall embrace the name of the township in which the business office of such company is to be located and the intended duration of the company, and if it is found conformable to this act and not inconsistent with the laws and constitution of this State, the auditor shall thereupon deliver to such persons a certified copy of the charter, which, on being filed in the office of the county clerk of the county where the office of such company is to be located, shall be their authority to organize and commence business. Such certified copy of the charter may be used in evidence for or against said company, with the same effect as the original: Provided, that such charter so

obtained shall be subject to control of and modification by the [*610]

general assembly.

*86. Directors-election of. § 3. The number of directors shall not be less than nine nor more than fifteen, a majority of whom shall con stitute a quorum to do business, to be elected from the corporators by ballot, of whom one-third shall be elected for one year, one-third for two years and one third for three years, and until their successors are elected and qualified. At all subsequent elections, except to fill vacancies, one-third of said board of directors shall be elected for three years, said election to be held at the annual meeting of the company, which shall be on the first Tuesday after the first Monday in January in each year: Provided, that any company now incorporated and doing business under this act may at any time so change their mode of electing their board of directors at an annual meeting as to be in conformity with this act. In the election of the first board of directors each corporator shall be entitled to one vote. At every subsequent election every person insured shall be entitled to as many votes as there are directors to be elected and an equal additional number for each five hundred dollars that he may be insured in the company and may cast the same in person or by proxy, distributing them among the same or a less number of directors to be elected, or cumulating them upon one candidate as he may think fit. [As amended May 10, 1887. L. 1887, p. 201. 87. President, treasurer and secretary. § 4. The directors shall elect from their number a president and a treasurer, and shall also elect a secretary, who may or may not be a member of the company, all of whom shall hold their office for one year, and until their successors are elected and qualified, 88. Bonds. $5. The treasurer and secretary shall each give bonds to the company for the faithful performance of their duties, in such amounts as shall be prescribed by the board of directors.

89. Corporate powers. § 6. Such corporation and its directors shall possess the usual powers and be subject to the usual duties of corporations and directors thereof, and may make such by-laws, not inconsistent with the constitution or laws of this State, as may be deemed necessary for the management of its affairs, in accordance with the provisions of this act; also to prescribe the duties of its officers and fix their compensation, and to alter and amend its by-laws when necessary.

90. Members. § 7. Any person owning property in the district for which any such company is formed, may become a member of such company by insuring therein, and shall be entitled to all the rights and privileges appertaining thereto; but a person not residing within the district for which the company is formed shall not become a director of such company. [As amended by act approved June 18, 1883. In force July 1, 1883. L. 1883, p. 104.

*91. Manner of insuring. § 8. Such company may issue policies only on detached dwellings, barns (except livery, boarding and hotel barns), and other farm buildings, school houses and churches and such property as may be properly contained therein, also other property on the premises and owned by the insured, also live stock, hay and grain in the stack on the premises of the insured and anywhere in the territory of the company, for any time not exceeding five years, and not to extend beyond the limited duration of the charter, and for an amount not to exceed four thousand five hundred dollars on any one risk. All persons so insured shall give their obligation to the company, binding themselves, their heirs and assigns, to pay their pro rata share to the company of the necessary expenses and of all losses by fire or lightning which may be sustained by any member thereof, during the time for which their respective policies are written; and they shall, also, at the time of effecting the insurance, pay such percentage in cash, and such other charge as may be required by the rules or by-laws of the company. [As amended May 10, 1887. L. 1887, p. 201.

92. Risks classified. § 9. Any such company may classify the property insured therein at the time of issuing policies thereon, under different rates, corresponding as nearly as may be to the greater or less risk from fire or lightning, and loss, which may attach to each several building insured.

93. When company not to insure. § 10. No such company shall insure any property beyond the limits of the district comprised in the formation of the company, nor shall they insure any property within the limits of any city containing over twelve thousand inhabitants at the time of the organization of such company.

94. Notice of loss adjustment-expense. § 11. Every member of such company who may sustain loss or damage by [*611] fire or lightning, shall immediately notify the president of such company, or in his absence, the secretary thereof, stating the amount of damages or loss claimed, and if not more than two hundred dollars ($200), then the president and secretary shall proceed to ascertain the amount of such loss or damage and adjust the same. If the claim for damage or loss shall be an amount greater than two hundred dollars ($200), then the president of such company, or in case of his absence the secretary