Chile Flag
The design of the Chile flag was influenced by the flag of the United States. The Chile flag has two horizontal bands with white on top and red on the bottom. A blue square sits in the upper left corner of the flag and contains a white 5 pointed star.
The red on the Chile flag represents the blood spilled in its fight for independence. The white represents the snow covered Andes that guard the eastern border of Chile. The blue is for the color of the sky. The star represents the governmental powers as they watch over the country.
There were multiple versions of the Chile flag through history. Today's flag can be seen below:

How to Display the Chile Flag
According to Chilean law, citizens are required to display the flag on certain national holidays including independence day (September 18). If Chileans display the flag incorrectly, they can be fined by the police.
On a Pole
The flag pole must be white and the flag must hang from the
top of the pole. If the Chile flag is displayed with those of other
countries, they should all be of equal size and raised to the same height.
Also in this case, the flag should be raised first and lowered last.
Freely Hanging
The Chile flag can be displayed hanging either vertically or
horizontally from a building or wall. In both cases, the blue square
should be to the viewer's upper left:

Source: El Mercurio

