28. AGENTS RESPONSIBLE-EMBEZZLEMENT BY.] § 28. Agents appointed by any company doing business in this state, to solicit for applications for insurance, to collect the premiums on the same and to transact the other duties of agents in such cases, shall be held personally responsible to such company for any moneys received by them for such company; and in case any such agent sball embezzle or fraudulently convert to his own use, or shall take or secrete, with intent to embezzle and convert to his own use, without consent of such company, any money belonging to such company which shall have come into his possession or shall be under his care by virtue of his agency, he shall be deemed, by so doing, to have committed the crime of larceny, and, on conviction, shall be subject to the fines and penalties provided by the statutes in such cases. [See "Crim. Code," ch. 38, § 74, 75.

29. RECIPROCITY.] § 29. Whenever the existing or future laws of any state of the United States, or any other kingdom or country, shall require of insurance companies incorporated by or organized under the laws of this state, and having agencies in such other state, kingdom or country, any deposit or securities in such state, kingdom or country, for the protection of policyholders or otherwise, of any payment for taxes, fines, penalties, certificates of authority, license fees or otherwise, greater than the amount required for such purposes from similar companies of other states by the then existing laws of this state, then and in every such case, all companies of such states, establishing or having heretofore estab lished an agency or agencies in the state, shall be and are hereby required to make the same deposit, for a like purpose, with the auditor of this state, and to pay to the auditor, for taxes, fines, penalties, certificates of authority, license fees, and otherwise, an amount equal to the amount of such charges and payments im posed by the laws of such state upon the companies of this state and the agents thereof: Provided, that the payment required of such foreign companies shall, in no case, be less than required by this act.

30. TAX ON NET RECEIPTS.] § 30. Every agent of any insurance company incorporated by the authority of any other state or government, shall return to the proper officer of the county, town or municipality in which the agency is es tablished, in the month of May, annually, the amount of the net receipts of such agency, which shall be entered on the tax lists of the county, town and munici pality, and subject to the same rate of taxation for all purposes, state, county, town and municipal, that other personal property is subject to at the place where located, said tax to be in lieu of all town and municipal licenses; and all laws and parts of laws inconsistent herewith are hereby repealed: Provided, that the provisions of this section shall not be construed to prohibit cities having an or ganized fire department from levying a tax or license fee, not exceeding two per cent., in accordance with the provisions of their respective charters, on said gross receipts, to be applied exclusively to the support of the fire department of such city. [See "Cities, etc.," ch. 24, § 110.

31. TOWNSHIP COMPANIES EXCEPTED.] § 31. Nothing in this act shall be so construed as to interfere with the workings or organization of any insurance company organized under an act of the general assembly, entitled "An act to authorize the formation of township insurance companies," approved February 20, 1867, or to any township insurance company chartered by act of this general assembly.

32. WHEN TAKES EFFECT.] § 32. This act shall take effect from and after its passage: Provided, that companies other than those organized under the laws of this state, which may have received licenses for the year A. D. 1869, prior to the passage of this act, shall not be obliged to renew application during the said year, but such company shall be subject to examination at the discretion of the auditor of public accounts as herein before provided: Also, provided, that the examination of companies already organized under the laws of this state shall, for the year 1869, be made in the month of July next, or as soon thereafter as pos

DEPOSITS OF FOREIGN COMPANIES.

AN ACT relating to deposits to be made by foreign insurance companies. [Approved and in force March 19, 1872 L. 1871-2, p. 503.|

33. WHEN FOREIGN COMPANY NEED NOT DEPOSIT HERE.] § 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly, That when any fire, or fire and marine insurance company organized under the laws of any foreign government, shall file with the auditor of public accounts a cer tificate of the superintendent of the insurance department of any other state, stating that a deposit of $200,000, or the equivalent of that amount, for the pro tection of the policyholders in the United States, has been made by said company, in that state, in accordance with the existing laws thereof, said company shall not be required to make such deposit in this state, so long as said deposit shall remain intact with the superintendent of the insurance department or treasurer of said state, a certificate of which, from the superintendent of the insurance department of that state, shall be annually filed with the auditor of public accounts of this state. [See § 22.

