increased or decreased insurance, the income from all other sources and the total income. Sixth-The amount paid for losses during the year, stating the amount of same which was for losses for previous years, the amount of salary and fees paid the officers and directors, the amount of all other expenditures during the year and the total expenditures during the year. 1293. Controller to investigate-May require company to close up busi ness. SEC. 9. A copy of every sworn statement and report shall in said month of January be filed in the office of the county clerk of the county where the principal office of the company is located, and another copy thereof shall be published at least twice during said month in a newspaper printed in such county. The officers making such sworn statement or report shall also file with the report herein required to be filed with the state controller, an additional affidavit showing that such report and statement has been published and a copy thereof filed in the office of the county clerk as herein provided; and if upon examination of the affairs of the company as hereinafter provided for, it shall appear to the controller that the losses and expenses of any company incorporated under this act have, during the year, exceeded the cash premiums and assets collected to such an extent as to imply a doubt in his mind as to the solvency of such company and its ability to pay all its losses and other debts, it shall be his duty to serve a notice upon the officers of such company, requiring them, at the expiration of sixty days from the date of such notice, to discontinue issuing policies and proceed to close up its business; unless within that time, the directors of such company shall collect assessments and pay such losses and debts. 1294. Responsible for failure to comply with requirements. SEC. 10. If any company shall fail to comply with the requirements of the controller in said notice or if it shall fail to make its annual report to the controller at the time and in the manner herein prescribed therefor, or shall issue any policy or make any insurance, or if such report to the controller shall be imperfect or contain false statements or shall be made as fraudulently to conceal the actual condition or responsibility of the company after the expiration of sixty days or in any manner fail or refuse to comply with the requirements of the controller in said notice, the directors and officers of such company shall be jointly and severally personally responsible for any losses that may thereafter occur in said company or to any person insured therein or thereby; and the person sustaining such losses may sue for and recover the amount of such losses from such directors and officers, or from any one or more of them. 1295. Controller to furnish blanks-Failure to perform duties, guilty of felony. SEC. 11. It shall be the duty of the controller on or before the first day of December in each year to furnish all companies organized under this act with blanks for the purpose of making thereon the statement herein required to be filed, which blanks shall be issued by the proper officers in making said statements, which statements shall be full and in accordance with the requirements heretofore set forth, and he may from time to time make such change in the form of such statement as shall seem to him best adapted to elicit from the companies a true exhibit of their condition in respect to the several matters herein before enumerated. In case the officers or directors of any company shall fail, neglect or refuse to perform the duties required of them by law within the time and in the manner prescribed for the performance of such duty, or shall knowingly make or permit any false or imperfect statement to be made in any annual or other report or statement required to be made by them, or by any of them, or by the company to the controller, or shall do or aid, or assist in doing, anything which any such company is hereby prohibited from doing or shall in any manner violate any of the provisions of this act, or shall aid in or consent to any violation of the provisions of this act, then, and in every such case, every director or person so offending shall be deemed guilty of a felony and upon conviction thereof shall be punished by a fine not exceeding one thousand dollars nor less than five hundred dollars or by imprisonment in the state prison not more than one year, or by such fine and imprisonment, in the discretion of the court; and when such failure, neglect or refusal on the part of the officers of any company is known to the controller it shall be his duty to notify the district attorney of the county where such company is located whose duty it shall be to commence legal proceedings against such persons or officers to enforce the penalty hereby imposed. 1296. Suits maintained-Assessments. SEC. 12. Suits at law may be maintained by any corporation formed under this act against any of its members for any cause relating to the business of such corporation or by any member against such corporation for claims which may have accrued, if payments are withheld more than sixty days after such claims shall have become due. It shall be lawful for any mutual insurance company, organized under this act, to make assessments upon premium notes, agreements, or the policies issued thereon pro rata according to the amount of such agreements of policies for the payment of the losses and expenses incurred by such company and all such premium notes or assessments shall be a lien upon the property insured to the amount of such notes or assessments, costs, and interest due thereon. 1297. Bodies corporate. SEC. 13. All companies formed under this act shall be deemed bodies corporate and politic in fact and in name and shall be subject to all the provisions of the statute in relation to corporations as far as they are applicable. 