kept invested to the extent of the minimum capital required by law as follows:

First-In legally executed bonds, warrants and securities of the United States or of the District of Columbia, or of any state of the United States not estimated above their par value, nor their current market value; or,

Second-In legally executed bonds, warants and securities of any county, incorporated city or school district in any state, which has not defaulted in the payment of interest on any of its bonds, warrants or securities within three years, and which shall not be estimated above their par value nor their current market value; or,

Third-In legally issued bonds or notes secured by first mortgage on real estate in this or any of the other states of the United States worth with the improvements thereon at least double the sum loaned thereon. Where buildings or other improvements constitute a material part of the value of the mortgaged premises, they shall be kept insured against loss or damage by fire in a reasonable amount for the benefit of the mortgagee.

Fourth-The residue of the capital, together with the surplus and other funds of every such company, may be invested in or loaned on the pledge of any of the above securities; Provided that the amount loaned on real property or mortgages thereon does not exceed fifty per cent of the reasonable cash market value of such property, and the requirements as to keeping the improvements thereon insured is observed. Said funds may also be loaned by a life company on any of its policies, not exceeding the legal reserve thereon.

SEC. 40. Same Foreign Company. The capital and funds of every foreign or alien insurance company shall be invested and kept invested in the same class of securities specified for domestic insurance corporations, except that securities authorized by the law of the home state, or country, of such company may be recognized as legal investments in the discretion of the insurance board.

SEC. 41. Domestic Company May Acquire Real Estate. --Every domestic insurance company may invest in such real property as shall be requisite for its home offices in the transac

tion of its business and may rent the balance of any space therein. No such investment shall hereafter be made in excess of twenty-five per cent of the amount of its admitted assets. It may also acquire such other real estate: First-as shall have been mortgaged to it in good faith by way of security for a loan previously contracted, or for money due; Second— such as may be conveyed to it in satisfaction of debts previously contracted in the course of its dealings; Third-such as may be purchased at sale upon judgments, decrees or mortgages obtained or made for such debts.

If such company acquires title to or a lien upon any property or securities which it may not otherwise invest in, or loan its funds upon, it shall dispose of the personal property within two years and the real property within five years from the time of acquiring the same. The board, upon proper showing, may extend such period a reasonable time not exceeding three years.

SEC. 42. Domestic Companies.-Deposit Of Securities.Every domestic company shall deposit all of its investment securities not including premium notes with the insurance board, for the benefit of its policy holders until they aggregate the sum of one hundred thousand dollars, and thereafter keep such amount of its securities deposited with the board and no more, as near as may be practicable: Provided any domestic insurance company desiring to transact business in any other state may deposit with the insurance board securities to the amount and value required by such other state as a condition to the permission to do business therein by such company. As long as the company remains solvent, it may collect the interest on all of its securities so deposited and it may withdraw any of them by depositing others of equal value. The board shall give to each company a receipt for every security deposited. Every such company shall, on or before the third day of January and July each year, file with the board a true list of all of its securities not so deposited with the board, held by such company on the last day of the preceding month. The board may, as often as it is deemed advisable, cause an examination to be made of the securities held by any such company.

SEC. 43. Prohibition Upon Officers. No director or officer of any domestic company doing business under this act shall receive any money or valuable consideration for negotiating any loan for any such company, or for selling or aiding in the sale of any property to or by the company, nor shall such director or officer borrow money from, or buy from or sell to any such corporation, any property. No investment, sale or loan, except loans on its own policies, shall be made, which has not first been authorized by the board of directors, or by a committee thereof, charged with the duty of investing or loaning the funds of the company, nor shall any deposit be made in a bank or banking institution in excess of the sum of two thousand dollars, unless such bank has first been approved as a bank of deposit by the board of directors or such committee thereof, and unless a vote of the board or such committee thereof authorizing such investment, sale or loan or approval of the place of deposit, has been duly recorded in the books of the company.

