376.020. Various companies defined. - Missouri Statutes

Various companies defined.

376.020. Corporations doing the business mentioned in section 376.010,which are owned and controlled entirely by the stockholders, and in neitherthe management nor the profits of which the policyholders participate, shallbe considered "joint stock companies"; such corporations having no capitalstock, and in the management and profits of which the policyholders aloneparticipate shall be considered "mutual companies"; and such corporationshaving a capital stock, but in the management or in the profits of which, orin both, the policyholders or any class or classes of policyholders are or maybecome entitled to participate, shall be considered "stock and mutualcompanies"; provided, that any association consisting of not more than onethousand five hundred citizens, residents of the state of Missouri, all livingwithin the boundaries of not more than three counties in this state, saidcounties to be contiguous to each other, organized not for profit and solelyfor the purpose of assessing each of the members thereof upon the death of amember, the entire amount of said assessment, except ten cents paid by eachmember, to be given to a beneficiary or beneficiaries named by the deceasedmember in his or her certificate of membership, said certificate of membershipto be issued by such association, shall not be construed to be a lifeinsurance company under the laws of this state, but provided, however, noofficer, trustee or other employee of such association shall receive anyremuneration for any services rendered, except the secretary of suchassociation who shall be permitted to charge each member, for his services andfor the cost of collecting the assessment, not more than ten cents for eachassessment levied; and provided further, that said association may ifnecessary assess not more than twenty-five cents per member in any one year tobe used only to purchase necessary supplies, pay court costs and attorneyfees; and provided further, that whenever the director of the department ofinsurance, financial institutions and professional registration suspects orbelieves that any officer, trustee or other employee of such association is infact directly or indirectly receiving remuneration, or that the secretary ofsuch association is collecting and receiving more than herein provided for, hemay cause an examination of the books, records and other effects of suchassociation, including its officers and employees, to be made in order toascertain the true condition of affairs and whenever such examination is made,an assessment shall be levied on the members thereof, sufficient to pay thecost of such examination, but no such assessment shall be for more than onedollar per member; provided, that nothing herein shall be construed to applyto any corporation organized under the provisions of sections 377.010 to377.190, RSMo, or to any association having more than one thousand fivehundred members.

(RSMo 1939 § 5801)

Prior revisions: 1929 § 5691; 1919 § 6102; 1909 § 6896