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DEPOSIT OF SECURITIES WITH INSURANCE SUPERINTENDENT. § 1. Companies may depositsuch securities as are lawful investments—substitution of othersecurities.

(SENATE BILL No. 299. APPRov ED JUNE 25, 1915.) AN ACT to permit any insurance corporation, company, association or other organization authorized to do an insurance business in this State to deposit securities with the Insurance Superintendent of the State of Illinois, to substitute other securities therefor, and to authorize the Insurance Superintendent of the State of Illinois to certify to such deposits. SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That any insurance corporation, company, association or other organization authorized to do an insurance business in this State may deposit with the Insurance Superintendent of the State of Illinois, in addition to any deposits now authorized or required to be made, securities of such character as are lawful investments of the corporation, company, association or other organization, not less, however, than the aggregate amount of twenty-five thousand dollars, in current market value, and the Insurance Superintendent shall receive such securities and hold the same in trust for the equal benefit and protection of all the policyholders or members of such corporation, company, association or other organization, and so long as such corporation, company, association or other organization shall continue solvent, he shall permit it to collect the interest or dividends thereon, and from time to time withdraw such securities or any part thereof, on depositing with the Insurance Superintendent other securities of like character and of equal value to those withdrawn, and upon request of the corporation, company, association or other organization so depositing, the Insurance Superintendent shall certify to the same under the seal of his office. APPROVED June 25th, 1915.

FIDELITY AND CASUALTY COMPANIES-REGULATION.

$ 1. Surety or casualty companies may engage in ; 5. Investment of capital stock or surplus. }.} and casualty business without addi

tional capital or deposits upon compliance $ 6. Foreign companies authorized by charter

with Act. to do a casualty and fidelity business— $ 2. How new company may avail itself of provi- license.

sions of Act. $ 7. Subject to all requirements of existing laws.

§ 3. Companiesheretofore organized—declaration ; 8. Limit to risk or hazard. what to contain—amendment to charter.

$ 4. Deposit with Insurance Superintendent. (SENATE BILL No. 407. Approved JUNE 29, 1915.) AN ACT relating to insurance and permitting certain stock corporations organized under the laws of the State of Illinois or of any other state of the United States or of any foreign country to engage in the business of guaranteeing the fidelity of persons holding public or private places of trust and the performance by persons, firms and corporations of contracts, bonds, recognizances and undertakings of every kind, and of becoming surety on bonds, required by law, and on every kind of contract, obligation and undertaking of persons, firms and corporations, and to do a casualty insurance business; to regulate and control such business in this State, and to repeal all laws now existing which conflict with the provisions of this Act. SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That any corporation which —31 L

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possesses a capital stock fully paid in cash as large as is required by the laws of this State of corporations authorized to transact a surety business and to become the surety on bonds required by law in this State, and which is now or may hereafter be organized under the laws of the State of Illinois for the purpose of guaranteeing the fidelity of persons holding public or private places of trust and the performance by persons, firms and corporations of contracts, bonds, recognizances and undertakings of every kind and of becoming surety on bonds required by law, and on every kind of contract, obligation and undertaking of persons, firms and corporations, or for any of such purposes, may also upon compliance with the requirements of this Act, and without any additional capital or deposit being required of such corporation engaged in the business of casualty insurance of as many kinds as the capital stock of said corporation would entitle it to engage in as provided for by the laws of this State relating to casualty companies; or if such corporation be now or hereafter organized under the laws of the State of Illinois for the purpose of engaging in a casualty insurance business it may also upon compliance with the requirements of this Act, without any additional capital or deposit being required of such corporation, engage in the business of guaranteeing the fidelity of persons, holding public or private places of trust, and the performance by persons, firms and corporations of contracts, bonds, recognizances and undertakings of every kind and of becoming surety on bonds required by law, and on every kind of contract, obligation, and undertaking of persons, firms and corporations: Provided that, no corporation having a capital stock of less than four hundred thousand dollars shall be authorized to do a surety or guaranty business as last above described and at the same time engage in the business named in sub-division 2 of section 1 of an Act entitled, “An Act to incorporate and to govern casualty insurance companies and to control such companies of this State and of other States doing business in the State of Illinois, and providing and fixing the punishment for violation of the provisions thereof, and to repeal all laws now existing which conflict therewith,” (approved April 21, 1899, in force July 1, 1899). 2. Any such corporation hereafter organized under the laws of the State of Illinois for the purpose of engaging in the surety business or the casualty insurance business may avail itself of the provisions of this Act by including in its original charter a declaration of its desire so to do, or thereafter by complying with the requirements of section 3 of this Act. § 3. Any such corporation heretofore organized under the laws of the State of Illinois for the purpose of engaging in the surety business or the casualty insurance business may avail itself of the provisions of this Act by filing with the Insurance Superintendent a declaration of its desire so to do. Such declaration shall set forth the amount of the capital stock of the corporation which has been fully paid in, in cash, the nature of the insurance business it is proposed to transact thereafter; that the proposed change in the business of the corporation has been approved by the holders of more than two-thirds of the entire capital stock of the corporation, and that such approval was given at a duly held meeting of the stockholders of the corporation. Such declara

