§ 2. All fraternal insurance societies doing business in the State of Illinois shall amend their by-laws so as to comply with the requirements of section I on or before the first day of January, 1910.

§ 3. Any fraternal insurance society failing to comply with the requirements of this Act shall be prohibited from doing business in this State, and it shall be the duty of the Superintendent of Insurance to revoke the license of any fraternal insurance society not incorporated under the laws of this State, and if incorporated under the laws of this State, to enjoin them from further continuing business, until the requirements of the provisions of this Act are complied with. APPROVED May 23, 1907.

AN ACT empowering fraternal beneficiary societies organized and existing under and by virtue of the laws of the State of Illinois, to create, maintain and operate as a part of their organization, a department for the purpose of providing and furnishing to their sick, disabled and distressed members and their families, free medical, home, sanitorium and hospital service and treatment, and other material aid and assistance, and to create, maintain and disburse for such purposes, a trust fund to be raised by and from voluntary contributions, and declaring such departments to be charitable institutions, and competent as such to be named, and to take, as beneficiary by its members in certain cases.

SECTION I. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That any fraternal beneficiary society organized and existing under and by virtue of the laws of the State of Illinois, adopting the benefit of this Act, in the manner provided herein, may create, maintain and operate as a part of its organization, a department for the purpose of providing and furnishing to its sick, disabled and distressed members and their families, free medical, home, sanitorium and hospital service and treatment, and such other material aid and assistance as may be provided by such society. in its laws, and the by-laws, rules and regulations governing such department, and for such purposes such societies may own, hold and lease real property and suitable buildings necessary to carry out any of the aforesaid objects and purposes, and create, maintain and disburse a special fund.

§ 2. Such special fund shall be created and maintained by and from voluntary gifts, contributions or payments made by the subordinate lodges of such societies, or by the individual members thereof,

or both, upon such terms and conditions as may be prescribed in and by the by-laws, rules and regulations adopted by the board of directors or managers of such department, and by and from such contributions from the expense fund of such society as may be authorized by the board of officers, managers or governing body of such society.

§ 3. Such special fund shall be used exclusively for the purposes for which it is created, and shall constitute a trust fund for such purposes. The expense of maintaining and operating such department shall be borne by, and paid from such special fund, and such fund and all the property of such department shall be held free and clear of, and shall not in any manner be used for, or be or become charged with, or liable for, the payment of any claims, debts or liabilities of such society; nor shall such society or any other of its funds or property, in any manner be used for, or be or become charged with, or liable for, the payment of any of the claims, debts or liabilities, or expense of maintaining or operating such department, except to the extent of the contributions from the expense fund of such society authorized in manner provided by section two of this Act.

4. The board of officers, managers or governing body of any fraternal beneficiary society organized and existing under and by virtue of the laws of the State of Illinois, desiring to accept the benefit of the provisions of this Act on behalf of such society, shall adopt a resolution to that effect, and provide for the creation of a department of such society under the name therein designated, and shall then submit such resolution to a vote of all the subordinate lodges of such society, and on receiving the affirmative votes of not less than twothirds of such lodges thereon, the provisions of this Act shall be thereby extended over, and this Act shall be in force and effect in such society when the provisions of section five of this Act shall be complied with.

5. Any fraternal beneficiary society organized and existing under and by virtue of the laws of the State of Illinois, may accept the benefit of the provisions of this Act in manner provided by section four hereof, but such action shall not be of legal effect until a certificate subscribed and sworn to by the president, and attested by the secretary of such society under its corporate seal, setting forth the terms of the resolution, and the manner in which it was submitted to vote, together with the result of the vote thereon, shall have been submitted to and be approved by the Insurance Superintendent, and filed in the office of the Secretary of State, and a certified copy thereof be recorded in the office of the Recorder of Deeds in the county [in] which the certificate of incorporation of such society was recorded. Every such society having complied with the provisions of section four of this Act shall comply with the further provisions of this section, within ninety days thereafter.

§ 6. The management and operation of such department shall be exercised by a board of directors or managers of not less than nine members, as shall be provided by the by-laws of such department, and the officers shall consist of a president, secretary and treasurer and

such other officers and agents as shall be determined by the directors or managers, and the directors or managers may adopt by-laws, rules and regulations, which shall provide for the government of the officers and the affairs of such department, and the terms and conditions upon which the benefits thereof shall be furnished, but such by-laws, rules and regulations before the same shall be of force and effect, shall first receive the approval of the executive or managing committee of such society. The directors or managers may require of the officers and agents, bonds with such sureties and conditions as they shall deem proper. The officers shall hold their respective offices for the terms provided by the by-laws.

87. Each such department, when organized in manner provided by this Act, is hereby declared to be a charitable institution, with all the rights, benefits and privileges given to charitable institutions under and by the constitution and laws of the State of Illinois, and such department is hereby declared to be competent to be named and to take as beneficiary in and by the benefit certificate of any member of such society having no wife or children living, under the provisions of the laws of the State of Illinois relating to fraternal beneficiary societies.

