HIGHLAND MUTUAL FIRE INSURANCE
COMPANY
CONSTITUTION AND BY-LAWS
AS AMENDED SEPTEMBER 6, 2023
With a view to mutual aid in cases of
accidental and unavoidable loss by fire or lightning, we hereby form ourselves
into a company, and entering into a company, pledge ourselves to be governed by
the following constitution and by-laws:
ARTICLE 1 (Name)
This company shall be known by the name
and style of the “Highland Mutual Fire Insurance Company,” and the charter of
incorporation of this company is and shall be construed to be a fundamental
part of this constitution.
ARTICLE II (Limits)
The limits of this company shall be
Highland and Bath Counties, Virginia.
ARTICLE III (Officers)
Section 1. The officers of this company shall be not less than five
nor more than eight and shall be residents of either Highland County or Bath County,
and be elected annually by the stockholders. In compliance with VA Code
38.2-2509, all directors shall hold a policy of insurance in force in this Company.
The directors shall elect from their own membership a president,
vice-president, and a secretary-treasurer, and fix their salaries. At any
regular or special meeting of the Board of Directors, the board may elect
officers to fill vacancies.
Section 2. It shall be the duty of the president to preside at all
meetings of the company and board; to sign all policies and other official
papers issued by the company or the board; and to perform such other duties as the
constitution may require. The President may at any time in his discretion call
special meetings of the directors or whenever four directors shall in writing
request that he do so.
Section 3. The vice-president shall perform the duties of the
president in his absence.
Section 4. The secretary-treasurer and/or his/her designee (such as a
clerk)
shall keep a correct list of the names of all
members of the company, with the amount of insurance, number and date of
policy, the cash valuation of the property, and post office address; to file
and safely keep all applications on which policies have been issued; to write
and countersign all policies and other official papers issued by the company,
or the board; to keep an accurate record of all proceedings; to conduct the
correspondence of the company, and perform such other duties as the
constitution and by-laws may require. As treasurer, he shall receive and safely
keep all money belonging to the company, and promptly pay out the same as
authorized by the board; an annual account of the receipts and disbursements
shall be kept, these to be examined, approved by the board and embodied in
their annual report; and perform such other duties as the constitution and
by-laws may require.
Section 5. It shall be the duty of the board of directors to audit all
claims against the company, including necessary operating expenses; to approve
or reject applications for insurance; to adopt forms of policies and
applications; to make a report of the condition of the company at each annual
meeting; once in every three months; to appoint a director if a vacancy occurs;
and to perform such other duties as the constitution may require. They shall
act and transact the business of the company in strict accordance with this
constitution by means of a simple majority vote. They shall be and are hereby
empowered to make all such special rules to be termed by-laws, and the same to
amend or revoke, as they may judge necessary to promote the object and designs of
the company; provided that they shall make no by-laws inconsistent with this
constitution. When in the interest of the company to do so, the directors will
make an estimate of the amount which will be necessary to pay all losses,
damages, and expenses for the current year and to make up any deficiencies in
funds for the preceding year, and make an assessment upon the members sufficient
to provide such amount. If the directors deem it necessary, a safety fund may
be included in the assessment. No more than one such general assessment will be
made in any six-month period.
ARTICLE IV (Agents)
Section 1. The board of directors shall be the agents of the Company.
It shall be the duty of the agents to receive and forward to the secretary/treasurer
all applications for insurance, together with all fees; to inspect and appraise
property as hereinafter directed; to inspect fire losses and determine amount
of loss; and to render any special services directed by the board.
ARTICLE V (Membership)
Section 1. Every person who makes application for membership in this
company shall pledge himself in his application, and by his signature does
agree to be bound and governed by the constitution and bylaws of this company,
including the charter of incorporation.
Section 2. Every person upon joining this company shall thereby
obligate himself to waive, and does thereby waive, the benefit of the homestead
exemption and bankrupt laws as to the assessments of this company under this
constitution.
ARTICLE VI (Meetings)
Section 1. There shall be a meeting of the membership annually.
ARTICLE VII (Insurance)
Section 1. The company shall make insurance against loss by fire and
lightning upon dwelling houses, churches, barns, and other outbuildings and
commercial properties. No application shall be accepted for total coverage less
than $10,000. Any policy less than
$10,000 written before 9-4-2019 will be grandfathered in and remain in force.
Section 2. All property insured shall be classified as follows:1st
Class: Brick, stone, or wooden buildings, with metal, slate, slate surfaced
asphalt, or asbestos roofs. 2nd Class: Barns, other
outbuildings, and unoccupied dwellings. 3rd Class: Mobile homes.
Section 3. The contents of all buildings which are insured in this company
may also be insured and all such contents so insured shall be classified with
classification of buildings in which contents are located.
Section 4. Contents shall not cover accounts, bills, currency, deeds,
evidences of debt, money or security, bullion, manuscripts, jewels, metals, pictures,
or paintings.
Section 5. No contents will be insured unless same are the contents of
buildings insured in this company.
Section 6. The company will not pay any damage to electrical
appliances or wiring caused by electrical surge or electrical malfunction. It will
pay for damage to electrical appliances or wiring caused by lightning at their
depreciated value.
Section 7. Any separate risk in excess of $300,000.00 will be subject
to approval of the re-insurer.
ARTICLE VIII (Application for
Insurance)
Section 1. Every applicant for membership in this company shall sign an
application and deliver the same to an agent of the company together with an application
fee of $15.00 and a premium fee at rates set by the Board of Directors. The
agent shall present this to the Board of Directors for approval at their next
meeting.
Section 2. The agent of the company shall always proceed first to inspect
and appraise every building or a fair cash value, on which insurance is
applied, assisted by the applicant.
