Chapter 175

Section 67. Nothing in the charter of any domestic mutual life company shall limit the investments of such company unless such limitation is contained in the general insurance laws in force at the time of making the investment.

Section 68. All property held by any domestic company the investment in or loan on which by such company is prohibited by this chapter shall be sold and disposed of forthwith unless the time be extended by the commissioner in the manner provided in section sixty-six or has been s…

Section 69. If the net assets of the company do not amount to more than three fourths of its capital, it may make good its capital by assessment of its stock. Shares on which such assessment is not paid within sixty days after demand shall be forfeitable, and may be cancelled by …

Section 70. A company which shall increase its stated capital by issue of additional shares of any class of its capital stock, whether by way of a stock dividend under section seventy-two, an offering to its shareholders or otherwise, may submit to the commissioner a certificate …

Section 71. No company shall reduce its stated capital to an amount less than required by section forty-eight or fifty-one nor shall it reduce such capital unless the commissioner determines that the reduction is in conformity to law and will not be prejudicial to the public. Exc…

Section 72. No stock company shall make a dividend, either in cash or stock certificates, except from its actual net surplus computed as required by law in its annual statement, nor shall any such company which has ceased to do new business divide any portion of its assets, excep…

Section 73. No policy shall be issued by a mutual fire company having no guaranty capital or having a guaranty capital of less than the combined capital and surplus provisions required under section forty-eight, until not less than one million dollars of insurance, in not less th…

Section 74. No mutual fire company operating on the cash premium plan as provided in section eighty-one, nor any mutual fire company with a guaranty capital of less than the combined capital and surplus provisions required under section forty-eight, either of which has become ins…

Section 75. No officer or other person whose duty it is to determine the character of the risks, and upon whose decision the application shall be accepted or rejected by a mutual fire company, shall receive as any part of his compensation a commission upon the premiums; but his c…

Section 76. Every person insured by a mutual fire company shall be a member while his policy is in force, entitled to one vote for each policy he holds, and shall be notified of the time and place of holding its meetings by a written notice or by an imprint, in type not smaller t…

Section 77. The number of the board of directors of every such company and requirements for eligibility, if any, shall be fixed by or determined in the manner provided in the by-laws but shall not be less than seven, and not less than five shall constitute a quorum. Such companie…

Section 78. Such companies shall be subject to the first paragraph of section fifty-eight, except that a treasurer shall be chosen, to the first paragraph of section fifty-nine, and to the first and third paragraphs of section sixty. The secretary shall keep a record of the votes…

Section 79. A mutual fire company may, at the time of its formation or, if two thirds of the votes of its policyholders cast at a meeting duly called for the purpose are recorded in favor of such action, at any time after its formation, establish a guaranty capital of not less th…

Section 80. From time to time the directors of a mutual fire company may by vote fix and determine the percentages of dividend or expiration return of premium to be paid on expiring or cancelled policies, or to be paid upon anniversary dates of policies having a term of more than…

Section 81. Mutual fire companies, except as provided in the following section, shall charge and collect upon their policies a full mutual premium in cash or, except as provided in section seventy-three, in notes absolutely payable; provided, that this section shall not be constr…

Section 82. Mutual fire companies organized prior to May twenty-first, eighteen hundred and eighty-seven, and now lawfully doing business upon the plan of taking deposit notes for a percentage of the amount insured by their policies, and making a call or assessment thereon for ex…

Section 83. If a mutual fire company is not possessed of assets above its unearned premiums sufficient for the payment of incurred losses and expenses, it shall make an assessment upon its members liable to assessment therefor, in proportion to their several liabilities, for the …

Section 84. If the directors by authority of law make an assessment or call on the members for money, or vote that there exists a necessity therefor, they or any person interested in the company as an officer, policyholder or creditor may apply to the supreme judicial court for a…

Section 85. A director or other officer of a mutual fire company who officially or privately gives a guaranty to a policyholder thereof against an assessment to which he would otherwise be liable shall be punished by a fine of not more than one hundred dollars. If the directors o…

Section 85A. The commissioner may authorize a mutual fire company, which has and maintains a surplus to policyholders, including any guaranty capital, of not less than the combined capital and surplus provisions required under section forty-eight to issue non-assessable policies,…

Section 86. A mutual marine company formed under the second clause of section forty-seven shall have an agreement under the seal of each subscriber thereto, substantially as follows: The subscribers severally agree to pay to the Insurance Company on demand the whole or such part …

Section 88. Sections seventy-six, seventy-seven and seventy-eight shall apply to all domestic mutual marine companies, and each subscriber to the agreement specified in section eighty-six shall be a member of the company during the term of his subscription and entitled to one vot…

Section 89. If a subscriber to the agreement specified in section eighty-six fails to pay his subscription or any assessment thereon, and it is proved that the president or a director certified falsely under said section in regard to such subscriber, the person certifying shall b…

