806! ‘12 NYE “1V¥d "AN ‘osnoesAg SiO4eW ame 1a 6 6s eee STATE OF OHIO Insurance Laws IN FORCE 1918 } me \ : re vn STATE OF OHIO INSURANCE LAWS IN FORCE 1918 The Section numbers correspond to the sectional numbers of the General Code of Ohio CoLuMBuUs, OH10: THE.F, J. HEER Printinc Ca 1918 Bound at the State Bindery. * 4 2 i A ; 19, M y ee - 3 ; ange asee ¢ wuere Odi tis 7 ‘ . ah, te te veeuver oe eer s att, : . . * : £6 9* ie . 5 ee 7 a f P © < eeere a ' * . ' pain . i * e ' : & r ‘ ' ea s ; : , SECTION 615. 616. 617. 2. ee 644. 644-1. 644-2. 644-3. SECTION 615. CHAR TE Rez: SUPERINTENDENT OF INSURANCE. Superintendent of insurance, appoint- ment and term. Bond. Duties of superintendent. Deputy superintendent. Bond of deputy. Duties of deputy. Warden. Clerks and experts. Powers to compel attendance of wit- nesses, Salary and compensation Instruments under seal of the super- intendent. Examination of insurance companies. Authority of examiners. Expenses of examiners. Authority and power of superintend- ent of insurance, Duty of bank officers. Penalty. Unsound companies, Restrictions on unsound companies. Action by attorney general. Dissolution of unsound companies. (To what corporations, etc., act ap- plies). Superintendent to take charge of property, in certain cases; attorney- general to represent superintendent. Injunction; appeal. Order of liquidation. Special deputy, clerks, counsel. Rules and regulations. Report of special deputy. Unpaid losses are preferred claims. Authority of unsound insurance com- pany revoked. Annual valuation of policies. When valuation of an officer of an- other state shall be received. When valuation of an officer of an- other state shall not be received. When valuation of an officer of an- other state or country shall be received. Securities to be deposited with state treasurer. Sale and distribution of securities of defaulting companies. Notice to claimants, Procedure in such case. Agents’ license. Solicitors’ license. Brokers’ license. Revocation. etc.; special The governor, with the advice and con- sent of the senate, shall appoint a superintendent of insur- ance, who shall serve for a term of three years and have an SECTION 644-4. Commission not allowed to any per- son not licensed. 644-5. Provisions of Section 654-1 and Sec- tion 5438 not modified or repealed. 645. When non-residents may not act as agent. 646. Certificate of compliance. 647. Copy of certificate to be filed with county recorder. 648. Publication of certificate. 649. When newspaper deemed of general circulation. 660. Certificate as to circulation of news- paper. ; 651. Report of publication by foreign com- pany. 652. Penalty for failure to make publica- tion. 653. Approval of publication. 654. Foreign company may appoint gen- eral and other agents. 654-1. Domestic companies must _ certity agents. 6565. Discontinuance of business by life in- surance company. 656. Discontinuance of companies other than life. 657. Fees of superintendent. 658. Retaliatory provision. 659. Forms of statements to be furnished. 660. Licenses to solicit certain insurance. 661. ee. 662. Affidavit to be filed before issuing such insurance. 663. Separate accounts. 664. Bond. 664-1. Unauthorized insurance company pro- vision; tax of 5%. 664-2. Penalty. 664-8. (Citizens, etc, exempt from pro- visions). 665. Insurance business must be authorized. 666. Insurance of burial and funeral ex- enses. _ 667, hen certificate shall expire. 668. How certain provisions shall apply. 669. To what associations insurance laws shall not apply. 670. Se a of this chapter shall apply. 671. Annual report of superintendent. 672. Penalty. 678. Forfeiture. 841 Fire Marshal’s tax. 1465-101. Workmen’s Compensation insurance barred. Superintendent of insurance, appointment and term. office at the state Capitol. No person shall be appointed to such office who has any official connection with an insurance company, owns any stock therein, or is interested in the business thereof, except as a policy holder. 266, 270.) Section 616. Before entering upon the discharge of CR St Sees. Bond. the duties of his office, the superintendent of insurance shall 3 Duties of su- perintendent. Deputy super- intendent. Bond of deputy. Duties of deputy. Warden. Actuary, clerks and experts; compensation. Powers to com- pel the attend- ance of wit- nesses. 4 give a bond to the state in the sum of one hundred thousand dollars with two or more sureties approved by the governor, conditioned for the faithful discharge of the duties of his office. Such bond, with the approval of the governor and the oath of office indorsed thereon, shall be deposited with the secretary of state and kept in his office. (R. S. Sec. 267.) SecTION 617. The superintendent of insurance shall see that the laws relating to insurance are duly executed and enforced. When violation of a law relating to insur- ance is reported to him, he shall take or cause to be taken the testimony under oath of any and all persons supposed to have knowledge of such violation, and cause such tes- timony to be reduced to writing. If of opinion that there is sufficient evidence, he shall cause the person suspected of such violation to be arrested and charged with such offense, and furnish the proper prosecuting attorney all information obtained by him, the names of witnesses and a copy of all material testimony taken in the case. (R. S. Sec7e6s,) Section 618. The superintendent of insurance may appoint a deputy superintendent who shall have the same qualifications as the superintendent and whose appoint- ment shall be evidenced by a certificate under the official seal of the superintendent. (R. S. Sec. 269.) Section 619. Before entering upon the discharge of the duties of his office, the deputy superintendent of in- surance shall give a bond to the superintendent in the sum of ten thousand dollars with two or more sureties ap- proved by the superintendent, conditioned for the faithful discharge of the duties of his office. (R. S. Sec. 269.) SECTION 620. Subject to the control of the superin- tendent of insurance, the deputy superintendent shall have power to perform the duties of his principal, except that during the absence or inability of the superintendent such deputy shall have the powers and perform the duties of the superintendent. (R. S. Sec. 269.) SECTION 621. The superintendent shall appoint a war- den who shall investigate all reported violations of law re- lating to insurance. SECTION 622. The superintendent of insurance may employ, with the approval of the governor, an actuary and such additional clerks as the prompt dispatch of business requires, and skilled and competent persons to examine and report the business and affairs of insurance companies. The compensation of such deputy superintendent, actuary, war- den, clerks and examiners shall be fixed by the superintend- ent with the approval of the governor. SECTION 623. The superintendent of insurance, or when directed by him under his official seal, the deputy superintendent or warden, may summon and compel by 2 order or subpoena the attendance of witnesses to testify in relation to any matter, which, by the laws of this state relat- ing to insurance, is the subject of inquiry and investigation, and require the production of any book, paper or document pertaining to such matter. For such purpose they shall have the same power which is by law vested in justices of the peace to compel the attendance of witnesses and punish them for refusal to testify. Sheriffs and constables are re- quired to serve and return any such process, and shall re- ceive the same fees therefor as are allowed by law for like services. Witnesses shall receive the fees and mileage al- lowed in civil actions in courts of common pleas. All such fees, upon the presentation of proper vouchers approved by the superintendent of insurance, shall be paid out of the appropriation for the contingent fund of the insurance de- partment. The fees and mileage of witnesses not sum- moned by the superintendent of insurance, deputy superin- tendent or warden shall not be paid by the state. SECTION 623-1. The provisions of section 622 of the General Code, as amended by the act, relating to compen- sation, shall be deemed to supersede the provisions of any existing law fixing the salary or compensation of any such officer or employee. SEcTION 624. A certificate, assignment or conveyance executed in pursuance of law by the superintendent of in- surance with the seal of his office thereto affixed shall be received as evidence and may be recorded in the same man- ner and with like effect as a deed duly acknowledged by an officer authorized by law. In all cases copies of papers in the office of the superintendent, certified by him under the seal of his office, shall be equal to the original as evidence. (io aaec, 271; ) SECTION 625. The superintendent of insurance, or a person appointed by him for that purpose, may make an examination of the affairs of any insurance company doing business in this state. Such company, its officers and agents shall submit their books and business to such examination and in every way facilitate it. The superintendent shall make or cause to be made each year an examination of the assets of every life insurance company organized under the laws of this state, and ascertain whether such assets are invested in the manner prescribed by law at the date such investments were made, and whether the last preceding an- nual statement of assets and unpaid death claims was cor- Recta (rex os ec. 272.) SECTION 626. For the purpose of such examination, the superintendent, or other person so appointed, shall have authority to administer oaths to and examine the officers and agents of such insurance company relating to its busi- ness and affairs. If he deems it to the interest of the public, the superintendent may publish the result of such investiga- tion in a newspaper printed at the seat of government and of general circulation in the state, and also a newspaper Salary and compensation. Instruments under seal of the superin- tendent. Examination of insurance companies. Authority of examiners, Expenses of examiners. Authority and power of su- perintendent of insurance. Duty of bank officers. Penalty. Unsound com- panies. Restrictions on unsound companies. 6 printed in the county where the principal office of such com- pany is located. (R. S. Sec. 273.) SECTION 627. The actual expenses incurred in making such examination shall be paid by the treasurer of state on the warrant of the auditor of state, upon the certificate of the superintendent of insurance; but, if an examination of an insurance company is made upon the demand of the company, the expenses thereof shall be paid by such com- pany and if the laws of another state, district, territory or nation require or permit the insurance department or other authority thereof to make examinations of insurance com- panies of this state at the expense of such companies, the expenses of the superintendent of insurance of this state in making an examination of an insurance company of such other state, district, territory or nation, shall be charged to and collected from such company. (R. S. Sec. 272.) SECTION 627-1 —{ 1. The superintendent of insurance is authorized and empowered to make written requisitions upon the officers or directors of any national bank, state bank, state bank and trust company or private bank, of this state, for such information as he may require relating to the financial transactions of any of such institutions wit) any insurance company, fraternal beneficiary association or assessment association authorized to do business in this state. SECTION 627-2 — {| 2. It shall be the duty of any offi- cer or director of any such bank or trust company upon the receipt of such requisition, or within five days thereafter, to furnish to such superintendent in writing all the informa- tion called for in such requisition and in such manner and form as therein directed. 3 SECTION 627-3 — { 3. Any officer or director of any such bank or trust company who fails, neglects or refuses to comply with the provisions of section two of this act shall be guilty of a misdemeanor and on conviction shall be fined not more than $500.00 nor less than $25.00. SECTION 628. If it appears to the superintendent of insurance upon satisfactory evidence that the assets of an insurance company organized under the laws of this state after deducting therefrom all liabilities including reinsur- ance, reserve or unearned premium fund, computed accord- ing to the laws of this state, are reduced twenty per cent or more below the capital required by law, he shall require such company to restore such deficiency within such period as he designates in such requisition. (R. S. Sec. 274.) SECTION 629. If such deficiency is more than forty per cent of the capital required by law, such company shall not thereafter issue any new policies or transact any new business until it receives from the superintendent of insur- ance a license authorizing it to do business, or until so authorized by a court in a proper proceeding therein. If the deficiency is more than twenty per cent and less than forty 7 per cent of the capital required by law, and the officers of the company certify that the deficiency will be restored by the company, such company may continue business for thirty days from the date of such requisition. If at the expiration of the thirty days any portion of the deficiency is not re- stored, the company shall not thereafter issue new policies or transact new business until authorized by the superin- tendent or by the court in a proper proceeding therein. (Chistsn ec. 274.) SECTION 633. Upon default of a company to comply with such requisition of the superintendent of insurance, the superintendent shall communicate the fact to the attor- ney general, who shall apply to the court of common pleas of the county in which the principal office of the company is located for an order requiring such company to show cause why its business should not be closed. The attorney general shall give the company such notice of the pendency of the application as the court directs, and thereupon the court shall hear the allegations and proof of the respective parties, or refer the application of the attorney general to marcteree, (R..S; Sec. 276.) SECTION 634. If it appears to the satisfaction of the court that the assets of such company are reduced below the amount so required by law, or that the interest of the public so requires, the court shall decree a dissolution @f the com- pany and a distribution of its assets. A transfer of stock of a company made during the pendency of such investigation shall not release the party making the transfer from his liability for losses which have occurred previous to the Pansien., (ac 5. 5ec: 276.) SECTION 634-1 —{[ 1. This act shall apply to all do- mestic corporations, associations, societies and orders, to which any insurance law of this state is applicable; the words “corporation” or “corporations” herein shall also in- clude all such associations, societies or orders. SECTION 634-2 — 2. Whenever any such corporation (a) is insolvent; or (b) has refused to submit its books, papers, accounts or affairs to the reasonable inspection of the superintendent of insurance of this state, or his deputy or examiner; or (c) has neglected or refused to observe an order of the superintendent to make good within the time prescribed by law any deficiency, whenever its capital, if it be a stock corporation, or its reserve, if it be a mutual corporation, shall have become impaired to the extent of twenty per cent.; or (d) has, by contract or reinsurance or otherwise, transferred or attempted to transfer substantially its entire property or business, or entered into any transaction the effect of which is to merge substantially its entire property or business in the property or business of any other corporation, association, society or order, without having first obtained the written approval of the superintendent; or (e) is found, by the superintendent of insurance to be in such condition that its further transac- Action by at- torney general. Dissolution of Unsound companies. Superintendent to take charye of property in certain cases. Attorney gen- eral to repre— sent super- intendent. Injunction. Appeal, Order of liquidation. 8 tion of business will be hazardous to its policy holders, or to its creditors, or to the public; or (f) has willfully violated its charter or any law of the state; or (g) when- ever any officer thereof has refused to be examined under oath by the superintendent of insurance touching its affairs, the superintendent may, the attorney general representing him, apply to the supreme court or any judge thereof or to the courts of. appeals of Franklin county or to the court of appeals of the county in which the principal office of such corporation is located for an order directing such corporation to show cause why the superintendent should not take possession of its property and conduct its business, and for such other relief as the nature of the case and the interests of its policy holders, creditors, stockholders or the public may require. SECTION 634-3 — {| 3. On such application or at any time thereafter, such court may, in its discretion, issue an injunction restraining such corporation from the trans- action of its business or disposition of its property until the further order of the court. On the return of such order to show cause, the court shall either deny the ap- plication or direct the superintendent forthwith to take possession of the property and conduct the business of such corporation, and retain such possession and conduct such business until, on the application either of the super- intendent, the attorney general representing him, or of such corporation, it shall, after a like hearing, appear to the court that the ground for such order directing the superintendent to take possession has been removed and that the corporation can properly resume possession of its property and the conduct of its business, and such corporation shall have the right to prosecute appeal or error from such order as provided in other cases. SECTION 634-4—J 4. If, on a like application and order to show cause, and after a full hearing, the court shall order the liquidation of the business of such corpora- tion, such liquidation shall be made by and under the direction of the superintendent, who may deal with the property and business of such corporation in his own name as superintendent or in the name of the corporation, as the court may direct, and shall be vested by operation of law with title to all of the property, contracts and rights of action of such corporation as of the date of the order so directing him to liquidate. The filing or recording of such order in any record office of the state shall impart the same notice that a deed, bill of sale or other evidence of title duly filed or recorded by such corporation would have imparted. SECTION 634-5—f 5. For the purposes of this act, the superintendent shall have power to appoint, under his hand and official seal when necessary, a special deputy superintendent of insurance, as his agent, and to employ such clerks as may by him be deemed 9 necessary, and give each of such persons such powers to assist him as he may consider wise. The com- pensation of such special deputy superintendent, and clerks, and all expenses of taking possession of and conducting the business or of liquidating any such corpora- tion shall be fixed by the superintendent, subject to the ap- proval of the court, and shall, on certificate of the superin- tendent, be paid out of the funds or assets of such corpora- tion. The attorney-general shall act as counsel for the superintendent under this act and neither shall receive any compensation therefor in addition to their regular salary as fixed by law. Provided, however, that the attorney-general may, whenever it shall become necessary in the course of his duties hereunder, employ special counsel to aid him, and the compensation of such special counsel shall be fixed by the attorney-general, subject to the approval of the court and shall, on certificate of the superintendent of in- surance, be paid out of the funds or assets of such corpora- tion. SECTION 634-6—{] 6. For the purposes of this act, the superintendent shall have power, subject to the ap- proval of the court, to make and prescribe such rules and regulations as to him shall seem proper, provided, however, that summons as in other cases shall first be served upon such corporation. SECTION 634-7— {| 7. The superintendent shall trans- mit to the legislature, in his annual report, the names of the corporation so taken possession of, whether the same have resumed business or have been liqui- dated, and such other facts as shall acquaint the policy- holders, creditors, stockholders and the public with his pro- ceedings under this section; and, to that end, the special deputy superintendent in charge of any such corporation shall file annually with the superintendent a report of the affairs of such corporation similar to that required by law to be filed by such corporation. SECTION 634-8 —{/ 8. When a domestic fire insurance company, whether stock or mutual becomes insolvent, or is unable to pay in full its liabilities, unpaid losses arising from the contingencies insured against by the contracts shall, in the distribution of its assets, whether liquidation is affected (effected) by a receiver or otherwise, be deemed and treated as preferred claims over claims for return pre- miums on uncompleted contracts. But nothing in this act shall impair the obligations imposed by law upon the of- ficers of a mutual company to make assessments to pay all legal obligations of the company. SECTION 635. If it appears to the superintendent of insurance upon satisfactory evidence that the affairs of an insurance company, partnership, or association, not or- ganized under the laws of this state, are in an unsound condition, he shall revoke the authority granted to such company to do business in this state, and cause a notice Special deputy, clerks, etc. Special counsel, Rules and regulations. Report of special deputy. Unpaid losses are preferred claims. Authority of unsound in surance com- pany revoked. Annual valua. tion of policies, When valua- tion of an officer of another state shall be received. When valua- tion of an officer of another state shall not be received. Io thereof to be published in at least one newspaper published at the seat of government, and in a newspaper published in the county of this state where the general agency is located. After the publication of such notice, it shall be unlawful for the agents of such company to procure ap- plication for insurance or to issue policies. (R. S. Sec. 277.) SECTION 636. Each year the superintendent of insur- ance shall make or cause to be made net valuations of all outstanding policies, additions thereto, unpaid dividends, and all other obligations of each life insurance company transacting business in this state. For the purpose of such valuations, and for making special examinations of the con- dition of life insurance companies, as provided in the laws of this state relating to life insurance companies, and for valuing all polices of whatever description, and for any purpose whatever, the rate of interest shall be four per cent per annum, and the rate of mortality shall be estab- lished by the table known as the American Experience Table, but such valuations may be made according to the standards of valuation adopted by the company for the obligations to be valued, if the total valuation determined by any such standards for the obligations for which they have been adopted shall not be less than that determined by the legal minimum standard herein prescribed, and if such standards of valuation adopted by the company for the obligation to be valued shall not be less than the standards adopted by the company in computing its pre- miums and guarantees. (R. S. Sec. 279.) SECTION 637. When the laws of any other state of the United States authorize a valuation of life insurance policies by some designated state officer, according to the standard prescribed in the next preceding section, or ac- cording to any other standard which makes the value of the policy not less than that of the standard so prescribed, the valuation made according to such standard, by such officer of the policies and other obligations of any life in- surance company not organized under the laws of this state, and certified by such officer, shall be received as true and correct and the superintendent shall require no fur- ther valuation of such policies, if such officer accepts a like certificate from the superintendent of insurance of this state of the valuation of the policies of any life insurance company incorporated under the laws of this state. (R. S. See 279.) SECTION 638. If such officer of another state of the United States is prohibited by law from accepting the cer- tiicate of valuation of the superintendent of insurance of this state, the superintendent shall require the officers of all companies located in such state to submit to him within a reasonable time the description of the policies thereof for valuation, and shall make, or cause to be made, a valua- t'on thereof according to the standard prescribed. If such II descriptions are not submitted to the superintendent within the time fixed by him, he shall revoke the license of such company and shall net renew it until such descriptions are submitted and a valuation by him is completed. (R. S. Séc.. 279.) . Section 639. If by the laws of any other state or country an annual valuation of the policies of life insur- ance companies of such state or country is required to be made by a state officer of such state or by an officer of such country, the valuation so made by such state officer or officer of such country of the policies of any company or- ganized under the laws of the state or country, in which such valuation is made in accordance with the standards prescribed by the laws of such state or country may be accepted by the superintendent of insurance of this state, and if so accepted by the superintendent of insurance, such valuation shall stand in the place of any valuation of such policies required to be made by the superintendent of in- surance of this state. (R. S. Sec. 279.) SEcTION 640. All securities deposited with the super- intendent of insurance shall be deposited by him with the treasurer of state, and the treasurer shall not deliver such securities or coupons attached thereto, except upon the written order of the superintendent. No security shall be accepted for the deposit by the superintendent unless it is of par and market value of one thousand dollars or more. Cine Occ; Zor.) SEcTION 641. If any company, corporation, or asso- ciation required by law to make a deposit with the superin- tendent of insurance, or other state officer, to secure the contracts of such company, corporation, or association, or for any other purpose, fails to pay any of its liabilities upon such contracts, or other obligations, according to the terms thereof after the liability thereon has been de- termined, or if such company, corporation, or association, having ceased to do business within this state, leaves unpaid any such liability or has become insolvent, the attorney- general of the state, on behalf of the superintendent of insurance, or such other officer, and upon the application of any person entitled to participate in such deposit, or the proceeds arising therefrom, shall commence a civil action in the court of common pleas of Franklin county, making the company, corporation, or association, a party defend- ant, to determine the rights of all parties claiming any in- terest in such deposit, to subject the deposit to the pay- ment or satisfaction of all liabilities and to distribute such fund among the persons entitled thereto. (95 v. 480 § 1.) SECTION 642. Upon the filing of the petition in such case, the superintendent of insurance, or other officer, shall cause to be published for six consecutive weeks in three papers of general circulation within the state, one of which shall be published at the seat of government, a notice con- When valua- tion of an officer of another state or country shall be received. Securities to be deposited with state treasurer. Sale and dis- tribution ot securities ot defaulting companies. Notice to claimants. Procedure in such case. Agents’ li- cense; appoint- ment upon written notice; revo- cation or can- cellation; renewal. I2 taining a succinct statement of the object and prayer of the petition in such action, and the time within which per- sons claiming to have an interest in such fund shall be re- quired to answer. (95 v. 481 § 2.) SECTION 643. The clerk of such court shall forward a copy of such notice to the last known address of such company, corporation or association. The code of civil procedure shall govern such proceedings in so far as it is applicable, and upon the hearing of the cause, such order, judgment or decree shall be entered by the court as is deemed just and equitable. (95 v. 481 8§ 2, 3.) Section 644. No person shall procure, receive, or forward applications for insurance unless a resident of this state and duly licensed by the superintendent of in- surance. Upon written notice by an insurance company authorized to transact business in this state of its appoint- ment of a person to act as its agent the superintendent of insurance shall, if he is satisfied that the appointee is a suitable person, and intends to hold himself out in good faith as an insurance agent, issue to him a license which shall state, in substance, that the company is authorized to do business in this state and that the person named therein is the constituted agent of the company in this state for the transaction of such business as it is author- ized to transact therein. Such notice shall be upon a form furnished by the superintendent of insurance and shall be ac- companied by a statement under oath by the appointee which shall give his name, age, residence, present occupation, his occupation for the five years next preceding the date of the notice, and such other information, if any, as the su- perintendent of insurance may require, upon a blank fur- nished by him. The superintendent of insurance after the granting of such license, for cause shown, .and after a hearing may determine any person so appointed, or any person heretofore appointed as agent, to be unsuitable to act as such agent, and shall thereupon revoke such license and notify both the company and the agent of such revo- cation. Unless revoked by the superintendent of insur- ance, or unless the company by written notice to the su- perintendent cancels the agent’s ‘thority to act for it, such license and any other licen. issued to an agent or any renewal thereof shall expire on the last day of Feb- ruary next after its issue. But any license issued and in force when this act takes effect or thereafter issued, may, in the discretion of the superintendent, be renewed for a succeeding year or years by a renewal certificate without the superintendent’s requiring the detailed information re- quired by this act. A foreign company shall pay a fee of two dollars for every such license and for each renewal thereof. While such license remains in force, a foreign company shall be bound by the acts of the person named therein within his apparent authority as its acknowledged agent. 13 Section 644-1. Any agent duly authorized and li- censed as provided in the preceding section, and repre- senting one or more insurance corporations within this state, may employ such solicitors as he may desire to rep- resent him and his agency, but such solicitors shall not represent themselves, by advertisement or otherwise, as agents of insurance companies for which their employer may be the authorized agent, and such solicitors shall in all instances represent themselves only as solicitors for said authorized agent. Upon written notice by any such duly authorized and licensed agent that he has employed such person as a solicitor, the superintendent of insurance shall, if he is satisfied that such solicitor is a suitable per- son, and intends to hold himself out in good faith as a solicitor of insurance, issue to him a license in such form as may be prepared by the superintendent, and such notice shall be upon a form furnished by the superintendent of insurance and shall be accompanied by a statement under oath by the solicitor which shall give his name, age, resi- dence, present occupation, his occupation for the five years next preceding the date of the notice, and such other in- formation, if any, as the superintendent of insurance may require, upon a blank furnished by him. The superin- tendent of insurance may at any time after the granting of such license, for cause shown, and after a hearing de- termine any person so employed to be unsuitable to act as such solicitor and shall thereupon revoke such license and notify both the agent and the solicitor of such revo- cation. Unless revoked by the superintendent of insur- ance, or unless the agent by written notice to the super- intendent cancels the solicitor’s authority as such solicitor, such license and any other license issued to a solicitor or any renewal thereof shall expire on the last day of Feb- ruary next after its issue. But any license may, in the discretion of the superintendent, be renewed for a suc- ceeding year or years by a renewal certificate without the superintendent’s requiring the detailed information re- quired in this section. The agent giving such notice shall pay to the superintendent of insurance a fee of two dollars for every such license and for each renewal thereof. The issuance of a solicitor’s license shall be limited to natural persons who shall be residents of the state of Ohio. SECTION 644-2. The superintendent of insurance may upon the payment of ten dollars issue to any suitable per- ‘son resident in any other state, a license to act as an in- surance broker to negotiate contracts of insurance or rein- surance or place risks or effect insurance or reinsurance, with any qualified domestic insurance company or its agent or with the authorized agent in this state of any foreign insurance company duly admitted to do business in this state and not otherwise upon the following conditions: The applicant for such a license shall file with the super- intendent of insurance an application which shall be in writing upon a form to be provided by the superintendent, Employment of solicitors by agents; solicitor’s license; revo- cation, Broker’s license, resident and outside state. Application in writing; contents; revocation of license, When license shall be re- fused or revoked. Payment of commission, etc., except to licensed agent prohibited. 14 and shall be executed by the applicant under oath and kept on file by the superintendent of insurance. Such applica- tion shall state the name, age, residence and occupation of the applicant at the time of making application, his occu- pation for the five years next preceding the date of filing the application, and shall state that the applicant intends to hold himself out and carry on business in good faith as an insurance broker, and shall give such other infor- mation as the superintendent may require. The applica- tion shall be accompanied by a statement upon a blank furnished by the superintendent of insurance as to the trustworthiness and competency of the applicant, signed by at least three reputable citizens of this state. If the superintendent of insurance is satisfied that the applicant is trustworthy and competent and intends to hold himself out and carry on business in good faith as an insurance broker, he may issue to him the license applied for. The superintendent may at any time after the granting of a broker’s license, for cause shown, and after a hearing, determine that the licensee has not complied with the in- surance laws or is not trustworthy or competent, or is not holding himself out and actually carrying on business as an insurance broker, or is not a suitable person to act as such broker, or has placed insurance on risks in this state in companies or other insurers not authorized to transact business in thts state, and he shall thereupon re- voke the license of such broker and notify him that the license has been revoked. Such broker’s license shall ex- pire on the last day of February next after its issue, unless sooner revoked by the superintendent of insurance for cause. The superintendent of insurance shall publish a notice of the revocation of a broker’s license in such man- ner as he deems proper for the protection of the public. Brokers’ licenses issued on application as herein provided may, in the discretion of the superintendent of insurance, be renewed upon the payment of the proper fees without his requiring anew the details required in the original application. SECTION 644-3. It shall be the duty of the superin- tendent of insurance to withhold any license applied for, or revoke any license to any agent, solicitor or broker when he is satisfied that the principal use of such license is to effect insurance upon the property of such agent, broker or solicitor, or to evade or violate the provisions of section 9589-1 of the General Code. SECTION 644-4. It shall be unlawful for any insur- ance company authorized to do business in this state to pay or allow or cause to be paid or allowed for negotiating any contract of insurance on any property within the state of Ohio any commission, consideration, money or other thing of value to any person, firm or corporation not licensed in accordance with the provisions of this act. 15 Section 644-5. Nothing in this act shall be con- strued as modifying or repealing the provisions of section 654-1 and section 5438 of the General Code nor shall the provisions hereof apply to insurance companies other than companies organized or admitted for the purposes pro- vided in subdivision I. of section 9510 of the General Code, nor shall it apply to mutual protective associations nor to companies operating on the mutual or assessment plan, organized under the laws of Ohio. SECTION 645. The superintendent of insurance shall issue no license to any person as agent of an insurance com- pany if such person is a resident of a state which by its laws, prohibits residents of this state from acting as agents of insurance companies in such state, and if the superintendent is satisfied that any person holding a license as such agent is a resident of such state, he shall revoke seit license. .(R. S. Sec. 2832.) : SECTION 646. Upon the filing of each of its annual statements or as soon thereafter as practicable, the super- intendent of insurance shall issue to each insurance com- pany or association authorized to do business in this state, a certificate that it has complied with the laws of this state. Such certificate of compliance shall also contain a state- ment of the amounts of its paid up capital stock, assets, liabilities, income and expenditures for the preceding year, as shown by its annual statement for that year. The superintendent shall issue to each newly applying company or association which he finds should be authorized to do business in this state, a certificate that it has complied with the laws of this state, which certificate shall contain a state- ment of the amount of its paid up capital stock, assets, liabilities, income and expenditures as shown by a financial statement submitted by it under the oath of its officers. (ir. Set. 284.) SECTION 647. Each insurance company and associa- tion not incorporated under the laws of this state, before it does any business under authority of its certificate of com- pliance in any county of this state in which it has an agency, shall file a copy of such certificate duly certified by the superintendent with the recorder of such county. For filing each certificate of compliance and each license, the recorder shall receive ten cents. (R. S. Sec. 284.) SecTION 648. Annually, and before the time of mak- ing its report to the superintendent of insurance as here- after provided, such company or association shall publish its certificate of compliance in every county, where it has an agency, in a newspaper published and of general circula- tion in such county. (R. S. Sec. 284.) Section 649. No newspaper shall be deemed to be a newspaper of general circulation as defined in the preced- ing section unless it has been established for at least one year, is printed in the English language and has a circula- Pe Loree of act. When non- residents may not act as agent. Certificate of compliance, Copy of cer- tificate to be filed with county re- corder. Publication of certificate. When news- paper deemed of general circulation, 16 tion in the county in which it is published as/follows: In a county having at the last preceding federal census a population not more than thirty thousand, six hundred; in a county having a population of over thirty thousand and not more than fifty thousand, eight hundred; in a county having a population of over fifty thousand and not more than one hundred thousand, twelve hundred; in a county having a population of over one hundred thousand and not more than one hundred and fifty thousand, two thousand; in counties having a population of more than one hundred and fifty thousand, three thousand. (R. S. Sec. 284.) Certificate as SECTION 650. Before publication of any such certifi- ey Seer cate, the manager, editor or proprietor of a newspaper shall certify under oath on a prepared blank, furnished him on application by the superintendent of insurance, the in-- formation prescribed in the preceding section, and if such affidavit shows that such newspaper is one of general circu- lation under the provisions of such section, the superin- tendent shall deliver to him a certificate that such news- paper is one of general circulation, as defined by the pre- ceding ‘section. (R, Se See: 264.) Report of pub- SECTION 651. On or before October first of each ney heated year, each insurance company and association doing busi- ness in this state which is not incorporated under the laws thereof, shall file with the superintendent of insurance, upon blanks prepared and upon application furnished by him, a report in writing under oath of its president and secretary showing the counties in which publication of its certificate of authority to do business was made, the coun- ties in which it had agencies at the time of such publication, and the names of the newspapers in which the publication was made, with a copy of the certificate so published at- tached thereto. (R. S. Sec. 284.) Petialty. for SECTION 652. If any such company or association ee fails to comply with the laws relating to the publication of such certificate, the superintendent shall suspend its au- thority to do business in any county where such publica- tion has not been made, until such publication is made; provided that if it appears that through mistake or over- \ sight such publication has not been made in any county, such authority shall not be suspended in such county if such publication is made within a time designated by the superintendent. (R.S. Sec. 284.) Approval of SECTION 653. Publication in a newspaper shall not mce*" be approved by the superintendent of insurance unless prior to such publication he has certified that such newspaper is one published and of general circulation in the county, ! but if publication has been made in any such newspaper without such certificate and a report as herein provided filed and such certificate of the superintendent is procured within such time as he designates, publication in such newspaper shall be approved. The superintendent shall 17 _ keep a book in which shall be recorded the names of the newspapers so certified as newspapers of general circula- tion, which book shall be open to inspection, and every such certificate of circulation shall remain in force until revoked, provided that whenever he deems proper the superintendent may demand further certificates as to the circulation of any such newspaper. (R. S. Sec. 284.) SEcTION 654. By resolution of its board of directors or managers, an insurance company not organized under the laws of this state may appoint one or more general agents with authority to appoint other agents in this state. A certified copy of such resolution and appointment shall be filed with the superintendent of insurance, and agents so appointed by such general agents, shall be deemed to be the agents of such company as if directly appointed by such company. Agents for such company may be appointed in writing by the president, vice-president, chief manager or secretary thereof, and when so appointed shall be deemed to be the agents of such company as fully as if appointed by the board of directors or managers thereof. (R. S. SEC. 205.) SECTION 654-1. Every insurance company organized under the laws of this state and transacting the business of life insurance, or the business of casualty insurance, shall certify under the hand of one of its principal officers or of its duly authorized officer or agent, to the superin- tendent of insurance of this state, the names and addresses of the persons authorized by it, as its agents, to solicit or place insurance. The authority of such agent shall con- tinue until cancelled by the company by like certificate filed with the superintendent of insurance, unless the authority of the agent shall be revoked by the superintendent of in- surance. The superintendent of insurance shall record the names and addresses so certified in such manner that duly authorized agents and their respective companies may con- veniently be inspected. No person shall act as agent for such company in soliciting or placing insurance, unless the unrevoked cer- tificate of his authority is so filed with the superintendent of insurance. Upon conviction of any such insurance agent, for the violation of any insurance law of this state, the superin- tendent of insurance may revoke the authority of such agent for not more than one year and cancel his name on the records of the superintendent of insurance, and notify the agent and his company or companies of such revoca- tion; and thereafter, such agent shall not act as an insur- ance agent or transact any insurance business for or on be- half of any insurance company until new certificate or cer- tificates of his authority, by the company or companies thereafter appointing him, shall be duly filed with and ap- proved by the superintendent of insurance. 21D. Foreign com-— pany may ap- point general and other agents. Domestic in- surance com- panies to certify agents. Discontinuance of business by life insurance company. Discontinuance of insurance companies other than life. Notice. Superintendent may deliver securities to companies un- der certain conditions. Fees of su- perintendent. 18 No other license or evidence of authority of such in- surance agent shall be required, and there shall be no fee or other expense in connection with such certificates of authority. SEcTION 655. When a life insurance company doing business in this state decides to discontinue its business, the superintendent of insurance upon application of such company or association shall give notice, at its expense, of such intention at least once a week for six weeks in a paper published and of general circulation in the county in which such company or its general agency is located. After such publication the superintendent shall deliver to such company or association its securities held by him, if he is satisfied on an exhibition of its books and papers, and on an examination made by himself or by some competent disinterested person or persons appointed by him, and upon the oath of the president, or principal officer, and the sec- retary or actuary of such company, that all debts and liabilities due or to become due upon any contract or agree- ment made with any citizen or resident of the United States are paid and extinguished; but the superintendent from time to time may deliver to such company or asso- ciation or its assigns any portion of such securities on being satisfied that an equal proportion of the debts and liabilities due or to become due upon any such contract or agreement have been satisfied, if the amount of securities retained by him is not less than twice the amount of the remaining liabilities. (R.S. Sec. 286.) SEcTION 656. When any insurance company or cor- poration other than life, which has made a deposit with the superintendent of insurance, intends to discontinue its business in this state, the superintendent upon application of such company or corporation, shall give notice at its ex- pense of such intention at least once a week for six weeks in three newspapers of general circulation in the state. After such publication, the superintendent shall deliver to such company or association its securities held by him, if he is satisfied by the affidavits of the principal officers of the company and on an examination made by him or by some competent, disinterested person or persons appointed by him, if he deems it necessary, that all liabilities and ob- ligations which said deposit has been made to secure have been paid and extinguished; but the superintendent may, from time to time, deliver to such company or its assigns, under like condition, any portion of such securities on being satisfied that an equal proportion of said liabilities and ob- ligations have been satisfied, if the amount of securities re- tained by him is not less than twice the amount of the re- maining liabilities and obligations. SECTION 657. There shall be paid to the superintend- ent of insurance the following fees: By each insurance company doing business in this state ; 19 For filing copy of its charter or deed of settlement, twenty-five dollars ; For filing each statement, twenty dollars ; For each certificate of authority or license, and certi- fied copy thereof, two dollars; For each copy of a paper filed in his office, twenty cents per folio; For affixing the seal of office and certifying any paper, one dollar. By each life insurance company doing business in this state; For annual valuation of its policies, one cent on every. one thousand dollars of insurance. By foreign insurance companies doing business in this state ; For making and forwarding annually, semi-annually and quarterly the interest checks and coupons accruing upon bonds and securities deposited, twenty-five dollars each year, on each one hundred thousand dollars so de- posited. (R.-S. Secs..269; 282.) SEcTION 658. When by the laws of any other state, district, territory or nation, any taxes, fines, penalties, license fees, deposits of money, securities, or other obliga- tions, or prohibitions are imposed on insurance companies of this state doing business in such state, district, territory or nation, or upon their agents therein, the same obliga- tions and prohibitions shall be imposed upon insurance companies of such other state, district or nation doing busi- ness in this state and upon their agents. (R. S. Sec. 282.) SecTIon 659. In November of each year, the super- intendent of insurance shall furnish each insurance com- pany doing business in this state two or more printed copies of the forms of statements required by law to be made by them, and from time to time he may make such changes in such forms or such additions thereto as he deems best adopted to secure a true statement of the con- dition of such companies. (R. S. Sec. 280.) SECTION 660. The superintendent of insurance may issue licenses to citizens of this state, subject to revocation at any time, permitting the person named therein to solicit and issue fire, lightning, tornado, explosion or marine in- surance on property in this state in insurance companies not authorized to transact business in this state. Each such license shall expire on the thirty-first day of March next after the year in which it is issued, and may be then re- newed. (97 v. 157 § 1.) SEcTION 661. For each such license and renewal, the superintendent of insurance shall collect ten dollars, and such licenses and renewals shall be filed with the recorder and published annually in the county where such agent’s office is located in the same manner as certificates of com- pliance are filed and published. (97 v. 157 § 1.) Retaliatory provision. Forms of state- ments to be furnished. Licenses to so- licit certain insurance. Fee. Affidavit to be filed before issuing such insurance. Separate accounts, Bond. Unauthorized insurance company pro- vision. 20 SECTION 662. Before the person named in such license shall solicit or issue any insurance in such companies on any such property, he shall in every case file with the superin- tendent of insurance his own affidavit and the affidavit of the person, or of the president or secretary of the corpora- tion, owning the property on which the insurance is to be placed, which shall have force and effect one year only from the date thereof, that such owner is unable to pro- cure from companies authorized to do business in this state the amount of insurance necessary to protect such property. (07 douse SECTION 663. Each person so licensed shall keep a separate account of the business done under his license, a certified copy of which account he shall forthwith, on issu- ing any such policy, file with the superintendent of insur- ance, showing the amount of such insurance, the name of the owner, brief description and location of the property, gross premium charged, name of company in which the insurance is placed, date of policy and term thereof, and, also, a report in the same detail of all such policies can- celled and gross return premiums thereon. (97 v. 158 § 2.) SECTION 664. Before receiving such license such per- son shall execute and deliver to the superintendent of in- surance a bond in the sum of two thousand dollars, payable to the state, with at least two sureties, approved by the superintendent and conditioned that he will faithfully com- ply with all the requiremnts of this law, and will annually file with the superintendent of insurance in January, a sworn statement of the gross premiums charged for insur- ance procured or placed, and the gross premiums on such insurance cancelled under such license during the year end- ing on the thirty-first day of December last preceding, and at the time of filing such statement will pay to the superin- tendent of insurance an amount equal to five per cent of the balance of such gross premiums after deducting such return premiums so reported. (97 v. 157 § 2.) SECTION 664-I— {J 1. That all persons, companies, associations or corporations residing or doing business in this state that enter into any agreements with any insurance company, association, individual, firm, under- writer or Lloyd, not authorized to do business in this state, where said person, company, association or corporation shall enter into contracts of insurance cov- ering risks within this state, with said unauthorized association, individual, firm, underwriter, or Lloyd, for which there is a premium charged or collected, the said person, company, association or corporation so in- sured shall, annually on the first day of July or within ten days thereafter return to the superintendent of insurance of this state, a statement under oath of all actual cost of in- demnity and gross premiums paid or payable for the twelve months preceding on policies or contracts of insurance taken by the said person, company, association or corpora- 2iI tion and shall at the same time pay to said superintendent of insurance a tax of five per centum of the actual cost of in- demnity paid or payable to any such association, firm, or individual, or a tax of five per centum of the gross pre- miums paid or payable to any such insurance company, un- derwriter or Lloyd. All taxes collected under the pro- visions of this section by the superintendent of insurance shall be paid by him, upon the warrant of the state auditor, into the general revenue fund of the state. SECTION 664-2—{ 2. Any person, company, as- sociation or corporation failing or refusing to make the report required in section one of this act and to furnish all data and information that may be required by the superintendent of insurance to determine the amount due, shall be deemed guilty of a misdemeanor and upon con- viction, be fined not less than one hundred dollars, nor more than five hundred dollars for each offense. SECTION 664-3—J 3. No provision of this act shall be construed as extending to private citizens, firms or corpora- tions, residents of this state, who seek to provide indemnity among themselves from fire loss or other casualty, by ex- change of private contracts for protection only and not for profit. Nor shall any provision of this act be construed as extending to fraternal beneficiary associations or members thereof. SEcTION 665. No company, corporation, or associa- tion, whether organized in this state or elsewhere, shall en- gage either directly or indirectly in this state in the busi- ness of insurance, or enter into any contracts substantially amounting to insurance, or in any manner aid therein, or engage in the business of guaranteeing against liability, loss or damage, unless it is expressly authorized by the laws of this state, and the laws regulating it and applicable thereto, have been complied with. (R. S. Sec. 289.) SEcTION 666. No company, corporation or association engaged in the business of providing for the payment of the funeral, burial or other expenses of deceased members, or certificate holders therein or engaged in the business of providing any other kind of insurance shall contract to pay or pay such insurance or its benefits or any part of either to any official undertaker or to any designated undertaker or undertaking concern or to any particular tradesman or business man, so as to deprive the representative or family of the deceased from, or in any way to control them in, pro- curing and purchasing such supplies and services in the open market with the advantages of competition, unless expressly authorized by the laws of this state and all laws regulating such insurance or applicable thereto have been complied Wein os EC, 2B0,) SEcTION 667. All certificates of authority and licenses of companies, organized or admitted to do business under the provisions of the revised statutes relating to life insur- Tax of 5%. Penalty. Insurance business must be authorizea. Insurance of burial and funeral ex-— penses. When cer- tificates shal! expire. How certain provisions shall apply. To what asso- ciations in- surance laws shall not apply. How provi- sions of this chapter shall apply. Record of proceedings of superintendent. Penalty. 22 ance companies and of their agents, shall expire on the first day of April next after they are issued, and all certificates of authority and licenses of companies organized or ad- mitted to do business under the provisions of the revised statutes relating to insurance companies other than life, and of their agents, shall expire on the first day of March next after they are issued. (R. S. Sec. 284.) SECTION 668. The provisions of this chapter relating to insurance companies organized under the laws of any other state of the United States shall apply to any company organized under the laws of the United States, for any of the purposes specified in this chapter. The provisions of this chapter relating to agents of companies organized under the laws of any state shall apply to the agents of such com- panies organized under the laws of the United States. Any violation of the provisions of this chapter by any person, or agent, in the employment of any such company, organized under the laws of the United States, shall subject the of- fender to the same penalties provided by this chapter for a violation of its provisions by persons acting for similar companies organized under the laws of any other state of the United States. .CR.