liabilities of the insured thereunder are not limited to fixed premiums. As amended, Stats. 1909, 62.

1311. Corporations may be formed on conditions.

SEC. 2. Corporations may be formed under the general laws of this state to carry on the business of mutual insurance upon the assessment plan, and shall be subject only to the provisions of this act. No such corporation shall issue contracts of insurance until at least two hundred (200) persons have applied, in writing, for membership or insurance therein, and have paid to the treasurer of such corporation the sum of five thousand ($5,000) dollars. This sum shall be invested in bonds or securities, approved by the controller of this state. Said bonds or securities shall be placed, through the state controller, with the state treasurer, and the principal sum shall be held in trust for the contract holders of such corporation, with the right in the corporation to exchange said bonds or securities, for others of like value. Such corporation shall also, as a condition precedent to issuing any contracts of insurance, obtain the written certificate of the controller that it has complied with the requirements of this act, and that the name of the corporation is not the same as that of any other corporation of this or other states, as indicated by the insurance department reports in his office; nor shall the controller approve any name or title so closely resembling another as to mislead the public.

See note following sec. 1218.

1312. Must begin business in one year.

SEC. 3. No corporation formed hereunder shall have legal existence after one year from the date of its articles unless its organization has been completed and business commenced, nor shall any corporation or individual solicit, or cause to be solicited, any business until such corporation shall have complied with the provisions of section 7 and paid the fees required in section 12 of this act.

1313. May reincorporate, but not obligatory.

SEC. 4. Any existing corporation, engaged in transacting the business of life, health, accident or endowment insurance, on the assessment plan, may reincorporate under the provisions of the laws of this state and under the provisions of this act; provided, that it shall not be obligatory upon such corporation to reincorporate, and any such existing corporation may continue to exercise all rights, powers and privileges conferred by this act the same as if incorporated hereunder.

1314. Payments, how made and secured.

SEC. 5. The contracts of insurance issued by such corporations shall specify the sum or sums to be paid upon the happening of the contingency insured against and when such payments will be made. Unless the contract shall have been invalidated by fraud or by breach of its conditions, the corporations shall be obligated to pay the beneficiary the amount or amounts specified in its contract at the time or times therein named, and such indebtedness shall be a lien upon all the property of such corporation, with priority over all indebtedness thereafter incurred, except as hereinafter provided in case of such insolvency. Failure to make such payment within thirty days after (notice at the home office by mail, as provided by law, of) final judgment, unless waiver is made by the beneficiary, shall constitute a forfeiture of the right to do business.

1315. Reserve, or emergency fund-Disposition of reserve fund.

SEC. 6. Every domestic corporation organized or doing business under this act shall accumulate a reserve or emergency fund, which shall at all

times be not less than the largest benefit contracted to be paid by it to any one person. Every existing domestic corporation must accumulate such fund within one year from the date when this act takes effect, and any corporation organized hereunder within one year from the date of its certificate of incorporation. Such fund, to the extent of the largest amount contracted to be paid by any such corporation to any one person, shall be so invested and deposited, as provided in section 2 hereof, with the right in the corporation to exchange any such sureties for others of equal value. The deposit required by section 2 of this act shall constitute a part of the reserve required by this section, at the option of such corporation. When any corporation doing business hereunder shall discontinue business, this fund shall be returned to such corporation, after expiration of sixty days from the publication of a notice in a newspaper published in such county in which such corporation did business in this state, and on satisfactory proof to the state treasurer that said notice was published as aforesaid, for a period of two weeks, unless said fund has been otherwise disposed of by a district court of this state.

