this State upon the stock plan may provide in its charter a plan for policy holders participating with its stockholders in the election of its directors, and that the directors thus elected shall serve for the term of one year, or for such further term as may be provided in its charter; provided that the right thus granted to policy holders may thereafter be extended, but shall not be curtailed or revoked by the stockholders.

Sec. 2. Be it further enacted, etc., That all laws or parts of laws inconsistent or in conflict herewith be and the same are hereby repealed.

ORGANIZATION OF INSURANCE COMPANIES ON
STOCK PLAN.

TITLE.

Act 203 of 1908, p. 301.

AN ACT providing for the organization of stock insurance companies on the stock plan in this State; the kinds of insurance which can be transacted; the amount of capital required for such companies other than companies formed for the purpose of transacting life, health, accident, burial or sick benefit insurance on the industrial plan; repealing all laws or parts of laws on the same subject matter in conflict herewith, and requiring deposit with the State Treasurer by live stock companies.

Section 1. Be it enacted by the General Assembly of the State of Louisiana, That it shall be lawful for any number of persons, not less than fifteen, citizens of the United States, and residents of this State on compliance with the provisions following, to form insurance companies on the stock plan, for any of the following purposes, to-wit:

First. To insure against loss or damage to property by fire, lightning, windstorm or tornadoes.

Second. To insure vessels, freights, goods, money, effects and money lent on bottomry or respondentia and every insurance appertaining to or connected with marine risks and risks of transportation and inland navigation, including insurance upon automobiles, whether stationary or being operated under their own power.

Third. To insure the lives or the health of persons, and every insurance appertaining thereto, and to grant, purchase or dispose of annuities.

Fourth. To insure against injury, disablement or death resulting from traveling or general accident, and against disablement resulting from sickness, and every insurance appertaining thereto.

Fifth. To insure against loss or damage resulting from accident to or injury suffered by an employee or other person and for which the person insured is liable.

Sixth. To guarantee the fidelity of persons holding places of public or private trust.

To guarantee the performance of contracts other than insurance policies and executing or guaranteeing bonds and undertakings required or permitted in all actions or proceedings or by law required.

Seventh. To guarantee and indemnify merchants, traders and those engaged in business and giving credit from loss or damage by reason of giving and extending credit to their customers and those dealing with them.

Eighth. To insure against loss or damage to property of the assured, or loss or damage to the life, person or property of another for which the assured is liable, caused by the explosion of steam boilers, pipes, engines, and machinery connected therewith and operated thereby, and to make inspection of and to issue certificates of inspection upon such boilers, pipes, engines and machinery.

Ninth. To insure against burglary, larceny or theft, or either or attempts thereof.

Tenth. To insure against the breakage of plate glass, local or in transit.

Eleventh. To insure against loss or damage to an automobile resulting from collsiion, and against loss by legal liability or damage to property resulting from collision of an automobile with another automobile, or vehicle, or object.

Twelfth. To insure against loss or damage by water to any goods or premises arising from the leakage or breakage of sprinklers and water pipes.

Thirteenth. To insure against loss of live stock by death from disease, lightning, tornadoes, cyclones, accidents and every other casual or accidental cause, also against theft.

Fourteenth. To insure against any other casualty specified in the charter which may legally be the subject of insurance.

Sec. 2. Be it further enacted, etc., That no corporation so formed shall transact any other business than that specified in its charter or articles of organization, and no company shall be formed for the transaction of both fire and life insurance.

Companies formed for the transaction upon the stock plan to insure fire, marine and river risks shall have a subscribed capital of not less than two hundred thousand dollars ($200,000).

Companies formed upon the stock plan of life liability, fidelity and surety insurance, or for the transaction of business authorized under the seventh, eighth, ninth, tenth, eleventh, twelfth and fourteenth paragraphs of Section first of this Act, shall have a subscribed capital of not less than one hundred thousand dollars ($100,000), and under paragraph thirteenth shall have a paid up capital of not less than twenty-five thousand dollars ($25,000), and companies doing business under this paragraph must in addition to complying with all of the other laws governing insurance companies shall deposit with the State Treasurer, approved securities such as now required by law from surety companies in the amount of not less than five thousand dollars ($5,000), and such securities he shall hold as security for policy holders in the company.

That the capital stock of all such corporations shall be subscribed and paid for in cash, within twelve months from the date of its charter, and no certificates of stock shall be issued until paid for in full and no policies of insurance shall be issued by said corporations, or business done by them, until fifty per cent of the entire capital shall be paid for in cash; and, if the whole of said capital stock shall not be paid for in twelve months from the date of the charter it shall be the duty of the Secretary of State to immediately revoke the license granted or issued to any such corporation to do business in this State and publish notice of such revocation as required by law the charter of the offending corporation shall be forfeited, and all contracts of insurance entered into after the revocation of such license shall be null and void. Any company which shall combine two or more of the subjects specified by Section first of this Act shall have an additional capital stock of fifty thousand dollars ($50,000), fully paid in cash for every kind of insurance more than one which it is authorized to do by Section 1 of this Act providing that the provisions of the section shall not apply to companies organized to transact life, health, accident, burial or sick benefit insurance on the industrial plan.

