Vice-President, and Secretary or Actuary, or a majority of the Trustees or Directors of each company organized under this act shall, annually, on the first day of January, or within sixty days thereafter, prepare under oath, and deposit in the office of the Auditor of State, a statement of the condition of such company on the 31st day of December of the preceding year, showing:

First. Name and where located.

1. The names of the officers.

2. The amount of capital stock, if a stock company.

3. The amount of capital stock paid in, if a stock company.

Second. Assets.

1. The value of real estate owned by such company.

2.

The amount of cash on hand.

3. The amount of cash deposited in bank or trust companies, giving names of bank or banks or trust companies.

4.

The amount of unreported and deferred premiums.

5. The amount of stocks and bonds of the United States, and all other bonds, giving names and amounts, with the par and market value of each kind.

6. The amount of loans secured by first mortgage on real estate.

7. The amount of all other bonds and loans, and how secured, with the rate of interest.

8. The amount of premium notes on policies in force.

9. The amount of notes given for unpaid stock, and how secured.

10. The amount of interest due and unpaid.

11. All other assets.

1. The amount of losses due and unpaid.

2. The amount of losses adjusted but not due.

3. The amount of losses unadjusted.

4. The amount of claims for losses resisted.

5. The amount of money borrowed.

6. The amount required to safely reinsure all outstanding risks according to the American Experience Table of Mortality; and four per cent, interest per annum, or the Actuaries' Combined Experience Table with same rate of interest.

Fourth.

Income during the year.

1. The amount of cash premiums received.

2.

The amount of premium notes received.

3. The amount of interest received from all sources.

4. The amount received from all other sources.

Fifth. Expenditures during the year.

1. The amount paid for losses.

2. The amount of dividends paid to policy holders and to stockholders.

3. The amount of commissions and salaries paid agents.

4. The amount paid to officers for salaries.

5. The amount paid for taxes.

6. The amount of all other payments and expenditures.

1. The greatest amount insured on any one life.

2. The amount deposited in other States and territories as security for policy holders therin, stating the amount in each State or Territory.

3. The amount of premiums received in this State during the year.

4.

The amount paid for losses in this State during the year.

5. The whole number of policies issued during the year, with the amount of insurance affected thereby, and total amount of insurance at risk.

37641. Annual statement, auditor may amend. 9. The Auditor of State is authorized to amend the form of annual statement, and to propose such additional inquiries as he may think necessary to elicit a full exhibit of the standing of companies organized or doing business under this act.

3764j. Value of policies - Auditor ascertains.

10. As soon as practicable after the filing of said annual statement of any company organized and doing business under the provisions of this act, in the office of the Auditor of State, he shall proceed to ascertain the net cash value of each policy in force on the 31st day of December immediately preceding, upon the basis of the American Experience Table of Mortality and four per cent. interest, or Actuaries' Combined Experience Table of Mortality and four per cent. interest. For the purpose of making such valuations, the Auditor of State may employ a competent actuary to do the same, who shall be paid by the company for which the services are rendered; but nothing herein shall prevent any company from making said valuation herein contemplated, which may be received by the Auditor of State upon such proof as he may determine. Upon ascertaining in the manner above provided, the net cash value of all policies in force in any company organized or doing business under this act, the Auditor of State shall notify said company of the amount thereof and within ninety days after the date of such notification the officers of such company shall deposit with the Auditor of State, for the security and benefit of all its policy holders, an amount which, together with the sum already deposited with said officer, shall be not less than the amount of such ascertained valuation of all policies in force in the securities described in section 22 of this act, or in certificates of deposit in any solvent bank or trust company. But no company organized under this act shall be required to make such deposit until the cash value of the policies in force as ascertained by the Auditor of State exceeds the amount deposited by said company under section 5 or 6 hereof.

3764k. Certificate. 11. On receipt of the deposit and statement from any company as provided in the preceding sections, which shall be renewed annually, the Auditor of State shall issue a certificate setting forth the corporate name of the company; its principal office; that it has fully complied with the provisions of this act; stating the amount deposited, and the net cash value of outstanding policies, and the table upon which same is computed, and that it is authorized to transact the business of life insurance: Provided, That any such certificate shall expire on the 30th day of May, in the year following its issue.

37641. Law, must comply with. 12. Upon the failure of any company organized or doing business under this act, to make the deposit or file the statement in the time stated herein, the Auditor of State shall notify such company to issue no new policies in this State until there shall have been compliance with said requirement.

3764m. Books, auditor to examine. 13. The Auditor of State may at any time make a personal examination of the books, papers and securities of any life insurance company organized or doing business under this act, or may authorize or empower any other suitable person to make such examination, and for the purpose of securing a full and true exhibit of its affairs, he, or the person selected by him to make such examination, shall have power to examine, under oath, any officer of said company, relative to its business and management.

