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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. § 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.

TAXATION OF NON-RESIDENT COMPANIES.

Notice of tax.
§ 18. Hepeal.

§ 1. Annual State tax. § 11. Collecting judgment. § 2. Privilege tax. § 12. Revocation of license. § 3. Report to Department of Trade § 13. Payment for unexpired portion and Commerce. of first year. § 4. Additional reports. § 14. Tax fixed—how computed—penalty on delinquent tax. $ 5. Assessment of tax. § 15. License. $ 6. When payable. § 16. Reservations on revocation of $ 7. Penalty for non-compliance. license. $ 8. Objections. § 17. Limitations on construction of Act. § 9. §

10. Penalty for non-payment.
(HOUSE BILL No. 663. APPROVED JUNE 28, 1919.)

AN ACT in relation to the laration 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.

There shall be deducted from the tax thus computed the amount (if any) paid by such corporation, company or association, to cities and villages as a tax on premiums received by such corporation, company or association in such cities and villages during the preceding calendar year for the benefit of organized fire departments, and the remainder shall be assessed against such corporation, company or association as its annual privilege tax. This Act shall apply to all corporations, companies, and associations organized under the laws of any other state, territory or foreign country and admitted to transact the business of insurance in this State on the stock, mutual, stock and mutual, or assessment plan. This Act, however, shall not apply to fraternal beneficiary associations or societies. The tax herein provided for shall be in lieu of all license fees or privilege or occupation taxes levied or assessed by any municipality in this State, and no municipality shall impose any license fee or privilege or occupation tax upon any such corporation, company or association, or any of its agents, for the privilege of doing an insurance busiless therein; but this Act shall not be construed to prohibit the levy and collection of any State, county or municipal taxes upon the real and personal property of such corporations, companies and associations, nor to prohibit the levy and collection of taxes for the benefit of organized fire departments in cities and villages, nor to prevent the levy and collection of taxes for the purpose of maintaining the office of the Fire Marshal of this State and paying the expenses incident, nor to prevent the levy and collection of the tax authorized by section 30 of an Act entitled, “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, in force July 1, 1869, as amended. § 2. If the laws of another state or territory shall require of insurance corporations, companies or associations organized under the laws of this State, and doing business in such other state or territory, payments for taxes, fines, penalties, certificates of authority, license fees or otherwise, on a basis or rate which will produce amounts greater than would be produced by the application of the basis or rate provided for herein and by any other laws of this State, then and in every such case insurance corporations, companies and associations of such state or territory, when admitted and licensed to do an insurance business in this State, shall be required to pay for such privilege on the same basis or rate as is imposed by the laws of such state or territory upon similar insurance corporations, companies and associations organized under the laws of this State. In the imposition of any privilege tax under this section all of the provisions of this Act, so far as applicable, shall be observed. § 3. Each insurance corporation, company and association subject to the provisions of this Act shall, in addition to all other statements and reports required by law, make a report in writing to the Department of Trade and Commerce, not later than the first day of August, A. D. 1919, and not later than the first day of March in each year thereafter, on such forms as the Department of Trade and Commerce may prescribe. Such report shall, among other things, state: (1) The name of the corporation, company, or association. (2) The logation of its principal office (if any) in this State, and the location of its principal office in the state of its domicile or entry. (3) The gross amount of premiums received by it during the preceding calendar year ending December 31, 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 callcelled, insurance and reinsurance executed, issued and delivered during such prededing |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. (4) 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), the amount paid for reinsurance of risks within this State to companies duly licensed to transact business in this State, and the amount returned to holders of policies on risks within this State as dividends, paid in cash or applied in the reduction of premiums. (5) The amount (if any) paid to cities and villages as a tax on premiums received by such corporation, company or association in such cities and villages during the preceding calendar year for the benefit of organized fire departments. Such report shall be signed and sworn to by the president, vice president, secretary, treasurer, or manager of the company, and in case the company is in the hands of an assignee or receiver, then such report shall be signed and sworn to by such assignee or receiver. § 4. The Department of Trade and Commerce may require at any time further or supplemental reports, verified as herein prescribed, with reference to any matter pertinent to the proper assessment of the tax herein provided for, and it shall be the duty of such corporations, companies and associations to promptly furnish such reports. § 5. The Department of Trade and Commerce shall, from the reports herein required to be filed with it, assess a tax at the rate herein prescribed against each corporation, company and association required herein to make such reports. § 6. Except as otherwise provided in section 14 hereof, the tax herein provided to be paid shall be due and payable on the first day of July of each year, and shall be the tax for the year commencing on the first day of July in which it is due and ending on the thirtieth day of June next thereafter. § 7. If any corporation, company or association, subject to the provisions of this Act, shall fail or refuse to file its annual report within

the time required by this Act, the Department of Trade and Commerce shall assess a tax against such corporation, company or association, based upon the best possible available information, adding to such assessment a penalty of ten per centum upon such assessment. § 8. The Department of Trade and Commerce shall have power to hear and determine objections to any assessment, and, after hearing, to change or modify any assessment. § 9. On or before the fifteenth day of May of each year, the Department of Trade and Commerce shall mail a notice in writing to each corporation, company and association against which a tax is assessed, stating the amount of the tax assessed against it for the year next ensuing commencing on July 1, and that objections (if any) to such assessment will be heard by the Department of Trade and Commerce on a day stated therein, not later than the twenty-fifth day of June. Such notice shall further state that the tax therein assessed is payable to the Department of Trade and Commerce on July 1 after the date of said notice. The notice required by this section shall be mailed to the corporation, company or association, addressed to its postoffice address as shown by the records in the office of the Department of Trade and Commerce. A failure to receive the notice mentioned in this section shall not relieve any corporation, company or association, of the obligation to pay such taxes, nor shall it invalidate the assessment of the tax. § 10. If the tax assessed in accordance with the provisions of this Act shall not be paid on or before the thirty-first day of July of the year in which the assessment is made, it shall be deemed to be delinquent, and there shall he added a penalty of five per centum for each month or part of month that the same is delinquent, commencing with the month of August. § 11. The Department of Trade and Commerce, through the Attorney General, may at any time after the tax becomes delinquent institute an action of debt, in the name of the people of the State of Illinois, in any court of competent jurisdiction, for the recovery of the amount of such taxes and penalties due, and prosecute the same to final judgment, and take such steps as may he necessary to collect the Same. § 12. If any corporation, company or association shall fail, neglect or refuse to make and file any report herein required, or shall fail, neglect or refuse to pay any tax assessed against it under the provisions of this Act, within thirty days after the same becomes due and payable, the Department of Trade and Commerce shall have power to revoke the license of such defaulting corporation, company or association to transact the business of insurance in this State, or it may suspend the same until such report or reports are filed or such tax and penalties (if any) are paid. § 13. Each corporation, company and association applying for a license to do an insurance business in this State, and which was not licensed to do such business in this State during the preceding calendar year, or any part thereof, shall, before said license is issued, pay to the Department of Trade and Commerce at the rate of three hundred dol

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