Section 8A. At any hearing which the commissioner is authorized by law to hold, he may by summons require the attendance and testimony of witnesses and the production of books, records and papers touching upon the matters in question at such hearing, and may administer oaths to s…

Section 9. 1. The commissioner shall each year compute, or cause to be computed, the reserve liability or net value on December thirty-first of the preceding year of every life company authorized to transact business in the commonwealth with respect to the policies or contracts h…

Section 90. Mutual companies, other than life, formed to transact or transacting business under any one or more of clauses three, four, five, six, seven, eight, nine, ten, twelve and thirteen of section forty-seven, or under clause (a), (b), (d) or (e) of section fifty-four, and …

Section 90A. No policy shall be issued by a mutual company formed to transact business under the third clause of section forty-seven, or under clause (b) or (c) of section forty-eight A, and having no guaranty capital or having a guaranty capital of less than the combined capital…

Section 90B. No policy shall be issued by a mutual company formed to transact business under the fourth clause of section forty-seven until it has established a fully paid up guaranty capital of not less than the combined capital and surplus provisions required under section fort…

Section 90C. Any mutual company empowered by subdivision (e) of section fifty-four to transact the kinds of business set forth in the fourth clause of section forty-seven, which has net cash assets, computed on the basis fixed by sections ten to twelve, inclusive, of not less tha…

Section 92. No policy shall be issued by a mutual company formed to transact business under the fifth clause of section forty-seven until insurance has been applied for to the amount of one million dollars upon not less than one hundred separate risks, nor until such company has …

Section 93. No policy shall be issued by a mutual company formed to transact business under any one or more of the subdivisions of the sixth clause of section forty-seven until it has secured applications for insurance on risks in the commonwealth, the premiums on which shall amo…

Section 93A. No policy shall be issued by a mutual company formed to transact business under the seventh, eighth, ninth, tenth, twelfth or thirteenth clause of section forty-seven until it has secured applications for insurance upon not less than two hundred separate risks in the…

Section 93B. No policy shall be issued by a mutual company formed to transact business under clause (d) of section forty-eight A until it has secured the applications for insurance required by sections ninety-two, ninety-three and ninety-three A, or any of them, in respect to the…

Section 93C. Any mutual company formed or authorized to transact business under the third, fifth, sixth, seventh, eighth, ninth, tenth, twelfth or thirteenth clause of section forty-seven or under clause (b), (c) or (d) of section forty-eight A may, except as provided in sections…

Section 93D. No domestic mutual company transacting business under clause three, five, six, seven, eight, nine, ten, twelve or thirteen of section forty-seven, or under clause (b), (c) or (d) of section forty-eight A, whose amount of insurance in force or premiums or number of ri…

Section 93E. No policy shall be issued by a mutual company formed to transact business under the sixteenth clause of section forty-seven, or under clause (e) of section forty-eight A, until it has established a fully paid-up guaranty capital of not less than the combined capital …

Section 93F. Any mutual fire company, or any company specified in the first paragraph of section ninety, which has and maintains a surplus to policyholders, including any guaranty capital or guaranty fund, at least equal to the minimum paid-up capital and assets that are on the e…

Section 94. Except as provided in this section and in sections thirty-six, one hundred and thirty-two D and one hundred and thirty-seven, every person insured under a policy of life or endowment insurance issued by a domestic mutual life company shall be a member thereof and enti…

Section 94A. The following words and phrases, as used in sections ninety-four B to ninety-four M, inclusive, or elsewhere in this chapter, or in chapter one hundred and fifty-two, shall, unless the context otherwise requires or a different meaning is specifically prescribed, have…

Section 94B. Individuals, partnerships and corporations of this commonwealth, including any association of same holding legal title of ownership to a fishing vessel or vessels, designated in section ninety-four A as subscribers are hereby authorized to exchange reciprocal or inte…

Section 94C. Domestic exchanges may be organized by three or more individuals, residents of the commonwealth, or partnerships or corporations doing business therein, who shall apply to the commissioner for a preliminary certificate, in such form as he may prescribe, authorizing t…

Section 94D. Organizers of a domestic exchange, having obtained a preliminary certificate to solicit subscribers, under section ninety-four C, may obtain a provisional certificate of authority to transact business, upon compliance with the requirements hereinafter provided. Said …

Section 94E. Foreign exchanges may apply for a license to transact business in the commonwealth in the manner set forth in section ninety-four D, with the following exceptions and additions:— (a) A declaration setting forth that it has funds necessary to meet the financial requir…

Section 94F. The commissioner shall examine the application and declaration and all documents filed in connection therewith; and, if he is satisfied that they comply with the law and that the allegations of fact contained therein are true, he shall issue to the attorney in fact a…

Section 94G. The attorney in fact shall execute no insurance contract with any subscriber unless the subscriber shall have agreed that, except as hereinafter provided, in case the funds on hand are not sufficient to meet the losses, he will, upon demand, pay to the attorney in fa…