entitled "An Act to provide for the organization and management of fraternal beneficiary societies for the purpose of furnishing life indemnity or pecuniary benefits to beneficiaries of deceased members or accident or permanent indemnity disability to members thereof; and to control such societies of this State and of other states doing business in this State, and providing and fixing the punishment for violation of the provisions thereof, and to repeal all laws now existing which conflict herewith", approved and in force June 22, 1893, as subsequently amended, be amended to read as follows:

$72. Any corporation, association or society organized under the provisions of this Act may change its articles of association in the manner prescribed by its own rules, but no such change shall be of legal effect until a certificate setting forth fully and definitely the changes proposed shall have been submitted to and approved by the Director of Trade and Commerce and filed in his office. Every corporation, association or society organized having adopted such change in its articles of association shall comply with the provisions of this section within sixty (60) days.

APPROVED May 21, 1919.

§ 1.

FRATERNAL BENEFICIARY SOCIETIES.

Provides that funds and assets be held for benefits promised in certificates. (SENATE BILL No. 354. APPROVED JUNE 16, 1919.)

AN ACT relating to fraternal beneficiary societies and providing that funds and assets shall be held for the benefits promised in its certificates.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: A fraternal beneficiary society. heretofore or hereafter organized in or admitted to this State, which shall have issued or shall hereafter issue certificates on rates which shall create and maintain a reserve thereon, without reference to the particular mortality table used, may at its option, as may be provided in its articles of incorporation, constitution, or by-laws, provide that the assets representing the reserves contributed upon such certificates shall be maintained separate and distinct from other assets of said society in trust for and to be applied to the protection and payment of the sums agreed to be paid as expressed in said certificates upon which such reserve was contributed; provided that equitable provision may be made for a merger of the mortality upon all members, and that such separation of reserves aforesaid shall not be rescinded or discontinued; and provided that any fraternal beneficiary society, heretofore or hereafter organized in or admitted to this State, may at its option as may be provided in its articles of incorporation, constitution or by-laws, classify its members with or without the segregation of the fund contributed by either class of members for the payment of the benefits provided for in the certificates held by such members.

APPROVED June 16, 1919.

AN ACT to legalize the consolidations, mergers or reinsurance agreements of fraternal beneficiary societies.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That in all cases where a fraternal beneficiary society, organized under the laws of the State of Illinois, has entered into a contract of reinsurance or articles of consolidation or merged with any other fraternal beneficiary society, whether organized under the laws of the State of Illinois or any other state, without express authority of law, whereby members of such societies have been transferred from one society to another, or certificates of membership issued by one society have been assumed by another society, or new certificates issued by such reinsuring or consolidated society in lieu of certificates held by such members, notwithstanding the fact that such members were at the time of such reinsurance, merger or consolidation above the age of applicants for membership as limited by law or by the certificate of association of such reinsuring society, or were not at the time of such reinsurance, consolidation or merger medically examined as provided by law, each such contract of reinsurance or articles of consolidation or merger, except as hereinafter provided, is hereby declared to be legal and valid and to be in full force and effect.

No such reinsuring or consolidated society shall interpost [interpose] any defense in any action now pending, or hereafter brought, on any such certificate, based upon the fact that the member described in such certificate was above the age of applicants for membership as limited by law or by the certificate of association of such reinsuring society at the time of such reinsurance, merger or consolidation, or was not medically examined at such time, provided such member shall have complied in all other respects with all of the laws, rules and regulations of such reinsuring society applicable to such member.

§ 2. The validation of such contracts as provided for in section 1 hereof shall not be taken as precluding the right of any society or of any member of any such society, party to such contract, to bring an appropriate action for the recovery, for and on behalf of any such society, of any sum or sums of money or assets of any kind, wrongfully or illegally paid out or taken from any such society as and for commissions, fees or other similar expenditures, in furtherance of any such contracts of consolidation, merger or reinsurance; and the reasonableness of any such sums or transfer of assets, paid out as compensation, commission or otherwise, may be properly inquired into in such action.

3. Whereas, an emergency exists, therefore this Act shall be in full force and effect from and after its passage.

APPROVED June 21, 1919.

FRATERNAL BENEFICIARY SOCIETIES.

§ 1. Amends section 1, Act of 1893.

§ 1. Defines corporation-pay

ment of benefits-memberships confined to certain classes.

(SENATE BILL NO. 156. APPROVED JUNE 21, 1919.)

AN ACT to amend an Act entitled, "An Act to provide for the organization and management of fraternal beneficiary societies for the purpose of furnishing life indemnity or pecuniary benefits to beneficiaries of deceased members, or accident or permanent indemnity disability to members thereof, and to control such societies of this State and of other states doing business in this State, and providing and fixing the punishment for violation of the provisions thereof, and to repeal all laws existing which conflict therewith," approved and in force June 22, 1893, as subsequently amended, by amending the first section of such Act.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That an Act entitled, "An Act to provide for the organization and management of fraternal beneficiary societies for the purpose of furnishing life indemnity or pecuniary benefits to beneficiaries of deceased members, or accident or permanent indemnity disability to members thereof, and to control such societies of this State and of other states doing business in this State, and providing and fixing the punishment for violation of the provisions thereof, and to repeal all laws now existing which conflict therewith," approved and in force June 22, 1893, as subsequently amended, be and the same is hereby amended, by amending the first section of such Act to read as follows:

