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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.

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AN ACT to amend an Act entitled, "An Act to provide for the organizalion 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.

§ 1.

APPROVED June 6, 1919.

TOWNSHIP INSURANCE COMPANIES.
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.

ORGANIZATION OF COMPANIES.

Examinations by Director of Trade § 4. Misrepresentations.

$ 1.

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(HOUSE BILL No. 582. APPROVED JUNE 28, 1919.)

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

the law governing such insurance corporation and held by the organizers (or trustees, as the case may be) and the directors and officers of such corporation after organization as bailees for the subscriber, to be used only in the conduct of the business of insurance by such corporation after having been licensed therefor by proper authority."

(b) The term "stock" as used in this section, shall include bonds and any other evidences of indebtedness or of interest in the profits of any such corporation.

(c) Funds and securities held by the corporators, organizers, trustees, directors or officers as bailees shall be deposited with a bank or trust company of this State until such corporation has been duly authorized to carry on the business of insurance for which it is being organized.

(d) Every contract within sub-section (a) shall contain a statement giving the names of the corporators (or trustees, as the case may be) and their residence, the par value of the shares and the prices at which shares have been, are, or are to be sold, the number of shares at each price, the total number of shares, and be filled in with the percentage or amount which may be used for commission, promotion or organization expenses, which together shall not exceed fifteen per cent of the amount actually paid upon separate subscriptions for such stock, provided that the provisions of this sub-section in regard to limitation of expenses shall not apply during the organization of any domestic stock insurance corporation of which the declaration of organization has been filed with the Department of Trade and Commerce and approved and certified to by it, as required by law, prior to the taking effect of this Act.

§3. The organization of any domestic stock insurance corporation referred to in section 1 hereof, now in process of organization or hereafter organized must be completed within two years from the date of filing of the declaration of organization with the Department of Trade and Commerce and approval and certification to by it as required by law.

If the organization of any such corporation be not completed within the said period then the Department of Trade and Commerce is empowered to proceed in any court of competent jurisdiction in the county in which the principal office of the company is to be located as prescribed in its charter for an injunction to restrain its further organization, to annul the same, apply for a receiver to liquidate its affairs and for such other relief as may be deemed just.

4. No such corporation referred to hereunder and no officer, director, agent or employe thereof or any person, firm or corporation shall issue, circulate or employ or cause or permit to be used, issued, circulated or employed, any circular or statement, whether printed, or oral, of any sort, misrepresenting or exaggerating the earnings of such corporations or the value of their corporate stock or other securities or the profits to be derived, either directly or indirectly, from their organization and management.

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5. Any person, partnership, organization, association or corporation, or any member of such partnership, organization or associa

tion or officer or director of such corporation violating any of the provisions of this Act shall be punished by a fine of not less than one hundred dollars and not to exceed one thousand dollars or by imprisonment for not more than one year, or by both such fine and imprisonment as may be determined by the court.

APPROVED June 28, 1919.

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AN ACT in relation to the taxation of non-resident corporations, companies and associations for the privilege of doing an insurance business in this State.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That each non-resident corporation, company and association licensed and admitted to do an insurance business in this State shall, except as herein otherwise provided, pay an annual State tax for the privilege of doing an insurance business in this State, equal to two per centum on the gross amount of premiums received during the preceding calendar year on contracts covering risks within this State, which gross amount of premiums shall include all premiums received during the preceding calendar year on all policies, annuity contracts, certificates, renewals, policies subsequently cancelled, insurance and reinsurance executed, issued and delivered during such preceding calendar year, and all premiums that are received during such preceding calendar year on all policies, annuity contracts, certificates, renewals, policies subsequently cancelled, insurance and reinsurance executed, issued and delivered in all years prior to such preceding calendar year, whether such premiums were in the form of money, notes, credits or any other substitute for money, after deducting from such gross amount of premiums the amount of returned premiums on cancelled policies covering risks within this State (but returns on life insurance policies, commonly known as surrender values, shall not be considered returned premiums on cancelled policies); also the amount paid for reinsurance of risks within this State to companies duly licensed to transact business in this State, and also the amount returned to holders of policies on risks within this State as dividends, paid in cash or applied in the reduction of premiums.

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