c-39 - Act respecting certain mutual companies of insurance against fire, lightning and wind

Repealed on 11 September 1985

This document has official status.

chapter C-39

Act respecting certain mutual companies of insurance against fire, lightning and wind

Repealed, 1985, c. 17, s. 95.

1985, c. 17, s. 95.

DIVISION I MUTUAL INSURANCE COMPANIES FORMED BY MUNICIPAL COUNCILS

1. The council of any rural municipality may, until 20 October 1976 make a by-law establishing a mutual insurance company in order to keep insured against accidents by fire, or fire and lightning, or fire, lightning and wind, any building erected upon taxable land within the municipality, any farm livestock, as well as any grain, hay, fodder, household furniture and agricultural implements contained in such buildings.

A mutual insurance company so established by the council of a rural municipality shall, like other companies, be subject to the formalities of a license and of registration.

R. S. 1964, c. 295, s. 40; 1974, c. 70, s. 431.

2. The owners of property insured in each mutual insurance company established under the authority of this division shall form a corporation known under the name of the “The Mutual Insurance Company of the (here inserting the name of the municipality)”, and each such company shall be under the control of the council of the municipality in which it is established.

It shall be managed by the council, and may sue and be sued, and its place of business shall be the same as that of the council.

R. S. 1964, c. 295, s. 41.

3. After the coming into force of the by-law, the council may, through the county corporation or regional county municipality exercising jurisdiction in the municipality in real estate assessment, order the assessor of that corporation or regional municipality to make, under his oath of office, the appraisal of the buildings, inserting in separate columns, on a special roll prepared for that purpose:

(1)  A succinct description of each building situated upon any taxable land in the municipality;

(2)  The value of each such building, and all information required by the council.

The council may fix, by by-law, the maximum amount of insurance which may be granted upon any kind or kinds of property which may be insured.

R. S. 1964, c. 295, s. 42; 1979, c. 72, s. 326.

4. The special roll mentioned in section 3 may be amended by the council.

R. S. 1964, c. 295, s. 43.

5. The council, after the completion of the roll, shall, at a public meeting duly convened, cause to be therein entered opposite the description and valuation of each building which it shall not deem advisable to insure, the words “objected to by the council”, and opposite the description and valuation of each building, the owner of which applies to have it insured, and which it deems advisable to insure, the word “insured”, and also the maximum amount of the insurance which it has thought fit to grant in virtue of the by-laws.

Such application shall be made in writing and be signed in presence of two witnesses.

After such meeting, the secretary, upon a similar application in writing, shall enter, opposite the description and valuation of the building which is not objected to, and the owner of which applies to have it insured, the word “insured”, and also the maximum amount of the insurance granted by the council in virtue of the by-laws.

R. S. 1964, c. 295, s. 44.

6. From the time the word “insured” is entered as aforesaid, the building shall be insured under the provisions of this division, until the council or the owner discontinues the insurance as provided by the by-laws of the company in force at the time such insurance was effected.

R. S. 1964, c. 295, s. 45.

7. Whenever the owner desires to have a building insured, of which the description and assessment are not entered upon the roll, he must cause it to be appraised by the assessor contemplated in section 3, who shall insert in the roll the description and value thereof and the maximum amount of insurance which the council has thought fit to grant in virtue of the by-laws; and if the council, at its meeting held immediately after the description and assessment of the building and the maximum amount of insurance granted are entered on the roll, do not cause to be entered, opposite the description and assessment of such building, the words “objected to by the council”, such building shall remain insured, dating inclusively from the day of such last meeting.

R. S. 1964, c. 295, s. 46; 1979, c. 72, s. 327.

8. Upon application by the owner, the secretary-treasurer may insure, under the prescribed formalities, the grain, hay and fodder, the produce of the harvest, and furniture, and also the agricultural implements contained in the buildings not objected to by the council, to the amount applied for or for which a maximum has been fixed, if the by-law establishing the insurance provides for the insurance of such articles.

R. S. 1964, c. 295, s. 47.

9. The owners of property insured as aforesaid shall be members of the mutual insurance company. They shall alone be responsible, in proportion to the amount for which each of their properties is insured, towards the company, for the amount of damage caused by fire, or by fire and lightning, or by fire, lightning and wind, as well as for all debts and obligations contracted by the said company.