3764n. Failure to comply with law. 14. If the Auditor of State shall at any time find from any report, examination or otherwise, that the assets of any life insurance company organized or doing business under this act, are less than its liabilities, exclusive of capital stock, he may notify it to cease the issue of new policies or the payment of dividends to stockholders or policy holders or both until the deficiency be made good; and he may, and if it appear to him that the assets of such company are less than three-fourths of its liabilities, exclusive of capital stock, he shall communicate the facts to the Attorney-General, who shall, if by him deemed advisable, at once apply to the Circuit or Superior Court of the county where the principal office of said company is located, or to a judge of one of the said courts for a receiver for said company, and said court or judge shall forthwith issue a citation to such company to appear at a day and place to be named therein and answer to said application; and if upon the hearing of said application said court or judge shall find the assets of said company

to be less than its liabilities as aforesaid, said court or judge may, and if the assets are found to be less than three-fourths of its liabilities as aforesaid, shall, if practicable, scale its policy liabilities to an amount equal to or less than its assets, or he may provide for the reinsurance of its outstanding policies in some solvent company authorized to do business in this State. If neither of these methods is [are] practicable, said court or judge shall appoint some disinterested person or persons to be receiver or receivers of such company, and said court or judge may provide the mode of proving said claims against such company, and appoint a committee to hear and decide upon them, and may limit and extend the time for the presentation of such claims, and may make all necessary orders in reference to the delivery to and possession of such receiver of the assets and property of such company, and the sale and conveyance of the same by him, and may direct the application of the avails of such assets and property equitably in satisfaction of the claims proved against such company, and the payment of the present value of its outstanding policies to policy holders, either in whole or in part; and said court or judge shall annul the charter and decree the dissolution of such company, and make all other orders and decrees necessary and proper in reference to winding up the affairs of such company, and the disposition of its property.

37640. Securities, may change. 15. Companies shall have the right at any time to change their securities on deposit, by substituting for those withdrawn a like amount in other securities of the character provided for in this act, and, whenever the annual valuation of policies outstanding and in force against any company is less than the amount of security then on deposit with the Auditor of State, said company shall have the right to withdraw such excess; but at least twenty-five thousand dollars shall remain on deposit.

3764p. Examination, auditor to make. 16. The Auditor of State shall, at the request of any company doing business under the provisions of this act, make an examination of such company, and shall furnish a certificate of the results of such examination, showing all of its assets and how they are invested, with such other particulars as may be deemed necessary to show the character and condition of said company. The necessary expense of such examination shall be paid by the company.

3764q. Receiver, appointment of. 17. No order, judgment or decree, providing for an accounting or enjoining, restraining or interfering with the prosecution of the business of any insurance corporation, association or society, organized or doing business under the provisions of this act, or appointing a temporary or permanent receiver thereof, shall be made or granted otherwise than upon the application of the Attorney-General on his own motion, or after his approval of a request in writing therefor by the Auditor of State, except in an action by a judgment creditor or in proceedings supplementary to execution.

3764r. May retire from business, conditions. 18. If at any time any company organized under this act shows to the Circuit or Superior Court of the county where its principal offices are located, that it wishes to retire from business, that it has reinsured all of its policies, and that it has no unpaid liabilities of any character, such court shall, if it finds such facts to be true, enter an order directing the Auditor of State to surrender to said company all funds or securities theretofore deposited with him by such company. No such order shall be made until the Auditor of State shall have been notified of the pendency of such application at least ten days before the time set for the hearing thereof, and until after a full hearing by said court.

3764s. Interest on deposits. 19. The Auditor of State shall permit companies having on deposit with him stocks or bonds as security, to collect the interest accruing on such deposits, delivering to their authorized agents, re spectively, the coupons or other evidences of interest as the same become due; but

upon default by any company to deposit additional security as called for by the Auditor of State, or pending any proceedings to close up or enjoin it, the Auditor of State shall collect the interest as it becomes due, and add the same to the securities in his hands belonging to such company.

3764t. Penalty, doing business without certificate. 20. Any company organized or doing business under this act without a certificate as provided for in either section 5 or 6, or in section 11 of this act, shall forfeit one hundred dollars for every day it continues to write new business in this State without such certificate.

3764u. Suits in name of state. 21. Suits brought to recover any of the penalties provided for in this act, shall be instituted in the name of the State of Indiana on relation of the Prosecuting Attorney of the Circuit Court of the county in which the principal office of said company is located, under the direction and by the authority of the Auditor of State. Said penalties, when recovered, shall be paid into the State Treasury, for the use of the school fund.

