and insuring only all of his employes, or all of any class or classes thereof determined by conditions pertaining to the employment, for amounts of insurance based upon some plan which will preclude individual selection, for the benefit of persons other than the employer; Provided, however, That when the premium is to be paid by the employer and employe jointly and the benefits of the policy are offered to all eligible employes, not less than seventy-five per centum of such employes may be so insured.

47641. Policy, form and approval.-2. No policy of group insurance shall be issued or delivered in this state unless and until a copy of the form thereof has been filed with the commissioner of insurance and approved by him; nor shall such policy be so issued or delivered unless it contains in substance the following provisions.

(a) A provision that the policy shall be incontestable after not more than two years from its date of issue, except for non-payment of premiums and except for violation of the conditions of the policy relating to military or naval service in time of war or other prohibited risks.

(b) A provision that the policy, the application of the employer and the individual application, if any, of the employes insured, shall constitute the entire contract between the parties, and that all statements made by the employer or by the individual employes, shall, in the absence of fraud, be deemed representations and not warranties, and that no such statement shall be used in defense to a claim under the policy, unless it is contained in a written application. The individual certificate referred to in sub-section (d) hereof, issued by the insurance company setting forth a statement as to the insurance protection to which the individual is entitled shall not become a part of the contract between the parties.

(c) A provision for the equitable adjustment of the premium or the amount of insurance payable in the event of a misstatement of the age of an employe.

(d) A provision that the company will issue to the employer for delivery to the employe whose life is insured under such policy, an individual certificate setting forth a statement as to the insurance protection to which he is entitled, to whom payable, together with provision to the effect that in case of the termination of the employment for any reason whatsoever the employe shall be entitled to have issued to him by the company, without further evidence of insurability, and upon application made to the company withing thirty-one days after such termination, and upon the payment of the premium applicable to the class of risk to which he belongs and to the form and amount of the policy at his then attained age, a

policy of life insurance in any one of the forms customarily issued by the company, except term insurance, in an amount equal to the amount of his protection under such group insurance policy at the time of such termination.

(e) A provision that to the group or class thereof originally insured shall be added from time to time all new employes of the employer eligible to insurance in such group or class.

4764m. Policy not liable for debts.-3. No policy of group insurance, nor the proceeds thereof, when paid to any employe or employes, shall be liable to attachment, garnishment, or other process, or to be seized, taken, appropriated, or applied to any legal or equitable process or operation of law, to pay any debt or liability of such employe, or his beneficiary, or any other person who may have a right thereunder, either before or after payment, nor shall the proceeds thereof, where not made payable to a named beneficary, constitute a part of the estate of the employe for the payment of his debts.

4764n. Classification of policies.-4. Any life insurance company may issue life or endowment insurance, with or without annuities, upon the group plan as hereinbefore defined, with special rates of premiums less than the usual rates of premiums for such policies, and may value such policies on any accepted table of mortality and interest assumption adopted by the company for that purpose; Provided, That in no case shall such standard be lower than the American men's table of mortality (ultimate) with interest assumption at three and one-half per cent. All policies of group insurance shall be segregated by the company into a separate class, the mortality experience kept separate, and the number of policies, amount of insurance, reserves, premiums, and payments to policyholders thereunder, together with the mortality table and interest assumption adopted by the company shall be reported separately in the company's annual financial statement.

47640. Repeal.-5. All laws and parts of laws in conflict with the provisions of this act are hereby repealed.

This section does not prohibit a casualty company from taking certificates of deposit from a bank for proceeds of capital stock, and assignment of notes given for stock deposited therewith. Central Bank of West Lebanon v. Martin,

[Acts 1915, p. 571. In force March 9, 1915.] 4789a. Mutual companies to insure against damage to property.— 1. That any number of persons, not less than twenty, a majority of whom shall be bona fide residents of the state of Indiana, 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.

4789b. Articles of association.-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.

4789c. Approval by auditor of state.-3. The articles of association of each such corporation shall be submitted to the auditor of state for his approval and, if prepared in accordance with this act, he shall approve the same, and such articles shall be filed with the auditor of state.

4789d. Name, mutual.-4. The name of every such corporation shall contain the word "mutual," and shall end with the word "company," "corporation," or "incorporated."

4789e. Similar name.-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 and doing business in the state, as to be confusing or misleading.

