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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Act,” in force July 1, 1911, and all Acts or parts of Acts inconsistent with the provisions of this Act, are hereby repealed.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.

LIFE COMPANIES.

§ 1. Amends section 10, Act of 1869. § 10. When assets less than liabilities — procedure —policy valuations— preliminary term in

surance — premiumpayment period defined.

(HOUSE BILL No. 326. APPROVED JUNE 28, 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 loss 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 oceed 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 ompany 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 3-14, 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.

If the premium charged for term insurance under a limited payment life preliminary term policy providing for the payment of all premiums thereon in less than twenty years from the date of the policy or under an endowment preliminary term policy, exceeds that charged for like insurance under twenty payment life preliminary term policies of the same company, the reserve thereon at the end of any year, including first, shall not be less than the reserve on a twenty payment life preliminary term policy issued in the same year and at the same age together with an amount which shall be equivalent 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 twenty payment life preliminary term policy and the full reserve at such time of such a limited payment life or endowment policy. The premium-payment period is the period during which premiums are concurrently payable under such twenty payment life preliminary term policy and such limited payment life or endowment policy.

APPROVED June 28, 1919.

MUTUAL INSURANCE COMPANIES. § 1. Adds sections 22a and 22b, Act § 22b. Fees required. of 1915.

§ 22a. Subject to visitation
and inspection by
Director of Trade
and Commerce.

(House BILL No. 203. APPROVED JUNE 6, 1919.)

AN ACT to amend an Act entitled, “An Act to provide for the organizasion and management of mutual insurance corporations, other than life; and repealing certain Acts and parts of Acts therein referred to”, approved June 29, 1915, in force July 1, 1915, by adding additional sections to be known as sections 22a and 22b. 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 mutual insurance corporations, other than life; and repealing certain Acts and parts of Acts therein referred to", approved June 29, 1915, in force July 1, 1915, be amended by adding additional sections to be known as sections 22a and 22b and to read as follows: § 22a. All corporations to which this Act is applicable, with their books, papers and vouchers, shall be subject to visitation and inspection by the Director of Trade and Commerce, or such person as he may designate. The Director of Trade and Commerce may address any inquiries to any such corporation in relation to its doings or condition or any other matter connected with its transactions relative to the business contemplated by this Act. All officers of such corporation shall promptly reply in writing to all such inquiries, under the oath of its president, secretary or other officers if required.

§ 22b. The following fee shall be paid to the Director of Trade and Commerce by all corporations operating under the provisions of this Act; for filing articles of association, ten dollars ($10); for filing annual statement, ten dollars ($10); for issuing license, five dollars ($5); for certificate of compliance, one dollar ($1); for the necessary expenses incurred therein in making examination of companies operating under the provisions of this Act.

APPROVED June 6, 1919.

TOWNSHIP INSURANCE COMPANIES.

§ 1. Amends section 8, Act of 1874. § 8. Policies not to exceed five years—an amount not to exceed $7,500.00.

(House BILL No. 222. APPROVED MAY 21, 1919.)

AN ACT to amend an Act entitled, “An Act to revise the law in relation to township insurance companies,” approved March 24, 1874, in force July 1, 1874, as subsequently amended, by amending section eight (8) thereof. 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 revise the law in relation to township insurance companies,” approved March 24, 1874, in force July 1, 1874, as subsequently amended, be and the same is hereby amended by amending section eight (8) to read as follows: $ 8. Such companies may issue policies only on detached dwellings, barns (except livery, boarding and hotel barns) and other farm buildings, school houses and churches, and such property as may be properly contained therein; also other property on the premises and owned by the insured; also livestock (hay and grain in the stack) on the premises of the insured and anywhere in the territory of the company, for any time not exceeding five years and not to extend beyond the limited duration of the charter and for an amount not to exceed seven thousand five hundred dollars ($7,500.00) on any one risk. Said policies may cover loss of or damage to livestock, harness and vehicles temporarily taken from the territory of the company; provided said livestock, harness and vehicles be not removed to exceed twenty-five miles from the territory of the company. Such companies may underWrite or reinsure the whole or any part of the risks of other township fire insurance companies, and may reinsure the whole of [or] any part of their risks in other township fire insurance companies organized under this Act. All persons so insured shall give their obligations to the company, binding themselves, their heirs, and assigns to pay their pro rata share to the company of the necessary expenses, and of all losses by fire or lighting which may be sustained by any member thereof during the time for which their respective policies are written, and they shall also at the time of the effecting of the insurance, pay such percentage in cash, and such other charge as may be required by the rules and bylaws of the company. APPROVED May 21, 1919. —40 L

ORGANIZATION OF COMPANIES.

§ 1. Examinations by Director of Trade § 4. Misrepresentations. and Commerce.

§ 2. Sale of stock.
§ 3. Time limit for organization.
(HOUSE BILL No. 582. APPROVED JUNE 28. 1919.)

§ 5. Penalties.

AN ACT in relation to the promotion and organization of insurance corporations. SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That the Director of Trade and Commerce shall, as often as deemed expedient, make or cause to be made an examination into the affairs of any insurance corporation in process of organization on the capital stock plan under the terms of the following Acts, to-wit: (a) “An Act to incorporate and to govern fire, marine and inland navigation insurance companies doing business in the State of Illinois. (Approved March 11, 1869, as amended,) (b) “An Act to organize and regulate the business of life insurance. (Approved March 26, 1869, as amended,) (c) “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, as amended,) or (d) “An Act to provide for the organization, management and regulation of surety companies, (Approved April 17, 1899, as amended.) Any such corporation in process of organization, its incorporators and the officers, agents or employees thereof shall be subject to the provisions of the respective Act under which it is being organized, so far as the same may relate to examinations by the Department of Trade and Commerce as fully as if its organization had been completed. All the expenses of any examination made under authority of this section shall be paid by the corporation examined. § 2. (a) No person, firm or corporation shall, for the purpose of organizating or promoting any insurance corporation to be organized or proposed to be organized within or without this State, or promoting the sale of stock of such corporation by it after organization as principal or agent, sell or agree or attempt to sell within this State any stock in such insurance corporation, unless the contract of subscription or of sale shall be in writing and contain a provision in the following language: “No sum shall be used for commission, promotion and organization expenses on account of any share of stock in this corporation, in excess of . . . . . . per cent of the amount actually paid upon separate subscription (or in lieu thereof there may be inserted of $. . . . . . . . per share from every fully paid subscription), for such stock, and the remainder of such payments shall be held or invested as authorized by

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