°S. Se022873) SEcTION 669. No law of this state pertaining to in- surance shall be construed to apply to the establishment and maintenance of individuals, associations or corporations, of sanatoriums or hospitals for the reception and care of patients for the medical, surgical or hygienic treatment of any and all diseases, or for the instruction of nurses in the care and treatment of diseases and in hygiene, or for any and all such purposes, nor to the furnishing of any or all such services, care or instruction in or in connection with any such institution, under or by virtue of any contract made for such purposes, with residents of the county in which such sanatorium or hospital is located. (R. S. Sec: 250, ) SECTION 670. The provisions herein relating to the superintendent of insurance shall apply to all persons, companies and associations, whether incorporated or not, engaged in the business of insurance. (R. S. Sec. 289.) SECTION 671. The superintendent of insurance shall keep and preserve a full record of his proceedings, includ- ing a concise statement of the condition of each insurance company or association, authorized to transact business in this state. Each year in his annual report he shall report their general conduct and condition, including the infor- mation contained in the statement required of them, ar- ranged in tabular form in two separate reports, one pertain- ing to life insurance companies and the other to insurance companies other than life. SECTION 672. Whoever violates any provision herein relating to the superintendent of insurance or any provision of an insurance law of this state, for the violation of which 23 no penalty is elsewhere provided, shall be fined not more than one thousand dollars or imprisoned not more than six months or both. (R. S. Sec. 288.) SECTION 673. Any association, company or corpora- tion which violates any provision herein relating to the superintendent of insurance or any insurance law of this state, for the violation of which no forfeiture or penalty is elsewhere provided, shall forfeit and pay not less than one hundred dollars nor more than one thousand dollars to be recovered by an action in the name of the state and on col- lection paid to the superintendent of insurance to be paid by him into the state treasury. (R. S. Sec. 288.) SECTION 841. For the purpose of maintaining the department of state fire marshal and the payment of the expenses incident thereto, each fire insurance company doing business in this state shall pay to the state in the month of November each year, in addition to the taxes required to be paid by it, one-half of one per cent on the gross premium receipts after deducting return premiums and considerations received for reinsurances as shown by the next preceding annual statement of such company made pursuant to section fifty-four hundred and _thirty- two and section ninety-five hundred and ninety of the General Code. The money so received shall be placed to the credit of a special fund for the maintenance of the office of state fire marshal. If any portion of such special fund remain unexpended at the end of the year for which it was required to be paid, and the state fire marshal so “certifies, it shall be transferred to the general fund of the state. SECTION 1465-101. All contracts and agreements shall be absolutely void and of no effect which undertake to indemnify or insure an employer against loss or liability for the payment of compensation to workmen or their dependents, for death, injury or occupational disease occa- sioned in the course of such workmen’s employment, or which provide that the insurer shall pay such compensa- tion, or which indemnify the employer against damages when the injury, disease or death arises from the failure to comply with any lawful requirement for the protection of the lives, health and safety of employes, or when the same is occasioned by the wilful act of the employer or any of his officers or agents, or by which it is agreed that the insurer shall pay any such damages. No license or authority to enter into any such agreements or issue any such policies of insurance shall be granted or issued by any public authority. Forfeiture. Tax on in- surance com- panies; credit of money. Contracts in- demnifying employer against loss or liability on account of death or injury to employe, are void. License to enter into agreement or issue any insurance morey, shall not be granted, FOREIGN INSURANCE COMPANIES. SECTION SECTION 5432. Annual statements of foreign insurance 5439. Reinsuring, etc., risk with unauthor- companies. ized foreign company. : 5433. Payment of tax to treasurer of state, 5440. Annual report required of chief officer. 6433-1. Term ‘“‘Gross Premiums’ defined for 5441. When authority of insurance company taxation purposes. revoked. 5434. paate to pay tax or make true state- | 5449 When superintendent to inspect com- : ° pany. - axes. j j ae Rete te ae oe 5443. When foreign insurance company not 5437. Deposits with superintendent of insur-— admitted 1B SHARES ance not taxable. 5444. Expenses of inspection to be paid by Annual state- ments of for- eign insurance companies. Payment of tax to treas— urer of state. Term “gross premiums” de— fined for taxa- tion purposes, company. SECTION 5432. Every insurance company incorporated by the authority of another state or government, in its annual statement to the superintendent of insurance, shall set forth the gross amount of premiums received by it from policies covering risks within this state during the preceding calendar year, without deductions for commissions, return premiums, considerations paid for reinsurance of any de- ductions whatever. It shall also set forth therein in separate items, return premiums paid for concellations and con- siderations received from other companies for reinsurances in this state during such year. If the superintendent of in- surance has reason to suspect the correctness of such state- ment he may make an examination, at the expense of the state, of the books of such company or its agents for the purpose of verifying them. (R. S. Sec. 2745.) SECTION 5433. If the superintendent of insurance - finds such report to be correct, prior to the month of November of each year, he shall compute an amount of two and one-half per cent. of the balance of such gross amount after deducting such return premiums and con- siderations received for reinsurances as shown by the next preceding annual statement and charge them to such com- pany as a tax upon the business done by it in this state for the period shown by such annual statement, which amount shall be paid by each such company to the treas- urer of state in the month of November next succeeding, All taxes so collected shall be credited to the general reve- nue fund of the state. SECTION 5433-1. For the purpose of computing fran- chise taxes, on gross premiums, to be paid under any law of this state, now or hereafter in force, by any mutual fire in- surance company authorized to do business under the laws of this state, the amount of premium deposits received b such company upon any risk within this state in excess o the net cost of insurance to the insured, shall not be in- cluded where such excess deposit is returned ratably by such company to its policy holders ; but the amount of gross or aggregate premiums received by any such company shall be deemed to be the balance remaining after deducting from the gross amount of ‘premium deposits received or 24 25 collected by it on risks in this state during the preceding calendar year ending on the thirty-first day of December, that portion of gross premium deposits returned by it to policy holders during said preceding calendar year, upon the cancellation or expiration of risks upon property situ- ated within this state. In addition to the matters of re- turn required to be made by insurance companies for the purpose of computing taxes, any such company shall also return for stich purpose in its annual statement: (a) The total gross amount of premium deposits re- ceived or collected by it on risks in this state during the preceding calendar year ending on the thirty-first day of December ; (b) The total amount of gross premium deposits re- turned to policy holders during the preceding calendar year upon cancellation and upon expiration of risks upon property situated within this state. SECTION 5434. If a company fails or refuses to pay such tax, after a statement thereof has been made and mailed to it, or if the statement required to be made by it under section fifty-four hundred and thirty-two is false or incorrect, the superintendent of insurance may revoke the license of such company doing business in this state. Upon failure or refusal to pay the tax, the superintendent of in- surance shall certify that fact to the attorney-general, who shall thereupon begin an action against the company in the court of common pleas of Franklin county, or any other county, as he may elect, to recover the amount of the tax. If such company ceases to do business in this state, it shall thereupon make report to the superintendent of insurance of the gross amount of premiums, not theretofore reported as provided in section fifty-four hundred and thirty-two, re- ceived by it from policies covering risks within this state, prior to such discontinuance of business after deducting return premiums and considerations received for reinsur- ance, not theretofore so reported, and shall forthwith pay to the superintendent of insurance a like per cent of tax thereon. (R. S. Sec. 2745.) SECTION 5435. If such company refuses to pay such tax, upon demand being made therefor, it shall be liable to the state of Ohio at the suit of the attorney-general, to a penalty of not more than five hundred dollars per month for each month it has failed, after demand therefor, to pay the tax. Service of process in such action shall be made according to the requirements of the law governing suits brought against such companies by a policy holder therein. CR: S;-Sec. 2745.) SECTION 5436. If the laws of another state, territory or nation authorize charges for the privilege of doing busi- ness therein, or taxes against insurance companies organ- ized in this state, exceeding the charges provided in this chapter, like amounts shall be charged against all insurance companies of such state, territory or nation, doing business What annual statement shall show, Failure to pay tax or make true statement. Penalty for non-payment of taxes. Retaliatory provision. Deposits with superintendent of insurance not taxable. Where policy on property in Ohio shall be placed. Reinsuring, etc., risk with unauthorized foreign com-— pany. Annual report required of chief officer. 26 in this state, instead of the charges herein provided. (R. S.38C: 2745.) | SECTION 5437. Neither insurance companies and as- sociations, incorporated by the authority of another state or government, nor the superintendent of insurance, shall be required to make returns for taxation of the deposits of such companies or associations, made as required by law, with the superintendent of insurance, for the benefit and security of policyholders; nor be governed with respect to such deposits, by the provisions of law relating to the listing of personal property or to the making of tax returns by cor- porations. (R. S. Sec. 2745.) SECTION 5438. An insurance company or agent le- gally authorized to transact insurance business in this state shall not write, place or cause to be written or placed, a policy, renewal of policy or contract for insurance upon property, situated or located in this state, except through a legally authorized agent in this state, who shall counter- sign all policies so issued and enter the payment of the premium upon his record. The writing, renewal, placing or causing to be written or placed of a policy of insur- ance, in any other manner or form is a violation of the law providing for the payment of taxes by foreign insur- ance companies doing business in the state of Ohio, as set out and provided in this chapter. Provided, that any authorized agent of an insurance company duly authorized to transact business in this state may procure the insur- ance of risks or parts of in other like companies duly authorized to transact business in this state, and may pay a commission thereon to such agent. But such insurance shall be consummated through a duly licensed resident agent only of the company taking the risk. Provided further, that any authorized agent of an insurance com- pany duly authorized to transact business in this state may accept business from such insurance brokers only as duly authorized and licensed as provided in section 644-2, and such agent may pay a commission thereon to such broker. _ SECTION 5439. No fire insurance company or associa- tion, authorized to do business in this state, shall reinsure, dispose of, cede, pool, divide or in any manner or form, re- duce a portion of its risk or liability, covering property wholly or partially located in this state, in or with a com- pany, association, person or persons, incorporated or other- wise, not authorized by law to do the business of fire insur- ance in this state, or to reinsure, or assume as a reinsuring company or otherwise, in any manner or form, the whole or part of a risk or liability, covering property wholly or partially located in this state, of or for an insurance com- pany, association, person or persons, incorporated or other- wise, not authorized by law to do the business of fire in- surance in this state. (R. S. Sec. 2745a.) _ SECTION 5440. The superintendent of insurance of this state annually, and at such time as he may see fit, shall 27 require the president or other chief officer of each company or association, to file a statement under oath, showing the names of each fire insurance company, or association, with whom or for whom liability for insurance on property located wholly or partially in this state has been reinsured, disposed of, ceded, pooled, divided, or in any manner or form reduced or increased. (R. S. Sec. 2745a.) SECTION 5441. Any company violating any of the provisions of the next three preceding sections, upon notice and satisfactory proof thereof being made to the superin- tendent of insurance of this state, shall have its authority to transact business in this state revoked for a period of not less than ninety days. Any insurance company whose license to do business in this state is so revoked, shall not be again permitted to do business in this state, until all taxes and penalties due from it have been paid, together with any expense that may be due under the provisions of this chap- ter. Such company shall only be readmitted to transact business in this state upon a complete recompliance with the laws in regard to the admission of such company. (R. S. 2500. 2745b,) SECTION 5442. When notice of a violation of any provision of the next four preceding sections is received by the superintendent of insurance, he shall forthwith in per- son, or by deputy, visit the office of the company where such contract of insurance has been written or made, and demand an inspection of the books and records thereof. Any company refusing to exhibit its books and records for his inspection shall be guilty of violating such provisions, and the penalties provided by law shall forthwith be en- forced against such company by the superintendent of in- mance H(Kn os Sel. 2745C.) SECTION 5443. When application is made by a foreign insurance company to the superintendent of insurance of this state for admission to do business in this state, it shall not be admitted until it has paid all taxes and penalties assessed against it for the violation of the laws relating to insurance. If such foreign company has been reported to the superintendent of insurance as having violated any of the laws of this state relating to insurance, he shall make or cause to be made an examination of the books and records of the corfany seeking admission, and before granting license to do business in this state, he shall require it to pay into the office of the state treasurer a penalty equal to twenty per cent of all premiums written in this state, for the six years next preceding the date of request for admission, and upon which such taxes have not already bea paid.) GR S.oSec. 2745¢.) SECTION 5444. The superintendent of insurance shall receive, as compensation for services rendered under the provisions of this chapter, his necessary expenses. Such sum shall be charged against the company or companies so visited by him, and be collected by suit in any court of competent jurisdiction. (R. S. Sec. 2745d.) When author- ity of insur- ance company revoked. When superin- tendent to in- spect compaaty. When foreign insurance com-— pany not ad- mitted in state. Expenses of inspection to be paid by company. DIVISION III. SUBDIVISION I. SUBDIVISION II. INSURANCE COMPANIES. INSURANCE Upon PERSONS. INSURANCE Upon Property AND AGAINST CER TAIN CONTINGENCIES. SuBDIVISION I. INSURANCE Upon PErsons. Standard Forms, Provisions and Prohibitions. CHAPTER 1. LEGAL RESERVE LIFE. CHAPTER I. Legal Reserve Life. CHAPTER 2. CHAPTER 3. Mutual Protective. CHAPTER 4. Fraternal. DOMESTIC, SECTION 9339. Purpose for which may be formed. 9340. Articles of incorporation. 9341. Approval by attorney-general. 9342. Opening of subscription book. ; 9343. Whole capital must be paid in and in- vested. 9844. Insurance of structures on mortgaged lands, 9345. Increase of capital stock. 9346. Deposit of securities with superintend- ent. 9347. Change of deposits and collection of interest. 9348. Deposit in excess of required amount. 9349. When company may commence business. 9350. Renewal of license. 9351. Consolidation and reinsurance. 9352. Petition to superintendent of insurance. 9353. Notice to policyholders, 9354. Commission to hear and determine peti- tion. 9355. Approval and order of commission. 9356. Costs. 9357. Accumulations, how invested. 9358. Exceptions as to investments. 9359. What real estate company may acquire. 9360. When real estate to be sold. 9361. Certain action authorized. 9362. Dividends. 9363. Annual statement. 9864. Companies heretofore organized. FOREIGN, 9365, Companies organized by congress or in other state. 9366. Other requirements of foreign com- panies, 9367. Deposit with superintendent of insur-— ance or other officer. 9368. Filing copy of charter and statement. 9369. Filing of waiver. 9370. Annual statement of foreign company. 9371. Statement as to tontine policy. 9372. Renewal certificates of authority. 98738. Deposit of foreign companies; appoint- ment of agent for service. 9374. Annual and other statement to be filed. 9375. Supplementary statements. 9376. Renewal certificates of authority. 9377. Certificates of authority to act as agent. 28 SECTION 9878. 9379. 9380. 9381. 9382. 9383. 9384. Failure to make statement, Duration of licenses. When foreign companies must appoint agents to receive service. Failure to appoint agent. Who are agents to receive service. May change securities and collect in- terest. Authority may be withdrawn in certain cases. DOMESTIC AND FOREIGN. What kind of business such companies may do. Statements as to participating and non- participating policies. Policyholders entitled to copies of ap- plications. Effect of failure to deliver copies. Copies. of. applications to accompany policies issued. Application to be in ordinary written or printed language. When false answer material. Estopped from certain defenses. - Minors contract for life insurance. May insure for benefit of widow ana children, Insurance of creditor, Premium paid in fraud of creditor. When company liable to creditor. Wife may @@sure life of husband. Policy assigned to married woman. exempt from claim . Life policies exempt. _ ; . Rights of creditors not impaired. Beneficiary in case of death of wife. Policy to defraud creditors. : Discrimination against Bi of Afri- can descent prohibited. Procedure when application of such per- sons refused. Discriminations prohibited. Rebating forbidden. 3 Violation by corporation of preceding section. Revocation for violation. Solicitor is agent of company. es Misrepresentation as to policy or divi dends, Forfeiture. 29 DOMESTIC. SECTION 9339. Any number of persons not less than thirteen, may associate and form a company to make insur- ance upon the lives of individuals, and every insurance ap- pertaining thereto or connected therewith, on the mutual or stock plan, and grant, purchase, or dispose of annuities. (R. S. Sec. 3587.) SECTION 9340. Such persons shall file in the office of the secretary of state articles of incorporation, signed by them, setting forth their intention to form a company for the purpose named in this chapter, which articles shall com- prise a copy of the charter they propose to adopt. The charter shall set forth the name of the company, which shall not be the corporate name or title used to designate any fire, life, marine, or other insurance company existing under the laws of this state, the place where it is to be located, the kind of business to be undertaken, the manner in which its corporate powers are to be exercised, the number of di- rectors or trustees, the manner of electing them and other officers, a majority of whom shall be citizens of this state, the time of such election, the manner of filling vacancies, the amount of capital to be employed, and such other par- ticulars as are necessary to explain and make manifest the objects and purposes of the company, and the manner in which it is to be conducted. Such directors and trustees must be stockholders or members, and the number thereof may be increased at the will of the stockholders represent- ing a majority of the stock, or of a majority of the mem- bers, to not more than twenty-one. (R. S. Sec. 3588.) SECTION 9341. When such articles are filed in the office of the secretary of state, and the name assumed by the company is not so nearly similar to that of any other company organized in this state as to lead to confusion or uncertainty on the part of the public, the secretary of state shall submit them to the attorney-general for examination. If found by him to be in accordance with the provisions of this chapter, and not inconsistent with the constitution and laws of the United States and of this state, he shall certify to and deliver them to the secretary of state, who shall cause them, with the certificate of the attorney-general, to be recorded in a book to be kept for that purpose. Upon ap- plication of the signers thereof the secretary of state shall furnish to them a certified copy of such articles and cer- Hicate. -. (Ka Si Sec: §3580;) SECTION 9342. When the signers of such articles re- ceive from the secretary of state a certified copy thereof, and desire to organize such company, they shall publish their intention in a paper published and having general cir- culation in the county in which the company is to be or- ganized. After the publication has been made for six weeks, they may open books to receive subscriptions to the capital stock, keep them open until the amount required by Purpose for which may be formed. Articles of incorporation. Approval by attorney— general. Opening ot subscription book. Whole capital must be paid in and in- vested. Insurance of structures on mortgaged lands. Increase of capital stock. Deposit of se- curities with superintendent. Change of de- posits and collection of interest. 30 this chapter is subscribed, distribute the stock among the subscribers, if more than the necessary amount is sub- scribed, collect the capital and complete the organization of the company. (R. S. Sec. 3590.) SECTION 9343. No joint stock company shall be or- ganized under this chapter with less than one hundred thousand dollars capital. Before proceeding to business, the whole capital shall be paid in and invested in treasury notes, in stocks or bonds of the United States, or of the state of Ohio, or of any municipality or county thereof, or in mortgages on unincumbered real estate within this state worth double the amount loaned thereon. (R. S. Sec. 3591.) SECTION 9344. If the amount loaned exceeds one-half the value of the land mortgaged, exclusive of structures thereon, such structures shall be insured in an authorized fire insurance company in any amount not less than the difference between one-half the value of such land exclusive of structures, and the amount loaned, and the policy as- signed to the mortgagee. (R. S. Sec. 3591.) SECTION 9345. When in the opinion of the board of directors thereof, a company organized under any law of this state, requires a larger amount of capital than that fixed by its articles of incorporation, if authorized by the holders of two-thirds of the stock, they shall file with the secretary of state a certificate setting forth the amount of the desired increase, and thereafter the company shall be entitled to have the increased amount of capital fixed by the certificate, which shall be invested as required by the pre- ceding two sections. (R. S. Sec. 3592.) SECTION 9346. Any such company may invest its capital in such stocks, bonds, or mortgages, and change and invest it or any part thereof in like manner, at pleasure. But no company shall commence business until it has de- posited with the superintendent of insurance at least one hundred thousand dollars, in such stocks, bonds, and mort- gages, or one or more of them, duly made or assigned to the superintendent in trust for the purposes mentioned in this chapter. When a mortgage of real estate is assigned to the superintendent, the assignment shall be immediately entered in the records of the county in which the real estate is situated, the fee for the recording of which shall be paid by the company. (R. S. Sec. 3593.) SECTION 9347. The superintendent of insurance shall hold such securities as security for policy holders in the company; but so long as any company so depositing con- tinues solvent he shall permit it to collect the interest or dividends on such securities, and from time to time to with- draw them, or a part thereof, on depositing with him other securities of the kinds heretofore named, and of equal value with those withdrawn. (R. S. Sec. 3594.) 31 SECTION 9348. In case a company making or main- taining such deposit, through inadvertence or by reason of not having securities in such denominations as to make the exact sum of one hundred thousand dollars, deposits secu- rities in excess of the requirement, such excess shall be held in trust for the company and not for the benefit of policy holders, and shall be returned to the company mak- ing the deposit on its demand. (R. S. Sec. 3594.) SECTION 9349. When the company is fully organized and has deposited the requisite amount of securities, it shall file with the superintendent of insurance a duly certified copy of its articles of incorporation and approval of the attorney general, and a copy of its by-laws or constitution. If the superintendent finds that the company is duly organ- ized and that its capital stock has been subscribed, paid in and invested as required by law, unless he finds the name assumed by the company so nearly similar to the name of another company doing business in this state as to lead to confusion or uncertainty on the part of the public, he shall furnish the company with his certificate of such deposit, and with a license duly reciting that the company has com- plied with law and is entitled to transact the business defined in section ninety-three hundred and eighty-five, which license shall be its authority to commence business and issue policies. (R. S. Sec. 3595.) SECTION 9350. So long as the company complies with the law, the superintendent, annually, upon its application, shall renew such license. Certified copies thereof may be used in evidence for and against the company in all actions. PRS.) 5ee.' 3505.) SECTION 9351. No company organized under the laws of this state to do the business of life, accident or health insurance, either on stock, mutual, stipulated premium or assessment plan, shall consolidate with any other company, or reinsure its risks, or any part thereof with any other company, or assume or reinsure the whole of or any portion of the risks of any other company, except as hereinafter provided. Nothing herein contained shall prevent any such company from reinsuring a fractional part of any indi- vidual risk, not exceeding four-fifths thereof, in a company duly authorized to transact business in this state, or, with the permission of the superintendent of insurance, the whole of such risk; but no company, except as hereinafter provided, shall reinsure any part of any of its risks when the aggregate amount of its risks reinsured shall equal fifty per cent. of its total insurance in force. SECTION 9352. When any such company proposes to consolidate with any other company, or enter into any con- tract of reinsurance, it shall present its petition to the superintendent of insurance, setting forth the terms and conditions of the proposed consolidation or reinsurance, and praying for the approval or of any modification Deposit in excess of re~ quired amount. When com- pany may commence business. Renewal of license. Consolidation and reinsur~- ance, Petition to superintendent of insurance. Notice to policyholders. Commission to hear and deter- mine petition. ops wire and order of com- mission. Costs. Accumulations, how invested. 32 thereof, which the commission hereinafter provided for may approve. (R. S. Sec. 3597.) SECTION 9353. The superintendent thereupon ' shall issue an order of notice, requiring notice to be given by mail to the policyholders of such company, of the pendency of such petition, and the time and place at which it will be heard, and the publication of the order of notice and peti- tion, in five daily newspapers to be designated by him, at least one of which shall be published in the city of Colum-- bus, for at least two weeks before the time appointed for the hearing on the petition. (R. S. Sec. 3597.) SECTION 9354. The governor or in the event of his inability to act, some competent person resident of the state to be appointed by him, the attorney general, and the super- intendent of insurance, shall constitute a commission to hear and determine upon such petition. At the time and place fixed in such notice, or at such time and place as is fixed by adjournment, the commission shall proceed with the hearing, and may make such examination into the affairs and condition of the company as it may deem proper. The superintendent of insurance may summon and compel the attendance and testimony of witnesses and the produc- tion of books and papers before the commission. Any policy-holder or stockholder of the above named company or companies may appear and be heard in reference to such petition. (R.S. Sec. 3597.) SECTION 9355. If satisfied that the interests of the policy-holders of such company or companies are properly protected, and that no reasonable objection exists thereto, the commission may approve and authorize the proposed consolidation or reinsurance, or of such modification thereof as seems to it best for the interests of the policy- holders, and make such order with reference to the distri- bution and disposition of the surplus assets of any such company thereafter remaining, as shall be just and equi- table. Such consolidation or reinsurance shall only be ap- proved by the consent of all the members of the commis- sion, whose duty it will be to guard the interests of the policy‘holders of any such company or companies propos- ing to consolidate or reinsure. (R. S. Sec. 3597.) SECTION 9356. All expenses and costs incident to such proceedings shall be paid by the company or companies bringing such petition. (R. S. Sec. 3597.) SECTION 9357. A company organized under the laws of this state may invest its accumulations as follows: 1. In United States, state, county, school or city bonds, if their market value at the date of purchase, is at least eighty per cent of their par value. 2. In bonds and mortgages upon unincumbered real estate, the market value of which is at least double the amount loaned thereon, at the date of the investment, and in bonds and mortgages upon leasehold estates on real 33 estate for ninety-nine years renewable forever, unincum- bered, except rentals accruing therefrom to the owner of the fee, the market value of which leasehold estate is at least double the amount loaned thereon at the date of in- vestment. If the amount loaned exceeds one-half of the value of the land mortgaged, or one-half of the value of the lease hold estate mortgaged, exclusive of structures thereon, such structures must be insured in an authorized fire insur- ance company or companies, in an amount not less than the difference between one-half the value of such land, or lease- hold estate, exclusive of structures, and the amount loaned, and the policy, or policies shall be assigned to the mort- gagee. The value of such real or leasehold estate, shall be determined by a valuation, made under oath by two real estate owners, residents of the county where the real estate, or leasehold, is located. 3. In loans upon the pledge of such bonds or mort- gages, if the current market value of the bonds or mort- gages is at least twenty-five per cent more than the amount loaned thereon. ' 4. In loans upon its own policies, not exceeding the reserve or present value thereof, computed according to the American Experience Table of Mortality with interest at four per cent. or according to such other higher standard or standards as the company has adopted, the reserve being the amount of debts of life insurance companies by reason of their outstanding policies in gross, and which may be so treated in the returns for taxation made by them. Such companies may sell, change, or reinvest such investments, or any part thereof, at pleasure. (R. S. Sec. 3598.) SECTION 9358. The preceding section shall not pro- hibit a company from accepting any other assets than therein enumerated in payment of debts due it, in order to protect its interests, or from acquiring real estate for its own use, or by foreclosure in accordance with the laws of this state, provided that unincumbered real estate as re- ferred to in the preceding section shall be held to mean real estate not subject to any other lien, except taxes or assess- ments not yet due. (R.S. Sec. 3508.) SECTION 9359. No company organized under the laws cf this state shall purchase, hold, or convey real estate, cxceept for the purposes and in the manner herein set forth: I. Such as is requisite for its immediate accommoda- tion in the transaction of its business. 2. Such as has been mortgaged to it in good faith, by way of security for loans previously contracted, or for money due. 3. Such as has been conveyed to it in satisfaction of debts previously contracted in the course of its dealings. 4. Such as it has purchased at sales upon judgments, decrees, or mortgages obtained or made for such debts. CRG Se ee: 8500.) Dee. Exceptions as to in- vestments. What real estate compan} may acquire, When real estate to be sold. Certain action authorized. Dividends. Annual statements, 34 SECTION 9360. All real estate so acquired, and which is not necessary for the accommodation of a company in the convenient transaction of its business, shall be sold and disposed of within two years after the company acquires the title. It shall not hold such real estate for a longer period unless it procures a certificate from the superin- tendent of insurance that the interests of the company will suffer materially by a forced sale of it, in which event the time for the sale may be extended to such time as the super- intendent directs in the certificate. (R.S. Sec. 3600.) SECTION 9361. Actions may be maintained by a com- pany formed under the laws of this state, against any of its members, officers, policy-holders, or stockholders, for any cause relating to its business; and actions may be prose- cuted and maintained by any member, stockholder, or policyholder, or the heirs or legal representatives of either, against the company, for losses which accrue on any risk, if payment be withheld more than two months after the losses become due. (R. S. Sec. 3601.) SECTION 9362. The directors, managers or officers of any company organized under the laws of this state shall not, directly or indirectly, make or pay a dividend, or pay any interest, bonus, or other allowances in lieu thereof, to its stockholders, except from surplus funds, after setting aside an amount equal to the reserve on all its outstanding risks and policies, calculated by what is known as the Amer- ican Experience Table, with interest at four per cent, per annum, or by such other higher standard or standards as the company may have adopted, and the unearned premium on all personal accident and sickness insurance. (R. S. Sec. 3602.) SECTION 9363. The president or vice-president, and secretary or actuary, or a majority of the directors of each company organized under the laws of this state, annually on the first day of January, or within sixty days thereafter, shall prepare, under oath, and deposit in the office of the superintendent of insurance, a statement showing the con- dition of the company on the thirty-first day of December, then next preceding, exhibiting the following facts and items, in the following form: 1. The number of policies issued during the year. 2. The amount of insurance effected thereby. 3. The amount of premiums received during the year. 4. The amount of interest, and all other receipts, spe- cifying the items. 5. The amount paid to policy holders of the company for losses during the year. 6. The amount of all other expenditures and disburse- ments of the company, specifying such items as the super- intendent calls for. 7. Amount of losses unpaid. 8. Whole number of policies in force. 9g. Amount insured thereby. 35 1o. Amount of reserve on all policies in force, cal- culated by what is known as the American Experience Table of Mortality, with interest at four per cent per an- num, or by such other higher standard or standards as the company may have adopted, and the unearned premium on all personal accident and sickness insurance in force. _ 11. Amount of capital stock, specifying amount paid and unpaid. 12. Amount of dividends unpaid; also amount of all other liabilities. 13. A detailed statement of all the assets of the com- pany, and the manner of their investment. 14. A statement that such company has not violated any provision of sections eighty-seven hundred and twenty- nine or eighty-seven hundred and thirty, in the form re- quired by the superintendent of insurance. 15. An exhibit of the policy obligations of the com- pany, which shall include, in the first annual statement, a schedule showing the number, date, age when insured, amount insured, term of policy, term of premium and amount of premium, of all policies issued and schedules of all policies cancelled, revived, charged, reduced or in- creased and schedule of reinsurances in other companies; and in every succeeding annual statement a schedule of the foregoing items as to all policies issued during the year, and similar scehedules of policies cancelled, revived, changed, reduced, or increased during the year, together with schedules of reinsurances in other companies and schedules of additions to policies and a list of all other obligations of the company requiring valuation. Such exhibit of the policy obligations of the company may be required oftener than once a year. (R.S. Sec. 3603.) SECTION 9304. All companies organized under any law of this state shall continue corporations for the purpose for which they were chartered, but subject to all the pro- visions, requirements, and penalties imposed on companies organized under this chapter, and entitled to all the benefits and privileges of this chapter. (R.S. Sec. 3627.) FOREIGN. SECTION 9365. No company organized by act of con- gress, or under the laws of any other state of the United States, shall transact any business of insurance defined in section ninety-three hundred and eighty-five, on the capital stock or mutual plan, in this state, until it procures from the superintendent of insurance a certificate of authority so to do; nor shall any person or corporation, directly or indi- rectly act as agent in this state for such a company, either in procuring applications for insurance, taking risks, or in any manner transacting the business of insurance, until such person or corporation procures from the superintend- ent of insurance a license so to do, in which he shall state that the company has complied with all requirements of the Companies heretofore organized. Companies organized by congress or in other state. Other require- ments of for- eign companies, Deposit with superintendent of insurance or other officer. Filing copy of charter and statement, 36 laws of this state applicable to it, and deposits a certified copy of such license in the office of the recorder of the county in which the office or place of business of such agent is established ; for which filing the recorder may charge ten cents. 1 CR. Sa Sec: 36045) SECTION 6366. Any such company shall not take risks or transact any business of insurance in this state, unless possessed of the amount of actual capital required of simi- lar companies organized in this state under the provisions of this chapter, nor unless the entire capital stock of the company is fully paid up and invested as required by the laws of the state where organized. But if it is a mutual company, actual cash assets of the same amount and de- scription, invested and deposited as required by the laws of the state where it was organized, shall be accepted in lieu of capital stock. (R. S. Sec. 3604.) SECTION 9367. No such company shall transact any business of insurance in this state unless at least one hun- dred thousand dollars of its assets are invested in the in- terest paying bonds or stocks of the United States, or of this state, or of any municipality or county thereof, or in the interest paying state bonds or stocks of some other state of the United States, of the market value of one hundred thousand dollars in the city of New York, or in bonds and mortgages on unincumbered real estate in this state, or in the state under the laws of which it was organized, of at least double the value of the amount loaned thereon, and such bonds and mortgages are deposited with the superin- tendent of insurance of this state or the chief financial or other officer of the state in which such company was organ- ized, designated by the laws of such state to receive them. If such bonds and mortgages are deposited with the superin- tendent of insurance or other officer of another state, the superintendent of insurance of this state shall be furnished with the certificate of such state officer, under his hand and official seal, that he as such officer, holds in trust and on deposit, for the benefit of the policyholders of such com- pany, the securities above mentioned, giving the items thereof, and stating that he is satisfied such securities are worth at least one hundred thousand dollars. (R. S. Sec. 3005.) SECTION 9368. Such company also shall file with the superintendent a certified copy of its charter, or deed of settlement, together with a statement, under the oath of the president, vice-president, or other chief officer or manager, and the secretary of the company, stating the name of the company, the place where it is located, and the amount of its capital, with a detailed statement of all the facts required in the annual statement of companies organized under this chapter, except as to the statement required by item fifteen of section ninety-three hundred and sixty-three, which statement shall be filed by such company only when re- quired by the superintendent of insurance for purposes of 37 actual valuation, as provided by the insurance laws of this state; also, a copy of its last annual report, if any was made. (R. S. Sec. 3606.) SECTION 9369. Any such company, desiring to trans- act such business in this state by an agent, shall file with the superintendent of insurance a written instrument, duly signed and sealed, authorizing any agent of the company in this state to acknowledge service of process for and in behalf of the company in this state, and consenting that the service of process, mesne or final, upon any such agent, shall be taken and held to be as valid as if served upon the company according to the laws of this or any other state or government, and waiving all claims or right of error by reason of such acknowledgment of service, and that if it be sued after it ceases to do business in this state, and it has no agent in the county in which suit is brought upon whom service of process can be had, as provided in section ninety- three hundred and eighty, service upon it shall be had by the sheriff mailing a copy of the summons or other process, postage prepaid, addressed to it at the place of its principal office located in the state where it was organized, or if it is a foreign insurance company, to it at the place of its prin- cipal office in the United States, at least thirty days prior to the date of taking judgment in the suit. The sheriff’s re- turn shall show the time and manner of such service. (R. BEG} 2007;) SECTION 9370. Every such company doing business in this state, annually shall file a statement of its condition and affairs in the office of the superintendent of insurance, and in the form and manner required of similar companies or-- ganized under the laws of this state. But in such statement no such item as “all other expenditures,” or “incidentals,” shall be allowed or recognized. Every item of disburse- ment or expenditure must be clearly and distinctly stated and classified when required by the superintendent of insur- ance, for the protection of the interests of policyholders in this state, as provided by law. (R. S. Sec. 3608.) SECTION 9371. Any such company issuing policies on tontine or semi-tontine plan, or which claims to be mutual as to its profits to residents of this state, after the payment of the first premium thereon, and not more than sixty days and not less than ten days prior to the maturity of each and every premium, thereafter in writing shall notify every such policyholder, namely the person whose life is insured or the assignee of such policy, if the company has been notified of its assignment, and the address of the assignee given residing in this state, of the time of payment of such pre- mium. Proof of the depositing of the notice to the policy- holder or assignee in the postoffice by the company or its agent, postage prepaid to the last address as given by policyholder or assignee to the company, shall be conclu- sive proof of its service. Such notice shall set forth fully the amount of the dividend belonging to the policy, when Filing of waiver. Annual state- ment of for- eign company, Statement as to tontine policy. Renewal certificates of authority. Deposit of foreign com- panies; ap- pointment of agent for service. Annual and other state- ment to be filed. 38 requested by the policyholder if it be a participating policy, and at the end of the tontine or semi-tontine period of each policy, the company issuing it shall make a statement to the policyholder of all the dividends and profits accruing thereon, and from what sources they have been derived. CES: Secs 200m SECTION 9372. If such annual statement be satisfac- tory evidence to the superintendent of insurance of the sol- vency and ability of the company to meet all its engage- ments at maturity, and that the deposit is maintained as above required and provided, he shall issue renewal certifi- cates of authority to the agents of the company, certified copies of which must be filed in the recorder’s office of the county wherein the agency is located. Such renewal certifi- cates shall be the authority of such agents to issue new policies in this state for the ensuing year. (R. S. Sec. 3600. ) SECTION 9373. No person shall act in this state as agent or otherwise, in receiving or procuring applications for life insurance, nor in any manner aid in transacting the business of any company, partnership, or association, incor- porated by or organized under the laws of any foreign gov- ernment, until such company, partnership, or association deposits with the superintendent of insurance, for the ben- efit of the policyholders of the company, partnership, or association, who are citizens or residents of the United States, securities to the amount of one hundred thousand dollars, of the kind required for similar companies of this state, executes a waiver as provided in section ninety-three hundred and sixty-nine, and appoints an agent or attorney, in each county in this state in which the company establishes an agency, on whom process of law can be served, and files with the superintendent of insurance a duly certified copy of its charter, or deed of settlement, and a duplicate original copy of the letter or power of attorney of the company, partnership, or association, appointing the attorney thereof, which appointment shall continue until another attorney is substituted. (R. S. Sec. 3610.) _ _ SECTION 9374. Such company, partnership, or “asso- ciation, also shall file a statement of its condition and affairs in the office of the superintendent of insurance, in the form and manner required for the annual statements of similar companies organized under the laws of this state, and annu- ally, on the first day of January, or within sixty days there- after, file with the superintendent of insurance a statement of all its affairs, in the manner and form required of similar companies of this state, except as to the requirements of schedule of item fifteen in section ninety-three hundred and sixty-three, which schedule shall be filed only when re- quired by the superintendent for purposes of actual valua- apn) - provided by the laws of this state. CR AS See 3611. 39 SECTION 9375. Such annual statement shall be accom- panied by a supplementary statement, duly verified by the attorney or general agent of the company, partnership, or association in this state; giving a detailed description of the policies issued, and also those which have ceased to be in force, during the year, the amount of premiums received, and claims and taxes paid in this state and the United States, for the year ending on the thirty-first day of Decem- ber. Such statement shall also contain a description of the investments of the company, partnership, or association in this country, and such other information as may be required by the superintendent of insurance. (R. S. Sec. 3612.) ' SEcTION 9376. If the annual statement be satisfactory evidence to the superintendent of the solvency and ability of the company, partnership, or association to meet all its en- gagements at maturity, he shall issue renewal certificates of authority to the agents thereof, certified copies of which must be filed by them in the recorder’s office of the county where the agency is located. Such renewal certificates shall be the authority of the agents to issue new policies in this state for the ensuing year. (R. S. Sec. 3613.) SECTION 9377. No person, company, or corporation, directly or indirectly, shall act as agent for any such com- pany, partnership, or association, either in procuring appli- cations for insurance, taking risks, or in any manner aiding in the transaction of the business of life insurance in this state, until it procures from the superintendent a certifi- cate of authority, which shall be renewable annually, stating that the requirements of this chapter as to such company, partnership or association have been complied with, and setting forth the name of the attorney for such company, partnership or association, a certified copy of which certifi- cate must be filed in the recorder’s office of the county where the agency is to be established, and which shall be the authority of such company, partnership, or association, and its agent, to do business in this state. (R. S. Sec. 3614.) SECTION 9378. If a company, partnership, or associa- tion, organized without this state, neglects or refuses to make such annual statements, all persons acting in this state as its agents, or otherwise, in transacting the business of insurance, shall be subject to the penalties provided by law in case of the failure of an insurance company organized under the laws of this state to make an annual statement. (le. ite ees, BOTS.) SECTION 9379. All licenses granted by the superin- tendent of insurance in pursuance of this chapter shall con- tinue in force, unless suspended or revoked, until the first ee April next after the date of their issue. (R. S. Sec. 3616. _ SEcTION 9380. If a company, partnership, or associa- tion, organized under the laws of any other state or govern- ment, ceases to do business in this state according to law, it Supplementary statements. Renewal cer- tificates of authority. Certificates of authority to act as agent. Failure to make state- ment, Duration of licenses. When foreign companies must appoint agents to re- ceive service, Failure to ap- point agent. Who are agents to re- ceive service, May change securities and collect interest. Authority may be withdrawn in certain cases. 40 shall appoint, in the manner herein provided, in every county wherein an agency existed at the date of such dis- continuance, one or more agents for the purpose of receiv- ing service of process in all actions upon policies of insur- ance issued to the citizens of this state while it was lawfully transacting the business of insurance in this state. Service of process upon such agents, in such actions, shall be as valid as actual service upon the company, partnership, or association. (R, S. Secr 3617.) SECTION 9381. In every case where no such agent is appointed, the agent last designated and acting for the company, partnership, or association shall be deemed and taken to be duly authorized by it to receive service of process. The officer who serves such process shall also send a copy of the process served on the agent, by mail, to the address of such company, partnership, or association, at the place of its principal or home office at the time it ceased to do business in this state, and his return must distinctly show that such copy was so mailed at least thirty days before any judgment shall be rendered in such action. (R. 3. DEC. 207.) SECTION 9382. If any such company, partnership, or association ceases to transact business in this state accord- ing to the laws thereof, the agents last designated, or acting as such for it, shall be deemed to continue agents for it, for the purpose of serving process, and for commencing actions upon any policy or liability issued or contracted while it transacted business in this state; and service of process upon any such agent, for such causes, shall be a valid sery- ice upon the company, partnership, or association. (R. S. Sec. 3618.) SECTION 9383. Nothing in this chapter shall prevent the company, partnership, or association from collecting the interest on any securities deposited by it, so long as it con- tinues solvent, and complies with all the provisions of this chapter applicable to it, nor from exchanging them for other securities of equal value, and of the kind hereinbefore named, with the officers having them in trust. (R. S. Sec. 3619.) SECTION 9384. If any company, partnership, or asso- ciation organized without the limits of this state, and doing business herein, makes an application for a change of venue, or to remove any suit or action to which it is a party, in any court of this state, to the United States district or circuit court, or to any federal court, the superintendent of insur- ance forthwith shall revoke and recall the license or author- ity to such company, partnership, or association to do or transact business within this state. No renewal or author- ity shall be granted to such company, partnership, or asso- ciation for three years after such revocation, and thereafter it shall be prohibited from transacting business in this state until again duly licensed and authorized. (R.S. Sec. 3620.) j d ; : 41 DOMESTIC AND FOREIGN. SECTION 9385. No company, organized under the laws of this state, shall undertake any business or risk, except as herein provided, and no company, partnership or associa- tion, organized or incorporated by act of congress, or under the laws of this or any other state of the United States, or by any foreign government, transacting the business of life insurance in this state, shall be permitted or allowed to take any kind of risks, except those connected with, or apper- taining to making insurance on life or against accidents to persons, or sickness, temporary or permanent physical dis- ability, and granting, purchasing and disposing of annuities ; nor shall the business of life insurance, or life and accident insurance, in this state, be in any wise conducted or trans- acted by any company, partnership or association which in this state, or any other state or country, makes insurance on marine, fire, inland, or any other risk, or does a banking or any other kind of business in connection with insurance. (R. S. Sec. 3506.) SECTION 9386. Every life insurance company doing business in this state and issuing policies on both the par- ticipating and non-participating plans shall file with the superintendent of insurance separate annual statements of profits and losses with reference to each of such kinds of insurance. (99 v. 176 § 1.) SECTION 9387. Every person holding a policy of insur- ance issued by a company on the life of any person shall be entitled to be furnished by the company with a copy of any application or document, either written or printed, or both, held by it, upon which such policy was issued, or which may affect its validity. Upon demand made for such copy, by the holder of a policy, or by any person upon whose life it was so issued, the company shall make and forthwith fur- nish to such person, a certified copy of all such applications _or friends’ certificates, under the hand of the president, sec- retary, or other proper officer of the company, and under its seal, { KG: pee. 3621: ) SECTION 9388. If such company neglects or fails for thirty days from the time of such demand to furnish to such person a copy of all papers mentioned in the next preceding section, and as provided therein, it thereafter shall be for- ever barred from setting up, by way of defense to a suit on the policy of insurance, any error or incorrectness, or fraud or misrepresentation of the person making them, or any mistake therein whatever; and such application or ‘other paper or document shall thereafter be taken and held, so far as it may affect any claim under such policy, or fund se- cured thereby, to be in all respects true and correct. (R. S. eC 2022.) SECTION 9389. Every company doing business in this state shall return with, and as part of any policy issued by it, to any person taking such policy, a full and complete copy of such application or other document held by it which What kind of business such companies may do, Statements as to participating and non- participating policies. Policyho!ders entitled to copies of applications. Effect of failure to deliver copies. Copies of applications to accompany policies issued, Application to be in ordinary written or rinted anguage. When false answer material. Estopped from certain defenses. Minor’s con- tract for life insurance. May insure for benefit of widow and children, 42 is intended in any manner to affect the force or validity of such policy. A company which neglects so to do, so long as it is in default for such copy, shall be estopped from deny- ing the truth of any such application or other document. In case such company neglects for thirty days after demand made therefor, to furnish such copies, it shall be forever barred from setting up as a defense to any suit on the policy, any incorrectness or want of truth of such applica- tion or other document. (R.S. Sec. 3623.) - SecTION 9390. No company doing business in this state shall take any application, medical certificate, or other document, for insurance upon the life of any person, in cipher, or by character of any sort other than ordinary writ- ten or printed language. Such application, medical cer- tificate, or other document taken in violation of this section, shall be held to be void and of no effect as against any per- son claiming under a policy of insurance issued thereon. (Kiss ec, 2624.) . SECTION 9391. No answer to any interrogatory made by an applicant, in his or her application for a policy, shall bar the right to recover upon any policy issued thereon, or be used in evidence upon any trial to recover upon such policy, unless it be clearly proved that such answer is wil- fully false, was fraudulently made, that it is material, and induced the company to issue the policy, and that but for such answer the policy which would not have been issued; and, also that the agent or company had no knowledge of the falsity or fraud of such answer. (R. S. Sec. 3625.) SECTION 9392. After having received three annual premiums on a policy issued on the life of any person in this state, all companies are estopped from defending upon any other ground than fraud, against any claim arising upon such policy by reason of errors, omissions, or misstatements of the assured in an application made by him on which the policy was issued, except as to age. (R.S. Sec. 3626.) SECTION 9392-1 — {1 1. In respect to insurance here- | tofore or hereafter issued upon the life of any person be- tween the ages of fifteen and twenty-one years, for the benefit of such minor, or for the benefit of the father, mother, husband, wife, child, brother or sister of such minor, the insured shall not, by reason only of such mi- nority, be incompetent to contract for such insurance, or for the surrender of such insurance, or to give a valid dis- charge for any benefit accruing, or for money payable under the contract. SECTION 9393. Any person may affect an insurance on his life, for any definite period of time, or for the term of his natural life, to inure to the sole benefit of his wife and children, or of either or other relative or relatives de- pendent upon such person or any creditor or creditors as he may cause to be appointed and provided in the policy. 