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 certifi cate 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 the 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.

in

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 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

business of accident and health insurance shall be subject to all requirements of existing or hereafter enacted law pertaining thereto and not inconsistent with the provisions of this Act.

$9. Nothing in this Act contained shall be construed to prevent any company authorized to transact the business of life insurance in this State from incorporating provisions in its policies of life insurance operating (a) to grant insurance against death by accident, or (b) in the event the insured shall become totally and permanently disabled from any cause, to safeguard the insurance against lapse, or to grant a special surrender value, or to grant an annuity payable for a limited period or during the life of the insured.

§ 10. This Act shall not apply to any fraternal beneficiary society or to any company or association operating on the assessment plan or to any mutual casualty company.

§ 11. 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, and all Acts or parts of Acts inconsistent with the provisions of this Act, are hereby repealed.

APPROVED June 21, 1919.

AN ACT to amend section 10 of an Act entitled “An Act to organize and regulate the business of life insurance", in force July 1, 1869, as amended.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That section 10 of an Act entitled "An Act to organize and regulate the business of life insurance", in force July 1, 1869, as amended, be, and the same is, hereby amended to read as follows, to-wit:

$10. If the Department of Trade and Commerce shall find, in the case of any company doing business under this Act, that the admitted assets of a stock life insurance company in excess of the minimum amount of capital stock required under this Act, or the admitted assets of a mutual life insurance company, are less than its liabilities, including the net value of its policies computed by the standard of valuation established by this section, such Department shall give notice to the company of the amount of such deficit as determined by it, and shall require that the deficit 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; provided

that, in the case of a stock life insurance company where the deficit shall exceed twenty per centum of such minimum capital stock, or in the case of a mutual life insurance company, the Department shall further notify the company to discontinue the issuance of new policies until the deficit shall have been made good.

If the deficit 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 the deficit 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 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.

The Department of Trade and Commerce shall annually make valuations of all outstanding policies, additions thereto, unpaid dividends and all other obligations of every life insurance corporation doing business in this State. All valuations made by it or by its authority shall be made upon the net premium basis. The legal minimum standard for valuation of contracts issued before the first day of January, 1908, shall be the Actuaries' or Combined Experience Table of Mortality with interest at 4 per centum per annum and for valuation of contracts issued on or after said date shall be the American Experience Table of Mortality with interest at 3-1/2 per centum per annum. The Department of Trade and Commerce may vary the standards of interest and mortality in the case of corporations from foreign countries as to contracts issued by such corporations in other countries than the United States, and in particular cases of invalid lives and other extra hazards; and value policies in groups, use approximate averages for fractions of a year and otherwise, and accept the valuation of the department of insurance of any other state or country if made upon the basis, and according to the standards not lower than herein required or authorized, in place of the valuation herein required.

Policies issued by companies doing business in this State may provide for not more than one year preliminary term insurance by incorporating in the provision thereof, specifying the premium consideration to be received, a clause plainly showing that the first year's insurance under such policies is term insurance, purchased by the whole or a part of the premium to be received during the first policy year.