ARTICLE IX (Approval of Insurance)
Section 1. Every application for insurance shall be subject to the
approval or rejection of the Board of Directors. When approved the secretary shall
issue a continuing policy of insurance from the day of said application.
Section 2. When an application for insurance is rejected the
secretary shall mark it rejected and return it, with all fees, to the agent who
received it. The agent shall immediately return applications and all fees to
the applicant. If an applicant makes true statements in his application and has
paid all fees, the property is insured until rejected by the Board of
Directors. No insurance in any case shall be considered as binding until the
actual payment of the premium fee by the applicant.
Section 3. When a policy holder wishes to make changes, a new
application shall be written and fees collected.
ARTICLE X (Policies)
Section 1. In accepting a policy issued by this company the member insured
hereby agrees to all terms of the Constitution and by-laws and application.
Section 2. If a member sells or conveys the property insured, the
insurance is canceled at and from the date of said sale.
Section 3. If a member sells or conveys any building or buildings
being a part of the property included in a policy of this company, the
insurance on the part sold shall lapse and cease at the date of said sale; and
the holder of the policy shall present it to the Secretary, who shall in
writing thereon state the fact of said sale, and show the reduced amount of
said policy.
Section 4. It shall be the duty of every member to notify the Board
of any change or removal about to be made by him as would increase the risk or
diminish the value of property insured by this company; and the Board may,
during the progress of any such change, suspend a policy or insurance and cause
it to revive on the completion and approval of said change, or issue a new
policy. If any member fails to give notice and the property involved in the increased
risk should burn or in any part thereof, he shall not receive any pay unless it
shall appear beyond all doubt to the Board of Directors, and they so decide
that the burning was in no way caused by the increased risk.
Section 5. Additional insurance may be carried with another company provided
the amount of insurance and the company is listed on the application; however,
there will be prorated liability. This company shall not be liable for a
greater proportion of any loss than the amount hereby insured shall bear to the
whole insurance whether collectible or not.
Section 6. This company reserves to itself the right to cancel any
policy of insurance whenever it shall become expedient, for good and sufficient
cause, in the judgement of the Board of Directors, to terminate any insurance; and
in such case notice of intention to do so, shall be given the assured or the
representative of the insured five days before cancellation.
Section 7. Any member may withdraw from the company by giving thirty
days’ notice to the secretary and paying all claims existing at the time
against him, and upon withdrawal he will be paid an equitable portion of any
premium fee or assessment which he had paid in advance. For this purpose the
Company will not be required to set up an unearned premium reserve for any
purpose.
ARTICLE XI (Uninsurable)
Section 1. No insurance shall be issued unless the applicant has a
good title and the property is not heavily encumbered by liens or debts. The safe
limit shall be judged by the Board of Directors.
Section 2. Any misrepresentation or concealment in an application for
insurance in this company, or any attempt at fraud or evil practice after insurance
is effected, or neglect to use all reasonable endeavor to save property on fire
or endangered by fire shall cause a forfeiture of all claim on this Company
under any insurance which has been affected.
ARTICLE XII (Claims)
Section 1. The insured shall give immediate written notice to this company
of any loss and protect the property from further damage, furnish a complete
inventory of the destroyed damaged and undamaged property, showing in detail
quantities, costs, actual cash value and amount of loss claimed.
Section 2. A fire claim shall be presented on approved form at a
regular meeting of the Board of Directors, however, a claimant may request a
special meeting of the Board of Directors to consider a claim. The Board shall,
upon proper and full proof of the loss according to the conditions of the
policy, fix the amount to be paid. When the destroyed or damaged property is
encumbered by a lien of any sort, the Board of Directors must proceed first to
satisfy the lien before paying anything to the policy holder.
Section 3. Every person on becoming a member of this company shall
agree to submit to arbitration any claim arising against the company, and the
president, with the consent of the Board of Directors, shall be authorized to
make and sign all agreements he may judge proper in regard to any matter of
dispute.
Section 4. No legal proceedings of any kind shall be sustained against
the Company in any court unless the same be instituted within twelve months
from the time the claim arose. In the event such proceeding be instituted after
that time a conclusive presumption shall arise against the validity of the
claim.
ARTICLE XIII (Losses)
Section 1. This Company shall not be liable to make good any loss or damage
by fire which may happen by means of any war, invasion, insurrection, riot or
civil commotion, or of any military or usurped power, neglect of the insured to
use all reasonable means to save and preserve the property.
ARTICLE XIV (Assessments)
Section 1. The assessment shall be made upon every person insured by
the Company;
Section 2. Each member shall be notified of the amount of his assessment.
Section 3. If any member shall fail to pay his premium within 60 days
after proper notification, the policy shall be cancelled.
ARTICLE XV (Dissolution)
Section 1. All policies shall be null and void and this Company shall
be dissolved when there are less than 100 members or as directed by the BOI.
ARTICLE XVI (Laws)
Section 1. Any state law affecting mutual fire insurance company not embraced
in by-laws to be enforced.
ARTICLE XVII (Amendments)
Section 1. Any alteration or amendment to this constitution shall be offered
at annual meeting, and shall require a majority vote for its adoption, and when
so adopted the altered or amended constitution shall be binding as before upon
every member of the Company.
Additional Information as required
by the General Assembly in June of 2012
Highland Mutual Fire Insurance Company
will provide up to $250.00 for cost of services to each Volunteer Fire
Department not fully funded by real estate or other property taxes. Highland
Mutual Fire Insurance Company does not provide earthquake coverage.
Privacy Notice Highland Mutual Fire Insurance Company does not collect or
release any private or unauthorized information without the specific written
consent of the policy holder.