43 SECTION 9394. All policies of life insurance upon the life of any person, which may hereafter mature, and which have been or shall be taken out for the benefit of, or bona fide assigned to the wife or children, or any relative de- pendent upon such person, or any creditor, shall be held subject to a change of beneficiary if desired for the benefit of such wife or children, or other relative or creditor, free and clear from all claims of the creditors of such in- sured person; and the proceeds or avails of all such life insurance shall be exempt from all liabilities from any debts, of such insured person. SECTION 9395. Subject to the statute of limitations, the amount of any premiums for insurance for the benefit of wife and children, or of either, or other relatives de- pendent upon such person or any creditor, paid in fraud of creditors, with interest thereon, shall inure to their benefit from the proceeds of the policy. SECTION 9396. The company issuing the policy shall be discharged of all liability thereon by payment of its pro- ceeds in accordance with its terms, unless, before such pay- ments, notice is given to it by a creditor, specifying the amount of his claim and the premiums which he alleges have been so fraudulently paid. (R.S. Sec. 3628.) SECTION 9397. A married woman may by herself, and in her own name, or in the name of a third person, with his assent as her trustee, cause the life of her husband to be insured for her sole use, for any definite period, or for the term of his natural life, and if she survives such period or term, the amount of insurance becoming due and payable by the terms of the insurance shall be payable to her, free from the claims of the representatives of the husband, or any of his creditors. (R.S. Sec. 3629.) SECTION 9398. A policy of insurance on the life of any person, duly assigned, transferred, or made payable to a married woman, or to any person in trust for her or for her benefit, whether such transfer is made by her husband or other person, shall inure to her benefit, and that of her children, independently of her husband or his creditors, or of the person effecting or transferring the policy of his creditors. ' (R. S: Sec: 3629.) SECTION 9398-1. That any life insurance company incorporated under the laws of this state shall have power to hold the proceeds of any life insurance policy issued by it, payable or assigned to the parents, wife, husband, children or legally adopted children of the policy- holder, upon such terms and subject to such limitations as to revocation by the policyholder and control by the beneficiaries thereunder, as shall have been agreed to in writing by such company and the policyholder; and if the said agreement shall so provide, the benefits accruing thereunder shall not be transferable nor subject to com- mutation or incumbrance, or to legal process. Insurance exempt from claim of cred- itor. Premiums paid in fraud of creditor. When company liable to creditor, Wife may in- sure life of ° husband. Policy assigned to married woman. Proceeds of policy not subject to transfer, in- cumbrance or legal process in certain cases. Beneficiar in case o death of wife. Policy to defrau creditors, Discrimination against per- sons of Af- rican descent prohibited. Procedure when applica- tion of such persons re- fused. Discrimina- tions thm hibited. 44 SECTION 9398-2. The provisions of this section shall not impair or affect the rights of creditors under section 9395 of the General Code. SECTION 9399. The amount of the insurance so pro- vided for in the preceding sections, may be made payable, in case of death of the wife before the period at which it becomes due, to his, her, or their children, for their use, as provided in the policy of insurance, or to their guardian, if under age. If there are no children, upon the death of the wife, such policy shall revert to and become the property of the party whose life is insured, unless it has been trans- ferred as hereinafter provided. When by its terms, or a transfer thereof, a policy is payable to a married woman solely for her own use, she may sell, assign, or surrender it, but the party whose life is insured, shall concur in and become a party to the transfer. (R: S. Sec. 3629.) SEcTION 9400. If a policy be procured by a person with intent to defraud his creditors, an amount equal to the premium paid thereon, with interest, shall inure to the benefit of his creditors, subject, however, to the statute of limitations. (R. S. Sec. 3629.) SEecTION 9401. No life insurance company organized or doing business, or that may be organized and do business within this state, shall make any distinction or discrimina- tion between white persons and colored, wholly or partially of African descent, as to premiums or rates charged for policies upon the lives of such persons; nor demand or require greater premiums from such colored persons than are at that time required by the company from white per- sons of the same age, sex, general condition of health and hope of longevity ; nor make or require any rebate, diminu- tion of discount upon the sum to be paid on such policy in case of the death of such colored person insured, nor insert in the policy any condition, nor make any stipulation whereby such person insured binds himself, his heirs, ex- ecutors, administrators or assigns to accept any sum less than the full value or amount of such policy in case of a claim accruing thereon by reason of the death of the person insured, other than such as are imposed upon white persons in similar cases. Any such stipulation or condition so made or inserted shall be void. (86 v. 163 § I.) SECTION 9402. Any such company, which refuses the appa saee of a colored person for insurance upon his life, shall furnish him with the certificate of some regular exam- ining physician of the company who has made examination of such person, stating that his application has been re- fused, not because he is a person of color, but solely upon such grounds of his general health and hope of longevity as would be applicable to white persons of the same age and sex. (86 v. 164 § 2.) SECTION 9403. No life insurance company doing busi- ness in this state shall make or permit any distinction or discrimination in favor of individuals between the insured 45 of the same class and equal expectation of life in the amount of payment of premiums, or rates charged for poli- cies of life or endowment insurance, or in the dividends or other benefits payable thereon, or in any other of the terms and conditions of the contracts it makes; nor shall any such company, or any agent thereof, make any contract of insur- ance or agreement as to such contract, other than is plainly expressed in the policy issued thereon. (99 v. 183 § I.) SEcTION 9404. No life insurance company doing busi- ness in this state, or any officer, agent, solicitor, employe, or representative thereof, nor any other person, shall pay, allow or give, or offer to pay, allow or give, directly or in- directly, as inducement to insurance, nor shall any person, co-partnership or corporation knowingly receive as such in- ducement to insurance any rebate of premium payable on the policy or any special favor or advantage in the divi- dends or other benefits to accrue thereon, or any special ad- vantage in the date of a policy or date of the issue thereof ; or any valuable consideration or inducement whatsoever ; or give or receive, sell or purchase, or offer to give or re- ceive, sell or purchase, as inducements to insurance or in connection therewith any stock, bonds or other obligations or securities of any insurance company or other corpora- tion, association, partnership or individual, or any dividends or profits to accrue thereon, or any paid employment or contract for services of any kind, or anything of value; provided, that nothing in this chapter shall be so construed as to forbid a company, transacting industrial insurance on a weekly payment plan, from returning to policyholders, who have made premium payments for a period of at least one year, directly to the company at its home or district offices, a percentage of the premium which the company would have paid for the weekly collection of such premium. No person shall be excused from attending or testify- ing or producing any books, papers or other documents before any court or magistrate having jurisdiction upon any investigation, proceeding or trial for a violation of any of the provisions of this section or of section 9403, upon the ground or for the reason that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate or degrade him, but no person shall be prosecuted or subject to any penalty or forfeiture for or on account of any transaction, matter or thing concerning which he may so testify or produce evidence, documentary or otherwise, except for perjury committed in so testifying. SECTION 9405. Every corporation which violates any of the provisions contained in section 9403 or in section 9404, shall forfeit and pay any sum not less than one hun- dred dollars nor exceeding five hundred dollars, to be re- covered by action in the name of the state and the amount so recovered shall be paid to the county treasury for the benefit of the common school fund. Rebating forbidden. Violation by corporation of preceding section. Revocation for violation. Solicitor is agent of company. Misrepresent- tation as to policy or dividends. Forfeiture. 46 SECTION 9406. It shall be the duty of the superin- tendent of insurance upon conviction of any such life in- surance company, or of any agent thereof for violation of any of the provisions of section 9403 or of section 9404, or upon being satisfied of the violation of either of said sections and after reasonable notice to the accused of the time and place of hearing, to revoke the license of the company or agent so offending, and no license shall be granted to such company, or agent, for a period of three years after such revocation. SECTION 9407. Any person who solicits an application for insurance upon the life of another in any controversy between the assured or his beneficiary and the company issuing a policy upon such application shall be regarded as the agent of the company and not the agent of the assured. (99 v. 175 § 1.) SEcTION 9408. No life insurance company doing busi- ness in this state, and no officer, director or agent thereof, shall issue or circulate or cause or permit to be issued or circulated any estimate, illustration, circular or statement of any sort misrepresenting the terms of the policies or policy issued by it or the benefits or advantages promised thereby, or the dividends or shares of surplus to be re- ceived thereon, or use any name or title of any policy or class of policies misrepresenting the true nature thereof, nor shall any such corporation, or any officer, agent, so- - licitor or representative thereof, or any other person or per- sons, make any misrepresentations to any person insured in any life insurance company for the purpose of inducing or tending to induce such person to lapse, forfeit or sur- render his said insurance. SECTION 9409. Every corporation which shall violate any of the provisions of section 9408 shall forfeit and pay not less than one hundred dollars, nor more than five hundred dollars, to be recovered by action in the name of the state and the amount so recovered shall be paid to the county treasurer for the benefit of the common school fund. GHAPITER 2. STANDARD FORMS, PROVISIONS AND PROHIBITIONS. SECTION SECTION 9410. Unauthorized policies shall not be is 9419. Preliminery term. sued. ; 9420. Policies other than standard forms. 9411. Standard forms. 9421. Provisions prohibited. _ 9412. “Ordinary” or ‘“‘limited* payment.” 9422. Preliminary term policies, not standard, 138. Endowment. subject to certain provisions. 9414. “Ordinary” or “‘limited life” fixed sur- 9423. Forms of policies must be submittea to Phased ree : hi : superintendent of insurance. str coe ee ey 9424. Policies may contain provisions 9417. Term with right to renew and change. - scribed by state where organized. pre- 9418. Single premium and _ non-participating 9425. To what ths chapter shall not apply. policies. 9426. What the word ‘‘company”’ includes. SECTION 9410. No policy of life insurance shall be aie issued or delivered in this state and no policy of life insur- not be issued. ance of a life insurance company organized under the laws of this state shall be issued unless authorized by the pro- visions of this chapter. (99 v. 139 § 1.) SECTION 9411. The forms prescribed by the next fol- Standard lowing six sections are established as standard forms in “""™ which policies of life insurance may be issued and delivered in this state, and in which policies of life insurance of life nsurance companies organized under the laws of this state may be issued. (99 v. 139 § 2.) SECTION 9412. “Ordinary” OHIO STANDARD LIFE INSURANCE POLICY. or “limited ° wets payment. (Insert “Ordinary” or “Limited Payment.’’) Shas ae aay Oe) sce PR af ee a roe OF Wd PNBES wit, Sanne eae PREM D INT eae Sale e heels, cc PEMUIN Os oy whe eas oe ee eee SS SENOS |S) 8) @ 66" O'S) 60-6: 0's e210 0.6. Oe .4.0 6 Oe 6) 018 @)'6 0 0 16) € 8 v0 see ee ee we wees see eee eee eee ee ee ese ee eee eee rere eee eee eoe Of (Name of State) Rtn TAAL PCUN OH. cirv-c ace 0 ave a Dollars, receipt of which is hereby acknowledged, and of the pay- ment of (insert amounts and times of payments of pre- miums) until (insert “the death of the insured” in ordinary life, and “...............full years’ premiums shall have been paid or until the prior death of the insured” in limited payment life), PROMISES to pay upon receipt at the Home Office of the Company in...............0f due proof of the death il wi er esl a et ai iassigly: gree COUMLY, OF 5 vs ence esi a « State of.................., herein called the Insured, to eos ceveesee« DENehCiar............+., With (insert “out” if so desired) right of revocation, ..............Dollars, 47 48 less any indebtedness hereon to the Company and any un- paid portion of the premium for the then current policy year. : CHANGE OF BENEFICIARY.—When the right of revocation has been reserved, or in case of the death of any beneficiary under either a revocable or irrevocable designa- tion, the insured, subject to any existing assignment of the policy, may designate a new beneficiary with or without reserving right of revocation by filing written notice thereof at the home office of the company accompanied by the policy for suitable endorsement thereon. If any beneficiary shall die before the insured and the insured shall not have designated a new beneficiary the interest of such beneficiary shall be payable to the insured, (insert “his” or “her’’) executors, administrators or assigns. PAYMENT OF PREMIUMS.—tThe company will accept payment of premiums at other times than as stated above, as follows: oeoeo ere ere ee ere eee eee ere e ere ee eee eee eee eee eereeeeeeeeeeeeve C0 © 0 6 0 6 6 6 0 © 0 0.6 0 @ ¢ 0-6 8) 6 © 0.8) 66 6 6 6 6s 6 0 Ss wre] @ She le 6) 650 le 6 Sees 8s Except as herein provided the payment of a premium or installment thereof shall not maintain the policy in force beyond the date when the next premium or installment thereof is payable. All premiums are payable in advance at said home office, or to an agent of the company upon delivery of a receipt signed by one or more of the following officers of © the company (insert titles of officers who may sign re- ceipts), and countersigned by said agent. A grace of one month subject to an interest charge at the ratewaiow:.. oases per centum per annum shall be granted for the payment of every premium after the first, during which month the insurance shall continue in force. If the insured shall die during the month of grace the overdue premium will be deducted from any amount payable hereon in any settlement hereunder. CONDITIONS.—(The policy may here provide for restrictions of liability by reason of travel, occupation, change of residence and suicide: These restrictions except such as refer to military and naval service in time of war, must be applicable only to cases where the act of the in- ~ sured provided against occurs within two years after the issuance of the policy.) INCONTESTABILITY.—This policy and the appli- cation therefor, a copy of which is endorsed hereon, con- stitute the entire contract between the parties and shall be incontestable from its date, except for non-payment of pre- miums and except as otherwise provided in this policy. All statements made by the insured in said application shall, in the absence of fraud, be deemed representations and not warranties. If the age of the insured has been misstated, the amount payable hereunder shall be such as the premium paid would have purchased at the correct age. "EE 49 PARTICIPATION.—This policy shall participate in the surplus of the company and beginning not later than the end of the (insert first, second or third) policy year the company will annually determine and account for the por- tion of the divisible surplus accruing hereon. DIVIDENDS.—Dividends at the option of the owner oa this policy shall on! thes... ie 5 CACO Eaters Costs ve of each year (here may be inserted “after the first policy year” or “after second policy year”) be either— (1) Paid in cash, or (2) Applied toward the payment of any premium or premiums, or (3) Applied to the purchase of paid up additions to the policy, or . (4) Left to accumulate to the credit of the policy with interest at (here insert a rate not exceeding that used by the company for calculating its reserves) per centum per annum and payable at the maturity of the policy, but withdrawable on any anniversary of the policy. _ Unless the owner of this policy shall elect otherwise within three months after the mailing by the company of a written notice requiring such election, the dividends shall be applied to the purchase of paid up additions. LOANS.—After three full years’ premiums have been paid, the company at any time, while this policy is in force, will advance, on proper assignment of this policy and on the sole security thereof, at a rate of interest not greater 171 eae per centum per annum, which interest if not paid annually shall be added to the principal and bear the same rate of interest, a sum equal to, or, at the option of the owner of the policy, less than, the reserve at the end of the current policy year on this policy and on any dividend additions thereto, computed according to the (designate mortality table adopted by the company for computing re- serves) mortality table, and interest at the rate of (desig- nate rate of interest adopted by the company for computing reserves) per centum per annum, less (here may be inserted not more than two and one-half) per centum of the amount insured by this policy and of any dividend additions thereto. The company, however, will deduct from such loan value any existing indebtedness to the company on the policy and any unpaid balance of the premium for the cur- rent policy year, and may collect interest in advance on the loan to the end of the current policy year. Such loan may be deferred by the company for not exceeding six months after the application therefor ‘is made. Failure to repay any such advance or to pay interest shall not avoid this policy unless the total indebtedness hereon to the company shall equal or exceed such loan value at the time of such failure and until one month after notice shall have been mailed by the company to the last known address of the insured and of the assignee, if any. No condition other than as herein provided shall be exacted as a prerequisite to any such advance. 4 LD. 50 ASSIGNMENT.—No assignment of this policy shall be binding upon the company until it be filed with the com- pany at its said home office. The company assumes no responsibility as to the validity of any assignment. OPTION ON SURRENDER OR LAPSE.—After this policy shall have been in force three full years the owner, within one month after any default, may elect (a) to accept the value of this policy in cash, or (b) to have the insurance continued in force from date of default, without future participation and without the right to loans, for its face amount, including any outstanding dividend additions, less any indebtedness to the company hereon, or (c) to purchase non-participating paid up insurance, payable at the same time and on the same conditions as this policy. The cash value will be the reserve at the date of default on this policy and on any dividend addition thereto, computed according to the (designate mortality table adopted by the company for computing reserves) mortality table and in- terest at the rate of (designate rate of interest adopted by the company for computing reserves) per centum per an- num, less (here may be inserted not more than two and one-half) per centum of the amount insured by this policy and of any dividend additions thereto, and less any existing indebtedness to the company on this policy. Payment of such cash value may be deferred by the company for not exceeding six months after the application therefor is made. The term for which the insurance will be continued or the amount of the paid up policy will be such as the cash value will purchase as a net single premium at the attained age of the insured according to the (designate the mortality table adopted by the company for computing reserves) mortality table and interest at the rate of (designate rate of interest adopted by the company for computing reserves) per centum per annum. If the owner shall not, within one month from default, surrender this policy to the company as its home office for a cash surrender value or for paid up insur- ance as provided in options (a) and (c) the insurance will be continued as provided in option (b). The figures in the following table are computed in accordance with the above provisions and upon the assump- tion that there is no indebtedness on the policy, and that there are no outstanding dividend additions. (At the option of the company the following may be here inserted: “The fiures apply to a policy for $1,000. As this contract is for $.'.4 00s, the loan, cash, or paid up insur- ance available in any year will be........... the amount stated in the table for that year.”) Ee ee eee ee 51 ——————— eee At Cash or aoe Continued Insurance. ae Welcel Tnburance: Years. Months. Days. ee a ee re a Be a ee a leak a Sk as eee OMe ee ee eee > ee oe 8 he 8 Aa a pte SO oe Og ae ok a 0. BCs ewe ny Se re Ve Tee ee BERR e en PR. vee ks 65 Pia, akycart Gy en mest Nee hep id ae De eH or Seep Dee aAO. Hae o CTMCEE dine NTE OY eee eee eo ee ene cee: ba eg wake es PM cak. eee as CRO ale ae tie eee ee ae Die ets Bt Ho has + Sobemiadiet fo dacks vs bee hes ee Pitas aa Cee ee oe | Seer arg ae ee en ee Pe OS Te ita Se tee ame ae cae ee FAR nes seine’ ee eet ates eau! LARSEN 4.8 aiex a) Ae eee Dore tee Waren Meth tha led ofas sta 'ss, | a sehesatecs DGS oath, kee es Wk Se yt se San Ee eR WL Mee er eT Dey Rete ye 8 feist evetars (hag Se rE Sr NAA AR Ret ek eee eee aR” ee it in Seer aoe Si ne ok Fame. p Cate wins Thao eis > Oy, Renee dra or See RO te ae ane te eee eee ae Figures for later years will be furnished upon request. REINSTATEMENT.—In case of continued tempo- rary insurance under the above provisions, this policy, upon evidence of insurability satisfactory to the company, may be reinstated within the first three years of the term for which the insurance is continued by payment of arrears of pre- miums with interest at (here insert not more than six) per centum per annum. OPTIONS AT MATURITY.—The insured, by writ- ten notice to the company at its home office, and with the written consent of the assignee and irrevocable beneficiary, if any, may elect to have the net sum payable under this policy paid either in cash or as follows: (A evetne payment of interest theréon at ........ per centum per annum payable annually, to the payee under this policy at the end of each year during the life of the payee and by the payment upon the death of the payee of the said net sum and accrued interest to the executors, administrators, or assigns of the payee, unless otherwise directed in said notice. (2) By the payment of equal annual installments for a specified number of years, the first installment being pay- able immediately, in accordance with the following table for each $1,000 of said ‘net sum. (3) By the payment of equal annual installments payable at the beginning of each year for a fixed period of twenty years and for so many years longer as the payee shall survive in accordance with the following table for each $1,000 of said net sum. 52 Installments payable under options (2) or (3) which shall not have been paid prior to the death of the payee shall be paid, unless otherwise directed in said notice, to the executors, administrators or assigns of the payee. If the insured shall not have directed otherwise the beneficiary may, after the death of the insured, by like written notice, and with the written consent of the assignee, if any, select either of the above options. Unless otherwise specified by the insured the payee may on any interest date receive the amount yet due under option (1), and may at any time receive the commuted value of payments yet to be made, computed upon the same basis as option (2) in the following table, provided that no such commutation will be made under (3), except after the death of the payee occurring within the aforesaid twenty years. TABLE OF INSTALLMENTS FOR EACH $1,000. Option (2) Option (38) Age of Payee Number of Amount of when Policy Amount of Annual Each becomes ac Installments. “Installment. payable. Installment. nae BE eRe \ Pay ree Psp Brr ae Aa CER TOA S MPa er iis fay ee te MPa ies tar Be Bia k sewn lak so 9 ge eo eMetende ante ev anette eens soa at eee ame \ eS SPLEEN pet) reader 9 ty. 5 EL oRie Eyed ae S POPE Mra iets es oe Ba et Pane a h ree Tec re Tene een Big £60 Ras Ses a re Pawan ee try Mae Merete A ey a Ory a Bote ees noe oe cei eee oe en Piece fe Bow baie Sag bie ane oe ales ie ene ee ee SNe seen cee Baia iccatsle ale who 7s Se ea ea ce ee ae Bo sarave ps. d, 00s? Sad ak ee Reel eee eee Ee ar. \ Pr erage see Me Peibs Pian \ Pe re Ns ee aie, ace Reha \ rene rivay rime Se SC AI de ig es Bik ack acahany he SG eee ace STOTT ey b PMI ME sk So Bane Sens ese \ ren rr ee ye ta Sadek date tes h Pa Fee Che chin ep ae a $ oss es DR SE OR RR ae hha iosae Bis dials dives OP En ane ee _AGENTS ARE NOT AUTHORIZED to modify this policy or to extend the time for paying a premium. _ IN WITNESS WHEREOF, The Company has caused this Policy to be executed this.......... day Gl cua seats (99 v. 145 § 2.) 53 SECTION 9413. OHIO STANDARD LIFE INSURANCE POLICY. Endowment. eRMERL Eat Sie res a eher ey «kel Siew e608 enw ad my, oe, ee 8 mle eel ey Re! 86 e 1 O SKO IMS SOS ee Rea ate tin ie Tem een ra etlaliel errets\iatna) So) ei eiteld se) (ww). 0. 8).6 (ere une ® AS) ree) 101) © 26.10) e eS 50ue iS eS PS ret rettaN e octis) Sioe ie Wire So Fetiol a) ere e.ca he ne [O16 46 Auris” BG NOlCe C00) RG) 0) (0 Ne) ie (Sai8) Ee IA) \o en) 8 Of (Name of State) IN CONSIDERATION OF ....35.255.28. Dollars, receipt of which is hereby acknowledged, and of the pay- ment of (here insert amounts and times of payments of premise Untill i cei meses « full years’ premiums shall have been paid or until the prior death of the Insured, PROMISES to pay at the Home Office of the Com- RSL VRAIN Figs Ai sr hi <0) <%42,6 PORE peed Bika Sere ess County Cpt eth eee hrs etal GOL emearee inetd cst , herein called the dislined sO the) Bice e. es BAVIOL Makieas rs stalk » it’ the Insured be then living, or upon receipt at said Home Office of due proof of the prior death of the Insured, to........ PeNENCIAL vw. see a with (insert “out” if so desired) right OE PEVOCSUION, 4.e icie's soe Sez Dollars, less any indebtedness hereon to the Company and any unpaid portion of the pre- mium for the then current policy year. CHANGE OF BENEFICIARY.—When the right of revocation has been reserved, or in the case of the death of any beneficiary under either a revocable or irrevocable des- ignation, the insured, subject to any existing assignment of the policy, may designate a new beneficiary with or without reserving right of revocation by filing written notice thereof at the home office of the company, accompanied by the policy for suitable endorsement thereon. If any beneficiary shall die before the insured and the insured shall not have designated a new beneficiary the interest of such beneficiary shall be payable to the insured, (insert “his” or “her’’) executors, administrators or assigns. PAYMENT OF PREMIUMS.—The company will accept payment of premiums at other times than as stated above, as follows: Die oe) ere) 8 6.8 6: 6.8. 6 Bere 06 © (6 0; 6 BO. 6) 0! Oe 0) 6, 6 © 6 8 0 6 0 e:8 678 eo 6 ee 8 oo 8 08S Te Sale hese pT Se 0.0 64s sists) O18 Cre Se S16) e) 8) OVE <0 # SS) OO, 0:0 od, 01 (9, Oe @ (e's Bg ee ee Except as herein provided the payment of a premium or installment thereof shall not maintain the policy in force beyond the date when the next premium or installment thereof is payable. All premiums are payable in advance at said home office, or to an agent of the company upon delivery of a receipt signed by one or more of the following officers of the company (insert titles of officers who may sign receipts), and countersigned by said agent. A grace of one month subject to an interest charge at CURL Cy i a ea per centum per annum, shall be Endowment. 54 granted for the payment of every premium after the first, during which month the insurance shall continue in force. If the insured shall die during the month of grace the over- due premium will be deducted from any amount payable hereon in any settlement hereunder. CONDITIONS.—(The policy may here provide for restrictions of liability by reason of travel, occupation, change of residence and suicide. These restrictions except such as refer to military and naval service in time of war, must be applicable only to cases where the act of the insured provided against occurs within two years after the issuance of the policy.) INCONTESTABILITY.—tThis policy and the appli- cation therefor, a copy of which is endorsed hereon, consti- tute the entire contract between the parties and shall be incontestable from its date, except for non-payment of pre- miums and except as otherwise provided in this policy. All statements made by the insured in said application shall, in the absence of fraud, be deemed representations and not warranties. If the age of the insured has been misstated, the amount payable hereunder shall be such as the premium paid would have purchased at the correct age. PARTICIPATION.—This policy shall participate in the surplus of the company and beginning not later than the end of the (insert first, second or third) policy year the company will annually determine and account for the por- tion of the divisible surplus accruing hereon. DIVIDENDS.—Dividends at the option of the owner of this policy shall on the............ day Of 5.'.4 aia each year (here may be inserted “after the first policy year” or “after second policy year”) be either— (1) Paid in cash, or (2) Applied toward the payment of any premium or premiums, or (3) Applied to the purchase of paid-up additions to the policy, or (4) Left to accumulate to the credit of the policy with interest at (here insert a rate not exceeding that used by the company in calculating its reserves) per centum per annum and payable at the maturity of the policy, but with- drawable on any anniversary of the policy. Unless the owner of this policy shall elect otherwise within three months after the mailing by the company of a written notice requiring such election, the dividends shall be applied to the purchase of paid-up additions. _ LOANS.—After three full years’ premiums have been paid, the company at any time, while this policy is in force, will advance, on proper assignment of the policy and on the sole security thereof, at a rate of interest not greater than sg error per centum per annum, which interest if not paid annually shall be added to the principal and bear the same rate of interest, a sum equal to, or, at the option of the 55 owner of the policy, less than, the reserve at the end of the current policy year on this policy and on any dividend addi- tions thereto, computed according to the (designate mor- tality table adopted by the company for computing re- serves) mortality table and iriterest at the rate of (designate rate of interest adopted by the company for computing reserves), per centum per annum, less (here may be in- serted not more than two and one-half) per centum of the amount insured by this policy and of any dividend additions thereto. The company, however, will deduct from such loan value any existing indebtedness to the company on this policy and any unpaid balance of the premium for the cur- rent policy year, and may collect interest in advance on the loan to the end of the current policy year. Such loan may | be deferred by the company for not exceeding six months after the application therefor is made. Failure to repay any such advance or to pay interest shall not avoid this policy unless the total indebtedness hereon to the company shall equal or exceed such loan value at the time of such failure and until one month after notice shall have been mailed by the company to the last known address of the insured and of the assignee, if any. No condition other than as herein provided shall be exacted as a prerequisite to any such advance. ASSIGNMENT.—No assignment of this policy shall be binding upon the company until it be filed with the com- pany at its said home office. The company assumes no responsibility as to the validity of any assignment. OPTIONS ON SURRENDER OR LAPSE.—After this policy shall have been in force three full years the owner, within one month after any default, may elect (a) to accept the value of this policy in cash, or (b) te have the insurance continued in force from date of default, without future participation and without the right to loans, for its face amount, including any outstanding dividend additions, less any indebtedness to the company hereon, or (c) to pur: chase non-participating paid-up insurance, payable at the same time and on the same conditions as this policy. The cash value will be the reserve at the date of default on this policy and on any dividend additions thereto, computed according to the (designate mortality table adopted by the company for computing reserves) mortality table and in- terest at the rate of (designate rate of interest adopted by the company for computing reserves) per centum per an- num less (here may be inserted not more than two and one- half) per centum of the amount insured by this policy and of any dividend additions thereto, and less any existing indebtedness to the company on this policy. Payment of such cash value may be deferred by the company for not exceeding six months after the application therefor is made. The term for which the insurance will be continued or the amount of the paid-up policy will be such as the cash value will purchase as a net single premium at the attained age of the insured according to the (designate the mortality 56 table adopted by the company for computing reserves) mor- tality table and interest at the rate of (designate rate of interest adopted by the company for computing reserves) per centum per annum. If the sum applicable to the pur- chase of temporary insurance shall be more than sufficient to continue the insurance to the end of the endowment term named in this policy, the excess shall be used to purchase in the same manner non-participating paid-up pure endow- ment, payable at the end of the endowment term and on the same conditions. If the owner shall not, within one month from default, surrender this policy to the company at its home office for a cash surrender value or for paid-up insur- ance as provided in option (a) and (c) the insurance will be continued as provided in option (b). The figures in the following table are computed in accordance with the above provisions and upon the assump- tion that there is no indebtedness on the policy, and that there are no outstanding dividend additions. (At the option of the company the following may be here inserted: “The figures apply to a policy for $1,000. As this con- tract is for $.... the loan, cash, paid-up insurance or pure endowment available in any year will be.............. the the amount stated in the table for that year.”) At Cash Paid-Up end or Endow- Continued Insurance. Pure of Loan ment in- Endow- Year. Value. surance. Years. Months. Days. ment. es ete Diep ake ce en a ae nr EE eet Ae: Se ie aiite ag Sr Ieee eae be ran Se Fee Sy ide SS ia haere De ee aye Oye Sees yn en ee ey 7 bee Rie a oe ae ares, Or abet Si eyess i> ty Wea eae 0 Sanat Gee Oe a ER, SP CRM cto yA» Be cet hs TOs “ese bE Ee la dan he toe ee TEU rare oe SERN on eA a eri Ser ey fo, one i ier ve th Ses ee a Beg ae eta Bic tae 1 ane ee Das MeeRe Saas aoe A a a 1 Oh ge ae kaa Ce cred ga ee A yleicat res Pos Seew Si cA 2 al Sei eee ee Btn ete Oss, ce Soca cd Sea ee ee A oe e sae i7- ee Bot wwe et eke ae (Rae ne LRRD A ge, Lis gehen: Bsa veces ee ee ee Se eae? Vine, » Pere LOS ee et eee A yteeatch ie 20 Sea 5 ieee Te ee Figures for later years will be furnished upon request. REINSTATEMENT.—In case of continued tempo- rary Insurance under the above provisions, this policy, upon evidence of insurability satisfactory to the company, may be reinstated within the first three years of the term for 57 which the insurance is continued by payment of arrears of premiums with interest at (here insert not greater than six) per centum per annum. OPTIONS AT MATURITY.—The insured, by writ- ten notice to the company at its home office, and with writ- ten consent of the assignee and irrevocable beneficiary, if any, may elect to have the net sum payable under this policy paid either in cash or as follows: (1) By the payment of interest thereon at......... per centum per annum payable annually, to the payee under this policy at the end of each year during the life of the payee and by the payment upon the death of the payee of the said net sum and accrued interest to the executors, administrators or assigns of the payee, unless otherwise directed in said notice. (2) By the payment of equal annual installments for a specified number of years, the first installment being pay- able immediately, in accordance with the following table for each $1,000 of said net sum. (3) By the payment of equal installments payable at the beginning of each year for a fixed period of twenty years and for so many years longer as the payee shall sur- vive in accordance with the following table for each $1,000 of said net sum. Installments payable under options (2) or (3) which shall not have been paid prior to the death of the payee shall be paid, unless otherwise directed in said notice, to the executors, administrators or assigns of the payee. If the insured shall not have directed otherwise the beneficiary may, after the death of the insured, by like writ- ten notice, and with the written consent of the assignee, if any, select either of the above options. Unless otherwise specificed by the insured the payee may on any interest date receive the amount yet due under option (1), and may at any time receive the commuted value of payments yet to be made, computed upon the same basis as option (2) in the following table, provided that no such computation will be made under (3), except after the death of the payee occurring within the aforesaid twenty years. 58 TABLE OF INSTALLMENTS FOR EACH $1,000. Option (2) Option (8) Age of Payec Amount of Number of Amount of when Policy Annual ac becomes Installment. Installments. Installment. payable. bee Seeade Per er a Ler ah els a Basin in bbs ia gna.) lal ere eee ee ath xy, wea Bo aidre es Cd 5. cam ween ate oe soaitiat ae Ee rn Pe ek RS Sac Bi ocek's be ea Se Wine ea ee ee ere ee s PPAF es RP ee \ PPM ye SS Se Eee $ os vine dak Wedge ook eee eee te? asttuns ieee \ emer ter yn re ca Eten ee ae barre mene melee me a se EECA te SP ee MPa er ee es eee Ce ee ee ee or ee SUP Pa oe oe $ oie daa Se eee ae aeti. hs ae ve Boies oO P ear Je Olean a a es ee ae teas \ Ee RAPER ar Bs ie eee oe Rr er he Nn ee ee 6.0 eta So. ies Gs ache. dagen See ee hts «Sie eeiabore Sere eR Sater sor AE ahs Gee $ave siviais, 29 gar Pare oak Noe ae Pies oR Gtaaas Gost wR jon OR eee BP eee AGENTS ARE NOT AUTHORIZED to modify this policy or to extend the time for paying a premium. IN WITNESS WHEREOF, The Company has caused this Policy to..be» executed: thisa2.c. ans day Giycn. sane (99 v. 150 § 2.) “Ordinary” SECTION 9414. payment” lif OHIO STANDARD LIFE INSURANCE POLICY. eu” (Insert “Ordinary” or “Limited Payment” Life Fixed Survivorship Annuity. ABE CO ors aera Amount $) .44esa eee ae eae Premiunt.d.y2. ot, a eee eee eweceteeer nee ee 0 6 6 8 OS 6 6 OC. 4 8 6 0 6 8 se 6 Om 6 @ Pons G0. 68) 678) 6 0586) aes i i a a ee a Tt ae eT Me CT A Ce es) Wa Cw Cm a SW a ee Ce ee 7 eee fe 8 6 8 6 6 8 6 8 Oe 6 8 O68 6 8 8 8 8. 6 @ in bs ee 8s See ee ese ee ee meee ere Of (Name of State) IN CONSIDERATION OF fae Dollars, receipt of which is hereby acknowledged, and of the pay- ment of (here insert amounts and times of payments of pre- miums) until (insert the “death of the insured” in ordinary life anda as as full years’ premiums shall have been paid or until the prior death of the insured” in limited pay- ment life), 59 PROMISES to. pay at its home office in............ Dollars in Twenty equal annual Installments of $.,...... er orc. Yu es es (herein called the Beneficiary), (insert “his” or “her”’) executor, administrator or assigns, with (insert “out” if so desired) right of revocation, if (insert “he” or “she’’) survives the Insured, otherwise to the execu- tors, administrators or assigns of the Insured, the first Installment being payable immediately upon receipt of due proof of the death of the Insured, any indebtedness to the Company on this Policy together with the balance, if any, of the then current year’s Premium being deducted from the amounts first payable under this contract. Should the Beneficiary live to receive the Twenty In- stallments payable to (insert “him” or “her’’) as above pro- vided, the Company will pay (insert “him” or “her”) annu- ally during the remainder of (insert “his” or “her’’) life the OTE an Se gen Se beginning one year after the date when the Twentieth Installment payable hereunder shall fall due. CHANGE OF BENEFICIARY.—When the right of revocation has been reserved, or in case of the death of any © beneficiary under either a revocable or irrevocable designa- tion, the insured, subject to any existing assignment of the policy, may designate a new beneficiary with or without reserving right of revocation by filing written notice thereof at the home office of the company, accompanied by the policy for suitable endorsement thereon. If any beneficiary shall die before the insured and the insured shall not have designated a new beneficiary the interest of such beneficiary shall be payable to the insured (insert “his” or “her’’) executors, administrators or assigns. If a new beneficiary shall be designated only twenty annual installments will be payable under this policy, and future (if necessary, insert “semi” or “quarter’) annual premiums will be reduced to ae ae ee dollars each. PAYMENT OF PREMIUMS.—tThe company will accept payment of premiums at other times than as stated above, as follows: etd sie (a0 Oh mi ae bm, S16 Oe ee 6. Fe 6 ee, B18 BB 6 0 "oe -6 8 5 6 10 6 0 6 0 6 6 pee & ee 6 8 oeoereerer eer eee eee se eee eee eee eee eee eee sree eee eee eee ee ee eo Upon return of this policy to the company accompanied by evidence satisfactory to the company of the death of the beneficiary the company will reduce the future (here insert “annual,” “semi-annual” or “quarterly”) premiums Except as herein provided the payment of a premium or installment thereof shall not maintain the policy in force beyond the date when the next premium or installment thereof is payable. All premiums are payable in advance at said home office, or to an agent of the company upon delivery of a receipt signed by one or more of the following officers of the company (insert titles of officers who may sign re-- ceipts), and countersigned by said agent. 60 A grace of one month subject to an interest charge at the wate. Ob ca aero ee per centum per annum shall be granted for the payment of every premium after the first, during which month the insurance shall continue in force. If the insured shall die during the month of grace the overdue premium will be deducted from any amount pay- able hereon in any settlement hereunder. CONDITIONS.—(The policy may here provide for restrictions of liability by reason of travel, occupation, change of residence and suicide. These restrictions except such as refer to military and naval service in time of war, must be applicable only to cases where the act of the in- sured provided against occurs within two years after the issuance of the policy.) INCONTESTABILITY.—This policy and the appli- cation therefor, a copy of which is endorsed hereon, con- stitute the entire contract between the parties and shall be incontestable from its date, except for non-payment of premiums and except as otherwise provided in this policy. All statements made by the insured in said application shall, in the absence of fraud, be deemed representations and not watranties. If the age of the insured has been misstated, or if the age of the beneficiary has been misstated, the amount pay- able hereunder shall be such as the premium paid would have purchased at the correct age. PARTICIPATION .—This policy shall participate in the surplus of the company and beginning not later than the end of the (insert first, second or third) policy year the company will annually determine and account for the portion of the divisible surplus accruing hereon. DIVIDENDS.—Dividends at the option of the owner of this policy will om thes koa aeaier GAY OL iGo tne of each year (here may be inserted “after the first policy year” or “after second policy year”) be either— (1t):*Paidiingeash=-or (2) Applied toward the payment of any premium or premiums, or (3) Applied to the purchase of paid up additions to the policy, payable in twenty annual installments at the same times as the original amount insured under this policy is payable. The payment of such twenty install- ments shall discharge the company from all liability on ac- count of such dividend additions; or ° ; (4) Left to accumulate to the credit of the policy with interest at (here insert a rate not exceeding that used by the company in calculating its reserves) per centum per annum and payable at the maturity of the policy, but withdrawable on any anniversary of the policy. Unless the owner of this policy shall elect otherwise within three months after the mailing by the company of a written notice requiring such election, the dividends shall be applied to the purchase of paid up additions. 61 LOANS.—After three full years’ premiums have been paid, the company at any time, while this policy is in force, will advance, on the proper assignment of the policy and on the sole security thereof, at a rate of interest not Preset Anas oe ce ee per centum per annum, which interest if not paid annually shall be added to the principal and bear the same rate of interest, a sum equal to, or, at the option of the owner of the policy, less than, the re- serve at the end of the current policy year required to provide for the twenty installments payable under this policy and for any dividend additions thereto, and no more, computed according to the (designate’ mortality table adopted by the company for computing reserves) mortality table and interest at the rate of (designate rate of interest adopted by the company for computing reserves) per centum per annum, less (here may be inserted not more than two and one-half) per centum of the amount insured by this policy and of any dividend additions thereto. The company, however, will deduct from such loan value any existing indebtedness to the company on the policy and any unpaid balance of the premium for the current policy year, and may collect interest in advance on the loan to the end of the current policy year. Such loan may be deferred by the company for not exceeding six months after the ap- plication therefor is made. Failure to repay any such advance or to pay interest shall not avoid this policy un- less the total indebtedness hereon to the company shall equal or exceed such loan value at the time of such failure and until one month after notice shall have been mailed by the company to the last known address of the insured and of the assignee, if any. No condition other than as herein provided shall be exacted as a prerequisite to any such advance. ASSIGNMENT.—No assignment of this policy shall be binding upon the company until it be filed with the com- pany at its said home office. The company assumes no responsibility as to the validity of any assignment. OPTIONS ON SURRENDER OR LAPSE.—After this policy shall have been in force three full years the owner, within one month after any default may elect (a) To accept the value of this policy in cash, or (b) To have the insurance continued in force from date of default without future participation and without the right to loans, for its face amount, including any out- standing divdend additions, less any indebtedness to the company hereon, or (c) To purchase non-participating paid-up insurance, payable, except as hereinafter provided, at the same times and on the same conditions as this policy. The cash value will be the reserve at the date of default required to pro- vide for the twenty installments payable under this policy and for any dividend additions thereto, computed accord- ing to the (designate mortality table adopted by the com- pany for computing reserves) mortality table and interest 62 at the rate of (designate rate of interest adopted by the company for computing reserves) per centum per annum, less (here may be inserted not more than two and one- half) per centum of the amount insured by this policy and of any dividend additions thereto, and less any exist- ing indebtedness to the company on this policy. Payment of such cash value may be deferred by the company for not exceeding six months after the application therefor is made. The term for which the insurance will be con- tinued or the amount of the paid-up policy will be such as the cash value will purchase as a net single premium at the attained age of the insured according to the (designate the mortality table adopted by the company for comput- ing reserves) mortality table and interest at the rate of (designate rate of interest adopted by the company for computing reserves) per centum per annum. If the owner shall not within one month from default surrender this policy to the company at its home office for a cash sur- render value or paid-up insurance as provided in option (a) and (c) the insurance will be continued as provided in option (b). The paid-up or continued temporary in- surance will be payable in twenty equal installments and the payment of twenty installments under either option shall discharge the company from all liability under this policy. The figures in the following table are computed in accordance with the above provisions and upon the assump- tion that there is no indebtedness on the policy, and that there are no outstanding dividend additions. ‘ (At the option of the company the following may be here inserted. “The figures apply to a policy for $1,000. As this con- tract is..for: Sion en the loan, cash, or paid-up insur- ance available in any year will be........... the amount stated in the table for that year.’’) 63 At Cash F end or Paid-Up Continued Insurance. of Loan Life Year, Value. insurance. Years. Months. Days. ae abet. -< eels s 8 eee es eae ie Meee o's 3 1A (a ape eae Ae ee tats Sree MCC aera eo as AO ee ae “Arne CR ale Ce ake Pee ede Aa LCS Se et ae og ore aA eS aA a Bp ea PR nl ows Oe Pec Ae oe 8 eo Tapereciy Lonestar ee OME a Fiat conte DEER TTS E CU er te ate hee steht Cidyhe A Seager Tit Si ty ae ey ny 5 SNe Nell Ae i dale CR. Se ea erates, 2 Sane aye a ects ale tee Se Wee ee ee tig ts ‘sac Roe Peabo te BCR I na a re PO ese a ee Se Pee CPE Merete eee a tala. rete nts Dee Whe ate Sn pi eR ee lo sea, Ls tee ee (ie Se & Sabet ea tlk Sa Gr Sea a De ers Rear ee ar fs ORO Uc tte Sele pa Gee es LOSSES RR Pe eareea DORE ek eit, Na Sern Meatates Oe Posy ote tre ees = Ss Sipe a os SSeS parce ah orian sgt A Poe ee See REC, STE ae is chs ate ERS ne es AOE ge eee ee ape St OG Sancta aw ae he fae a ita ae mF 70 fk Sah een a eRe, ae CG A Rae a heh vee Figures for later years will be furnished upon request. REINSTATEMENT.—In case of continued tempo- rary insurance under the above provisions, this policy, upon evidence of insurability satisfactory to the company, may be reinstated within the first three years of the term for which the insurance is continued by payment of arrears of premiums with interest at (here insert not greater than six) per centum per annum. See eee eee ee, 16, 8) 8) 6S 6 wi See 8.6 [9,8 OS 6. € 6 8) 6.0.46 e686) 6 ia © 6 e “eo 0 6116 “ee 6 be Se Sia 88 O18 eee) e) 9 eo) © <6 56. 6.8) 6) 6) 6 2 0:6, 660 6 0.16) © o:'e (6 © |S Ce "6 68 8 Seles © 6, 0 6 AGENTS ARE NOT AUTHORIZED to modify this policy or to extend the.time for paying a premium. IN WITNESS WHEREOF, The Company has caused ts policy to -be-executed this:.......... GAY OL ce or ott tie (99 v. 155 § 2.) SECTION 9415. Endowment OHIO STANDARD LIFE INSURANCE POLICY. — fversuin Endowment Fixed Survivorship Annuity. ENE Re tater ca TAs SPOR aaa ae Pomc ete iia 5: « ee Cee ee See) ARR ERS Ssh ee e/s ae. 8) 60/18 60a 6 8,Abn es 68) 6:0, w: 0.6: ebe 0: 16) bud. 6%. 6 0 ‘e ee ee ae OS See Oe eee eke te eee LW, a) ale ae ea: C6 Se aie a ip bie @.6 0.0 Pee ee een ka. ee OSS OR ARs ee Bye eee, ee) 0) 6.6 we &. 06-66 6 bie. © 0 ee 8 Of (Name of State) ONG LON OE oe ee a! Dollars, receipt of which is hereby acknowledged, and of the payment of (here insert amounts and times of pay- ments,of-prenmiums) Until S.e35 ee Sen Geceaete ee ee UIs G raattnoeae Sor ee, te Sidacte £2 Oita ais Sine ce She LACT oo tier palsy, pies eee 140, Skee Sees thew rs tet lene. Gini thee sere owt teen Saar eo ie ce 7 a yan ease ne SA eteortan Bae oat eg eae Saale ee 19 as eae et Sie aaa es Se ete BOG Ay on aia eee A ead eer bh Figures for later years will be furnished upon request. REINSTATEMENT.—In case of continued tempo- rary insurance under the above provisions, this policy, upon evidence of insurability satisfactory to the company, may be reinstated within the first three years of the term for which the insurance is continued by payment of arrears of premiums with interest at (here insert not greater than six) per centum per annum. oo e.4 © 00 0 ae 6g @ 80 le oO 8 16 0's 8 6) 0. 'e 6 Gs) 6) m6 C80 0m 6 6 6) Ole) ene a een eee ene een oO © O 6 0. 0° 6 0) 06,6 © ee s .. by, the payment of interést, thereon. at. ........ per centum per annum payable annually, to the payee under this policy at the end of each year during the life of the payee and by the payment upon the death of the payee of the said net sum and accrued interest to the executors, ad- ministrators or assigns of the payee, unless otherwise di- rected in said notice. (2) By the payment of equal annual installments for a specified number of years, the first installment being payable immediately, in accordance with the following table for each $1,000 of said net sum, 72 (3) By the payment of equal annual installments payable at the beginning of each year for a fixed period of twenty years and for so many years longer as the payee shall survive in accordance with the following table for each $1,0@0 of said net sum. Installments payable under options (2) or (3) which shall not have been paid prior to the death of the payee shall be paid, unless otherwise directed in said notice, to the executors, administrators or assigns of the payee. If the insured shall not have directed otherwive the beneficiary may, after the death of the insured, by like written notice, and with the written consent of the as- signee, if any, select either of the above options. Unless otherwise specified by the insured the payee may on any interest date receive the amount yet due under option (1), and may at any time receive the commuted value of payments yet to be made, computed upon the same basis as option (2) in the following table, provided that no such commutation will be made under (3), except after the death of the payee occurring within the aforesaid twenty years. TABLE OF INSTALLMENTS FOR EACH $1,000. Option (2) Option (3) Age of Payee when Policy becomes payable. Amount of Each Installment. Number of Annual Installments. Amount of ac Installment. i 73 AGENTS ARE NOT AUTHORIZED to modify this policy or to extend the time for paying a premium. IN WITNESS WHEREOF, The Company has caused this policy to be executed this.......... av eO le cap ess (99 v. 165 § 2.) SECTION 9417. Term with right to renew OHIO STANDARD LIFE INSURANCE POLICY. m4 change. Term With Right to Renew and Change. Sere Pe hee eee. ee © 16 ol ©) 6) 8 66, 6.8) 16:1'6 8) p 6 Oe, ee ig) an Dy 6 S06, 6. 8) 0 (el SG wh ee Oe ese VEC tet eee ENS loe cP neler 6 ial 616) @.\0).6) 6) Ne ‘O't “oe, (6, ue. (eine. eile. 6) 6) « 18) ie ©) iste. 8.6 oe, eh 6. 8! eles Cs hese me Se see) a Wee Kore) Re So) 0) 8-8 ela ew @..s).0: 6! © ©. « © 8 6:16 8. :g) @ bHe. se) a we ele Of (Name of State) NEON Sd DEBRA TION-OF Dw. eek Dollars, receipt of which is hereby acknowledged, and of the pay- ment of (here insert amounts and times of payments of PROMS ott wc e/a. ks full years’ premiums shall have been paid or until the prior death of the insured, PROMISES to pay upon receipt at the home office of CDG TCT E100 16 Ete a of due proof of the death DR ater eee Sa ete Be CGUMIyeO trols seca State Sree Nee Cle hin ie as Ss , herein called the Insured, within fe See years from the date hereof..........Dollars, less any indebtedness hereon to the Company and any un- paid portion of the premium for the then current policy year, at said home office, to.......... DENneheat.. ce with (insert “out” if so desired) right of revocation. CHANGE OF BENEFICIARY.—When the right of revocation has been reserved, or in the case of the death of any beneficiary under either a revocable or irrevocable des- ignation, the insured, subject to any existing assignment of the policy, may designate a new beneficiary with or without reserving right of revocation by filing written notice thereof at the home office of the company, accompanied by the policy for suitable endorsement thereon. If any beneficiary shall die before the insured and the insured shall not have designated a new beneficiary the interest of such beneficiary shall be payable to the insured, (insert “his” or “her’’) executors, administrators or assigns. PAYMENT OF PREMIUMS.—The company will accept payment of premiums at other times than as stated above, as follows: Pee ORAS er er eee Sok 616) 8) 6, 8 Me oS. Sew he ee eho es Be a 9 616.8) 6 RUS me ele ble ce } ue Except as herein provided the payment of a premium or installment thereof shall not maintain the policy in force beyond the date when the next premium or installment thereof is payable. All premiums are payable in advance at said home office, or to an agent of the company upon delivery of a receipt signed by one or more of the following officers of 74 the company (insert titles of officers who may sign re- ceipts) and countersigned by said agent. A grace of one month subject to an interest charge at the tate ol. 3.2. eee per centum per annum shall be granted for the payment of every premium after the first, during which month the insurance shall continue in force. If the insured shall die during the month of grace the over- due premium will be deducted from any amount payable hereon in any settlement hereunder. CONDITIONS.—(The policy may here provide for restrictions of liability by reason of travel, occupation, change of residence and suicide. These restrictions except such as refer to military and naval service in time of war, must be applicable only to cases where the act of the in- sured provided against occurs within two years after the issuance of the policy.) INCONTESTABILITY.—This policy and the appli- cation therefor, a copy of which is endorsed hereon, consti- tute the entire contract between the parties and shall be incontestable from its date, except for non-payment of pre- miums and except as otherwise provided in this policy. All statements made by the insured in said application shall, in the absence of fraud, be deemed representations and not warranties. If the age of the insured has been misstated, the amount payable hereunder shall be such as the premium paid would have purchased at the correct age. PARTICIPATION.—This policy shall participate in the surplus of the company and beginning not later than the end of the (insert first, second or third) policy year the company wil annually determine and account for the por- tion of the divisible surplus accruing hereon. DIVIDENDS.—Dividends at the option of the owner of this policy shall on the. >3.- 2. oa Ody Oia Cote ons of each year (here may be inserted “after the first policy year” or “after second policy year”) be either — (I) > “Paid=in cash..o7 (2) Applied toward the payment of any premium or premiums, (The policy, at the option of the company, may here provide for a further option as follows:) (3) Left to accumplate to the credit of the policy with interest at (here insert a rate not exceeding that used by the company in calculating its reserves) per centum per annum and payable at the maturity of the policy, or at the expiration of the term, but withdrawable on any anniver- sary of the policy. Unless the owner of this policy shall elect otherwise within three months after the mailing by the company of a written notice requiring such election, the dividends shall be applied to the payment of premiums. (If the renewal term is for ten years or less, the policy may provide, as an alternative to the annual distribu- tion of dividends, for a distribution in periods of ten years or less as follows: hia 75 Dividends accruing hereon shall be accumulated during each renewal period and at the end of each period on re- newal of the policy by the insured shall be paid as an an- nuity for the next succeeding renewal term and applied towards the payment of premiums during such term. PRIVILEGE OF RENEWAL.—The owner of this policy, if the insured be not over the age of sixty-five years, may renew this policy for further terms of........ years each by written notice to the company at its said home office accompanied by this policy for suitable endorsement on or before the expiration of the insurance hereunder and by paying the premiums to be fixed by the age on the birthday nearest to the date of such renewal in accordance with the following table for each one thousand dollars of insurance; if the insured shall be over the age of sixty- five years this policy may upon similar notice be surren- dered for an ordinary life policy which shall require premiums during life in accordance with the following table for each one thousand dollars of insurance: TABLE OF PREMIUMS FOR RENEWALS. Wears. Ordinary Term Pre- : Life Pre- Attained mium payable Attained mium pay- ge. in ad- Age. able in ad- vance for vance for each $1,000 each $1,000. PRIVILEGE TO CHANGE TO OTHER FORMS OF POLICIES.