it becomes due, to his, her or their children, for their use, as shall be provided in the policy of insurance, and their guardian if under age. [See "Husband and Wife," ch. 68.

55. RECIPROCITY.] § 20. Whenever the existing or future laws of any other state of the United States shall require of life insurance companies, incorporated by or organized under the laws of this state and having agencies in such other state, or of the agents thereof, any deposit of securities in such state for the protection of policyholders or otherwise, or 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 life insurance companies of such states establishing or having heretofore established an agency or agencies in this state, shall be and are hereby required to make the same deposit for a like purpose, with the state treasurer of this state, and to pay to the auditor, for taxes, fines, penalties, certificates of authority, license fees or any other obligation, an amount equal to the amount of such charges and payments imposed by the laws of such other state upon the companies of this state and the agents thereof.

56. FOREIGN COMPANIES-DEPOSIT COPY OF CHARTER, ETC.] § 21. Every life insurance company not organized under the laws of this state shall, before doing business in this state, deposit with the auditor a copy of the charter of the company, and a statement signed and sworn to by the president or vice-president and secretary, in the form prescribed or authorized for the annual statement adapted to the business done by such company.

57. TO EXHIBIT NAME OF COMPANY, ETC.] § 22. Every person acting for a life insurance company not incorporated in this state, shall exhibit, in conspicuous letters, on the sign designating his place of business, the name of the state. under whose authority the company he represents has been incorporated; and said company and agents shall also have printed, in large type, the name of said state upon all policies issued to the citizens of this state, and on all placards, pamphlets and circulars published, issued or circulated in this state by them or him, relating to the business of said company.

58. WHO AGENT OF FOREIGN COMPANY.] § 23. Whoever solicits insurance on behalf of any life company not chartered by and not established within this state, or transmits, for any person other than himself, an application for life insu rance, or a policy of life insurance, to or from such company, or advertises that he will receive or transmit the same, shall be held to be an agent of such company to all intents and purposes, and subject to all the duties, requisitions, liabilities and penalties set forth in the laws of this state relating to life insurance companies not incorporated by the legislature thereof.

59. PENALTY.] § 24. Any agent making insurance in violation of any law of this state regulating life insurance companies shall forfeit, for each offense, a sum not exceeding $500.

60. AUDITOR'S FEES.] § 25. For filing the annual statement required in the office of the auditor, the said auditor shall be paid $10; for each agent's certifi cate of authority, $2; for every copy of a paper filed in the auditor's office, 20 cents per folio; and for affixing the seal of said office to such copy and certifying the same, $1; and for examining the affairs of any company, when deemed necessary, the expenses incurred therein shall be paid to the said auditor by the company.

61. PUBLISHING STATEMENTS.] § 26. The auditor shall annually prepare and print in a single document the information contained in the statements made under this act, and shall communicate the same to the general assembly. He shall also cause the annual statements required to be filed by this act to be pub lished in two daily newspapers of general circulation, the one printed in the city of Chicago and the other in the city of Springfield, not less than one month.

62. REPEAL.] § 27. All acts or parts of acts inconsistent with this act are hereby repealed.

63. ACT TAKES EFFECT.] § 28. This act shall be deemed a public act, and take effect and be in force from and after the first day of July next, but nothing herein contained shall prevent the auditor from receiving statements from compa nies desiring to file the same, as herein specified, at any time after the approval of this act by the governor.

SURRENDER OF SECURITIES.

AN ACT to authorize the state treasurer to surrender securities heretofore deposited by life insurance companies. [Approved April 3, 1872. In force July 1, 1872.J

64. WHEN COMPANY RETIRES FROM BUSINESS.] § 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly, That any life insurance company which desires to retire from business may notify the holders of its outstanding policies, and publish its intention to retire from business, for thirty successive days, in some newspaper published in Chicago, and having a general circulation; and if such policyholders elect to have their policies canceled, such company shall refund and pay to the policyholder, within ninety days thereafter, the net value of the policy, valued in accordance with the laws of this state, after deducting any indebtedness that may exist against such policy, or, if any policyholders shall so elect, the company may secure for such persons reinsurance in another company; which re-insurance shall equal in value the net value of such policies as aforesaid, and the company assuming the insurance shall issue to each of such persons a policy, in lieu of such policies as may be canceled for that purpose. When it appears to the auditor that any such company has canceled its policies, as herein provided, and has no other liability existinga statement of which shall be certified by the affidavit of the president and secretary of the company-he shall give such company his certificate, upon which it may withdraw its securities deposited with the state treasurer: Provided, that any company having discontinued business prior to the passage of this act, by obtaining the cancellation of its policies as herein provided, may, in like manner, withdraw its securities so deposited, or such company may withdraw its securities by depositing other bona fide securities, of the kind provided by law, in lieu therefor, to the amount of all its outstanding policies.

TOWNSHIP COMPANIES.

AN ACT to revise the law in relation to township insurance companies. [Approved March 24, 1874. In force July 1, 1874.]