R. S. 1964, c. 295, s. 48.

10. The company shall be responsible towards each of its members for two-thirds of the damage caused by fire, or fire and lightning, or fire, lightning and wind, to the buildings and moveable effects so insured, to an amount not exceeding two-thirds of the valuation of such buildings and moveable effects, as shown upon the said valuation roll, or to an amount not exceeding two-thirds of the maximum amount of the insurance if there is a by-law fixing such amount.

R. S. 1964, c. 295, s. 49.

11. The council is entitled, on behalf of the corporation, as indemnity for all costs incurred in the management of the company, including the salary of the secretary-treasurer and the amount to be paid to the county corporation or regional county municipality for the work of its assessor, to such amount as it may deem reasonable, but which shall in no case exceed ten per cent of the amount collected by it for the company.

R. S. 1964, c. 295, s. 50; 1979, c. 72, s. 328.

12. The council may, if authorized by the majority of the insured present at the meeting mentioned in section 5, levy $0.25 per $100 of the amount insured, to establish a reserve fund, and shall levy annually an amount sufficient to meet all the damages, the amount of which shall have then been established and to pay all the obligations and matured debts of the company.

This amount shall be levied by means of a tax imposed upon each building insured, in proportion to the amount of its valuation and of that of the valuation of its contents, as shown on the valuation roll, or in porportion to the amount of the insurance thereon, as the case may be.

The tax imposed in virtue of this section is assimilated to municipal taxes. It shall have the same privilege and the same rank without registration being required, and the amount, with legal interest from the time it has become due, shall be recoverable by the secretary-treasurer in the same manner as municipal taxes.

R. S. 1964, c. 295, s. 51.

13. In the event of a change in the limits of a municipality, each member of the company whose real estate is not then taxable is entitled to the reimbursement of his share of contribution to the reserve fund, upon the condition, however, that such property-owner has been insured in the company for at least five years on the 31st of December preceding the changing of the limits of such municipality.

In order to determine the portion then repayable to each member, the secretary-treasurer must divide the total insurance in force by the total of the reserve fund, including the interest accrued on the 31st of December preceding, and deliver, within a period of three months, to the member contemplated by the preceding paragraph of this section, his share of reimbursement in proportion to the amount of insurance which he had in the company on the 31st of December preceding the date of the reimbursement.

This section shall not apply to changes of limits made before the 19th of February, 1932.

R. S. 1964, c. 295, s. 52.

14. Two or more of the mutual insurance companies established under the authority of this division may enter into an agreement for the purpose of making one responsible towards the other, in proportion to the amount insured by each of them, for damages caused by fire, or by fire and lightning, or by fire, lightning and wind.

R. S. 1964, c. 295, s. 53.

15. The council may make any by-law necessary for the proper working of the company, and in particular to determine the conditions on which a building shall become insured, when and in what manner a building which is insured may cease to be insured, and in what manner a member of the company may transfer his interest in the company, and generally all other by-laws not inconsistent with this division.

The council may also, by by-law, order the issuing of an insurance certificate, provided, however, that all the by-laws of the company in force at the date of its issue be inserted at full length in such certificate.

R. S. 1964, c. 295, s. 54; 1974, c. 70, s. 432.

16. In villages, all buildings situated at a distance of less than fifty feet from each other, shall be valued separately and proportionately, in such a manner that their aggregate value shall not exceed $3 000.

R. S. 1964, c. 295, s. 55.

DIVISION II MUTUAL INSURANCE COMPANIES FORMED BY INDIVIDUALS IN A PARISH OR LOCAL MUNICIPALITY

17. (1)  Twenty-five freeholders residing in any parish or local municipality in Québec, five of whom shall be provisional directors of an association formed with the view of establishing a mutual fire insurance company, may, until 20 October 1976 establish such company for the purpose of insuring the property situated within such parish or local municipality, and also the properties outside the limits thereof, provided they be situated entirely within the county in which is situated the chief place of business of the company in the said parish or municipality, the farm live stock, as well as the grain, hay, fodder, agricultural implements and furniture in or upon the properties aforesaid, which insurance company shall be known under the name of “The Mutual Fire Insurance Company of the parish of (or of the local municipality of ” as the case may be).