—The owner of this policy may at any time within the first.......... years exchange this policy 76 for a participating policy for the same amount or any less amount upon the ordinary life, limited payment life or en- dowment plan upon any anniversary of the policy, or within the month of grace by surrendering the policy to the company at said home office with written notice of the election and by paying the premiums to be fixed by the age on the birthday nearest to the date of such exchange, according to the rates of the company then in force. ASSIGNMENT.—No assignment of this policy shall be binding upon the company, until it be filed with the com- pany at its said home office. The company assumes no responsibility as to the validity of any assignment. (If the term of the policy is for more than twenty years, the company shall provide for continuance of insur- ance on surrender or lapse in the following form:) CONTINUANCE OF INSURANCE ON LAPSE.— In event of default in premium payments after this policy shall have been in force three full years, the reserve hereon according to the (designate mortality table adopted by the company for computing reserves) mortality table and in- terest at the rate of (designate rate of interest adopted by the company for computing reserves) per centum per annum, less (here may be inserted not more than two and one-half) per centum of the amount insured by this policy will be applied to the purchase of non-participating con- tinued temporary insurance for the face amount of this policy at net single premium rates at the attained age of the insured according to the same table of mortality and rate of interest. TABLE OF CONTINUED INSURANCE. At end Continued Insurance. of year. Years. Months. Days. eats © © 6le.6 es & 6 tees Ww Og en 6a 6 7" PPA e 6) 6 ein eee oe e308 ee eS 2 ele”) 6k eee Meteo 8 Sie Ss . ee 8h eee eee © 6 @ ele et acd ee wes | late ke 6 Ae Oe OP eee, te ee ee Ce oe 6 6 2 6 me Sane @ | Thee eae ee) ey Re Oe Ik) ee eee ee oes 8 @ BW Cer ee ee ww ae ee. eh Ore Reka oe Oe re Owe Oe ee ee 77 Figures for later years will be furnished upon request. (If the term of the policy is for more than twenty years, the company shall provide for reinstatement in the following form: REINSTATEMENT.—Upon evidence of insurability satisfactory to the company this policy may be reinstated within the first three years of the term for which the in- surance is continued by payment of arrears of premiums with interest at (here insert not greater than six) per centum per annum. OPTIONS AT MATURITY.—The insured, by written notice to the company at its home office, and with written consent of the assignee and irrevocable beneficiary, if any, may elect to have the net sum payable under this policy paid either in cash or as follows: (1). By the payment of interest thereon at ......... per centum per annum, payable annually, to the payee under this policy at the end of each year during the life of the payee and by the payment upon the death of the payee of the said net sum and accrued interest to the exec- utors, administrators or assigns of the payee, unless other- wise directed in said notice. (2) By the payment of equal annual installments for a specified number of years, the first installment being payable immediately, in accordance with the following table for each $1,000 of said net sum. (3) By the payment of equal annual installments pay- able at the beginning of each year for a fixed period of twenty years and for so many years longer as the payee shall survive in accordance with the following table for each $1,000 of said net sum. Installments payable under options (2) or (3) which shall not have: been paid prior to the death of the payee shall be paid, unless otherwise directed in said notice, to the executors, administrators or assigns of the payee. If the insured shall not have directed otherwise the beneficiary may, after the death of the insured, by like written notice, and with the written consent of the as- signee, if any, select either of the above options. Unless otherwise specified by the insured the payee may on any interest date receive the amount yet due under option (1), and may at any time receive the commuted value of payments yet to be made, computed upon the same basis as option (2) in the following table, provided that no such commutation will be made under (3), except after the death of the pavee occurring within the aforesaid twenty years. 78 . TABLE OF INSTALLMENTS FOR EACH $1,000. Option (2) Option (3) Age of Payee Number of Amount of when Policy Amount of Annual ac becomes ac Installments, Installment. payable. Installment. AGENTS ARE NOT AUTHORIZED to modify this policy or to extend the time for paying a premium. IN WITNESS WHEREOF, The Company has caused this Policy to be executed this ...... Gaol cai. (99 v. 165 § 2.) Single pre- SECTION 9418. Single premium policies may be issued mium and . : : ; : non-participat- In any form prescribed in section ninety-four hundred and ing Policies. —_ twelve to ninety-four hundred and seventeen, both inclusive, omitting therefrom provisions or portions thereof applicable only to other than single premium policies. Non-partici- pating policies may be issued in any form prescribed in such sections if they shall contain a provision that the policy shall be non-participating, and such policies shall omit therefrom clauses for participation in the surplus of the company. (99 v. 170 § 3.) Preliminary SECTION 9419. Policies issued on the standard forms prescribed in such section may provide for not more than one year preliminary term insurance by incorporation therein of the following clause immediately preceding the “Change of Beneficiary clause” : — 79 “The first year’s insurance under this Policy is Term insurance.” If the premium charged for Term insurance under a Limited-Payment Life or Endowment Preliminary Term policy providing for the payment of all premiums thereon in less than twenty years from the date of the policy, exceeds that charged for like insurance under Whole Life Preliminary Term policies of the same company, the re- serve thereon at the end of any year, including the first, shall not be less than the reserve on a Whole Life Pre- liminary Term Policy issued in the same year and at the same age together with an amount which shall be equiva- lent to the accumulation of a net level premium sufficient to provide for a Pure Endowment at the end of the premium-payment period equal to the difference between the value at the end of such period of such a Whole Life Preliminary Term Policy and the full reserve at such time of such a Limited-Payment Life or Endowment Policy. (99 v. 170 § 4.) SECTION 9420. No policy of life insurance in form other than as provided in sections ninety-four hundred and twelve to ninety-four hundred and seventeen, both inclusive, shall be issued or delivered in this state or be issued by a life insurance company organized under the laws of this state unless the same shall contain the following provisions: (1) A provision that all premiums shall be payable in advance either at the home office of the company, or to an agent of the company, upon delivery of a receipt signed by one or more of the officers who shall be named in the policy. (2) A provision for a grace of one month for the payment of every premium after the first, which may be subject to an interest charge, during which month the in- surance shall continue in force, which provision may con- tain a stipulation that if the insured shall die during the month of grace the overdue premium will be deducted in any settlement under the policy. (3) A provision that the policy and the application therefor, a copy of which must be endorsed thereon, shall constitute the entire contract between the parties and shall be incontestable after two years from its date, except for non-payment of premiums and except for violations of the conditions of the policy relating to naval and military service in time of war. (4) A provision that all statements made by the in- sured in the application shall, in the absence of fraud, be deemed representations and not warranties. (5) A provision that if the age of the insured has been understated the amount payable under the policy shall be such as the premium would have purchased at the cor- réct age, (6) 9486. Visitation and examination; action in 9469 Certificate shall constitute agreement. “Alpes ~. 7 ; quo warranto, on failure to com 9469-1. Exception as to commercial travel- ply with act; notice. Cree 9487. Application for receiver, ete. 9470. Investment, disbursement and ap- | 9488. Examination of foreign societies; plication of funds; liabilities. effect of refusal. 9471. How funds invested. — 9489. No publicity pending investigation. 9472. (Laws of society providing for pay- 9490. Causes for revocation; notice; review. ment must state purpose.) 9491. Lodges and societies excepted from 9478. Articles. of incorporation; record, this act. preliminary certificate; society may | 992. Place of meeting; office. solicit members, when; restrictions | 9493. meee one! liability. on liabilities; examination by su- | 9%4%- Waiver of the provisions of the laws. perintendent of insurance; certifi- | 9495. Separate jurisdiction isla ch cate; expiration of preliminary 9496. yredid aot and laws; amendments. certificate; powers of society. 9497. Annual reports. : ee Sas 2 9498. Examination of domestic associations. 9474, What societies may incorporate but 9499. Quo warranto. not compelled to do so. | 9500 Hearing must be had before insti- 9475. ater oy, contract in writing; ap- tuting suit. Proval of merger. & Att — al institute it. 9476. License and renewal; fee. soe Ne aati tiveien aaa RetaHOne! 9477. License to foreign society ,and how 9503. When examination refused. obtained; renewal; qualifications; 9504. RevocationnGelicense: 3 fee; refusal — revocation. 9505. Decisions of superintendent may be 9478. Supt. attorney for societies, on reviewed. : os whom legal process shall be served; 9506. Exemption of certain associations. _ ideo sufficient evidence; time of 9507. Sieee ee may require certain pleading. information. 9479, Place of meetings. 9508. Construction, ‘ 9480. Non-individual liability. 9509. Vacancy in office of superintendent. SECTION 9462. § 1. Any corporation, society, order, Fraternal | benefit society defined. or voluntary association, without capital stock, organized and carried on solely for the mutual benefit of its members and their beneficiaries, and not for profit, and having a lodge system with ritualistic form of work and representative form of government, and which shall make provision for the payment of benefits in accordance with section 5 hereof, is hereby declared to be a fraternal benefit society. SECTION 9462-1. Any fraternal benefit society au- thorized to do business in this state and operating on the lodge plan, may provide in its constitution and by-laws, in addition to other benefits provided for therein, for the payment of death or annuity benefits upon the lives of children between the ages of two and eighteen years at next birthday, for whose support and maintenance a mem- ber of such society is responsible. Any such society may at its option, organize and operate branches for such chil- dren, and membership in local lodges and initiation therein 99 Schedule of benefits for protection and maintenance of members. When benefit certificate shall be issued; basis of benefit con- tributions, Reserve re- quired; separate and distinct funds; new certifi- cates. 1f0/@) shall not be required of such children, nor shall they have any voice in the management of the society. The total benefits payable as above provided shall in no case exceed the following amounts at ages at next birthday at time of death, respectively, as follows: two, thirty-four dollars; three, forty dollars; four, forty-eight dollars; five, fifty- eight dollars; six, one hundred and forty dollars; seven, one hundred and sixty-eight dollars; eight, two hundred dollars; nine, two hundred and forty dollars; ten, three hundred dollars; eleven, three hundred and eighty dollars ; twelve, four hundred and sixty dollars; thirteen to fifteen, five hundred and twenty dollars; and sixteen to eighteen years, where not otherwise authorized by law, six hundred dollars. SECTION 9462-2. No benefit certificate as to any child shall take effect until after medical examination or inspection by a licensed medical practitioner, in accordance with the laws of the society, nor shall any such benefit certificate be issued unless the society shall simultaneously put in force at least five hundred certificates, on each of which at least one assessment has been paid, nor where the number of lives represented by such certificate falls below five hundred. The death benefit contributions to be made upon such certificate shall be based upon the “Stand- ard Industrial Mortality Table” or the “English Life Table Number Six” and a rate of interest not greater than four per cent. per annum, or upon a higher standard; provided that contributions may be waived or returns may be made from any surplus held in excess of reserve and other liabilities, as provided in the by-laws, and, provided further that extra contributions shall be made if the reserves here- after provided for become impaired. SECTION 9462-3. Any society entering into such in- surance agreements shail maintain on all such contracts the reserve required by the standard of mortality and in- terest adopted by the society for computing contributions as provided in section 2, and the funds representing the benefit contributions and all accretions thereon shall be kept as separate and distinct funds, independent of the other funds of the society, and shall not be liable for nor used for the payment of the debts and obligations of the society other than the benefits herein authorized; pro- vided, that a society may provide that when a child reaches the minimum age for initiation into membership in such society, any benefit certificate issued hereunder may be surrendered for cancellation and exchanged for any other form of certificate issued by the society, provided that such surrender will not reduce the number of lives insured in the branch below five hundred, and upon the issuance of such new certificate any reserve upon the original cer- tificate herein provided for shall be transferred to the credit of the new certificate. Neither the person who originally made application for benefits on account of such child, nor the beneficiary named in such original certificate, nor the IOI person who paid the contributions, shall have any vested right in such new certificate, the free nomination of a beneficiary under the new certificate being left to the child so admitted to benefit membership. SECTION 9462-4. An entirely separate financial state- ment of the business transactions and of assets and liabili- ties arising therefrom shall be made in its annual report to the insurance commissioner by any society availing itself of the provisions hereof. The separation of assets, funds and liabilities required hereby shall not be terminated, re- scinded or modified, nor shall the funds be diverted for any use other than as specified in section 3, as long as any certificates issued hereunder remain in force, and this re- quirement shall be recognized and enforced in any liquida- tion, reinsurance, merger or other change in the condition of the status of the society. SECTION 9462-5. Any society shall have the right to provide in its laws and the certificate issued hereunder for specified payments on account of the expense or gen- eral fund, which payments shall or shall not be mingled with the general fund of the society as its constitution and by-laws may provide. SECTION 9462-6. In the event of the termination of membership in the society by the person responsible for the support of any child, on whose account a certificate may have been issued, as provided herein, the certificate may be continued for the benefit of the estate of the child, provided the contributions are continued, or for the benefit of such child, who shall assume the payment of the re- quired contributions. SECTION 9463. {§[ 2. Any society having a supreme governing or legislative body and subordinate lodges or branches by whatever name known, into which members shall be elected, initiated and admitted in accordance with its constitution, laws, rules, regulations and prescribed rit- ualistic ceremonies, which subordinate lodges or branches shall be required by the laws of such society to hold regular or stated meetings at least once in each month, shall be deemed to be operating on the lodge system. SECTION 9464. {[ 3. Any such society shall be deemed to have a representative form of government when it shall provide in its constitution and laws for a supreme legislative or governing body, composed of representatives elected either by the members or by delegates elected directly or indirectly by the members, together with such other mem- bers as may be prescribed by its constitution and laws; pro- vided, that the elective members shall constitute a majority in number and have not less than two-thirds of the votes, nor less than the votes required to amend its constitution and laws; and provided further, that the meetings of the supreme or governing body, and the election of officers, representatives or delegates shall be held as often as once Separate financial statement required in annual re- port. Mingling of funds. Certificate may be con- tinued for benefit of estate of the child. Lodge system. Representative form of gov- ernment. Exempt from insurance laws. Society shall pay benefits. When ex- tended and paid up pro- tectlon may be granted. To whom benefits shall be paid. 102 in four years. The members, officers, representatives or delegates of a fraternal benefit society shall not vote by proxy. SECTION 9465. {| 4. : Except as herein provided, such societies shall be governed by this act, and shall be exempt from all provisions of the insurance laws of this state, not only in governmental relations with the state, but for every other purpose, and no law hereafter enacted shall apply to them, unless they be expressly designated therein. SECTION 9466. § 5. Subsection 1. Every society” transacting business under this act shall provide for the payment of death benefits, and may provide for the pay- ment of benefits in case of temporary or permanent physical disability, either as the result of disease, accident or old age; provided, the period of life at which the payment of benefits for disability on account of old age shall com- mence, shall not be under seventy years, and may provide for monuments or tombstones to the memory of its de- ceased members, and for the payment of funeral benefits. Such society shall have the power to give a member, when permanently disabled or on attaining the age of seventy, all, or such portion of the face value of his certificate as the laws of the society may provide; provided, that nothing in this act contained shall be so construed as to prevent the issuing of benefit certificates for a term of years less than the whole of life which are payable upon the death or disability of the member occurring within the term for which the benefit certificate may be issued. Such society shall, upon written application of the member, have the power to accept a part of the periodical contributions in cash, and charge the remainder, not exceeding one-half of the pe- riodical contribution, against the certificate with interest pay- able or compounded annually at a rate not lower than four per cent. per annum; provided, that this privilege shall not be granted except to societies which have readjusted or may hereafter readjust their rates of contributions, and to contracts affected by such readjustment. Subsection 2. Any society which shall show by the — annual valuation hereinafter provided for that it is accu- mulating and maintaining the reserve necessary to enable it~ to do so, under a table of mortality not lower than the — American Experience Table and four per cent. interest may grant to its members, extended and paid up protection, or such withdrawal equities as its constitution and laws may — provide; provided, that such grants shall in no case exceed in value the portion of the reserve to the credit of such — members to whom they are made. SECTION 9467. { 6. The payment of death benefits shall be confined to wife, husband, relative by blood to the fourth degree, father-in-law, mother-in-law, son-in-law, daughter-in-law, stepfather, stepmother, stepchildren, chil- dren by legal adoption, or to a person or persons depend- 103 ent upon the member; provided, that if after the issuance of the original certificate the member shall become depend- ent upon an incorporated charitable institution, he shall have the privilege with the consent of the society, to make such institution his beneficiary. Within the above restric- tions each member shall have the right to designate his bene- ficiary, and from time to time, have the same changed in accordance with the laws, rules or regulations of the so- ciety, and no beneficiary shall have or obtain any vested interest in such benefit until the. same has become due and payable upon the death of such member; provided, that any society may, by its laws, limit the scope of beneficiaries within the above classes. SECTION 9468. § 7. Any society may admit to beneficial membership any person not less than sixteen and not more than sixty years of age, who has been examined by a legally qualified physician, and whose examination has been supervised and approved in accordance with the laws of the society; provided, that any beneficiary member of such society who shall apply for a certificate providing for disability benefits, need not be required to pass an addi- tional medical examination therefor; and any society limit- ing its membership to any one hazardous occupation may issue certificates providing for accident disability benefits to beneficiary members not more than seventy years of age. Nothing herein contained shall prevent any society from ac- cepting general or social members. SECTION 9469. {| 8. Every certificate issued by any such society shall specify the amount of benefit provided thereby, and shall provide that the certificate, the charter or articles of incorporation, of, if a voluntary association, the articles of association, the constitution and laws of the society and the application for membership and medical examination, signed by the applicant, and all amendments to each thereof, shall constitute the agreement between the society and the member, and copies of the same certified by the secretary of the society, or corresponding officer, shall be received in evidence of the terms and conditions thereof, and any changes, additions or amendments to such charter or articles of incorporation, or articles of associa- tion, if a voluntary association, constitution or laws duly made or enacted subsequent to the issuance of the benefit certificate shall bind the members and his beneficiaries, and shall govern and control the agreement in all respects the same as though such changes, additions or amendments had be made prior to and were in force at the time of the application for membership. Sec. 9469-1. The provisions of section ninety-four hundred and sixty-nine of the General Code, requiring the certificate to specify the maximum amount of benefit pro- vided thereby and the conditions governing the payment thereof, shall not apply to the certificates of a fraternal beneficiary association organized under the laws of Ohio, Age limits for admission to membership in fraternal benefit so- cieties. Certificate _ shall constitute agreement. Exception as to commercial travelers. Investment, disbursement and application of funds. Liabilities, How funds invested. 104 whose membership consists of commercial travelers and which does not obligate itself to pay stipulated amounts of benefits in case of natural death. SECTION 9470. { 9. Subsection 1. Any _ society may create, maintain, invest, disburse and apply an emer- gency, surplus or other similar fund in accordance with its laws. Unless otherwise provided in the contract, such funds shall be held, invested and disbursed for the use and benefit of the society, and no member or beneficiary shall have or acquire individual rights therein or become entitled to any apportionment or the surrender of any part thereof, except as provided in subsection 2 of section 5 of this act. The funds from which benefits shall be paid and the funds from which the expenses of the society shall be defrayed, shall be derived from periodical or other pay- ments by the members of the society and accretions of such funds; provided, that no society, domestic or foreign, shall hereafter be incorporated or admitted to transact business in this state, which does not provide for stated periodical contributions sufficient to provide for meeting the mortuary obligations contracted, when valued upon the basis of the National Fraternal Congress Table of Mortality as adopted by the National Fraternal Congress, August 23, 1899, or any higher standard, with interest assumption not more than four per cent, per annum, nor write or accept members for temporary or permanent disability benefits except upon tables based upon reliable experience, with an interest as- sumption not higher than four per cent. per annum. Subsection 2. Deferred payments or installments of claims shall be considered as fixed liabilities on the happen- ing of the contingency upon which such payments or in- stallments are thereafter to be paid. Such liabilities shall be the present value of such future payments or installments upon the rate of interest and mortality assumed by the so- ciety for valuation, and every society shall maintain a fund sufficient to meet such liability regardless of proposed fu- ture collections to meet any such liabilities. SECTION 9471. {| 10. Every society shall invest its funds only in securities permitted by the laws of this state for the investment of the assets of life insurance com- panies; provided, that any foreign society permitted or seeking to do business in this state, which invests its funds in accordance with the laws of the state in which it is in- corporated, shall be held to meet the requirements of this act for the investment of funds. SECTION 9472. {| 11. Every provision of the laws of the society for payment by members of such society, in whatever form made, shall distinctly state the purpose of the same and the proportion thereof which may be used for expenses, and no part of the money collected for mor- tuary or disability purposes of the net accretions of either or any of such funds shall be used for expenses. E P 4 q 4 4 105 SECTION 9473. {| 12. ‘Seven or more persons, citi- zens of the United States, and a majority of whom are citi- zens of this state, who desire to form a fraternal benefit society, as defined by this act, may make and sign (giving their addresses) and acknowledge before some officer com- petent to take acknoweldgment of deeds, articles of in- corporation, in which shall be stated: Ist. hat proposed corporated name of the society, which shall not so closely resemble the name of any society or insurance company already transacting business in this state as to mislead the public or lead to confusion; 2d. The purpose for which it is formed — which shall not include more liberal powers than are granted by this act, provided that any lawful, social, intellectual, educa- tional, charitable, benevolent, moral or religious advantages may be set forth among the purposes of the society — and the mode in which its corporate powers are to be exercised; 3d. The names, residences and official titles of all the officers, trustees, directors or other persons who are to have and exercise the general control and management of the affairs and funds of the society for the first year or until the ensuing election at which all such officers shall be elected by the supreme legislative or governing body, which election shall be held not later than one year from the date of the issuance of the permanent certificate. Such articles of incorporation and duly certified copies of the constitution and laws, rules and regulations, and copies of all proposed forms of benefit certificates, applica- tions therefor and circulars to be issued by such society, and a bond in the sum of five thousand dollars, with sureties . approved by the superintendent of insurance, conditioned upon the return of the advanced payments, as provided in this section, to applicants, if the organization is not com- pleted within one year, shall be filed with the superintendent of insurance, who may require such further information as he deems necessary, and if the purposes of the society conform to the requirements of this act, and all provisions of law have been complied with, the superintendent of in- surance shall so certify and retain and record the articles of incorporation, and furnish the incorporators a prelimi- nary certificate authorizing such society to solicit members as hereinafter provided. Upon receipt of such certificate from the superin- tendent of insurance, said society may solicit members for the purpose of completing its organization and shall collect from each applicant the amount of not less than one regular monthly payment, in accordance with its table of rates as provided by its constitution and laws, and shall issue to each such applicant a receipt for the amount so collected. But no such society shall incur any liability other than for such advanced payments, nor issue any benefit certificate nor pay or allow, or offer or promise to pay or allow, to any person any death or disability benefit until actual bona fide applications for death benefit certificates have been Articles of incorporation. Record pre- liminary cer- tificate, Society may solicit mem- bers when. Restriction on liabilities. Examination by superin- tendent of insurance, Certificate. 106 secured upon at least five hundred lives for at least one thousand dollars each, and all such applicants for death benefits, shall have been regularly examined by legally quali- fied practicing physicians, and certificates of such examina- tions have been duly filed and approved by the chief medical examiner of such society; nor until there shall be established ten subordinate lodges or branches into which such five hundred applicants have been initiated; nor until there has been submitted to the superintendent of insurance, under oath of the president and secretary, or corresponding offi- cers of such society, a list of such applicants, giving their names, addresses, date examined, date approved, date ini- tiated, name and number of the subordinate branch of which each applicant is a member, amount of benefits to be granted, rate of stated periodical contributions, which shall be sufficient to provide for meeting the mortuary obligation, contracted, when valued for death benefits upon the basis of the National Fraternal Congress Table of Mortality, as adopted by the National Fraternal Congress August 23, 1899, or any higher standard at the ‘option of the society, and for disability benefits by tables based upon reliable experience and for combined death and permanent total disability benefits by tables based upon reliable experi- ence, with an interest assumption not higher than four per cent. per annum; nor until it shall be shown to the superin- tendent of insurance by the sworn statement of the treas- urer, or corresponding officer of such society, that at least five hundred applicants have each paid in cash at least one regular monthly payment as herein provided per one thousand dollars of indemnity to be effected, which pay- ments in the aggregate shall amount to at least twenty-five hundred dollars; all of which shall be credited to the mor- tuary or disability fund on account of such applicants, and no part of which may be used for expenses. Such advanced payments shall, during the period of organization, be held in trust, and, if the organization is not completed within one year as hereinafter provided, re- turned to such applicants. The superintendent of insurance may make such ex- amination and require such further information as he deems advisable, and, upon presentation of satisfactory evi- dence that the society has complied with all the provisions of law, he shall issue to such society a certificate to that effect. Such certificate shall be prima facie evidence of the existence of such society at the. date of such certificate. The superintendent of insurance shall cause a record of such certificate to be made and a certified copy of such record may be given in evidence with like effect as the original certificate. No preliminary certificate granted under the provisions of this section shall be valid after one year from its date, or after such further period, not exceeding one year, as may be authorized by the superintendent of insurance, upon cause shown; unless the five hundred applicants herein re- —— ee eee! ee oe, ee eS Se —s as 107 quired have been secured and the organization has been completed as herein provided; and the articles of incorpora- tion and all proceedings thereunder shall become null and void in one year from the date of such preliminary certifi- cate, or at the expiration of such extended period, unless such society shall have completed its organization and com- menced business as herein provided. When any domestic society shall have discontinued business for the period of one year, or has less than 400 members, its charter shall become null and void. Every such society shall have the power to make a constitution and by-laws for the government of the society, the admission of its members, the management of its affairs and the fixing and readjusting of the rates of-contribution of its members from time to time; and it shall have the power to change, alter, add to or amend such constitution and by-laws and shall have such other powers as are neces- sary and incidental to carrying into effect the objects and purposes of the society. SECTION 9474. {| 13. Any society. now engaged in transacting business in this state may exercise, after the pas- sage of this act, all of the rights conferred thereby, and all of the rights, powers and privileges now exercised or pos- sessed by it under its charter or articles of incorporation not inconsistent with this act, if incorporated; or, if it be a voluntary association, it may incorporate hereunder. But no society already organized shall be required to incorporate hereunder, and any such society may amend its articles of incorporation from time to time in the manner provided therein or in its constitution and laws, and all such amend- ments shall be filed with the superintendent of insurance and shall become operative upon such filing, unless a later time be provided in such amendments or in its articles of incorporation, constitution or laws. SECTION 9475. § 14. No domestic society shall merge with or accept the transfer of the membership or funds of any other society unless such merger or transfer is evi- denced by a contract in writing, setting out in full the terms and conditions of such merger or transfer, and filed with the superintendent of insurance of this state, together with a sworn statement of the financial condititon of each of said societies, by its president and secretary, or corre- sponding officers, and a certificate of such officers, duly verified under oath of such officers of each of the con- tracting societies, that such merger or transfer has been approved by a vote of two-thirds of the members of the supreme legislative or, governing body of each of said societies. Upon the submission of such contract, financial state- ments and certificates, the superintendent of insurance shall examine the same, and, if he shall find such financial state- ments to be correct and the such contract to be in conformity with the provisions of this section, and that such merger Merger by contract in writing. 108 or transfer is just and equitable to the members of each of said societies, he shall approve such merger or transfer, issue his certificate to that effect and thereupon the such contract or merger or transfer shall be of full force and effect. - In case such contract is not approved, the fact of its submission and its contents shall not be disclosed by the superintendent of insurance. | iivendetend SECTION 9476. § 15. Societies which are now au- eral: thorized to transact business in this state may continue such business until the first day of April next succeeding the passage of this act, and the authority of such societies may thereafter be renewed annually, but in all cases to terminate on the first day of the succeeding April; provided, how- ever, the license shall continue in full force and effect until the new license be issued or specifically refused. For each such license of renewal the society shall pay the superin- | tendent of insurance twenty-five dollars. A duly certified copy or duplicate of such license shall be prima facie evi- dence that the licensee is a fraternal benefit society within the meaning of this act. License to for- SECTION 9477. § 16. No foreign society now trans- ant how. acting business, organized prior to the passage of this act, obtained. which is not now authorized to transact business in this state, shall transact any business herein without a license from the superintendent of insurance. Any such society shall be entitled to a license to transact business within this state upon filing with the superintendent a duly certified copy of its charter or articles of association; a copy of its constitution and laws, certified by its secretary or cor- responding officer; a power of attorney to the superin- tendent as hereinafter provided; a stattement of its business under oath of its president and secretary, or corresponding officers, in the form required by the superintendent, duly verified by an examination made by the supervising insurance official of its home state or other state satisfactory to the superintendent of insurance of this state; a certificate from the proper official in its home state, province or country, that the society is legally organized; a copy of its,contract, which must show that benefits are provided for by period- ical, or other payments by persons holding similar con- tracts; and upon furnishing the superintendent such other information as he may deem necessary to a proper exhibit — of its business and plan of working, and upon showing that its assets are invested in accordance with the laws of the state, territory, district, province or country where it is organized, he shall issue a license to such society to do business in this state until the first day of the succeeding | April, and such license shall, upon compliance with the provisions of this act, be renewed annually, but in all cases to terminate on the first day of the succeeding April; pro- vided, however, that license shall continue in full force and effect until the new license be issued or specifically refused. 109 Any foreign society desiring admission to this state shall have the qualifications required of domestic societies or- ganized under this act and have its assets invested as re- quired by the laws of the state, territory, district, country, or province where it is organized. For each such license or renewal the society shall pay the superintendent twenty- five dollars. When the superintendent refuses to license any society, or revokes its authority to do business in this state, he shall reduce his ruling, order or decision to writing and file the same in his office, and shall furnish a copy thereof, together with a statement of his reasons, to the officers of the society, upon request, and the action of the superintendent shall be reviewable by proper proceedings in any court of competent jurisdiction within the state; provided, however, that nothing contained in this or the preceding section shall be taken or construed as preventing any such society from continuing in good faith all contracts made in this state during the time such society was legally authorized to transact business herein. SECTION 9478. § 17. Every society, whether domestic or foreign, now transacting business in this state shall, within thirty days after the passage of this act, and every such society, hereafter applying for dismissal, shall, be- fore being licensed, appoint in writing the superintendent of insurance and his successors in office to be its true and lawful attorney, upon whom all legal process in any action or proceeding against it shall be served, and in such writing shall agree that any lawful process against it which is served upon such attorney shall be of the same legal force and validity as if served upon the society and that the authority shall continue in force so long as any liability remains out- standing in this state. Copies of such appointment, certified by such superin- tendent of insurance, shall be deemed sufficient evidence thereof and shall be admitted in evidence with the same force and effect as the original thereof might be admitted. Service shall only be made upon such attorney, must be made in duplicate upon the superintendent of insurance or in his absence upon the person in charge of his office and shall be deemed sufficient service upon such society; pro- vided, however, that no such service shall be valid or bind- ing against any such society when it is required thereunder to file its answer, pleading or defense in less than thirty days from the date of mailing the copy of such service to such society. When legal process against any such society is served upon such superintendent of insurance he shall forthwith forward by registered mail one of the duplicate copies prepaid and directed to its secretary of correspond- ing officer. Legal process shall not be served upon any such society except in the manner provided herein. SECTION 9479. § 18. Any domestic society may pro- vide that the meetings of its legislative or governing body may be held in any state, district, province or territory, wherein such society has subordinate branches, and all Superintendent attorney for society on whom legal process shal: be served. Place of meetings. Non-individual liability. Laws binding on members and bene- ficiaries. Benefits not liable to proc- ess of law. Changes of constitution must be filed with superin- tendent. Verified state— ment of standing. Additional valuation. IIo business transacted at such meeting shall be as valid in all respects as if such meetings were held in this state; but its principal office shall be located in this state. Section 9480. § 19. Officers and members of the supreme, grand or other subordinate body of any such incor- porated society shall not be individually liable for the pay- ment of any disability or death benefit provided for in the laws and agreements of such society; but the same shall be payable only out of the funds of such society and in the manner provided by its laws. SECTION 9481. § 20. The constitution and laws of the society may provide that no subordinate body, nor any of its subordinate officers or members shall have the power or authority to waive any of the provisions of the laws and constitution of the society, and the same shall be bind- ing on the society and each and every member thereof and on all beneficiaries of members. SECTION 9482. § 21. No money or other benefit, charity or relief or aid to be paid, provided or rendered by any such society shall be liable to attachment, garnish- ment or other process, or be seized, taken, appropriated or applied by any legal or equitable process or operation of law to pay any debt or liability of a member or bene- ficiary, or any other person who may have a right there- under, either before or after payment. SECTION 9483. § 22. Every society transacting busi- ness under this act shall file with the superintendent of in- surance a duly certified copy of all amendments of or addi- tions to its constitution and laws within ninety days after the enactment of the same. Printed copies of the constitu- tion and laws as amended, changed or added to, certified by the secretary or corresponding officer of the society, shall he prima facie evidence of the legal adoption thereof. SECTION 9484. § 23. Every society transacting busi- ness in this state shall annually, on or before the first day of March, file with the superintendent of insurance, in such. form as he may require, a statement under oath of the presi- dent and secretary or corresponding officers, of its condi- tions and standing on the thirty-first day of December next preceding, and of its transactions for the year ending on that date and also shall furnish such other information as the superintendent may deem necessary to a proper exhibit of its business and plan of working. The superin- tendent may at other times require any: further statement he may deem necessary to be made relating to such society. In addition to the annual report herein required, each society shall annually report to the superintendent a valua- tion of its certificates in force on December 31, last pre- ceding; excluding those issued within the year for which the report is filed, in cases where the contributions for the first year, in whole or in part, are used for current mor- tality and expenses; provided the first report of valuation III shall be made as of December 31, 1912. Such report of valuation shall show, as contingent liabilities, the present mid-year value of the promised benefits provided in the constitution and laws of such society under certificates then. subject to valuation; and, as contingent assets, the present mid-year value of the future net contributions provided in the constitution and laws as the same are in practice actually collected. At the option of any society, in lieu of the above, the valuation may show the net value of the certifi- cates subject to valuation hereinbefore provided, and such net value, when computed in case of monthly contributions, may be the mean of the terminal values for the end of the preceding and of the current insurance years. Such valuation shall be certified by a competent ac- countant or actuary, or, at the request and expense of the society, verified by the actuary of the department of in- surance of the home state of the society, and shall be filed with the superintendent within ninety days after the submis- sion of the last preceding annual report. The legal minimum standard of valuation for all certificates, except for dis- ability benefits, shall be the National Fraternal Congress Table of Mortality as adopted by the National Fraternal Congress April 23, 1899, or, at the option of the society, any higher table; or, at its option, it may use a table based upon the society’s own experience of at least twenty years and covering not less than one hundred thousand lives with interest assuming not more than 4 per centum per arinum. Each such valuation report shall set forth clearly and fully the mortality and interest basis and the method of valuation. Any society providing for disability benefits shall keep the net contributions for such benefits in a fund separate and apart from all other benefit and expense funds and the valuation of all other business of the society ; provided, that where a combined contribution table is used by a society for both death and permanent total disability benefits, the valuation shall be according to tables of reliable experience and in such case a separation of funds shall not be re- quired. The valuation herein provided for shall not be con- sidered or regarded as a test of the financial solvency of the society, but each society shall be held to be legally solvent so long as the funds in its possession are equal to or in excess of its matured liabilities. Beginning with the year 1914, a report of such valua- tion and an explanation of the facts concerning the condi- -. tion of the society thereby disclosed shall be printed and mailed to each beneficiary member of the society not later than June 1 of each year; or in lieu thereof, such report of valuation and showing of the society’s condition as thereby disclosed, may be published in the society’s official paper and the issue containing the same mailed to each beneficiary member of the society. The laws of such society shall provide that if the stated periodical contributions of the members are insufficient to pay all matured death and Verified valuation. Separate funds, Printed report to each bene- ficiary. II2 disability claims in full, and to provide for the creation and maintenance of the funds required by its laws, additional, increased or extra rates of contribution shall be collected from the members to meet such deficiency; and such laws may provide that, upon the written application or consent of the member, his certificate may be charged with its pro- portion of any deficiency disclosed by valuation, with in- terest not exceeding five per centum per annum. Reduction of SECTION 9485. § 23a. If the valuation of the certifi- when, cates, as hereinbefore provided, on December 31, 1917, shall show that the present value of future net contributions, together with the admitted assets, is less than ninety per centum of the present value of the promised benefits and accrued liabilities, such society shall be required thereafter to reduce such deficiency not less than five per centum of the total deficiency on such December 31, 1917, at each succeeding triennial valuation. If at any succeeding trien- nial valuation such society does not show such percentage of improvement, the superintendent shall direct that it thereafter comply with the requirements herein specified. If the next succeeding triennial valuation after the receipt of such notice shall show that the society has not made the percentage of improvement required herein, the superin- tendent may, in the absence of good cause shown for such failure, institute proceedings for the dissolution of such society, in accordance with the provision of section 24 of this act, or, in the case of a foreign society, he may cancel its license to transact business in this state. Cancellation Any such society, shown by any triennial valuation, pe subsequent to December 31, 1917, not to have made the improvement herein required shall, within one year there- after, complete such deficient improvement, or thereafter, as to all new members admitted, be subject, so far as stated rates of contribution are concerned, to the provisions of section 12 of this act, applicable in the organization of new societies ; provided, that the contributions and funds of such new members shall be kept separate and apart from the other funds of the society until the required improvement shall be shown by valuation. If such required improvement is not shown by the succeeding triennial valuation, then such new members may be placed in a separate class and their certificates valued as an independent society in respect of contributions and funds. SEcTION 9486. § 24. The superintendent of insurance, or any person he may appoint, shall have the power of visitation and examination into the affairs of any domestic society. He may employ assistants for the purpose of such examination, and he, or any person he may appoint, shall have free access to all the books, papers and documents that relate to the business of the society and may summon and qualify as witness under oath and examine its officers, agents and employes, or other persons in relation to the affairs, transactions and conditions of the society. 113 The expense of such examination shall be paid by the state upon statement furnished by the superintendent of insurance, and the examination shall be made at least once in three years. Whenever after examination the superintendent of in- surance is satisfied that any domestic society has failed to comply with any provisions of this act, or is exceeding its powers, or is not carrying out its contracts in good faith, or is transacting business fraudulently; or whenever any do- mestic society, after the existence of one year or more, shall have a membership of less than 400 (or shall determine to discontinue business), the superintendent of insurance may present the facts relating thereto to the attorney general, who shall, if he deem the circumstances warrant, commence an action in quo warranto in a court of competent jurisdic- tion, and such court shall thereupon notify the officers of such society of a hearing, and if it shall then appear that such society should be closed, such society shall be enjoined from carrying on any further business and some person shall be appointed receiver of such society, and shall proceed at once to take possession of the books, papers, moneys and other assets of the society and shall forthwith, under the di- rection of the court, proceed to close the affairs of the so- ciety and to distribute its funds to those entitled thereto. No such proceedings shall be commenced by the attor- ney general against any such society until after notice has been duly served on the chief executive officers of the society and a reasonable opportunity given to it, on a date to be named in such notice, to show cause why such proceedings should not be commenced. SECTION 9487. § 25. No application for injunction against or proceedings for the dissolution of or the appoint- ment of a receiver for any such domestic society or branch thereof shall be entertained by any court in this state unless the same is made by the attorney general. SEcTION 9488. § 26. The superintendent of insur- ance, or any person whom he may appoint, may examine any foreign society transacting or applying for admission to transact business in this state. Such superintendent may employ assistants, and he, or any other person he may ap- point, shall have free access to all the books, papers and documents that relate to the business of the society, and may summon and qualify as witness under oath and ex- amine its officers, agents and employes and other persons in relation to the affairs, transactions and conditions of the society. He may, in his discretion, accept in lieu of such examination the examination of the insurance de- partment of the state, territory, district, province or coun- try where such society is organized. The actual expenses of examiners making any such examination shall be paid by the society upon statement furnished by the superin- tendent of insurance. 8:1. p, Applications for a re- ceiver, etc. Examination of foreign societies. Effect of refusal. No publicity pending in- vestigation. Causes for revocation. Lodges and societies ex- cepted from this act. 114 If any such society or its officers refuse to submit to such examination, or to comply with the provisions of the section relative thereto, the authority of such society to write new business in this state shall be suspended or license refused until satisfactory evidence is furnished the superintendent relating to the condition and affairs of the society, and during such suspension the society shall not write new business in this state. SECTION 9489. § 27. Pending, during or after an examination or investigation of any such society, either domestic or foreign, the superintendent of insurance shall make public no financial statement, report or finding, nor shall he permit to become public any financial statement, report or finding affecting the status, standing or rights of any society, until a copy thereof shall have been served upon such society, at its home office, nor until such society shall have been afforded a reasonable opportunity to answer any such financial statement, report or finding, and to make such showing in connection therewith as it may desire. SECTION 9490. § 28. When the superintendent of in- surance on investigation is satisfied that any foreign so- ciety transacting business under this act has exceeded its powers, or has failed to comply with any provisions of this act, or is conducting business fraudulently, or is not carrying out its contracts in good faith, he shall notify the society of his findings, and state in writing the grounds of his dissatisfaction, and after reasonable notice require such society, on a date named, to show cause why its license should not be revoked. If on the date named in such notice such objections have not been removed to the satisfaction of such superintendent, or the society does not present good and sufficient reasons why its authority to transact business in this state should not at that time be revoked, he may revoke the authority of the society to continue business in this state. All decisions and findings of the superintendent made under the provisions of this section may be reviewed by proper proceedings in any court of competent jurisdiction, as provided in section 16 of this act. SECTION 9491. § 29. Nothing contained in this act shall be construed to affect or apply to grand or subor- dinate lodges of Masons, Odd Fellows or Knights of Pythias (exclusive of the insurance department of the Su- preme Lodge Knights of Pythias), and the Junior Order of United American Mechanics (exclusive of the beneficiary degree or insurance branch of the National Council Junior Order United American Mechanics), or the National Coun- cil Daughters of America Benefit Department, or societies which limit their membership to any one hazardous occupa- tion, nor to similar societies which do not issue insurance certificates, nor to an association of local lodges of a society now doing business in this state which provides death bene- Ys fits not exceeding three hundred dollars to any one person, or disability benefits not exceeding three hundred dollars in any one year — to any one person, or both, nor to any con- tracts of reinsurance business on such plan in this state, nor to domestic societies which limit their membership to the employes of a particular city or town, designated firm, busi- ness house or corporation, nor to domestic lodges, orders or associations of a purely religious, charitable and benev- olent description, which do not provide for a death benefit of more than one hundred dollars, or for disability benefits of more than ont hundred and fifty dollars to any one person in any one year; provided, always, that any such domestic order or society which has more than five hun- dred members, and provides for death or disability benefits, and any such domestic lodge, order or society which issues to any person a certificate providing for the payment of benefits, shall not be exempt by the provisions of this sec- tion, but shall comply with all the requirements of this act, and provided, further, that nothing in sub-section 2, of sec- tion 5, and paragraph 3rd, of section 12, and section 23 and section 23a of this chapter, shall affect or apply to any corporation, society, order or voluntary association, which was prior to.the first day of January, 1911, organized and doing business in this state on the lodge system, as provided in section 2 of this chapter, which issues death certificates in a sum not exceeding $500.00 to any one member, and whose membership is confined and limited exclusively to persons of one particular religious faith. The superintendent of insurance may require from any society such information as will enable him to deter- mine whether such society is exempt from the provisions of this act. No society, which is exempt by the provisions of this section from the requirement of this act, shall give or allow, or promise to give or allow, to any person any com- pensation for procuring new members. Any fraternal benefit society, heretofore organized and incorporated and operating within the definition set forth in sections 1, 2 and 3 of this act, providing for benefits in case of death or disability resulting solely from acci- dents, but which does not obligate itself to pay death or sick benefits, may be licensed under the provisions of this act, and shall have all the privileges and shall be subject to all provisions and regulations of this act, except that the provisions of this act requiring medical examinations, valuations of benefit certificates, and that the certificate shall specify the amount of benefits, shall not apply to such society. SECTION 9491. When legal process against any such association is served upon the superintendent of insurance, forthwith he shall forward by registered mail one of the duplicate copies, prepaid and directed to its secretary or corresponding officer. The plaintiff in process so served Duty of super- intendent when service made on him. Place of meet- ing; office. No_ personal liability. Waiver of the provisions of the laws. Separate jurisdiction provisions. Constitution and laws; amendments, Annual reports. 