quired to have a lodge or branch system and a representative form of government.

Membership in such corporation shall be confined to the members of such religious organization. Commercial travelers shall also be allowed to incorporate under the provisions of this Act, but membership of such incorporation shall be confined to those actively engaged as commercial travelers, and officers, buyers or sellers for corporations, associations and copartnerships, or individuals who employ commercial traveling men. Such commercial travelers' incorporation shall have a lodge or branch system and representative form of government. All such societies shall be governed by this Act, and shall be exempt from the provisions of all insurance laws of this State, and no law hereafter passed shall apply to them, unless they be expressly designated therein: Provided, that this Act shall not be construed to prevent any society having a supreme lodge with separate jurisdiction, which by their law provides for a general relief or reserve fund, from making assessments to pay its pro rata share of such relief or reserve fund, or from receiving their pro rata of any such fund. APPROVED June 24, 1921.

$ 1.

COUNTY MUTUAL WINDSTORM COMPANIES.

Amends section 8, Act of 1889.

§ 8. May issue policies on
dwellings etc. time

amount - reinsurance-
against loss by wind-
storms.

(HOUSE BILL NO. 452. APPROVED JUNE 28, 1921.)

AN ACT to amend section 8 of "An Act to authorize the organization and to regulate county, mutual, windstorm insurance companies," approved June 4, 1889, in force July 1, 1889, as amended.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: Section 8 of "An Act to authorize the organization and to regulate county, mutual, windstorm insurance companies," approved June 4, 1889, in force July 1, 1889, as amended, is amended to read as follows:

§ 8. Such company may issue policies only on dwellings, barns and other farm buildings, churches and school houses and such property as may properly be contained therein, for any time not exceeding five (5) years and not to extend beyond the limited duration of the charter and for an amount not to exceed $10,000 on any one risk. Any such company may cede or accept reinsurance on the whole or on any part of any risk located within or without the territory of such company, in any manner not prohibited by law. All persons so insured shall give their obligations 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 windstorms 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 charges as may be required by the rules or by-laws of the company.

APPROVED June 28, 1921.

LIFE COMPANIES-DEPOSIT OF RESERVE AND REGISTRATION OF

POLICY.

§ 1. Amends section 11, Act of 1899.

§ 11. When deposit of reserve
and registration of pol-

icy may be discontin-
ued.

(HOUSE BILL No. 270.

APPROVED JUNE 24, 1921.)

AN ACT to amend section 11, of "An Act to provide for the deposit of reserve and the registration of policies and annuity bonds by life insurance companies of this State", approved April 18, 1899; in force July 1, 1899; as amended by an Act approved May 20, 1907. In force July 1, 1907.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That section 11 of an Act entitled "An Act to provide for the deposit of reserve and the registration of policies and annuity bonds by life insurance companies of this State", approved April 18, 1899. In force July 1, 1899. As amended by an Act approved May 20, 1907. In force July 1, 1907; be and the same is hereby amended to read as follows:

§ 11. Any company making deposits and registering its policies and annuity bonds pursuant to this Act may, through action by its board of directors or other governing body corresponding thereto, at any time when the insurance under its registered policies in force exceeds fifty million dollars ($50,000,000), cease to register its policies and annuity bonds issued subsequent to the completion of the steps herein required and cease to deposit the reserves thereon. It shall be necessary for the board of directors or corresponding governing body to express their desire to take advantage of this provision by resolution adopted by a majority thereof at any duly called meeting, and a notice of such proposed resolution shall be contained in the notice of the meeting. A copy of such resolution and certificate of the adoption thereof verified by the affidavits of the president and secretary and under the seal of the corporation shall be submitted to the Department of Trade and Commerce, and when said department shall have determined by examination or otherwise that the above requirement regarding the minimum amount of insurance is complied with it shall file the document, whereupon the resolution shall be deemed effective, and thereafter no policy or annuity bond of such company shall be registered under the provisions of this Act. Nothing in this section contained shall be construed to extend to or affect any policy or annuity bond registered prior to the taking effect of such resolution, nor the obligation of the company issuing the same to maintain and increase the deposit thereon, in accordance with the provisions of this Act.

APPROVED June 24, 1921.

(HOUSE BILL No. 437. FILED JULY 2, 1921.)

AN ACT to amend "An Act to incorporate companies to do the business of life or accident insurance on the assessment plan, and to control such companies of this State and of other states doing business in this State, and to repeal a certain Act therein named, and providing and fixing the punishment for violation of the provisions thereof," approved June 22, 1893, in force July 1, 1893, as amended.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: Section 9 of "An Act to incorporate companies to do the business of life or accident insurance on the assessment plan, and to control such companies of this State and of other states doing business in this State, and to repeal a certain Act therein named, and providing and fixing the punishment for violation of the provisions thereof," approved June 22, 1893, in force July 1, 1893, as amended, is amended to read as follows:

$9. No corporation doing business of life insurance under this Act shall issue a certificate or policy upon the life of any person more than sixty-five years of age, excepting in case of transfer of policy holders as provided herein, nor upon a life in which the beneficiary named has no insurable interest. Any assignment of the policy or certificate to a person having no insurable interest in the insured life shall render such a policy or certificate void. Policies of life insurance which contain provisions operating in event that the insured shall become totally and permanently disabled from any cause, to safeguard the insured against lapse or to grant a special surrender value, or an annuity payable for a limited period or during the life of the insured, or which contain provisions granting insurance against death by accident, shall be deemed to be policies. of life insurance within the intent of this Act: Provided the association or company issuing same shall have admitted assets of at least $100,000.00 and provided further, that nothing contained in this section shall apply to fraternal beneficiary societies.

