to property resulting from any act of the employe or any accident or casualty to persons, or property, or both, occurring in or connected with the transaction of their business, or from the operation of any machinery connected therewith, but nothing herein contained shall be construed to authorize any life insurance company to insure against loss or injury to person, or property, or both, growing out of explosion or rupture of steam boilers. [31 G. A., ch. 74.]

See 1709 Sub-sec. 5. Accident and Employers' Liability, See 1759a, 1784, 1822.

Sec. 1783-e. Capital stock-minimum amount. From and after the taking effect of this act, no insurance company shall be incorporated to transact business upon the stock plan, whether life insurance or insurance other than life, with less than one hundred thousand dollars ($100,000) capital, the entire amount of which shall be fully paid up in cash and invested as provided by law. No part of the capital referred to, shall be loaned to any officer or stockholder of the company. [32 G. A., ch. 79, § 1.]

See 1769-72.

Other than Life 1691, 1701-21-32-69.

Sec. 1783-f. Companies heretofore organized. The certificate of authority of any company heretofore organized and transacting business on the stock plan shall not be renewed after January 1, 1910, unless said company shall have, at said time, at least one hundred thousand dollars ($100,000) of capital stock; at least fifty thousand dollars ($50,000) of which shall be paid up in cash and invested according to law. The remainder of said capital may. be represented by stock notes payable to the company on demand of its board of directors and said notes shall be deposited with the auditor of state subject to his approval. But no increase of the capital stock of any company shall hereafter be made unless the amount of said increase is paid up in cash. [32 G. A., ch. 79, § 2.]

Sec. 1783-g. May not advertise authorized capital. No insurance company shall, after the taking effect of this act be permitted to advertise or publish an authorized capital, or to represent in any manner itself as possessed of any greater capital than that actually paid up and invested as above provided. [32 G. A., ch. 79, § 3.]

Sec. 1783-h. Penalty. Any person, firm or corporation, violating any of the provisions of this act, or failing to comply with any of its provisions, shall be subjected to the penalties provided in section four of chapter fifty-six, Acts of the Thirtieth General Assembly. [See Sec. 1821-j.] [32 G. A., ch. 79, § 4.]

CHAPTER 7.

STIPULATED PREMIUM AND ASSESSMENT LIFE INSURANCE ASSOCIATIONS.

Sec. 1784. Defined. Every corporation organized upon the assessment plan, for the purpose of insuring the lives of individuals or furnishing benefits to the widows, heirs, orphans or legatees of deceased members, or insuring the health of persons or furnishing accident indemnity, shall be styled an association, and any corporation doing business under this chapter which provides for the payment of policy claims, accumulation of a reserve or emergency fund, the expense of management and prosecution of the business, by payment of assessments as provided in its contracts, and wherein the liability of the insured to contribute to the payment of policy claims is not limited to a fixed amount, shall be deemed to be engaged in the business of life insurance upon the assessment plan, and shall be subject to the provisions of this chapter, and chapter eight, of title nine of the code. [31 G. A., ch. 75.]*

See 1788. Fraternals 1823. Other than Life 1707-27-59h, k, l. Sec. 1785. Articles of incorporation-certificates. "Certificates of membership" or "certificate," when used in this chapter with respect to the insurance of the members, shall be taken to mean and include policy of insurance. The articles of incorporation of any such association shall show its plan of business, and be submitted to the auditor of state and the attorney-general, and if they are found by those officers to comply with the provisions of this title, chapter and of law, they shall approve the same. When the articles are thus approved, they shall be recorded in the office of the secretary of state, and a notice published within ninety days in the manner and for the time provided in the general incorporation laws. [21 G. A., ch. 65, § 2.]*

See 1768. Fraternals 1832. Other than Life 1685, 1759c.

Sec. 1786. Name. No such association shall take any name in use by another organization, or one so closely resembling it as to mislead the public as to its identity. [Same, § 3.]*

See other than Life, Sec. 1687.

Sec. 1787. Conditions for commencing business. Before issuing any policy or certificate of membership, if the association at the time has not a membership sufficient to pay the full amount of its certificate or policy on an assessment, it shall cause all applications for insurance to have printed in red ink, in a conspicuous manner along the margin thereof, the words: "It is understood that the amount of insurancce to be paid under this application, and certificate or policy issued thereon, shall depend upon

the amount collected from an assessment therefor." It must have actual applications upon at least two hundred and fifty lives for at least one thousand dollars each; and it shall file with the auditor of state satisfactory proof that the president, secretary and treasurer have each given a good and sufficient bond for five thousand dollars for the faithful discharge of their duties as such officers, sworn copies of which shall be filed with him. It shall also file with him a list, verified by the president and secretary, of the applications, giving the name, age and residence of each applicant, the amount of insurance applied for by each, together with the annual dues and the proposed assessments thereon. § 4.]*

[Same,

Sec. 1788. Assessments. The articles and by-laws of each such association and its notices of assessment shall state the objects to which the money to be collected is to be devoted, and no part of the proceeds thereof shall be applied to any other purpose than as stated and the excess, if any, beyond payment of the benefit, shall be set aside and applied only to like purposes, except that all sums collected for expenses and not used for that purpose may be transferred to the benefit, emergency or reserve fund. [21 G. A., ch. 65, § 6; 30 G. A., ch. 60.]*