116 must pay to the superintendent of insurance for the use of the state at the time of service a fee of two dollars, which shall be recovered by him as part of the taxable costs, if he prevails in the suit. (97 v. 428 § 18.) SECTION 9492. Any domestic association may provide for holding the meetings of its legislative or governing body in any state, district, province or territory wherein such association has subordinate branches. All business transacted at such meetings shall be as valid in all respects as if they were held in this state. But its principal office must be located in this state. (97 v. 428 § 19.) SECTION 9493. Officers and members of the supreme, grand or any subordinate body of any such incorporated association shall not be individually liable for the payment of any disability or death benefit, provided for in the laws and contracts of the association. _They shall be payable only out of the funds of the association and in the manner provided by its laws. (97 v. 428 § 20.) SECTION 9494. The constitution and laws of the asso- ciation may provide that no subordinate body, nor any of its officers or members shall have the power or authority to waive any of the provisions of its laws and constitution, and this shall be binding on the association and every member thereof. (97 V..420°%$" 25.) SECTION 9495. All grand lodges by whatever name known, whether incorporated or not, holding charters from the supreme governing body, which are conducting business in this state as fraternal beneficiary associations upon what is known as the separate jurisdiction plan, shall be treated as a federation of grand lodges and not as single state or- ganizations; and all reports required by the provisions of this chapter shall be made and furnished by the officers of such supreme governing bodies and must contain the trans- actions, liabilities and assets of the entire order. (97 v. 429 S225) SECTION 9496. Every association transacting business under this chapter, must file with the superintendent of insurance a duly certified copy of all amendments of, or additions to, its constitution and laws within ninety days after their enactment. Printed copies of the constitution and laws and of additions or amendments thereto, certified by the secretary or corresponding officer of the association shall be prima facie evidence of the legal adoption thereof. (97 v. 429 § 23.) SECTION 9497. Every association transacting business in this state, annually on or before the first day of March, must file with the superintendent of insurance in such form as he requires, a statement under oath of its president and secretary, or corresponding officers, of its condition and standing on the thirty-first day of December next preceding and of its transactions for the year ending on that date, and also, furnish such other information as the superintendent 117 deems necessary to a proper exhibit of its business and plan of working. The superintendent at other times may require any further statement he deems necessary to be made relat- ing to such associations. (97 v. 429 § 24.) Section 9498. The superintendent of insurance, or any person he appoints, shall have the power of visitation and examination into the affairs of any domestic associa- tion. He may employ assistants for the purposes of such examination and he, or any person he appoints shall have free access to all books, papers and documents relating to the business of the association, and may summon and qual- ify as witnesses under oath and examine its officers, agents, employes and other persons in relation to its affairs, trans- actions and condition. The expenses of such examination shall be paid by the state treasurer on the warrant of the state auditor on the certificate of the superintendent of insurance from the proper appropriations. (97 v. 429 § 25.) SECTION 9499. When after such examination, the superintendent is satisfied that a domestic association has failed to comply with any provision of this chapter, or is exceeding its powers, or is not carrying out its contracts in good faith; or is transacting business fraudulently ; or when such an association, after the existence of one year or more has a membership of less than three hundred, or votes to discontinue business, he may present the facts relating thereto to the attorney general, who, if he thinks the cir- cumstances warrant it shall commence an action in quo watranto in a court of competent jurisdiction, and the court thereupon shall notify the officers of such association of a hearing. Unless it then appears that some special and good reason exists why the association should not be closed, it shall be enjoined from doing any further business, and some person be appointed a receiver thereof, who shall at once take possession of the books, papers, moneys, and other assets of the association and under the direction of the court forthwith proceed to close up its affairs, and to distribute its funds to those entitled thereto. (97 v. 429 § 25.) SecTIon 9500. No such proceeding shall be com- menced by the attorney general against such an association until after notice has been duly served on its chief executive officers, and a reasonable opportunity given to it on a date to be named in the notice to show cause why such proceed- ings should not be commenced. (97 v. 429 § 25.) SECTION 9501. No application for injunction or other proceedings for the dissolution of, or the appointment of a receiver for, such a domestic association or branch thereof shall be entertained by any court in this state unless it is made by the attorney general. (97 v. 430 § 26.) SECTION 9502. The superintendent of insurance, or any person whom he appoints, may examine any foreign association transacting or applying for admission to trans- Examination of domestic associations. Quo warranto, Hearing must be had before instituting suit. Attorney-gen- eral to insti- tute suit. Examination of foreign associations, 118 act business in this state. He may employ assistants for the purpose of such examination and he, or any person ap- pointed by him, shall have free access to all the books, papers and documents that relate to the business of the association and may summon and qualify as witnesses under oath and examine its officers, agents, employes and other persons in relation to its affairs and condition. In his discretion, in lieu of such examination, he may accept the examination of the insurance department of the state, terri- tory, district, province or country where the association is organized. Examinations under the provisions of this section shall be made without expense to the association examined. (97 v. 430 § 27.) When ex- SECTION 9503. If such an association or its officers amination a7 : : phased: refuse to submit to such examination or to comply with the provisions of the preceding section relating thereto, its authority to transact business in this state shall be revoked until satisfactory evidence is furnished such superintendent relating to the condition and affairs of the association. During such revocation it shall not transact any business in this state. (97 v. 430 §.27.) EA data SECTION 9504. When the superintendent on investiga- ou tion is satisfied that a foreign association transacting busi- ness under this chapter has exceeded its powers, or failed to comply with any provision thereof, or is conducting busi- ness fraudulently, or not carrying out its contract in good faith, he shall notify the president and secretary, or other officers corresponding thereto, of his findings, state in writ- ing the grounds of his dissatisfaction, and after reasonable notice require the association on a date named therein, to show cause why its license should not be revoked. If on that date such objections have not been removed to the satisfaction of the superintendent, or the association fails to present good and sufficient reasons why its authority to transact business in this state should not then be revoked, he may revoke its authority to continue business in this states (O7 W438 28.) Decisions. oF SEcTION 9505. All decisions and findings of the su- ale ae a: perintendent made under the provisions of the preceding viewed. section may be reviewed by proper proceedings in any court of competent jurisdiction as hereinbefore provided in this chapter, in similar cases. (97 v. 431 § 28.) Exemption Section 9506. Nothing contained in this chapter shall of certain affect or apply to grand or subordinate lodges of Masons, Odd Fellows or Knights of Pythias (exclusive of the in- surance branch of the supreme lodge Knights of Pythias), or to similar orders which do not issue insurance certifi- cates, nor to local lodges of an association doing business in this state, that provide death benefits not exceeding three hundred dollars to any one person, or disability benefits not exceeding three hundred dollars in any one year to any one person, or both; nor to any contracts of 119 reinsurance of or between such local lodges of such as- sociation doing business on such plan in this state, nor to domestic associations which limit their membership to the employes of a particular city or town, designated firm, business house or corporation; nor to domestic lodges, orders, or associations of a purely religious, charitable and benevolent description, which do not operate with a view to profit and which do not provide for a death benefit of more than one hundred dollars, or for disability benefits of more than one hundred and fifty dollars to any one person in any one year. But any such domestic order or association, which has more than five hundred members, and provides for death or disability benefits and any such domestic lodge, order or association’ which issues to any person a certificate providing for the payment of benefits, shall not be exempt by the provisions of this section, and must comply with all the requirements of this chapter. (97 v. 431 § 29.) Section 9507. The superintendent of insurance may require from any association such information as will en- able him to determine whether or not it is exempt from the provisions of this chapter. No association which is so exempt shall give or allow or promise to give or allow to any person any compensation for procuring new members. (97 v. 431 § 29.) SECTION 9508. The word “association” as used in this chapter shall be taken as meaning a fraternal bene- ficiary corporation, society, order or voluntary association as defined in the first sections of this chapter. The words “domestic association” shall be taken as meaning an asso- ciation organized or incorporated under the laws of this state. The words “foreign associations,” shall be taken as meaning an association organized or incorporated under the laws of another territory, district, state, province or country. All provisions of each section of this chapter, except as otherwise provided shall be taken as applying to both domestic and foreign associations. (97 v. 432 § 31.) SECTION 9509. In event of a vacancy in the office of the superintendent of insurance or in the absence or dis- ability of that officer the deputy superintendent shall per- form all the duties required of the superintendent by this chapter. (97 v. 432 § 31.) Superintendent may require certain infor- mation, Construction, Vacancy in office of superin- tendent. Suppivision II. INSuRANCE Upon PROPERTY AND AGAINST CERTAIN CONTINGENCIES. SECTIONS. CHAPTER 1. -General:!Provisions “. ..). j.aces Haste Pn Ones CHaprer 2. _Mutual Protective i. “2 i. i cise o> eRe ae CHAPTER 3. Live’ St0ek 05.3005 aisle dy cage loki as see CHAPTER 4. Credit ;Guaratity’ .3 1 fi.stcabeee: hack ee ee emia CHAPTER 5, Burglary< ‘ofc Gic Pais. scare oreo tors ates eee eee eee SECTION 9510. 9510-1. 9510-2. 9511. 9512. 9513. 9514. 9515, 9516. 9517. 9518. 9518-1-2. 9519. 9520. CHAP TERE GENERAL PROVISIONS. INSURANCE AUTHORIZED. Powers of companies. (Employee subrogated to rights of employer, when.) (Rights and remedies pass to per- sonal representatives in case of death of employer.) Limitation, DOMESTIC. Articles to be approved by attorney- general, Articles to be recorded by secretary of state. Subscription to stock, Election of directors. Directors to elect officers. By-laws and regulations. How company shall invest capital. Farm loan bonds a lawful investment deposit in addition to other se- curities. How invest accumulations. Limitation on investments. Liability of directors. Examination. Renewal of license. Capital of joint stock companies, Annual cash premium collectible in advance. Mutual associations excepted. Transfers of stock. How stock increased. Dividends payable from surplus prof- its only. Dividends contrary to law. Script dividends; interpretation of words, Accumulations of permanent fund. What real estate company may hold. Disposal of real estate. For what purposes debt may be cre- ated. Enforcement of assessments. How assessments and notice Accident companies authorize Deposit of accident companies. Consolidation. Rights and duties of consolidated companies. Disposition of stock of consolidated company. Election of directors. Capital stock limited. Filing of certificate of consolidation, if may be approved by probate udge. ay reinsure risks, roy ct. I20 SECTION 9556. 9556-1-13. Insurance against lightning, explo- sions and tornadoes. Reciprocal or inter-insurance con- tracts authorized. FOREIGN. Foreign companies must obtain li- cense, s Capital necessary of foreign com- pany. Companies shall file waiver. Statement required of foreign com— pany. Revocation of company. Foreign companies may have com- mon agent. What companies shall make deposit. What deemed capital of foreign com- license of foreign pany. Annual statements. DOMESTIC AND FOREIGN. Deposit required of guaranty com- pany. Foreign guaranty company. Estoppel of company executing bond. Sufficiency of bonds executed by guaranty company. Allowance of premium. Bonds of public officers, Lien of mutual companies for pre- mium notes. Duty of recorder. Concellation of policies. Rates of cancellation for cash poli- cies, Rates of concellation of mutual com- panies. Rates when premiums paid in install- ments, Premium notes not negotiable. Superintendent to enforce pro- visions. Extent of liability under policy. When two or more policies on the Same property. Cellar and foundation not to be con- sidered, Solicitor agent of company, How contracts evidenced. Restrictions in advertisements. Forfeiture. Rebates and special advantages policies, etc., prohibited. Testimony; incrimination, in I2I SECTION | SECTION 9589-3. . Penalty. 9591-3. Indebtedness for outstanding losses 9589-4. Revocation of license. charged and how same to be de- 9590. Annual report. termined. t 9591. Special reports required. 9591-4, What corporations included. ‘ 9591-1. Annual statement must contain a 9592. Attorney-general to institute suits. schedule of its experience as to 9592-1-18. Every fire insurance company re- liabilities; how determined. quired to be a member of a rating 9591-2. Distribution of unallocated payments. bureau. INSURANCE AUTHORIZED. Powers of companies. SECTION 9510. A company may be organized or ad- mitted under this chapter to — 1. Insure houses, buildings and all other kinds of property in and out of the state against loss or damage by fire, lightning and tornadoes, and make all kinds of insur- ance on goods, merchandise and other property in the course of transportation, on land, water, or on a vessel, boat or wherever it may be. 2. Make insurance on the health of individuals and against personal injury, disablement or death, resulting from traveling or general accidents by land and water ; make insurance against loss or damage resulting from accident to property, from cause other than fire or lightning; guarantee the fidelity of persons holding places of public or private trust, who are required to, or, in their trust capacity do receive, hold, control, disburse public or private moneys or property; guarantee the performance of contracts other than insurance policies, and execute and guarantee bonds and undertakings required or permitted in all actions or proceedings, or by law allowed; make insurance to indem- nify employers against loss or damage for personal injury ‘or death resulting from accidents to employes or persons other than employes and to indemnify persons and corpo- rations other than employers against loss or damage for personal injury or death resulting from accidents to other persons or corporations. But a company of another state, territory, district or country admitted to transact the busi- ness of indemnifying employers and others, in addition to any other deposit required by other laws of this state, shall deposit with the superintendent of insurance for the bene- fit and security of all its policy holders, fifty thousand dol- lars in bonds of the United States or of the state of Ohio, or of a county, township, city or other municipality in this state, which shall not be received by the superintendent at a rate above their par value. The securities so deposited may be exchanged from time to time for other securities. So long as such company continues solvent and complies with the laws of this state it shall be permitted by the su- perintendent to collect the interest on such deposits. 3. Make insurance on the lives of horses, cattle or other live stock against loss by death caused by accident, disease, fire or lightning, and against loss by theft and damage by accident. But such companies shall have a capital of one hundred thousand dollars, with at least twenty-five per cent of the capital stock paid up. Limitation, A:ticles to be :pproved by iuttorney— gvneral. I22 4. Receive on deposit and insure the safekeeping of books, papers, moneys, stocks, bonds and all kinds of per- sonal property; lend money on bottomry or respondentia, and cause itself to be insured against-any loss or risk it has incurred in the course of its business, and upon the interest which it has in any property by means of any loan which it has made on mortgage, bottomry, or respondentia, and generally to do all other things proper to promote these objects. (R. S. Sec. 3641.) SECTION 9510-1. An employee, who has heretofore recovered or shall hereafter recover against his employer for injuries sustained while in the employ of his employer, and because of negligence of the employer, or negligence for which he or it is liable, shall be subrogated to all the rights of the employer under any contract or policy of in- surance against loss or damage resulting to said employer from injury or death of an employee while in the service of such employer whether said person, co-partnership or corporation contracting or issuing such policy of insurance has been made a party to the action for damages sustained or not. SEcTION 9510-2. In case of the death of any em- ployee by reason of the wrongful or negligent acts of his employer, or negligence or wrongful acts for which he is liable, then the personal representative or represen- tatives of the deceased employee shall have all the rights and remedies that the employee would have had hereunder had death not resulted. SECTION 9511. No company shall be organized to is- sue policies of insurance for more than one of the above four mentioned purposes, and no company organized for either one of such purposes shall issue policies of insurance of any other. But companies organized under subdivision two of the preceding section, which do the business of guar- anteeing the fidelity of persons, holding places of public or private trust, who are required to or in their trust capacity do receive, hold, control, disburse public or private property, and guaranteeing the performance of contracts other than insuring policies, and executing and guaranteeing bonds and undertakings required or permitted in actions, proceed- ings or by law allowed, may indemnify bank depositors against loss by reason of bank suspension and failure. (R. 5. Sec. 3641.) DOMESTIC. SECTION 9512. The articles of incorporation of a company formed for the purpose of insurance, other than life insurance, must be forwarded to the secretary of state, who shall submit them to the attorney-general for examina- tion. If found by him to be in accordance with the pro- visions of this chapter, and not inconsistent with the con- stitution and laws of the state, and of the United States, he shall certify and deliver them back to the secretary. He ee 123 may reject any name or title of a company applied for when he deems it similar to one already appropriated, or likely to mislead the public. (R. S. Sec. 3632.) SECTION 9513. Upon the approval of the articles by the attorney-general and secretary of state, the latter shall cause them to be recorded, and copied in the manner pro- vided for life insurance companies, and a copy thereof to be deposited with the superintendent of insurance. He shall withhold from the company the certificate of au- thority if its name is so similar to that of any other com- pany as to mislead the public. (R. S. Sec. 3633.) SECTION 9514. The persons named in the articles of incorporation, or a majority of them, shall be commission- ers to open books for the subscription of stock in the com- pany, at such times and places as they deem proper, and shall keep them open until the full amount specified in the articles is subscribed. (R. S. Sec. 3635.) SECTION 9515. Within one month after the subscrip- tion books are filled, and the articles of incorporation filed with the secretary of state, a majority of subscribers to the stock shall hold a meeting for the election of not less than five nor more than twenty-one directors, who must be stockholders or members. At any time thereafter the num- ber may be increased or diminished between the same limits, at the will of stockholders representing a majority of the stock or a majority of the members. Each member of a mutual company shall be entitled to one vote, and -each stockholder in other companies, to one vote for each share of stock he holds. If they so provide in their by- laws, mutual companies may elect directors for the term of three years, the term of office of one-third of the number elected to expire each year, and those who receive the high- est number of votes at the first election to serve for the longest term. (R. S. Sec. 3636.) SECTION 9516. From their own number the directors shall choose by ballot, a president, and also fill vacancies that arise in the board, or in the presidency thereof. (R. S. Sec. 3642. ) SECTION 9517. When convened at the office of the company the board of directors, or a majority of them, may appoint a secretary and other officers or agents neces- sary for transacting its business, and pay such salaries and take such securities as they judge reasonable. They may ordain and establish by-laws and regulations, not inconsist- ent with the constitution and laws of this state and of the United States, as to them appear necessary for regulating and conducting the business of the company. MNew by- laws or regulations shall not take effect until approved by the superintendent of insurance and a copy is filed in his office. The directors shall keep full and correct records of their transactions, which, at all times, shall be open to the inspection of the members or stockholders. (R. S. Sec. 3642.) . Articles to ve recorded by secretary of state. Subscription to stock. Election of directors. Directors to elect officers. By-laws and regulations. How company shall invest capital. Farm loan bonds legal investment. 124 SECTION 9518. No company organized under this chapter or incorporated under any law of this state, for the purpose provided in section ninety-five hundred and twelve, shall invest its capital or any part thereof, other- wise than in: 1. United States Bonds; 2. Bonds of the State of Ohio or of any other state in the United States; 3. Bonds of a county, township, municipal corpora- tion, school district or other political subdivision in this or any other state in the United States, issued in conformity with law and upon which default in the payment of inter- est has not been made; 4. Bonds and mortgages on unincumbered real es- tate within this or any other state of the United States, worth double the amount loaned thereon. If the amount loaned exceeds one-half the value of the land mortgaged, exclusive of structures thereon, such structures must be insured in an authorized fire insurance company other than the company making the loan, in an amount not less than the difference between half the value of such land ex- clusive of structures, and the amount loaned, and the policy assigned to the mortgagee; 5. The stock of a national bank located in this state, organized under the provisions of an act of congress en- titled “an act to provide a national currency, secured by the pledge of United States stocks, and to provide for the circulation and redemption thereof,’ approved February 25, 1863, and acts amendatory thereof and supplementary thereto; d 6. First mortgage bonds of railroads within this state, upon which default in the payment of the interest coupons has not been made within three years prior to the pur- chase thereof. SECTION 9518-1. That in addition to the investments now provided by law, farm loan bonds issued under the provisions of the act of the congress of the United States, entitled “The Federal Farm Loan Act” approved July 17th, 1916, shall be a lawful investment for the capital and ac- cumulations of insurance companies, organized under the laws of this state, both life and other than life, subject to the same regulations as are now provided for other invest- ments by such companies. SECTION 9518-2. Whenever a deposit of securities is required by law from a domestic insurance company, either life or other than life, or from a foreign insurance com- pany, either life or other than life, as a condition upon which such company may be authorized to transact busi- ness in this state, farm loan bonds issued under the pro- visions of the act of the congress of the United States, en- titled “The Federal Farm Loan Act”, approved July 17, 1916, may be deposited for that purpose, in addition to other securities now specified by law. 3 125 Secrion 9519. Funds accumulated in the course of business, or surplus money over and above the capital stock of a company, may be loaned on or invested in the above named securities, or: 1. Bonds and mortgages on unincumbered real estate within this or any other state of the United States worth fifty per cent. more than the sum loaned thereon, exclusive of buildings, unless such buildings are insured in some company authorized to do business in this state, and the policy is transferred to a company making the investment ; 2. Bonds of any state, county, township, municipal corporation, school district or other political subdivision in the United States, issued in conformity with law and upon which default in the payment of interest has not been made ; 3. Stocks, bonds, or other evidences of indebtedness of any solvent, dividend-paying institution incorporated under the laws of this or any other state, or of the United States, except its own stock ; 4. Negotiable promissory notes maturing in not more than six months from the date thereof, secured by collateral security through the transfer of any of the classes of securi- ties described in this or the preceding section, with ab- solute power of sale within twenty days after default in payment at maturity. SECTION 9520. No company shall own more than one- fourth of the capital stock of a national bank, nor invest in or loan on the stocks and bonds, both included, of any railroad company, to an extent exceeding one-fifth of its own capital, nor in the aggregate shall the investment in and loan on all railroad property exceed one-fourth of its capital and surplus. Not more than one-half of its capital shall be loaned’ on mortgages of real estate, as above pro- vided for the investment thereof, and not more than one- tenth of the capital actually existing of a company shall be invested in a single mortgage. The current market value of stocks, bonds, or other evidences of indebtedness above mentioned, in which the accumulations or surplus money over and above the capital stock of an insurance company may be loaned or invested, must be at all times during the continuance of the loans at least twenty per cent more than the sum loaned thereon. SECTION 9521. If an investment or loan be made ina manner not authorized by this chapter, the directors who make or authorize it shall be personally liable to the stock- holders for loss occasioned thereby. (R. S. Sec. 3639.) SECTION 9522. When a company notifies the superin- tendent of insurance that the proceedings required by sec- tion ninety-five hundred and twenty have been had, he shall make an examination of its condition, and if he finds that the capital required of the company has been paid in and is possessed by it in money, or in stocks, bonds, and mortgages as required by this chapter, he shall so certify. Or he may How invest accumulations. Limitations on certain in- vestments. Liability of directors. Examinatior. Renewal of license. Capital of joint stock companies. Annual cash premiums col- lectable in ad- vance. Mutual asso- ciations ex- ceptea, Transfers of stock. How stock increased, 126 cause such examination to be made by a disinterested per- son specially appointed by him for the purpose, who shall certify his finding to the superintendent under oath. The signers of the articles of incorporation, or the officers of the company, shall also certify, under oath, that the capital exhibited is bona fide, its property. Such certificates shall be filed in the office of the superintendent. Thereupon the company shall file with the superintendent a certified copy of its articles of incorporation and approval of the attorney general, and a copy of its by-laws and constitution. If the superintendent finds that the company is duly organized and has complied with the law entitling it to transact busi- ness and issue policies, unless he also finds the name as- sumed by it so nearly similar to that of another company doing business in this state as to lead to confusion or uncer- tainty on the part of the public, he shall furnish the com- pany with his license reciting that it has complied with the law and is entitled to transact the business authorized, describing it, which license shall be the authority to com- mence business and issue policies. (R. S. Sec. 3640.) SECTION 9523. So long as such company complies with the law, the superintendent, annually upon its application, shall renew such license. Certified copies of which may be used in evidence for or against the company in all actions. (R...S:; See. 3640.) SECTION 9524. Except as hereinafter provided, no joint stock insurance company shall be organized under this chapter, or permitted to do business in this state with a less capital than one hundred thousand dollars, which must be paid up before the company can transact business. But on the payment of twenty-five per cent of its capital stock, a live stock company may do business. (R. S. Sec. 3634.) SECTION 9527. Mutual fire insurance companies or- ganized under this chapter may thereafter charge and col- lect in advance upon their policies a full annual premium in cash, but such policies shall not compel subscribers, insured or assured, to renew a poicy nor pay a second or further annual or term premium. (R. S. Sec. 3634.) SECTION 9529. Nothing in sections ninety-five hun- dred and twenty-four, ninety-five hundred and twenty-five, ninety-five hundred and twenty-six, ninety-five hundred and twenty-seven and ninety-five hundred and twenty-eight shall apply to associations for the mutual protection of their members, against loss by fire, organized as provided by law. (KR. S. Sec. 3634.) SECTION 9530. Transfers of stock may be made on the books of the company by any shareholder, or his legal rep-. resentative, subject to such reasonable restrictions as the directors make in the by-laws, and also, to any provisions of the laws of this state relating thereto. (R.S. Sec. 3646.) SECTION 9531. When in the opinion of its directors, a company organized under this chapter requires an increased os 127 amount of capital, if authorized by the holders of two-thirds of the stock, they shall file with the secretary of state a certificate setting forth the amount of desired increase. Thereafter, the company shall be entitled to have the in- creased amount of capital fixed by such certificate. The examination of securities composing the capital stock thus increased shall be made as provided by law for capital stock originally paid in. (R. S. Sec. 3647.) SECTION 9532. No fire insurance company organized under a law of this state shall make a dividend except from the surplus profits arising from its. business, and in esti- mating such profits there shall be reserved therefrom: First. An unearned premium fund computed in ac- cordance with the reguirements of section ninety-five hun- dred and ninety. | Second. All sums due the company on bonds and mortgages, bonds, stocks, and book accounts, of which no part of the principal nor the interest thereon has been paid during the preceding year, and on which an action has not been commenced, or which, after judgment obtained thereon, has remained more than two years unsatisfied, and on which interest has not been paid. Third. All interest due or accrued, and remaining un- paid, for which the company does not hold securities as hereinbefore provided. (R.S. Sec. 3648.) SECTION 9533. A dividend made contrary to the pro- visions of the preceding section shall subject the company which makes it to a forfeiture of its charter, and each stock- holder who receives it to a liability to the creditors of the company to the extent of the dividend received, besides the other penalties and punishments prescribed by law. (R. S. Sec. 3648.) SECTION 9534. The two preceding sections shall not prevent the declaration of scrip dividends by participating or mutual companies, yet no such dividend shall be declared to an amount in excess of, or be paid except from profits, after reserving all sums above provided, including the whole amount of premiums on unexpired risks. The word “year,” wherever used in this and the two preceding sections shall mean the calendar year, and the “profits” of a mutual insur- ance company are that portion of its cash funds not re- quired for payment of losses and expenses nor set apart for any purpose required by law. (R. S. Sec. 3648.) SECTION 9535. In its by-laws any such company may provide for the accumulation of a permanent fund, by re- serving a portion of the net profits, to be invested and be a reserve for the security of the insured. Such permanent fund in such sum as may be determined by the board of directors shall be separate and apart from such surplus as may be accumulated in the discretion of the company or its board of directors. The permanent fund so accumulated shall be used for the payment of losses and expenses, when- Dividends payable from surplus profits only. Dividends contrary to law. Scrip divi- dends; inter- pretation of words. Accumulation of permanent fund. What real es- tate company may hold. Disposal of real estate. For what pur- pose debt may be created. Enforcement of assess- ments. How assess— ments and | notice proved. 128 ever the cash funds of the company in excess of an amount equal to its liabilities are exhausted. SECTION 9536. No company organized under this chapter shall purchase, hold, or convey real estate, except for the purposes and in the manner herein set forth: I. Such as is requisite for its convenient accommoda- tion in the transaction of its business. 2. Such as is mortgaged to it in good faith, by way of security for loans previously contracted, or for money due. 3. Such as is conveyed to it in satisfaction of debts previously contracted in its legitimate business, or for money due. 4. Such as is purchased at sales upon judgment, decree, or mortgages obtained or made for such debts. (R. S. Sec. 3649.) SECTION 9537. Real estate so acqu’red, but which is not necessary for the accommodation of the company in the transaction of its business, shall be disposed of within two years after title thereto is acquired, unless the company procures a certificate from the superintendent of insurance that its interests will suffer materially by a forced sale thereof. The sale then may be postponed for such period as the superintendent directs in such certificate. (R. S. Sec. 3640. ) SECTION 9539. No such company shall borrow money or create a debt unless for the purpose of necessary office buildings, to continue beyond the period when such an as- sessment may be collected and applied to the payment thereof, and no member shall be assessed for liabilities incurred prior to his membership. (R. S. Sec. 3650.) SECTION 9540. If a member neglects for thirty days after the publication of such notice, and after demand for payment, to pay the sum assessed upon him as his propor- tion of such loss, the directors may sue for and recover the whole amount of contingent liability, with costs of suit. Execution shall only issue for assessments and costs as they accrue, and every such execution must be accompanied by a list of losses for which the assessment is made. If the whole amount of liability is insufficient to pay the loss occasioned by any fire or fires, the sufferers insured toward | making good their respective losses, shall receive a propor- tional share of the whole amount of such liabiity, according to the sums of them respectively insured. No member ever shall be required to pay for a loss occasioned by fire, or inland navigation, more than the’whole amount of such liability. (R. S. Sec. 3651.) SECTION 9541. In actions for the recovery of assess- ments duly levied by the directors of a mutual fire insur- ance company of this state, or for money due on the liability of the members of such a company, the official statement of its president or secretary, under seal, and sworn to, shall : oa 120 be received in court as evidence of the facts essential for making it, and that the assessment, for which an action is commenced was duly levied, and notice thereof given. (R. So eG: 3052:) SECTION 9542. Companies may be organized for the special purpose of insuring persons against accidental per- sonal injury or loss of life, while traveling by railroad, steamboat, or other mode of conveyance, and making all and every insurance connected with accidental loss of life, or personal injury caused by accident, of any description; against expenses and loss of time occasioned by sickness or other disability, on such terms and conditions for such periods of time, and confined to such countries, localities, and persons, as may be provided for in the by-laws of the company. (R.S. Sec. 3670.) SECTION 9543. When a company so organized desires to do business in another state, by the laws of which, to qualify it therefore, it is required to make a deposit of securities -assigned in trust for the benefit of its policy- holders with an officer of this state, the state treasurer shall receive such deposit, and issue therefore to the company his receipt, giving a pertinent description of the securities and a certificate of the market value thereof. He also shall issue a like certificate to the superintendent of insur- ance, who shall place it on file in his office. Such company may exchange these securities for other like securities, in whole or part, as far as its business requires, and wholly withdraw them if it discontinues business in such other state. Such charges or withdrawals of securities at once shall be duly certified by the treasurer to the superintendent of insurance. (R. S. Sec. 3670.) SECTION 9544. When a joint stock fire and marine in- surance company of this state, determines by a vote of the holders of two-thirds of its stock to consolidate and make joint stock with another like company or companies engaged in or incorporated for like business, and each agrees by such vote to the consolidation, the companies by a vote _ of the holders of a majority of the stock so consolidated may determine under which corporate organization or articles of, association of the consolidating companies, and under what name, their future business shall be conducted. ERn a2 3G. 3071.) SECTION 9545. Upon filing with the superintendent of _ insurance a certificate of such consolidation, the companies thenceforth shall be consolidated under the corporate or- ganization or articles of association and corporate name chosen. Thereupon also all franchises, rights, equities, property, and estate, of whatever name or nature, belonging to or vested in either of the consolidating companies, im- mediately, upon and by the act of such consolidation shall become the property and estate of and be vested in the consolidated company, and the corporate existence of the consolidating companies thenceforth cease, and be merged x. Di Accident companies authorized, Deposits of accident com— panies. Consolidation. Rights and duties of consolidated companies, Distribution of stock of consolidated company. ’ the consolidation, and new shares of the consolidated com- Election of directors. Capital stock limited. Filing of cer- tificate of con- solidation. Bonds may be approved by probate judge, May reinsure risks, PIg0e: in the consolidation. Such consolidated company shall have the exclusive right and power to demand, sue for, collect, convey, and dispose of the rights, equities, property, and estate aforesaid, or any part thereof, under its own name, and all debts, liabilities, and obligations of the consolidating — companies shall be assumed and paid by it. (R, S. Sec. 3671.) | SEcTION 9546. Upon such a consolidation the just and true value of each outstanding share of the capital stock of each of the consolidating companies shall be ascer- tained by their respective directors through a suitable valua- tion of all the assets and liabilities thereof at the time of S a 0 At sate Ph meh en pany be apportioned to each stockholder, equal to the sum ascertained to be the just and true value of his shares in each or either of the consolidating companies. The shares thus apportioned shall be substituted for his original shares, and all certificates of shares in the consolidating companies must be surrendered when the new certificates of the shares so apportioned are issued. But a stockholder in either of the companies so consolidating who refuses to agree thereto, shall be entitled to receive for the stock by him — owned its just market value at the time thereof, to be — paid to him previous to such consolidation. (R. S. Sec. 3672.) SECTION 9547. Immediately upon the consolidation of such companies, their directors shall elect from their mem- bers the directors for the consolidated company, who shall - serve until their successors are elected and qualified. (R. S. Sec. 3673.) ; Section 9548. The capital stock of such consolidated — company may be equal to, but by virtue of such consolida- ~ tion, shall not exceed the aggregate authorized capital of the ~ consolidating companies. (R. S. Sec. 3674.) SEcTION 9549. Within thirty days after such consoli- dation a certificate, setting forth the fact thereof, and the — name and organization adopted thereby, shall be filed in the = office of the secretary of state. (R. S. Sec. 3675.) 4 SEction 9554. An insurance company which, by the ~ terms of its charter, is required to have its official bonds ~ approved by a judge of the common pleas court at its option may have them approved by the probate judge of the county — in which the office of the company is located. (R.S. Sec. = 3085.) : 7 SEcTION 9555. A fire, marine, fidelity, accident, plate- — glass, boiler or other insurance company organized or exist- ing under or by virtue of the laws of this state, by and with the approval of the superintendent of insurance, may rein- ~ sure all risks undertaken by it in any company authorized ~ by law to transact a similar class of insurance business in — this state. Nothing herein shall prevent such a company — from reinsuring any risks or fractional parts thereof not — Pr oe Aan ai { PE eee IF nay eae See 131 “situated in this state in any company or companies duly licensed by such superintendent or like authority, of the state in which such risks may be located, to transact the business of insurance in that state. (97 v. 446 § 1.) 3 Section 9556. All companies organized or admitted for the purpose of insuring against loss or damage by fire, may insure against loss or damage by water, caused by the breakage or leakage of sprinklers, pumps, tanks, water pipes and fixtures connected therewith, and by lightning, explo- sions from gas, dynamite, gunpowder, and other like ex- _plosions, and tornadoes: and may also insure against loss by the theft of automobiles and accessories, and against damage thereto from this cause. SECTION 9556-1. Individuals, partnerships and cor- porations of this state, herein designated subscribers, are authorized to exchange reciprocal or inter-insurance con- tracts with each other, and with individuals, partnerships and corporations of other states, districts, provinces and countries, providing indemnity among themselves from any loss which may be insured against by any fire insurance company or association under other provisions ‘of the law. Such contracts and the exchange thereof and such subscrib- ers, their attorneys and representatives shall be regulated by this act and by no other insurance law unless such law is referred to in this act, and no law hereafter enacted shall apply to them, unless they be expressly designated : ¢ therein. SECTION 9556-2. Such contracts may be executed by an attorney or other representative, herein designated “at- torney,”’ duly authorized by and acting for such subscribers under powers of attorney, and such attorney may be a corporation. The principal office of such attorney shall be maintained at sttch place as may be designated by the sub- scribers in the powers of attorney. SECTION 9556-3. Every such attorney shall pay to the superintendent of insurance for the use of the state the fol- lowing fees: For filing declaration, twenty-five dollars; For filing each financial statement required by this act, twenty dollars; For filing each certificate of license, and certified copy thereof, two dollars; For each copy of a paper filed in his office, twenty cents per folio; . For affixing the seal of office and certifying any paper, one dollar. The attorney shall file with the superintendent of in- surance a declaration, verified by his oath, or when the -attorney is a corporation, by the oath of its duly authorized officers, setting forth: _(a) The name of the attorney and the name or desig- nation under which such contracts are issued, which name AISA, Insurance against light- ning, explo- sions an tornadoes. Exchange of reciprocal or interinsurance contracts. How contracts executed, . Schedule of fees. Declaration under oath filed with superin- tendent, Action on contract}; procedure. 132 a or designation shall not be so similar to arly name or desig- nation adopted by an attorney, or by any insurance organ- ization in the United States, prior to the adoption of such name or designation by the attorney, as to confuse or de- ceive, unless such other attorney or organization shall con- sent thereto in writing. (b) The location of the principal office. (c) The kind or kinds of insurance to be effected. (d) Acopy of each form of policy, contract or agree- ment under or by which such insurance is to be effected. (e) A copy of the form of power of attorney, under which such insurance is to be effected. (f) That applications have been made for indemnity upon at least seventy-five separate risks, aggregating not less than one and one-half million dollars, represented by executed contracts or bona fide applications to become con- currently effective. (g) That there is in the possession of such attorney ; assets of not less than fifty thousand dollars, available for “f the payment of losses. (h) A financial statement in form prescribed for the annual statement. (1) The instrument authorizing service of process as provided for in this act. SECTION 9550-4. Action on any contract of indemnity made by such attorney and actions to recover taxes, and all other actions, may be brought against the attorney in the county where the cause of action arises or where the claimant resides. In any such action against such attorney summons and process shall be served on the superintendent of insurance and must be made in duplicate, and when so made shall have the same force and effect as if it had been served on such attorney and his subscribers personally ; and judgment shall be rendered accordingly. By receipt of his license, every such attorney shall be held to have appointed the superintendent of insurance the agent and at- torney for himself and for his subscribers to accept service of such summons and process, and such authority shall continue so’ long as any liability remains outstanding in this state, against the attorney or his subscribers on any such contracts of indemnity issued by any such attorney or his subscribers. Upon filing his declaration the attorney shall deliver to the superintendent of insurance an instru- ment executed by him for and on behalf of all his sub- scribers, stipulating the authority aforesaid relating to ac- tions and process. When any such summons or other proc- — ess is served on the superintendent of insurance, he shall forthwith forward by registered mail prepaid one of the- duplicate copies, directed to the attorney at his principal office as designated in his declaration or amendment thereof. The party commencing such action shall, at the time of — such service pay to the superintendent of insurance for the use of the state a fee of two dollars, which shall be — ee -refutided to such party as part of the taxable costs, if he _ prevail in the action. SECTION 9556-5. Every such attorney shall create and maintain a reserve fund equal to fifty per cent of the amount of advance premiums or déposits received and re- ceivable on unexpired contracts of indemnity running one year or less from date of issue and a pro rata amount of premiums’ or deposits received or receivable on unexpired contracts of indemnity running more than one year from date of issue. If, upon examination or otherwise, it ap- pears to the superintendent of insurance that the assets, invested as permitted by the laws regulating the invest- ments of insurance companies, and moneys accumulated by any such attorney, after deducting therefrom a reserve fund computed as herein provided, are less than the lia- bilities incurred and unpaid, such reserve fund shall be restored within thirty days from the service of a requisi- tion for that purpose by the superintendent of insurance upon the attorney. If any such attorney or other person shall make any advancements to restore any such impair- ment, the claim for the same against his subscribers shall be deferred to claims for losses. If such reserve fund is not restored as so required, the superintendent of insurance may revoke the license of the attorney. SECTION 9556-6. Every such attorney shall file with the superintendent of insurance on or before March 1 of each year, a financial statement for the year ending De- cember 31 of the year preceding, on form furnished by the superintendent of insurance, which shall conform as nearly as may be to the form of statement, from time to time, adopted by the National Convention of Insurance Commissioners, and containing such exhibits of the condi- tion and transactions of the attorney as the superintendent of insurance, in such form and otherwise, may reasonably prescribe. Such statement shall be verified by the oath of the attorney, or of the principal officer thereof if the attorney is a corporation. Such attorney shall not be re- quired to furnish lists of names and addresses of sub- scribers, except in case of an unpaid final judgment. SEcTION 9556-7. In such annual statement the attor- ney Shall set forth the gross amount of premiums or de- posits received by him during the preceding calendar year on contracts of indemnity covering risks within the state. He shall also set forth therein, in separate items premiums paid for cancellations, premiums or deposits returned and credited ratably to subscribers, and consideration received for re-insurance during such year. The superintendent of insurance shall compute a tax of 2%4-per cent., and in case of fire insurance an additional one-half of one per cent. fire marshal tax on the balance of such gross amount of premiums, after deducting premiums and deposits so re- turned and credited and considerations received for re-in- surances, and prior to November first mail to such attorney, Amount of reserve fund to be main- tained, Annual financial state- ment. filed : with superin- tendent. Contents of statement; computation of tax; pay- ment. Examination by superin- tendent of books and affairs; expense. Power and right to exchange con- tracts. 1347 f at his principal office, designated in his declaration or premiums or deposits, after deducting premiums and de- posits so returned and credited and considerations received for re-insurances, and prior to November first mail to such attorney, at his principal office, designated in his declaration or amendment thereof, a statement of the amount of the tax so charged, which amount the attorney shall pay to the treasurer of state for the use of the state on or before December first of such year, or within thirty days after receipt of such notice. No further taxes shall be imposed upon such attorney or his subscribers or their representa- tives for the privilege of transacting business in the state. If an attorney shall cease doing business in the state, he shall thereupon make report to the superintendent of in- surance of the premiums or deposits subject to taxation, not theretofore reported, and forthwith pay to the super- intendent of insurance a tax thereon computed according to law. If such attorney fail to make any report for tax- ation, or fail to pay any tax as herein required, his sub- scribers shall be liable to the state for such unpaid taxes, and a penalty of not more than twenty-five per cent. per annum after demand therefor. Service of process in any action to recover such tax or penalty shall be made accord- ing to the requirements of the law relating to actions against the attorney and his subscribers. SEcTION 9556-8. The superintendent of insurance may make examinations of the books and affairs of any such attorney, including the records of names of subscribers, and the attorney and his deputies shall facilitate such examina- tions and furnish all information which the superintendent may reasonably demand. The expense of such examina- tions shall be paid by the treasurer of state, on the warrant of the auditor of state, upon the certificate of the superin- tendent of insurance. But if an examination is made upon the demand of the attorney, the expense thereof shall be paid by such attorney, upon certificate and itemized bills furnished by the superintendent. Provided that when the superintendent shall apply in writing to the governor, and the governor shall direct, in writing any Such examination, and shall fix the compensation of examiners, other than the regular salaried assistants, then such attorney shall pay to the superintendent the actual expense of such examina- tion upon the certificate and itemized bills furnished by the superintendent. Provided that when the principal office of the attorney is located in another state the superintendent may accept, in lieu of the foregoing, a certified copy of the report of examination by the insurance department of that or another state. SECTION 9556-9. Any corporation now or hereafter organized shall, in addition to the rights, powers and fran- chises specified in its articles of incorporation, have full power and authority as a subscriber to exchange insurance contracts of the kind and character herein mentioned. The — PO ee ea ee ee ee ee ee Pee © ae eee eS eee org oats bial : se 135 ‘right to exchange such contracts is hereby declared to be incidental to the purposes for which such corporations are organized, and as fully granted as the rights and powers expressly conferred upon the corporation. SECTION 9556-10. Upon compliance with the require- ments of this act the superintendent of insurance shall issue a license to the attorney, authorizing him to make such con- tracts of indemnity, which license shall specify the kind or kinds of insurance and shall contain the name of the at- torney, the location of his principal office, and the name or designation under which such contracts of indemnity are issued. So long as such attorney complies with the require- ments of this act, the superintendent annually, upon applica- tion of the attorney, shall renew the license. The superin- tendent may revoke or suspend the license of any attorney: When he shall not be in possession of.fifty thousand dollars of assets, invested as permitted by the laws regulating the investments of insurance companies and moneys accumu- lated by such attorney, or any attorney in case of breach of any of the conditions imposed by this act, upon reason- able notice in writing to the attorney, so that he may ap- pear and show cause why such license should not be re- voked or suspended. SECTION 9556-11. Every attorney shall certify in duplicate to the superintendent of insurance the names and addresses of the persons authorized by him to solicit powers of attorney or applications for such contracts of indemnity in this state. The authority of such persons shall continue until the first day. of the next April, unless cancelled by the attorney and certificate of such cancellation is filed with the superintendent, or unless the license of the attorney or authority of such person shall be revoked or suspended by the superintendent; and expiring certificates of such per- sons’ authority may be renewed in like manner to continue until the first day of the next April. The superintendent shall record the names and addresses of such persons in such manner that names of such duly authorized persons may conveniently be inspected and shall thereupon certify and deliver to the attorney a list of the names of all per- sons so recorded. If the superintendent shall find that any such person has wilfully violated or refused or failed to comply with any provision of this act or has been convicted of the violation of any law of the United States, or of this or any state, he may refuse or revoke the authority of such person and cancel his name on the superintendent’s records, and shall thereupon notify such person and the attorney of such revocation. Thereafter such person shall not act as representative of any attorney until new certificate of his authority by the attorney thereafter appointing him, shall be duly filed with and approved by the superintendent. No person shall act for any such attorney in placing insurance or making such contracts of indemnity, unless the attorney shall have such license, nor unless the unexpired, unrevoked License to at- torneys; revocation. List of names and addresses of persons authorized to solicit must be filed with superin- tendent; revo- cation of authority. Contracts may be solicited without license for purposes of organization, Penalty for violations of law. Foreign com- panies must obtain license. 136 and unsuspended certificate of such person’s authority is filed with the superintendent. Any person shall be in- dividually liable on any contract of indemnity made, issued or accepted through him as representing any attorney not licensed by the superintendent to make such contracts of indemnity. . SECTION 9556-12. For the purposes of organization and upon issuance of permit by the superintendent of in- surance, powers of attorney and applications for such con- tracts may be solicited without license, but no such attorney or other person shall make any such contracts of indemnity until he shall comply with the provisions of this act. No such attorney shall make any contracts of re-insurance or risks located in this state with any company, association or person not authorized by law to transact business in this state, and no such attorney shall re-insure all risks under- taken by him without the consent of the superintendent of insurance. . SECTION 9556-13. Any attorney, or other person who shall violate any provision of this act, or fail to comply with any duty imposed upon him by any provision of this act, for which violation or failure no penalty is elsewhere provided by law, shall be fined not exceeding five hundred dollars. FOREIGN. SECTION 9559. Except surety companies which are admitted to guarantee the fidelity of persons holding places of public or private trust who may be required to or do in their trust capacity receive, hold, control and disburse pub- lic or private moneys or property, and guarantee the per- formance of .contracts other than insurance policies and execute and guarantee bonds required or permitted in all actions or proceedings, or by law allowed, a company, asso- ciation, or partnership, incorporated, organized or asso- ciated under the laws of another state of the United States or of a foreign government, for any of the purposes men- tioned in this chapter, which does a banking or other kind of business in connection with insurance, shall not, directly or indirectly, transact any business of insurance in this state, nor shall any such company, association or partnership do any such business in this state until it procures from the superintendent a certificate of authority so to do; nor shall any person or corporation act as agent in this state for such a company, association or partnership, directly or indirectly, in procuring applications for insurance, taking risks or in- any way transacting the business of insurance, until it pro- cures from the superitendent a license so to do, stating that the company, association or partnership has complied with all the requirements of this chapter applicable to it, and depositing a certified copy of such license in the office of the recorder of the county in which the office or place of. CR. Suse business of such agent or agents is established. 3656. ) Pye Ae Sn ee x r z 4 f ? ‘? 