tion shall be signed by a majority of the board of directors of the corPoration and duly acknowledge by the subscribers before a person authorized to take acknowledgments. If such declaration shall be found by the Insurance Superintendent to be in due form, he shall, deliver to the corporation a certified copy of the declaration. Such certified copy of the declaration, when filed for record in the office of the recorder of deeds in the county in which the corporation is located, shall become and be an amendment to the charter of the corporation and its authority to transact the business of insurance therein set forth. § 4. Before any such corporation organized under the laws of the State of Illinois taking avail of the provisions of this Act shall engage in the forms of insurance business permitted hereby, it shall deposit With the Insurance Superintendent, if it has not done so already, at least $100,000 on account of its business. Such deposit shall be in lieu of and for the same purposes as the deposits of like amount now required by law of this State of surety companies and casualty insurance companies as a condition precedent to the commencement of such classes of business. Such deposit shall be held in trust by the Insurance Superintendent for the respective purposes now or hereafter prescribed by law, and all securities so deposited shall be made to or assigned to him in trust for such purposes. § 5. Any such corporation organized under the laws of the State of Illinois taking avail of the provisions of this Act shall thereafter invest its capital stock, surplus or any other funds only in such investments as are permitted by the laws of the State of Illinois to be acquired by surety companies or casualty insurance companies of this State. § 6. Any casualty insurance corporation organized under the laws 9s any other State of the United States or of any foreign country heretofore or hereafter licensed to transact a casualty insurance busi* in this State and authorized by its charter or articles of incorporao to act as surety or guarantor, and which shall have a capital as o *S is required by the law of this State of corporations authorized . ot a surety business and to become the surety on bonds required ; *" in this State, and which shall have made a deposit of securities 0 the value, and in the manner, required by the laws of this State so the transaction of a surety business by corporations of other . than Illinois or of any foreign country, may also without any in | o capital or deposits being required of such corporation, engage of o Carry on in this State the business of guaranteeing the fidelity o holding public or private places of trust, and the performnizan Y persons, firms and corporations of contracts, bonds, recog..". and undertakings of every kind, and of becoming surety on ...” by law, and on every kind of contract, obligation and wo ". of persons, firms and corporations; and any corporation an o under the laws of any other State of the United States or of bus ". country heretofore or hereafter licensed to transact a surety and m. to become the surety on bonds required by law in this State, e busi orized by its charter or articles of incorporation to engage in oil..". of casualty insurance may also, without any additional State .." deposit being required of such corporation engage in this the business of casualty insurance of as many kinds as the

