mortgages aforesaid, or one or more of them, duly made or assigned to the superintendent in trust for the purposes mentioned in this chapter; and when any mortgage of real estate is assigned to the superintendent, the assignment shall be immediately entered in the records of the county in which the real estate is situate, the fee for the recording of which shall be paid by the company. 69 v. 150, § 8.

Such securities are held only for benefit of policy holders; and subject to their rights are also subject to the rights of the makers; and on dissolution, if the securities are sufficient, there should be collected the amount needed to pay such claims of policy holders; if the securities are not sufficient, the proceeds should be duly applied upon the claims of such policy holders. As against the makers, the company has no rights in accommodation notes and mortgages given for the purpose only of such deposit. Falkenbach v. Patterson, Receiver, 43 Ohio St. 359.

§ 3594. Company may change such deposits, and collect interest

The superintendent of insurance shall hold such securities as security for policy holders in the company; but so long as any company so depositing continues solvent he shall permit it to collect the interest or dividends on its securities so deposited, and from time to time to withdraw such securities, or any part thereof, on depositing with him other securities of the kinds. heretofore named, and of equal value with those withdrawn. 69 V. 150, § 9.

§ 3595. When company may commence business

When the company is fully organized, and has deposited the requisite amount of securities as aforesaid, the superintendent shall, unless he find the name assumed by the company so nearly similar to the name of another company organized in this state as to lead to confusion or uncertainty on the part of the public, furnish the company with a certificate of such deposit, which with a certified copy of the papers required by this chapter, when filed in the county recorder's office of the county wherein such company is located, shall be the authority to commence business and to issue policies, and the same may be used in evidence for and against the company in all actions. 69 v. 150, § 10; 75 v. 557, 2;

§ 3596. What kind of business such companies may do—

No company, organized under the laws of this state, shall undertake any business of risk, except as herein provided; and no company, partnership, or association, organized or incorporated by act of congress, or under the laws of this or any other state of the United States, or by any foreign government, transacting the business of life insurance in this state, shall be permitted or allowed to take any other kind of risks, except those connected with, or appertaining to making insurance on life or against accidents to persons, and granting, purchasing and disposing of annuities; nor shall the business of life insurance, or life and accident insurance, in this state be in any wise conducted or transacted by any company, partnership or association, which in this state, or any other state or country, makes insurance on marine, fire, inland, or any other risk, or does a banking or any other kind of business in connection with insurance. 85 O. L. 119.

An agreement to pay an annuity to a husband and wife "during their natural lives," binds the party to pay the annuity during the life of the survivor also. Douglas v. Parsons, 22 Ohio St. 526.

$3597. Definitions-Consolidation and reinsurance-Petition to superintendent of insurance-Notice to policy holders-Commission to hear and determine petition-Costs-Penalties

The word company or companies when used in this act shall mean any corporation or association authorized to do the business of life, accident or health insurance, either on the stock, mutual, stipulated premiums, assessment or fraternal plan. No company organized under the laws of this state to do the business of life, accident or health insurance, either on stock, mutual, stipulated premiums, assessment or fraternal plan, shall consolidate with any other company, or reinsure its risks, or any part thereof with any other company, or assume or reinsure the whole of [or] any portion of the risks of any other company, except as hereinafter provided; but nothing herein contained shall prevent any such company from reinsuring a fractional part, not exceeding one-half, of any single risk. When any such company shall propose to consolidate with any other company, or enter into any contract of reinsurance, it shall present its petition to the superintendent of the insurance department of this state, setting forth the terms and conditions of such proposed consolidation or reinsurance,

