CHAPTER 34.

CORPORATIONS-HYDRAULIC COMPANIES.

Section numbers to notes refer to the Revised Statutes of 1914 and sections herein. ARTICLE 2.-APPROPRIATION OF LAND.

SEC.

4595. Survey, appropriation, electricity.

4595. Survey, appropriation, electricity.

Acts 1907, ch. 172, relating to the formation of corporations to furnish electricity for light and power, and conferring the right to condemn lands, is different from section 4595, and is not invalid under Const., art. 1, section 23. Miller v. Southern Indiana Power Co., 184 Ind. 370, 111 N. E. 308.

CHAPTER 35.

CORPORATIONS-INSURANCE.

Section numbers to notes refer to the Revised Statutes of 1914 and sections herein.

4600b. Powers, rights and duties of 4600d. Date act in force. commissioner.

[Acts 1919, p. 109. In force September 30, 1920.]

4600a. Commissioner of insurance, bond, salary.-1. There is hereby created an insurance department, at the head of which shall be a commissioner of insurance who shall be appointed by the governor. Upon the taking effect of this act, the governor shall appoint a commissioner of insurance who shall serve for a term of two (2) years, and thereafter the commissioner shall be appointed for a term of four (4) years, from the date of his commission and until his successor is appointed and qualified. The governor shall fill any vacancy occurring for the unexpired term. The commissioner of insurance may be removed by the governor for cause only and after reasonable notice and a hearing. The commissioner shall receive a salary of four thousand dollars ($4,000) a year, and shall take the oath of office and shall give bond in the sum of fifty thousand dollars ($50,000) with surety to be approved by the governor for the faithful performance of his duties. The commissioner shall not be interested while in office in any insurance company except as a policy holder. The commissioner of insurance shall appoint a deputy, an actuary, a securities clerk, and, with the approval of the governor, such other clerks and assistants as may be necessary. The salary of the deputy, actuary, securities clerk and assistants shall be fixed by the commissioner of insurance with the approval of the governor. The actuary shall either be a member of an actuarial society holding annual conventions and maintaining a bona fide organization or shall pass an examination

satisfactory to a commission of three (3) actuaries to be appointed by the governor for that purpose, and who shall be members of such actuarial society or societies. In the absence of the commissioner of insurance or his inability for any cause to discharge the powers and duties of his office, such powers and duties shall devolve upon the deputy and in the absence of both the commissioner of insurance and the deputy or their inability for any cause to discharge the powers and duties of the office, such powers and duties shall devolve upon the actuary. The commissioner of insurance shall not remove either the deputy or the actuary, or the securities clerk, except for cause and after reasonable notice and hearing before the governor. The securities clerk shall give bond in the sum of twenty-five thousand dollars ($25,000) with surety to the approval of the governor, for the faithful performance of his duties.

4600b. Powers, rights and duties of commissioner.-2. All rights, powers and duties conferred by law upon the auditor of state respecting the business of insurance are hereby continued in full force and are conferred upon the commissioner of insurance, who shall have all such rights, powers and duties with respect to the business of insurance.

4600c. Report of commissioner to governor.-3. The commissioner of insurance shall report on or before the first day of December of each year to the governor his official transactions for the last preceding calendar year, and shall include in such report, abstracts of the annual statements of the several insurance companies and associations and an exhibit of the financial condition and business transactions of the said companies as disclosed by official examinations of the same or by their annual statements. He shall also include therein a statement of the receipts and expenditures of the department for the preceding year, and such other information and recommendations relative to insurance and the insurance laws of the state as he shall deem proper.

4600d. Date act in force.-4. This act shall be in full force and effect on and after September 30th, 1920.

Section 5 of the above act repeals all laws and parts of laws in conflict therewith. Section 6 of the above act provides that the act shall be known as the AlldredgeAbrams act.

4622a. Life policies, contents, Act of 1909.

An incontestable clause in a life policy inserted in compliance with this section should be construed in the light of such statute and the time computed from the date of the policy. Ebner v. Ohio State Life Ins. Co., App. 121 N. E. 315.

In view of the provision of this section, subdivision 10, a letter by insured stating that he elected to pay no further premiums and desired a payment of cash surrender value without actual surrender of the policy was insufficient. Reserve Loan Life Ins. Co. v. Sumner, App. 123 N. E. 443.

4622g. Fire policy, proof of loss.

Failure of the insured to submit an affidavit showing that the proof of loss could not be made more specific, within ten days from his receipt of the insurer's objections thereto, was held to be the omission of only a technical detail, and not subject to objection. Continental Ins. Co. v. Bair, 65 App. 502, 114 N. E. 763, 116 N. E. 752.

This section contemplates a bona fide claim that the proofs are defective and a definite statement of omitted facts in the notice of the defects in proof. Continental Ins. Co. v. Bair, 65 App. 502, 114 N. E. 763, 116 N. E. 752.

Proof that an insured house was totally destroyed by fire on a certain date, that the loss amounted to $700, that the insured owned the property in fee simple which was encumbered by mortgages, and giving the name of each mortgagee and the amount of his claim, was held to furnish a delayed schedule of the claim of the character and extent of the interest of the other parties, and to substantially comply with this section. Continental Ins. Co. v. Bair,

65 App. 502, 114 N. E. 763, 116 N. E. 752.

Where, before service of the formal notice of rescission, the insurer denied liability under the policy, and so informed the insured, and stated that the position of the insurer could not be changed by modification of the proofs or by affidavit or statement made in relation thereto, no further proofs or statements by the assured are required by this section. Continental Ins. Co. v. Bair, 65 App. 502, 114 N. E. 763, 116 N. E. 752.

The provision in this section that if insured and insurer fail within ten days to agree upon amount of loss either may demand an appraisal becomes a part of the policy. Commercial Union Assur. Co. v. Schumaker, App. 119 N. E. 532.

The amount of loss admitted by insurer becomes the ascertained amount where he demands appraisement and insured fails to appoint an appraiser within the designated period. Commercial Union Assur. Co. v. Schumaker, App. 119 N. E. 532.

Proof of loss by insured, if not objected to and introduced in evidence, is sufficient to establish the amount of the loss. Caledonian Ins. Co. v. Indiana Reduction Co., 64 App. 566, 115 N. E. 596.

This section is not applicable where all liability under the policy is denied, but is applicable only where there is a dispute as to the extent of the loss sustained. American Ins. Co. v. Paggett, 128 N. E. 468. The jurisdiction of a cause involving the constitutionality of this act is in the supreme court. Aetna Ins. Co. v. Reyman, App. 128 N. E. 933.

App. <->

[Acts 1921, p. 161. In force March 3, 1921.]

4622h. Stock fire insurance, risks permitted.-1. Every stock fire insurance company now organized, or hereafter to be organized, under and pursuant to the laws of the State of Indiana, is hereby