capital stock of said corporation would entitle it to engage in as provided by the laws of this State relating to casualty companies, subject however, to the same requirements with reference to capital stock as are imposed upon like corporations organized under the laws of this State by the provisions of section 1 of this Act: Provided, that no corporation organized under the laws of any other State of the United States or of any foreign country shall be authorized to carry on in this State any kind of casualty insurance business unless its capital stock shall be as large as is required by the laws of this State for the carrying on of all the kinds of casualty insurance business which such corporation is engaged in, in any other state of the United States or any foreign country, nor, shall any such corporation be authorized to carry on such additional kinds of business in this State without first having obtained a license so to do from the Insurance Superintendent in the manner provided by law. § 7. Any corporation taking avail of the provisions of this Act and thereafter engaging in the surety business shall, with respect to its surety business, be subject to all requirements of existing law pertaining thereto, and not inconsistent. with the provisions of this Act, and with respect to its casualty insurance business shall be subject to all requirements of existing law pertaining thereto and not inconsistent with the provisions of this Act. § 8. No corporation engaged in a surety or casualty business in this State shall expose itself to loss on any one risk or hazard to an amount exceeding 10% of its paid up capital stock unless the excess shall be re-insured in some other reputable and reliable company authorized to transact business in this State. § 9. In addition to the powers conferred upon the Insurance Superintendent of this State by law, and not in limitation thereof, the Insurance Superintendent is authorized to revoke the license of any such corporation to carry on any of its business in this State upon the failure of such corporation to comply with all the provisions of law of this State relating to each of the kinds of business in which such companies may engage. All Acts or parts of Act inconsistent with the provision of this Act are hereby repealed. . . APPROVED June 29th, 1915.

- MUTUAL COMPANIES, OTHER THAN LIFE—ORGANIZATION. § 1. Formation of mutual insurance company. § 13. Policyholder member of corporation—vote.

§ 2. Must subscribe and certify to articles of $ 14. Premium—liability of members may be association—what shall state. limited—maximum liability shall be stated in policy. § 3. Submission to Insurance Superintendent— filing. $ 15. When policy may be issued for cash premium and without contingent liability. $ 4. What name shall contain. § 16. Investment of assets. $ 5. No name similar to any name in use shall be adopted. $ 17. Unearned premiums and reserves.

$ 6. When corporation shall have legal existence $ 18. When assets not equal to unearned pre—by-laws. mium reserve and other liabilities—assess

ment. $ 7. Contracts—kinds of insurance. § 19. Director, etc., may advance money for # 8. What insurance may be transacted by conduct of business—interest.

companies. - $ 20. Annual statement. $ 9. License—conditions under which licenses

issued. $ 21. Admission of foreign companies—requireInents. § 10. When more than one kind of insurance written—separate policy—accounts. § 22. Mutual company heretofore organized may

come under Act. $ 11. Public or private corporations, etc., may hold policies. $ 23. How Act construed as to existing statutes.

§ 12. Powers. $ 24. Repeal.
(House BIll No. 667. Approved JUNE 29, 1915.)

AN AQT entitled: An Act to provide for the organization and management of mutual insurance corporations, other than life: and repealing certain Acts and parts of Acts therein referred to. SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That any number of persons, not less than twenty, a majority of whom shall be bona fide residents of the State of Illinois, by complying with the provisions of this Act, may become, together with others who may hereafter be associated with them or their successors, a body corporate, for the purpose of carrying on the business of Mutual Insurance as herein provided. § 2. Any person proposing to form any such corporation shall subscribe and certify to Articles of Association specifying: 1. The name, the purpose for which formed, location of its principal or home office, which shall be within the State. 2. The names and addresses of those composing the Board of Directors in which the management shall be vested until the first meeting of members. 3. The name and place of residence of the incorporators. § 3. The Articles of Association of each such corporation shall be submitted to the Insurance Superintendent for his approval and, if prepared in accordance with this Act, he shall approve the same, and such Articles shall be filed with the Insurance Superintendent. 4. The name of every such corporation shall contain the word “Mutual,” and shall end with the word “Company,” “Corporation,” or “Incorporated.” § 5. No such name shall be adopted by such corporation which is so similar to any name already in use by any such existing corporation, company or association, organized or doing business in the United States, as to be confusing or misleading.

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