34. SECURITIES BY FOREIGN COMPANIES.] § 2. All fire, or fire and marine insurance companies organized under the laws of any foreign country, establishing or having heretofore established an agency or agencies in this state, shall be and are hereby allowed to make the deposit required by the laws of this state, in such bonds, stocks or other securities of such foreign country: Provided, the same shall not be received for more than their par value, nor shall they in any case be valued at more than their current market value. [See § 22.

35. EMERGENCY.] § 3. The recent conflagration in Chicago having deprived the People of the State of Illinois of the means of ample insurance on their buildings and goods, an emergency exists requiring this act to be of immediate force and effect: therefore this act shall take effect and be in force from and after its passage.

LIFE INSURANCE.

AN ACT to organize and regulate the business of life insurance. [Approved March 26, 1869. In force July 1, 1869. L. 1869, p. 229.]

36. GUARANTEE CAPITAL-INVESTMENT OF.] § 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly, That before any life insurance company goes into operation, under the laws of this state, a guarantee capital, of at least $100,000, shall be paid in money and invested in the stocks of the United States or of this state, or of any city or town in this state, estimated at their market value, or in such other stocks and securities as may be approved by the auditor of public accounts, or in mortgages being first liens on real estate in this state, the said real estate being worth at least twice the amount of the money loaned thereon, with abstract showing a good and sufficient title, and the certificate of two reputable landholders, under oath, certifying to the value of said property.

37. EXAMINATION BY AUDITOR-FEE.] § 2. No policy shall be issued until a certificate from the auditor has been obtained authorizing such company to issue policies. The said auditor shall examine the capital, and the majority of the directors shall make oath that the money has been paid in by the stockholders towards payment of their respective shares and not for any other purpose, and that it is intended that the same shall remain as the capital of the company, to be invested as required by the laws of this state. Every insurance company incorporated in this state shall pay to said auditor, for the examination required by this section, the sum of $30.

38. SECTION ONE APPLIES TO FOREIGN COMPANIES.] § 3. It shall not be lawful for any person to act within this state, as agent or otherwise, in receiving or procuring applications for life insurance, or in any manner to aid in transacting the business of life insurance, referred to in the first section of this act, for any company or association incorporated by or organized under the laws of any other state government, unless such company has conformed, in such state or in this state, to the same requirements in regard to capital that are imposed by section one of this act upon companies in this state, or, in lieu thereof, has actual assets to the amount of at least $100,000, invested in the same manner as is prescribed in regard to capital in section one of this act.

39. ELECTION OF DIRECTORS BY MUTUAL COMPANIES.] § 4. The subscribers or holders of guarantee stock in a life insurance company, organized on the mutual or stock and mutual plan, shall choose the first board of directors, and at all subsequent elections they shall choose one-half of the directors, and the holders of mutual policies the other half, until the redemption of the guarantee stock, when the holders of mutual policies shall elect all of the directors.

40. ANNUAL STATEMENT.] § 5. Every life insurance company incorporated in this state, or doing business in this state, shall, on or before the first day of March in each year, transmit to the auditor and file in his office a statement of its business standing and affairs, in the form prescribed or authorized by law, and adapted to the business done by such company, signed and sworn to by the president or vice-president and secretary, and made out for the year ending on the preceding thirty-first day of December.

