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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. All 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 pay its pro rata share of such relief or reserve fund, or from receiving their pro rata of any such fund.

APPROVED June 21, 1919.

FHRATERNAL 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 & 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 accumula: tions 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 monev 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.

LIFE, ACCIDENT AND HEALTH.

§ 1. Who may engage in business. $ 4. Denosit with n e o art ment of Trade and Commerce. § 2. Corporations may avail themselves of provisions of Act. $ 5. Investment of capital stock, etc.

§ 3. Amendment of charter—recording certificate.

(SENATE BILL No. 307. APPRoved JUNE 21, 1919.)

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

lives of persons, may also, upon compliance with the requirements of this Act, engage in the business of insuring persons against bodily injury, disability or death resulting from accident, and providing benefits for disability caused by disease; or if such corporation be now or hereafter organized under the laws of this State for the sole purpose of insuring any person against bodily injury, disability or death resulting from accident, and providing benefits for disability caused by disease, it may also, upon compliance with the requirements of this Act, engage in the business of making insurance upon the lives of persons, and every insurance pertaining thereto or connected therewith and of granting or disposing of annuities. § 2. Any such corporation hereafter organized under the laws of this State for the purpose of making insurance upon the lives of persons or for the otherwise sole purpose of insuring persons against bodily injury, disability or death resulting from accident, and providing benefits for disability caused by disease, may avail itself of the provisions of this Act by including in its charter a declaration of its desire so to do. § 3. Any such corporation heretofore organized under the laws of this State for the purpose of making insurance upon the lives of persons or for the sole purpose of insuring persons against bodily injury, disability or death resulting from accident, and providing benefits for disability caused by disease, may avail itself of the provisions of this Act by amending its charter as hereinafter provided. Whenever the board of directors, managers or trustees of any such company desire to so amend the charter of said company, they may call a special meeting of the stockholders of said company, if the same is a stock company, or of the members of said company, if the same is a mutual company, or of the stockholders and members, if the same is a stock and mutual company, for the purpose of submitting the question of such change or amendments to a vote of such stockholders or members, or both, as the case may be. Said meeting shall be called by delivering personally or depositing in the postoffice, at least thirty days before the time fixed for such meeting, a notice properly addressed to each stockholder, or to each member, signed by a majority of said directors, managers or trustees, stating the time, place and specific object of such meeting. A general notice of the time, place and object of such meeting shall also be published for three successive weeks in some newspaper printed in or nearest the county in which the principal business office of said company is located. At any such meeting stockholders or members may vote in person or by proxy. Each stockholder, in the case of a stock company or of a stock and mutual company, shall be entitled to one vote for each share of stock held by him, and each member, in the case of a mutual company or of a stock and mutual company, shall be entitled to one vote for each one thousand dollars of insurance held by him, and each member shall have at least one vote; and votes representing two-thirds of all the stock in the case of a stock company, or of two-thirds of all the stock, if any, and of two-thirds of all the votes cast by the members present at the meeting in person or by proxy in the case of other companies, shall be necessary for the adoption of the proposed amendment. If it shall appear at any such meeting that a sufficient vote to adopt the same has been cast in favor of such proposed amendment, a certificate thereof, verified by the affidavit of the president, and under the seal of said company, shall be submitted to the Department of Trade and Commerce. If the said Department, upon examination of such certificate, finds that the proposed amendment has been adopted in accordance with the provisions of this section, then, upon receipt of the deposit required by the succeeding section of this Act, and upon evidence satisfactory to it, either through examination of the company or otherwise, that the requirement set forth in section 1 hereof, regarding capital stock or surplus, has been fulfilled, it shall cause such certificate to be recorded in a book kept for the purpose, and thereupon the amendment shall be and is hereby declared to be effected and in force. After the recording of the said certificate by the Department of Trade and Commerce as aforesaid, a like certificate of the amendment shall be filed for record in the office of the recorder of deeds of the county where the principal office of said insurance company is located, and said company shall also cause to be published in some newspaper, in or nearest |. county in which its principal office is located, a notice containing a copy of such amendment in its charter, for three successive weeks. § 4. Before any corporation of this State availing itself of the provisions of this Act shall engage in the forms of insurance business permitted hereby, it shall deposit with the Department of Trade and Commerce, if it has not already done so, at least two hundred thousand dollars ($200,000). Such deposit shall be in lieu of and for the same purposes as the deposits now required by law of life insurance companies and of accident and health insurance companies, as a condition precedent to the commencement of such classes of business. Such deposits shall be held in trust by the Department of Trade and Commerce for the purposes now or hereafter prescribed by law, and all securities so deposited shall be made to or assigned to the Director of such Department and to his successors, in trust, for such purposes. Any deposit held by the Department of Trade and Commerce, at the time this Act takes effect, in accordance with the provisions of an Act entitled, “An Act relating to insurance and permitting stock corporations organized under the laws of the State of Illinois to engage in the business of life, accident and health insurance; to regulate and control such business in this State, and to repeal all laws now existing which conflict with the provisions of this Act,” in force July 1, 1911, herein repealed, shall continue to be held by such Department in accordance with the provisions of this section. § 5. Any corporation of this State availing itself of the provisions of this Act shall thereafter invest its capital stock, surplus or other funds only in such investments as are permitted by the laws of this State to be acquired by life insurance companies of this State. § 6. Any life or casualty insurance corporation, except as hereinafter stated, organized under the laws of any other state or country, may be authorized to transact in this State the business of accident and