4 a Lh 137 SEcTION 9560.. No company, association or part- nership organized under the laws of another state, shall take risks or transact business of insurance in this state, directly or indirectly, unless possessed of the amount of actual capital required by similar companies formed under the provisions of this chapter, nor unless the capital stock of the company is paid up and invested as required by the laws of the state where it was organized, and if a live stock insurance company, until it has deposited in such state or in this state, for the benefit of its policy-holders, securities approved by the insurance department of such state in an amount equal to one-fourth of its entire capital stock. If the company is a mutual fire insurance com- pany it must have actual cash assets of the amount and description required of such companies of this state, af- ter organization, invested as required by the law of the state where the company was organized. Such companies also must have either premium notes or contingent liabil- ity of the amount required of similar fire insurance com- panies of this state, which contingent liability may be either in writing or be expressed in the policies issued by the company. (R. S. Sec. 3656.) SECTION 9561. Any such company desiring to trans- act business by an agent in this state, shall file with the superintendent of insurance a written instrument, duly signed and sealed, authorizing any of its agents in Ohio to acknowledge service of process therein for and in behalf of the company, consenting that service of proc- ess, mesne or final, upon any agent, shall be as valid as if served upon the company according to the laws of this or any other state or country, and waiving all claim or right of error by reason of such acknowledgment of ser- vice; also, consenting that suit may be brought against it in the county where the property insured was situated, or was insured, or the application for insurance taken, and that service of process made therein by the sheriff of such county, by sending a copy thereof by mail, ad- dressed to the company at the place of its principal office located in the state where it was organized, or, if it is a foreign company, to it at the place of its principal office in the United States, at least thirty days prior to taking judgment in such suit, shall be as valid as if personally made upon the company according to the laws of this state, or any other state or government; also, if suit be brought against it after it ceases to do business in this state, and there is no agent of the company in the county in which it is brought upon whom service of process can be made that service upon it may be had by the sheriff sending a copy thereof, so mailed, and within such time. But the sheriff’s return must show the time and manner of such service. -(R. S. Sec. 3657.) SECTION 9562. Every such company, association, or partnership, shall also file with the superintendent of Insurance a certified copy of its charter, or deed of settle- Capital neces- sary of foreigx company. Companies shall file waiver. Statement required of foreign company. Revocation of license of for- eign company. Foreign come panies may have common agent. What com- panies shall make deposit. What deemed capital of for- eign company. ment, together with a statement, under the oath of its president, vice-president, or other chief officer, and the secretary of the company, stating the name of the com- pany, the place where it is located, and the amount of its capital, with a detailed statement of the facts and items required by section ninety-five hundred and sey- enty-four and ninety-five hundred and ninety of com- panies organized under the laws of this state. They also shall file with the superintendent a copy of their last an- nual report, if one was made, under any law of the state by which it was incorporated. (R. S. Sec. 3658.) SECTION 9563. If such company, association or partnership doing business in this state, makes an appli- cation for a change of venue, or to remove a suit begun in a court therein, in which it has been sued by a citizen of this state, to the United States district or circuit court, or to any federal court, or enters into any compact or combination with other insurance companies, or requires its agents to enter into any compact or combination with other insurance agents or companies, for the purpose of controlling the rates charged for fire insurance on prop- erty in this state, or of controlling the rates per cent amount of commission or compensation to be allowed agents for procuring contracts for such insurance on such property, the superintendent of insurance forthwith shall revoke and recall the license to it to do business in this state, and no renewal thereof shall be granted for three years after its revocation. Such company, association or partnership also shall be prohibited from transacting any. business in this state until again duly licensed and author- ized... (R-oe-Secs 3680.98 SECTION 9564. Nothing in the preceding section — shall prevent one or more of such companies from em- ploying a common agent or agents to supervise defective structures, or advise respecting them, and to suggest im- provements for lessening their fire hazards, or advise as to the relative value of risks. (R. S. Sec. 3659.) SECTION. 9565. A company incorporated by or or- ganized under the laws of the foreign government, shall deposit with the superintendent of insurance, for the benefit and security of its policy-holders residing in the United States, a sum not less than_one hundred thou- sand dollars in stocks or bonds of the United States, the state of Ohio or a municipality or county thereof, which shall not be received by the superintendent at a rate above - their par value. Stocks and securities so deposited may be exchanged from time to time for other like securities. So long as the company so depositing continues solvent and complies with the laws of this state, the superintendent shall permit it to collect the interest or dividends on such deposits. (R. S. Sec. 3660.) : SECTION 9566.. For the purposes of this chapter the capital of a foreign company doing fire insurance business in this state shall be deemed to be the aggregate value of — Te Aik 139 its deposits with the insurance or other departments thereof, and of the other states of the United States, for _ the benefit of policy-holders in the United States, and its assets and investments in the United States certified ac- cording to the provisions of this chapter. Such assets and investments must be held within the United States and invested in and held by trustees, who are citizens of the United States, appointed by the board of directors of the company and approved by the insurance commissioner of the state where invested, for the benefit of the policy- holders, and creditors in the United States. The trustees so chosen may take, hold and convey real and personal property for the purpose of the trust, subject to the same restrictions as companies of this state. All property and investments, cash and bank deposits and premiums in- course of collection and agents’ balances actually owned and‘held in the United States may be admitted as assets of such company of a foreign country doing insurance business other than life, if investments and assets of simi- lar character are allowed and: admitted:as such, by the laws of the state in which the company has its head office, to companies organized in such state doing similar busi- ness therein. (R. S. Sec. 3660.) SECTION 9567. Every company other than a life company, organized by act of congress, or under the laws of another state or government, annually, at the time, and in the form and manner required of similar companies organized under the laws of this state, shall file a state- ment of its condition and affairs in the office of the super- intendent of insurance. A company organized under or incorporated by a foreign government shall also furnish a supplementary statement for the year ending on the preceding thirty-first day of December, verified by the oath of the manager of such company residing in the United States, which shall comprise a report of its business and affairs in the United States, as required from companies organized in this state, together with any other informa- tion that may be required by such superintendent. If such annual statement be satisfactory evidence to him of the solvency and ability of the company to meet all its en- gagements at maturity, and that the deposit is maintained as hereinbefore provided, the superintendent shall issue renewal certificates of authority to the agents of the com- pany, certified copies of which shall be filed in the re- corder’s office of each county wherein an agency is lo- cated, during the month of January in -each year, or within sixty days thereafter. Such certificates shall be the authority of such agents to issue new policies in this state for the ensuing year. (R. S. Sec. 3461.) DOMESTIC AND FOREIGN, SECTION 9568. No company organized under the laws of this state to transact the business of guaranteeing the fidelity of persons holding places of public or private Annual statement. Deposit re- quired of guaranty com-— pany. Foreign guar- anty company. Estoppel of company exe- cuting bond, Sufficiency of bonds executed by guaranty company. 140 trust, who are required to’or in their trust capacity do receive, hold, control, disburse public or private property, and guaranteeing the performance of contracts other than insurance policies, or of executing or guaranteeing bonds or undertakings required or permitted in actions, proceed- ings or by law allowed, shall commence business until it has deposited with the superintendent of insurance two hundred thousand dollars in securities permitted by sec- tions ninety-five hundred and eighteen and ninety-five hundred and nineteen, which shall be held for the benefit and security of all the policy-holders of the company, and not be received by him at a rate above their par value. CReSo See. 3641.5 SECTION 9569. Any such company organized under the laws of another state, territory, district or country shall not be licensed to transact such business in this state unless at least two hundred thousand dollars of its assets are invested in securities permitted by sections ninety-five hundred and eighteen and ninety-five hundred and nine- teen, or in securities permitted by the laws of the state, district or territory in which it is organized, and they are deposited with the superintendent of insurance in this state, or the superintendent of insurance or other officer of another state, district or territory designated by the laws, thereof to receive them, and such securities are deposited with him, and the superintendent of insurance of this state is furnished with a certificate of such officer under his hand and official seal that he, as such officer, holds in trust on deposit for the benefit of all the policy- holders of such company the securities above mentioned, giving the items thereof, and stating that he is satisfied such securities are worth at least two hundred thousand dollars. Securities so deposited with such superintendent may be exchanged from time to time for other like se- curities, and so long as the corporation depositing them continues solvent and complies with the laws of this state, he shall permit it to collect the interest or dividends on such deposit. (R.S. Sec. 3641.) SecTION 9570. A company which executes a bond as surety under the foregoing provisions in any proceed- ing to enforce the liability which it has assumed to incur shall be estopped to deny its corporate power to execute such instrument or assume such liability. (R. S. Sec. 3641.) SECTION 9571. When a bond, recognizance or un- dertaking is required or permitted by law, with one or more sureties, its execution or the guaranteeing thereof, as the case may be, as sole surety, by a company author- ized to guarantee the fidelity of persons holding places of public or private trust, to guarantee the performance of contracts other than insurance policies, and to execute and guarantee bonds and undertakings in actions or pro- ceedings or by law allowed is sufficient, and when so - 141 ‘executed and guaranteed, shall be a full compliance with every requirement of law, ordinance, rule or regulation that such bond, or recognizance must be executed and guar- anteed by one surety or two or more sureties, or that such sureties, shall be residents or householders or free- holders. (R. S. Sec. 3641Ic.) SECTION 9572. ,A judge, court or officer, whose duty it is to pass upon the account of an assignee, trustee, re- ~ ceiver, guardian, executor, administrator or other fidu- ~ ciary, required by law to give bond as such, whenever any fiduciary has given bond with a surety company as surety thereon, in: the settlement of his account as such fiduciary, shall allow a reasonable sum paid such a com- pany authorized under the laws of this state so to do, for becoming his surety, not above half of one per cent per annum on the amount of the bond; unless it is in double the amount of the liability of the fiduciary, when the sum so allowed must not exceed a fourth of one per cent per annum. Such company must have complied and continued to comply with the laws of this state relative to it, and with requirements as to justification, prescribed by the head of the department, court, judge, or officer required to approve or accept the bond. The bond or recognizance also must be approved by the head of the department, court, judge, or officer required to approve or accept it. (R. S. Sec. 3641c.) SECTION 9573. The two preceding sections authorize such company to become surety upon the bond required by law of any state officer, except the superintendent of insurance, and of any county, township or municipal officer. Such company may be accepted by the officer or officers required to approve such bond, in lieu of the sure- ties now required by law. (R. S. Sec. 364Ic.) Section 9575. All buildings insured by a mutual company must be pledged to such company, together with the right and title of the assured in the lands upon which they are situated, to the amount of the premium note or contingent liability, and the company shall have a lien thereon to the amount of such note or liability, but the _ lien shall not take effect until the company files with the Be ee i recorder of the county in which the property insured is located, a certificate, stating the date, number, and amount of premium notes, or contingent liability, and stich a de- scription of the property insured as will enable a person readily to identify it. (R.S. Sec. 3663.) SECTION 9576. The recorder must record and index the certificate in his book of liens, for which he shall re- ceive fifty cents. Liens heretofore acquired by such a company shall continue in force under this chapter. (R. S. Sec. 3663.) SECTION 9577. A fire insurance company doing business under the laws of this state which issue policies of insurance covering property located herein, and on Allowance of premium. Bonds of pub- lic officers. Lien of mutual companies for premium notes. Duty of recorder, Cancellation of policies. Rates of can- cellation for cash policies. Rates of can- cellation of mutual com- panies. Rates when premiums paid in installment. Premium notes not negotiable. Superintendent to enforce pio- visions. Extent of liability under policy. 142 such policies receives from the persons insured either cash payment of premium, or notes subject to assessment for payment of losses, or notes for the installments of pre- mium, shall be required to insert in every policy so issued an obligation to cancel it, upon the written request of the person insured on conditions as provided in the next fol- lowing five sections. (R. S. Sec. 3664.) SEcTION 9578. When a policy’ issued on the cash plan is cancelled, in accordance with the provisions of the preceding section, the companies so issuing. may retain customary short rates, as established and charged by com- — panies doing a cash business, for the time the policy has been in force, and return to the insured the unearned premium on the policy for unexpired time. (R. S. Sec. 3065.) : SECTION 9579. When policies issued on the mutual plan are so canceled, the companies so issuing must sur- render to the insured the note or notes received from him for premium or payment of losses. Such policies first: shall be sent to the secretary or agent of the company, and within sixty days after receipt thereof for cancellation the premium note shall be returned. But the assured first shall pay his proportion of all losses which actually oc- curred up to the date when the policy was received. The company shall not be liable for any loss under any such policy after it is returned for cancellation. (R. S._Sec. 3666.) SEcTION 9580. When policies issued on the install- ment plan are so canceled, the companies so issuing may collect of the insured customary short rates for. the time the policy has been in force, to be computed on the full term of insurance mentioned in the policies as charged by such companies. On receipt of such short rates they must return all installment notes then unpaid, and refund to the insured any premium collected in excess of the short rates. (R. S. Sec. 3667.) SECTION 9581. When companies doing business under the laws of this state receive notes in consideration of premiums on their policies, they must place on the face of each note the following words: “It is hereby under- stood and agreed that this note is not transferrable.” (R. S. Sec. 3668.) SECTION 9582. When it comes to the knowledge of the superintendent of insurance, or an officer having charge of the insurance department, that any provision of the five preceding sections has been violated, he at once shall proceed to make a thorough investigation in regard to it, and on sufficient proof of such violation, revoke the certifi- cate of authority of the company guilty thereof. (R. S. Sec. 3660.) SECTION 9583. A person, company, or association in- suring any building or structure against loss or damage — by fire or lightning, by a renewal of a policy, shall cause _ ee ene a OEE len em i Me meee gt ee vn a TT ee ee NO Gea Yay 143 ‘such building or structure to be examined by his or its agent, and a full description thereof to be made, and its insurable value fixed, by him. In the absence of any change increasing the risk without the consent of the in- surers, and also of intentional fraud on the part of the insured, in case of total loss, the whole amount mentioned in the policy or renewal upon which the insurer receives a premium, and in case of a partial loss, the full amount thereof, shall be paid. (R. S. Sec. 3643.) SECTION 9584. When there are two or more policies upon the same »roperty, each policy shall contribute to the payment of the whole or the partial loss in proportion to the amount of insurance mentioned in each policy. In no case shall the insurer be required to pay more than © the amount mentioned in its policy. (R. S. Sec. 3643.) SecTIon 9585. The cellar and foundation walls shall not be included or considered a part of the building or ‘structure in settling losses, anything in the application or policy to the contrary notwithstanding. (R. S. Sec. 3691.) SecTion 9586. A person who solicits insurance and procures the application therefor, shall be held to be the agent of the party, company or association, thereafter is- suing a policy upon such application or a renewal thereof, anything in the application or policy to the contrary not- withstanding. (R.S. Sec. 3644.) SECTION 9587. Policies or contracts of insurance made or entered into by the company may be made either with or without its seal. They shall be subscribed by the president or such other officer as the directors designate for that purpose, and be attested by the secretary. When so subscribed and attested, they shall be obligatory on the company. (R. S. Sec. 3645.). SECTION 9588. No fire insurance company, organ- ized under the laws of this state, or admitted to do busi- ness therein, in any public advertisement, card, or circular, shall include in a statement of assets, any item of value, of a class or character not admitted by the superintendent of insurance of this state in the annual reports of such com- panies. And every such advertisement, card, or circular, containing a statement of assets, in all cases also must contain a full statement of all the liabilities of the com- pany, including the reinsurance reserve, which in no case shall be less than that required by law for its annual re- port. (ROS. Sec: 366ra.) SECTION 9589. Any violation of the preceding sec- tion, after the second notice from the superintendent of insurance will render such company liable to a forfeiture of one thousand dollars, and each subsequent violation to a like forfeiture to be recovered for the benefit of the common school fund of the county, in an action to be in- stituted by the prosecuting attorney in the name of the State, against such company. (R. S. Sec. 3661b.) When two or more policies on same prop- erty. Cellar and foundation not to be considered. Solicitor agent of company. How contracts evidenced. Restrictions in advertisements. Forfeiture. Rebates and special advan- tages in pol- icies, etc., prohibited. Testimony. Incrimination. Penalty. 144 SECTION 9589-1. {[ 1. No corporation, association or co-partnership engaged in the state of Ohio in the guaranty, bonding, surety or insurance business, other - than life insurance, nor any officer, agent, solicitor, em- ploye or representative thereof shall pay, allow or give, or offer to pay, allow or give, directly or indirectly, as inducements to insurance, and no person shall knowingly receive as an inducement to insurance any rebate of pre- mium payable on the policy, nor any special favor or ad- vantage in the dividends or other benefits to accrue thereon, nor any paid employment or contract for services of any kind or any special advantage in the date of the policy or date of the issue thereof, or any valuable con- sideration or inducement whatsoever not plainly specified in the policy or contract of insurance or agreement of in- demnity, or give or receive, sell or purchase, or offer to give or receive, sell or purchase, as inducements to insur- ance or in connection therewith any stock, bonds, or other obligations of an insurance company or other corporation, association, partnership or individual. But the provisions of this act shall: not apply, however, to prevent the pay- ment to a duly authorized officer, agent or solicitor of such company, association or co-partnership of commis- sions at customary rates on policies or contracts of insur- ance effected through him by which he himself is insured, provided such officer, agent or solicitor holds himself out as such and has been engaged in such business in good faith for a period of six months prior to any such pay- ment; nor shall this act prohibit a mutual fire insurance company from paying dividends to policyholders at any — time after the same has been earned. SECTION 9589-2.. J 2. No person shall be excused from attending or testifying or producing any books, papers or other documents before any court or magistrate having jurisdiction, upon any investigation, proceeding or trial for a violation of any of the provisions of this act, upon the ground or for the reason that the testimony of evidence, documentary or otherwise, required of him may tend to incriminate or degrade him, but no person shall be prosecuted or subject to any penalty or forfeiture for or on account of any transaction, matter or thing concern- ing which he may so testify or produce evidence, docu- mentary or otherwise, except for perjury committed in so testifying. SECTION 9589-3. {| 3. Every corporation which shall violate any of the provisions of this act, upon convic- tion thereof, shall be fined in any sum not less than one hundred dollars and not exceeding five hundred dollars to be recovered by action in the name of the state, and every officer, agent or solicitor, or other person who shall violate any of the provisions of this act, upon conviction thereof shall be fined-in any sum not less than one hundred dol- lars nor exceeding five hundred dollars, and’ of the fines which shall be levied and collected for the violation of 145 any of the provisions of this act, shall be paid to the county treasurer for the benefit of the common school fund. SECTION 9589-4. {| 4. It shall be the duty of the superintendent of insurance upon conviction of any agent for violation of any of the provisions of this act, to re- voke the license of the agent so offending, and no license shall be granted to such agent for a period of three years after such revocation. SEcTION 9590. The president or vice-president and secretary of each insurance company organized under the laws of this or any other state, and doing business in this state, annually, on the first day of January, or within thirty days thereafter, shall prepare, under oath, and de- posit in the office of the superintendent of insurance a statement of the condition of such company on the thirty- first day of December then next preceding, exhibiting and following facts and items, and in the following form: First. The amount of the capital stock of the com- pany, specifying the amount paid and unpaid. Second. The property or assets held by the company, specifying: I. The value of the real estate owned by such com- pany, where it is situated and the value of buildings thereon. 2. The amount of cash on hand and deposited in banks to the credit of the company, specifying in what ‘banks it is deposited. 3. The amount of cash in the hands of agents and in course of transmission. 4. The amount of loans secured by bonds and mort- gages, which are first liens on real estate, and on which there is less than one year’s interest due. 5. The amount of loans on which interest has not been paid within one year. 6. The amount due the company on which judg- ments have been obtained. and the cash value thereof. 7. -The amount of stocks in this state, the United States, of any city of this state, and of any other stocks owned by the company, specifying the amount, number of shares, and the par and market value of each ‘kind of stock. 8. The amount of stock held as collateral security for loans with the amount loaned on, and the par and market value of each kind of stock. 9g. The amount of unpaid assessments on_ stock, premium notes or contingent liabilities. : 10. The amount of interest due and unpaid and the amount of interest accrued but not due. 11. The amount of premium notes or contingent liabilities on which policies are issued. 12. The number of policies in force. 13. The amount insured under all policies in force. 14. The amount of premiums received thereon, 10 Lp, Revocation of license. Annual report. 146 15. The amount and description of all other assets. Third. The liabilities of the company, specifying: 1. The amount of losses due and unpaid. 2. The amount of claims for losses resisted by the company. 3. The amount of losses incurred during the year, including those claimed and not due, and those reported to the company upon which no action has been taken. 4. The amount of dividends declared and due and unpaid. . The amount of dividends either cash or scrip, declared but not due. The amount of money.borrowed and the security given for its payment. 7. The amount required for reinsurance, being in stock companies a sum equal to fifty per cent of the whole amount of premiums, received and receivable on unexpired risks and policies running one year or less from date of policy and a pro rata amount of all premiums, received and receivable, on unexpired risks and policies running more than one year from date of policy; and in mutual companies a sum equal to fifty per cent of the cash premiums on unexpired risks and policies running one year or less from date of policy and a pro rata amount of all cash premiums on unexpired risks and policies run- ning more than one year from date of policy. But all companies shall be charged the full amount of premiums, received and receivable, on all unexpired ocean and marine risks. 8. The amount of all other existing claims against the company. Fourth. The income of the company during the pre- ceding year, specifying: 1. The amount of cash premiums received. 2. The amount of notes or contingent assets cceatven for premiums. 3. The amount of interest money received. 4. The amount of income received from other sources. Fifth. The expenditure during the preceding year, specifying : 1. The amount of losses paid during the year, stating how much of them accrued, prior, and how much subse- quent to the date of the preceding statement, and the amount at which losses were estimated in each "preceding statement. 2. The amount of dividends aad during the year. 3. The amount of expenses paid during the year, in- cluding commissions and fees to agents and officers of the company. 4. The amount paid for taxes. 5. The amount of all payments and expenditures. 6. Amount of scrip dividend declared. (R. S. Sec. 3654.) 147 SECTION 9591. The statement of such a company, whose capital is composed in whole or part of notes, in ad- dition to what is above required, shall exhibit the amount of notes which originally formed its capital, and also what proportion of such notes is still held by the company and considered capital. Every company organized under a law of this state which fails to make and deposit such statement, or to reply to an inquiry of the superintendent of insurance with respect to it, shall be subject to a for- feiture of five hundred dollars, and an additional five hundred dollars for every month it thereafter continues to transact any business of insurance, to be recovered by ac- tion in the name of the state, and, on collection, paid into the state treasury for the benefit of the state common school fund. (R. S. Sec. 3655.) ; SECTION 959I-I. {/ 1. The indebtedness for outstand- ing losses under insurance against loss or damage re- sulting from accident to or injuries suffered by an em- ploye or other person and for which the insured is liable, and under insurance against loss from liability on account of the death of or injury to an employe not caused by the hegligence of the employer, shall be determined as fol- lows: Each corporation which writes policies covering any of said kinds of insurance shall include in the annual statement required by law a schedule of its experiences thereunder, in the United States and foreign countries in the case of corporations organized in the United States, and in the United States only in the case of corporations organized outside of the United States, giving each calen- dar year’s experience separately, and crediting or charg- ing each item to the year in which the policy to which it relates was written, as follows: (1) the earned premiums on all such policies written during the period of ten years immediately preceding the date as of which the statement is made, being the gross premiums on all such policies including excess and additional premiums and premiums in course of collection, less return premiums and pre- miums on canceled policies, and less the unearned pre- miums on policies in force as shown in such annual statement; (2) the amount of all payments of whatsoever nature made by reason or on account of injuries covered by such policies written during said period. This amount shall include medical and surgical attendance, payments to claimants, legal expenses, salaries and expenses of in- vestigators, adjusters, and field men, rents, stationery, telegraph and telephone charges, postage, salaries and ex- penses of office employes, home office expenses, and all other payments made on account of such injuries, whether such payments are allocated to specify claims or are un- allocated; (3) the number of suits being defended at the date as of which the statement is made under policies written during said period, except suits in which liability is not dependent upon negligence of the insured, and a charge of seven hundred and fifty dollars for each suit: Special reports; when required. Annual state- ment must contain a schedule of its experience as to liabilities. How. de- termined. Distribution of unallo- cated pay- ments. 148 (4) the number of deaths for which the insured are liable without proof of negligence, covered by policies written during said period, and not paid for at the date as of which the statement is made and a charge of the amount necessary to pay for such deaths; (5) the numbér of un- paid claims at the date as to which the statement is made on account of non-fatal injuries for which the insured are liable without proof of negligence, covered by policies written during said period, and a charge equal to the present value of the estimated future payments: (6) the loss ratio determined from the foregoing as to each year separately, using as the divisor the earned premiums shown in item (1) and as the dividend the amount of payments shown in item (2) plus the amount charged in items (3), (4), and (5); (7) the number of suits being defended at the date as of which the statement is made under policies written more than ten years prior to such date, except suits in which liability is not dependent upon negligence of the insured; (8) the number of deaths for which the insured are liable without proof of negligence, covered by policies written more than ten years prior to the date as of which the statement is made, and not paid | for at such date; (9) the number of unpaid claims at the date as of which the statement is made on account of non-fatal injures for which the insured are liable with- out proof of negligence, covered by. policies written more than ten years prior to such date. SECTION 9591-2. {§ 2. All unallocated payments in item (2) section I made in a given calendar year sub- sequent to the first four years in which a corporation has been issuing such policies shall be distributed as fol- lows: thirty-five per centum shall be charged to the pollt- cies written in that year, forty per centum to the policies written in the preceding year, ten per centum to the poli- cies written in the second year preceding, ten per centum to the policies written in the third year preceding and five per centum to the policies written in the fourth year pre- ceding; and such payments made in the first four calendar years in which a corporation has been issuing such policies shall be distributed as follows: in the first calendar year one hundred per centum shall be charged to the policies written in that year; in the second calendar year fifty per centum shall be charged to the policies written in that year and fifty per centum to the policies written in the preced- ing year; in the third calendar year forty per centum shall be charged to the policies written in that year, forty per centum to the policies written in the preceding year and twenty per centum to the policies written in the second year preceding; and in the fourth calendar year thirty- five per centum shall be charged to the policies written in that year, forty per centum to the policies written in the preceding year, fifteen per centum to the policies writ- ten in the second year preceding and ten per centum to the policies written in the third year preceding, and a schedule 149 showing such distribution shall be included in such annual statement. SECTION 9591-3. {| 3. Each such corporation shall be charged with indebtedness for outstanding losses upon such policies determined as follows: (10) for all Suits being defended under policies written more than ten years prior to the date as of which the statement is made, except suits in which liability is not dependent upon neg- ligence of the insured, one thousand dollars for each suit; (11) for all suits being defended under policies written more than five years and less than ten years prior to the date as of which the statement is made, except suits in which liability is not dependent upon negligence of the insured, seven hundred and fifty dollars for each suit; (12) for all deaths for which the insured are liable with- out proof of negligence, covered by policies written more than five years prior to the date as of which the statement is made, the amount necessary to pay for such deaths; (13) for all unpaid claims on account of non-fatal inju- ties for which the insured are liable without proof of neg- ligence under policies written more than five. years prior to the date as of which the statement is made, the present value of the estimated future payments; (14) for the poli- cles written in the five years immediately preceding the date as of which the statement is made an amount deter- mined as follows multiply the earned premiums of each ‘such five years as shown in item (1) by the loss ratio as- certained as in item (6) on all the policies written in the first five years of the said ten-year. period, using as the divisor the sum of the earned premiums shown ‘in item (1) for such first five years, and as the dividend the sum of the payments shown in item (2) for such first five years plus the sum of the charges in items (3), (4) and (5) for such first five years; but the ratio to be used shall in no event be less than fifty per centum at and after De- cember thirty-first, nineteen hundred and eleven, nor less than fifty-one per centum at and after December thirty- first, nineteen hundred and twelve, nor less than fifty-two per centum at and after December thirty-first, nineteen hundred and thirteen, nor less than fifty-three per centum at and after December thirty-first, nineteen hundred and fourteen, nor less than fifty-four per centum at and after December thirty-first, nineteen hundred and fifteen, nor less than fifty-five per centum at and after December thirty- first, nineteen hundred and sixteen; and from the amount so ascertained in each of the last years of said ten- year period deduct all payments made under policies written in the corresponding year as shown in item (2), and the remainder in the case of each year shall be deemed the indebtedness for that year; provided, however, that if the remainder in the case of any year of the first three years of the five years immediately preceding the date as of which the statement is made shall be less than the sum of the three following items for that year at that date Indebtedness for outstand- ing losses charged and how! same to be determined. What incorpo- rations in- cluded. Attorney- general to in- titute suits. Bureau of rating. How bureau composed; apportionment of expense, Place of office. Specification of bureau in application, 150 — (a) the number of suits, except suits in which liability is not dependent upon negligence of the insured, being defended under policies written in that year, and a charge of seven hundred and fifty dollars of each suit; (b) the amount necessary to pay for all deaths for which the in- sured are liable without proof of negligence, covered by policies written in that year; and (c) the present value of estimated unpaid claims on account of non-fatal injuries for which the insured are liable without proof of neg- ligence, covered by policies written in that year, — then the sum of said items (a), (b) and (c) shall be the in- debtedness for that year. SECTION 9591-4. § 4. A corporation which has been issuing such policies for a period of less than ten years shall nevertheless include in its annual statement a schedule as hereinbefore required for the years in which it shall have issued such policies, and shall be charged with an indebtedness determined in the same manner; but in determining the indebtedness for policies written in the five years immediately preceding the date as of which the. statement is made, the minimum ratios hereinbefore pre- scribed shall be used, subject to the same deductions and provisions as in the case of corporations that have been issuing such policies for ten years or more. SECTION 9592. On the request of the superintendent of insurance, the attorney-general shall institute such ac- tion against a company so delinquent, in the court of ap- propriate jurisdiction in Franklin county, or in the court of appropriate jurisdiction of the county in which it is located or has its principal place of business, as he pre- fers. -(R, -S.-Sec365 5.) SECTION 9592-1. Every fire insurance company or other insurer authorized to. effect insurance against the risk of loss or damage by fire or lightning in this state shall maintain or be a member of a rating bureau. No such insurer shall be a member of more than one rating bureau for the purpose of rating the same risk. SECTION 9592-2. A rating bureau may consist of one or more insurers, and when consisting of two or more in- surers, shall admit to membership any authorized insurer applying therefor. The expense of the bureau shall be shared in proportion to the gross premiums less return premiums and premiums on marine and farm risks received by each member during the preceding year in this state, to which may be added a reasonable annual fee. Each member shall have one vote. _ SECTION 9592-3. Every such rating bureau shall main- tain an office within this state. SECTION 9592-4. Every fire insurance company or other insurer aforesaid shall, in its annual application for license, specify each rating bureau making rates upon property located within this state of which it is a member, I51 and during the year, file written notice of any other such rating bureaus of which it shall become a member. SECTION 9592-5. Every rating bureau engaged in making rates or estimates for rates for fire insurance on property in this state, shall inspect every risk specifically rated by it upon schedule, and make a written survey of such risk, which shall be filed as a permanent record in the office of such bureau. A copy of such survey shall be furnished to the owner upon request. SECTION 9592-6. The superintendent of insurance may address inquiries to any individual, association or bureau, which is or has been engaged in making rates or estimates for rates for fire insurance upon property in this state, in relation to the organization, maintenance or operation, or any other matter connected with its transactions, and may require the filing of schedules, rates, forms, rules, regula- tions, and such other information as may be required, and it shall be the duty of every such individual, association or bureau, or some officer thereof, to promptly make such filing or reply to such inquiries in writing. SECTION 9592-7. The superintendent of insurance shall have power to examine any such rating bureau as often as he deems it expedient to do so, and shall do so not less than once every three years. A report thereof shall be filed in his office. The superintendent of insur- ‘ance may waive such examination upon the filing with him of a report of such examination made by some other in- surance department or proper supervising officer within such three years. A statement with regard to such ex- amination shall be made in the annual report of the super- intendent of insurance. SECTION 9592-8. No fire insurance company or other insurer against the risk of fire or lightning, nor any rating bureau, shall fix or charge any rate for fire insurance upon property in this state which discriminates unfairly be- tween risks in the application of like charges and credits, or which discriminates unfairly between risks of essentially the same hazards and having substantially the same degree of protection against fire. SECTION 9592-9. Any deviation of any company or insurer from the schedule of rates established and main- tained by the bureau which it maintains, or of which it is a member, shall be uniform in its application to all of the risks in the class for which the variation is made, and no such uniform deviation shall be made unless notice thereof shall be filed with the bureau of which the insurer is a member, and the superintendent of insurance of his state, at least fifteen days before such uniform variation is in effect; and schedules providing for such variation shall be filed with the rating bureau and the superintendent of insurance showing the amended basis rate and amended charges and credits and application of the amended sched- ules to individual risks in the class affected. Inspection of risk; record. Inquiries by superintendent of insurance. Examination of rating bureau; report. Discrimination between risks prohibited, Any deviation shall be uni- form to all risks, No contract shall be made placing insur- ance with par- ticular com- pany. Hearing upon complaint of discrimi- nation; order; review. Agreements relative to rates must comply with this act. Enforcement of agree- ments. Disapproval of agreement; service, of order; review. 152 SECTION 9592-10. Except as contained in the policy and the usual agreement for other insurance, no such in- surance company or insurer or rating bureau shall make any contract or agreement with any person insured or to be insured that the whole or any part of any insurance shall be written by or placed with any particular company, insurer, agent or any group of companies, insurers or agents. SECTION 9592-11. The superintendent of insurance may upon written complaint that discrimination in rates exists between risks in the application of like charges or credits, or discrimination between risks of essentially the same hazard and having substantially the same degree of protection against fire, order a hearing for the purpose of determining such questions of discrimination, and the re- view of such questions and the rates complained of be- fore said superintendent shall be had only after due notice to all parties interested, and if upon such hearing the superintendent shall determine that the rate complained of is discriminatory he shall have power to order the discrimi- nation removed but no such discrimination shall be re- moved by increasing the rate or rates on any risk or class of risks affected by such order unless it shall be made to appear to the superintendent of insurance that such increase is justifiable and an order of approval has been filed in the office of the superintendent of insurance. Any party in interest being dissatisfied with any order of the superintendent of insurance may within thirty days from the issue of such order and notice thereof commence an action in the supreme court for the purpose of reviewing such order and such cause shall be duly set for hearing and proceed as in other cases. During the pendency of such court proceedings the order shall be suspended, and in the event of final determination against any insurer, any overcharge during the pendency of such proceedings shall be refunded by the insurer to the persons entitled thereto. SECTION 9592-12. No fire insurance company or any other insurer, and no rating bureau, or any representative of any fire insurance company or other insurer or rating bureau, shall enter into or act upon any agreement with regard to the making, fixing or collecting of any rate for fire insurance upon property within this state except in compliance with this act. SECTION 9592-13. Any such agreement may be made and enforced provided the same be not contrary to public policy and is in writing, and prior to its taking effect, a copy thereof be filed with the superintendent of insurance and with each rating bureau of which any of the parties thereto shall be a member or subscriber. SECTION 9592-14. The superintendent of insurance may, after due notice and hearing, upon complaint or upon his own motion, make an order disapproving any such agreement. No such agreement shall be in force, nor 153 shall any rights be based thereon, after service of a copy of such order upon each of the parties to such agreement, and upon each bureau with which such agreement is re- quired to be filed. Service may be made by mail and shall be completed upon the expiration of a reasonable time for transmission fixed in such order. Any person in in- terest being dissatisfied with the order or refusal to make an order by the superintendent of insurance may within thirty days from the issuance of such order or refusal and notice thereof commence an action in the supreme court against the superintendent of insurance as defendant to review any action of said superintendent either in making | or refusing to make any such order and such cause shall thereupon proceed as herein provided in section 9592-11. SECTION 9592-15. This-act shall not apply to mutual protective associations organized under the provisions of section 9593 of the General Code. SECTION 9592-16. Any violation of the provisions of this act by any fire insurance company or other insurer - authorized to effect insurance against the risk of loss or damage by fire or lightning in this state, or by any rate making bureau or officer or agent of either shall be a mis- ‘demeanor and on conviction shall be punishable by.a fine of not less than twenty-five dollars nor more than two hundred dollars for each such violation, and in the event any insurer, insurance company, individual or rating bureau shall be found giulty of violation of the provisions of this act and subjected to the penalty herein provided and the same shall not be paid within thirty days the super- intendent of insurance may in his discretion revoke the license of such insurer or insurance company and suspend the certificate of authority of such person or rating bureau until such fine has been paid. SECTION 9592-17. It shall be unlawful for any insurer to pay, either directly or indirectly, any fine assessed against any of its agents, solicitors or other representatives under this act. SECTION 9592-18. Nothing herein shall be construed as repealing or affecting the provisions of sections 9563 and 9564 of the General Code. Act does not apply to mutual pro- tective asso- ciations, Violation of act a mis- demeanor; penalty. Insurer shall not pay fine of agents, CHAPTER, MUTUAL PROTECTIVE. SECTION SECTION ; 9593. Mutual protection associations. 9604. Mutual associations may organize as 9594. Certificate of incorporation, companies. 9595. Filing of certificate. 9605. Certificate of superintendent of in- 9596. Directors and _ officers. surance, 9597. Powers of association. 9606. How rights of policyholders affected. 9598. Constitution and by-laws. 9607. Policies. and by-laws, 9599. What shall be filed with superin- 9607-1-80. Law relating to ‘mutual insurance tendent of insurance. \ companies. 9600. Renewal of certificate. 9507-31-87. Domestic mutual fire ~ insurance 9602. Annual statement. companies may make special de- 9608. Failure to make statement. posit. Organization of ‘mutual SECTION 9593. Any number of persons of lawful protective age, not less than ten in number, residents of this state, ociations woes } z é s and scope of OF an adjoining state and owning insurable property in this business, - state, may associate themselves together for the purpose of insuring each other against loss by fire and lightning, cyclones, tornadoes or wind storms, hail storms and ex- plosions from gas, on property in this state, and also assess upon and collect from each other such sums of money, from time to time, as are necessary to pay losses which occur by fire and lightning, cyclones, tornadoes, wind storms, hail storms and explosions from gas to any mem- ber of such association. The assessment and collection of such sums of money shall be regulated by the constitution and by-laws of the association, which shall require such assessments to be made directly and specifically upon the members and to be paid direttly and specifically by them and not out of any fund deposited with the association or other trustee in anticipation of assessments or in any other manner except that any such association may borrow money for the payment of losses and expenses, such loans not to be made for a longer period than the colfection of their next assessment; and such association may also ac- cumulate a surplus from its assessments not exceeding two dollars on each one thousand dollars of insurance in force, such surplus to be used in paying losses and expenses that may occur and if invested to be under the provisions of sections ninety-five hundred and eighteen and ninety-five hundred and nineteen of the General Code. Such associa- tions may only insure farm buildings, detached dwellings, schoolhouses, churches, township buildings, grange build- ings, farm implements, farm products, live stock, house- hold goods, furniture, pleasure and utility vehicles, motor vehicles ; steam, gas, gasoline and oil engines; motor trucks, tractors, electric motors, electric appliances, lighting sys- tems and other-property not classed as extra hazardous and such property may be located within or without the limits of any municipality; provided that an association 154 4 Xe Ma 4 155 whose membership is restricted to persons engaged in any particular trade or occupation and its insurance confined in any particular kind or description of property may insure property classed as extra hazardous and located in any county or counties in this state; and an association whose membership is so restricted and whose insurance is so confined and which insures property classed as extra haz- ardous as herein provided may also accumulate from its assessments a surplus not exceeding the average yearly losses\and expenses of the association as shown by the reports of the association to the department of insurance of the state of Ohio for the preceding three years, such surplus to be used in paying losses and expenses that may - occur and if invested to be under the provisions of sections ninety-five hundred and eighteen and ninety-five hundred and nineteen of the General Code. Section’ 9594. Such person shall make and sub- scribe a certificate setting forth therein: 1. The name by which the association is to be known. 2. The place which shall be regarded as its center or business office. 3. The object of the association, which shall only be one or more of the objects set forth in the preceding sec- tion, and to enforce any contract by them entered into whereby the parties thereto agree to be assessed specific- ally for incidental purposes and for the payment of losses which occur to its members. The kinds of property pro- posed to be insured and the casualties specified in such preceding section proposed to be insured against, also must be specified in such certificate. (R. S. Sec. 3687.) SECTION 9595. The certificate shall be filed in the office of the secretary of state. A copy thereof, duly cer- tified by him shall be evidence of the existence and due _ incorporation of the association for the purposes therein named. (R. S. Sec. 3688.) SECTION 9596. When such certificate is so filed, and a certified copy thereof forwarded to the association, the persons named therein shall elect their directors, a presi- dent, secretary, treasurer, and such other officers as are necessary, for the complete performance of all the busi- ness and objects of the association, to serve for one year. Such officers thereafter shall be chosen in the manner, and at the time fixed upon in the constitution, but directors shall not be.chosen for a longer period than three years. (R. S. Sec. 3680.) SECTION 9597. The association so organized shall be held to be a body corporate for all such purposes, and may sue and be sued, plead and be impleaded, in all courts of law and‘ equity, but in no instance shall the power to in- sure against losses by fire or tornadoes be exercised to other than members thereof. (R. S. Sec. 3689.) Certificates of incorporation, Filing of certificate. Directors and Officers. Powers of association, Constitution and by-laws. What shall be filed with su- perintendent of insurance. Renewal of certificate. Annual statements. Failure to make state- ment, Mutual asso- ciations may organize ‘as companies. 156 SEcTION 9598. Every stich association shall adopt such constitution and by-laws not inconsistent with the constitution and laws of this state or the United States, as in the judgment of its members best will subserve its inter- ests and purposes. All persons who sign such constitution shall be considered and held to be members of the associa- tion, and be held in law to comply with all of its provisions and requirements. (R. S. Sec. 3690.) Section 9599. Before granting insurance, such as- sociation shall file with the superintendent of insurance a copy of its articles of incorporation duly certified to by the secretary of state, and.a copy of its constitution, by-laws, and forms of certificates of membership or insurance. If the superintendent finds that it was duly organized and has complied with the law, he shall issue to it his cer- tificate reciting such compliance, which certificate shall be the authority of the association to commence business and grant insurance. (R. S. Sec. 3690.) SECTION 9600. Upon filing its annual statement, the superintendent, annually, shall issue a renewal of such certificate to the association if he finds that it has complied with the law. For each such certificate and renewal every association shall pay to the superintendent for the use of the state five dollars. (R.S. Sec. 3690.) SECTION 9602. The president, or vice-president, and secretary of every such association annually on the first day of January, or within thirty days thereafter, shall pre- pare under oath and deposit in te office of the super- intendent of insurance a statement of the condition of such association on the thirty-first day of December then next preceding, exhibiting such facts as are enumerated in section ninety-five hundred and ninety, and applicable to such associations, and such other information necessary to reveal the financial condition of the association, as the superintendent requires in a printed form by him to be sup- plied for that purpose. (R. S. Sec. 3690.) Section 9603. Every such association which fails to make and deposit such statement or to reply to any in- quiry of the superintendent of insurance, shall be subject to a forfeiture of five hundred dollars' and an additional five hundred dollars for every month that it continues thereafter to transact any business of insurance. (R. S. Sec. 3690. ) SEcTION 9604. Any mutual fire insurance association organized under section ninety-five hundred and _ ninety- three, doing business and having the number of policies and amount of insurance in=force and the amount of as- sets required in order to organize a mutual fire insurance company, may reorganize as such mutual fire insurance company in the following manner: The board of trustees of such association shall give notice, by publication in a newspaper of general circulation, and published in the g t a he = S 157 ' county wherein its principal office is situated, at least three consecutive weeks before such application is made, of their intention to so organize, and thereupon make application to the superintendent of insurance respecting their desire to assume the requirements of the laws governing mutual fire insurance companies organized and doing business un- der the laws of this state, setting forth the amounc of in- stnance carried, the number of policies in force, and the amount of its assets and liabilities. (87 v. 88 § 1.) ~Section 9605. If by examination, or otherwise, of the condition of such association, the superintendent of in- surance is satisfied that it possesses the required amount of assets, and the number and amount of policies in force required to organize a mutual fire insurance company, he shall so certify upon a certificate of incorporation, contain- ing the requisite statements required to incorporate a mu- tual fire insurance company, which certificate, after hav- ing been duly executed shall be delivered to the secretary of state, who shall record it and issue his certificate of in- corporation as in other cases for change of name, capital or location. of an incorporated company, charging: only such fees therefor as authorized by law in other cases for change in capital or location of company. (87 v. 88 § 1). SECTION 9606. Thereafter the business of such fire insurance association shall be conducted as and be subject -to all laws governing mutual fire insurance companies. All members thereof shall be members of such reorganized company, to the time of the expiration or cancellation of their policies, and entitled to all the benefits of such, pre- cisely as if original members, without exchanging policies or contracts, and entitled to all the benefits as if original members thereof. (87 v. 88 § 2.) SECTION 9607. After such change in the plan of in- surance by such association, and the organization of such mutual fire insurance company, policies thereafter issued shall be in the name and by the authority of the company, and the policies theretofore in force, and the by-laws, rules and regulations of such association, if not in con- flict with the laws governing mutual fire insurance com- panies, shall remain in full force and effect until they have terminated or been lawfully changed by the company or its board of directors. (87 v. 88 § 3.) MUTUAL FIRE INSURANCE COMPANIES. DOMESTIC, FOREIGN AND ALIEN. _ SECTION 9607-1. In this act, unless the context other- wise requires, “company” includes corporations and associa- tions. “Domestic” designates companies organized under the laws of this state. “Foreign” designates companies or- ganized under the laws of another state or territory. “Alien” designates companies organized under the laws of any country other than the United States, or some Certificate of superint.nuent of insurance. How rights ot policyholders affected. Policies and by-laws. Terms relating to corporations and associa- tions defined. Organization of mutual companies; kinds of in- surance allowed to transact. Fire, Liability. Disability. Automobile. Steam boiler, 158 state, province or territory thereof. The terms “surplus” or “net assets” shall be deemed to mean funds and assets invested as required or permitted by the laws of the state, territory or district where the company is organized, in ex- cess of all liabilities including unearned premium reserve, but excluding from such assets all contingent liabilities of policy holders or members. - SECTION 9607-2. A domestic mutual company may be organized by a number of persons, not less than twenty, to carry on the business of mutual insurance and to reinsure and to accept reinsurance as authorized by law and its article of incorporation. Such persons shall execute articles of in- corporation which, if not inconsistent with the constitution and laws of this state and of the United States, shall be ap- proved by the attorney general and secretary of state, and such articles and the certificate of approval by the attorney general shall be recorded by the secretary of state who shall deposit a copy thereof with the superintendent of insurance. A mutual or a stock insurance company may transact only the first kind of insurance, or may transact such as it may elect of the other kinds of insurance, following: I. Fire insurance. Against loss or damage to prop- erty and loss of use and occupancy by fire, lightning, hail, tempest, flood,.earthquake, frost or snow, explosion, fire ensuing, and explosion, no fire ensuing, except explosion by steam boiler or flywheels; against loss or damage by water caused by the breakage or leakage of sprinklers, pumps or other apparatus, water pipes, plumbing, or their fixtures, erected for extinguishing fires, and against acciden- tal injury to such sprinklers, pumps, other apparatus, water pipes, plumbing or fixtures ; against the risks of inland trans- portation and navigation; upon automobiles, whether sta- tionary or operated under their own power, against loss or damage by any of the causes or risks specified in this sub- section, including also transportation, collision, liability for damage to property resulting from owning, maintaining or using automobiles and including burglary and theft, but not including loss or damage by risk of bodily injury to the person. . 