§ 85 — Mutual fire companies; penalty for guaranty against assessments; personal liability of officers

Massachusetts § 85

• Jurisdiction: Massachusetts
• Part I: ADMINISTRATION OF THE GOVERNMENT
• Title XXII: CORPORATIONS
• Ch. 175: INSURANCE

Text

Section 85. A director or other officer of a mutual fire company who officially or privately gives a guaranty to a policyholder thereof against an assessment to which he would otherwise be liable shall be punished by a fine of not more than one hundred dollars.If the directors of any such company neglect or omit for six months to lay and collect with all practicable diligence any assessment they are required to make by sections eighty-three and eighty-four, they shall be personally liable for all debts and claims then outstanding against the company, or that may accrue until such assessment is laid and put in process of collection.If the treasurer of such company unreasonably neglects to collect an assessment made by order of the directors, and to apply the same to the payment of the claims for which it was made, he shall be personally liable to the person having such claims for the amount of the assessment, and he may repay himself out of any money afterward received for the company on account of said assessment.If sufficient property of any such company cannot be found to satisfy an execution against it, and it has property belonging to the period assessed the proceeds of which can be applied to satisfy such execution, if the directors neglect to pay the same, or neglect for thirty days after the rendition of judgment to make an assessment and deliver the same to the treasurer for collection, or to apply such assessment when collected to the payment of the execution, they shall be personally liable for the amount of the execution.If the directors of any such company are liable to pay an execution against it, the creditor may recover the same by a suit in equity or by an action at law against the directors. The director who pays an execution against the company for which he is personally liable may sue in equity for contribution any of the directors for their proportion, and also the company or the individual members thereof to the extent of their several liability to assessment therefor.