1316. Conditions precedent to foreign corporations License issued, when may be revoked-Reciprocity.

SEC. 7. Corporations organized under the laws of any other state or country to transact the business of mutual assessment insurance, shall, as a condition precedent to transacting business in this state, deposit with the state controller a certified copy of its charter, or other instrument required by its home authorities, a statement under oath of its president or secretary of its business for the preceding year, in such form as may be required by the state controller; a power of attorney which shall authorize a citizen and resident of this state to make and accept service in any proceeding in any of the courts of justice in this state, or of any of the United States courts herein, as provided in section 8 [post, 1273] of "An act to license and regulate insurance business in this state," approved February 23, 1881; a certificate that for the next preceding twelve months it has paid, in full, the maximum amount named in its contracts of insurance; a certificate from the proper officer of its state or government that like corporations of this state are legally entitled to do business in such state or country; copies of its contracts of insurance and applications, which must show that the liabilities of its members are not limited to fixed premiums, and evidence satisfactory to the controller that the corporation has accumulated a fund equal to that required of like corporation [s] of this state, constituting a reserve or surplus fund held in trust for the benefit of its contract holders, and so invested and held as required by the laws of the state or government under which such corporation was organized. The controller shall, thereupon, issue a license to such corporation to do business in this state, on payment of the license tax as provided in section 13 of this act. This license shall be renewed annually, and may be revoked whenever it is ascertained that the statements required to be made by this section are not true. Upon such revocation, notice thereof shall be given by the controller by publication in some newspaper of general circulation published in the state, for two weeks, and no new contracts shall be made by such company in this state. When any other state or country imposes any additional license, fees, taxes or penalties upon any corporation organized or doing business under this act, like license, fees, taxes or penalties shall be imposed upon corporations of the same kind, and their agents, of such state or country doing business in this state.

1317. Insurable age-Penalty for fraud-False swearing, perjury.

SEC. 8. No corporation doing business under this act (except accidental [accident] or casualty corporations) shall issue a contract of insurance

upon the life of any person under fifteen years of age, or after he or she has passed his or her sixty-first birthday. Every such contract of insurance shall be founded upon written application therefor, and (except when the application is for one hundred dollars life insurance or less) such application shall be accompanied by the report of a reputable physician, containing a detailed statement of his examination of the applicant, and showing the applicant to be in good health, and recommending the issuance of a contract of insurance; provided, that no medical examination shall be required on any application for accident or casualty insurance only. Any solicitor, agent, employee, examining physician or other person, making a false or fraudulent statement to any corporation doing business under this act, with reference to any application for insurance, or for the purpose of obtaining any money or benefit from such corporation, shall be guilty of a misdemeanor, and upon conviction shall be punished by a fine of not less than one hundred dollars nor more than five hundred dollars, or by imprisonment in the county jail for not less than thirty days nor more than one year, or by both such fine and imprisonment in the discretion of the court. And any person who shall make a false statement of any material fact or thing in a sworn statement as to the death or disability of a contract holder in any such corporation, for the purpose of procuring or aiding the beneficiary or beneficiaries or contract holder in procuring the payment of a benefit [named] in the contract, shall be guilty of perjury, and may be proceeded against and punished as provided by the statutes of this state in relation to the crime of perjury.

1318. Exempt from attachment.

SEC. 9. The money, benefit, annuities, endowment, charity, relief, or aid to be paid as provided by the contracts, issued by any corporation doing business under this act, shall not be liable to attachment or other process, and shall not be seized, taken, appropriated, or applied by any legal or equitable process nor by operation of law, to pay any debts or liabilities of the contract holder or any beneficiary named thereunder.

1319. Report to controller.

SEC. 10. Every domestic and foreign corporation doing business under this act shall, annually, on or before the first day of March, file with the state controller, in such form as he shall prescribe, a statement of its affairs for the year ending on the preceding thirty-first day of December. The controller in person, or by duly authorized deputy, shall have the power of examination into the affairs of any domestic corporation doing business, or claiming to do business under this act, at any time in his discretion, and shall make such examination at least once a year.

1320. Controller may call officers to account.

SEC. 11. If the controller, after examination of the affairs of a corporation, shall find that such corporation is not doing its business in conformity to this act, or that it is doing a fraudulent or unlawful business, or that it is not carrying out its terms of contract, or that it cannot, within three months from the date of (notice of) default, pay its obligations, he shall cite the president, secretary, manager or general agent of said corporation, or all of them, to appear before him (stating the time and place) to show cause why the authority of such corporation to do business shall not be revoked; and if they cannot show cause, then he shall report the facts to the attorneygeneral of this state, who shall commence proceedings in the proper court to restrain said corporation from doing any further business.

1321. Policy not to lapse without notice.

SEC. 12. No policy or certificate issued by any corporation or association,

doing business under the provisions of this act, shall lapse or be lapsed for the nonpayment of any assessment, dues or premiums, unless the corporation or association has first mailed to the insured under such policy or certificate, at his or her last given postoffice address, a notice setting forth the amount to be paid and the time the same is due and payable (and such notice shall be mailed at least fifteen days before the assessment is due); provided, that such corporations doing business under this act as collect specific amounts at specific dates, as contained in the contract, shall not be compelled to send such notices; and an affidavit made by the officer, bookkeeper or clerk of any such corporation having charge of the mailing of notices, setting forth the facts as they appear on the records of the office of the said corporation, showing that such notice was mailed and the date of mailing, shall constitute conclusive evidence of the mailing of such notice.

