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PUBLIC ACTS OF THE GENERAL ASSEMBLY OF 1919 i. n.-.. i tf."- t: . . KINGDOM (if GREAT BRITAIN AM) IRELAND AM) THE RE PUBLIC OF FRANCE. (t is herein inailrd hy the Grnrra .V-emlilv nf tin State of Vermont: Section I'ar. ;raph ill I of sub division II i( section ;,C,1 nf the Gen eral Law- is hereby amended so a-t tn 1 ead as follows ; (111 (n the bonds of the United Kingdom of Great Britain and Ireland. and the bonds of the Republic of 1' nil ire. Approved February 26, 1919. Na 141 AX ACT IN AMENDMENT OF, IN ADDITION' TO AND TO RE PEAL CERTAIN SECTIONS OF THE GENERAL LAWS. RELAT 1 Nil TO UNCLAIMED DEPOSITS IN SAVINGS BANKS. It is herehy enacted by the General Assembly of the State of Vermont : Section 1. Section 5382 of the Gen eral Laws is hereby amended so as to read as follows: Sec. 5383. The treasurer of each hank shall, on or before the first day of May, annually, report to the. hank com missioner, under oath, the name and last known residence of each depositor of the bank, together with the amount due Mich depositor, who has not made a deposit therein or withdrawn any part of his deposit or of the interest there on, for a period of twenty years next preceding; and who is not known to the officers of the hank to be living; and said treasurer shall further give notice by publishing a list of such depositors in one or more newspapers published in or near the town where such institu- which ha become of which becomes a member of one of the Federal reserve bank created by the Federal Reserve Act. Sec. 2. A bank or Irmt company in corporated under the laws of this state shall have the power to subscribe to the capital stock and become a member of a Federal reserve hank. Sec. ,1. A bank or trust company in corporatcd under the laws of this state which is. or which becomes, a member of a Federal reserve bank is bv th act vested with all powers conferred upon member banks of the rederal re serve banks by the terms of the Fed eral Reserve Act as fully and com plctelv as if such powers were speciti callv enumerated and described herein and all such powers shall be exercised subject to all restrictions and limitations imposed by the Federal Reserve Act, or by regulations of the Federal Reserve Board made pursuant thereto. The right, however, is expressly reserved to revoke or to amend the powers herein conferred. Sec. 4. A compliance on the part of any such bank or trust company with the reserve requirements of the Federal Reserve Act shall be held to be a full compliance with those provisions of the laws of this state which require banks or trust companies to maintain cash balances in their vaults or with other banks, and no such bank or trust com pany shall be required to carry or main tain reserve other than such as is re- quired under the terms of the Federal Reserve Act. Sec. 5. A bank or trust company shall continue to be subject to the supervision and examinations required by the laws of this state, except that the ion is located, three weeks successively. Federal Reserve Board shall have the Said bank commissioner shall forthwith forward to the state's attorney of each county a copy of the report received trom sucli treasurers of the banks with in such county, who shall forthwith file with the probate court of a probate dis trict in such county an application ask ing such probate court to cite before it such banks in order to determine the ownership of such deposits. Said pro bate court shall forthwith give notice in the manner provided in section three thousand two hundred and ninety-one of tne ueneral Laws, notifying all claim ants of such deposits to appear and be heard upon the day fixed by said pro bate court, and shall also, forthwith notify such hanks by registered mail of the time and place of such hearing. If said probate court, upon hearing all par ties in interest, finds an owner for such deposit, it shall make a decree to that effect which shall be filed with such bank and shall be a sufficient warrant for the payment by the bank to the claimant. If the probate court does not find an owner for such deposit upon the evidence presented, it shall order the bank to pay such deposit to the treas urcr of the state to be held and invested as a part of the permanent school fund and shall so certify to the bank, which shall thereupon pay over such deposit, is provided 111 this section. Sec. 2. Said probate court shall upon the petition in writing of any per son claiming a right to money paid to the state treasurer as hereinbefore pro vided, fix a day for a hearing upon such petition and cause the substance of the same, together with the time and place nf hearing thereon, to be published in a newspaper having a general circulation :hroughout the probate district wherein such court has jurisdiction, for at least three weeks successively, the last publi cation to be at least twenty days before the date of such hearing. Notice of such hearing shall be given by said pro bate court to the state's attorney of the county and to the state treasurer by mailing to each a registered copy of such petition and order for hearing at least twenty days before the date set there for. Said state's attorney shall, if in liis opinion f.e interests of the state or of any person other than the peti tioner require, or upon request of the state treasurer, attend such hearing and oppose the payment of such money to such petitioner. If, upon hearing, the court adjudges that the petitioner is entitled to the money on deposit, the judge shall forthwith prepare and for ward to the state treasurer a certified ropy of the judgment rendered thereon, under the seal of the court, and the state treasurer shall thereupon pay over to the petitioner the amount of money to which he has been adjudged entitled, which sum shall be charged to the perma nent school fund. In cases where the sum