When capital stock may be increased.

dend shall be liable to the creditors of the corporation to the extent of the dividend received in addition to the other penalties and punishments prescribed by law. The word "year," whenever used in this section, shall not be construed to mean the calendar year.

SECTION 2. Any stock insurance corporation organized under the laws of this state, or heretofore organized and doing business under the laws of this state, whenever it shall have accumulated and be in possession of a fund, in addition to the amount of its capital stock and all actual outstanding liabilities, including re-insurance reserve, in excess of one-half of the amount of all premiums on risks not ter minated, such corporation may increase its capital stock from such fund, and distribute said increase pro rata to the stockholders of such corporation; provided always that such increase shall be equal to at least twenty-five per centum of the original capital stock of said corporation and shall have been authorized by at least threefourths of the members of the board of directors of such corporation and approved by the commissioner of insurance; and, provided, also, that any such corporation may hereafter make and declare a dividend as provided in the preceding section of this act.

SECTION 3. This act shall take effect and be in force from and after its passage and publication.

Approved April 12, 1899.

No. 31, S.]

[Published April 13, 1899.

CHAPTER 167.

AN ACT to authorize the organization of, and to regulate mutual bicycle insurance companies.

The people of the state of Wisconsin, represented in senale and assembly, do enact as follows:

formed.

with commis

surance.

SECTION 1. Any number of persons, not less When com than five, residents and citizens of this state, who may be shall have taken applications in writing for insurance on at least five hundred bicycles, may form an incorporated company for the purpose of mutual bicycle insurance against loss by theft, accident or any contingent event whatever, which may be the subject of legal insurance except fire. SECTION 2. Such persons shall file with the To file articles commissioner of insurance articles of incorpora- sioner of intion signed and acknowledged by them. Such articles shall set forth the name of the corporation, the place of its principal office and the Lames of the first board of directors, the manner of their election and their term of office, kind of business to be transacted, and such other provisions of articles, not inconsistent with law, as are proper to be inserted therein for the interest of such corporation or the accomplishment of the purpose thereof, and to define the manner in which the corporate powers granted in this chapter shall be exercised.

submitted to

ination.

C 167 '01

C 165 '03

SECTION 3. Said articles shall be, by the com- Articles to be missioner of insurance, submitted to the attorney attorney gengeneral, and if found in conformity with law he eral for examshall so certify to said commissioner of insurance, who shall thereupon examine or cause an examination to be made, and if he shall find that such corporation has received and is in actual possession of the five hundred bona fide applications for insurance, he shall deliver to said corporation a patent reciting the articles of organi

Number of directors, terms of, and date of annual meeting.

Directors to elect officers.

Powers of cor

porations. Limitations

as to expenses.

zation and declaring such corporation duly organized and empowered to transact the business of insurance as therein defined. Within thirty days thereafter, the incorporators shall cause the articles of incorporation to be recorded in the of fice of the register of deeds of the county wherein such corporation shall have its principal office.

SECTION 4. The number of directors of such corporation shall be at least five, and they shall be elected from among the members of the company by the persons insured, except the first board of directors and shall hold office for a term of three years or until their successors are elected and qualified. Election of directors, except to fill vacancies, shall occur at the annual meeting of such company which shall be held on the third Tuesday of April of each year, and each person insured shall be entitled to one vote, and may cast the same either in person or by proxy.

SECTION 5. The directors shall elect from among their number a president, vice-president, secretary and treasurer, all of whom shall hold their office for one year and until their successors are elected and qualified. The secretary and treasurer shall each give a bond for the faithful performance of their duties in such amount as shall be prescribed by the board of directors.

SECTION 6. Such corporation and such di rectors shall possess the usual powers, and be subject to the usual duties of corporation and directors thereof, and may make such laws as may be deemed necessary for the management of its affairs in accordance with the provisions of this act, and may prescribe the duties of its officers and agents, and fix their compensation, and alter and amend its by-laws when necessary. Such corporation shall, in its by-laws, limit the amount to be used for expenses exclusive of the sums paid to agents for obtaining such insurance, to a sum not exceeding fifty per cent. of the receipts and such sum shall be maintained intact only during the life of the membership for which it is paid, and shall provide for a release of policy-holders

from further assessment liability in excess of an amount not less than twice the amount of the cash premiums as fixed by the directors at the time of issuance of the policy.

issued. Veli

SECTION 7. Such corporation may issue poli- Policies, how cies on bicycles, or any vehicle propelled and cles to be managed by the rider, for a term not to exceed classified. one year, and for an amount not to exceed fifty per cent. of its actual value. All persons insured shall pay such premiums at such times, in such amounts and under such conditions as may be provided and required by the application for membership, and the by-laws of the corporation. The bicycle or vehicle insured shall be classified at the time policies thereon are issued and different rates, corresponding as nearly as may be to the greater or less risk thereon, may be fixed.

members. No

SECTION 8. Any person owning an insurable Who may be interest in a bicycle or vehicle in this state may tice of loss. become a member of such corporation by insuring therein, but no non-resident of this state shall become a director of such corporation. Every member who may sustain a loss shall give such notice to the corporation and be required to furnish such proofs of such loss as may be demanded by the by-laws.

when made.

SECTION 9. Whenever the amount of any loss Assessments, exceeds the cash funds of the corporation the board of directors shall make an assessment upon all of the insured members at such uniform rate as they shall deem necessary to meet the payment of losses, and notice of such assessment shall be given to each member in such manner as the bylaws provide for.

may with

SECTION 10. Any member of such corporation How member may withdraw therefrom by surrendering his pol- draw. icy for cancellation at any time while the corporation continues the business for which it was formed, by giving notice in writing to the seeretary and paying his share of all claims then existing against it; and such corporation may cancel any policy by giving the insured due notice to that effect. In case of the.

To make annual report to

of insurance. License fee.

withdrawal of a member or the cancellation of a policy the corporation shall return the unearned premium, if any, less thirty per cent.

SECTION 11. On or before the first day of commissioner March of each year the president and secretary of such corporation shall prepare, under their oaths, and transmit to the commissioner of insurance a statement of the condition of the corporation on the thirty-first day of December then next preceding and shall, at the time of filing such annual statement pay to the commissioner of insurance a license fee of twenty-five dollars which shall be in lieu of all other fees and taxes.

SECTION 12. All acts and parts of acts inconsistent with the provisions of this act, are hereby repealed.

SECTION 13. This act shall take effect and be in force from and after its passage and publication.

Approved April 12, 1899.

No. 201, A.]

[Published April 13, 1899.

Terms of directors; to

Place of an

CHAPTER 168.

AN ACT to amend section 1929 Wisconsin statutes of 1898 relating to insurance companies.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SECTION 1. Section 1929 Wisconsin statutes choose officers. of 1898 is hereby amended to read as follows: nual meetings. Section 1929. The directors shall, unless the corporation otherwise direct, in accordance with the preceding section hold their office for one year and until their successors are elected. They shall choose from their number a president, a seeretary and a treasurer, the latter of whom may be