1322. Fee for license.

SEC. 13. The state controller shall collect five dollars for filing each power of attorney and issuing his certificate of authority for doing business, and one hundred ($100) dollars per annum in advance for a license to do business, which shall be in full for all fees for the purposes of this act.

1323. Penalties-Expenses, how paid.

SEC. 14. The penalties for any violation of this act shall, except as otherwise provided herein, be the same as provided in "An act to license and regulate insurance business in this state," approved February 23, 1881. [Sec. 1279.] For all lawful expenses under this act, or by reason of any of its provisions, in the prosecution of any suit or proceedings, or otherwise, for the enforcement of its provisions, the controller shall present bills, duly certified by him, and accompanied with vouchers, to the state board of examiners, who shall allow the same, and the controller shall draw warrants therefor on the state treasurer for payment to the controller of said bills, which warrants shall be payable out of the general fund.

1324. Not to apply to fraternal societies.

SEC. 15. The provisions of this act shall not apply to secret or fraternal societies, lodges or councils, which conduct their business and secure membership on the lodge system exclusively, having ritualistic work and ceremonies in their societies, lodges, or councils; nor to any mutual or benefit association organized or formed and composed only of members of any such society, lodge or council exclusively.

An Act prescribing the method for the entrance of insurance companies, engaged in the business of mutual life, health and accident insurance of live stock on the assessment plan, into the State of Nevada.

Approved March 3, 1909, 50

1325. Insurance of live stock.

SECTION 1. Section 7 of an act entitled "An act relating to life, health, accident and annuity or endowment insurance on the assessment plan, and the conduct of the business of such insurance," approved March 23, 1891 [sec. 1316], prescribing the method for the entrance of foreign mutual life insurance companies into the State of Nevada, shall be interpreted to prescribe, and is hereby made to prescribe, the method for entrance into this state, for doing business, of foreign mutual insurance companies engaged in the business of life, health and accident insurance of live stock on the assessment plan.

1326. Comply with general law.

SEC. 2. Corporations organized under the laws of any other state or country to transact the business of mutual insurance of live stock on the assessment

plan, shall, upon compliance with the provisions of section 1 of this act, and with the requirements of the general corporation law relative to admission of foreign corporations, be admitted into the State of Nevada for the transaction of business.

An Act requiring insurance companies to make annual statements to the state controller.

Approved February 23, 1889, 40

1327. Annual statement-What to show.

SECTION 1. Every insurance company of whatever kind or character, and every mutual life or assessment association, except charitable secret societies issuing benefits to its own members only, shall annually, on or before the first day of March, file in the office of the state controller a statement signed and sworn to by its president and secretary, which shall exhibit its financial condition on the thirty-first day of December of the previous year, and shall include a detailed statement of its assets and liabilities, the amount and character of its business transacted and moneys received and expended during that year, specifying particularly its business transacted in Nevada, and such other information as the state controller may deem necessary to elicit a complete and accurate exhibit of its condition and transactions, and in such form as he may prescribe. The annual statement of a company of a foreign country shall embrace only its business and condition in the United States, and shall be subscribed and sworn to by its resident manager or principal representative in charge of its American business. The transaction of any new business by any company, or its agents, after neglect to file a statement in the manner herein provided, shall be unlawful. As amended, Stats. 1891, 32.

1328. Failure to file statement-False statement.

SEC. 2. Any company that neglects to make and file its annual statement in the form and within the time provided by section 1, shall forfeit one hundred dollars for each day's neglect, and upon notice by the state controller to that effect, its authority to do new business shall cease while such default continues. For wilfully making a false annual or other statement it is required by law to make, an insurance company and the persons making oath to or subscribing the same, shall severally be punished by fine of not less than five hundred nor more than five thousand dollars. Any person making oath to such false statement shall be deemed guilty of the crime of perjury.

1329. Controller to report to governor.

SEC. 3. The state controller shall annually report to the governor abstracts of all statements received, together with such suggestions as may be pertinent.

An Act requiring certain mining corporations to file statements with the county recorders and attorney-general, and to mail copies thereof to stockholders; regulating the issuance and sale of certain treasury and promotion stock and defining the same for the purposes of this act; declaring certain acts to be unlawful; providing penalties for the violation thereof, and other matters relating thereto.