Sec. 1789. Insurable age-beneficiary-assignment of policy. No association organized or operating under this chapter shall issue a certificate of membership to any person under fifteen nor over sixty-five years of age, nor unless the beneficiary named in the certificate is the husband, wife, relative, legal representative, heir, creditor or legatee of the insured member, nor shall any such certificate be assigned. Any certificate issued or assignment made in violation of this section shall be void. The beneficiary named in the certificate may be changed at any time at the pleasure of the assured, as may be provided for in the articles or by-laws, but no certificate issued for the benefit of a wife or children shall be thus changed so as to become payable to the creditors. [21 G. A., ch. 65, § 7.]*

Sec. 1790. Report to auditor of state-examination. The annual business of such association organized under the laws of this state shall close on the thirty-first day of December of each year, and it shall within sixty days thereafter prepare and file in the office of the auditor of state a detailed statement, verified by its president and secretary, giving its assets, liabilities, receipts from each assessment and all other sources, expenditures, salaries of officers, number of contributing members, death losses paid and amount paid on each, death losses reported but not paid, and furnish such other information as the auditor, who shall

provide blanks for that purpose, may require, so that its true financial condition may be shown, and shall pay, upon filing each annual statement, the sum of ten dollars. He shall publish such annual statement in detail in his report, and for the purpose of verifying it he may make or cause to be made an examination of the affairs of any such association at its expense, which shall be, if done by him or his clerk, necessary hotel and traveling expenses only, if by a person not regularly employed in his office, the actual cost thereof, not exceeding five dollars per day for the time required, and actual expenses. If the auditor regards it necessary for the safety of the funds of the association, he may require the bonds of the officers to be increased to an amount not exceeding double the sum for which they are accountable, and he may also require supplemental reports from such association at such time and in such form as he may direct, and it shall be the duty of its officers to furnish the bonds and reports when thus required. [Same, § 8.]

See 1793-95. App. 1799.

Fraternal 1830-36. Other than life 1714-16.

Sec. 1791. Investment of accumulations. Any association accumulating any moneys to be held in trust for the purpose of the fulfillment of its policy or certificate, contract, or otherwise, shall invest such accumulations in the securities provided in section eighteen hundred and six, chapter eight, of this title, and deposit the same with the auditor of state, as therein provided. But such association may invest in real estate in Iowa such a portion of said accumulation as is necessary for its accomodation in the transaction of its business to be owned by said association, and in the erection of any building for such purpose may add thereto rooms for rental. [Same, § 9.]

Life 1778-91.

Applicable 1806-7. Fraternal Societies 1839 1.

Sec. 1792. Change of securities. Such association may at any time change its securities on deposit by substituting a like amount in other securities of the same character, and the auditor shall permit a withdrawal of the same, upon satisfactory proof in writing filed with him that they are to be used for the purpose for which they were originally deposited. [Same, §§ 10,11.]

Sec. 1793. Collection of interest. The auditor shall permit the associations owning the bonds or other securities to collect and retain the interest accruing thereon, delivering to them the evidences of interest as the same become due; but on default of any association to make or enforce such collection, he may collect the same and add it to the securities in his possession, less the expense thereof. [Same, § 12.]

Sec. 1794. Foreign companies. Any association organized under the laws of any other state to carry on the business of insuring the lives of persons, or of furnishing benefits to the widows,

orphans, heirs or legatees of deceased members, or of paying accident indemnity, or surrender value of certificates of insurance, upon the stipulated premium plan or assessment plan, may be permitted to do business in the state by complying with the requirements hereinafter made, but not otherwise. It shall file with the auditor of state a copy of its charter or articles of incorporation, duly certified by the proper officers of the state wherein it was organized, together with a copy of its by-laws, application and policy or certificate of membership. It shall also file with the auditor a statement, signed and verified by its president and secretary, which shall show the name and location of the association, its principal place of business, the names of its president, secretary and other principal officers, the number of certificates or policies in force, the aggregate amount insured thereby, the amount paid to beneficiaries in the event of death or accident, the amount paid on the last death loss and the date thereof, the amount of cash or other assets owned by the association and how invested, and any other information which the auditor may require. The statement, papers and proofs thus filed shall show that the death loss or surrender value of the certificate of insurance or accident indemnity is in the main provided for by assessments upon or contributions by surviving members of such association, and that it is legally organized, honestly managed, and that an ordinary assessment upon its members or other regular contributions to its mortuary fund are sufficient to pay its maximum certificate to the full limit named therein. Upon its complying with the provisions of this section, and of section eighteen hundred and eight, chapter eight, of this title, and the payment of twenty-five dollars, the auditor shall issue to it a certificate of authority to do business in this state, provided the same right is extended by the state in which said association is organized to associations of the same class in this state. When the auditor doubts the solvency of any foreign association, and the failure to pay the full limit named in its certificate or policy shall be such evidence of its insolvency as to require the auditor to investigate it, he shall for this or other good cause, at the expense of such association, cause an examination of its books, papers and business to be made, and if upon such examination he finds that the association is not financially sound, or is not paying its policies or certificates in full, or is conducting its business fraudulently, or if it shall fail to make the statement required by law, he may revoke its authority and prohibit it from doing business until it shall again comply with the provisions of this chapter. If the auditor appoints some one not receiving a regular salary in his office to make this examination, such examiner shall receive five dollars per day for his services in addition to his actual traveling and hotel expenses, to be paid by the association examined, or by the state on the approval of the executive council, if the association fails to pay the same.