TOWNSHIP COMPANIES.

§ 1. Amends section 3 by fixing the number of directors and providing the manner of their election. Amends section 8 by describing the property to be insured and time and amount of policy. Amends section 11 by fixing the amount of loss to be adjusted by President and Secretary at $200.

AN ACT to amend sections three, eight and eleven of an act entitled "An act to revise the law in relation to township insurance companies," approved March 24, 1874, in force July 1, 1874, as amended by an act approved May 11, 1877, in force July 1, 1877.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That sections three, eight and eleven of an act entitled "An act to revise the law in relation to township insurance companies," approved March 24, 1874, in force July 1, 1874, as amended by an act approved May 11, 1877, in force July 1, 1877, be amended so as to read as follows:

"Section 3. The number of directors shall not be less than nine nor more than fifteen, a majority of whom shall constitute a quorum to do business, to be elected from the corporators by ballot, of whom one-third shall be elected for one year, one-third for two years and one-third for three years, and until their successors are elected and qualified. At all subsequent elections, except to fill vacancies, one-third of said board of directors shall be elected for three years, said election to be held at the annual meeting of the company, which shall be on the first Tuesday after the first Monday in January in each year: Provided, that any company now incorporated and doing business under this act may at any time so change their mode of electing their board of directors, at an annual meeting, as to be in conformity with this act. In the election of the first board of directors each corporator shall be entitled to one vote. At every subsequent election every person insured shall be entitled to as many votes as there are directors to be elected, and an equal additional number for each $500 that he may be insured in the company, and may cast the same in person or by proxy, distributing them among the same or a less number of directors to be elected, or cumulating them upon one candidate as he may think fit."

"Section 8. Such companies may issue policies only on detached dwellings, barns (except livery, boarding and hotel barns) and other farm buildings, school houses and churches, and such property as may be properly contained therein; also other property on the premises and owned by the insured, also live stock, hay and grain in the stack on the premises of the insured, and anywhere in the territory of the company, for any time not exceeding five years, and not to extend beyond the limited duration of the charter, and for an amount not to exceed four thousand five hundred dollars on any one risk. All persons so insured shall give their obligations to the company, binding themselves, their heirs and assigns to pay their pro rata share to the company of the necessary expenses, and of all losses by fire or lightning, which may be sustained by any member thereof during the time for which their respective policies

are written, and they shall also, at the time of effecting the insurance, pay such percentage in cash, and such other charge as may be required by the rules and by-laws of the company."

"Section 11. Every member of such company who may sustain loss or damage by fire or lightning shall immediately notify the president of such company, or in his absence the secretary thereof, stating the amount of damages or loss claimed, and if not more than two hundred dollars ($200) then the president and secretary shall proceed to ascertain the amount of such loss or damage, and adjust the same. If the claim for damage or loss shall be an amount greater than two hundred dollars. ($200), then the president of such company, or in case of his ab. sence the secretary thereof, shall forthwith convene the directors of such company, whose duty it shall be when convened to appoint a committee of not less than three disinterested members of such company to ascertain the amount of such damage or loss; if in either case there is a failure of the parties to agree upon the amount of such damage or loss, the claimant may appeal to the judge of the county court of the county in which the office of the company is located, whose duty it shall be to appoint three persons as a committee of reference, who shall have full authority to examine witnesses and to determine all matters in dispute, and shall make an award in writing to the president of such company, and such award shall be final; the pay of said committee shall be two dollars ($2.00) per day for each day's service so rendered, and four cents for each mile necessarily traversed in the discharge of their duties, which shall be paid by the claimant, unless the award of said committee shall exceed the sum offered by the company in liquidation of such loss or damage, in which case said expenses shall be paid by the company."

APPROVED June 10, 1887.

INSURANCE, LIFE.

ORGANIZATION OF LIFE COMPANIES.

§ 1. Amends the act of 1869 by adding three sub-sections to section 1 and two sub-sections. to section 2, providing for the incorporation of life insurance companies.

AN ACT to amend an act entitled "An act to organize and regulate the business of life insurance," approved March 26, 1869, by adding five additional sections thereto.

SECTION 1. 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, be amended by adding immediately after section. one of said act the following sections:

"Section 1 a. Any number of persons, not less than nine, may organize an incorporated company to make insurance upon the lives of persons, and every insurance pertaining thereto, or connected therewith, and to grant or dispose of annuities.

"Section 1 b. The persons proposing to organize shall be designated as corporators, and they shall file with the State Auditor a declaration, signed by each of the corporators, setting forth their intentions to form a company for the purpose named in this act, which declaration shall comprise a copy of the charter they propose to adopt, and the said charter shall set forth the name of the company, the place where it is to be located, the mode and manner in which the corporate powers of the company are to be exercised, the manner of electing the trustees or directors and officers, a majority of whom shall be citizens of this State at the time of such election; the manner of filling vacancies; the amount of capital stock, and such other particulars as may be necessary to explain and make manifest the objects and purposes of the company, and the manner in which it is to be conducted. On the filing of such declaration as aforesaid, the Auditor shall submit the same to the Attorney General for examination, and if found by him to be in accordance with the provisions of this act, and not inconsistent with the laws and constitution of this State and of the United States, he shall certify to the same, and deliver it back to the Auditor, who shall cause said declaration, with the certificate of the Attorney General, to be recorded in a book to be kept for that purpose, and he shall furnish a certified copy of such declaration and certificate to the corporators.