65. WHO MAY FORM.] § 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly, That any number of persons, not less than twenty-five, residing in any congressional or political township, or in one or more adjoining congressional or political townships in this state, not exceeding six in number, and without regard to county lines, who collectively shall own property of not less than $50,000 in value, which they desire to have insured, may form an incorporated company for the purpose of mutual insurance against loss or damage by fire or lightning.

66. HOW FORMED.] § 2. Such persons shall file with the auditor of public accounts a declaration of their intention to form a company for the purposes expressed in the preceding section, which declaration shall be signed by all the corporators and shall contain a copy of the charter proposed to be adopted by them. Such charter shall set forth the name of the corporation, which shall embrace the name of the township in which the business office of such company is to be located and the intended duration of the company, and if it is found conformable to this act and not inconsistent with the laws and constitution of this state, the auditor shall thereupon deliver to such persons a certified copy of the charter, which, on being filed in the office of the county clerk of the county where the office of such company is to be located, shall be their authority to organize and commence business. Such certified copy of the charter may be used in evi

dence for or against said company, with the same effect as the original: Provided, that such charter so obtained shall be subject to control of and modification by the general assembly.

67. DIRECTORS-ELECTION OF.] § 3. The number of directors shall be nine -five of whom shall constitute a quorum to do business-to be elected from the corporators by ballot, and hold their offices until their successors are elected and qualified. In the election of the first board of directors each corporator shall be entitled to one vote. All subsequent elections, except to fill vacancies, shall be held at the annual meeting of the company, which shall be on the first Tuesday after the first Monday of January in each year, and every person insured shall be entitled to as many votes as there are directors to be elected, and an equal additional number for each $500 that he may be insured in the company, and may cast the same in person or by proxy, distributing them among the same or a less number of candidates than the number of directors to be elected, or cumulating them upon one candidate, as he shall think fit.

68. PRESIDENT, TREASURER AND SECRETARY.] § 4. The directors shall elect from their number a president and a treasurer, and shall also elect a secre tary, who may or may not be a member of the company, all of whom shall hold their office for one year, and until their successors are elected and qualified.

69. BONDS.] § 5. The treasurer and secretary shall each give bonds to the company for the faithful performance of their duties, in such amounts as shall be prescribed by the board of directors.

70. CORPORATE POWERS.] § 6. Such corporation and its directors shall possess the usual powers and be subject to the usual duties of corporations and directors thereof, and may make such by-laws, not inconsistent with the constitution or laws of this state, as may be deemed necessary for the management of its affairs, in accordance with the provisions of this act; also to prescribe the duties of its officers and fix their compensation, and to alter and amend its by. laws when necessary.

71. MEMBERS.] § 7. Any person owning property in the district for which any such company is formed, if he resides in the county in which such district is in whole or in part situated, may become a member of such company by insuring therein, and shall be entitled to all the rights and privileges appertaining thereto; but a person not residing within the district for which the company is formed shall not become a director of such company.

72. MANNER OF INSURING.] 8. Such company may issue policies only on detached dwellings, barns (except livery, boarding and hotel barns), and other farm buildings and such property as may properly be contained therein, 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 $3,000 on any one risk. All persons so insured shall give their obligation 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 lightning 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 effecting the insurance, pay such percentage in cash, and such other charge as may be required by the rules or by-laws of the

company.

73. RISKS CLASSIFIED.] §9. Any such company may classify the property insured therein at the time of issuing policies thereon, under different rates, corresponding as nearly as may be to the greater or less risk from fire or lightning, and loss, which may attach to each several building insured.

74. WHEN COMPANY NOT TO INSURE.] § 10. No such company shall insure any property beyond the limits of the district comprised in the formation of the company, nor shall they insure any property within the limits of any city containing over 12,000 inhabitants at the time of the organization of such company. 75. NOTICE OF LOSS-ADJUSTMENT.] § 11. Every member of such company who may sustain loss or damage by fire or lightning shall immediately

notify the president of such company, or in case of his absence, the secretary thereof, who shall forthwith convene the directors of such company, whose duty it shall be, when convened, to appoint a committee of not less than three members of such company, to ascertain the amount of such loss; and in case of the failure of the parties to agree upon the amount of such damage, the claimant may appeal to the judge of the county court of the county in which the office of such company is located, whose duty it shall be to appoint three persons as a committee of reference, who shall have full authority to examine witnesses, and to determine all matters in dispute, and shall make their award in writing to the president of such company, and such award shall be final. The pay of said committee shall be $2 per day for each day's service so rendered, and four cents for each mile necessarily traversed in the discharge of their duties, which shall be paid by the claimant, unless the award of said committee shall exceed the sum offered by the company in liquidation of such loss or damage, in which case said expenses shall be paid by the company.

76. ASSESSMENTS.] § 12. Whenever the amount of any loss shall have been ascertained, which exceeds in amount the cash funds of the company, the presi dent shall convene the directors of said company, who shall make an assessment upon all the property to the amount for which each several piece of property is insured, taken in connection with the rate of premium under which it may be classified.