41. FORM OF STATEMENT.] § 6. The form for life insurance companies shall be as follows: 1st. Name of the company. 2d. When chartered. 3d. For what period. 4th. Where located. 5th. State in full the assets of the company. 6th. Number of shares owned in any bank; state par value, cost and the market value per share. 7th. Number of shares owned in any railroad, stating the corporate name of each and the amount invested in each, at cost, on its books; state the par value and the market value of each share. 8th. Amount owned in railroad bonds; state par value, cost and market value per share. 9th. Amount invested in real estate, at cost, on the books of the company. 10th. Amount loaned on mortgages of real estate, and estimated value of said real estate. 11th. Amount loaned on notes secured by collaterals of personal property. 12th. Amount loaned on notes without collaterals. 13th. State in full all other investments. 14th. How much included in the foregoing statements of assets consists of premium notes on policies not returned as now in force. 15th. Number, date, kind, and amount of each outstanding policy, and age of the insured, excepting such policies as are subject to a valuation by the proper officer in some other state, which shall be shown by certificate from the insurance department of such state. 16th. Number and amount of each class or kind of policies which have within the year ceased to be in force; how terminated; what has been paid to the legal holders of policies. 17th. Amount of losses ascertained and unpaid. 18th. Amount of losses claimed against the company, whether acknowledged as due or not by the company. 19th. Amount due from the company on its declared, promised or acknowledged indebtedness, or other claims, including dividends, bonuses on distribution of surplus, or as profits. 20th. Amount received for premiums the past year. 21st. Amount received for premiums in cash. 22d. Amount received for premiums in promissory notes or securities. 23d. Amount received for interest the past year. 24th. Amount paid for interest the past year. 25th. Amount of guarantee funds, and state particularly whether the same are in cash or subscription notes. 26th. How are dividends, distributions of surplus funds, bonuses or estimated profits paid? whether in cash, scrip or otherwise on credit, and whether on demand; or, if on credit, for what length of time, and whether payable at a specific time or indefinitely, at the discretion of the company. 27th. Amount paid for the expenses, taxes and commissions the past year, classified.

42. FOREIGN COMPANIES-STATEMENT OF.] § 7. All life insurance companies chartered or organized in any other state of the United States, or beyond the limits of the United States, and doing busineess in this state, shall make an annual statement of their condition and affairs to the insurance department, in the same manner and in the same form as similar companies organized under the laws of this state. The auditor shall have authority to extend the time for filing such statement, for reasons which he shall deem good and sufficient, whether the company is organized in this state or elsewhere. The statements herein provided for shall be in lieu of any and all statements now required by any existing law; and the several provisions of the act approved February 12th, 1853, February 14th, 1855, and January 22d, 1857, are hereby repealed, so far as they relate to life insurance.

43. COMPANIES WITHOUT THE UNITED STATES-STATEMENT OF.] § 8. Life insurance companies chartered beyond the limits of the United States, and doing business in this state, shall make a return of their standing on the thirty-first day of December in each year, agreeable to the form required by this act of other cou panies doing a similar business in this state; said return to be made to the auditor on or before the first day of April, annually, and verified and sworn to before some consul or vice-consul of the United States, by two or more of the principal officers of such insurance company.

44. PENALTY.] § 9. Any company doing business in this state neglecting to make returns, in the manner and within the time hereinbefore authorized and prescribed, shall forfeit $100 for each day's neglect; and every company that willfully makes false statements shall be liable to a fine of not less than $500 nor more than $1,000. Any new business done by any company or its agents in this state, after neglect to make the prescribed returns, shall be deemed to be done in violation to law.

45. WHEN COMPANIES MUST STOP ISSUING POLICIES.] § 10. When the ac tual funds of any life insurance company doing business in this state are not of a net value equal to the net value of its policies, according to the "combined expe rience," or "actuary's" rate of mortality, with interests at four per centum per annum, it shall be the duty of the auditor to give notice to such company and its agents to discontinue issuing new policies within this state until such time as its funds have become equal to its liabilities-valuing its policies as aforesaid. Any officer or agent who, after such notice has been given, issues or delivers a new policy, from and on behalf of such company, before its funds have become equal to its liabilities as aforesaid, shall forfeit, for each offense, a sum not exceeding $1,000.

46. INVESTMENT OF FUNDS.] § 11. It shall be lawful for any company, or ganized in this state, to invest its funds or accumulations in the stocks of the United States, or of this state, or of any city or town in this state, or in any national bank, or in such other stocks and securities as may be approved by the auditor, or in mortgages (being first liens) on real estate being worth at least twice the amount of money loaned thereon.

47. INVESTMENT IN OTHER STATES.] § 12. When any life insurance company, organized under the laws of this state, shall transact business in. any other state, it may invest its surplus funds in such state in like security and under the same restrictions as in this state.