and praying for the approval or of any modification thereof, which the commission hereinafter provided for may approve. The superintendent shall thereupon issue an order of notice, requiring notice to be given by mail to the policy holders of such company, of the pendency of such petition, and the time and place at which the same will be heard, and the publication of said order of notice and said petition, in five daily newspapers designated by the superintendent, at least one of which shall be published in the city of Columbus, for at least two weeks before the time appointed for the hearing upon said petition. The governor of the state, or in event of his inability to act, some competent person resident of the state, to be appointed by him, the attorney-general of the state, and the superintendent of insurance of the state, shall constitute a commission to hear and determine upon said petition. At the time and place fixed in said notice, or at such time and place as shall be fixed by adjournment, said. commission shall proceed with said hearing, and may make such examination into the affairs and condition of said company as it may deem proper. The superintendent of the insurance department of this state shall have the power to summon and compel the attendance and testimony of witnesses and the production of books and papers before said commission. Any policy holder or stockholder of the above named company or companies may ap pear before said commission and be heard in reference to said petition. Said commission, if satisfied, that the interests of the policy holders of such company or companies are properly protected, and that no reasonable objection exists thereto, may approve and authorize the proposed consolidation or reinsurance, or of such modification thereof as may seem to it best for the interests of the policy holders, and said commission may make such order with reference to the distribution and disposition of the surplus assets of any such company thereafter remaining, as shall be just and equitable. Such consolidation or reinsurance shall only be approved by the consent of all the members of said commission, and it shall be the duty of said commission to guard the interests of the policy holders of any such company or companies proposing to consolidate or reinsure. All expenses and costs incident to proceedings under this section shall be paid by the company or companies bringing said petition. Any officer, director or stockholder of any such company or companies

violating or consenting to the violation of this section shall be punished by fine of not less than ten thousand dollars, and by imprisonment in a county or city jail for not less than one year. 94 O. L. IO3.

§ 3598. How companies may invest accumulations—

A company organized under the laws of this state may invest its accumulations as follows, and may sell, change or reinvest the same, or any part thereof, at pleasure:

I. In United States, state, county, or city bonds, if the market value of the bonds, at the date of purchase, is at least eighty per cent of their [par] value.

2. In bonds and mortgages upon unincumbered real estate, the market value of which real estate is at least double the amount loaned thereon, exclusive of buildings, at the date of the investment, and the value of such real estate shall be determined by a valuation, made under oath, by two real estate owners, residents of the county where the real estate is located.

3. In loans upon the pledge of such bonds or mortgages, if the current market value of the bonds or mortgages is at least twentyfive per cent more than the amount loaned thereon.

4. In loans upon its own policies, but not exceeding the reserve or present value thereof computed according to the American experience table of mortality, with interest at four per cent, the same being the amount of the debts of life insurance companies by reason of their outstanding policies in gross.

This section shall not prohibit any company from accepting any other assets than herein enumerated in payment of debts due the company, in order to protect its interests, or from acquiring real estate for its own use, or by foreclosure in accordance with the laws of the state. 75 v. 576, 11.

§ 3599. What real estate they may acquire—

No company organized under the laws of this state shall purchase, hold, or convey real estate, except for the purposes and in the manner herein set forth, to wit:

I.

Such as is requisite for its immediate accommodation in the transaction of its business; or,

Such as has been mortgaged to it in good faith, by way of security for loans previously contracted, or for money due; or,

3. Such as has been conveyed to it in satisfaction of debts previously contracted in the course of its dealings; or,

4. Such as it has purchased at sales upon judgments, decrees, or mortgages, obtained or made for such debts. 69 v. 150, § 12.

§ 3600. When real estate must be sold

All real estate acquired as aforesaid, and which is not necessary for the accommodation of a company in the convenient transaction of its business, shall be sold and disposed of within two years after the company acquires title to the same; and the company shall not hold such real estate for a longer period than herein mentioned, unless it procure a certificate from the superintendent of insurance that the interests of the company will suffer materially by a forced sale of such real estate, in which event the time for the sale may be extended to such time as the superintendent shall direct in the certificate. 69 v. 150, § 13.

§ 3601. Certain actions authorized

Actions may be maintained by any company formed under the laws of this state against any of its members, officers, policy holders, or stockholders, for any cause relating to the business of the company; and actions may be prosecuted and maintained by any member, stockholder, or policy holder, or the heirs or legal representatives of either, against the company, for losses which accrue on any risk, if payment be withheld more than two months after the losses become due. 69 v. 150, § 15.

As to bringing suit after limitation named in policy, see Met. Life Ins. Co. v. Gierl, 16 C. C. 294; affirmed in 57 O. S. 671; decisions noted under sec. 3643.

Limitation by contract is valid, and not affected by sec. 4991. Prudential Ins. Co. v. Howle, 19 C. C. 621.

§ 3602. When dividends may be paid

The directors, managers, or officers of any company organized under the laws of this state shall not, directly or indirectly, make or pay any dividend, or pay any interest, bonus, or other allowance in lieu of dividend, to its stockholders, except from the surplus funds, after reserving therefrom an amount sufficient to reinsure all its outstanding risks and policies, estimating the value thereof by the table known as the American experience table, with interest at four per cent per annum. 69 v. 150, § 16.