§ 29. (Exemption of Certain Societies.)-Nothing contained in this act shall be so construed as to affect or apply to grand or subordinate lodges of Masons, Odd Fellows, Knights of Pythias (exclusive of the insurance department of the Supreme Lodge Knights of Pythias) or to similar orders, societies or associations now doing business in this State which provided benefits exclusively through local or subordinate lodges, or to orders, societies or associations which limit their admission to membership to any one hazardous occupation, nor to an association of local lodges of a society now doing business in this State which provides death benefits not exceeding three hundred dollars in any one year to any one person, or both, nor to any contracts of reinsurance business on such plan in this State, nor to domestic societies which limit their membership to the employes of a particular city or town, designated firm, business house or corporation, nor to domestic lodges, orders or associations of a purely religious, charitable and benevolent description, which do not provide for a death benefit of more than one hundred dollars, or for disability benefit of more than one hundred and fifty dollars to any one person in any one year. The Insurance Commissioner may whenever he deems proper make examination of any such society or organization (domestic or foreign), operating in this State to enable him to determine whether such society or organization is exempt from the provisions of this act, and if found to not be so exempt the expenses of such examination shall be paid by the society or organization examined upon statement furnished by him.

Any fraternal benefit society, heretofore organized and incorporated and operating within the

definition set forth in Sections 1, 2, and 3 of this act, providing for benefits in case of death or disability resulting solely from accident, but which does not obligate itself to pay death or sick benefits, may be licensed under the provisions of this act, and shall have all the privileges and shall be subject to all the provisions of this act except that the provisions of this act requiring medical examinations, valuations of benefit certificates, and that the certificates shall specify the amount of benefit, shall not apply to such society.

$30. (Taxation.)-Every fraternal benefit society organized or licensed under this act is hereby declared to be a charitable and benevolent institution, and all of its funds shall be exempt from all and every State, county, district, municipal and school tax other than taxes on real estate and office equipment.

§ 31. (Penalties.)-Any person, officer, member or examining physician of any society, authorized to do business under this act who shall knowingly or wilfully make any false or fraudulent statement or representation in or with reference to any application for membership or for the purpose of obtaining money from any benefit in any society transacting business under this act, shall be guilty of a misdemeanor and upon conviction thereof shall be punished by a fine of not less than one hundred dollars nor more than five hundred dollars, or imprisonment in the county jail for not less than thirty days nor more than one year, or both, in the discretion of the court; and any person who shall wilfully make a false statement of any material fact or thing in a sworn statement as to the death or disability of a certificate holder in any such society for the purpose of procuring payment of a

benefit named in the certificate of such holder, and any person who shall wilfully make any false statement in any verified report or declaration under oath required or authorized by this act, shall be guilty of perjury, and shall be proceeded against and punished as provided by the statutes of this State in relation to the crime of perjury.

Any person who shall solicit membership for, or in any manner assist in procuring membership in any fraternal benefit society not licensed to do business in this State, or who shall solicit membership for, or in any manner assist in procuring membership in any such society not authorized as herein provided, to do business as herein defined in this State, shall be guilty of a misdemeanor and upon conviction thereof shall be punished by a fine of not less than fifty nor more than two hundred dollars.

Any society, or any officer, agent or employe thereof neglecting or refusing to comply with, or violating any of the provisions of this act, the penalty for which neglect, refusal or violation is not specified in this section, shall be fined not exceeding two hundred dollars upon conviction thereof.

$32. All acts and parts of acts inconsistent with this act are hereby repealed.

Approved March 22, 1916.

CHAPTER 28.

AN ACT to regulate the organization and operation of assessment or co-operative fire insurance companies.

Be it enacted by the General Assembly of the Commonwealth of Kentucky:

§ 1. Corporators-Number and OrganizationProperty to be Owned.-Twenty-five or more persons residing in any one or more adjoining towns or in any county, or in not exceeding ten adjoining counties, who collectively own property of the value of fifty thousand dollars or more may become a corporation for the purpose of co-operative or assessment insurance against loss or damage of property by fire, wind, or lightning, or the explosion of natural or artificial gas, by making and acknowledging a certificate setting forth their intention to form such a corporation, the county or counties, town or towns in which it intends to do business, its corporate name, and the place where its principal office is to be located. Every person insured in such a corporation who shall sign an application for insurance as required by the certificate of incorporation or the by-laws of the corporation shall thereby become a member thereof: Provided, however, that no moneys shall be collected by any person in behalf of such corporation until two of the members or organizers of such association or corporation shall have given joint bond to the Insurance Commissioner of Kentucky in the sum of ten thousand dollars; which bond shall guarantee that all moneys so collected shall be used as directed by law, and the affairs of said association or corporation be conducted according to law. Said bond shall be held by the Insurance Commissioner for the benefit of the members of such association or corpora

tion until such time as said association shall have become legally incorporated and the affairs of said corporation are examined by an expert accountant, appointed by the Insurance Commissioner of Kentucky, and its affairs found to be in due and regular form, and immediately thereafter such bond shall be cancelled.

§ 2. Directors-Number and Powers-Term of Office. Every such corporation, if a town corporation, shall have not less than five directors; and if a county or county and town corporation, not less than eleven, to be chosen from the members of the corporation, who shall manage its affairs, and shall hold office for one year, or such longer term, not exceeding four years, as the by-laws of the corporation may prescribe, and until others are elected and qualified. They may be divided into classes, and a portion only elected each year. They shall choose by ballot, a president and secretary, and such other officers as the by-laws shall prescribe, who shall hold their offices for not less than one nor more than four years, or as may be prescribed in the bylaws. The board of directors shall exercise the corporate powers, and transact the business of the corporation in accordance with its by-laws. The by-laws shall prescribe the number of directors to constitute a quorum, and may provide for an executive committee for such purposes as may be necessary, and shall require the officers to give bond, with good security, in such amounts as the nature of their duties and powers may render proper. The board of directors may, by resolution duly passed at any regular meeting, remove the office of the corporation to any other town within the county or counties where it is organized, if a country corporation; to any other town in which it is author