involved is less than one hundred dollars, the claim may be presented to the auditor of accounts, who shall ex amine the same and order payment by the state treasurer out of the perma nent school fund, of such sum as he shall find to be due the claimant. Sec. 3. A notice of hearing under the provisions of the preceding section jn all cases where the amount involved is one hundred dollars or more, shall not be issued until sufficient security is given to the state treasurer, to the satis faction of the probate court issuing such notice, that the petitioner will pay the costs of the hearing if judgment is rendered against him. Sec. 4. The necessary expenses for carrying out the provisions of this act shall be approved by the probate court and the auditor of accounts shall order payments thereof to be made hy the state treasurer out of the permanent school fund Sec. 5. Sections 5383, 5.186, 5387, 5.V 53). 530O and 53QI of the General Laws are hereby repealed. Sec. 6. This art shall take effect from its passage. Approved April 7, 1919. right, if it deems necessary, to make examinations; and the authorities of this state having supervision over such bank or trust company may disclose to the Federal Reserve Board, or to ex aminers duly appointed bv it, all infor mation in reference to the affairs of any bank or trust company which has be come, or desires to become, a member of a Federal reserve bank. Approved February 21, 1919. NO. 144 AN ACT TO AMEND SECTION 5442 OF THE GENERAL LAWS, RE LATING TO SECURITY FUR NISHED RY TRUST COMPANIES ACTING IN A FIDUCIARY CA PACITY. It is hereby enacted by the General Assembly of the State of Vermont: Section 1. Section 5442 of the Gen eral Laws is hereby amended so as to read as follows: Sec. 5442. The capital stock of a trust company thus appointed, together with the liabilities of the stockholders of such trust company, shall be held as security for the faithful discharge of the duties undertaken by virtue of the preceding section, as well as for the claims of other creditors; and such trust company shall furnish to the authority making th,e appointment the bond of some good surety company for a sum not less than twenty-five per cent of the amount of the trust fund, conditioned for the faithful discharge of the duties undertaken by virtue of the preceding section, unless such trust com pany shall set apart a guaranty fund, according to the conditions of the fol lowing section, of at least twenty-five per cent of such trust fund. bee. 2. bection 5443 of the General Laws is hereby amended so as to read as follows: Sec. 5443. The trustees may, from time to time, set apart as a guaranty fund such portion ot the prohts over and above the necessary allotments for the twenty-five per cent surplus provided for m the preceding section as they deem expedient; and such trust guaranty fund shall be kept separate and invested like the funds of banks, and shall be pledged solely as security for the faith ful discharge of the duties undertaken as executor, administrator, receiver, assignee, trustee or guardian so long as obligation thereunder shall exist ; but such guaranty fund may, at any time, on the written approval of the bank commissioner, be reduced to an amount not less than twenty-five per cent of the total amount of fiduciary trust funds held as executor, adminis trator, receiver, assignee, trustee or guardian for the care of which a hank is liable; and all the revenue from such guaranty fund may be applied to gen eral bank purposes. Approved March 20, 1919. It i hereby enacted hy the Genera! Assembly of the Slate of Vermont : Section 1. The provisions of chapter two hundred and twenty-right of the General Laws, relating to investment companies shall not he construed as ex empting a corporation, co-partnership, company, association or individual from complying with the provisions of chap ter forty-six of the General Laws, re lating to the taxation of corporations, or from the provisions of chapter two hundred and forty of the General Laws, relating to the publicity of partnerships. Sec. 2. This act "shall take effect from its passage. Approved April 2, 1919. NO. 142 AN ACT TO COMPEL BANKS TO FURNISH INFORMATION AS TO DEPOSITS OF PERSONS RECEIVING OR APPLYING FOR PUBLIC SUPPORT. It is hereby enacted by the General Assembly of the State of Vermont : Section 1. A cashier of a national bank and a treasurer of a savings bank or a treasurer of a savings bank and trust company shall when requested by an overseer of the poor of a town in the state, furnish to said overseer any information asked, relative to the de posit of a person receiving or apply ing for public support. Sec. 2. This act shall take effect from its passage. Approved March 26 1919. NO. 143 AN ACT TO ENABLE STATE BANKING INSTITUTIONS TO JOIN FEDERAL RESERVE SYS TEM. It is hereby enacted by the General Assembly of the State of Vermont: section 1. the words Federal Re serve Act," as herein used shall be held to mean and to include the act of Congress of the United States approved December -3. I9I3. as heretofore and hereafter amended. The words "Federal Reserve Board" shall be held to mean the Fed eral Reserve Board created and de scribed in the Federal Reserve Act. The words "Federal Reserve Bank" shall be held to mean the Federal re serve banks created and organized under authority of the Federal Reserve Act. The words "member bank" shall be held to mean any nation;' 1 bank, state bank or banking and trust company NO. 145 N ACT IN AMENDMENT OF AND IN ADDITION TO SECTION 5448 OF THE GENERAL LAWS, RE LATING TO GUARANTY FUNDS HELD BY NATIONAL BANKS ACTING IN A FIDUCIARY CA PACITY. It is hereby enacted by the General Assembly of the State of Vermont: bection 1. bection 5448 of the Gen eral Laws is hereby amended so as to read as follows : Sec. 5448. The capital stock of the national bank so appointed, together with the liabilities