1298. May amend articles of incorporation-Attorney-general to certify. SEC. 14. Any company formed under this act shall have power to amend the articles of incorporation at any regular annual meeting held in accordance with the provisions of their articles of incorporation, upon giving notice of their intention to do so and of the time and meeting for that purpose; such notice shall be published three successive times in some newspaper published in the county where such company is organized. Said amendments shall be submitted to the attorney-general and his certificate of compliance with the law obtained and shall be filed in the office of the controller and also with the county clerk of the county in which the office of the company is located, before they shall take effect. 1299. Controller to file statement, when-Publication of notice. SEC. 15. If any insurance company organized under this act shall not, within sixty days after the controller shall have given the notice required by section 9, pay up and discharge all outstanding claims against said company, it shall be the duty of the controller to file a statement with the clerk of the district court of the county where such company has its principal place of business, reciting the fact that the sixty days within which such company was required to proceed to close up its business have expired, and that there are outstanding claims against such company. A copy of said statement shall be published for three successive weeks in a newspaper in such county. As amended, Stats. 1901, 111. 1300. State controller to examine into affairs. SEC. 16. The state controller, at any time when he deems it advisable, may in person or by deputy visit and examine into the affairs of any mutual insurance company organized under the provisions of this act; and it shall be the duty of the officers or agents of any such company to cause their books to be opened for inspection and otherwise to facilitate such examination so far as it may be in their power to do so, and for that purpose the controller shall have power to examine under oath the officers and agents of any company relative to the standing and condition of said company. All necessary expenses of such examination shall be paid by the company so examined. 1301. Appointment of receiver-Duties of receiver. SEC. 17. At any time after the publication required by section 15 of this act, the controller may appear in court in person or by counsel and move for the appointment of a receiver for said company; and the said company may also be heard, and upon such hearing the report of such company filed in the office of the controller shall be conclusive evidence of the facts therein stated and of the liability of such company, unless such company shall show that they have since paid and discharged the liabilities; and if upon the hearing thereof it shall appear to such court that the statements of the controller are materially true, the said court shall appoint a receiver for said company who is hereby empowered to take possession of all books and papers and personal property of said company, and shall ascertain the amount due from said company or property insured, and shall at once proceed to assess upon all the members and persons insured in said company such sums of money as will in the aggregate be sufficient to pay all the losses and liabilities of said company, together with the services and expenses of such receiver according to and in proportion to the amount of their insurance or interest in such company; and upon payment of such assessment the said members shall be discharged of and from all former assessments made by such company. It shall be the duty of such receiver to give notice of such assessment by publishing in some newspaper published in the county where the company is located, once a week for three successive weeks a general notice stating therein the aggregate amount assessed in said company; and upon application he shall furnish to any person assessed a statement showing the amount of his assessments. In case any member or person so assessed shall neglect for thirty days after such publication to pay the amount of such assessment to said receiver, the receiver may sue for the same in any court of competent jurisdiction for the amount so assessed with costs. If the amount realized by such receiver be insufficient to pay the losses and liabilities therein and for the services and expenses aforesaid he shall proceed to make a second assessment and such further or other assessments as may be necessary to realize a sum sufficient to pay all the losses and liabilities of such company in the same manner and with like effect as herein provided for making the first assessment and shall sue for and collect the same in the same manner. If after paying the losses and liabilities of such company and the services and expenses aforesaid, there shall remain any funds in the hands of the receiver the same shall be paid to the persons assessed in just and equal proportions to the sums contributed and paid by them. 1302. Receiver to keep account-Bond of receiver. SEC. 18. Such receiver shall keep an accurate account of all moneys or other property received by him and shall pay over all money by him collected and the proceeds of all personal property pro rata upon said liabilities, after deducting therefrom for his services and expenses (if the court after making such appointment shall deem the amount reasonable). The court making such appointment may also require such receiver to give a bond with sufficient sureties in such penal sum as the court shall determine, which said bond shall run to the State of Nevada and be conditioned for the faithful discharge of his duties as such receiver, and be approved by the judge of such court, and said court may from time to time require such receiver to make a report and upon the acceptance of a final report showing a full and faithful performance of such trust may discharge such receiver and his bondsmen from further liability. If any receiver shall be in charge of the business of any company on the last day of December of any year, it shall be his duty, during the month of January following to make a full report to the controller, showing the condition of affairs of such receivership on the thirty-first day of December preceding. 