[accident] or casualty corporations) shall issue a contract of insurance upon the life of any person under fifteen years of age, or after he or she has passed his or her sixty-first birthday. Every such contract of insurance shall be founded upon written application therefor, and (except when the application is for one hundred dollars life insurance or less) such application shall be accompanied by the report of a reputable physician, containing a detailed statement of his examination of the applicant, and showing the applicant to be in good health, and recommending the issuance of a contract of insurance; provided, that no medical examination shall be required on any application for accident or casualty insurance only. Any solicitor, agent, employee, examining physician or other person, making a false or fraudulent statement to any corporation doing business under this Act, with reference to any application for insurance, or for the purpose of obtaining any money or benefit from such corporation, shall be guilty of a misdemeanor, and upon conviction shall be punished by a fine of not less than one hundred dollars nor more than five hundred dollars, or by imprisonment in the county jail for not less than thirty days nor more than one year, or by both such fine and imprisonment in the discretion of the court. And any person who shall make a false statement of any material fact or thing in a sworn statement as to the death or disability of a contract holder in any such corporation, for the purpose of procuring or aiding the beneficiary or beneficiaries or contract holder in procuring the payment of a benefit [named] in the contract, shall be guilty of perjury, and may be proceeded against and punished as provided by the statutes of this state in relation to the crime of perjury.

Exempt from Attachment.

950. SEC. 9. The money, benefit, annuities, endowment, charity, relief, or aid to be paid as provided by the contracts, issued by any corporation doing business under this Act, shall not be liable to attachment or other process, and shall not be seized, taken, appropriated, or applied by any legal or equitable process nor by operation of law, to pay any debts or liabilities of the contract holder or any beneficiary named thereunder.

Report to Controller.

951. SEC. 10. Every domestic and foreign corporation doing business under this Act shall, annually, on or before the first day of March, file with the State Controller, in such form as he shall prescribe, a statement of its affairs for the year ending on the preceding thirty-first day of December. The Controller in person, or by duly authorized deputy, shall have the power of examination into the affairs of any domestic corporation doing business, or claiming to do business under this Act, at any time in his discretion, and shall make such examination at least once a year.

Controller May Call Officers to Account.

952. SEC. 11. If the Controller, after examination of the affairs of a corporation, shall find that such corporation is not doing its business in conformity to this Act, or that it is doing a fraudulent or unlawful business, or that it is not carrying out its terms of contract, or that it cannot, within three months from the date of (notice of) default, pay its obligations, he shall cite the President, Secretary, manager or general agent of said corporation, or all of them, to appear before him (stating the time and place) to show cause why the authority of such corporation to do business shall not be revoked; and if they cannot show cause, then he shall report the facts to the Attorney-General of this state, who shall commence proceedings in the proper court to restrain said corporation from doing any further business.

Policy Not to Lapse Without Notice.

953. SEC. 12. No policy or certificate issued by any corporation or association, doing business under the provisions of this Act, shall lapse or be lapsed for the

non-payment of any assessment, dues or premiums, unless the corporation or association has first mailed to the insured under such policy or certificate, at his or her last given postoffice address, a notice setting forth the amount to be paid and the time the same is due and payable (and such notice shall be mailed at least fifteen days before the assessment is due); provided, that such corporations doing business under this Act as collect specific amounts at specific dates, as contained in the contract, shall not be compelled to send such notices; and an affidavit made by the officer, bookkeeper or clerk of any such corporation having charge of the mailing of notices, setting forth the facts as they appear on the records of the office of the said corporation, showing that such notice was mailed and the date of mailing, shall constitute conclusive evidence of the mailing of such notice.

Fee for License.

954. SEC. 13. The State Controller shall collect five dollars for filing each power of attorney and issuing his certificate of authority for doing business, and one hundred ($100) dollars per annum in advance for a license to do business, which shall be in full for all fees for the purposes of this Act.

Penalties Expenses, How Paid.

955. SEC. 14. The penalties for any violation of this Act shall, except as otherwise provided herein, be the same as provided in "An Act to license and regulate insurance business in this state," approved February 23, 1881. [Sec. 903, et seq.] For all lawful expenses under this Act, or by reason of any of its provisions, in the prosecution of any suit or proceedings, or otherwise, for the enforcement of its provisions, the Controller shall present bills, duly certified by him, and accompanied with vouchers, to the State Board of Examiners, who shall allow the same, and the Controller shall draw warrants therefor on the State Treasurer for payment to the Controller of said bills, which warrants shall be payable out of the general fund.