health insurance, or either of them, and in addition thereto, the business of life insurance, if so authorized by its charter; provided that it Possesses and maintains the minimum amount of capital stock, or surplus, or both together, as required of like companies of this State by this Act: And, provided, further, that it shall deposit with the Department of Trade and Commerce securities of the amount and character required hereby of like companies of this State, or, in lieu thereof, shall furnish a certificate of deposit from a state officer of one of the states of the United States, showing to the satisfaction of the Department of Trade and Commerce that the corporation has on deposit with such state officer the amount of deposit required hereby of like companies of this State, and that the same is held for the benefit and security of the policyholders of such corporation in the United States, which certificate shall be renewed annually. § 7. The minimum amount of capital stock, or surplus, or both together, required hereunder, shall be maintained at all times as an unimpaired fund for policyholders by any company availing itself of the provisions of this Act: Provided, that if the Department of Trade and Commerce shall find that any impairment exists therein, it shall give notice to the company of the amount of such impairment as determined by it, and require that the deficiency be made good within such period as it may designate in its notification, which shall be not less than fifteen days, nor more than ninety days, from the issuance of such notification; and, provided, further, that if such impairment shall exceed twenty per centum of such minimum capital stock or surplus, such Department shall notify the company to discontinue the issuance of new policies until the impairment shall have been made good. If the impairment be not made good within the period limited by the Department of Trade and Commerce in its notification, then, in the case of a company of this State, it shall be deemed insolvent and it shall be the duty of the Department of Trade and Commerce to take such proceedings against such company as may be authorized by law to be taken against insolvent life insurance companies, and, in the case of a company organized under the laws of any other state or country, its license to operate in this State shall be cancelled forthwith by the Department of Trade and Commerce. Any company or officer thereof that issues or delivers a new policy for and on behalf of such company, after notice has been given by the Department of Trade and Commerce to discontinue the issuance of new policies, or after the expiration of the period limited in its notification, and, in either case, before such impairment shall have been made good, shall forfeit for each offense the sum of one thousand dollars, to be recovered in any court of competent jurisdiction in any [an] action brought in the name of the People of the State of Illinois by the Attorney General on application by the Department of Trade and Commerce. § 8. Any corporation availing itself of the provisions of this Act shall, with respect to its business of life insurance, be subject to all requirements of existing or hereafter enacted law pertaining thereto and not inconsistent with the provisions of this Act, and with respect to its

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