2. Liability Insurance. Against loss, expense or li- ability by risk of bodily injury or death by accident, dis- ability, sickness or disease suffered by others for which the insured may be liable or have assumed liability not includ- ing workmen’s compensation. 3. Disability Insurance. Against bodily injury or death by accident, and disability by sickness. 4. Automobile Insurance. Against loss, expense and liability resulting from the ownership, maintenance or use of any automobile or other vehicle, provided no policies shall be issued under this subsection against the hazard of fire alone. 5. Steam Boiler Insurance. Against loss or liability to persons or property resulting from explosions or accidents i to boilers, containers, pipes, engines, flywheels, elevators and machinery in connection therewith and against loss of use and occupancy caused thereby and to make inspection and issue certificates of inspection thereon. 6. Use and Occupancy Insurance. Against loss from interruption of trade or business which may be the result ‘of any accident or casualty. 7. Miscellaneous Insurance. Against loss or damage by any hazard upon any risk not provided for in this section, which is not prohibited by statute or at common law from being the subject of insurance, excepting life insurance. SECTION 9607-3. The company shall have legal exist- ence subject to the limitations prescribed in this act, from the filing of its articles of incorporation with the secretary of state, and the original incorporators shall have power to fix and call the first meeting and adopt by-laws which thereupon shall be filed with the superintendent of insur- ance, and to elect the first officers and directors who shall continue in office until the first annual meeting of the members. SECTION 9607-4. No such domestic company shall so- licit applications for insurance, or accept premiums, until it has filed with the superintendent of insurance its bond (with sureties) in the sum of ten thousand dollars, conditioned upon the faithful accounting for all funds and property which it may receive or possess, nor until it has procured the certificate of the superintendent of insurance approv- ing such bond and the sureties thereon. The premiums re- ceived on subscriptions for insurance shall be held by the company in trust for the respective subscribers until poli- cies of insurance are issued to them. SECTION 9607-5. No. such domestic company shall issue policies or effect insurance until the superintendent of insurance has, by his license, authorized it to do so; nor shall such license be issued or renewed unless the company shall comply, as to each kind of insurance which it shall effect, with the following conditions: 1. It shall hold bona fide applications for insurance upon which it shall issue simultaneously, or it shall have in force, at least twenty policies to at least twenty members for the same kind of insurance upon not less than one hun- dred separate risks, each within the maximum single risk described herein. 2. “The maximum single risk” shall not exceed twenty per cent. of the admitted assets or three times the average risk or one per cent. of the insurance in force, whichever is the greater, any reinsurance taking effect simultaneously with the policy being deducted in determining the maximum single risk. 3. It shall have collected a premium upon each applica- tion, which premium shall be held in cash or securities in which insurance companies are authorized to invest and Use and occupancy. Miscellaneous, Legal exist- ence of com- pany; power of original in- corporators. Bond pre- requisite to solicitation tor insurance or acceptance of premiums. Conditions upon which license shall issue. Every policy- holder a member. Cash advance premiums, How by-laws amended. Maximum premium; when policy may be issued for cash premium. Stipulation or provision as to contingent liability. Investment of assets. Money ad- vanced not a liability against com- pany; ex- ception, 160 shall be equal, in case of fire insurance to not less than twice the maximum single risk assumed subject to one fire nor less than ten thousand dollars, and in any other kind of insurance to not less than five times the maximum single risk assumed. SECTION 9607-6. Except as otherwise provided by law, every policy-holder of a domestic mutual company shall be a member while his policy is in force, and entitled to one vote and no more. SECTION 9607-7.' A domestic mutual company may, in its articles of incorporation, or in its by-laws, provide for a, cash premium payable in advance and a contingent liability of the policy-holder of not less than one, nor more than ten times the cash premium in each policy, and may fur- ther provide for policies not exceeding on any one risk five per cent of the company’s assets, to be issued for cash - premiums payable in advance without contingent liability of the policy-holder. SECTION 9607-8. The by-laws of. such company may be amended at any meeting of the board of directors, but such amendment shall not become effective unless and until the same is approved by the superintendent of insurance. SECTION 9607-9. The maximum premium payable by any member, may be a cash premium and an additional con- tingent premium not less than the cash premium, or may be solely a cash premium. No policy shall be issued for a cash premium without an additional contingent premium unless the company has a surplus which is not less in amount than the capital stock required of domestic stock insurance companies transacting the same kind of insurance. SECTION 9607-10. Every such mutual company shall set forth in every insurance policy which it issues upon a cash premium and contingent liability, either a stipulation of the contingent liability of the policy-holder or the —pro- vision in the article of incorporation or by-laws fixing the contingent hability. Such contingent liability shall cease with the expiration of the time for which a cash premium has been paid in advance, except for liability incurred dur- ing said time. SECTION 9607-11.. No domestic mutual company shall invest any of its assets otherwise than as provided for the investment of assets of stock fire insurance companies, and in computing the assets, liabilities and surplus of such com- pany, no contingent liability or unauthorized investments shall be considered. SECTION 9607-12. Any director, officer or member of any domestic mutual insurance company, or any other per- son, may advance to such company any sum or sums of money necessary for the purpose of its business, or to en- able it to comply with any requirement of the law, or as a cash guarantee fund. Such moneys, and such interest ; 161 thereon as may have been agreed upon, not exceeding eight per centum per annum, shall not be a liability or claim against the company, or any of its assets, except as herein provided, and shall be repaid only out of the surplus earn- ings of such company; and, except as otherwise approved and ordered by the superintendent of insurance, no part of the principal thereof shall be repaid until the surplus of the company remaining after such repayment is equal in amount to the principal of the money so advanced. Such advancement and repayment shall be subject to the approval of the superintendent of insurance, provided that this section shall not affect the power to borrow money which any such company possesses under other laws. No commission or promotion expenses shall be paid by the company, in con- nection with the advance of any such money to the com- pany, and the amount of any such unpaid advance shall be reported in each annual statement. SECTION 9607-13. Subsequent to the first calendar year after organization, the expense of management of any such domestic company shall not exceed in any one cal- endar year forty per centum of its premium income in such year; provided that the income on policies issued on the premium note or assessment plan shall be computed ac- cording to the annual basic premium. SECTION 9607-14. Except as otherwise provided by law, any domestic mutual company having a contingent li- ability, which is not possessed of assets above its unearned premiums sufficient for the payment of incurred losses and expenses, shall be deemed to be impaired and shall make an assessment for the amount needed to pay such losses and expenses upon its members liable to assessment, in proportion to and within the limits of their several lia- bilities. SECTION 9607-15. If the impairment be not more than twenty-five per cent. of such company’s reinsurance re- serve fund, computed according to law, the superintendent of insurance may permit it to continue to issue policies for such period as he may designate, not exceeding ninety days. If. such impairment be not restored within the period designated, or exceeds twenty-five per cent. of such rein- surance reserve, it shall be unlawful for the company to issue new policies until such impairment be restored and until authorized by the superintendent of insurance or by “a court in a proper proceeding. SECTION 9607-16. Such company shall cause to be re- _ corded in a book kept for that purpose the order for such assessment, with a statement which shall set forth the condi- tion of the company at the date of the order, the amount of its assets and of its deposit notes or other contingent funds liable to the assessment, the amount which the assessment calls for, and the particular losses or other liabilities which LY.-xop; Expense shall not exceed forty per cent of premium income, When com- pany shall be deemed im-— paired; assess- ment. When impaired company may continue to issue policies. Record of the order of assessment. Liability of policy—holder. Petition to have court ex- amine assess- ment and necessity therefor. Notice to parties in+ terested. Hearing and report, - as he is able, to all persons liable upon said assessment or — 162 it is to provide for. The said record shall be made and signed by the directors who voted for the order, before any part of the assessment is collected, and any person liable to the assessment may inspect arid take a copy of the same. Each policy-holder shall be liable to pay his propor- tional part of any assessments which may be laid by the company in accordance with law and his contract, on ac- count of losses and expenses incurred while he was a member, if he is notified of such assessment within one year after the expiration or cancellation of his policy ; and when an assessment is ordered, the directors shall forthwith cause’ | written notice’ and demand. for payment to be made upon each person subject thereto, by mail or personal service. SECTION 9607-17. If the directors by authority of stat- ute make an assessment or call on the members for money, or vote that there exists a necessity for such assessment, or call, they or any person interested in the company as an ~ officer, policy-holder of (or) creditor may apply to a court — of competent jurisdiction by a petition in the nature of a bill — in equity, praying for the court to examine such assessment — — or call, the necessity therefor, and all matters connected therewith, and to confirm, amend or annul the assessment or call, or to order the same to be made as law and justice may require; but.if an application is made by any party except the company, or a receiver, or the insurance super- intendent, the court may decline to exercise jurisdiction thereof. If the directors unreasonably neglect to make an claim upon the company, any judgment. creditor, or any person holding such claim, or the insurance superintendent, may make application to the court. Upon such applica- tion, if made by the directors, or upon an order of the court, if made by any other person, the directors shall set forth the claims against the company, its assets, and all — other facts and particulars appertaining to the matter. — The court before which such application is filed shall order notice to be given by publication or otherwise to all parties interested, and upon the return thereof shall ex- amine the assessment or call, and the necessity therefor, — and all matters connected therewith. Any parties interested — may appear and be heard thereon. All questions that arise shall be heard and determined as in other equity cases. The application shall be referred to a master who shall — appoint a time and place to hear all parties interested, and — who shall give personal notice thereof in writing to the in- surance superintendent, and through the post-office, so far — j F assessment or call to satisfy an admitted or ascertained : a call. The master shall hear the parties, and report upon the correctness of the assessment or call, and all other mat- —~ ters connected therewith. The court may confirm, amend — or annul the assessment or call, or order one to be made ; and may make such orders and decree as under all the cir- — cumstances justice and equity require. If the assessment — - far tOF or call is altered or amended, or one is ordered to be made, the directors shall forthwith proceed to vote the same in legal form, and the record of such vote shall be set forth in a supplemental bill or answer. When an assessment or call has been so confirmed, ascertained or established, a decree shall be entered which shall be final and conclusive upon the company and all persons liable to the assessment or call, as to the necessity of the same, the authority of the company to make or col- lect the same, the amount thereof, and all formalities con- nected therewith. An assessment or call altered or amended by vote of directors and decree of the court thereon shall be binding upon all parties who would have been liable under it as originally made, and in all legal pro- ceedings shall be held to be such original assessment or call. All such proceedings shall be at the cost of the company and in all cases the court may control the disposition of the funds collected under such proceedings. If the court finds that the net proceeds of any assess- ment or call will not be sufficient to furnish substantial relief to those having claims against the company, it may decree that no assessment shall be collected; and if, upon the application of the insurance superintendent or a member of the company, or of any person interested, the court is of the opinion that further attempts to collect an assessment then partially collected will not benefit those having claims against the company, it may stay the further collection of said assessment. SECTION 9607-18. The trustees or directors of any such company shall be personally liable for any losses upon risks taken after the superintendent of insurance has issued his requisition to restore any deficiency in the assets and be- fore such deficiency is restored. Provided that nothing herein shall be construed to require any mutual fire insur- ance company, now doing business on the premium note plan, to keep on hand any cash reinsurance reserve or funds invested in securities, other than their premium notes, when the premium notes amount in gross to three per centum of the amount at risk by the company. SECTION 9607-19. A foreign mutual company shall be admitted to transact the kinds of insurance authorized by its charter or articles of incorporation to the extent and with the privileges and powers permitted by law to domestic mutual companies when such company shall be solvent and shall transact its business according to the requirements of ‘law applicable to like domestic mutual insurance companies. SECTION 9607-20. An alien mutual company, transact- ing the business of insurance authorized in this act on the mutual plan, in accordance with the laws of the country, _ state or province in which it was organized, may be ad- mitted to transact such business within this state upon com- plying with the laws applicable to it, when its assets — in- Effect of decree. When further collection may be stayed. When trustees or directors personally liable. When. foreign company shall be admitted to transact business. Alien company admitted to do business, when. When license of foreign or alien company may be re- voked. Every domes- tic, foreign or alien company shall contain the word “mutual,” exception. Company hav- ing similar name of another not permitted. Maintenance of unearned premium re- serve. Retaliatory. law shall not apply, when. Laws ap- plicable. Companies and associations not affected by this act. 164 | %) vested according to the laws of the state where its assets are held in the United States, pledged for the payment of its liabilities in the United States — exceed its liabilities in the United States by two hundred thousand dollars. SECTION 9607-21. Whenever the superintendent of in- surance shall find that any foreign or alien mutual company, doing business in this state, does not have the qualifica- tions required of such company for admission to this state, or that it has not complied with the law, he may revoke the license of such company to transact business in this state. SECTION 9607-22. The name of every such domestic, foreign and alien mutual company shall contain the word “mutual.” This section shall not apply to ahy company now licensed to do business in this state, whose name does not now contain the word “mutual,” unless it does now, or hereafter shall, issue policies which are subject to con- tingent liability or assessment. SECTION 9607-23. No such domestic, foreign, or alien _mutual company shall be permitted to transact business if its name is so similar to any name already in use by any company organized or doing business in the United States, as to be confusing or misleading to the public, unless the company whose name is so similar shall consent thereto. The superintendent of insurance and secretary of state shall determine all questions respecting such similarity of names, and if they fail to agree, the attorney general shall deter- mine whether any proposed name may be adopted or used. SECTION 9607-24. Every domestic, foreign and alien mutual company shall maintain an unearned premium re- serve of fifty per centum of the cash premiums received and receivable on unexpired risks and policies running one year or less from date of policy, and a pro rata amount of — ~ all cash premiums received and receivable on all other un- expired risks and policies. SECTION 9607-25. No retaliatory law of this state, relating to insurance companies, shall apply to any such mutual company organized under the laws of any state which has a similar law exempting mutual fire insurance companies from the retaliatory laws of such state. SECTION 9607-26. The laws of this state governing corporations and the laws relating to insurance, to the extent they are now or hereafter may be applicable to any such mutual companies and not in conflict with the provisions of this act, are hereby made specifically applicable to such mutual companies. SECTION 9607-27. This act shall not affect any company now doing business within this state on the premium note plan, nor any mutual protective association now or here- ~ after organized or doing business under the provisions of — Tit. IX, Div., III, Subdiv. II, Chap. 2 of the General Code or amendments thereof, unless such company or associa- tion elects to reorganize under the provisions of this act; provided also that the sections repealed by this act shall remain in force, so far as applicable, to any such company or association not so electing. SECTION 9607-29. Every mutual fire insurance com- pany created by or organized under a general or special law of this state and doing business herein upon or without the premium note plan, which by its policy, by-laws or public statements of its financial affairs claims the benefit of the guarantee fund or the contingent liability of its policyholders as provided for in this act, shall be held as having organized under the laws of this state now in force, and be governed by the portions thereof as applicable to such company. SECTION 9607-30. Any mutual company which neg- lects to make and forward to the superintendent of insur- ance an annual report of its affairs, as required by law, or refuses to allow him free access to its books and papers, and to investigate its financial standing if organized under the laws of this state, shall thereby forfeit its charter, and : the superintendent of insurance shall proceed without delay to bring its affairs to a close. SECTION 9607-31. That any domestic mutual fire in- surance company, for the protection of all its policies, may deposit with the superintendent of insurance of Ohio, securities of the kind hereinafter described, in such sum as shall be necessary to enable such company to transact business in any other state under the laws of said state. SECTION 9607-32. Said superintendent of insurance shall execute his receipt therefor to the depositing com- pany, safely keep such securities as provided by law until same be withdrawn by the depositing company as herein- after provided, and also keep in his office a record in which shall be entered the name of the company so owning and depositing such securities, the name of the debtor, the par value and serial number of each such security, the date of its maturity, and the date of maturity and amount of each installment of interest to become due. SECTION 9607-33. Said securities shall consist of United States bonds, bonds of the state of Ohio or bonds of a county or incorporated city of this state, issued in conformity with law, not estimated above their par value, which, before being deposited, shall be registered by the company in favor of “the superintendent of insurance of the state of Ohio in trust for the benefit and security of all the policy holders of said company.” SECTION 9607-34. Said superintendent of insurance shall collect and pay over to the depositing company the principal and interest on said securities as same mature, What com- panies held organized under laws of this state. Refusal to make report forfeits charter. Deposit of securities to transact business out- side state, Execution of receipt; rec- ord of securi- ties. Securities specified; registration, Collection and deposit of principal and interest, Exchange of securities, Certification under seal, of deposits. ° Examination of securities, annually. Surrender of securities upon termina- tion of liability ; examination of records. 166 but before receiving the proceeds of the principal sum of any deposited security, the company shall substitute securi- ties of the required character equal in amount to those maturing. SECTION 9607-35. Such depositing company at any time may exchange for any securities so deposited other securities of like character which shall be deposited and handled in all respects as said original deposit. SECTION 9607-36. Upon request of the depositing company, said superintendent of insurance shall certify under the seal of his office to the insurance department of any other state, or to any other interested person, to the fact of such deposit, and the amount and description of the securities so on deposit. SECTION 9607-37. Every insurance company having securities deposited in the office of the superintendent, of insurance, may, once during each calendar year, at such proper time as the company may select, cause its securities so deposited to be examined by its president, secretary or other agent whom it may-designate for that purpose. SECTION '9607-38. No part of the securities so de- posited shall be surrendered by said superintendent of in- surance to the depositing company until liability shall have terminated on all policies for whose benefit the securities have been deposited. When liabiltiy on all such policies shall have terminated, the depositing company may apply to said superintendent of insurance for the surrender of the deposited securities, thereupon the president or prin- cipal officer and secretary of the company shall make oath that all liability on such policies has terminated and said superintendent of insurance shall cause an examination to be made of the records and files of the company and if it appear that. liability no longer exists, the superintendent shall surrender such securities to the depositing company. Such superintendent of insurance, ninety (90) days prior to the time of surrendering same, shall advise of the con- templated withdrawal by registered mail addressed to all persons who may have been notified of the fact deposit under section 9607-36 hereof. > or CHAPTER:3: LIVE STOCK. SECTION SECTION 9608. Association for insurance against loss by 9614. Failure to make statement. death of domestic animals. ‘3 9615. Examination. 9609. Certificate of organization. 9616. Applications necessary. § 9610. Certificate to be filed. 9617. When company may commence business. 9611. Election of officers, é 9618. When charter may be forfeited. 9612. Constitution and by-laws. 9619. Bond of secretary and treasurer. 9618. Annual statement. 9620. Directors. SECTION 9608. Any number of persons of lawful age, residents of this state, not less than five, may associate them- selves together for the purpose of becoming a body cor- porate, and insure themselves, and any person becoming a member of such corporation, in accordance with the rules and regulations thereof, against loss from death of domes- tic animals, and assess upon: and collect from each other such sums of money, from time to time, as are necessary to pay losses which occur from the death of such animals to any member of the corporation, and incidental expenses; and may assess upon and collect from each other an amount equal to the average yearly losses and expenses, such aver- age yearly losses and expenses to be based upon the pre- ceding three years, the same to be treated as a surplus; such surplus to be used in paying losses and expenses that may occur, and if invested, to be under the provisions of sections 9518 and 9519 of the General Code. SEcTION 9609. Such persons shall make and subscribe a certificate setting forth therein: 1. The name by which the corporation is to be known. 2. The place which is chosen as its. principal office. 3. The object of the corporation, which shall only be to enable its members to insure each other against loss from death of domestic animals, and to enforce any contract by them entered into, whereby they specifically agree to be assessed for the payment of losses and incidental expenses. 4. An acknowledgment of the signing of such cer- tificate before a notary public, or other officer authorized to take the acknowledgments of deeds and mortgages. (86 C5375: 8-2.) SECTION 9610. Such certificate shall be filed in the office of the secretary of state, and a copy thereof duly certified by such secretary, shall be evidence of the exis- tence and due incorporation of the company for the pur- poses therein named. (86 v. 378 § 3.) SECTION 9611. When such certificate is so filed, and a certified copy thereof, forwarded to the company, the persons named therein shall elect their directors, a presi- dent, secretary, treasurer, and such other officers as are 167 Association for insurance against loss by death of do- mestic animals. Certificate of organization. Certificate to be filed. Election of officers. Constitution and by-laws. Annual statement. Renewal certificate, Failure to make state- ment, Examination. 168 necessary for doing the business and accomplishing the objects of the company, to serve for one year, or until their successors are duly elected and qualified. Such off- cers shall thereafter be elected annually, by the members of the association, at such time as is fixed upon in the constitution. Such company so organized shall not insure against loss by death of domestic animals for. others than members of the company who are bona fide Tesidents of this state. (86 v. 378 § 4.) SECTION 9612. Every such company shall adopt such constitution and by-laws consistent with the constitution and laws of this state and the United States, as in the judgment of its members~ best will subserve its interests and purposes. All persons who obtain-insurance in the company shall thereby become members thereof, with power to vote at regular meetings of members, upon all subjects, and also be held, in law, to comply with all the provisions and requirements of the company. (86 v. 378 § 5.) SECTION 9613. The president, or vice-president, and secretary of such company, annually on the first day of January, or within thirty days thereafter shall prepare, under oath, and deposit in the office of the superintendent of insurance, a statement of the condition of the company on the thirty-first day of December then next preceding, ex- - hibiting such facts as are enumerated in section ninety- five hundred and ninety, applicable to such companies, and such other information as is necessary to reveal the finan- cial condition and general management of the company, — as the superintendent requires in a printed form, to be by him supplied for that purpose. Upon filing its annual statement, the superintendent shall annually issue a renewal certificate to such company, if he finds the company has complied with the law. For filing each such annual statement and for each certificate and renewal certificate, every such company shall pay to — the superintendent for the use of the state, five dollars to cover the cost of filing annual statement and fee for issuing such certificate. SecTION 9614. Any such company failing to make and deposit such statement, or to reply to any inquiry of the superintendent of insurance, shall be subject to a for- feiture of five hundred dollars, and an additional five hun- dred dollars for every month it thereafter transacts any business of insurance, and shall forfeit its right to do the © business contemplated by this chapter. The superintendent by proceedings in quo warranto shall enforce such for- feiture. (86 v. 378 § 5.) SECTION 9615. The superintendent of insurance, whenever he deems it advisable, may cause an examination of the affairs of such company to be made by one or more disinterested persons, at the expense of the company, the expense not to exceed five dollars per day for each person ~ eee ee ee ne pe ee a ee a 169 employed. If upon such examination, it appears that it is exercising powers or franchises contrary to law, the su- perintendent shall institute proceedings in quo warranto against the company, and if it be found, in such proceed- ings that it has exercised powers or franchise contrary to law, a forfeiture of its right to do business shall be declared. (86 v. 379 § 6.) SEcTION 9616. No company organized under this chapter shall issue any certificate or policy of insurance until bona fide applications for insurance to the amount of fifty thousand dollars have been filed with the secretary of the company, and a statement of such fact sworn to by the secretary and president, filed with and approved by the su- perintendent of insurance. The treasurer of such compan shall not receive money, as treasurer, until he has filed .wit the superintendent his bond, payable to the state of Ohio, for the benefit of the members of such company, in the sum of ten thousand dollars, with security, to be approved by the superintendent. Such bond shall be conditioned for the faithful application of all money coming into his hands as treasurer. (86 v. 379 § 7.) SEcTION 9617. When the statement of the secretary and president, and the bond of the treasurer required by the preceding section, are filed and approved by the super- intendent of insurance, he shall issue, to such company, his certificate, certifying that fact, and such certificate shall constitute the authority of the company to commence busi- ness. (86 v. 379 § 8.) SECTION 9618. Should the amount at risk in such com- pany be reduced below fifty thousand dollars, it shall issue no more certificates or policies of insurance until bona fide applications, sufficient to restore the insurance to such amount have been secured, and a sworn statement of that fact is filed with and approved by the superintendent of insurance, and by him certified to the company. If such company fails to restore such amount, for the period of six months, it shall forfeit its right to do business. When its liabilities exceed three per cent of the amount of risk in force, as determined by the last preceding assessment, suchc ompany shall be deemed to be insolvent, and to have forfeited its charter. Such forfeiture shall be enforced by the superintendent of insurance by proceedings in quo war- ranto. (86 v. 380 § 9.) SECTION 9619. The treasurer and secretary of such companies shall give bond for the faithful performance of their duties, to the directors or trustees thereof, in such sum and with such security as are prescribed in the by-laws of the company, the security to be approved by its directors or trustees. (86 v. 380 § 10.) , SECTION 9620. The directors or trustees of such com- pany before qualified, shall take an oath, to be administered by any officer authorized to take acknowledgments of deeds, faithfully to perform their official duties. (86 v. 380 § 11.) Applications necessary. When company may commence business. When charter may be for- feited. Bond of sec- retary and treasurer, Directors. CREDIT GUARANTY. SECTION SECTION 9621. Organization. 9628. May purchase certain accounts. 9622. Capital stock. - 9629. Annual statements. 9623. Increase of capital stock. 9630, Companies of other states. 9624. Investment of capital. 9631. When company of other state exempted 9625. Certificate and authority to do business. from making deposit. 9626. Deposits, 9627. Powers. Organization. = Capital stock. Increase of capital stock. Investment of capital. Certificate and authority to do business. 9632. Forfeiture of right to do business, 9633. Examination. SECTION 9621. Any number of persons, not less than five may associate and form a company to guarantee and indemnify merchants, manufacturers, traders and those en- gaged in business, and giving credit, from loss and damage by reason of giving and extending credit to their customers and those dealing with them, by making, acknowledging and filing articles of incorporation pursuant to, and by comply- ing with sections ninety-three hundred and forty, ninety- three hundred and forty-one and ninety-three hundred and forty-two. (95 v. 345 § 2.) SECTION 9622. No such company shall be organized’ with a less capital than one hundred thousand dollars, the whole of which, before proceeding to business, shall be paid in and invested in treasury notes, in stocks or bonds of the United States, in stocks or bonds of the state of Ohio, or a municipality or county thereof, or in mortgages on unin- cumbered real estate within this state, worth double the amount loaned thereon at the time the loan is made. (95 v. 345 § 3.) SECTION 9623. Such company may increase its capital stock as provided in section’ ninety-three hundred and forty-five. (95 v. 345 § 4.) SECTION 9624. Such company may invest its capital stock and change such investment as provided in section ninety-three hundred and forty-six. But it shall not com- mence business until it has made the deposit of securities required by such section, which shall be held and con- trolled by the superintendent of insurance for the purpose and in the manner provided in sections ninety-three hundred and forty-six, ninety-three hundred and forty-seven and ninety-three hundred and forty-eight. (95 v. 345 § 5.) SECTION 9625. When such company is fully organ- ized and has deposited the requisite amount of securities as hereinbefore provided, together with a certified copy of the papers required by this chapter, unless he finds the name assumed by it so nearly similar to that of another company organized in this state as to lead to uncertainty or confusion on the part of the public, the superintendent of insurance shall furnish such company with a certificate of such deposit and of authority to transact business. (95 v. 345 § 6.) ro 171 SecTIoN 9626. No such company shall undertake any business or risk until it also deposits with the superin- tendent of insurance, for the benefit and security of its policy-holders, fifty thousand dollars in bonds of the United States, the state of Ohio, or a county, township, city or other municipality in this state, which he shall not receive at more than their par value, but which may be exchanged from time to time, for other securities, and so long as it continues solvent and complies with the laws of this state, he shall permit it to collect the interest on such deposits. (95 v. 345 § 7.) SECTION 9627. When such company has complied with all of the foregoing requirements, it may agree to pay to merchants, manufacturers, dealers and persons engaged in business and giving credit, the debt or debts, or such part thereof as is agreed upon,.or which may be thereafter owing to them; and to indemnify them from loss on account thereof in such an amount or per cent as is agreed upon, and to charge and receive therefor such sum or per cent as the consideration for such an agreement, guarantee or indemnity, as is agreed upon between it and the person guaranteed or indenmified, and to buy, hold, own and take an assignment of any claims, accounts and demands so guaranteed, and to hold, own and collect them, and enforce collection thereof by action the same as the original holder and owner might or could do. Such corporation may also guarantee the payment of money for personal services under contract of hiring. (95 v. 345 § 7.) SECTION 9628. Such corporation may use its capital stock, or funds accumulated in the course of its business to purchase or pay for any claim or demand, the payment of which it has guaranteed, or against the loss of which it has indemnified the holder. Such of its capital stock or ac- cumulated funds as are not so used shall be vested in the same classes of securities in which the deposit to be made with the superintendent of insurance is required to be in- vested. But when on account of losses or otherwise, the amount of its funds falls below such sum as hereinbefore is required to be deposited, no further guaranty of indem- nity shall be issued until the deficiency has been made good. (95 v. 345 § 7.) SECTION 9629. The president or vice-president of each company organized under this chapter, or under the laws of another state, or the general manager for the United States of a company organized ‘for like purposes under the laws of a foreign government, and doing business in this state, annually, on the first day of January, or within thirty days thereafter, shall prepare under oath and deposit in the office of the superintendent of insurance a statement of the condition of such company on the thirty-first day of December then next preceding, exhibiting the following facts and items, in the following form: Deposits. Powers. May purchase certain ac- counts. Annual statement. 172 First. The amount of the capital stock of the com- pany, specifying the amount paid and unpaid. Second. The property or assets held by the company specifying: t. The value of the real estate ae by it, where it is situated, and the value of the buildings thereon. 2. The amount of cash on hand and deposited in banks to the credit of the company, specifying in what banks it is deposited. 3. The amount of cash in the hands of agents and in the course of transmissions, 4. The amount of loans secured by bonds and mort- gages which are first liens on real estate and on which there is less than one year’s interest due. 5. The amount of loans on which interest-has not been paid within one year. 6. The amount due the company on which judgments have been obtained, and the cash value thereof. 7. The amount of stocks in this state, the United States, of any city in this state, and of any other stocks owned by the company, specifying the amount, number of shares, and the. par and market values of each kind of stocks. 8. The amount of stock held as collateral security for loans, with the amount loaned on, and the par and market values of each kind of stock. 9g. The amount of unpaid assessments on stock, pre- mium notes or contingent liabilities. 10. The amount of interest due and unpaid, and the amount of interest accrued but not due. 11. The amount of premium notes or contingent lia- bilities on which policies or bonds of guaranty or indem- nity are issued. 12. The number of policies or bonds of ase or indemnity in force. 13. The amount of premiums received thereon. 14. The amount and description of all other assets. 15. The amount guaranteed under all policies in force. Third. The liabilities of the company, specifying : 1. The amount of losses due and unpaid. 2. The amount of claims for losses resisted by the company. 3. Gross losses-in process of adjustment or in sus- pense, including all reported and supposed losses. 4. The amount of dividends declared and due and_ unpaid. : : 5. The amount of dividends, either cash or ‘scrip, declared, but not due. 6. The amount of money borrowed, and the security © for their payment. . 7. The amount of all other existing claims against the company. Fourth. The income of the company during the pre- ceding year, specifying: ars lee ae, oN TER TS oe eee 173 1. The amount of cash premiums received. 2. The amount of notes or contingent assets received for premiums. 3. The amount of interest money received. 4. The amount of income received from other sources. Fifth. The expenditure during the preceding year, specifying : 5 I. The amount of losses paid during the year, stating how much thereof accrued prior to and how much after the date of the preceding statement, and the amount at which losses were estimated therein. 2. The amount of dividends paid during the year. 3. The amount of expenses paid during the year, in- cluding commissions and fees to agents and officers of the company. 4. The amount paid for taxes. 5. The amount of all payments and expenditures. 6. The amount of scrip dividend declared. (95 v. 346 § 8.) SECTION 9630. Any corporation, company or associa- tion organized under the laws of another state of the United States or of a foreign government to transact a like business as that hereinbefore provided for, may be admitted and licensed to do business in ‘this state. As a condition precedent to being admitted, and transacting business in this state, it shall deposit with the superintendent of in- surance the following: 1. A certified copy of its charter or articles of incor- poration ; 2. If the applicant be a corporation, company or as- sociation organized under the laws of another state of the United States, a certificate from the insurance commission, commissioner or superintendent of insurance of its own state showing its authority to do such business, also a cer- tificate from such officer that corporations, companies or associations of this state engaged in like business, upon com- plying with the laws of such state, are legally entitled to do business therein; 3. A statement under oath of its president and sec- retary, or like officers, or of the general manager for the United States of a company organized under the laws of a foreign government, in the form herein provided for, of its business for the preceding year; 4. A copy of its policy, bond or guaranty, application and by-laws; 5. If the applicant be a corporation, company or as- sociation organized under the laws of another state of the United States, a certificate from the insurance commis- sioner, superintendent of insurance or other proper officer of its own state, that such company has invested at least one hundred thousand dollars of its assets in the interest paying bonds or stocks of the United States or of this state, . or of some other state of the United States, of the market Companies of other states, When company of other state exempted from making deposit. Forfeiture of right to do business, Examination. 17a? cae are value of one hundred thousand dollars in the city of New York, or in bonds and mortgages on unincumbered real estate in this state, or in the state under the laws of which ii is organized, of at least double the value of the amount loaned thereon, that such securities are held under the laws of such state by such officer for the benefit of all ~ its policy, -bond or guaranty holders, and also stating the character of the securities held by such officer and their value; 6. A duly certified copy of the resolution of its board- of directors or authority, duly acknowledged before a no- ~ tary public by the general manager for the United States cf a company organized under the laws of a foreign gov- ernment, appointing an attorney in this state upon whom service of summons or other process in all actions begun in this state may be made. (95 v. 348 § 9.) ‘SECTION 9631. No deposit in this state shall be re- quired of any corporation, company or association of an- other state, if it has made the deposit in its own State, re- ferred to in the preceding section, and has filed with the superintendent of insurance of this state the certificate mentioned in that section, as evidence of such deposit. But a corporation.doing a credit guaranty business in this state, which is incorporated by or organized under the laws of a foreign government, shall make the deposit with the su- perintendent of insurance of such securities to the amount and for the purpose required by sections ninety-five hun- dred and sixty-five and ninety-five hundred and sixty-six. (95 v. 349 § I0.) SECTION 9632. A corporation so organized, or doing business in this state under the foregoing provisions, which fails or refuses to file a statement or report, shall thereby forfeit its right to do business, which forfeiture the su- perintendent of insurance shall enforce by proceedings in quo warranto; and upon his written request the attorney general of the state shall institute such proceedings. (95 v. 349 § 11.) SECTION 9633. Such corporation, association or com- pany shall be subject to examination by the superintendent of insurance under and pursuant to the provisions of the laws of this state relative to the examiners of life in- surance companies. (95 v. 349 § 12.) - abies fore BURGLARY AND ROBBERY (Insurance), SECTION : SECTION 9634, License. 9639. Liability of policyholders. ; 9635. Requisites for beginning business. 9640. Appointment of attorney and service of 9636. ieee to be filed with superintendent process, oe ahd pete 9641. Annual statements. 9637. When may begin to do business. : fEDrity, 9688. Chapanter of business to be conducted in pea2, Rev ecation of ait ay this state. SECTION 9634. An insurance company organized or in- corporated on the mutual plan under the laws of this or any other ‘state for the purpose of insuring against loss or damage from burglary and robbery or attempt thereat, and securing against the loss of money and securities in course of transportation shalt be authorized, admitted and licensed to do business in this state as hereinafter provided. (94 v. 350 § 1.) SECTION 9635. Before such company may transact business in this state, except to solicit and receive applica- tions for insurance and premiums, or parts thereof, as hereinafter provided, it shall have in force five hundred or more ‘policies on which premiums are paid in cash, or evidenced by the written contracts of the policy-holders, on which not less than one-fifth of the amount has been paid in cash. The cash and contracts for premiums shall amount in the aggregate to a sum not less than one hundred thou- sand dollars. The premium contracts so held shall con- stitute a part of the valid assets of the company. (94 v. 3518 2.) SECTION 9636. Every such company, association or partnership shall also file a certified copy of its charter, articles of incorporation or deed of settlement, together with a statement under the oath of the president or vice- president and secretary of the company for which he or they act, containing its name, the place where located, a detailed statement of its assets, the number of its policy-holders, the aggregate amount of premium contracts, the amount of cash on hand, in bank, or in the hands of agents, the amount of real estate, and how it is encumbered by mortgage, the number of shares of stock of every kind owned by the company, its par and market value, amount loaned on bond and mortgage, the amount loaned on other securities, and the kind and amount loaned on each, and the estimated value of the whole amount of such securities, and other assets or property of the company; also, its indebtedness, the amount of losses adjusted and-unpaid, the amount in- curred and in process of adjustment, the amount resisted by the company as illegal and fraudulent, and all other claims existing against the company; and for a company organized under the laws of another state, a copy also of 175 License. Requisites for beginning business. Papers to be filed with su- perintendent of insurance When may be- in to do usiness. Character of business to be conducted in this state, Liability of policyholders. aanei erie nt ot attorney and service: of process. 176 the last annual report, if any, made under any law of such state. (94 v. 351 § 3.) SECTION 9637. No agent shall be allowed to transact business for such company whose reinsurance reserve, as required herein is impaired to the extent of twenty per cent thereof, while such deficiency continues, nor shall any agent act for any company or companies hereinbefore re- ferred to, directly or indirectly, in taking risks or trans- acting the business of burglary and robbery insurance or the insurance of the safe shipment of money and securities, without procuring from the superintendent of insurance a certificate of authority, stating that such company has com- plied with all requirements of law, which apply to such companies. As to a company organized under the laws of another state there shall be added the name of the at- torney appointed to act for it. (94 v. 351 § 3.) SECTION 9638. Such a company organized, admitted and licensed to transact business in this state, shall confine its line of business to that stated in the first section of this chapter, and within this state, to banks, bankers, loan com- panies, trust companies, city and county treasurers, and not issue any policy to any person, firm or corporation therein, other than banks, bankers, loan companies, trust companies, city and county treasurers, Every such com- pany shall set aside a reinsurance reserve of fifty per cent of its premiums for unexpired term, whether collected in cash or represented by the obligations of the policy-holders, as written in its policies. (94 v. 352 § 4.) SECTION 9639. Policy-holders of a company organized and admitted to transact such business in this state shall be liable to pay the membership fee and premium on their in- surance as paid or contracted to be paid at the time the policy is taken out, but not for any further or other assess- ments or claims on the part of the company or its policy- holders. The membership fees and premiums agreed upon may be collected in cash at the time the policy is issued or evidenced by written obligation of the policy-holder, as agreed upon by him and the company. Such payment or obligation shall be the limit of the liability of the policy- holder to the company for premium on his insurance. (94 v. 352 § 5.) SECTION 9640. No insurance company, association or partnership incorporated by or organized under the laws of another state of the United States for any of the pur- poses hereinbefore specified, directly or indirectly shall take risks or transact any business of insurance in this state by any agent therein, until it appoints the superintendent of insurance as an attorney on whom process of law can be served, and files in his office a written instrument duly signed and sealed, certifying such appointment. Any proc- ess issued by a court of record in this state, and served upon such attorney by the proper officer of the county in , ane ee ee we ee, ey ‘ } \ ae aa a ee we oe Ea a ee 177 which he resides or is found, shall be a sufficient service of the process upon such company. (94 v. 352 § 6.) SEcTION 9641. The statement and evidence of mem- bership, assets and investments hereinbefore required shall be renewed from year to year in such manner and form as required by the superintendent of insurance with an ad- ditional statement of the amount of premiums received in this state during the preceding year, so long as such agency continues. The superintendent, on being satisfied that the membership, assets, securities and investments remain se- cure, as hereinbefore mentioned, shall furnish such renewal. (94 v. 352 § 7.) SECTION 9642. If a corporation organized as herein- before provided, and doing business in this state, violates any of the provisions of this chapter, the superintendent of insurance shall revoke its authority to do business in this state, and no renewal of authority shall be granted to it for a period of one year after such revocation. (94 v. 352 § 7.) 12: -3,-D, Annual statements. Revocation of authority. OG gk ts 7 CL eee SALVAGE. SECTION ; SECTION 9873. Powers. 9877. Quarterly statement to be filed by insur- ; é 9874. Subordinate to fire department. ance companies. 9875. Regulations. 9878. Written demand for statement. 9876. Biennial meetings; assessments. 