owner of the policy a stipulated form of insurance, the net value of which shall be at least equal to the reserve at the date of default on the policy and on any dividend additions thereto, specifying the mortality table and rate of interest adopted for computing such reserves, less a sum not more than two and one-half per cent of the amount insured by the policy and of any existing dividend additions thereto, and less any existing indebtedness to the company on the policy. Such provision shall stipulate that the policy may be surrendered to the company at its home office within one month from date of default for a specified cash value at least equal to the sum which would otherwise be available for the purchase of insurance, as aforesaid, and may stipulate that the company may defer payment for not more than six months after the application therefor is made. This provision shall not be required in term insurances.

A table showing in figures the loan values, and the options available under the policies each year upon default in premium payments during the first twenty years of the policy or the period during which premiums are payable, beginning with the year in which such values and options become available.

9. A provision that if, in event of default in premium payments, the value of the policy shall be applied to the purchase of other insurances, and if such insurance shall be in force and the original policy shall not have been surrendered to the company and cancelled, the policy may be reinstated within three years from such default, upon evidence of insurability satisfactory to the company and payments of arrears of premiums with interest.

10. A provision that when a policy shall become a claim by the death of the insured, settlement shall be made upon receipt of due proof of death and the right of the claimant to the proceeds, or not later than two months after receipt of such proof.

11. A table showing the amounts of installments in which the policy may provide its proceeds may be payable.

Any of the foregoing provisions or portions thereof not applicable to single premium policies shall, to that extent, not be incorporated therein. SEC. 23. No policy of life insurance shall, after December 31, 1909, be issued or delivered in this State or be issued by a life insurance company incorporated under the laws of this state if it contains any of the following provisions:

1. A provision limiting the time within which any action at law or in equity may be commenced to less than two years after the cause of action shall accrue.

2. A provision by which the policy shall purport to be issued or to take effect more than six months before the original application for the insurance was made, if thereby the insured would rate at any age younger than his age at date when the application was made, according to his age at nearest birth day.

3. A provision for any mode of settlement at maturity of less value than the amounts insured on the face of the policy, plus dividend additions if any, less any indebtedness to the company on the policy, and less any premium that may by the terms of the policy be deducted; provided, that any company may issue a policy promising a benefit less than the

full benefit in case of the death of the insured by his own hand while sane or insane or by following stated hazardous occupations. This provision shall not apply to purely accident and health policies. None of the foregoing provisions relating to policy forms shall apply to policies issued in lieu of or in exchange for any other policy issued before this Act shall take effect.

SEC. 24. The policies of a life insurance company not organized under the laws of this State may contain any provision which the law of the state, territory, district or country under which the company is organized prescribes shall be in such policies when issued in this State, and the policies of a life insurance company organized under the laws of this State may, when issued or delivered in any other state, territory, district or country contain any provision required by the laws of the state, territory, district or country in which the same are issued, any thing in this Act to the contrary notwithstanding.

SEC. 25. Insurance companies incorporated under the, laws of this State shall hereafter be required to render for State, county and municipal taxation all of their real estate as other real estate is rendered and all of the personal property of such insurance companies shall be valued as other property is valued for assessment in this State in the following manner: From the total valuation of its assets shall be deducted the reserve, being the amount of debts of insurance companies by reason of their outstanding policies in gross, and from the remainder shall be deducted the assessed value of all real estate owned by the company and the remainder shall be the assessed taxable value of its personal property. Home insurance companies shall not be required to pay any occupation or gross receipt tax.

SEC. 26. Any life insurance company, or accident insurance company, or life and accident, health and accident, or life, health and accident insurance company, incorporated under the laws of any other state, territory or country, desiring to transact the business of such insurance in this State, shall furnish said Commissioner of Insurance and Banking with a written or printed statement under oath of the president or vice president or treasurer and secretary of such company, which statement shall show:

(a) The name and locality of the company.

(b) The amount of its capital stock.