1303. Purpose of formation-Exempt from other insurance laws. SEC. 19. Every mutual fire insurance company organized under the provisions of this act, shall be for the sole purpose of mutually insuring the property of the members thereof and for the purpose of paying any loss incurred by any members thereof by assessment as provided by the constitution and by-laws of such company; and all such companies are hereby exempt from the provisions of the insurance laws of this state, governing foreign corporations and corporations not organized on the mutual plan, and nothing herein shall be so construed as to impair or in any manner interfere with any of the rights and privileges of such companies doing insurance business in this state or to relieve them of any duties and responsibilities now imposed on such companies by law. An Act relative to reinsurance and the transaction of business by fire insurance companies or associations otherwise than through resident agents. Became a law March 6, 1901, 40 1304. Resident agents to transact business Common carriers excepted. 1305. Must be legally authorized. 1306. Cannot transfer risks. 1307. Not reinsure, when. 1308. Affidavit to annual statement. 1304. Resident agents to transact business-Common carriers excepted. SECTION 1. It shall be unlawful for any insurance company or association, doing business in the State of Nevada, to write, place, or cause to be written or placed, any policy or contract for indemnity for insurance on property situated or located in the State of Nevada, except through or by the duly authorized agent or agents of such insurance company or association residing or doing business in this state; provided, that this act shall not apply to direct insurance covering rolling stock of railroad corporations or property in transit while in the possession and custody of railroad corporations or other common carriers. 1305. Must be legally authorized. SEC. 2. No fire insurance company or association shall reinsure, in any manner whatsoever, the whole or any part of a risk taken by it on property situated or located in this state in any other company or association not authorized to transact business in this state. 1306. Cannot transfer risks. SEC. 3. No fire insurance company or association shall transfer or cede, in any manner whatsoever, to any company or association not authorized to do business in this state, any risk or liability or any part thereof assumed by it, under any form or contract of insurance, covering property located in this state, including any risk or liability under any general or floating policy, or any agreement, general, floating or specific, to reinsure excess loss by one or more fires. 1307. Not reinsure, when. SEC. 4. No fire insurance company or association shall reinsure, or assume as a reinsuring company, or otherwise, in any manner or form whatsoever, the whole or any part of any risk or liability, covering property located in this state, of any insurance company or association not authorized to transact business in this state. 1308. Affidavit to annual statement. SEC. 5. At the time of the filing of the annual statement of every insurance company or association doing business in this state, with the state controller, there shall be attached thereto the affidavit of the president, manager or chief executive officer in the United States that this act has not been violated. 1309. Penalty-Authority revoked-Reinstatement. SEC. 6. Any insurance company or association wilfully violating, or failing to observe and comply with, any of the provisions of this act shall be subject to and liable to pay a penalty of five hundred dollars for each violation thereto and for each failure to observe and comply with any provisions of this act; such penalty may be collected and recovered in an action brought in the name of the state in any court having jurisdiction thereof. Any insurance company or association which shall neglect and refuse for thirty days. after judgment in any such action to pay and discharge the amount of such judgment, shall have its authority to transact business in this state revoked by the state controller and such revocation shall continue for at least one year from the date thereof, nor shall any insurance company or association whose authority to transact business in this state shall have been so revoked be again authorized or permitted to transact business herein until it shall have paid the amount of any such judgment and shall have filed in the office of the state controller a certificate signed by its president or other chief officer to the effect that the terms and obligations of the provisions of this act are accepted by it as a part of the conditions of its right and authority to transact business in this state. An Act relating to life, health, accident and annuity or endowment insurance on the assessment plan, and the conduct of the business of such insurance. Approved March 23, 1891, 130 1310. "Mutual insurance" defined. 1312. Must begin business in one year. 1316. Conditions precedent to foreign corpo- 1310. "Mutual insurance" defined. 1317. Insurable age-Penalty for fraud— 1320. Controller may call officers to account. 1323. Penalties-Expenses, how paid. 1324. Not to apply to fraternal societies. SECTION 1. Every contract whereby a benefit may accrue to a party or parties therein named upon the death or physical disability of a person or an animal insured thereunder, or for the payment of any sums of money dependent in any degree upon the collection of assessments or dues from persons or owners holding similar contracts, shall be deemed a contract of mutual insurance upon the assessment plan. Such contracts must show that |