"Section 1 c. Whenever the corporators who shall have received from the Auditor such certified copy, and shall have published the same in a newspaper published in the county in which such insurance company is proposed to be located, they may open books to receive subscriptions to the capital stock, and shall keep such books open until the amounts required are subscribed, and shall proceed to collect in such capital and complete the organization."

§ 2. And said act shall be further amended by adding immediately after section two the following sections:

"Section 2 a. Whenever the corporators shall have fully organized such company, and the said company shall have deposited with the Auditor the required amount of capital, it shall become his duty to furnish the corporators with a certificate of deposit, which, with the certified copy of said declaration previously received from the Auditor, when filed for record in the office of the recorder of deeds in the county where such company is to be located, shall be the authority to commence business and issue policies, and the same, or a certified copy thereof, shall be evidence in all suits.

"Section 2 b. The corporators, or the trustees or directors, as the case may be, of any company organized under this act, shall have power to make such by-laws not inconsistent with the constitution and laws of this State as may be deemed necessary for the government of the officers and the conduct of its affairs, and the same, when necessary, to alter or amend; and they, and their successors, may have a common seal, and may change and alter the

same at their pleasure; and such company, in its corporate name, may sue and be sued, may own so much real and personal estate as shall be necessary for the transaction of its business, and may sell and dispose of the same when deemed necessary, but all real estate acquired through the collection of debts shall not be held longer than five years. Each stockholder of any company organized under this act shall, in his individual capacity, be severally liable. for all debts of such company to the amount of his unpaid stock." APPROVED June 15, 1887.

AN ACT to provide for the organization and management of Corporations, Associations or Societies for the purpose of furnishing Life Indemnity or Pecuniary Benefits to the beneficiaries of deceased members, or Accident or Permanent Disability Indemnity to members thereof. Title as amended by act approved June 16, 1887.

SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That the title of an act entitled "An act to provide for the organization and management of corporations, associations or societies, for the purpose of furnishing life indemnity or pecuniary benefits to widows, orphans, heirs, relatives and devisees of deceased members, or accident or permanent disability indemnity to members thereof," approved June 18, 1883, and in force July 1, 1883, be and the same is hereby amended so as to read as follows: "An act to provide for the organization and management of corporations, associations or societies for the purpose of furnishing life indemnity or pecuniary benefits to the beneficiaries of deceased members, or accident or permanent disability indemnity to members thereof," and that the said act be and the same is hereby amended and revised so as to read as follows:

Section 1. That corporations, associations or societies for the purpose of furnishing life indemnity or pecuniary benefits upon the death of a member, to the widows, heirs, relatives, legal representatives or the designated beneficiaries of such deceased member, or for the purpose of furnishing accident or permanent disability indemnity to members thereof, and where members shall receive no money as profit, and where the funds for the payment of such benefits shall be secured, in whole or in part, by assessment upon the surviving members, may be organized, subject to the conditions hereinafter provided.

§ 2. Any five or more persons, citizens of the United States, a majority of whom shall be bona fide citizens and voters of this State, may associate themselves together as a body corporate, for which purpose they, shall make, sign and acknowledge, before any officer authorized to take acknowledgments of deeds in this State, a certificate of association, in which shall be stated the name or title by which such corporation, association or society shall be known in law; the location of its principal business office (which office must be located in this State); the name and residence of the incorporators; the object of the corporation, with its plan of doing business clearly and fully defined; the number of its directors, trustees or managers, and the names of those selected to serve until its first annual meeting; the limits as to age of applicants for membership, which shall not exceed sixty-five years, and that medical examinations are required; and that bona fide applications have been secured for at least $500,000, by not less than five hundred persons, who have each made application for membership in such proposed association or society, and have been duly examined and recommended by a reputable physician, and have each deposited with the parties asking such charter the sum of ten dollars as advance assessment for mortuary purposes, which certificate of association and applications, together with the certificate of some solvent bank or banks that all of such advance mortuary funds are deposited therein to be turned over to the treasurer of such association when organized, shall be submitted to the Auditor of Public Accounts, who shall carefully examine the same; and, if he shall find that the objects and purposes are fully and definitely set forth, and are clearly within the provisions of this act, and that the name or title is not the same or does not so closely resemble a title in use as to have a tendency to mislead the public, shall approve the same. If for either of the aforesaid, or other good and sufficient reasons, the said Auditor shall be unwilling to approve the certificate of association, he shall immediately inform the incorporators of the fact, stating his objections fully in writing. If the certificates and other documents are sufficient and satisfactory to the Auditor, he shall forthwith file the certificate of association, with his certificate of approval thereof, in the office of the Secretary of State.

§ 3. Upon the filing of the papers as aforesaid, the Secretary of State shall issue a certificate of organization of the corporation, association or society, making as a part thereof a copy of all papers filed in his office in and about the organization thereof, and duly authenticated under his hand and seal of State; and the same shall be recorded