FILED July 2, 1921.

The Governor having failed to return this bill to the General Assembly during Its session, the General Assembly having adjourned sine die on June 30, 1921, and he having filed the same in my office on this date without signature or objections, it has therefore become a law.

Witness my hand this 2nd day of July, A. D. 1921.

LOUIS L. EMMERSON, Secretary of State.

AN ACT to amend sections 1 and 2 of an Act entitled, "An Act relating to the transaction of the business of life insurance in the State of Illinois, and regulating the conditions and provisions of policies of life insurance companies, organized under the laws of this State or doing business herein," approved May 20, 1907; in force January 1, 1908; as amended by an Act approved June 26, 1917; in force July

I, 1917.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That sections 1 and 2 of an Act entitled, "An Act relating to the transaction of the business of life insurance in the State of Illinois, and regulating the conditions and provisions of policies of life insurance companies, organized under the laws of this State or doing business herein," approved May 20, 1907; in force January 1, 1908; as amended by an Act approved June 26, 1917; in force July 1, 1917, be and the same are hereby amended so as to read as follows:

§ 1. That from and after January 1, 1908, no policy of life insurance shall be issued or delivered in this State or be issued by a life insurance company organized under the laws of this State, unless the same shall provide the following:

(1) That all premiums after the first shall be payable in advance, either at the home office of the company or to an agent of the company, upon delivery of a receipt signed by one or more of the officers who shall be designated in the policy.

(2) For a grace of one month for the payment of every premium after the first year which may be subject to an interest charge, during which month the insurance shall continue in force: Provided, that if the insured shall die within the month of grace the unpaid premium for the current policy year may be deducted in any settlement under the policy.

(3) That the policy, together with the application therefor, a copy of which application shall be endorsed upon or attached to the policy and made a part thereof, shall constitute the entire contract between the parties and shall be incontestable after it shall have been in force, during the lifetime of the insured, for two years from its date, except for non-payment of premiums and except for violations of the conditions of the policy relating to the naval or military service in time of war and except as to provisions and conditions relating to benefits in the event of total and permanent disability and those granting additional insurance specifically against death by accident: Provided, that the application therefor need not be attached to or made a part of any policy containing a clause making the policy incontestable from date of issue.

(4) That if the age of the insured has been misstated the amount payable under the policy shall be such as the premium would have purchased at the correct age, or the premium may be adjusted and credit given to the insured or to the company, according to the company's published rate at date of issue.

(5-a) That the policy shall participate in the surplus of the company, and any policy containing provision for participation at the end of the first policy year, and annually thereafter, may also provide that each dividend shall be paid subject to the payment of the premium for the next ensuing year; and the insured under any annual dividend policy shall have the right each year to have the dividend arising from such participation paid in cash, and if the policy shall provide other dividend options, it shall further provide that if the insured shall not elect any such other options, the dividend shall be paid in cash. Such participation may, however, begin not later than the end of the twentieth policy year.

(5-b) If any company shall issue any policies under the terms of which the payment of dividends is deferred later than the third policy year, such company shall furnish the Department of Trade and Commerce each year a statement showing the number and amount of all policies with deferred dividends in force at the beginning of the year for which the statement is made; of all such policies issued and revived or terminated during the said year with the mode of termination; and the number and amount of all such. policies in force at the end of said year. Also a statement showing any and all amounts provisionally set apart, ascertained or calculated or held awaiting apportionment upon such policies at the beginning of said year, the additions made to the said fund during the year, with the source from which such additions arise, the deductions made from the said funds during the year, with the reasons therefor and the amount of said fund at the end of the year; which shall be carried as a distinct and separate liability to such class of policies on and for which the sum was accumulated. Upon written request of the insured under any deferred dividend policy, after said policy shall have been in force more than three years, the company shall furnish said policy holder with a statement of the amount of surplus provisionally ascertained or set aside on such policy and held awaiting apportionment at the expiration of the deferred dividend period.

(5-c) The provisions of the preceding paragraphs numbered (5a) and (5b) of this section shall not apply to any form of paid-up insurance or temporary insurance or pure endowment insurance, issued or granted in exchange for lapsed or surrendered policies, or to non-participating policies: Provided, however, that if any company shall issue any non-participating policy under the terms of which any stipulated part of premiums received is to be placed in a separate fund for subsequent apportionment, such company shall furnish the Department of Trade and Commerce each year a statement showing the number and amount of all such policies in force at the beginning of the year for which the statement is made; of all