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lodges of Masons, Knights of Pythias, Odd Fellows, or similar orders that do not have as their principal object the issuance of insurance certificates of membership. Nor shall anything therein contained apply to lodges or orders of a purely religious, charitable or benevolent description, paying exclusively sick, funeral or death benefits to members, their families or blood relatives, or dependents, or for purely charitable purposes, and not operating with a view to profit, nor shall any such organization be required to make any report under this or any other section of the insurance laws, and provided further, that no society, lodge or body of any secret or fraternal society or organization of employes of any particular trade, firm, or corporation paying only sick benefits not exceeding two hundred and fifty dollars ($250) in the aggregate to any person in any one year, or a funeral benefit to those dependent on a member not exceeding three hundred and fifty dollars ($350), shall be required to make any report thereof under this article, or under other articles of the insurance laws. 94 0. L. 354.
(5 3631-24.) Sec. 1. Incorporation of companies for mak
ing life insurance on the stipulated premium
planThat five or more persons may, in the manner and according to the forms and requirements for the incorporation of insurance companies mentioned in sections 3588 and 3589 of the Revised Statutes and in this act, become an incorporated company for the purpose of making insurance upon the lives and health of individuals, and every insurance appertaining thereto or connected therewith, on the stipulated premium plan as defined and regulated herein. 93 O. L. 343.
(5 3631-25.) Sec. 2. Completion of organization - Deposit
of securities to be made with superintend
entNo such corporation, company or association shall commence the business of life insurance until at least two hundred persons eligible under the proposed plan of the organization shall have subscribed in writing to be insured therein in the aggregate amount of at least five hundred thousand dollars, and shall have each paid or become obligated to pay the amount of one annual stipulated net premium for their age at entry on the amount of insurance severally subscribed for, and which shall be held in trust for the benefit of the members of said corporation or their beneficiaries; nor until the superintendent of insurance shall have further certified that it has complied with the provisions of this act and is authorized to transact the business of insurance. Provided, however, that every corporation incorporating or reincorporating under the provisions of this act, shall deposit with the superintendent of insurance in such securities as are required by law to be deposited by insurance companies, the sum of five thousand dollars within one year after the date of such incorporation or reincorporation, and such corporation shall each year thereafter, upon filing its annual statement, deposit in like securities with the superintendent of insurance, the sum of two thousand dollars on each million of insurance in force for the last calendar year, as shown by its said annual statement, until the sum of one hundred thousand dollars shall have been deposited. The securities deposited with the insurance department pursuant to this section shall be held by the superintendent in trust for the benefit and protection of and as security for the policy holders of such corporation, their legal representatives and beneficiaries. 93 0. L. 343.
(§ 3631-26.) Sec. 3. Life insurance on stipulated premium
plan defined ; corporations subject to provisions of act; application of existing stat
utesAny corporation, company or association which issues any policy, certificate or other evidence of interest to, or makes any promise or agreement with its members whereby any money or other benefit is to be paid to a member, or upon his decease to his legal representative, or the beneficiary designated by him, which money or benefit is derived from stipulated premiums collected from its members, or members of a class therein, or from interest or accumulations, and wherein the money or other benefits so realized is applied to or accumulated for the use and purposes of such corporation as herein specified; and the expenses of its management and prosecutions of its business, shall be deemed to be engaged in the business of life insurance, upon the stipulated premium plan, and shall be subject only to the provisions of this act, excepting that the provisions of chapter 8, title 3, part 1, and of chapter 10, title 2, part 2, of the Revised Statutes shall be applicable so far as the same are not inconsistent with the provisions of this act. 93 O. L. 343.
($ 3631-27.) Sec. 4. Existing corporations, companies,
associations or societies may accept provisions of act; how-Existing contract or liability of corporation not to be affected by its reincorporation or acceptance-Pend
ing actions or rights unaffectedAny domestic corporation, company, association or society, existing or doing business under the provisions of chapter 10, title 2, part 2, of the Revised Statutes, at the time this act takes effect, may, by a vote of a majority of its board of directors or trustees, and upon obtaining the consent of the superintendent of insurance thereto, in writing, accept the provisions of this act, and amend its articles of incorporation to conform with the same, SO as to cover and enjoy any and all the provisions or privileges of this act, which might have been included and enjoyed, if it had been originally incorporated hereunder; and it shall file such amendment of its articles of incorporation and the consent required by this section, in the office of the secretary of state, and shall thereafter perpetually enjoy the same and be deemed to have been incorporated under this act. The reincorporating or qualifying of any existing domestic or foreign corporation under the provisions of this act shall in no way annul, modify or change any existing contract, contracts or liabilities of such existing corporation, and any and all such contracts and liabilities shall continue in full force and effect the same as though such corporation had not reincorporated or qualified under this act. Neither shall the reincorporating or qualifying of any such corporations under the provisions of this act, in any way prejudice, impede or impair any pending action or proceeding, or any rights previously accrued. 93 0. L. 343.