9879. Failure to file’ statement. Powers. SECTION 9873. Corporstans not for profit, may be organized under the general corporation laws of this. state, and as hereinafter provided for the purpose of discovering and preventing fires and of saving property and life from conflagration, with power to provide a patrol of men and a competent person to act as superintendent to discover and prevent fires, with suitable apparatus and equipment to save and preserve property and life at and after fires. To enable them so to act with promptness and efficiency, the superintendent and patrol may enter a building at any time for the purpose of inspection and any building on fire or which is exposed to or in danger of taking fire from other burning buildings, for the purpose of protecting and saving 4 such building and the property therein, or of removing the property or a part thereof during the fire or from: the ruins after the fire. (95 v. 324 § 1.) Subordinate SECTION 9874. Nothing in this chapter shall in any partment. degree lessen, impair or interfere with the powers, privi- leges, duties or authority of a regular or volunteer fire de- partment organized and maintained by public authority within the state. Such superintendent and the members of the patrol, while on duty at a fire, shall be subordinate to and under the control of the public authority having charge of the extinguishment and prevention of fires. No act of the superintendent or the patrol of men shall justify an owner of a bpulcing: or property in abandoning it. (95 v. 324 § 1.) Regulations, SECTION 9875. The articles of incorporation of such - a corporation shall set forth the municipality or other sub- division of the state within which it is to prosecute its busi- ness, and thereafter it shall be confined to such munici- = pality or other subdivision. It may elect officers and make needful by-laws not contrary to the provisions of the con- stitution or laws of this state or of the United States. Ex- cept as in this chapter provided, such company shall be subject to the general corporation-laws of, this state (95 v. 324 § 2.) ape ra SECTION .9876. Before such corporation may begin ments. ~ business, and in the month of March of every second year thereafter, a meeting thereof shall be held, of which ten days’ previous notice shall be given by inserting it in at least two newspapers published or of general circulation in the municipality or other subdivision in which the corporation Ver 178 we 179 is organized and established, if there be such newspapers, and if not, by posting notices thereof, at which meeting each insurance company, corporation, association, under- writer, person or persons doing a fire insurance business in such municipality or other subdivision, whether members of such corporation or not, may be represented and have one vote. A majority of the whole number so represented may decide upon the question of sustaining the fire patrol organized by the corporation, and shall fix the maximum amount of expenses which may be incurred therefor during the fiscal years next to ensue and until the next meeting, which in no case shall exceed two per cent of the aggregate premiums returned as received. Such amount, or so much thereof as is necessary, may be assessed upon all insurance companies, corporations, underwriters, agents, person or persons who assume risks and accept premiums for fire in-_— surance in such municipality or other sub-division, whether members of the corporation or not, in proportion to the several amounts of premiums returned as received by each. Such assessments shall be collectible by and in the name of the corporation in any court in this state having juris- diction thereof in such manner and at such time or times as it determines. (95 v. 325 § 3.) SECTION 9877. To insure the collection of such assess- ments, provide for the payment of persons employed by the corporation, maintain suitable rooms therefor and for the acquisitions of such real and personal property as is neces- sary, all which is to be determined at the regular meetings, the corporation may require a statement to be furnished quarterly by all insurance companies, corporations, associa- _tions, underwriters, agents or persons of the aggregate emount of premiums received by each for insuring property in the municipality or subdivision where the corporation is organized and established, for and during the three months next preceding the thirty-first day of March, the thirtieth day of June, the thirtieth day of September and the thirty- first day of December of each year. Such statement shall _ be sworn to by the president and secretary of the corpora- tion or association, or by the agent or person so acting or effecting such insurance in the municipality or subdivision, -and shall be given to the secretary of the corporation created under the provisions of this chapter, within ten days after the first days of April, July, October and January of each year. (95 v. 325 § 4.) SECTION 9878. The treasurer or other appointed off- cer of such a corporation, within.the ten days’ aforesaid, by written or printed demand, signed by him shall require such statement from every insurance company, corporation, : organization, underwriter, agent or person engaged in the business of fire insurance in the municipality or other sub- division where the corporation is organized and established, Such demand may be delivered personally at the office of the insurance company, corporation, association, under- Quarterly statement to be filed by insurance companies. Written de- mand for statement. Failure to file statement. Secret benevo- lent associa- tion, may in- vest reserve funds. May elect trustees to manage funds, Society to fix terms, define duties, etc. 180 writer, agent or person within the municipality or other subdivision, or at the residence of any officer of such cor- poration or association, underwriter, agent or Deere (95 v. 320 § 5.) SecTion 9879. An insurance company, corporation or association, or officer thereof, and an underwriter, agent or person within the municipality or other subdivision in which the corporation is organized and established, engaged in the business of fire insurance, or of assuming risks and accepting premiums therefor, who fails to furnish the state- ment hereinbefore required, shall forfeit for the use of the corporation entitled thereto, the sum of twenty-five dollars for every day he neglects to furnish it, which amount the corporation may recover in any court in the state having jurisdiction thereof. (95 v. 326 § 5.) = RELIGIOUS AND BENEVOLENT. SECTION 10057. A secret benevolent association, or so- ciety incorporated under or by the laws of the state, which has reserve or accumulated funds, or moneys, held by them for the purpose of endowment of the widows, orphans, families, blood relatives or heirs of the members of the society or association, or for purely charitable purposes, may invest such funds or moneys upon interest, but must take securities for the investment upon real or personal prop- erty, or otherwise, as the society or association ‘Geens fit. CR.Ss See; 3706a.) SECTION 10058. Such an association or society may elect a board of trustees, consisting of not less than three members, and entrust to them the right to manage, control, take charge of, invest, collect, demand, receive and deposit all reserves, surplus or accumulated funds or moneys, which the association or society holds from time to time for the purpose of such endowments as are named in the preceding - section. (R. S. Sec. 3796b.) SECTION 10059. Such an association or society by by- law may define and limit the term of office of each of such trustees; define their duties and powers, and also those of the board of trustees; remove either one for good cause, and fill all vacancies occurring in the board. It also shall demand from each of the trustees security for the faith- ful performance of their several duties, as it deems ft cause investments.to be made by them in the name or names of either or all, in which name or names also suit may be brought ; and may empower the trustees to discharge, acquit, and release all claims or demands of the association or so- ciety upon payment thereof. The trustees may sue for a claim or demand, for a loan or investment made by the association or society ; and upon foreclosure of a mortgage held by the association or society for an investment or loan, may purchase and hold any lands, tenement or interest in 181 . pad in fee or otherwise and lease, rent, sell and convey it by deed. (R. S. Sec. 3796c.) SECTION 10060. Such an association or society may sue or be sued, answer or be answered unto, plead or be impleaded in any court in this state. (R. S. Sec. 3796d.) SECTION 10061. Such an association or society may accept and receive any donation or voluntary contribution, collect its assessments, which shall not exceed one-fifth of one per cent of the amount payable at the death of a member; and pay endowments in the mode and to the persons named and provided by its laws but in no case ex- ceeding in the aggregate five thousand dollars on the death of any one member. (R. S. Sec. 3796e.) SECTION 10061-1. That any unincorporated lodge or other subordinate body of any society or order which is duly chartered by its grand lodge or body, may take and hold real estate for its own use and benefit, by lease, pur- , chase, grant, devise, gift or otherwise, and loan its funds and secure the same or any unpaid purchase money by mortgage on otherwise unincorporated real estate, in and by the name and number of said lodge or other subordinate body according to the register of the respective grand lodge or body. The presiding officer of such lodge or other sub- ordinate body, together with the secretary or officer keep- ing the records thereof, may make conveyances or leases of any real estate belonging to such lodge or other sub- ordinate body when authorized by a vote of the members present at a regular meeting held by said lodge or other subordinate body, under the rules and regulations of the lodge or other subordinate body, and not in conflict with the regulations provided by the respective grand lodge or body. All such conveyance or leases shall be in the name of the lodge, attested by the presiding officer and secretary, or other officer in charge of the records, shall have affixed the seal of such lodge or other subordinate body, and any mortgage taken by lodge or other subordinate body in its “name and number may, when paid and satisfied, be released by the presiding officer and secretary or officer keeping the records thereof, attested by the seal of the lodge or other subordinate body. - PROVISIONS RELATING TO CERTAIN CORPO- RATIONS. FIREMEN’S RELIEF. SECTION 10176. An association of members of any regular fire, hose, or hook and ladder company, incorpo- rated for the purpose of affording relief to firemen disabled while on duty, and making donations to indigent, sick fire- men, and to the widows and orphans of deceased firemen, may provide for the election of its directors or trustees at separate elections, to be held by the members in good and Powers con- ferred by law. Powers of society. Rights of lodges, etc. Conveyances, Seal of lodge. Firemen’s relief asso- ciations. Certain pow- ers of such associations, Power to ac- quire and dis~ pose of prop- erty. Farm laborers’ associations. What invest- ment it may make, Must report to attorney- general, 182 regular standing of each fire, hose, or hook and ladder - company who are members of the corporation, and fix the number to be elected by each company. (R. S. Sec. 3850.) _ SECTION 10177. Such corporations may decide what officers they will have, prescribe the manner of their elec- tion, their duties, make regulations for the relief of firemen disabled while on duty, and provide for such entrance fee for members, and such weekly, monthly, or yearly assess- ment upon members, as it deems best. (R. S. Sec. 3851.) SECTION 10178. Such corporation may acquire, hold, enjoy, dispose of, and convey all property, real or personal, which it acquires by purchase, contribution, donation, as- sessment upon its members, or otherwise, for the purpose of carrying out the objects of the corporation, but it shall not acquire or hold property for any other purpose. In order to increase its funds it may loan its money upon bond and mortgage, under such rules and regulations as may be prescribed, and at an annual interest not exceeding six per cent per annum, (R. S. Sec. 3852.) FARM LABORERS, SECTION 10179. No association incorporated for the purpose of promoting the interests of agriculture, and for the relief of distressed farm laborers, or their widows and orphans, whether such widows and orphans are members of the association or not, and for any other charitable pur- pose, shall take or hold real estate, except such as may be actually occupied in the exercise of its legitimate business, or as it acquires in security for or satisfaction of debts justly due it. Real estate so occupied shall not in any case exceed in value the sum of fifty thousand dollars. (R. S. Sec, 3843.) Section 10180. After paying their expenses, such associations shall invest their funds exclusively for the pur- poses mentioned in their articles of incorporation, and may invest them in mortgages upon real estate, or in county, state, or United States securities. In their articles of in- corporation, they may designate the kinds of securities in which their funds shall be invested, in which case no part thereof shall be invested in securities other than those named therein. They shall not make any loan to any of their trus- tees or officers. They may take by gift, subscription, pur- chase, devise, or loan. But no loan shall be taken for a less term than three years nor for a greater term than twenty years, nor to an amount exceeding one hundred thousand dollars, nor at a rate of interest greater than four per cent, payable semi-annually. (R. S. Sec. 3844.) - SEcTION To181. Every such association annually shall make, and transmit to the attorney-general, under the sig- natures.of a majority of the trustees, attested by the clerk, a full and true statement of its condition and affairs.’ For any wilful neglect to make such report within one month 183 after its annual meeting, the attorney-general may proceed against the association fof the forfeiture of its charter. (R..S. Sec. 3845.) SecTIon 10182. Any unincorporated association or society organized for any purpose named in the third pre- ceding section may be consolidated with an association in- corporated for a purpose named therein, by a resolution of each, adopted by not less than two-thirds of its members, at_a meeting called for that purpose. Such resolutions, and the votes thereon must be recorded by the clerk of the corporate association, and the consolidated association thereupon shall assume the name or title of the corporate association, and bé entitled to all its privileges. But the members of the consolidated association shall not be lable for the debts or obligations of the unincorporated associa- tion or society. (R. S. Sec. 3846.) SECTION 10183. The attorney-general, annually, shall report to the general assembly, in a condensed form, the number and condition of such associations, as derived from the annual reports of their trustees. (R. S. Sec. 3847.) SECTION 10184. All such incorporated associations may keep and maintain libraries, and a museum of art con- sisting of models of such improved instruments and ma- chinery as are best calculated to promote the interests of agriculture, for the benefit of such associations, under such rules and regulations as its members from time to time adopt, and may make all needful by-laws for their good government and regulation. (R. S. Sec. 3848.) COMMENCEMENT OF ACTION. SECTION 10243. When the defendant is an incorpo- rated insurance company, and the action is brought in a county wherein it has an agency, the service may be upon the chief officer of such agency. (R. S. Sec. 6479.) WHERE ACTION TO BE BROUGHT. SECTION 11272. An action other than one of those mentioned in the next four preceding sections, against a corporation created under the laws of this state, may be brought in the county in which such corporation is situated, or has or had its principal office ot place of business, or in which such corporation has an office or agent, or in any county in which a summons may be served upon the presi- dent, chairman or president of the board of directors or trustees or other chief officer. If stich corporation is an insurance company, the action may be brought in the county wherein the cause of action or some part thereof arose; but if it be organized for the purpose of mining or oper- ating for petroleum oil or gas, either exclusively or in con- nection with other business, the action may be brought in any county where such corporation owns or operates a mine or a well for petroleum oil or gas, and the cause of action, or a part thereof arose. (R.S. Sec. 5023.) Consolidation of two as- sociations. Attorney-ge1.— eral to report annually. May maintain libraries, etc. Insurance company, Other actions against cor- porations. On an insur- ance company. Rebates or special favors prohibited. 184 SECTION 11289. When the defendant is an insurance company, and the action is brought in a county in which it has an agency, the service may be upon the chief officer of such agency. (R. S. Sec. 5042.) CRIMINAL. Sec. 9404. No life insurance company doing business in this state, or any officer, agent, solicitor, employe, or rep- resentative thereof, nor any other person, shall pay, allow or give or offer to pay, allow or give, directly or indirectly, as inducement to insurance, nor shall any person, co-part- nership or corporation knowingly receive as such induce- ment to insurance any rebate of premium payable on the policy or any special favor or advantage in the dividends or other benefits to accrue thereon, or any special advan- tage in the date of a policy or date of the issue thereof ; _.or any valuable consideration or inducement whatsoever ; Incrimination no ground for refusal of tes- timony. Penalty. or give or receive, sell or purchase, or offer to give or re- ceive, sell or purchase, as inducements to insurance or in connection therewith any stock, bonds or other obligations or securities of any insurance company or other corpora- tion, association, partnership or individual, or any divi- dends or profits to accrue thereon, or any paid employ- ment or contract for services of any kind, or anything of value; provided, that nothing in this chapter shall be so construed as to forbid a company, transacting industrial insurance on a weekly payment plan, from returning to policy holders, who have made premium payments for a period of at least one year, directly to the company at its home or district offices, a percentage of the premium which the company would have paid for the weekly collection of such premium. No person shall be excused from attending or testifying or producing any books, papers or other documents. be- fore any court or magistrate having jurisdiction, upon any investigation, proceeding or trial for a violation of any of the provisions of this section or of section 9403, upon the ground or for the reason that the testimony or evi- dence, documentary or otherwise, required of him may tend to incriminate or degrade him, but no person shall be prosecuted or subject to any penalty or forfeiture for or on account of any transaction, matter or thing concern- ing which he may so testify or produce evidence, documen- tary or otherwise, except for perjury committed in so testifying. Sec. 9405. Every corporation which shall violate any of the provisions contained in section 9403, or in section 9404, shall forfeit and pay any sum not less than one hun- drea_dollars nor exceeding five hundred dollars, to be re- covered by action in the name of the state and the amount so recovered, shall be paid to the county treasurer for the benefit of the common school fund. 185 Sec. 9406. It shall be the duty of the superintendent of insurance upon conviction of any such life insurance company, or of any agent thereof for violation of any of the provisions of section 9403, or of section 9404, or upon being satisfied of the violation of either of said sections and after reasonable notice to the accused of the time and place of hearing, to revoke the license of the company or agent so offending, and no license shall be granted to such company, or agent, for a period of three years after such revocation. Sec. 9408. No life insurance company doing business in this state, and no officer, director or agent thereof, shall issue or circulate or cause or permit to be issued or circu- lated any estimate, illustration, circular or statement of any sort misrepresenting the terms*of the policies or policy issued by it, or the benefits or advantages promised there- ‘by, or the dividends or shares or surplus to be received thereon, or use any name or title of any policy or class of policies misrepresenting the true nature-thereof, nor shall any such corporation, or any officer, agent, solicitor or representative thereof, or any other person or persons, make any misrepresentations to any person insured in any life insurance company for the purpose of including or tending to induce such person to lapse, forfeit or surrender his said insurance. Sec. 9409. Every corporation which shall violate any of the provisions of section 9408 shall forfeit and pay not less than one hundred dollars, nor more than five hundred dollars, to be recovered by action in the name of the State and the amount so recovered shall be paid to the county treasurer for the benefit of the common school fund. SECTION 12910. Whoever, holding an office of trust or profit by election or appointment, or as agent, servant or employe of such officer or of a board of such officers, is interested in a contract for the purchase of property, sup- plies or fire insurance for the use of the county, township, city, village, board of education or a public institution with which he is connected, shall be imprisoned in the peniten- tiary not less than one year nor more than ten years. (R. S. Sec. 6969.) SECTION I. That every individual, firm, company, co-partnership, association or corporation doing business in the state of Ohio, who employ five or more regular em- ployes, shall on or before the first day of each month pay all their employes engaged in the performance of either manual or clerical labor the wages earned by them during the first half of the preceding month ending with the fifteenth day thereof, and shall on or before the fifteenth day of each month pay such employes the wages earned by them during the last half of the preceding calendar month; provided, however, that if at any time of payment an em- ploye shall be absent from his or her regular place of labor and shall not receive his or her wages through a duly au- Revocation of license, Misrepresenta~ tions prohib- ited, Penalty. Officer or agent interested in contracts. Section 12946-1. Bi-monthly payment of wages. Section 12946-2. No exemption by special con- tract from pro- visions of this act, Assignment of future wages invalid. Life insurance company dis- criminating against col- ored persons. f Exceptions. Discriminations prohibited. 186 thorized representative, such person shall be entitled to said payment at any time thereafter upon demand upon the proper paymaster at the place where such wages are usually paid and where such pay is due. Provided nothing herein contained shall be construed to interfere with the daily or weekly payment of wages. Section 2. No such corporation, contractor, person or partnership shall by a special contract with an employe or by any other means exempt himself or itself from the provisions of this act, and no assignment of future wages, payable semi-monthly under these provisions shall be valid, but nothing in this act shall prohibit the assignment by an employe of ten percentum of his personal earnings, earned or unearned, to apply on a debt for necessaries. Whoever violates the provisions of this act shall be punished by a fine of not less than twenty-five‘nor more than one hundred dollars. SECTION 12954. Whoever, being a life insurance com- pany organized or doing business in this state, or an officer or agent thereof, violates any provision of law relating to the distinction or discrimination between white persons and colored persons, wholly or partially of African descent, by demanding or receiving from a colored person a differ- ent or greater premium than from a white person, or by allowing a discount or rebate upon a premium paid or to be paid by a white person of the same age, sex, general condition of health and hope of longevity of any colored person, or by making or requiring a rebate, diminution or discount from the sum to be paid upon a policy in case of an insured colored person, or by failing to furnish a cer- tificate of a regular examining physician of such company to such colored person as required by law, shall be fined not less than one hundred dollars nor more than two hundred dollars. (86 v. 164 § 3.) SECTION 12955. The next preceding section shall not require a life insurance company, or an agent thereof, to take or receive an application for insurance from any per- son. (86 v. 164 § 3.) Sec. 12956. Whoever for himself or as officer, agent, solicitor, employe or representative of a life insurance company doing business in this state, makes or permits a. distinction or discrimination in favor of individuals be- tween the insured of the same class and of equal expecta- tion of life in the amount or payment of premiums or rates charged. for policies of life or endowment insurance or in the dividends or other benefits payable thereon, or in any other of the terms and conditions of the contracts which such company makes; or pays, allows or gives, or offers to pay, allows or gives, directly or indirectly as in- ducement to insurance or knowingly receives as such in- ducement to insurance any rebate of premium payable on the policy or any special favor or advantage in the dividends > el a ea 187 ~ or other benefits to accrue thereon or any special advantage in the date of.a policy or date of the issue thereof, or any valuable consideration or inducement whatsoever; or gives or receives, sells or purchases, or offers to give or receive,. sell or purchase as inducements to insurance or in connec- tion therewith any stock, bonds or other obligations or securities of any insurance company or other corporation, association, partnership or individual, or any dividends or profits to accrue thereon, or any paid employment or con- tract for services of any kind or anything of value shall be - guilty of a misdemeanor and upon conviction shall be fined in any sum not less than one hundred dollars and not ex- ceeding fivé hundred dollars, or imprisoned in the jail of the county for a period not exceeding thirty days, or both, at the discretion of the court and shall pay the costs of the prosecution, and the fines which shall be levied and col- ‘lected for the violation of any of the provisions of this sec- tion shall be paid to the county treasurer for the benefit of the common school fund; provided, that nothing in this chapter shall be so constructed as to forbid a company, transacting industrial insurance on a weekly payment plan, from returning to policy holders, who have made premium payments for a period of at least one year, directly to the company at its home or district offices, a percentage of the premium which the company would have paid for the weekly collection of such premium. SECTION 13132. Whoever, being a medical examiner for a life insurance company or for an applicant for insur- ance therein, knowingly makes a false statement or report to such company or to an officer thereof, concerning the health or physical condition of an applicant for insurance, or other matter or thing affecting the granting of such in- surance, shall be fined not more than five hundred dollars or imprisoned not more than three months. (R. S. Sec. 7078.) SECTION 13133. Whoever obtains or attempts to ob- tain from a life or accident insurance company, money on a policy issued by such company in this state, by falsely and fraudulently representing the insured to be dead, or procures such policy to be issued to or in a fictitious or as- sumed name and falsely represents the fictitious person so insured to be dead, thereby obtaining or attempting to ob- tain from such company the amount of such insurance or part thereof, or obtains insurance upon the life of another not applying for such insurance, or attempts to* obtain in- surance upon another’s life for his own benefit without the knowledge of the person to be insured, or falsely obtains or attempts to obtain money from such company upon a policy by a false and fraudulent written representation or affida- vit that the insured is dead or injured, shall be imprisoned in the penitentiary not more than fifteen years, or, when the money so obtained or attempted to be obtained is less than thirty-five dollars, shall be fined not more than five Penalty. False state ment by med- ical examiner of insurance company. Fraudulently obtainin money from insurance companies. Life insurance; official or agent issuing fraudu- lent policies, * Physician abet- ting same. Changing life in- surance policy. Rebates and other induce- ments from life insurance companies, 188 hundred dollars or imprisoned not more than six months, - or both. (R. S. Sec. 7084.) SECTION 13134. Whoever, being a- trustee, officer, agent or employe of a corporation, company or association, organized to transact the business of life or accident or life and accident insurance on the assessment plan, knowingly insures a person, or permits him to be insured without that person’s knowledge or consent, or insures a fictitious per- son, a person over sixty-five or under fifteen years of age, or a sickly or infirm person, shall be fined not less than one hundred dollars nor more than one thousand dollars or imprisoned not more than six months, or both. (R. S. Sec. 36308. ) ‘ SECTION 13135. Whoever, being a physician or other person, knowingly aids in or abets any person in effecting insurance described in the next preceding section, or in effecting insurance of his own life, shall be fined not less than one hundred dollars nor more than one thousand dol- lars or imprisoned not more than six months, or both. (R. S. Sec. 3630g. ) SECTION 13136. Whoever, being a life insurance com- pany doing business in this state, or an agent thereof, makes a contract of insurance, or an agreement as to such con- tract, other than is plainly expressed in the policy issued thereon, shall be fined not less than one hundred dollars nor more than five hundred dollars or imprisoned not more than thirty days, or both. (90 v. 345 § 3.) SECTION 13137. Whoever, being a life insurance com- pany doing business in this state, or an officer, agent, solic- itor or representative thereof, pays, allows, gives, or offers to pay, allow or give, directly or indirectly, as an induce- ment to insurance, a rebate of the premium payable on a policy, or a special favor or advantage in the dividends or other benefits to accrue thereon, or a paid employment or contract for services of any kind or any valuable considera- tion or inducement not specified in the policy of insurance, ~ or gives, sells or purchases, or offers to give, sell or pur- Solicitin membership in unauthorized fraternal ben- eficiary asso- ciation. Failure to comply with laws relating to same, chase as an inducement for insurance, any stocks, bonds or securities of an insurance company or other corporation, association or partnership, or any dividends or profits to accrue thereon, or anything of value not specified in the policy, shall be fined not less than one hundred dollars nor more than five hundred dollars or imprisoned not more than thirty days, or both. (90 v. 345 § 3.) SECTION 13138. Whoever solicits membership or as- sists in procuring membership in a fraternal beneficiary as- sociation not licensed or authorized by law to do business in this state, shall be fined not less than fifty dollars nor more than two hundred dollars. (97 v. 432 § 30.) SECTION 13139. Whoever, being a fraternal beneficiary association, or an officer, agent or employe thereof, neglects or refuses to comply with or violates any provision of law a 189 relating to such association the penalty for which is not specified elsewhere, shall be fined not more than two hun- dred dollars. (97 v. 432 § 30.) SECTION 13140. Whoever, for himself or as an officer, Fraud by of- ss : TR cial or med- member or physician of a fraternal beneficiary association, jcal’ examiner as created and defined. by law, wilfully makes a false or te ogee fraudulent representation in, or with reference to, an ap-_ sociation. plication for membership therein or for obtaining money therefrom or benefit therein, shall be fined not less than one hundred dollars nor more than five hundred dollars or im- prisoned in jail not less than thirty days nor more than one year, or both. (97 v. 432 § 30.) SECTION 13141. Whoever wilfully makes a false rep-. Fraud by cer- resentation of a material fact or thing in a sworn state- fifcate holder ment as to the death or disability of a certificate holder in sociation. a fraternal beneficiary association, as created and defined by law, for procuring the benefit named in the certificate of such holder, or wilfully makes a false statement in a re- port or declaration under oath, required or authorized by the law creating such associations, shall be imprisoned in ~ the penitentiary not less than three years nor more than ten years. (97 v. 432 § 30.) SECTION 13141-1. Whoever being an officer, director, suppressing trustee, agent or employe of any insurance company, fra- facts. ternal beneficiary association or assessment association or- ganized under the laws of this state shall wilfully and with intent to deceive the superintendent of insurance or any per- son interested therein respecting the true financial condi- tion of such company, fraternal beneficiary association or assessment association mutilate, destroy, or falsify any of its books, records, proofs, letters, papers, or documents, or suppress, withhold or conceal any of the same from any person authorized by law to investigate the true financial condition of such company, fraternal beneficiary association or assessment association shall be imprisoned in the peni- Penalty. tentiary not more than three years nor less than one year. Sec. 13149-1. Whoever, having accepted.a premium penalty. note, in payment of the purchase price of a policy of in- surance, sells or assigns such note. prior to the delivery and acceptance of such policy, shall be fined not more than five hundred dollars or imprisoned not more than six - months, or both. Sec. 13171. Whoever for himself or as an officer, di- yyisrepresen- rector, agent, solicitor or representative of any insurance Uae aS company, except fire insurance companies or associations forfeit, etc. or fraternal benefit societies, doing business in this state, Prohibited. issues or circulates or causes or permits to be issued or circulated any estimate, illustration, circular or statement of any sort misrepresenting the terms of the policies or policy issued or to be issued by such company or the bene- fits or advantages promised thereby or the dividends or , shares or surplus to be received thereon, or uses any name or title of any policy or class of policies misrepresenting the true nature thereof or makes any misrepresentation to in- duce any person to take out a policy of insurance or makes any misrepresentation to any person insured in any such insurance company for the purpose of inducing or tending to induce such person to lapse, forfeit or surrender his said insurance, shall be guilty of a misdemeanor, and upon conviction thereof shall be fined in,any sum not less than one hundred dollars nor exceeding five hundred dollars or imprisoned in ‘the jail of the county for a period not ex- ceeding thirty days, or both, at the discretion of the court, and shall pay the costs of the prosecution, and the fines which shall be levied and collected for the violation of any of the provisions of this section shall be paid to the county treasurer for the benefit of the common school fund; and upon any such conviction the superintendent of insurance shall revoke the license of the person so, offending for not : more than one year. : Misrepresenta— SECTION 13172. Whoever, being an insurance com- tions in ad- : weet ; vertisement by Pany, corporation or association authorized to transact pirate com- business in this state, or an agent thereof, by advertisement in a newspaper, magazine or periodical or by a sign, circu- lar, card, policy of insurance, certificate or renewal thereof, or otherwise, states or represents that funds or assets are in its possession, not actually possessed by it and available for the payment of losses and claims and held for the pro- tection of its policy holders or creditors, or advertises a subscribed capital not actually paid up in cash, shall be fined five hundred dollars, and for each subsequent offense : shall be fined one thousand dollars. (99 v. 178 §§ 1, 3.), Such advertise- SECTION 13173. Whoever, being an insurance com- respoding . ~Pany, corporation or association authorized to transact with verified business in this state, purporting to make known its financial standing by an advertisement, public announcement or by making or issuing a circular or card, fails to correspond in all the particulars which it so purports to make known, with the last preceding verified statement made by it to the insurance department of any state, shall be fined five hun- | dred dollars, and for each subsequent offense, shall be fined one thousand dollars. (99 v. 178 §8§ 2, 3.) Disbursements ~| SECTION 13174. Whoever, being a domestic life insur- eres ance company making a disbursement of one hundred dol- companies. lars or more, fails to have it evidenced by a voucher signed by or on behalf-of the person, firm or corporation receiv- ing the money and correctly describing the consideration thereof, or, if such expenditure be for both services and disbursements, fails to set forth in such voucher, the service rendered and an itemized statement of the .disbursement made, or, if such expenditure was in connection with a matter pending before a legislative or public body or a de- partment or officer of any state or government, in addition to the foregoing, fails to correctly describe in such voucher the nature of the matter and of the interest of such com- IgI pany therein, shall be fined not less than ten dollars nor more than one thousand dollars. If such voucher cannot be obtained such expenditures must be evidenced by an affidavit describing the character and object of the expendi- ture and stating the reasons for not obtaining such voucher. (99 v. 177, 178 §§ I, 2.) SECTION 13415. Whoever, directly or indirectly, acts as agent, or transacts any business on account of or for the benefit of an express, telegraph, telephone or insurance ‘company, against which taxes have been assessed in any county in this state and remain unpaid for twenty days after the time provided by law for the payment thereof, shall be fined not less than one hundred dollars nor more than five hundred ‘dollars or imprisoned in the county jail and fed on bread and water only not more than thirty days, or both. The payment-of such unpaid tax by an agent or other person, shall not be a violation of this section. (R S. Sec. 2843.) SECTION 13416. Whoever, being an officer, director or stockholder of a company organized under the laws of this state, to do the business of life, accident or health in- surance, either on the stock, mutual, stipulated premiums, assessment or fraternal plan, violating or consenting to a violation of any provision of law governing or forbidding the re-insurance of the risks, or any part thereof, or the consolidation of such company with any other company or association, or the assumption or re-insurance of the whole or any portion of the risks of another company by ‘such company, shall be fined not less than ten thousand dollars and imprisoned in a county or city jail not less than one year. (R.S. Sec. 3597.) SECTION 13417. Whoever, being an officer or agent of a corporation, company or association organized under the laws of any other state of the United States to transact the business of life or accident insurance, or life and acci- dent insurance on the assessment plan, fails or neglects_to ‘comply with, or violates any provision of law relating to such corporation, company or association, shall be fined not less than one hundred dollars nor more than one thou- sand dollars or imprisonment not more than six months, or both. (R. S. Secs. 3630e, 3630¢.) SECTION 13418. Whoever, being a company organized under the laws of this state for the special purpose of in- suring against accidental personal injury and loss of life sustained while traveling by railroad, steamboat or other mode of conveyance, against accidental personal injury and loss of life sustained by accident of every description, and against expenses and loss of time occasioned: by injury or sickness, and on such terms and conditions, and for such periods of time, and confined to such countries and _ lo- calities, and to such persons as from time to time, may be provided in the by-laws of such company, or any officer Acting as agent, etc., for / certain com- anies in de- ault of taxes. Unlawful re- insurance by life insurance company, etc. Foreign life insurance com- panies on the assessment plan. Violations by accident insur- ance com-— panies and of- ficers thereof, Penalty. 192 thereof violating any provision of law relating to such com- pany, shall be fined not less than one hundred dollars nor more than one thousand dollars or imprisoned in the county jail where such officer resides, not less than thirty days nor more than one year, or both. (R. S. Sec. 3630i.) Section 13418-1. Any person, officer, member or ex- amining physician of any society, authorized to do busi- ness under this act, who shall knowingly or wilfully make any false or fraudulent statement or representation in or with reference to any application for membership, or for the purpose of obtaining money from or benefit in any society transacting business under this act, shall be guilty of a misdemeanor, and, upon conviction thereof shall be punished by a fine of not less than one hundred dollars nor more than five hundred dollars, or imprisonment in the county jail for not less than thirty days nor more than ~ one year, or both, in the discretion of the court; and any person who shall wilfully make a false statement of any material fact or thing in a sworn statement as to the death or disability of a certificate holder in any such society for the purpose of procuring payment of a benefit named in the certificate of such holder, and any person who shall wilfully make any false statement in any verified report or declaration under oath required or authorized by this act, shall be guilty, or perjury, and shall be proceeded against and punished as provided by the statutes of this state in relation to the crime of perjury. Any person who shall solicit membership for, or in any manner assist in procuring membership in any fraternal benefit society not licensed to do business in this state, or who shall solicit membership for, or in any manner assist in procuring membership in any such society not authorized as herein provided, to do business as herein defined in this state, shall be guilty of a misdemeanor, and upon convic- tion thereof shall be punished by a fined of not less than fifty nor more than two hundred dollars. Any society, or any officer, agent or employe thereof neglecting or refusing to comply with, or violating any of the provisions of this act, the penalty for which neglect. refusal or violation is not specified in this section, shall be fined not exceeding two hundred dollars upon conviction thereof. INDEX INSURANCE — Service of summons on insurance company.............0. 0.0008. Venue of action against domestic company.............000 cece eee INSURANCE, ACCIDENT AND SICKNESS. , (See Insurance Compames Other Than Life) INSURANCE AGENTS. (See Insurance Companies, Life, Insur- ance Companies Other Than Life) INSURANCE, BOILER EXPLOSIONS. (See Insurance Companies Other Than Life) INSURANCE 'COMMISSIONER,. (See Superintendent of Insur-- ance ) INSURANCE COMPANY. (See Insurance Company; Life; Insur- ance Company Other Than Life) ...........00.04. 9339 to INSURANCE AGENTS, SOLICITORS AND BROKERS — PUQEN LS CGS SSIS . WHEL. "5 coona kan ks aero BR ae al) SAE DR ese Cancellation, revocation and renewal of... 00. 0. cee cee ces 664, PEG-DYy- LOPCIPIE CORN PANY MLOL seks hie ss Soa ee Oe ha CTU ORR BIGO TS sas ees oie ya eis EN RR oe Appointment of agent upon written notice..... 0... .0 eee ee eee Commission, payment of except to licensed agent, ar ohibeed. Brokers’ license, Wien, “TsSlicd a. Airy peep «mkt = Meroe ge Application ‘for, Sal OAL AN PACs shes Oe cutis ae BNI Ok Shs Contents of AICAMONS io te ye ae se ee ours sx tears Commission, payment of except to licensed broker, prohibited. Revocation | DiStcemeee ii ean ee ae ae oan eer Seas tnens of, DS ABM Sa eee fn Ge Bus hed a Written notice ofvemployment eéqnired |. avs Owns hook Commission, payment of except to licensed solicitor, pro- hibited Den tec cteceeg een UL ca Pea aca ph SoG a Ua 8 SR ae ae Pa Foreign — Annual report required of chief officer. Be hcte set satis i gst esha Gta ae ISLES Sich LO) CIES COs ae Ulte hoa, Cece Rae La ite SAR oh ES PD: QU AE TO OD OCHEVE os Sadan Oe ete pre tad lk Seb ery seas Muthority> tOedo pusinessir. ores b.8 vee w access kts 645 to 650, Ret ieed Went... RM Sete ORO, hare oe ea hee 5442: Expenses of inspection to be paid |) yr eee Ue abet oh Funds deposited with superintendent of insurance, claims collected POUR toe te NT MN ia ee hee aa rt y Rin oO Lice 641 to Fraudulently SDHAIM Be MONEY PONIES co a) ese vas ieavealg tan eek Public, officer interested in contract for insurance, how punished. olde yel hs Pa egeos Sd Fo (Yop ieee Reap arte ite hat ag ean aR ORE OS SECTION 9643 Service may be upon chief. officer of agency... ... 0.00. .c.e. eee ens 102 Statutory provisions relating to, violations..... eee Soh 672 Pee TOEE MAGEE UE 7 5 Rivera red Battie Up oath od whee ek TN wo cake paladin Clerks and experts, employment by................000- 618 to Bente superintendent Of iis iad hiv wk orp na Me ee eoelb ce bees 618 to Entitled to fees upon interest checks and coupons of bonds Atidersecuritios: CeDOSIRED. DIYer i Guw. osc cs se ldeh eek ke ceo AB EoD; 194 INSURANCE AGENTS, SOLICITORS AND BROKERS — (Concluded). SECTION Laws.relating.to,: to enforces +05). eae ks meg ec ae 617 Warden; : dppdintment aff te: i... s arcs Ge oe te pa a 621 Watnesses, attendance -0f; “ett. 2. oss seek tie ee 623 Fires Marshal's *tax..i cesta. aye has ae ee ee 841 “Taxation Of 2 .000b So orl es oe eee Oe ee ee 5432 to 54387 Failure to pay, or make true statement...............000000- 5434 Payment .of, to: treasunétiof. state. 43cr tvecseees oe ee 5433 Penalty: tor nonpayment Oly Ajessn coe bee ee 5435 WAGES — . Assignment of futtire, anvalid 5.03 Soe ees ee aes one 12946-1-2 Bi-morithly. paynrent: O86 ss OSs ye ies te oa Pd ee ee ee es 12946-1-2 = INSURANCE ‘COMPANIES — Agents, solicitors and brokers, licenses issued to, when. .664, 664-1, 644-2 Bureau of rating, fire insurance, provided (see bureau of rating) 9592-1-18 Contracts by, indemnifying employer from loss on account of death Or: injury: to, employe, are ‘Woides: «hav . + pee on 1465-101 Deposit of securities to transact business outside of state........ 9607-31 Certification-ofinderyvstale< ras 4 ca aie oat See es 9607-36 Gollection of -principal revOCcation te. os secon om oe eieeeioe eae 9556-10 Organization, contracts for may be solicited without license.. 9556-12 Penalty. for.-violation. of lawicucs feos tek Cees OE 9556-13 Reserve fund, amount to be maintained:.....22...... ees eeee 9556-5 Schedule of: feés 3. Aso s Suede th cee See ee 9556-8 Solicitors, names and addresses of authorized, filed with super— intendent 7. o..6 13 p02 eg hie a Be bacon oie hk he dee Oe ee 9556-11 Revocation so£/ authonityn.secas hese eae Sel 9556-11 195 SECTION INSURANCE COMPANIES, LIFE. (See Insurance Company) . 1, FRATERNAL. (See Mutual Protective Society)........... 9462 to 9509 1 Fa a se CES OEP CRESS: 7 1 ba cL ara gO ce CP 5365-1 PUREE PEHEVOICUESSORICES cass oo ls ony bob occu heey sw uetgeuiae -10057, 10058 BRCRE Gt GUTALIONS EtG INA Vics oooh oFcd « Sts 28d hs SONS oe eF eee eee cs 10061 PRR CHGION LO aati Pinel art Oo e ain oN hich ne ee 8 oN oe eee 10061 NN VEStMEHC OL HESETVE TUNIC ss fete aen is 8 he ein Shee eww ate 10057 Payment-of endowments, or policies... oo... Scie eee we ce ae 10064 EAE LET OTL ANID UTE ed rte chase ae ites Neko re IE PS oe Se boainte 1006k Powers “dnd? GUti CO GEES awk S Cows Seas Oo bas ous FACES ere oe ea 10061 Gs OEE, SURE te ic xe ore HEE ha Pos Os Ok hehe ee 10060 arustees to. take charge of ‘fards, etch oe eee ce Ok. 10058 Powers-and duties: of ‘remoyaliy sods ys ek wees oe 10059 RsUGAT.: FRE SERGE Cos te OSG RS bee ote ee ee Pewee ae 9339 to 9426 Actions by. and against home company... ........00.00e ncpeeucess 9361 Payment after two:months, to-enforce. 22.45 os So ee a ele 9361 African descent, persons of (See below, Discrimination) PUMCTL SC OSCCLUIICR? cn wiki. cap ORE fe SEE Pee Ee aw ROL pen 654-1 Animal Teport of “*hohie company. or cx ccc kok Mak wee dies Pa 9363 MATIC ATEUIS UCONN eae atk Ak Pee Tee Ree he has coe ek 9363 Annual statements of, as to profits and losses............... Peper 9386 PuPvate Vaitatiot OF PONCies: Of. .che ves evn oP oc heels oe ek ee 636 _ Annuities, industrial policies and assessment and fraternal organ- ization, standard policy statute not applicable to.............. 9425 Aomuities; may purchase or “dispose (Gf. o.oo cs ee Seek hie caee 9332 POMIGeOU VS OT COLtAIT StAtites ter. Se tal races elt kee. Chea 9459 Applications to, cipher, etc., applications not to be taken.......... 9390» If taken, are void against claimants under policies........... 9390 Copies: to: dtedmpany DOHCYiss fe pa boda ek oho Oka oes eee 9389: Birect-on- detenses of Omission. 6. ks. so. a eee oe 9389 Defenses in reference to, when taken away.................. 9392. Palse arawer-iw. when material. +2 sores cok oe Ps ee 939k Misstatements, etc., in, company estopped when.............. 9392: Policy. Holder; etc,” entitled to copies. 36. Aoesee. ee SS 9387 Effect on defenses of failure to deliver copies........... 9388 Approval of articles by attorney-general:.......... 0.0 c cece ce eeeee 9341 PAs POI AMCON POT AMON ocr et | ses Sakae ee wk ay ES coe ole 9340 PUIPSOVSNys AtLOTey PONET Al iss viene ste cokeeot BEE oe OSE 934} Business, kind to be done, to be stated in...:.......-....000- 9340 Capital shack to- be stated ita, © o's bs SON eae, OF nk See 9340 Charter proposed to be adopted, to be stated in............... 9340 Directors or trustees, number to be stated in................ 9346 Ejection: of, ‘matiner of, to ‘be ‘stated: ini. oi. oso 3 ee 9340 Vacancies, manner of filling to be stated in.................. 9340 MSS VAIN REE OT Oe rics cot orice cto wc poke ad ph Saas a ina KO ok 9340 TCA LO: Dea Pate Bs ve. tir Sea eo ke he oe ee 9340 Manner of exercising powers to be stated in................ 9340; Name they may adopt, and to be stated in.......... “erg 9040," 94 WV MAGA POMCRIE ALIN te ope o cena re ies clas hoe wee ee oe ES 9340 Assessment plan, organized on. (See below, Mutual Protection Association) Authority to commence business; what is......0..c....0ececccees 9349 Bee Cre SES eee Tn is eae’: eee ia tose he oe ee eae es 9350: Business, kind to be undertaken to be stated in articles.......... 9340 IR GC DAI SORT OOe S Ocpk shicewece met Sau he tes ve dale 9385 Kind, company prohibited from doing................000005, 9385 TRErINSHUANES OF TISKS soe Oh ciao bus veivcee eae) 9351 to 9356, 13416 Capital must all be paid in before acting.............cccececcccee 9343 PUVENERG SW se OE OF os saa Ve vo aed Safe can Ree ae Na 9343 Capital stock. (See below, Stock) Charter proposed to be adopted, stated in articles................ 9340 9339 to 9509 1. Fraternal, 2. Legal Reserve. 3. Mutual Protective. RAMEE MENT RID hed oe Cee ee hy hy CS co ee oe athe, ce, 9340 te 196 INSURANCE COMPANIES, LIFE —.Continued. SECTION Cipher applications “not to-be taken., . -20. an ose Sie ee 9390 oid against. claimants:under: policy? s.44 25. fv iedsn ce tes 9390 Colored persons. (See below, Discrimination) Commencing business — Authority: to commence) what is.niiei tees wa ee 9349 Evidence:.eft authority,“what ssh; ah pe ee 9349 Before deposit with superintendent, unlawful................ 9346 Company, definition (Of). 6cs 355-0 Scho ek ee ee 9426 Considered agents of company. Wun sae es ee et ae eee 4 Gonsolidation= of ete ss: Sv sais va eta ee ee 9351 to 9356, 13416 Contracts.of, as to deceased members i. oson bens ds oc oe 666 Debts due company, investment may be in what.................. 58 Defenses of, growing out of applications, how limited. .9388, 9389, 9390 Deposit with superintendent of insurance.......0......eeceeeceee 346 Certificate, jof;: ete; by, supermtendelits..4 a0 vie ea Sek 9349 Authority to commence business, is........isccs+eyeeeves 9349 Evidence xis, oF awhatsige.Git sins mee oor oes eee 9349 Chanemip deposits Zsew vs ave sk Lbs phate ehh eae ee 9347 Commencing business before, unlawful....................... 9346 Dividends and interest on, company entitled to while solvent. 347, 9348 Mortgages assigned to superintendent, must be recorded; fees. 9346 MITEGEOES- OF LTUSLEES: Ws oe ooh Se ae Ping Week ate Wa rer ees ane ve 9340 Crtizens pantust (Dee cs. scp ake Pee alee eee ee ee 9340 Blechon Ol Sew nd co Rien ces ein ee ae a ee re ee 9340 Number to be-stated in articles; increase of..............-:. 9340 Stockholders or’ menibers “mist “bes sss a es 9340 VV deaniGies Ti. (a2 o. Seta Geen wae PR ny eRe ee SEE 9340 Discontinuance. of: Dusitiess “byris <5 Saas bed cae coed hen eee, 655 Discrimination — i Among insurants; unlawtul 4 otue. man le Ree 9403 to 9406 All agreements to be expressed in policy................ 9403 Renglive ce aongct Beir ora oad ee ee ae 9405 Colored: persdits ‘against “amlawfuly ice. 22. se eee 9401 Cettificates to, if-apptication reftiseds A vs aw bar os Pee 9402 Penalty for discriminating against....... SN tn ees 12954, 12955 Stipulation, discriminating, in policy void................ 9401 Disbirsement “of; iregrulatedias Bs ayes Ns iss ee eae ee 13174 Distinction between mutual life company and mutual protection ASSOCIAUONM: ye tavk ven ea ees Seles Sees hoa pa ees 9432 Dividends, paid. when, out-of: what; ete sos 5 omc da le ed wa ce chen §362 Election of officers; provision for in articles.....).......ec..e0% 9340 Estopped from certain defenses growing out of applications...... 9392 Evidence of authority to commence business.............0.0.04-- 9349 Examination of, by superintendent of insurance............ 625 to . 627 Exemption of amount payable on policy, from what claims, etc., MALOR (reo nets eR RO AUR Lg ts ec AN Re 9394 to 9396, 9400 Exercise of corporate powers, manner of to be stated in articles.. 9340 False answer in application when material...........0....... 9391, 9392 False statements of assets by, prohibited.................... 13172, 13173 False statement by, medical examiner of; penalty................ 13132 Farm -Jaborers’: associations ces eter eee Vea 10179 to 10184 Fees of, to be paid to superintendent of insurance....... Seg AOD ee OS Miling articles: oaths 4 cs sss Rea ee a I ae 9340, 9341 Firemen’s relief association (See Firemen’s Relief Association). . 10176: to 10178 Foreign — Agent of — Certificate of authority to act as; contents; filing.......... 9377 Licensé-0f 042 copa ea oe ante ey ee a eee Must appoint to accept service..............0% 9373, 9380, 938 No-one to;act as Until Se Se ee eee 9373 To receive service or commence action after withdrawal Of “company, 5. hin. a:as: to “suits against: (4. Soyscs 0 neh ek ee ee A nee 9369 197 -\ INSURANCE COMPANIES, LIFE — Continued. SECTION Annual and other statements of....% 0.00.05. .6000. 9370, 9874, 9375, 9455 Renalites wes marr & Carney bee's « 9384 Not to be renewed again for three years..........-: eee renee 9384 Capital smust be: possessed of, “whats is cee oe te en gtnte cack 9366 Capital stock of, must be paid up and invested according to foreign RAW ee ia arate os Sew PEM wate UT Riga ts nia PDAS ony ete bee a Ree TART 9366 Capitalstock sof ‘mutitalswhat-in lieusofari.scs oot ae ees 4 9366 Ceriicates-oL-anthority to) tld W EUS pon kie eeee circa ae whe res nae g 8S OS Bras 13415 Tontine, insured notified when premium due...................... 9371 Sfatenrerit-Ot Sd1 vid Eds *tOLaSStILed wwe beside ners oe tis Seine bes 9371 GORE: SEMIN OT 5, ATC VOL Sede ie cence eG as eh e go ines © Va week get 928 to 684 SRC ANIIES ATTY OL CE ge iot iss SP oat rae Were Mee gc Soa ows SAME ab TOT dvi soe oe 9340 Wife, husband may insure for (See above, Policy).............. 9393 Wife may insure husband’s life (See above, Policy)........,...+.-- 9397 3. MuruaL PRoreECTIVE. WGciMerts, May ANSUre AGAINSE o.%s2. Ss 8d Wetec peie seuss Pee be PER e's 9427 Accidents or sickness, company for special purposes of insuring NO MT Sra eei nth a ie ead rol decane a Site a/ecinttiaue ony Oe Oh EE 9445 Accidental loss of life, injury, sickness, may insure against.... 9445 Annual payment plan, organized Oni.8 eo. es fe wei SSS 9446 Ae Tey BEN Gey ca Roba Vas nl Copel rea tages nine eep Dial gti e ae On Raa A RES i aE eA MO) OE 9451 AMSsessinent-plan, orvanized ON, . cd sees wink cd eevee Pew 9446 Bond of company; conditioned how; approved by; deposit.... ie 7, 944 PU PEMSESCIMET EH OMe an soso eee Biase ee he Le Tig cea Distt DEON hs 9446 FOreten-companics.- 1reemlationsasa tO. iseuce che inca copie eee hoe 9452 Fund “for loss; for guaranty; for. expenses... ..3 0.605. soe. aes 9446 Separately kept and never to be interchanged............ 9446 LAN OTICEZTOsPETSONSLASSESSEUT Ir sxaare Oud NEGO Re baie Eve none 9446 Restrictions on the issue of policies provided by section 9443 do: not-applysto: accident ‘companies . 006. eo ne ee ee 9443 PERCUTHANA tLOTIBAE ais bh 1d oy eek eH Seda Oi Ge BA ines OR 9427 oan? of stovorncer“toOrpidden oo psers Mee uaa aes Or US 9427 ‘PHE=property= Of smeIMDerSvah Gs scat Male ae, vs Ae ad te eg 9427 Action against, where may be brought...:......................4 9442 Agent to collect or receive dues must give bond.................. 9457 Pesee THAT say" PG) IISUTCU oi ks oon 6 ooo es ek onion 9443, 13134 Penalty for violating law respecting............. 13134, 13135, 13417 Aiding or abetting certain violations; penalty.................... 13135 Assessment plan, may be organized: Oneioo. Sele. i. ep en we 9427 Assessments — Accumulative, invest, distribute, etc., may................054. 9427 Agent to collect or receive, must give bond...............0.: 9457 Collectatroni-members anay «sce ces Seal bic, Taleo esis Pk mew ee ect ans 9427 EGEPOIS CS; A SSESSMELIt Ses LOL sca vis, Sahar ces tis estou kd Ree AS aro ake Ne 9444 Such not to be made part of assessments to pay losses.... 9444 P6an-ot, to: otieer,- of tse by; dorbidden 4 056. roe oe. 9427 Bond of officer who collects or receives dues, etc...°.... 9457, 9458 AOE PALE CA BITE CE Sra als ielacy Oa oe oe oie were aa os REA pee eh ca 9458 Conditioned, approved, filed,-renewed.....-......0.. 000.0000. 9458 Failure to file, works forfeiture of franchises............... 9431 Certain associations (religious, secret, mechanics, and employes of railroad, telegraph, or express company, funeral benefit, etc.), exempt FFORT-CeNain: PFOVISIONS. Ae eh eee 9459 Such associations become subject, how............... 2000000. 9460 Certificate or policy — Sah fa es Pay DP ee ae AE hie Be RCO EA Beer ae rn 9443, 13134 Conditioned upon being realized from assessments, must be.. 9432 MICH EINIS ILE) TONE. Ofkiae 6 avo Cate.) teen a ane ately a heim t 13134 Issier ot crestricted OW: ,scmwes ois cya poe on ees We es 9443, 13134, 13417 Medscabexattination fOr, . 060. eievociien fle e's vie a ee be eae 9443 Penalties for issuing certain.....0...0..-.-..0.. 13134, 13135; 18417 Person, whose life is insured, must consent.................. 13134 Distinguished from mutual life company, RO Wao a OE Re 9427 Examination of, by superintendent of insurance............... eee 9433 Expense of, HOW Palisa par tac yies Pe yatoys ed chee Warns e we h ee 9434 Quo warranto against company, when................-.2.0005 9433 EXPENSES, NOW Paid. i. wsis wn dsincsiey cringe segs + Hay tate eek pit ne} 9444 Fictitious person, insuring SN mie ei aa NS Niel Mean Crt ca eee 13134 Roteion, doing business-in ORi0. 6.75 wyss-n: cue chase aay Oh age wiles 9452 Action against, where may be brought.....................5. 9442 Agent to receive service of process, must appoint, first....... 9435 PR TATU CLAD: BLUE CTINOTIL Satie saree ohare SN Ps Ae oe eae 9452 to 9454 200 INSURANCE COMPANIES, LIFE — Concluded. SECTION Certificate to, from superintendent of imsurance; first.) 22. 9436 Superintendent not required to issue certificate, when.* 9436. Riles TOBA SSS pe eis oa eR EES eR Ree 435, 9436 Service Ob process: On; -EtO: + Fac. eevee hota Unaes ae 9442 Porfetture: of franchise: a ata s oe ae ee ae ee 9431 Bntorcement: ot forterturetcns: cur cecis oo te he een ee ole 9431 Failure. to,make statements: tors: orton cc eae eo Paes 9431 Rasiureof treasurer tovhle boat seis ancks aviwiiohatay oe ete ee 9431 Foreign assessment companies, admission of.............. 9452 to 9454 Eaves May INS Ps foe od yey ee ted oe teat oe aa a 9427 Loan of accumulations to officers, forbidden.............. Saas 9427 Medical @xamination: of applicant:.e 00 Kr eek ee ae ta Aa 9443 Penalty: tic TESPECE OSGi Sen ae aoe hee we late hie wee eRe 13135 Mortuary fund not to be used to pay expenses...........+...... 9444 Mutual life company, distinguished from, how.................:. 9427 Mutual life company, must comply with what provisions......... 9432 Organized;* may:-be “and oS ey ob ake S ilcec es Nedra ew owe es 9642 REA TCET, LEtCrotO sDe Aled Ne ee tic eek 3 aad wee oe 9636 Insurance contracts necessary before beginning business...... 9635 . Eaabiity. Of policy: holders 2,85 cies eee? I AEG Shee 9639 TMCONSG Mes Marte ooa's Cie pM En IRN Sale in a WOT Cees PO ce 9634 Boney NOMers, wit DEE COP Kc UN ¢ so Sed leks eo pio wien awn eee 9639 EE OCESS SEE VICE CO AR ae fe ae a hc oilers ahi lerecoh STR ee A oper 9640 reqtisites: for’ beginning DUSINESS rr. eis nk sc Fk bh he bos Seca 9635 IVESEL VCH Mila TIMeN tO ohh ietetsrcch athena ba GW at oe Raa eae aes Al 9637 PIC MACE JO AREOCCH SY wae Pee ERS Eel cis as Fan eden RUN he eau 9640 PST RECTINGIAE aS Gae ie Oe By AG TEE UC REN Ook OSTA RO 9641 Burial expenses, insurance may not designate specific undertaker... 666 Cancellation: Of Are PONCY fier as ose ee eb ae Shae Ce ea 9577 Cash policies, how cancelled; rates retained......../......... 9578 Muttal> policies hbws-cancelleds ooie naka neta ea ey Home 9579 Assured.mustpay-swiat< 10 SSeS... rcs soe ee DoS 9579 Liability of company for loss ceases, when............... 9579 Surrender to insured of premium notes.............0.... 9579 Obligation to cancel and insertion of, in policy.............. 9577 Upon owritten=tequest: of: insured: x. 3s eee eas ee 9577 Penalty: for violating. law respecting........)..2...04 40) cae 9582 Premium paid in installments, policy cancelled how.......... 9580 Company Os Petit Ms Whatoowe eos Aka nde. oe Mp 9580 PRatess eu tapally etitrled: tOcc tease ays oe onde et shy se wee aaa 9580 Capital — ; . mMmount fire Company,< Must: have: iss. oles Me 4 eR AL ee ee 9524 TAO EST OC ker GOIN PATIES Weats sins ier oc vee es ae eee 9524 La Tengh sets SW ck ipl 100 aN ak os eae rR aL RO SG Ce 9531 Investment of. (See below, Investment) Opening -hooks--for_ subscriptionitos...1. hast beau aa ere 9514 Paid in, before doing business; oath thereto....:............ 9522 SHAreS PT GINISION Itos whats ack cchus oe eto LC As mat eee ee 9526 PPG PHSEG PR MESS TOC es oes eb eee es aes ac a eacseom Ro a ce ee cae ss 9530 Cellar and foundation walis not considered, in settling loss........: 9585 @ertihcate-of-atithority’ to-do : business 7 SS ae ine Seve ee 9522 Certified: copyof vis vevidence hos eS oe i a 9522 aes WHET Ci Nia 5 sle-s ese Nahecet Cra oo ae DP AEE ease eee 9522 Consolidation of fire or marine, when, how.................. 9544, 9545 ABICIES (QO DETMEW.} COMPANY sw caus ce Uae eh Taree apt a Got. yotenaa ae 9545 Ganitalk stock “limited te, Seneca ye me See eR 9548 Certificate to be filed with superintendent.................0.. 9545 Certificate of consolidation to be filed with secretary of state. 9549 Dyssentine stockholders riehts. ors. ovis oes bk Re 9546 DistribGtOn: OF Me Wes StOC Kis Ri juch ocr At Hee ee aes 9546 DECelOLePEleCtOtsO Li TSE el kee. oe eee MeN Nig ah ee 9547 Franchises, rights and property of old, vest in new company... 9545 Nia tite eties ato vints oe ete: Sat icc Une ata ae ee ae Re N aie AS! 9544 New company has exclusive right to collect debts and property 9545 Old chrporateiexistence: ceases 2. sek Si eee ole er aes 9545 Old liabilities attach to new company......... cece eee ese ces 9545 Contract of nrsurance: evidenced ‘hOwici.s wea evo ck Wonec cova Decree 9587 Contribution where there are several policies on one loss........ 9584 202 INSURANCE COMPANIES, OTHER THAN LIFE — Continued. SECTION Credit: guatanty-tompanyyc 22515355 es coves be See OP 9621 to 9623 Discontinuance and withdrawal of securities................+-.4- 656 Dividends — Of fire insurance scompatiies 4.25 wae ne eee oe ees 9532, 9535 Mutualcompaniy:s sdividents sce: suas a eae ee ee 9534, 9535 After determination of policy arr Ghat ARAB iydea ie ov ssl ai 1: 9585 Penalty for violating law respecting SBE eae ee ee 9533 “Profits,” “year,” sdefineds3.. cules pews a ae ee 9534 Reserve fiinds<:2 ce ee ee ee 9534 Scrip dividends. 2,5 Sivan ser op hor hon ewe ae ree Pe ae Rive. 9534 Surplus profits, dividends to be declared out of.............. 95382 Estimated: how. 2:55) sie eka a bod hes Se a 9532 Directors — Rlection: of- fitsteuss 34 ssn xe oktoike ek ee ao ac tals eee ae 9515 Liable personally for making certain investments........... 9521 Number sf. (ost: is 7 ee aa 9515 Powers. and -duties0f. Ass 2hta0 oe ee eee 9516, 9517 Qualineations se ne he hs ore ote aes De eng Oe ee 9515 Record, shall keep, and open for hspection..3 Cs a aes 9517 eri OF bees ah ke ee 9515 Mactancies <2) ss cohswa cae wand pact ae GO ne ee ee 9516 Voting ‘for, who may and How... .s0ss34>% sas ay som ctues gee os 9515 Domestic animal mutual protection association.................. 9608 Amount of applications necessary before commencing business 9616 Amount of risks necessary for continuation of company..... 9618 Reduction. below; proceedings; ete..2.0 0. 2s his cee sees 9618 Assessments and. collection thereof! 2... 0.6060 2c tye on 9608 Authority to commence business, certificate................- 9617 Bond “of. sectetary and-treasuret icc scstee pc otter oo ee 9619 Bond 2:0 AReASULEL take ee ee se Ce ae 9616 Certificate of organization, made and subscribed, how....... 9609 Acknowledged, what to contain../.......5..e..0eeeeees 9609 Filing with secretary of state, certified copy of evidence Of EXISTENCE a )%. FORE cs Sg A wale eas 9610 Commencing business, amount of application necessary to..... 9616 Statement ~as- to's -hhing. 8s ae tS Sees i eee 9616 WV eni: sia ¥ gases ha eons nec altee y Hea awa ew ae 9617 Gohstitution® “and: by-laws fis iad Kata os ee wo aoe 9612 Ditector’s Oaths. eho a Vas ES a ee Pe 9620 Election: of officers, termi‘: 2.2.76... 200. Pere Re rg Sa ini. e Dae ee 9611 ‘Examination of, by commissioner of insurance.............. 9615 Expense. of, payable by. company... =....000 0. cubes cases 9615 Forfeiture of right to do business, when................ 9614,. 9615 Of~charter: tors whales ono wis oe coe ee ee ae 9618 THCOLPOratiOneO yt Leis «Bh Re eae RU aie nae Wee on ee aah 9608 Insolvent, deémed*whiens os eae occ, Sees Meee a a ee ae 9618 Members, only may instites 22.2 6 cir a as Regie Sao ga eae 9611 Persons insuring, thereby become. ...........+.0-eceee 9612 Members’ may -besinstired: i405. eves ty oats Bee wee 9608 Name+: place*.oD4 6Ctr <.f0 co ote ag cat red eet ea cies Pome 9609 Number and residence of associates to form................ 9608 Powers: of