Not to Apply to Fraternal Societies.

956. SEC. 15. The provisions of this Act shall not apply to secret or fraternal societies, lodges, or councils, which conduct their business and secure membership on the lodge system exclusively, having ritualistic work and ceremonies in their societies, lodges, or councils; nor to any mutual or benefit association organized or formed and composed only of members of any such society, lodge, or council exclusively.

Repeal.

957. SEC. 16. "An Act to regulate and license mutual life associations in this state," approved February 26, 1887 [p. 85], and an Act amendatory thereof, approved March 9, 1889 [p. 98], are hereby repealed.

An Act requiring insurance companies to make annual statements to the State

958. SECTION 1. Every insurance company of whatever kind or character, and every mutual life or assessment association, except charitable secret societies issuing benefits to its own members only, shall annually, on or before the first day of March, file in the office of the State Controller a statement, signed and sworn to by its President and Secretary, which shall exhibit its financial condition on the thirty-first day of December of the previous year, and shall include a detailed statement of its assets and liabilities, the amount and character of its business transacted and moneys received and expended during that year, specifying particularly its business transacted in Nevada, and such other information

as the State Controller may deem necessary to elicit a complete and accurate exhibit of its condition and transactions, and in such form as he may prescribe. The annual statement of a company of a foreign country shall embrace only its business and condition in the United States, and shall be subscribed and sworn to by its resident manager or principal representative in charge of its American business. The transaction of any new business by any company, or its agents, after neglect to file a statement in the manner herein provided, shall be unlawful. As amended, Stats. 1891, 32.

Failure to File Statement-False Statement.

959. SEC. 2. Any company that neglects to make and file its annual statement in the form and within the time provided by section one, shall forfeit one hundred dollars for each day's neglect, and upon notice by the State Controller to that effect, its authority to do new business shall cease while such default continues. For willfully making a false annual or other statement it is required by law to make, an insurance company and the persons making oath to or subscribing the same, shall severally be punished by fine of not less than five hundred nor more than five thousand dollars. Any person making oath to such false statement shall be deemed guilty of the crime of perjury.

Controller to Report to Governor.

960. SEC. 3. The State Controller shall annually report to the Governor abstracts of all statements received, together with such suggestions as may be pertinent.

An Act to authorize the formation of corporations for the purpose of transacting business as sureties on all bonds and undertakings required by law, and to prescribe the powers and duties of such incorporations.

Power to Incorporate.

Approved March 8, 1897, 61.

961. SECTION 1. Any ten or more persons who are residents and householders in the State of Nevada may, by complying with the provisions of this Act, form a company under the general incorporation laws of this state for the purpose of acting as and becoming surety on any bond or undertaking required by the laws of this state.

Approval and Filing of Certificate.

962. SEC. 2. All certificates of incorporation prepared under the provisions of this Act shall be submitted to the Attorney-General, and if found to be in accordance with law in all respects, that officer shall certify that fact, which certificate shall be authority for the Secretary of State to receive and file such articles of incorporation in accordance with the statutes governing the formation of corporations.

Who to Be Stockholders-Affidavits Examination of Stockholder, etc.

963. SEC. 3. Each and every person before becoming an officer or stockholder in any company organized under this Act shall justify before an officer authorized to administer oaths that he is a resident and freeholder or householder within this state and that he is worth double the par value of stock subscribed by him in said company, over and above all his debts and liabilities, in property situated within this state and which is not exempt from sale on execution. If at any time thereafter the assests of any such stockholder shall from any cause be reduced to such an extent as to render him unable to justify as above, it shall be his duty to surrender stock in said company in proportion to such reduction in his assets. If at any time any taxpayer in the state shall make complaint under oath to the District Attorney of the county wherein such stockholder resides, that the provisions of this section are being neglected, not complied with, or violated, by any such stockholder, it shall be the duty of such District Attorney to cause such

stockholder to be examined under oath before some Justice of the Peace in his county, as to the financial condition of such stockholder, and if it shall appear that such stockholder has violated the provisions of this section he shall forfeit his stock in such corporation and in addition thereto shall be deemed guilty of a misdemeanor and shall be punished by a fine of not less than one hundred dollars nor more than five hundred dollars, or by imprisonment in the county jail for a period of not less than one month nor more than six months, or by both such fine and imprisonment.