of the stockholders of such bank, shall be held as .security for the faithful discharge of the duties undertaken by virtue of the preceding section, as well as for the claims of other creditors; and such national bank shall furnish to the authority making the appointment the bond of some good surety company for a sum not less than twenty-five per cent of the amount of the trust fund, conditioned for the faithful discharge of the duties under taken by virtue of the preceding sec tion, unless such bank shall set apart a guaranty fund, according to the con ditions of the following section of this act, of at least -twenty-five per cent of such trust fund. Sec. 2. The directors of such national bank, may from time to time, set apart as a guaranty fund such portion of the profits over and above the necessary allotments for the twenty-five per cent surplus fund as they deem expedient; and such trust guaranty fund shall be kept separate and invested like the funds of batiks, and shall be pledged solely as security for the faithful discharge of the duties undertaken as executor, ad ministrator, receiver, assignee, trustee or guardian so long as obligation there under shall exist; but such guaranty fund may, at any time, on the written approval of the judge of the probate court of the district in which such bank is located be reduced to an amount not ess than twentv-five per cent of the total amount of fiduciary trust funds held as executor, administrator, re ceiver, assignee, trustee or guardian for the care of which a bank is liable; and all the revenue from such guaranty fund may be applied to general bank purposes. Approved April 7, 1919. NO. 146 AN ACT RELATING TO PAY MENT OF ANNUAL LICENSE TAXES AND REGISTRATION UNDER THE PUBLICITY OF PARTNERSHIPS ACT, BY PER SONS AND CORPORATIONS SUBJECT TO THE PROVISIONS OF CHAPTER 228 OF THE GEN ERAL LAWS, RELATING TO IN VESTMENT COMPANIES. NO. 147 AN ACT TO ESTABLISH THE OFFICE OF STATE FIRE MAR SHAL, DEFINING ITS POWERS AND DUTIES AND TO PRO VIDE FOR THE MAINTENANCE THEREOF. It is hereby enacted by the General Assembly of the State of Vermont: Section 1. The office of state fire marshal is hereby established. Sec. 2. The insurance commissioner shall be ex-officio state tire marshal, and he is hereby authorized to appoint a deputy fire marshal whose duties shall be to assist him as state hre marshal. and in case of the absence or inability of that officer, to perform the duties of the office. Sec. 3. The fire marshal or the deputy fire marshal, the chief of the fire department in every city or incor porated village in which a paid fire de partment is established, the president, or the chairman of the board of trustees in case there is no president, of incor porated villages and the hrst selectmen of towns are authorized to investigate the cause, origin and circumstances of every hre occurring in any such city, village or town in which property has been destroyed or damaged, when the damage exceeds fifty dollars, except that all fires of unknown origin shall be re ported and they shall make special in vestigation as to whether any hre was the result of carelessness, accident or design. bee. 4. buch investigation shall he begun within five days after the occur rence of such fire or as soon thereafter as it appears that there is cause there for, and the fire marshal or the deputy fire marshal shall have the right to supervise and direct such investigation whenever he deems it necessary or ex pedient. bee. 5. The officer making an investi gation of a fire, as provided in the pre ceding sections, shall forthwith notify the hre marshal and shall within one week after the occurrence of the fire, furnish to him a written statement of all facts relating to the cause and origin of the fire and shall give him such other information as may be called for on blanks furnished by the hre marshal. Whenever it may seem to be for the public good, the insurance com missioner shall personally visit and in vestigate any fire in accordance with the provisions of this act, and he shall be repaid all expenses incident thereto out of the funds provided for in this act. Sec. 6. The state fire marshal shall keep in his office a record of all fires occurring in this state and ot all the tacts concerning the same, including statistics as to the extent of such fires and the damage caused thereby, and whether such losses were covered by insurance and, if so, in what amount. Such record shall be made daily from the reports made to him under the pro visions of this act. All such records shall be public, except testimony taken in an investigation under the provi sions of this act which the state fire marshal in his discretion may withhold from the public. Sec. 7. The state hre marshal shall, when in his opinion, further investiga tion is necessary, take or cause to be taken, the testimony under oath of 'all persons supposed to have knowledge of any facts, or to have means of knowl edge relating to any fire or matter re garding which an examination is herein required to be made, and shall cause the same to be reduced to writing. If the state fire marshal or deputy fire mar shal, after making such investigation, is of the opinion that there is prob able cause to believe a person guilty of the crime of arson, or of an attempt to commit the crime of arson, or of a conspiracy to defraud, or of any crim inal conduct in connection with such fires, he shall furnish to the state's attorney a copy of all such testimony together with the names and residences of witnesses and all necessary informa tion obtained by him, and such state's attorney shall take such action as the facts justify, and diligently inquire into all circumstances attending the fire. The fire marshal may assist in the prose cution either in person or by the deputy hre marshal. Sec. 8. A state's attorney upon re quest of the state fire marshal or