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The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
105
:
FIRE AND CASUALTY INSURANCE
Subchapter
002
:
COOPERATIVE FIRE INSURANCE CORPORATIONS
§
3925. Bylaws; compulsory provisions
The bylaws of a
cooperative insurance corporation to which a certificate of authority is issued
shall include substantially the following provisions:
(1) The
corporate powers of such corporation shall be exercised by a board of
directors, who shall be not less than five in number. Such directors shall be
divided into classes and a portion only elected each year. They shall be
elected for a term of not more than four years each and shall choose from their
number a president, secretary and such other officers as may be deemed
necessary. After the first year, the directors shall be chosen at an annual
meeting to be held on the second Tuesday of January, unless some other day is
designated in such bylaws, at which meeting each person insured shall have one
vote and may be entitled to vote by proxy under such rules and regulations as
may be prescribed by the bylaws;
(2) Such
corporation shall keep proper books, including a policy register, in which the
secretary shall enter the complete record of all its transactions and those of
the board of directors and executive committee. Such books shall at all times
show fully and truly the condition, affairs and business of such corporation
and shall be open for inspection by every person insured, each day from nine
o'clock in the forenoon to four o'clock in the afternoon, Saturdays, Sundays,
and legal holidays excepted;
(3) If
authorized as an assessment cooperative insurance corporation as outlined in
subsection 3920(a) of this title, such corporation may assess for the purposes
specified in section 3927 of this title and the bylaws shall specify the manner
of giving notice of such assessments, which may be either personal or by mail,
and, if by mail, shall be deemed complete if such notice is deposited, postage
prepaid, in the post office at the place where the principal office of the
corporation is located, directed to the person insured at his or her last known
place of residence or business. A person insured who neglects or refuses to pay
his or her assessments, for that reason or for any other reason satisfactory to
the board of directors or its executive committee, may be excluded from such
corporation and, when thus excluded, the secretary shall cancel or withdraw his
or her policy or policies, subject to the cancellation provisions in sections
3879 through 3882 and subchapter 2 of chapter 113 of this title, provided that
such person shall remain liable for his or her pro rata share of losses and
expenses incurred on or before the date of his or her exclusion and for the
penalty herein provided, in case an action is brought against him or her. If a
member of such corporation is so excluded and his or her policy so canceled,
the secretary shall forthwith enter such cancellation and the date thereof on
the records kept in the office of the corporation and serve notice of such
cancellation on the person so excluded, as provided herein for the service of
notice of assessment. However, in such event, the person so excluded or whose
policy is so canceled shall be entitled to the repayment of an equitable
portion of the unearned paid premium on such policy. The officers of such
corporation shall proceed to collect all assessments within 30 days after the
expiration of the notice to pay the same. Neglect or refusal on their part so
to proceed or to perform any of the duties imposed on them by law shall render
them individually liable for the amount lost to any person, due to such neglect
or refusal, and an action may be maintained by such person against such
officers to collect such amount. An action may be brought by the corporation
against a person insured therein to recover all assessments which he or she may
neglect or refuse to pay, and there may be recovered from him or her in such
action both the amount so assessed, with lawful interest thereon, and, as a
penalty for such neglect or refusal, 50 percent of such assessment in addition
thereto;
(4) Any person
insured by an assessment cooperative insurance corporation may withdraw
therefrom at any time by giving written notice to the corporation, stating the
date of withdrawal, paying his or her share of all claims then existing against
such corporation and surrendering his or her policy or policies;
(5) Any person
insured by a nonassessment cooperative insurance corporation may withdraw from
it at any time by giving written notice to the corporation stating the date of
withdrawal and surrendering his or her policy or policies;
(6) Persons
residing or owning property within the state of Vermont may be insured upon the
same terms and conditions as original members and such other terms as may be
prescribed in the bylaws of the corporation;
(7) Nonresidents
owning property within the state of Vermont may be insured therein and shall
have all the rights and privileges of the corporation and be accountable as are
other persons insured therein, but shall not be eligible to hold office in the
corporation;
(8) The bylaws
of such corporation may be amended at any time. (Amended 1981, No. 6, § 7;
1991, No. 184 (Adj. Sess.); 2003, No. 20, § 2.)