48. INQUIRIES BY AUDITOR-REVOKE CERTIFICATE.] § 13. The auditor is hereby authorized and empowered to address any inquiries to any life insurance company, or to the secretary thereof, in relation to its doings or conditions, or any other matter connected with its transactions; and it shall be the duty of any such company so addressed to reply promptly, in writing, to any such inquiries; and all such companies not incorporated under the laws of this state, failing to answer all such inquiries, shall not be authorized to transact any business in this state, and their certificates of authority may be revoked and canceled.

EXAMINATION BY AUDITOR.] It shall be the duty of the auditor to make or cause to be made an examination of the condition and affairs of any life insu

rance company doing business in this state whenever he shall deem it expedient to do so; and also whenever he shall have good reason to suspect the correctness of any annual statement, or that the affairs of any company making such statements are in an unsound condition.

49. DIVIDENDS BY MUTUAL COMPANIES. § 14. Life insurance companies doing business in this state, which do business upon the principle of mutual insurance, or the members of which are entitled to share in the surplus funds thereof, may make distribution of such surplus as they have accumulated, annually, or once in two, three, four or five years, as the directors thereof may from time to time determine. In determining the amount of the surplus to be distributed, there shall be reserved an amount not less than the aggregate net value of all outstanding policies, said value being computed by the combined experience or actuary rate of mortality, with interest not exceeding four per cent.

50. FOREIGN COMPANIES AGENT-SERVICE OF PROCESS.] § 15. Every life insurance company not organized in this state, before doing business in this state, shall, in writing, appoint an attorney, resident in this state, upon whom all lawful process against the company may be served with like effect as if the company existed in this state; and said writing or power of attorney shall stipulate and agree, on the part of the company making the same, that any lawful process against said company which is served on said attorney, shall be of the same legal force and validity as if served on said company. A copy of the writing, duly certified and authenticated, shall be filed in the office of the auditor, and copies certified by him shall be sufficient evidence. This agency shall be continued while any liability remains outstanding against the company in this state, and the power shall not be revoked until the same power is given to another, and a like copy filed as aforesaid. Service upon said attorney shall be deemed suffi cient service upon the company. [See "Practice," ch. 110, § 2.

51. STATE TREASURER TO RECEIVE DEPOSITS-INCOME.] § 16. The treasurer of the state, in his official capacity, shall take and hold on deposit the securities of any life insurance company incorporated under the laws of this state, which are deposited by any such company for the purpose of securing policyholders, and complying with the laws of any state in order to enable such company to transact business in such state. The company depositing such securities shall have the right to receive the income thereof and at any time to exchange the same, according to the laws of the state in which they may be doing business. 52. VALUING POLICIES-FEE.] § 17. If any life insurance company, organized in this state or in any other state of the United States, or in any foreign country, whose policies are not valued by the insurance department or proper officers of any other state, shall transact business in this state, it shall be the duty of the auditor to calculate the existing value of all outstanding policies of such company; and every such company shall pay, annually, to the auditor of this state, by way of compensation for the valuation of its policies, three cents on every $1,000 insured by it on lives.

53. WHAT LIFE COMPANIES NOT TO INSURE.] § 18. No life insurance company organized under the laws of this state shall issue policies insuring fire or marine or accident or live stock risks, nor do any banking business.

54. RIGHTS OF MARRIED WOMEN.] § 19. It shall be lawful for any married woman, by herself and in her own name, or in the name of any third person, with his assent as her trustee, to cause to be insured, for her sole use, the life of her husband, for any definite period or for the term of his natural life; and in case of her surviving such period or term, the sum or net amount of the insurance becoming due and payable by the terms of the insurance, shall be payable to her, to and for her own use, free from the claims of the representatives of the husband or of any of his creditors: Provided, however, that if the premium of such policy is paid by any person with intent to defraud his creditors, an amount equal to the premium so paid, with interest thereon, shall inure to the benefit of said creditors, subject, however, to the statute of limitations. The amount of the insurance may be made payable, in case of the death of the wife before the period at which