for the eight months ending June 30th, 1917, and annually thereafter, make a return verified by the affidavit of its president and secretary, or other chief officers or agents, to the Commissioner of Insurance, stating the amount of all such premiums and credits during the period covered by such return. Every insurance carrier required to make such return shall file the same with the Commissioner of Insurance within thirty days after the close of the period covered thereby and shall at the same time pay into the State treasury a tax of $4 on each $100 of such premium ascertained as provided in sub-section 1 hereof, less returned premiums on cancelled policies and re-insurance with other companies licensed to transact business in this State, and upon payment file a statement with the Secretary of State. Upon receiving such payments the State Treasurer shall place the whole thereof to the credit of the fund for the administration of this Act.

Sub-section 3. If any such insurance carrier shall fail or refuse to make the return required by this Act, the said Commissioner of Insurance shall assess the tax against such insurance carrier at the rate herein provided for, on such amount of premiums as he may deem just, and the proceedings thereon shall be the same as if the return had been made.

Sub-section 4. If any such insurance carrier shall withdraw from business in this State before the tax shall fall due, as herein provided, or shall fail or neglect to pay such tax, the Commissioner of Insurance shall at once proceed to collect the same, and he is hereby empowered and authorized to employ such legal process as may be necessary for that purpose, and when so collected he shall pay the same into the State treasury. The suit may be brought

by the Commissioner of Insurance, in his official capacity, in any court of this State having jurisdiction; reasonable attorney's fees may be taxed as costs therein, and process may issue to any county of the State, and may be served as in civil actions, or in cases of unincorporated associations, partnerships, inter-indemnity contracts or other plan or scheme, upon the principal agent of the parties thereto.

Sub-section 5. Any person or persons who shall in this State act or assume to act as agent for any such insurance carrier whose authority to do business in this State has been suspended, while such suspension remains in force, or shall neglect or refuse to comply with any of the provisions of this section obligatory upon such persons or party, or who shall wilfully make a false or fraudulent statement of the business or condition of any such insurance carrier or false or fraudulent return as herein provided, shall be deemed guilty of a misdemeanor, and upon conviction shall be punished by a fine of not less than $100 nor more than $1,000, or by imprisonment for not less than ten nor more than ninety days, or both such fine and imprisonment, in the discretion of the jury.

Sub-section 6. Whenever by this Act any officer is required to give any notice to an insurance carrier, the same may be given by delivery, or by mailing by registered letter properly addressed and stamped, to the principal office or chief agent of such insurance carrier within this State, or to its home office, or to the secretary, general agent or chief officer thereof in the United States.

Sub-section 7. Any insurance carrier liable to pay a tax upon premiums under this Act shall not be liable to pay any other or further tax upon such pre

miums, or on account thereof, under any other law of this State.

Sub-section 8. Every employer carrying his own risk under the provisions of Section 63 shall, under oath, report to the board his pay roll subject to the provisions of this Act. Such report shall be made in form prescribed by the board and at the times herein provided for premium reports by insurer. The board shall assess against such pay roll a maintenance fund tax computed by taking 4 per cent, of the basic premiums chargeable against the same or most similar industry or business, taken from the manual insurance rates for compensation then in force in this State.

Sub-section 9. The board shall not be authorized to incur expenses or indebtedness during any period, chargeable against the maintenance fund, in excess of the premium tax payable to such fund for the same period. If it be ascertained that the tax collected for a given period exceeds the total chargeable against the maintenance fund under the provisions of this act, the board may authorize a corresponding credit upon collections for the succeeding period.

§ 84. Kentucky Employes' Insurance Association. For the purpose of carrying out the provisions of this act, and of affording to employers a method of insuring their liability as required thereby, the Kentucky Employes' Insurance Association is hereby created a body corporate with the powers provided herein and with all the general corporate powers incident thereto.

$85. The Board of Directors of the Association shall consist of 15 members three of whom shall be appointed by the Governor, and 12 of whom shall be elected by ballot of the subscribers, in accord. ance with Section 207 of the Constitution. Of the

original directors appointed by the Governor, one shall be appointed for one year, one for two years, and one for three years; annually thereafter one director shall be appointed for a term of three years. Election of directors by the subscribers shall be held at such times and in such manner as the by-laws shall provide.

$86. The appointed directors shall, within thirty days of the subscription of twenty-five employers, call the first meeting of the subscribers by a notice in writing mailed to each subscriber at his place of business not less than ten days before the date fixed for the meeting.

$ 87. At the first meeting of the subscribers the remaining twelve directors shall be elected. The board of directors may thereafter exercise powers as such and may adopt by-laws not inconsistent with the provisions of this Act.

§ 88. The board of directors shall annually choose by ballot a president, who shall be a member of the board, a secretary a treasurer, and such other officers as the by-laws shall provide.

$89. Seven or more of the directors shall constitute a quorum for the transaction of business.

Vacancies in any office may be filled in such manner as the by-laws shall provide.

$ 90. Any employer in the Commonwealth may become a subscriber.

§ 91. In any meeting of the subscribers each subscriber shall be entitled to one vote, and if a subscriber has 250 employes to whom the association is bound to pay compensation he shall be entitled to two votes, and he shall be entitled to one additional vote for each additional 250 employes to whom the association is bound to pay compensation, but no

subscriber shall cast by his own right or by the right of proxy, more than 10 votes.

$ § 92. No policy shall be issued by the association until less than fifty employers have subscribed who have not less than five thousand employes to whom the association may be bound to pay compensation.

§ 93. No policy shall be issued until a list of the subscribers, with the number of employes of each, together with such other information as the Insurance Commissioner may require, shall have been filed at the insurance department, nor until the president and secretary of the association shall have certified under oath that every subscription in the list so filed is genuine and made with an agreement by every subscriber that he will take the policies subscribed for by him, within thirty days of the granting of a license to the association by the Insurance Commissioner to issue policies.

94. The board of directors shall distribute the subscribers into groups in accordance with the nature of the business and the degree of the risk of injury.

Subscribers within each group shall annually pay in cash, or notes absolutely payable, such premiums as may be required to pay the compensation herein provided for the injuries which may occur in that year.

$95. The association may in its by-laws and policies fix the contingent mutual liability of the subscribers for the payment of losses and expenses not provided for by its cash funds; but such contingent liability of a subscriber shall not be less than an amount equal to and in addition to the cash premium.

$96. If the association is not possessed of cash funds above its unearned premiums sufficient for the