HIGHLAND MUTUAL FIRE INSURANCE
COMPANY
CONSTITUTION AND BY-LAWS
AS AMENDED SEPTEMBER 5, 2018
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. It shall be necessary that at least
51% of directors 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. 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
$5,000.
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 initiation 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.