(2)  In the case, however, of a change in the limits of the county in which a company is in regular operation, all policies then issued by such company to insure property situated outside the new limits of the county shall remain in force until the expiration of the term of five years from the date of the issue thereof, but subject to the right of cancellation provided by law.

(3)  All the provisions respecting mutual fire insurance associations contained in the Act respecting insurance (chapter A-32) shall apply to such companies in so far as they are not inconsistent with the provisions of this division.

R. S. 1964, c. 295, s. 56; 1974, c. 70, s. 433.

18. The said company may insure against fire, lightning and wind, or against fire, lightning or wind separately.

The company may fix rates for policies of insurance in a village, at one hundred per cent more than in a parish.

When the rate in the parish and in the village is the same, and several properties are destroyed at the same time in such village, the company need not, if the total value of the properties so destroyed exceeds the maximum fixed by the company, pay, in all, more than such maximum, which maximum shall be divided between the parties insured whose property has been so destroyed, in proportion to the amount of their insurance.

R. S. 1964, c. 295, s. 57.

19. The directors shall be members of the company and insured therein, for the time they hold office, to the amount of at least $500.

R. S. 1964, c. 295, s. 58.

20. The company may pass by-laws respecting the qualification of the persons who elect to form part thereof, and when forty persons, duly qualified according to such by-laws, have signed their names in the subscription books, and the sums subscribed, for which they have bound themselves to effect insurance, amount to $25 000 or more, such persons and those who may thereafter become members of the company, shall, by effecting insurance therein, be considered a corporation according to the provisions of this division, provided that a notice be previously given in the Gazette officielle du Québec.

R. S. 1964, c. 295, s. 59.

21. The required notices shall be published and posted at the door of the parish church after divine service in the forenoon on a Sunday or holiday immediately before the meeting, and not otherwise or elsewhere.

R. S. 1964, c. 295, s. 60.

22. Annual meetings of any such company may be held either on the day fixed by section 264 of the Act respecting insurance (chapter A-32), or any other day that may be fixed for the purpose by any by-law of the company.

The convening of the members for an annual or special general meeting shall be made by means of a notice published and posted up, at least five clear days before the meeting, at the door of the parish church, on a Sunday or feast day, in each parish in which there are members.

R. S. 1964, c. 295, s. 61; 1974, c. 70, s. 434.

23. In addition to the rights and powers granted to the company by the provisions respecting mutual insurance companies contained in this act and in the Act respecting insurance (chapter A-32), it shall also have power to make such rules and regulations as it deems necessary for the good working and proper administration thereof, and to repeal, amend or replace the same, provided, however, that no such rule or regulation be inconsistent with the laws, customs and usages in force in Québec.

R. S. 1964, c. 295, s. 62; 1974, c. 70, s. 435.

24. Each company so constituted shall have its office within the parish or local municipality in which such company is established, and at the place selected by the board of directors; provided always that so soon as the directors have selected a place for holding their office, they shall give public notice thereof on the following Sunday in the manner prescribed by section 21.

R. S. 1964, c. 295, s. 63.

DIVISION III ADMINISTRATION OF MUTUAL COMPANIES

25. The rules respecting the administration of mutual fire insurance associations contained in the Act respecting insurance (chapter A-32) apply mutatismutandis to the administration of the mutual companies governed by this act.

1974, c. 70, s. 436.

DIVISION IV SPECIAL PROVISION

26. This Act shall operate notwithstanding the provisions of sections 2 and 7 to 15 of the Constitution Act, 1982 (Schedule B of the Canada Act, chapter 11 in the 1982 volume of the Acts of the Parliament of the United Kingdom).

1982, c. 21, s. 1.

REPEAL SCHEDULE

In accordance with section 17 of the Act respecting the consolidation of the statutes (chapter R-3), chapter 295 of the Revised Statutes, 1964, in force on 31 December 1977, is repealed effective from the coming into force of chapter C-39 of the Revised Statutes.