§ 1. A fraternal beneficiary society is hereby declared to be. a corporation, society or association formed, organized or carried on for the sole benefit of its members and their beneficiaries, and not for profit. Each society shall have a lodge system, with ritualistic form of work and representative form of government, and may make provisions for the payment of benefits in case of disability and death, or of either, resulting from either disease, accident or old age of its members. In all meetings of any such society, organized under this law or heretofore organized, no member shall be allowed to cast more than one vote in any election of its officers, or on any question submitted therein, and the members, officers, representatives or delegates of a fraternal beneficiary society shall not vote by proxy. Any such society, order or association may create, maintain and disburse a reserve fund in accordance with its constitution and by-laws. Such reserve fund, if any, shall represent certain prescribed accumulations or percentage, retained for the benefit. of its members or their beneficiaries, and no part thereof shall be used for expenses, nor for any purpose except the payment of death and disability claims. The payment of such benefits in all cases being subject to compliance by the member with the contract rules and laws of the society: Provided, the period in life at which payment of physical disability benefits on account of age may commence shall not be under seventy (70) years. The fund from which the payments of such benefits

shall be made, and the fund from which the expenses of such society. shall be defrayed, shall be derived from assessments or dues collected from its members. Any fraternal benefit society which shall collect and maintain a reserve fund may, by its constitution and by-laws, grant to its members such extended and paid up protection, or such withdrawal equities, as shall not exceed in value the portion of the reserve to the credit of such member or members to whom such grant is made. Payments of death benefits shall only be paid to the families, heirs, blood relations, affianced husband or affianced wife of or to persons dependent upon the members: Provided, that a member who is totally and permanently disabled, either from accident, disease or old age, or is without means of support, may, with the consent of the society, if the by-laws so provide, make a charitable institution, trust company, the lodge or subordinate body of the society of which he is a member, or any person or persons entering into an agreement in writing in manner and form satisfactory to said society, to support such member, the beneficiary in his certificate: Provided, that a member having no wife or children. living may, with the consent of the society, make a charitable institution his beneficiary: Provided, however, that societies formed to include only the membership of any religious denomination may be permitted to provide that benefits under their certificates of membership may be paid to religious or charitable institutions. The members of any religious denomination may incorporate under this Act, and shall only be required to have a lodge or branch system and a representative form of government.

Membership in such corporation shall be confined to the members of such religious organization. Commercial travelers shall also be allowed to incorporate under the provisions of this Act, but membership of such incorporation shall be confined to those actively engaged as commercial travelers, and officers, buyers or sellers for corporations, associations and co-partnerships, or individuals who employ commercial traveling men. Such commercial travelers' incorporation shall have a lodge or branch system and representative form of government. such societies shall be governed by this Act, and shall be exempt from the provisions of all insurance laws in this State, and no law hereafter passed shall apply to them, unless they be expressly designated therein: Provided, that this Act shall not be construed to prevent any society having a supreme lodge with separate jurisdiction, which by their law provides for a general relief or reserve fund, for making assessments to its pro rata share of such relief or reserve fund, or from receiving their pro rata of any such fund.

pay

APPROVED June 21, 1919.

FRATERNAL BENEFICIARY SOCIETIES-RESERVE FUNDS.

§ 1. Amends section 1, Act of 1903.

§ 1. Investment of funds-approval by insurance superintendent.

(SENATE BILL No. 366. FILED JUNE 24, 1919.)

AN ACT to amend section 1 of, "An Act to regulate and control the investment and safekeeping of the reserve funds of fraternal beneficiary societies, and to enable such societies to deposit their reserve fund securities in the custody of the State of Illinois, and provide for the registry thereof and provide compensation therefor and providing a penalty for the violation thereof," approved May 14, 1903, in force July 1, 1903.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That "An Act to regulate and control the investment and safekeeping of the reserve funds of fraternal beneficiary societies, and to enable such societies to deposit their reserve fund securities in the custody of the State of Illinois, and to provide for the registry thereof and provide compensation therefor and providing a penalty for the violation thereof," approved May 14, 1903, in force July 1, 1903, is amended by amending section 1 thereof to read as follows: § 1. It shall be lawful for any fraternal beneficiary society organized or doing business in this State, to invest its funds or accumulations in the stocks or bonds of the United States or of this State, or of any county, city or town in this State, or any State or National bank, or mortgages (being first liens) on real estate being worth at least twice the amount of the money loaned thereon, and such other securities only as are approved by the Insurance Superintendent of this State.

FILED June 24, 1919.

This bill having remained with the Governor ten days. Sundays excepted, the General Assembly being in session, it has thereby become a law. Witness my hand this twenty-fourth day of June, A. D. 1919. LOUIS L. EMMERSON, Secretary of State.

AN ACT relating to the business of life, accident and health insurance, and to repeal a certain Act therein named.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That any corporation which possesses a capital stock fully paid in, in cash, of at least two hundred thousand dollars ($200,000.), and any mutual or stock and mutual corporation which possesses a capital stock fully paid in, in cash, or a surplus, or both together, amounting to not less than two hundred thousand dollars ($200,000.), and which is now or hereafter organized under the laws of this State for the purpose of making insurance upon the