(c) The amount of its capital stock paid up.

(d) The assets of the company, including 1st, the amount of cash on hand and in the hands of other persons, naming such persons and their residence; 2nd, real estate unincumbered, where situated and its value; 3rd, the bonds owned by the company and how they are secured, with the rate of interest thereon; 4th, debts due the company secured by mortgage, describing the property mortgaged and its market value; 5th, debts otherwise secured, stating how secured; 6th, debts for premiums; 7th, all other moneys and securities.

(e) Amount of liabilities to the company, stating the name of the person or corporation to whom liable.

(f) Losses adjusted and due.
(g) Losses adjusted and not due.

(h) Losses adjusted.

(i)

Losses in suspense and for what cause.

(j) Ail other claims against the company, describing the same.

Provided that the Commissioner of Insurance and Banking may require any additional fact to be shown by such annual statement. Each such company shall be required to file a similar statement not later than March 1st of each year.

SEC. 27. Such foreign life insurance company, or accident insurance company, or life and accident, health and accident, or life, health and accident insurance company shall accompany such statement with a certified copy of its acts or articles of incorporation, and all amendments thereto and a copy of its by-laws, together with the name and residence of each of its officers and directors, and all of which shall be certified under the hand of the president or secretary of such company.

SEC. 28. No such foreign life insurance company, accident insurance company, or life and accident, health and accident, or life, health and accident insurance company, shall transact any business of insurance in this State unless such company is possessed of at least $100,000 of actual paid up in cash money capital invested in such securities as provided under the laws of the state, territory or country of its creation; and no mutual life insurance company or accident insurance company, or life and accident, health and accident, or life, health and accident insurance company operating on the old line or legal reserve basis, shall transact any business of insurance in this State unless such company is possessed of at least $100.000 of net surplus assets invested in securities provided for under the laws of the state, territory or country of its creation.

SEC. 29. Whenever the existing or future laws of any other state or territory of the United States, or of any other country, shall require of life insurance companies, accident insurance companies or life and accident, health and accident, or life, health and accident insurance companies, incorporated by this State, any deposit of securities in such other state, territory or country before transacting insurance business therein, then, and in every such case all insurance companies of such state shall, before doing any insurance business in this State, be required to make the same deposit of securities with the Treasurer of this State.

SEC. 30. No foreign life insurance company or accident insurance company, or life and accident, health and accident, or life, health and accident insurance company incorporated by or organized under the laws of any foreign government shall transact business in this State unless it shall first deposit and keep deposited with the Treasurer of this State, for the benefit of the policy holders of such company, citizens or residents of the United States, bonds or securities of the United States or the State of Texas to the amount of $100,000.

SEC. 31. The deposit required by the preceding Section shall be held liable to pay the judgments of policy holders in such company and may be so decreed by the court adjudicating the same.

SEC. 32. If the deposit required by Section 30 has been made in any state of the United States, under the laws of such state in such manner as to secure equally all the policy holders of such company who are citizens and residents of the United States, then no deposits shall be required

in this State, but a certificate of such deposit under the hand and seal of the officer of such other state with whom the same has been made shall be filed with the Commissioner of Insurance and Banking.

SEC. 33. Suits on policies may be instituted and prosecuted against any life insurance company or accident insurance company, or life and accident, or health and accident, or life, health and accident insurance company, in the county where the home office of such company is located or in the county where loss has occurred or where the policy holder or beneficiary instituting such suit resides.

SEC. 34. Process in any civil suit against any domestic life insurance company, or accident insurance company, or life and accident, health and accident, or life, health and accident insurance company may be served only on the president, or any active vice president or secretary or general counsel residing at the city of the home office of the company, or by leaving a copy of same at the home office of such company during business hours.

SEC. 35. In all cases where a loss occurs and the life insurance company, or accident insurance company, or life and accident, health and accident, or life, health and accident insurance company liable therefor shall fail to pay the same within thirty days after demand therefor, such company shall be liable to pay the holder of such policy in addition to the amount of the loss, twelve per cent damages on the amount of such loss together with reasonable attorney fees for the prosecution and collection of such loss.