the deputy fire marshal, shall assist such officers in an investigation of a fire which in their opinion is of suspicious origin. Sec. 9. The fire marshal and the deputy fire marshal, or either of them, shall have the power throughout the state to summon and compel the attendance of witnesses before them, or either of them, to testify relative to any matter which is by the provisions of this act a subject of inquiry or investigation, and may require the production of any book, paper or document deemed perti nent thereto by them. Such witnesses shall be subpoenaed in the same man ner as witnesses in justice's courts. They shall receive the same compensa tion as is paid in justice's courts, which shall be paid out of the fire marshal fund upon vouchers signed by the fire marshal or deputy fire marshal before whom any witnesses have attended, and such officer shall at the close of the investigation wherein such witnesses were subpoenaed certify to their attend ance and mileage, which certificate shall be filed in the office of the fire mar shal. All investigations held by or under the direction of the fire marshal or deputy fire marshal may, in his dis cretion, be private and persons other than those required to be present by the provisions of this act may be ex cluded from the place where such in vestigation is held, and witnesses may be kept separate and apart from each other and not allowed to communicate with each other until they have been examined. A person shall not be ex cused from attending before the fire marshal or deputy tire marshal when summoned so to attend. Sec. 10. A witness who refuses to obey a summons of the state fire mar shal, or deputy hre marshal, or who re fuses to be sworn or to testify, or who disobeys a lawful order of the state fire marshal, or deputy fire marshal in relation to an investigation instituted by him or them, or who fails or refuses to produce any book, paper or docu ment touching any matter under investi gation or examination, or who is guilty of any contemptuous act after being summoned to appear before him, or either of them, to give testimony in rela tion to any matter or subject under ex amination or investigation as aforesaid, may be punished as for contempt of court. Sec. 11. The fire marshal and deputy fire marshal ae each hereby authorized and empowered to administer oath and affirmations to any and all persons ap pearing as witnesses before them, and false swearing in any matter or proceed ing shall he deemed perjury and shall be punished as Mich. Sec. 12. The fire marshal and deputy hre marshal, or either of them, upon complaint dulv made, shall have author ity at all reasonable hours m the per tnrtnancc ot the duties imposed upon them hy the provisions f this act t the purpose of examination, to enter into and upon all buildings and premise within their jurisdiction. Sec. 13. Whenever the state fire mar shal or deputy lire marshal, or cither of them, find anv building or structure, which, for want of repair or hy reason of age or dilapidated condition, or fo any other cause is especially liable to tire, and which is so situated as to en danger other buildings and property, and whenever they, or cither ot them. find in any building or upon any premises, any combustible or explosiv material, or conditions daneerous to th safety of said building or premises, they shall have power to make reasonable orders for the repair of said building or huildmgs and the removal ot said combustible or explosive material, and the remedying of any dangerous condi tions, and such order shall be forthwith complied with bv the owners or occu pants of said premises or buildings, Provided, however, that a municipality that has building inspection and hre limits ordinances, nothing herein shall be construed to affect such local regu lation, but the jurisdiction of the state fire marshal shall in such case be con current with that of the municipal authorities. Sec. 14. An owner or occupant of buildings or premises who fails for ten days to comply with any reasonable order issued under the preceding sec tion shall forfeit to the state ten dol lars for each day's neglect to be recov ered in an action of tort on this statute brought by the fire marshal or the deputy hre marshal, before a city or municipal or county court having jurisdiction in the municipality or town where said premises or buildings are situated; and in such proceedings the appellant may put in issue the reasonableness of the order of the fire marshal or the deputy fire marshal in question, and Hinless such order shall be found by such court to be reasonable the appellant shall have judgment for his costs, the same to be paid out of the special fund provided for by this act. bee. 15. Any othcer referred to in section three of this act who wilfully neglects to comply with any of the re quircmcnts of this act shall be fined not more than one hundred dollars nor less than ten dollars. Sec, 16. The deputy fire marshal shall receive an annual salary of eighteen hundred dollars and shall devote his entire time to the duties of his office. The fire marshal shall be authorized to employ a stenographer or clerk and incur all other expense that may be necessary in the performance of the duties imposed upon him by this act, including necessary traveling expenses, The total expense of the department of the state fire marshal shall not exceed, including salaries, such sum as may be paid into the state treasury in the man ncr hereinafter provided. Sec. 17. For the purpose of maintain ing the department of state hre mar shal and paving all the expenses inci dent thereto, every fire insurance com pany doing business in the state shall pay into the state treasury within thirty days after the passage of this act, and on or before the first day of March an nually thereafter in addition to the taxes now required by law to be paid by such company, a fourth of one per cent on the net premium receipts or assessments ot such companies on a business done in the state during the year next preceding, as shown by their annual statements under oath to the in surance department. The money so re ceived shall be set aside as a special fund for the maintenance of the office of state fire marshal. The state shall not be liable in any manner for the salary of the deputy fire marshal, or for the maintenance of the office of fire mar shal or any expense incident thereto other than as provided by this section, and the same shall be payable only from the special fund provided for by this act.