(§ 3631-28.) Sec. 5. Minimum premiums,
Every such corporation, company or association doing business under the provisions of this act shall charge at least a net premium calculated upon the combined experience or actuaries' table of mortality, with interest at the rate of four per centum per annum, equal to that of a yearly term insurance at the age of entry. Such premium shall be increased by a loading of not less than twenty-five per centum, and may be made annually, semi-annually, quarterly or bymonthly in advance.
($ 3631-29.) Sec. 6. Reserve fund to be maintained, etc.
Every such corporation, company or association shall accumulate and at all times maintain a reserve fund not less than the net premium, according to the term of premium payment of each policy, upon all its outstanding policies, which net premium shall equal the amount called for by the combined experience or actuaries' table of mortality at the attained age of the insured, computed as specified in section five of this act. If the amount of such reserve fund is at any time reduced to less than such net premium upon all its outstanding policies at the attained age of the insured, or to less than the reserve required by the terms and conditions thereof, such deficiency shall be made up and restored to said fund within three months thereafter. Should such impairment of the reserve fund not be made good within three months, then the superintendent of insurance shall require the officers of such corporation to forthwith notify its members to pay, within thirty days from the mailing of such notice, an extra premium sufficient to meet such deficiency apportioned equitably, and any such extra premium shall not be less than the difference between the actual net premium paid, and the net premium at attained age. If any member fails to pay such extra premium within the time named, the corporation shall scale down the policy of each and every member so failing to pay to such an amount as is necessary to make the reserve fund to his credit equal to said unearned premium on his insurance remaining in force, which amount shall be the maximum for which the corporation shall be liable under said policy. Said thirty days' notice shall clearly state the proportionate amount of the impairment due from the insured and shall contain the further statement that in the event of failure to pay the same within thirty days after the mailing of such notice, said policy will be scaled down as aforesaid. 93 O. L. 343.
($ 3631-30.) Sec. 7. Limited payment policies,
Any corporation, company or association doing business under
this act may issue limited payment policies; provided such policies hereafter issued distinctly state the portion of each of the premiums to be held by, and charged against such corporation for the purpose of sustaining such policies after expiration of the term of years in which the premiums are to [be] paid, which shall not be less than the legal reserve ally according to the actuaries or combined experience table of mortality with interest at four per cent per annum and which portion at the expiration of such term of years together with the interest accredited thereto, shall not then nor thereafter be less than the single net premium at the attained age, according to the actuaries or combined experience table of mortality, with interest at four per centum per annum; and if any such corporation doing business under this act shall not state in its limited payment policies the portion of each of the premiums to be held by it for the purpose of sustaining the insurance after the term of years during which the premiums are to be paid, or if any such corporation shall issue any form of investment policies, then such limited payment or other form of investment policies hereafter issued shall be valued on the basis of the actuaries or combined experience table of mortality, and interest at four per centum per annum, as provided and contemplated in section two hundred and seventy-nine of the Revised Statutes. 93 O. L. 343.
$ (3631-31). Sec. 8. Cash values
Any corporation, company or association authorized to do business hereunder, may pay fixed cash values, provided the amount of reserve computed and to be set apart for such cash value is plainly stated in the policy, and provided further that such cash value shall not be in excess of the portion of the premium with interest accretions thereon, collected for such purpose.
S (3631-32). Sec. 9. Distribution of surplus
If the cash and invested assets of the corporation, company or association, exceed the reserve fund required by this act, or under the terms and conditions of its policy contracts, and the actual liabilities of said corporation to an amount in excess of ten per centum of such reserve fund, then the amount of such excess may, if the policy contract so provides, be apportioned by