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ART. XXIII] INSURANCE COMPANIES. 113
all the laws of this State applicable to such company. No note or notes
received from any one person or firm shall be approved for a greater
amount than five hundred dollars, nor unless the maker or makers
thereof shall be approved by the Insurance Commissioner, or by the
person or persons appointed by him for that purpose, as being pecuni-
arily good and responsible for the same; nor unless a policy be issued
upon the same within thirty days after the granting of the license to-
begin business. Such notes shall be payable in part or in whole, at
any time when the directors shall deem the same requisite for the pay-
ment of losses, or such incidental expenses as may be necessary for
transacting the business of the corporation. No agreement or contract
of insurance entered into, or policy issued thereunder, for the purpose
of complying with these requirements, shall be for a shorter term than
one year. If the President and Secretary of any mutual fire insur-
ance company shall make a false oath relating to the certificate required
by this section, they shall be guilty of perjury.
No mutual fire insurance company operating on the cash premium
plan, nor any mutual fire insurance company with a guaranty capital
of less than one hundred thousand dollars, either of which has become
insolvent or has reinsured or cancelled its risks so that it has on its
books less than two hundred and fifty thousand dollars of insurance in
force, not reinsured, in not less than one hundred separate risks in-
this State, shall make any further insurance until it shall have secured
applications for policies which, together with the unreinsured risks in
force, shall amount to not less than two hundred and fifty thousand
dollars in not less than one hundred separate risks in this State, said
applications to be subject to the same provisions of this section as
apply to the subscriptions for insurance in a new company. Upon the
filing of such applications with the Insurance Commissioner, he shall
make such investigation as is necessary to verify the above, and upon
finding that the law has been complied with, shall grant a new license
to such company to issue policies.*
1916, ch. 256, sec. 154M.
154M. Every such company shall adopt by-laws for its govern-
ment, which shall fix the date of its annual meeting, shall specify the
method of calling special meetings, shall state the number of directors
and the terms for which they shall hold office and may provide for
the division of its board of directors into two, three or four classes and
the election thereof at its annual meetings in such manner that the
members of one class only shall retire and their successors be chosen
each year; shall state what officers, if any, other than president, secre-
tary and treasurer may be chosen; shall provide for filling vacancies
in any office and in the board of directors for the unexpired term; may
*The act of 1918, chapter 400, section 154AM. repeals all laws or parts of laws
in conflict with said act of 1918, in so far as they are in conflict with said act.
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