4789f. Limitations.-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 bylaws, which thereupon shall be filed with the auditor of state.

4789g. Kind of insurance.-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: 1. To make insurance on property and rents and use and occupancy against loss or damage by fire, lightning, hail, tempest, earthquake, explosion, fire ensuing an explosion, no fire ensuing, except explosion by steam boiler or fly-wheels; against loss or damage by water, caused by the breakage or leakage of sprinklers, pumps, or other apparatus, water pipes, plumbing, or their fixtures, erected for extinguishing fires, and against accidental injury from any cause to such sprinklers, pumps, other apparatus, water pipes, plumbing, ori their fixtures, erected for extinguishing fires, and against accidental injury from any cause to such sprinklers, pumps, other apparatus, water pipes, plumbing and fixtures; on the risks of inland transportation and navigation; and to make insurance upon automobiles, whether stationary or operated under their own power, against loss or damage by any of the causes or risks specified in this section, including explosion, transportation, collision, liability for damage to property resulting from owning, maintaining or using automobiles, and including burglary and theft, but not including loss or damage by reason of bodily injury to the person.

2. Against loss, expense or liability or to secure the payment of compensation by reason of bodily injury, death by accident, disability, sickness or disease suffered by others for which the insured may be liable or have assumed liability.

3. To issue individual insurance policies against bodily injury, or death by accident or upon the health of persons.

4. Against the loss, expense, and liability resulting from the ownership, maintenance or use of any automobile or other vehicle, provided no policy shall be issued against the hazard of fire alone.

5. Against loss or liability to persons or property resulting from explosion, or accidents, to boilers, containers, pipes, engines, flywheels, elevators and machinery in connection therewith and against loss of use and occupancy caused thereby, and to make inspections and issue certificates of inspection thereon.

6. Against loss from interruption of trade or business which may be the result of any accident or casualty.

7. Against any loss or liability arising from any other casualty or insurance hazard which may lawfully be the subject of insurance, excepting life or fire.

4789h. Purposes limited.-8. Any mutual corporation authorized to transact the kind of insurance described under sub-section 1 of section 7, shall not be authorized to transact any of the kinds of insurance described under sub-sections 2, 3, 4, 5, 6, and 7 of section 7; nor shall any mutual corporation authorized to transact any of the kinds of insurance described under sub-sections 2, 3, 4, 5, 6 and 7 of section 7, be authorized to transact the kind of insurance described under sub-section 1 of section 7. Any mutual corporation authorized to transact any of the kinds of insurance described under sub-sections 2, 3, 4, 5, 6, and 7 of section 7, may be authorized to transact any or all of the additional kinds described under said sub-sections, providing it holds the admitted assets required under sub-section 7 of section 9. 47891. Conditions, compliance.-9. No such corporation shall issue policies or transact any business of insurance unless it shall comply with the conditions following nor until the auditor of state has by formal license, authorized it to do so, which license shall not issue until the corporation has complied with the following conditions:

If organized to transact the kind of insurance described in sub-section 1, of section 7:

1. Applications for at least two hundred (200) risks, for at least twenty members, shall be subscribed, aggregating not less than five hundred thousand dollars ($500,000.00) insurance.

2. The maximum amount of any single risk, less reinsurance, shall not exceed three times the average risk or one per cent. of the insurance applied for, whichever is the greater.

3. A premium upon each application shall be collected in cash and the corporation shall hold total cash assets of not less than twice the maximum single risk assumed subject to one fire, nor less than ten thousand dollars ($10,000.00).

4. It shall hold admitted assets equal to at least two times the maximum risk assumed. If organized to transact the kind of insurance described under sub-sections 2, 3, 4, 5, 6 and 7 of section 7;

5. It shall hold bona fide applications for insurance upon which it shall issue simultaneously at least twenty policies to at least twenty members of the same kind of insurance upon not less than 200 separate risks, each within the maximum single risk prescribed herein.

6. The maximum single risk shall not exceed twenty per cent. of its admitted assets or three times the average policy, or one per cent. of the insurance in force, whichever is the greater, any reinsurance taking effect simultaneously with the policy being deducted in determining such maximum single risk.

7. It shall hold admitted assets for each kind of insurance to be issued equal to at least five times the maximum single risk assumed.