Suits-How Begun-Service.

Section 4. Concurrently with the filing of the declaration provided for by the terms of section three hereof, the attorney shall file with the State Insurance Board an instrument in writing, executed by him for said subscribers, conditioned that, upon the issuance of certificate of authority provided for in section ten hereof, service of process may be had upon the State Insurance Board in all suits in this state arising out of such policies, contracts or agreements, which service shall be valid and binding upon all subscribers exchanging at any time reciprocal or inter-insurance contracts through such attorney. Three copies of such process shall be served, and the State Insurance Board shall file one copy, forward one copy to said attorney, and return one copy with his admission of service. For the copy of the original process accepted by the State Insurance Board as attorney for service, a fee of three dollars shall be collected from the plaintiff.

Risks-Statement to Insurance Board.

Section 5. There shall be filed with the State Insurance Board of this State by such attorney, a statement under oath of such attorney showing the maximum amount of indemnity upon any single risk, and such attorney shall, whenever and as often as the same shall be required, file with the State Insurance Board a statement verified by his oath to the effect that he has examined the commercial rating of such subscribers as shown by the reference book of a commercial agency having at least one hundred thousand subscribers, and that from such examination or from other information in his possession it appears that no subscriber has assumed on any single risk an amount greater than ten per cent of the net worth of such subscriber. Reserves-Provision for Deficiency.

Section 6. There shall at all times be maintained as a reserve a sum in cash or convertible securities equal to fifty per cent of the aggregate net annual deposits collected and credited to the accounts of the subscribers on policies having one year or less to run and pro-rated on those for longer

periods. For the purpose of said reserve, net annual deposits shall be construed to mean the advance payments of subscribers after deducting therefrom the amount specifically provided in the subscribers agreements for expenses. Said sum shall at no time be less than twenty-five thousand dollars, and if at any time fifty per cent of the aggregate deposits, so collected and credited shall not equal that amount, the subscribers or their attorney for them, shall make up any deficiency.

Annual Report.

Section 7. Such attorney shall make an annual report to the State Insurance Board for each calendar year, showing that the financial condition of affairs at the office where such contracts are issued is in accordance with the standard of solvency provided for herein, and shall furnish such additional information and reports as may be required to show the total premiums or deposits collected, the total losses paid, the total amounts returned to subscribers, and the amounts retained for expenses; provided, however, that such attorney shall not be required to furnish the names and addresses of any subscribers. The business affairs and assets of said reciprocal or inter-insurance exchanges, as shown at the office of the attorney thereof, shall be subject to examination by the State Insurance Board. Exchange of Contracts.

Section 8. Any corporation now or hereafter organized under the laws of this state shall, in addition to the rights, powers and franchises specified in its articles of incorporation, have full power and authority to exchange insurance contracts of the kind and character herein mentioned. The right to exchange such contracts is hereby declared to be incidental to the purposes for which such corporations are organized and as much granted as the rights and powers expressly conferred.

Acting Without Authority-Penalty.

Section 9. Any attorney who shall, except for the purpose of applying for certificate of authority as herein pro

vided, exchange any contracts of indemnity of the kind and character specified in this act, or directly or indirectly solicit or negotiate any application for same, without first complying with the foregoing provisions, shall be deemed guilty of a misdemeanor, and upon conviction therof, shall be subjected to a fine of not less than one hundred dollars nor more than one thousand dollars.

Certificate of Authority.

Section 10.

Each attorney by whom or through whom issued any policies of or contracts for indemnity of the character referred to in this act shall procure from the State Insurance Board annually a certificate of authority, stating that all of the requirements of this act have been complied with, and upon such compliance and the payment of the fees required by this act, the State Insurance Board shall issue such certificate of authority. The State Insurance Board may revoke or suspend any certificate of authority issued hereunder in case of breach of any of the conditions imposed by this act after reasonable notice has been given said attorney in writing, so that he may appear and show cause why action should not be taken. Any attorney who may have procured a certificate of authority hereunder may renew same annually thereafter provided, however, that any certificate of authority shall continue in full force and effect until the new certificate of authority be issued or specifically refused. Any agent, solicitor or inspector soliciting or negotiating contracts of indemnity in this State shall procure annually from the State Insurance Board a license for which a fee of three dollars shall be paid.

Fees.

Section 11. Such attorney shall pay as a fee for the issuance of the certificate of authority herein provided for the sum of twenty dollars, which, together with the fees provided for in the previous sections, shall be in lieu of all license fees and taxes of whatever character in this State.

Laws Applicable.

Section 12.

Except as herein provided no law of this State relating to insurance shall apply to such indemnity contracts or the exchange thereof; provided that the provisions of this act shall not apply to growing crops and farm property.

Approved April 5, 1915.

CHAPTER 225.

MUTUAL INSURANCE COMPANIES-CASUALTIES-GENERAL

LAW.

AN ACT providing for the organization and management of Mutual Insurance Corporations.

Be It Enacted By the People of the State of Oklahoma:

How Organized.

Section 1. That any number of persons, not less than twenty, a majority of whom shall be bona fide residents of the State of Oklahoma, by complying with the provisions of this act may become, together with others who may hereafter be associated with them or their successors, a body corporate, for the purpose of carrying on the business of mutual insurance as herein provided.

Articles of Incorporation.

Section 2. Any persons proposing to form any such corporation shall subscribe and certify to articles of association specifying.

1. The name, the purpose for which formed, location of its principal or home office, which shall be within the state.

2. The names and addresses of those composing the

board of directors in which the management shall be vested until the first meeting of members.

3. The name and place of residence of the incorporators.

Approved by Insurance Board.

Section 3. The articles of association of each such corporation shall be submitted to the State Insurance Board for its approval and, if prepared in accordance with this act, it shall approve the same, and such articles shall be filed with the State Insurance Board.

Name.

Section 4.

The name of every such corporation shall contain the word "mutual," and shall end with the word "company," "corporation," or "incorporated."

Misleading Names.

Section 5. No such name shall be adopted by such corporation which is so similar to any name already in use by any such existing corporation, company or association, organized or doing business in the United States, as to be confusing or misleading.

Legal Beginning.

Section 6. The corporation shall have legal existence, subject to the limitations prescribed in this act, from the approval and filing of such articles, and the original incorporators may adopt by-laws, which thereupon shall be filed with the State Insurance Board.

Insurance Contracts-Scope of Authority.

Section 7. Any corporation organized under the provisions of this act is empowered and authorized to make contracts granting insurance or indemnity, or to reinsure or accept reinsurance on any portion thereof, for the kinds of insurance as follows; provided, that no mutual corporation organized or licensed under this act shall have power to write any kind of insurance which is not permitted to be written by stock companies under the laws of this state.