77. NOTICE OF ASSESSMENT.] § 13. It shall be the duty of the president, whenever such assessment shall have been made, to immediately notify every person composing such company, personally, by an agent or by letter sent to his usual post office address, of the amount of such loss, and the sum due from him as his share thereof, and of the time when and to whom such payment is to be made; but such time shall not be less than thirty nor more than ninety days from the date of such notice.

78. SUITS.] § 14. Suits at law may be brought against any member of such company who shall neglect or refuse to pay any assessment made upon him by the provisions of this act; and the directors of any company so formed, who shall willfully refuse or neglect to perform the duties imposed upon them by the provisions of this act, shall be liable, in their individual capacity, to the person sustaining such loss. Suits at law may also be brought and maintained against any such company, by members thereof, for losses sustained, if payment is withheld after such losses have become due.

79. ANNUAL STATEMENT.] § 15. It shall be the duty of the secretary to prepare an annual statement, showing the condition of such company on the thirty-first day of December, and present the same at the annual meeting.

80. WITHDRAWAL FROM COMPANY.] § 16. Any member of such company may withdraw therefrom by surrendering his policy for cancellation, at any time while the company continues the business for which it was organized, by giving notice in writing to the secretary thereof, and paying his share of all claims then existing against said company: Provided, that by the withdrawal of any such member, the number of the members remaining in the company shall not be reduced below the original number of corporators, or that the assets will not be reduced below the amount at the time of the organization: Provided, further, that the company shall have power to cancel or terminate any policy by giving the insured notice to that effect.

81. REPORT TO AUDITOR-CERTIFICATE-FEES.] § 17. It shall be the duty of the president and secretary of every such company on the first day of Janu ary of each year, or within one month thereafter, to prepare, under their own oath, and transmit to the auditor of public accounts, a statement of the condi tion of the company on the thirty-first day of December then next preceding, in such form as the auditor may direct. If, upon examination, he is of the opinion that such company is doing business correctly, in accordance with the provisions of this act, he shall thereupon furnish the company his certificate, which shall be deemed authority to continue business the ensuing year, subject, however, to sub

sequent provisions of this act. For such examination and certificate the company shall pay $1. Each company shall pay, at the time of organization, $10 for the auditor's services, all of which shall be paid into the state treasury and applied to the insurance fund.

82. DISSOLUTION.] § 18. Any such company may be proceeded against and dissolved in the manner and upon the same conditions as provided in case of other insurance companies incorporated in this state.

83. COMPANIES FORMED UNDER ACT OF 1872.] § 19. Any township insurance company formed under an act entitled "An act to incorporate and govern mutual fire insurance companies in townships," approved April 3, 1872, may, with the written consent of two-thirds of the members, accept the provision of this act, and thereupon shall be governed by its provision. Before any such company shall be entitled to the benefits thereof, the directors or a majority of them shall file with the auditor of public accounts the declaration provided for in section 2 of this act.

DISSOLUTION OF INSURANCE COMPANIES.

AN ACT in regard to the dissolution of insurance companies. [Approved February 17, 1874. In force July 1, 1874.]

34. INVOLUNTARY DISSOLUTION.] § 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly, That if the auditor of state, upon examination of any insurance company incorporated in this state, is of the opinion that it is insolvent, or that its condition is such as to render its further continuance in business hazardous to the insured therein, or to the public, or that it has failed to comply with the rules, restrictions or conditions provided by law, or has exceeded, or is exceeding its corporate powers, he shall apply by petition to a judge of any circuit court of this state to issue an injunction, restraining such company, in whole or in part, from further proceeding with its business, until a full hearing can be had, or otherwise as he may direct. It shall be discretionary with such judge either to issue said injunction forthwith, or to grant an order for such company, upon such notice as he may prescribe, to show cause why said injunction should not issue, or to cause a hearing to be had on complaint and an swer, or otherwise, as in ordinary proceedings in equity, before determining whether an injunction shall be issued. He may in all such cases make such or ders and decrees, from time to time, as the exigencies and equities of the case may require, and in any case, after a full hearing of all parties interested, may dissolve, modify or perpetuate such injunction, and make all such orders and decrees as may be needful to suspend, restrain or prohibit the further continuance of the business of the company. [See § 23, 25.

85. VOLUNTARY DISSOLUTION.] § 2. When a majority, in number, or interest, of the members or stockholders of any insurance company incorporated in this state, desire to close its concerns, they may apply by petition to the circuit court of the circuit in which the company is located, setting forth in substance the grounds of their application; and the court, after due notice to all the parties interested, may proceed to hear the matter, and for reasonable cause decree a dissolution of the corporation; and corporations so dissolved shall be deemed and held extinct, in all respects as if their charters had expired by their own limitation, subject, however, to the provisions hereinafter prescribed.

86. WHEN CHARTERS EXTINCT.] § 3. The charters of all insurance companies incorporated in this state, which, either from neglect or by vote of their members or officers, or in obedience to the decree of any court, have ceased, or shall hereafter cease, for the period of one year, to transact the business for which they were organized, shall be deemed and held extinct in all respects, as if they had expired by their own limitation; and the circuit court shall have authority, upon application, by the petition of the auditor of state, or of any person interested, to fix, by decree, the time within which such companies shall close