- Sec. 18. Whenever there shall accum ulate in such special fund a surplus suffi cient to maintain the department of the state fire marshal for the period of one year, then, in the discretion of the in surance commissioner, the foregoing special tax for such year may be omitted. Sec. 19. The insurance commissioner shall tile in the office of the auditor of accounts an itemized statement of ex penses incurred by the department of the state hre marshal, which shall be approved by the insurance commissioner and shall be allowed and paid out of funds provided for in section seventeen of this act in the same manner as other claims against the state. bee. 20. I he deputy hre marshal shall annually submit a detailed report of his official acts to the insurance com missioner, which shall be included in the annual report of the insurance commis sioner to the governor. Sec. 2t. There shall be paid to the chiefs of fire departments fifty cents for each report of each separate fire re ported to the state tire marshal under the provisions of this act, and there shall be paid to the president of an in corporated village in which no paid fire department exists or to the chairman of the board of trustees in case there is no president, and to the first selectman of each town whose duty under this act it shall be to make investigation of fires, outside the limits of cities and incor porated villages, mileage at the rate of ten cents per mile for each mile traveled to and from the place of a fire, and a further sum not to exceed two dollars and fifty cents per day for each day spent in such investigation. Said allow ance shall, after approval by the state fire marshal, be paid out of the funds provided for in section seventeen of this act. Sec. 22. The deputy lire marshal shall be under the immediate supervi sion and control of the insurance com missioner who may remove him from office, for cause, at any time that such removal may be deemed necessary for the good of the department. The head quarters of the department of the state fire marshal shall he in the office of the insurance commissioner. Sec. 23. All acts or parts of acts in consistent with this act are hereby re pealed. Sec. 24. This act shall take effect from its passage. Approved April 7, 1919. located in this state, shall file with the insurance commissioner a copy of the articles of agreement, association or in corporation and the by-laws anil all amendments thereto under which such person, association or bureau, herein after referred to as a rating organiza tion, operates or proposes to operate, together with his or its business address and a list of the members' or insurance corporations represented or to be rep resented by him or it, as well as such other information concerning such rat ing organization and its operations as may be required by the commissioner. Sec. 2. Every rating organization, whether before or after the filing of the information specified in the last preced ing section, shall be subject to visita tion, supervision and examination by the insurance commissioner as often as he deems expedient, including the power to examine under oath the officers or agents and all persons deemed to have material information regarding the busi ness or manner of operation by every such organization. Sec. 3. Each rating organization shall file with the insurance commis sioner whenever he may call therefor any schedule of rates or such other in formation concerning rates as may be suggested, approved or made by any such organization. bee. 4. A rating organization or any person, association or corporation authorized to transact the business of insurance within this state shall not fix or make any rate or schedule of rates or charge a rate which discriminates unfairly between risks within this state of essentially the same hazard or, if such rate be a fire insurance rate, which discriminates unfairly between risks in I the application of like charges or credits or which discriminates unfairly between risks of essentially the same hazards and having substantially the same degree of protection against fire. Whenever it is made to appear to the satisfaction of the insurance commis sioner that such discrimination exists, he shall, after a full hearing, order such discrimination removed; and all such persons, corporations, associations or bureaus affected thereby shall imme diately comply therewith ; such persons, corporations, associations or bureaus shall not remove such discrimination by increasing the rates on any risk or class of risks affected by such order unless it is made to appear tr the satis faction of the insurance commissioner that such increase is justifiable. bee. 5. A rating organization shall not charge any licensing, registration, certification or membership fee to brok ers who shall have been or hereafter may be licensed or authorized as such pursuant to the provisions of this act; nor shall any such rating organization or any other person, corporation, asso ciation or bureau or any two or more persons, associations, or corporations authorized to transact the business of insurance within this state, acting in agreement, refuse to do business with or to pay commissions to any person who may be licensed or authorized as an insurance broker, pursuant to the provisions of this act, because such a broker will not agree to secure insur ance only at the rates of premium fixed by such rating organization or the par ties to such agreement. bee. b. livery such rating organiza tion shall keep a careful record of its proceedings and shall furnish upon de mand to any person upon whose property or risk a rate has been made, or to his authorized agent, full information as to such rate, and, if such property or risk be rated bv a schedule, a copy of such schedule; it shall also provide such means as may be approved by the in surance commissioner whereby any per son affected by such rate or rates may be heard, either in person or by agent, before the governing or rating commit tee or other proper executive of such rating organization on an application for a change in such rate or rates. 