An Act To Incorporate
The
Illinois Mutual Fire Insurance Company.

Sec[Section]. 1. Be it enacted by the ^People of the State of Illinois, represented in the^ General Assembly of the State of Illinois, That

That Benjamin F. Long,
Elias Hibbard,
Moses G. Atwood,
Alfred Dow,
Robert Smith
William H. Carlin,
Norman H. Purple,
John F. [Rague?],
J H. Woodworth

and all other persons who may hereafter become members of said company, in the manner [?] prescribed, be, and they hereby are incorporated [?] made a body politic by the name of the Illinois [Mu]tual Fire Insurance Company,” for the purpose of insuring their respective dwelling-houses, stores, shops, and other buildings, household furniture and merchandise against loss or damage by fire, whether the same shall happen by accident, lightning or any other means, excepting that of design in the [assured?], or by the work of an enemy, or insurection of the citizens of this or of any of the United States; and by that name may sue

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and be sued, plead and be impleaded, appear, prosecute and defend, in any court of record or other place whatever; may have and use a common seal; may purchase and hold such real and personal estate as may be necessary to effect the object of their association, and the same may sell and convey at pleasure, may make, establish, and put into execution such bylaws, ordinances and resolutions, not being contrary to the laws of this State, or of the United States, as may seem necessary or convenient for their regulation and government and for the management of their affairs, and do and execute all such acts and things as may be necessary to carry into full effect the purposes intended by this charter.

Sec. 2. That all and every person and persons who shall at any time become interested in said company, by [insuring?] [therein?], and also their respective heirs, executors, administrators and assigns, continuing to be insured therein, as hereinafter provided, shall be deemed and taken to be members thereof, for and during the term specified in their respective policies, and no longer, and shall at all times be concluded and bound by the provisions of this act.

Sec. 3. There shall be a meeting of said company at Alton, in the county of Madison on the first Wednesday of January, annually, or on such other day as the said company may hereafter determine at which first annual meeting shall be chosen, by a major vote of the members present, and by proxy, a board of directors, consisting of not

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more than fifteen nor less than nine members, who shall continue in office until others have been chosen and accepted the trust in their stead. In all vacancies happening in said board, whether by removing from the State, dying[,] refusing or neglecting to act for and during the space of three months successively, then and in every such case, another director shall be chosen in the place of each director so removing, dying, refusing or neglecting to act as aforesaid, by a majority of the directors present at any monthly meeting, which director so chosen shall remain in office until the next general election of directors; and a majority of the whole board shall constitute a quorum for the transaction of business. At their first regular meeting, the board of directors shall class themselves, by lot, into [three?] classes of an equal number each, the terms of whose [service?] shall respectively expire as follows: the first class in one year, the second class in two years, and the third [?] years. Special meetings of the company may [?] by order of the directors, or whenever the owner [?] tenth part of the property insured in said company shall apply to the directors, setting forth in writing the purposes for which a meeting is desired.

Sec. 4. The board of directors shall superintend the concerns of said company and shall have the management of the funds and property thereof, and of all matters and things thereunto relating, not otherwise provided for by said company. [They?]

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shall have power from time to time, to appoint a secretary, treasurer, and such other officers, agents and assistants, as to them may seem necessary, and prescribe their duties, fix their compensation, and take such security from them as they may deem necessary for the faithful performance of their respective duties. They shall determine the rates of insurance, the sum to be insured on any building not exceeding two thirds of its value, nor one half the value of personal property, and the sum to be deposited for the insurance thereof. They shall order and direct the making and issuing of all policies of insurance, the providing of books, stationary, and other things needful for the office of said company and for the carrying on of the affairs ^thereof,^ and may draw upon the treasurer for the payment of all losses which may have happened and for expences incurred in transacting the concerns of said company. They shall [?] one of their own number to act as president and [may?] hold their meetings monthly and oftener if necessar[y] [?] transacting the business of the company; and shall keep a record of their proceedings; and any director disagreeing with a majority of the board at any meeting, may enter his dissent, with his reasons therefor on record.

Sec. 5. It shall be the duty of the directors of said company, whenever the premium notes thereof shall amount to the sum of one hundred thousand dollars, to build or cause to be built or procure for the use of said company a fire proof building suitable for the transaction of business

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and for the preservation of the funds and other property belonging to said company from destruction by reason [?] of fire. And for the purpose of providing said building, the directors may assess any sum not exceeding five per cent of the amount of premium notes aforesaid in any one year: and it shall be the duty of the directors to keep said building in proper repair and to review the same in whole or in part as they may think necessary and expedient.

Sec. 6. The directors shall extend the insurance of said company to every part of this State on all the real and personal property within the same with the exceptions and provisions hereinafter enacted, not exceeding the sum of ten thousand dollars in any one risk, at such rate or rates as said directors may in view of the equity of the case and the interests of the company determine. Insurances shall be made [in all?] cases, upon the representation of the assured [contained?] [?] application therefor, and signed by him or his [attorneys?] which representation shall, in fairness and good [faith?] [?] all the material circumstances within his knowledge [?] may effect the risk. Provided that in case of any loss [?] damage by fire the valuation of the property at the [time?] of such loss or damage shall be determined by the [?] of impartial men as herein after provided.

