The Montgomery advertiser., 1907-08-29

company or association qualifying for business under this act, has been paid in as a benefit or indemnity fund for the use and protection of its members or policyholders. Such benefit fund must either be paid in cash or in bonds of either the United States, the State of Alabama, or of county or munich pality of said State, of the market value of the amount that may be speci- lied in either eof the above and fore going classes of this section, Such benefit funds shall be kept on deposit with the insurance commissioner of Alabama and kept by him as an in- demnity fund for the. beneft of its members or policy holders in this State Provided, however, that any such com pany or association making such de- posit shall be entitled to the income thereof. and may from time to time, with the consent of the insurance commissioner, change in whole or in part the securities which compose the deposit. for other competent securities of equal value. Provided further, that all companies or associations organ ized and transacting business under this act shall have, and at all time maintain solvent assets to the amount of one dollar and fifty cents for each one hundred dollars of Insurance in force, written by such company or as- sociation, and in estimating and de- termining such amount, there must be deducted therefrom any liabilities of such companies or associations for any sums or amounts due or owing for any purpose or claims other than liabilities upon its policies or contracts of insu- rance.
 Sec. 2. Be 1t further enacted, that Section four (4) be amended so as to read as follows: Section 4. That Section 1119 of the Code of Alabama, of 1896, be amended so as to read as follows: 1119 1550). Visitation and examinations: Every such company or association shall be subject to visita- tion and its books and papers to in- spection by the insurance commission CT, his deputy, or such person as he may designate; and the actual expense of such examination shall be paid by the company or association. In no case shall the insurance commissioner or his deputy Or such person as he may designate, charge for the time not actually taken in going over the books and papers. of such company or asso- ciation. If the insurance commission CT, is, after such examination, of the opinion that such company or asso- ciation should be restrained from doing business. he shall report such opinion with the facts upon which 1t is based to the attorney general, whose duty it Is, If he thinks the facts warrant the report, to apply to the chancellor of the chancery division. or the city or other court having chancery jurisdic- tion in which is located the principal office of the company or association, for the appointment of a temporary receiver, and an order requiring the officers of the company or association to show cause within a reasonable time why the company or association should not be restrained from continuing busi- ness. In the event it shall be ascer- tained that the company or association should be restrained from continuing business, and if it shall appear that the interests of policyholders resident In the State of Alabama require fur ther intervention and protection. the court may make the temporary receiver permanent. or may appoint a perma- nent receiver. Tn the administration of the duties of both temporary and permanent receivers they shall be sub- Ject to the laws now in force and to such reasonable orders of the court as may be necessary"
 Approved August g, 1907.
 Oficial:
 Frank N Julian,
 Secretary of State.