'A person who feels aggrieved by any rate fixed or made by a person, corporation, association or bureau on any risk located in this state may complain, if such complainant be affected by such rate, to the insurance commissioner who shall call a hearing before a board con sisting of the insurance commissioner as chairman, the auditor of accounts and a third party to be named bv the person, corporation, association or board mak ing the rate; and if it appears to them that the rates charged are excessive, they shall fix a reasonable rate and the rate so fixed shall be binding on all com panies doing business in this state. The action of said hoard in this regard shall he subject to review by writ of cer tiorari, and disputed questions of fact as well as of law shall be thereby reviewed. Sec. 7. This act shall not apply to any contract of life insurance, nor to any contract of insurance upon or in connection with marine or transporta tion risks or hazards other than con tracts for automobile insurance, nor to contracts of insurance upon property or risks located without this state. Approved April 4, 1919. NO. 148 AN ACT RELATING TO THE SUPERVISION OF INSURANCE RATING ORGANIZATIONS. It is hereby enacted by the General Assembly of the State of Vermont : Section 1. Every corporation, asso ciation or bureau which now exists or hereafter may be formed, and every per son who maintains or hereafter may maintain a bureau or office, for the pur' pose of suggesting, approving or mak ing rates to be used by more than one underwriter for insurances, including surety bonds and compensation insur ance, on yroperty or risks of any kind NO. 149 AN ACT TO PROHIBIT MISREP RESENTATIONS TO THE AS SURED BY INSURANCE COM PANIES, THEIR OFFICERS AND AGENTS. It is hereby enacted by the General Assembly of the State of Vermont : Section I. An insurance company, association or society, doing business in this state and an officer, director, agenr, broker or solicitor thereof, shall not issue, circulate, or use or cause or permit to be used, ciiculated or issued any written or oral statement or cir cular misrepresenting the terms of any policy issued or to be issued by any company, or misrepresenting the benefits or privileges promised under aivy such policy. Such an insurance company, association or society, officer, director, agent, solicitor or broker, shall not make any misrepresentation, oral, writ ten or otherwise, to any person insured in any company, for the purpose of in ducing or tending to induce a policy holder in any company to lapse, forfeit or surrender his insurance therein. Sec. 2. An insurance company, asso ciation or society, agent, solicitor or broker, or any person, firm, association or corporation, that violates a pro vision of this act shall be fined not more than one hundred dollars for each offense. Sec. 3. The insurance commissioner may, in his discretion, revoke or sus pend for a period not exceeding one year a license theretofore issued to any company, association or society, agent or broker, if he is convinced, after a hearing, that such company, association or society, agent or broker, has know ingly or wilfully violated a provision of this act. Approved February 21, 1919. surance clause, or any similar clause requiring the insured to carry insurance in amount equal to any percentage of llir value of said buildings, the insured may a-k for a ablation of such build ing or buildings insured, which valua tion may be agreed upon in writing hy the insuring company and the insured and shall be the valuation ot the prop erty insured lor the purpose of fixing the liability of the company during the life of the poliev. Sec. J. In ca.-e the insuring company and the insured do not agree on the valuation, as provided in the preceding section, the insured may tile with the insurance commissioner a request tor a valuation, which shall contain a com plete description of the building or build ings showing location, the name of the company, and the agent, if any, through whom the insurance is placed and the date of the policy. Sec. 3. Upon the receipt of such a request the insurance commissioner shall appoint a time and place for mak ing such valuation which shall be not later than fifteen days thereafter, unless an earlier date is agreed upon hy the parties interested, and he shall give proper notice thereof to all concerned. Sec. 4. The owner of a building and the insurance company or agent shall each file with the insurance commis sioner a list of not less than three disin terested persons competent to act as appraisers of the building described in the notice. The insurance commissioner shall select one person from each of the lists so submitted who shall to gether act as appraisers of the property, and, in case, these two cannot agree, he shall select a third competent and dis interested person who shall act as third appraiser only as to matters regarding which the two appraisers first appointed cannot agree. An award in writing of any two appraisers, when filed with