Sec. 7. Books of accounts, written securities or evidence of [?] title deeds, manuscripts, or writings of any description, money or bullion, shall not be deemed or taken to be objects of insurance in said company. Curiosities, jewels, [?]

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musical instruments, plate, paintings, sculptures, statuary, watches, gold or silver ware of any kind, shall not be deemed to be included in any policy of insurance, unless those articles or any of them form part of the usual and regular stock in trade of the assured, or are particularly specified in the policy. Breweries, chemical establishments, bleaching houses, oil mills, the contents of either of them, alcohol, aquafortis, gun powder, spirituous liquors, tar, turpentine, varnish, or any other trades, ware or merchandize which may hereafter be excluded by said company ^at any annual meeting shall never be deemed insurable by directors of said Company^ nor any policy issued thereon.

Sec. 8. Every person who shall become a member of said company by effecting insurance therein, shall before he receives his policy, deposite his promisory note for such sum or sums of money as shall be determined by the directors, a part, not exceeding ten per cent. of which note shall be immediately paid for the purpose of discharging the incidental expences of the [institution?], and the remainder of said deposite note shall be [payable?] in part or in the whole, at any time when the directors shall deem the same requisite for the payment of losses, or other expenses; and at the expiration of the term of insurance, the said note, or such part of the [said?] as shall remain unpaid, after deducting all losses and expenses occurring during said term, shall be relinquished and given up to the signer thereof.

Sec. 9. Every member of said company shall be and thereby is bound to pay his proportion of all losses and expenses happening or accruing in and to said company, and all buildings insured by and with said company,

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together with the right, title and interest, of the assured to the lands on which they stand, shall be pledged to said company; and the said company shall have a lien [?] against the assured, during the continuance of his, her, or [their] policies.

Sec. 10. In cases of any loss or damage by fire, happening to any member upon property insured in and with said company, the said member shall give notice thereof in writing, to the directors, or some one of them or to the secretary of said company within thirty days from the time such loss or damage may have happened; and the directors upon a view of the same, or in such other way as they may deem proper, shall ascertain and determine the amount of said loss or damage: and if the party suffering is not satisfied with[?] determination of the directors, the question may be submitted to referees, or the said party may bring an action against said company for said loss or damage, at the [?] to be holden in and for the County of Madison [?] afterwards, unless said court shall be holden [?] days after said determination; but if holden [?] [...?] that time, then at the next court holden in said [county] thereafter; but if holden within that time then at the[?] court holden in said county thereafter; and if upon [?] of said action a greater sum shall be recovered than the amount determined upon by the directors the party suffering shall have judgement therefor against said company, with interest thereon from the time said loss or damage happened,

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and costs of suit, but if no more shall be recovered than the amount aforesaid, the said party shall become non-suit, and the said company shall recover their costs: Provided however, That the judgement last mentioned shall in no wise effect the claim of said suffering party to the amount of loss or damage as determined by the directors aforesaid; and provided also, that execution shall not issue on any judgement against said company until after the expiration of three months from the rendition thereof.

Sec. 11. The directors shall, after receiving notice of any loss or damage by fire sustained by any member, and ascertaining the same; or after the rendition of any judgement as aforesaid, against said company for such loss or damage, settle and determine the sums to be paid by the several members thereof, as their respective proportion of such loss and publish the same in such manner as they may ^shall^ see fit, or as the by-laws may have prescribed; and the sum to be paid by each member shall always be in proportion to the original amount of his premium note or notes, and shall be paid to the treasurer within thirty days next after the publication of said notice. And if any members shall, for the space of thirty days after such notice neglect or refuse to pay the sum assessed upon him, her, or them, as his, her, or their, proportions of any loss as aforesaid, in such a case the directors may sue for and recover the whole amount of his, her, of their deposite note or notes with costs of suit; and the money thus collected shall remain in the

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treasury of said company, subject to the payment of such loss and expenses as have or may thereafter [accrue;?] and the ballance, if any remain shall be returned [to the?] party from whom it was collected, on demand; after [?] days from the term for which insurance was made.

Sec. 12. If it shall ever so happen that the whole amount of deposite notes should be insufficient to pay the loss occasioned by any one fire, in such case the sufferers insured by said company, shall receive, towards making good their respective losses, a proportionate dividend of the whole amount of said notes, according to the sums by them respectively insured; and in addition thereto, a sum to be assessed on all the members of said company, [not] exceeding fifty cents on every hundred dollars by [?] respectively insured, and the said member shall not be required to pay for any loss occasioned by fire at [any?] one time, more than fifty cents on each [hundred dollars?] insured in said company, in addition to the [?] of his deposite note, not more than that amount[?] any such loss after his said note shall have[?] in and expended: but any member upon payment of the whole of his deposite note, and surrendering his [?] before any subsequent loss or expense has occurred be discharged from said company.

