§3925. Bylaws; compulsory provisions

Link to law: http://legislature.vermont.gov/statutes/section/08/105/03925
Published: 2015

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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.)
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