the insurance commissioner, shall deter mine the sound value of the building. Each of the two appraisers first ap pointed shall be paid bv the party nomi nating him and the third appraiser shall be paid by the parties equally. Sec. 5. The value of any building fixed as provided in the preceding sec tion shall be considered the true value of the building during the term for which any fire insurance policy is issued to cover thereon, if issued within three years from the date of such award, and such value shall continue as the basis of valuation for the purpose of ascer taining the amount of insurance required under a co-insurance clause until a new valuation shall have been made, in the manner provided by this act, on an ap plication by the insured or by the com pany, or agent placing the insurance thereon, provided that a new valuation shall not be required oftener than once in three years. Sec. 6. The rate charged for a fire insurance policy covering a building valued in accordance with the provi sions of this act, shall not be increased above the rate fixed for the same form of policy, containing or having attached thereto a co-insurance clause where no request has been made to have the value of the property fixed in accordance with the provisions of this act. Sec. 7. If an insurance company vio lates the provisions of this act or if the insurance commissioner is satisfied, after a hearing, that a company de clines or refuses to write insurance on any building because of the requirement that the value ot such building shall be agreed upon as provided by this act, the insurance commissioner shall suspend its authority to do business in this state for such a period, not exceeding one year, as he may deem advisable. Approved March 26, 1919. final on 'the part nf life insurance company, per-011. agent, tirm or corpora- Hon licensed to ! fit. iocs in th' slate to appear before said commissioni r when requested so to (,, or to prtxhii fli oath, shall subject such company, per son, agent, firm or corporation to the penalties prouded in the preceding sec tion Approved February 21, 1019, NO. 151 AN ACT TO AMEND SECTION OF THE GENERAL LAWS. KV.-l LATINti TO TIME OF FILING? ANNUAL STATEMENTS BY IX-i SURANCE COM PAN1ES. It is hereby enacted bv the GcneraU Assembly of the State of Vermont: Section I. Section 5502 of the Gen eral Laws is hereby amended so as it. read as follows : Sec. 5592. Reports of all insuranca companies shall he made annually, prior to the first day of March, for the year ending the thirty-first day of December. The insurance commissioner may, when ever in his judgment he deems it is necessary, demand an additional state ment of the affairs of any company transacting business in this state. Approved February 21, 1919. NO. 151 AN ACT TO AMEND SECTION 5523 OF THE GENERAL LAWS, RE LATING TO THE AMENDMENT OF THE ARTICLES OF ASSO CIATION OF INSURANCE COM PANIES. It is hereby enacted by the General Assembly of the btate of Vermont : Section 1. Section 5523 of the Gen eral Laws is hereby amended so as to read as follows : Sec. 5523. A corporation formed under the provisions of this chapter, or by a special act of the legislature may amend its articles of association or its charter pursuant to sections four thou sand nine hundred and one to four thousand nine hundred and four, both inclusive, provided the insurance com missioner, on petition and after such a hearing as is specified in the fifth pre ceding section, certifies that such amendment will promote the general good of the state. His certificate shall be recorded with the certificate of amendment. Approved March 14, 1919. NO. 152 AN ACT TO AMEND SECTION 5562 OF THE GENERAL LAWS, PRO VIDING THAT INSURANCE COMPANIES SHALL BE RE SPONSIBLE FOR THE ACTS OF THEIR AGENTS AND RE PEALING SECTION 553. It is hereby enacted by the General Assembly of the Stale of Vermont: Section r. Section 5562 of the Gen eral Laws is hereby amended so as to read as follows: Sec. 55(12. All companies, societies or associations licensed or authorized to do fire, accident, health, liability or workmen s compensation insurance in this state shall be responsible for the acts and neglects of the agents appointed by them, as between the companies and the applicants for insurance therein, or the insured, while in the performance of their duties as the agents of such companies. Any provisions to the con trary in any policy or contract covering property located in the state, or upon persons or corporations residents of or doing business in the state, shall be void. Sec. 2. Section 556,1 of the General Laws is hereby repealed. Approved March 14, 1919. NO. 150 AN ACT TO PROVIDE A METHOD OF FIXING THE VALUE OF BUILDINGS INSURED UNDER A POLICY CONTAINING A CO INSURANCE CLAUSE. It is hereby enacted by the General Assembly of the State of Vermont: Section 1. Whenever a fire insurance company shall write a "policy fcoveripg a building or buildings in this state and shall attach thereto the so-called co-in- NO. 153 AN ACT TO AMEND SECTION 5-77 OF THE GENERAL LAWS, EM POWERING THE INSURANCE COMMISSIONER TO HOLD HEARINGS AND SUBPOENA WITNESSES. It is hereby enacted by the General Assembly of the State of Vermont: Section 1. Section 5577 of the Gen eral Laws is hereby amended so as to read as follows : Sec. 5577. The insurance commis sioner may, for the purpose of enforc ing the provisions of the two preceding sections, and sections 5608, 5609, 5610 and 5611 of the General Laws and in substitution and amendment of section 5619 of the General Laws, issue sub poenas, examine persons, administer oaths and send for papers and records. The county court, a justice of the supreme court or a superior judge shall have power to enforce by proper pro ceedings, the attendance and testimony of witnesses and the production iud examination of books, papers, records and documents before said commissioner, and, in