SEC. 36. Should any life insurance company, accident insurance company, life and accident, health and accident, or life, health and accident insurance company fail to pay off and satisfy any execution that may lawfully issue on any final judgment against said company within thirty days after the officer holding such execution has demanded payment thereof from any officer or attorney of record of such company in this State, or out of it, such officer shall immediately certify such demand and failure to the Commissioner of Insurance and Banking, and thereupon the commissioner shall forthwith declare null and void the certificate of authority of such company and such company shall be prohibited from transacting any business in this State until such execution shall be fully satisfied and discharged, and until such commissioner shall renew his certificate of authority to such company.

SEC. 37. It shall be unlawful for any life insurance company, accident insurance company, life and accident, health and accident, and life, health and accident insurance company to take any kind of risks or issue any policies of insurance except those of life, accident or health; nor shall the business of life, accident or health insurance in this State be in any wise conducted or transacted by any company which in this or any other state or country is engaged or concerned in the business of marine, fire or inland insurance.

SEC. 38. Any life insurance company, accident insurance company. life and accident, health and accident, or life, health and accident insurance company, organized under the laws of this State, may at its option deposit with the Treasurer of this State, securities equal to amount of its capital stock, and may at its option withdraw the same or any part

thereof, first having deposited in the Treasury in lieu thereof other securities equal in value to those withdrawn. Any such securities before being so originally deposited or substituted shall be approved by the Commissioner of Insurance and Banking, and when any such deposit is made the Treasurer shall execute to the company making the deposit a receipt therefor, giving such description to such securities as will identify the same, and such company shall have the right to advertise such fact or print a copy of the Treasurer's receipt on the policies it may issue, and the proper officers or agents of each insurance company making such deposit shall be permitted at all reasonable times to examine such securities and to detach coupons therefrom and to collect interest thereon under such reasonable. rules and regulations as may be prescribed by the Treasurer and the Commissioner of Insurance and Banking of this State. The deposit herein provided for, when made by any company, shall thereafter be maintained as long as said company shall have outstanding any liability to its policy holders. For the purpose of State, county and municipal taxation the situs of all personal property belonging to such companies shall be at the home office of such company.

SEC. 39. Any director, member of a committee or officer or any clerk of a home company who is charged with the duty of handling or investing its funds shall not deposit or invest such funds except in the corporate name of such company; shall not borrow the funds of such company; shall not be interested in any way in any loan, pledge, security, or property of such company except as stockholder; shall not take or receive to his own use any fee, brokerage, commission, gift or other consideration for or on account of a loan made by or on behalf of such company.

SEC. 40. Should the Commissioner of Insurance and Banking be satisfied that any company applying for a certificate of authority has in all respects fully complied with the law and that if a stock company, its capital stock has been fully paid up that it has the required amount of capital or surplus to policy holders it shall be his duty to issue to such company a certificate of authority under the seal of his office, authoriing such company to transact insurance business, naming therein the particular kind of insurance, for the period of not less than three months nor extending beyond the last day of February next following the date of such certificate. And if any such insurance company organized under the laws of any state or country after having obtained a certificate of authority from the Commissioner of Insurance and Banking or other officer authorized to issue such permit to do business in this State, shall bring in any Federal court any suit or action against any citizen of this State or shall remove any suit or action heretofore or hereafter commenced in any court of this State, to which it is a party, to any Federal court the Commissioner of Insurance and Banking shall forthwith revoke and recall the certificate of authority of such insurance company to do and transact business in this State, and no renewal of authority shall be granted to such insurance company to do business in this State for a period of three years after such revocation, and such insurance company shall thereafter be prohibited from transacting any business in this State until again duly authorized by law.

SEC. 41. The Commissioner of Insurance and Banking shall, at the