Sec. 3. Be it further enacted, etc., That all laws or parts of laws on the same subject matter or in conflict herewith be and the same are hereby repealed.

TITLE.

MUTUAL INSURANCE COMPANIES.

Act 275 of 1918, p. 525.

AN ACT to authorize Mutual Insurance Companies to transact the various kinds of insurance as is now provided by law for Insurance Companies organized under the stock plan.

Section 1. Be it enacted by the General Assembly of the State of Louisiana, That Mutual Insurance Companies organized in accordance with the law of this State, or qualified to do business in this State, are authorized to transact any of the kinds of insurance as now permitted to be transacted by insurance companies organized under the stock plan as set forth in Section 1 of Act 203 of 1908. Provided that no Mutual Insurance Company organized or authorized to do business in this State shall transact any more than one kind of business specified in said section of said act; and provided further, that nothing herein shall be so construed as to change the qualifications now required by law of Insurance Companies to transact business in this State.

ORGANIZATION OF MUTUAL LIFE INSURANCE

TITLE.

COMPANIES.

Act 169 of 1908, p. 228.

AN ACT providing the manner of organizing mutual life insurance companies, and the conditions relative to capital under which stock life insurance companies hereafter organized may begin business; requiring a deposit of $100,000 in securities from such companies; providing stock life companies already organized may reduce their capital to $50,000 and that they shall be permitted to do business on that amount of paid in cash capital upon depositing $25,000 in securities with the State Treasurer, providing the time for such deposit and providing for the repeal of Act 99 of 1906.

MINIMUM CAPITAL AND INSURANCE.

Section 1. Be it enacted by the General Assembly of the State of Louisiana, That no stock life insurance company hereafter organized under the laws of this State shall be permitted to transact any business until at least one hundred thousand dollars of its capital stock has been fully paid up in cash, or, if a mutual company, until at least two hundred persons have subscribed in the aggregate for at least five hundred thousand dollars of insurance upon their lives and shall each have paid in one full annual premium in cash upon the insurance subscribed for, nor in either case until it shall have deposited with the State Treasurer one hundred thousand dollars in the securities now required by law from surety companies.

AMOUNT MUTUAL CORPORATION MAY BORROW.

Sec. 2. Be it further enacted, etc., That a mutual corporation may borrow or assume liability for the repayment of a sum of money sufficient to defray the reasonable expenses of its organization and to provide the amount to be deposited with the State Treasurer, as aforesaid, upon an agreement that the same with interest at a rate not exceeding eight per cent per annum shall be repaid only in the event that after such repayment with interest the corporation shall be left possessed of sufficient assets to meet all of its liabilities and to maintain a full legal reserve against its policies; and such agreement shall provide that the corporation shall have the option to make such repayment whenever it shall be able to do so in accordance with the aforesaid conditions.

REDUCTION OF CAPITAL OF STOCK LIFE INSURANCE COMPANIES.

Sec. 3. Be it further enacted, etc., That stock life insurance companies already organized may be permitted to reduce the amount of their capital stock to the sum of fifty thousand dollars and that they shall be permitted to do business on that amount of paid in cash capital upon depositing, within one year from the passage of this Act, with the State Treasurer, twentyfive thousand dollars in the securities now required by law from surety companies.

DEPOSIT OF SECURITIES.

Sec. 4. Be it further enacted, etc., That the securities deposited pursuant to this Act shall be held by the State Treasurer in trust for the benefit and protection of and as security for the policy holders of the corporation making the deposit.

REPEALING CLAUSE.

Sec. 5. Be it further enacted, etc., That Act 99 of the Session Acts of 1906 be and the same is hereby repealed.

DEFINING AND REGULATING INDUSTRIAL LIFE

TITLE.

INSURANCE.

Act 65 of 1906, p. 101.

AN ACT to define and regulate the business of industrial life insurance; to provide the manner in which foreign and domestic corporations, associations, societies, or fraternal orders doing business of industrial life insurance shall be authorized to do business in this State; to provide for the making of a deposit with the Treasurer of the State by such corporations, associations, societies or fraternal orders as a condition precedent to doing business in this State, and to fix the amount thereof. Provided that foreign corporations, associations, relief organizations, societies or fraternal orders that have made sufficient deposit in the State in which they are incorporated, or that have made sufficient deposit in any other State, shall not be required to make such deposit in this State, and fixing penalties for the violation of this Act, and to repeal all laws in conflict with this Act.

DEFINING INDUSTRIAL LIFE INSURANCE.