the case of a corporation, the. provisions of sections four thousan J nine hundred and fifty-one to four thou sand nine hundred and fifty-five., both inclusive, shall apply. Failure or re- NO. 155 AN ACT TO PROVIDE FOR UNI FORM PROVISIONS IN POLI-J CIES COVERING AGAINST! LOSS OR DAMAGE RESULTING FROM ACCIDENTS TO OR IN-j JURIES SUFFERED BY EM PLOYEES OR OTHER PER- SONS. It is hereby enacted by the General Assembly of the State of Vermont: ' bection I. A policy of insurance. covering against loss or damage re sulting from accident to, or injury suf fered bv an employee or other person. and for which the insured is liable.. shall not be issued or delivered to a person, firm or corporation resident of, or doing business in this state, until a copy of the form thereof has beeiv filed with the insurance commissioner; and it shall not be issued or delivered unless approved by said commissioner, If said commissioner adjudges that! such form does not comply with the re quirements of law, he shall forthwith give written notice to the insurer whol filed such form, specifying the reasons; for his action, and it shall be unlawful! thereafter for such insurer to issue a' policy in such form. . The action of said commissioner m tins regard shall he subject to review by writ of certiorari.) Sec. 2. Such policy shall not be sa issued or delivered : I. Unless every printed portion there- of and any endorsement or attached! papers shall be plainly printed in typei of which the face shall not be smaller! than ten point ; II. Unless a brief description there-1 of is printed on the first page and on its filing back in type of which the facel shall not be smaller than fourteen! point ; and III. Unless the exceptions of the policy are printed with the same promi nence as the benefits to which they apply. Each policy so issued and delivered! shall contain in substance the followingl conditions : The company shall pay and satisfy anv judgment that may be recovered" against the insured upon any claim cov-; ered by this policy to the extent and within the limits of liability assumed! thereby, and shall protect the insured against the levy of any execution issued upon any such judicial judgment or claim against the insured. No limitation of liability in this policy shall be valid, if, after a judgment has been rendered I against the insured in respect to his legal! liability for damages in a particular: instance, the company continues the liti gation by an appeal or otherwise, unless) the insured shall stipulate with the com-! pany, agreeing to continue such litiga-1, tion. No action shall lie against the com-, pany to recover for any loss under this policy, unless brought within one year after the amount of such loss is made certain either by judgment against the insured after final determination of the litigation or by agreement between the, parties with the written consent of the company. The insolvency or bankruptcy of the insured shall not release the company! from the payment of damages for in-! jury sustained or loss occasioned dur-, ing the life of the policy, and in case of j such insolvency or bankruptcy an action! may be maintained by the injured per- j son (or claimant) against the company under the terms nf the policy, for the amount of any judgment obtained against the insured not exceeding the limits of the policy. Payment of any judicial judgment or claim by the insured for any of the company's liability hereunder shall not bar the insured from any action or right of action against the company. In case of payment of loss and or expense under this policy, the company shall be subrogated to all rights of the insured against any party, as respects such loss and I or expense, to the amount of such payment, and the insured shall execute all papers required and shall cooperate with the company to secure to the com pany such rights. Sec. 3. Such policy shall not be SO issued or delivered if it contains a pro vision contradictory, in whole or in part to any of the provisions of this act; nor shall any endorsements or attached papers vary, alter, extend, be used as a substitute for, or in any way conflict with any of the same provi sions; suc1Ipolicy shall not be so issued or delivered if it contains any provi sion purporting to make any portion of the charter, articles of association, con stitution or by-laws of the insurer a part of the policy unless such portion of the Charter, articles, constitution or by-laws shall he set forth in full in the policy. Sec. 4. The falsity of a statement in the application for a policy covered by this act shall not bar the right to re covery thereunder unless such false statement was made with actual intent to deceive or unless it materially affected either the acceptance of the risk or the hazard assumed by the insurer. Sec. 5. The acknowledgment by an insurer of the receipt of notice given under a policy covered by this act, or the furnishing of forms for filing proofs of loss, or the acceptance of such proofs, or the investigation of a claim there under shall not operate as a waiver of any of the rights of the insurer in de fense of a claim arising under such policy. Sec. 6. An alteration of a written application for insurance by erasure, in sertion or otherwise, shall not be made by a person other than the applicant without his written consent, and a per son making such alteration without the consent of the applicant shall be fined not more than five hundred dollars. If such alteration is made by an officer of the insurer, or by an employee of the insurer1 with the insurer's knowl edge or consent, such act shall be deemed to have been performed by the insurer thereafter issuing the policy upon such altered application. Sec. 7. A policy issued in violation of the provisions of this act shall be held valid, but shall be construed as provided in this act; and when a pro V J ... .s 's..