3764v. Manner of investment. 22. No company organized under the provisions of this act shall invest its funds in any other manner than as follows: In bonds of the United States, in bonds of this State or of any other State, if at or above par; in bonds and mortgages on unincumbered real estate within this State, or in any other State in which said company is transacting an insurance business, worth at least double the amount loaned thereon, and the value of such real estate shall be determined by a valuation made under oath by two freeholders of the county where the real estate is located, (if buildings are considered as part of the value of such real estate, they must be insured for the benefit of the mortgagee); in bonds or other evidences of indebtedness, bearing interests, of any county, incorporated city, town or school district, within this State, or any other State in which said company is transacting an insurance business, where such bonds or other evidences of indebtedness are issued by authority of law, and upon which interest has never been defaulted; in loans upon the pledge of stock, bonds or mortgages of par value, if the current value of such stock, bonds or mortgages is at least twenty-five per cent. more than the amount loaned thereon; and in loans upon its own policies, provided, that the amount so loaned shall not exceed the reserve against said policy at the time such loan is made.

3764w. Real estate, purchase and conveyance. 23. No company organized under this act shall be permitted to purchase, hold or convey real estate, except for the purpose and in the manner herein set forth:

1. For the erection and maintenance of buildings at least ample and adequate for the transaction of its own business.

2. Such as shall have been mortgaged to it in good faith by way of security for loans for money due; or,

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

4. Such as shall have been purchased at sales upon judgments, decrees or mortgages obtained or made for such debts, and no company incorporated as aforesaid shall purchase, hold or convey real estate in any other cases or for any other purpose.

3764x. Real estate when sold. 24. All real estate acquired as aforesaid, except such as is occupied by buildings used in whole or in part for the accommodation of such company in the transaction of its business, shall, except, as hereinafter provided, be sold and disposed of within ten years after such company shall have acquired title to the same. No such company shall hold such real estate for a longer period than that above mentioned, unless the said company shall procure a certificate from the Auditor of State 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 said Auditor of State shall direct in said certificate.

3764y. Risks, how transferred or reinsured. 25. No corporation

organized or doing business under this act shall transfer its risks to or reinsure them in any other corporation, association or society, unless the contract of transfer or reinsurance is first submitted to and approved by a two-thirds vote of a meeting of the insured, called to consider the same, of which meeting a written or printed notice shall be mailed to each policy holder, at least thirty days before the day fixed for such meeting. No such corporation organized or doing business under this act, shall transfer its risks or assets, or any part thereof, to or reinsure its risks, or any part thereof, in any insurance corporation, association or society of any other State or county, which is not at the time of such transfer or reinsurance authorized to do business in this State under the laws thereof: Provided, however, That the foregoing declaration shall not prevent a company from reinsuring half of its over-average policies in other solvent companies authorized to do business in this State by paying therefor agreed premiums in annual, semiannual or quarterly installments.

3764z. Rights of insured.

26. The insured in any such corpora

tion shall have the right at any time, with the consent of such corporation, to make a change in his payee or payees, or beneficiary or beneficiaries, without requiring the consent of such payee or beneficiaries, provided such policy has not been assigned as security for a debt, or other legal consideration.

3764aa. Reincorporation or reorganization. 27. Any domestic corporation, association or society, organized under any law of this State, transacting business of life insurance, may be reincorporated or reorganized under the provisions of this act, under its existing corporate name, by filing with the Auditor of State a declaration of its desire to do so, signed and duly acknowledged by a majority of its Board of Directors, Trustees or Managers, with a statement in like manner, signed and acknowledged by them, that such corporation, association or society has insured the requisite number of lives as herein provided, or, if a stock company, that it has complied with the requirements of this act, concerning subscriptions to its capital stock, and provided also, they have deposited with the Auditor of State securities herein provided for, whereupon the Auditor of State shall file the same, together with his certificate of such filing, with the Seeretary of State, who shall issue to such corporation, association or society a certificate of such reincorporation or reorganization, under the seal of the State, and attach thereto copies of all papers so filed with the Secretary of State, and the same shall be recorded in the office of the Secretary of State, and copies thereof filed in the office of the Auditor of State, and such corporation, association or society shall thereupon be deemed to be reincorporated or reorganized under the provisions of this act. Any such company having on deposit with the Auditor of State securities of the quality herein required, may use the same in whole or in part for making the deposits hercin provided for.

3764bb. Corporate rights not affected.

28. Such reincorporation

or reorganization shall not affect or change the corporate identity of such company, nor shall it affect in any manner its corporate rights or liabilities, all of which shall, after such reincorporation or reorganization, remain vested in, or continue against the said company as reincorporated or reorganized as they would if there had been no reincorporation or reorganization, except that assessment companies reorganizing under this law may, with the consent of any policy holder of such company, waive any provision contained in his policy or certificate of membership providing for assessing members or reserving the right to call for any additional premiums, usually known as the emergency or safety clause.

3764cc. Assessment companies not affected. 29. Nothing in this act shall be construed as affecting or governing life insurance companies, associations or societies, or accident insurance companies doing business on the assessment plan, or organized under any other law of this State; but such life insurance companies may reincorporate and avail themselves of the provisions of this act by complying with conditions as hereinbefore provided in this act.