AN ACT to amend an Act entitled "An Act to organize and regulate the business of life insurance," approved March 26, 1869, in force July 1, 1869, by adding a section to be known as section 6a.

SECTION I. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That an Act entitled "An Act to organize and regulate the business of life insurance," approved March 26, 1869, in force July 1, 1869, be, and the same is hereby amended by the addition of a section to be known as section 6a, as follows:

§ 6a. The Superintendent of Insurance of this State is authorized and empowered to add to the provisions and requirements of the blank referred to in section 6 of the Act of 1869 and to enlarge the blank provided in said Act and to call for such other and additional information as the said Superintendent of Insurance may deem desirable and necessary and all insurance companies doing business in this State shall be subject to such additional requirements and shall comply therewith and the failure so to do shall subject any company so failing to comply with such additional requirements to all of the penalties provided by said Act.

APPROVED May 20, 1907

LIFE INSURANCE-DEPOSIT OF RESERVE AND REGISTRATION—1.

(SENATE BILL NO. 320. APPROVED MAY 23, 1907.)

AN ACT to amend sections 1, 3 and 6 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.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That sections 1, 3 and 6 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, be and the same are hereby amended to read as follows:

§ 1. That any life insurance company now incorporated or which may hereafter be incorporated under the laws of this State may deposit with the Insurance Superintendent in addition to the amount now required and authorized by law to be deposited with him, securities to any amount not less than $10,000, which shall be legally transferred by it to him as Insurance Superintendent for the common benefit of all the holders of its registered policies and annuity bonds issued under the provisions of this Act which shall be held by him in trust for the purposes and objects specified herein. Such securities may include in addition to those authorized by law to be deposited with him under the provisions of "An Act to organize and regulate the business of life insur

approved March 26, 1869, in force July 1, 1869, certificates of deposit issued by any national bank or any bank or trust company organized under the laws of this State, and certificates of purchase acquired by such company through foreclosure proceedings instituted by it upon mortgages in which its funds have been lawfully invested, and duly recorded conveyances of unencumbered improved real estate lawfully acquired by such company accompanied by satisfactory evidence of ownership thereof, and the Insurance Superintendent shall hold the title to such real estate so conveyed to him in trust as aforesaid until other satisfactory securities in lieu thereof have been deposited with him whereupon he shall reconvey the same to such company. The Insurance Superintendent may cause such real estate to be valued and the company shall pay the reasonable expenses incurred in such valuation.

3. Each company which shall have made the deposit herein provided for shall make additional deposits from time to time in amounts of not less than five thousand dollars, and of such securities as are permitted by section I of this Act to be deposited so that the market value of the securities deposited shall always be equal to the net value of the registered policies and annuity bonds issued by said company, less such liens (not exceeding such net value) as the company may have

against them. So long as any company shall maintain its deposit, as herein prescribed, at an amount equal to or in excess of the net value of its registered policies and annuity bonds as aforesaid, it shall be the duty of the Superintendent to sign and affix his seal to the certificates. before mentioned on every policy and annuity bond presented to him for that purpose by any company so depositing.

6. Any company depositing under the provisions of this Act may increase its deposits at any time by making additional deposits of not less than five thousand dollars of such securities as are authorized by this Act. Any such company whose deposits exceed the net value of all registered policies and annuity bonds it has in force, less such liens (not exceeding such net value) as the company may hold against them, may withdraw such excess, or it may withdraw any of said securities at any time by depositing others of equal value and of the character authorized by this Act in their stead: and so long as said company shall remain solvent and keep up its deposits, as herein required, it may collect the interest, coupons, rents and other income on the securities deposited as the same accrue.

APPROVED May 23, 1907.

1.

LIFE INSURANCE-DEPOSIT OF RESERVE AND REGISTRATION-2. Amends section 2, Act of 1899.

§ 2.

§ 2.

When Act in force.

(HOUSE BILL No. 205. APPROVED MAY 20, 1907.)

AN ACT to amend section 2 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.)

I.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That section 2 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,) be and the same is hereby amended to read as follows:

After making the deposit mentioned in the preceding section, no company shall issue a policy of insurance or endowment or an annuity bond, unless it shall have upon its face a certificate in the following words: "This policy is registered; and approved securities, equal in value to the legal reserve hereon, are held in trust by this department," which certificate shall be signed by the superintendent and sealed with the seal of his office. Such policies and bonds, shall be known as registered policies and annuity bonds, and a duplicate or copy of each kind, class and issue shall be kept in the office of the Insurance Superintendent. All policies and bonds of each kind and class issued, and the copies thereof filed in the office of the superintendent, shall have imprinted thereon some appropriate designating letter, combination of