SEC. 44. Losses-Deposits.--Whenever any company shall sustain losses in excess of its other resources, the insurance board, upon proper showing, may turn over to it so much of its securities as shall be necessary to provide funds to pay its losses, and such securities shall not be used for any other purpose. The board may allow such company a reasonable time within which to deposit other securities in an amount equal to those withdrawn. Any company entering into a reinsurance contract whereby its entire business is reinsured as provided in this act may, upon a showing that all its outstanding obligations have been paid or assumed by the reinsurance company, withdraw all its securities deposited with the board.

SEC. 45. Annual Statement. Every insurance company doing business in this state unless otherwise provided or excepted in this act must make and file with the board on or before the first day of March of each year, a statement under oath for the year ending December 31st immediately preceding upon a form of to be prescribed and furnished by the board, which form shall at least include the substance of that required by what is known as the "convention blank form" adopted

from year to year by the national convention of insurance commissioners, and shall also include the salaries and compensation of the officers and any other information required by the board.

SEC. 46. Salaries Officers. No domestic insurance company shall pay any salary, compensation or emolument to any officer, trustee or director thereof, in excess of a reasonable compensation for the services performed by such person and in no case amounting in any one year to more than five thousand dollars, to any person, firm or corporation unless a greater sum shall be first authorized by a vote of two-thirds of the board of directors of such company, if a stock company, duly recorded in the minutes of the board meeting; and if a mutual or assessment company, unless a greater sum shall be first authorized by a two-thirds vote of those present in person or by proxy, of the policy holders of such company, at an annual meeting, duly cast and recorded in the minutes of such meeting. No such company shall make any agreement with any of its officers or employees except soliciting agents whereby it agrees that for any services rendered, or to be rendered, they shall receive any salary or compensation that will extend beyond a period of five years from the date of such agreement; nor shall it pay any pension whatsoever. No officer, director or trustee who is paid a salary for his services of more than two hundred dollars per month, shall receive any other compensation.

SEC. 47. Vouchers For Expenditures. No domestic company shall make any disbursements of twenty-five dollars or more unless the same be evidenced by a voucher signed by or on behalf of the person, firm or corporation receiving the money and correctly describing the consideration for the payment. If the expenditure be for both services and disbursements the vouchers shall set forth the services rendered and an itemized statement of the disbursements made. If the expenditure be in connection with any matter pending before any legislature or public body, or before a department or officer of any state or government, the voucher shall correctly describe in addition to the nature of the matter the interest of such company therein. When such vouchers cannot be ob

tained, the expenditure shall be evidenced by an affidavit of some officer of the company describing the character and object of the expenditure and stating the reason for not obtaining such vouchers.

SEC. 48. Business Authorized. No domestic insurance company shall transact any business other than that specified in its articles of incorporation, and no foreign or alien company admitted to transact business in this state shall transact any other kind of business than that which it has been authorized by the laws of the state or country of its incorporation to do.

SEC. 49. Policy Provisions Voided. No insurance company shall issue in this state any policy or contract of insurance containing a provision, stipulation or agreement that such policy shall be construed according to the laws of any other state or country, or any provision limiting the time within which an action may be brought to less than the regular period of time prescribed by the statutes of limitations of this state, unless otherwise prescribed by this act.

SEC. 50. Combination And Agreements Prohibited.—If any insurance company authorized to transact business in this state, or any agent or representative thereof shall, either within or outside of this state, directly or indirectly, enter into any contract, understanding or combination with any other insurance company, or agent or representative thereof for the purpose of controlling the rates to be charged for insuring any risk or class or classes of risks in this state the board shall forthwith revoke its license and those of its agents, and no renewal of the licenses shall be granted until after the expiration of one year from the date of final revocation.

SEC. 51. Warranty Not To Avoid Policy Unless Deceptive. No oral or written misrepresentation or warranty made in the negotiation for a contract or policy of insurance by the insured or in his behalf, shall be deemed material or defeat or avoid the policy or prevent it attaching unless such misrepresentation or warranty deceived the company to its injury. The breach of a warranty or condition in any contract or policy of insurance shall not avoid the policy nor avail the insurer to avoid liability unless such breach shall exist at the