Section 1. (As amended by Act 240, 1916, p. 509). Be it enacted by the General Assembly of the State of Louisiana, That Industrial Life Insurance is hereby defined to be that Insurance for which stipulated premiums, advanced assessments or dues are regularly payable and collectible every four weeks, tri-weekly, bi-weekly, weekly, semi-weekly or at any other stated terms not exceeding one calendar month apart, and the policies or benefit certificates for which are for sums of five hundred dollars or less on a single life on which policies or benefit certificates provide a weekly cash benefit for disability, caused by sickness or accident, of twenty dollars per week or less, or which provide for the attendance of a physician or supplying of drugs, or furnishing a funeral.

CORPORATIONS, ETC., CONSIDERED DOING INDUSTRIAL LIFE INSURANCE.

Sec. 2. Be it further enacted, etc., That all corporations, societies, relief organizations, fraternal orders or associations, with or without capital stock, and having or not having a ritualistic form of government, whether operating under the present insurance laws as insurance companies, or operating under the laws governing fraternal beneficiary orders, and issuing policies or benefit certificates and carrying on their business in the manner and within the meaning and definition set forth in Section 1 of this Act, shall be held and deemed to be doing an industrial life insurance business and shall be subject to this Act and all the other laws of this State, not repugnant to this Act, regulating the business of life, health and accident insurance in this State.

DEPOSIT REQUIRED of INDUSTRIAL LIFE INSURANCE COMPANIES. Sec. 3. Be it further enacted, etc., That any corporation, association, society or fraternal order organized under the laws of this State, whether organized upon the mutual assessment plan or as a stock company, for the purpose of doing the business of industrial life insurance, as in this Act de

fined, shall, before commencing to do business in this State, comply with the laws of this State, regulating the manner in which other insurance companies shall be authorized to do business in this State, except that a deposit of one thousand dollars ($1,000.00), where the membership is one thousand or less, and for every additional one thousand members or fraction of one thousand added to the membership an additional deposit of five hundred dollars ($500.00), until the total sum of five thousand dollars ($5,000.00) has been deposited, shall be made by companies operating upon the plan and according to the manner specified in this Act. Such deposit shall be made with the State Treasurer of this State in such securities as are now required of surety companies, and shall be held subject to any claim, liens or judgments that may be judicially obtained against them in the courts of this State, or the Federal courts in this State, or arising from any contract of insurance or indemnity, entered into in this State, and to be liable to seizure and sale at the instance of any judgment creditor of such companies, under judgment obtained in any of the courts of this State or of the Federal courts in this State against them.

Note. Beginning with the word "except" [line 7] this section is inconsistent and contrary to Act 105, 1808, Art. 1. Sec. 15 (printed at p. 934) and Industrial Life Insurance Companies need comply only with the Act of 1898, where the provisions of the Act of 1906 are inconsistent with the Act of 1908. The deposit of $2,000 in State bonds will entitle an Industrial Life Insurance Company to carry on its business. State ex rel. Unity Industrial L. & I. Ben. Ass. vs. Michel, Secty. of State, 121 L. 350. See Act 246, 1908, printed at p. 951.

REQUIREMENTS FOR ADMISSION OF FOREIGN COMPANIES.

Sec. 4. Be it further enacted, etc., That any corporation, association, society or fraternal order organized under the laws of any other State upon the mutual assessment plan or as a stock company for the purpose of doing business in this State upon complying with the other laws of this State regulating the manner in which foreign insurance companies shall be authorized to do business in this State, and filing with the Insurance Commissioner of this State, a certificate from the officer having supervision of the Insurance Department of the State under the laws of which such corporation, association, society or fraternal order was chartered or elects to make its deposit, that such corporation, association, society or fraternal order has deposited with said State a sum of not less than five thousand dollars $5,000.00) in such securities as are required to be deposited by insurance companies in said States.

COMPANIES TO WHICH ACT DOES NOT APPLY.

Sec. 5. Be it further enacted, etc., That the provisions of this Act shall in no way apply to any company, organization or association or society which does not collect its premiums or dues every four weeks, tri-weekly, bi-weekly, weekly, semi-weekly or at any stated terms of days less than a month apart, but any company, organization, association, society or fraternal beneficiary order, with or without a ritualistic form of government, which collects its dues or premiums, every four weeks, tri-weekly, bi-weekly, weekly, semi-weekly or at any stated terms of days less than a month apart, shall come under the provisions of this Act.

VIOLATION OF ACT BY FOREIGN COMPANIES.

Sec. 6. Be it further enacted, etc., That all officers, directors, managers, employees and agents of foreign and domestic corporations, relief organizations, societies and fraternal orders, who shall conduct or attempt to conduct the business of industrial life insurance without having first complied with, or who in any manner violate, or refuse or neglect to comply with the provisions and requirements of this Act shall be deemed guilty of a misdemeanor, and upon conviction before any court of competent jurisdiction shall be fined not less than fifty dollars ($50.00) or more than two hundred dollars ($200.00), or be imprisoned in the parish jail (parish prison in the city of New Orleans) not less than thirty (30) or more than ninety (90) days.