Sec. 13. Said company may make insurance for any time not exceeding ten years, and any policy of insurance, issued by said company, signed by the

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president and countersigned by the secretary, shall be deemed valid and binding on said company, in all cases where the assured has a title in fee simple, unincumbered, to the building or buildings insured, and to the land covered by the same; but if the assured have a less estate therein, or if the premises be incumbered, the policy shall be void, unless the true title of the assured, and the incumbrances on the premises, be expressed therein.

Sec. 14. The directors shall settle and pay all losses within three months after they shall have been notified as aforesaid, unless they shall judge it proper within that time, to rebuild the house or houses destroyed, or repair the damages sustained, which they are impowered to do, in convenient time[.] Provided, they do not lay out and expend in such building or repairs more than the sum insured on the premises; but nor [?] it to be made, in estimating damages, in any case, [?], historical or landscape painting, stucco or carved [?] are the same to be replaced if destroyed by fire.

Sec. 15. When any house or other building shall be [alienated?] [?] or otherwise, the policy thereupon shall be void, and be surrendered to the directors of said company, to be cancelled, and upon such surrender the assured shall be entitled to receive his, her, or their deposite note, upon the payment of his, her, or their, proportion of all losses and expenses that have accured[accrued] prior to such surrender: Provided, however, that the grantee or alienee, having the policy assigned to him, may have the same ratified and confirmed to him, her, or them,

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for his, her, or their own proper use and benefit, upon application to the directors, and with their consent, within thirty days next after such alienation, on giving proper security, to the satisfaction of the said directors, for such [part?] of the deposite or premium note, as shall remain unpaid; and by such ratification and confirmation the party [causing?] the same shall be entitled to all the rights and privileges and subject to all the liabilities to which the original insured was entitled and subjected under this act.

Sec. 16. If any alteration should be made in any house or building, by the proprietor thereof, after insurance has been made thereon, with said company, whereby it may be exposed to greater risk or hazard from fire than it [was?] at the time it was insured, then, and in every such [?] the insurance made upon such house or building [?] be void, unless an additional premium and deposite [?] such alteration, be settled with and paid to the [?] but no alteration or repairs in buildings [?] such risk or hazard, shall in any wise affect the insurance previously made thereon.

Sec. 17. In case any building or buildings, situation upon leased lands, and insured by said company, be destroyed [by] fire, and the owner or owners thereof shall prefer to [receive?] the amount of such loss in money, in such case the directors may retain the amount of the premium note given for the insurance thereof until the time for which insurance was made shall have expired; and at the expiration thereof the assured

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shall have the right to demand and receive such part of of said retained sum or sums as has not been expended in losses and assessments.

Sec. 18. If insurance on any house or building shall be and subsist in said company, and in any other office, or from and by any other person or persons, at the same time, the insurance made in and by said company shall be deemed and become void, unless such double insurance subsist, by and with the consent of the directors, signified by endorsement on the back of the policy, signed by the president and secretary.

Sec. 19. The company hereby created shall not be concerning in any trade or other business, except the insurance of property ag against loss or damage by fire; nor shall said company by any possible construction of the powers granted in this act, exercise any banking privileges whatever; but this act shall be deemed [and taken?] to be a public act, and shall be liberally construed to affect the ends and purposes hereby intended and contemplated.

Sec. 20. The directors of said company shall not make more than one assessment for losses in any one year; and in order that such assessment may be made payable at the annual meeting of the company, the directors are authorized, in case of any loss or damage by fire, to borrow such sum or sums of money as may be required to pay such loss or damage: and in making the annual assessment, the interest accruing on money borrowed, and also all necessary incidental expences, shall be included in such assessment.

Sec. 21. Each and every member of said company [?] be entitled to, and allowed an examination of the [books?] papers and general transactions of said company, upon application therefor to the secretary.

Sec. 22. It shall be the duty of the directors to make an annual report of the condition, progress and affairs of said company, a copy of which report shall be furnished to the General Assembly.

Sec. 23. The individuals named in the first section of this act shall be, and they hereby are, constituted a board of directors for said company, to serve as such until the first annual election of directors therein provided for. They shall have power, if they think fit, to [make?] up their number to fifteen, as allowed in the third [section?] of this act, from among the members of said company and all the vacancies which may occur in said [?] by death, resignation, removal, or refusal to [?] by the remaining members of said board; and [?] of their number at any time, shall constitute [?] for the transaction of business. They may call the first [?] of the members of said company, at any suitable [time?] and place, in Alton aforesaid, by advertisement in [the?] several newspapers printed in said town, giving at least ten days notice of the place, time, and design of the meeting. They may make and establish by-laws for the government of said company until the first ^annual^ meeting thereof, and may transact any business necessary and proper to carry into effect the

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provisions and intentions of this act: Provided however, that no policy shall be issued by same company, until his Excellency, the Governor of the State, shall have made proclamation that application has been made for insurance in said company on fifty thousand dollars at least, which notice shall be given him by the directors.

Sec. 24. This act shall take effect from and after its passage.