Stockholder Responsible.

964. SEC. 4. Every stockholder shall be personally responsible to the full amount of the par value of the stock held in the company.

Liabilities Limited.

965. SEC. 5. In no case shall the total amount of liabilities incurred by any company exceed the total amount of stock actually held by the members of any incorporation organized under this Act.

To File Articles With County Recorder.

966. SEC. 6. Each company organized under this Act shall file a properly certified copy of its articles of incorporation in the office of the Recorder of each county in this state in which any bond is furnished by such company, and no bond shall be accepted or approved in any county until such articles of incorporation are so filed.

Duty of District Attorney.

967. SEC. 7. It shall be the duty of any District Attorney in any county in this state, whenever he may become personally aware that any of the provisions of section three of this Act are being neglected, avoided or not complied with by any officer or stockholder of any surety company formed under the provisions of this Act, to personally cause any such stockholder to be examined under oath concerning the same, before some Justice of the Peace as in said section three provided, and upon the failure of any District Attorney so to do, he shall be deemed guilty of a misdemeanor in office and may be proceeded against accordingly.

An Act to facilitate the giving of bonds and undertakings required by law.

Approved February 26, 1887, 86.

Surety Company May Go on Bond, Conditions-Duties of Controller-Fees of Secretary of State. 968. SECTION 1. Any company incorporated and organized under the laws of any state of the United States for the purpose of transacting business as surety on obligations of persons, or corporations, or state, county or township officers, and which has complied with all the requirements of the law regulating the admission of such companies to transact business in this state, may, upon production of evidence of solvency and credit satisfactory to the Judge, head of department or other officer or officers authorized to approve such bond, be accepted as surety upon the bond of any person, or corporation, state, county or township officer required by the laws of this state to execute a bond, and if such surety company shall furnish satisfactory evidence of its ability to provide all the security required by law, no additional security may be exacted, but other surety may, in the discretion of the official or officials authorized to approve such bond, be required, and such surety company may be released from its liability on the same. terms and conditions as are by law prescribed for the release of individuals, it being the true intent and meaning of this Act to enable corporations created for that purpose, to become surety on bonds required, subject to all the rights and liabilities of private parties. No surety company not incorporated under authority of this state shall, directly or indirectly, take risks or transact busi

ness in this state until it shall have first appointed the State Controller of this state to be the true and lawful attorney of such company, in and for this state, upon whom all lawful process may be served with the same effect as if the company existed in this state. Said power of attorney shall stipulate and agree on the part of the company that any lawful process against the company, which is served on said attorney, shall be of the same legal force and validity as if served on the company, and that the authority shall continue in force so long as any liability remains outstanding in this state. A certificate of such appointment shall be filed in the office of the Secretary of State, and copies certified by him shall be received in evidence in all the courts of this state. Service of process in actions and proceedings upon such attorney shall be deemed service upon the principal, but such principal shall be allowed thirty days thereafter within which to appear and plead in all such actions and proceedings. Whenever any lawful process against a surety company shall be served upon the State Controller he shall forthwith forward a copy of the process served upon him, by mail, postpaid, and directed to the Secretary of the company. For each copy of the process the Secretary of State shall collect the sum of five dollars, which shall be paid by the plaintiff at the time of such service, the same to be recovered by him as a part of the taxable costs if he prevail in the suit. As amended, Stats. 1899, 101.

Sum for Expenses.

969. SEC. 2. Any court or officer whose duty it is to pass upon the account of any person or corporation required by law to give a bond or undertaking may, whenever such person or corporation has given any such surety company as security upon said bond or undertaking, allow in the settlement of such account a reasonable sum for the expense of procuring such surety; provided, the provisions of this section shall not apply to any state or county officer required by law to give a bond.

Shall Be Estopped.

970. SEC. 3. Any company which shall execute any bonds as surety, under the provisions of this Act, shall be estopped in proceedings to enforce the liability which it shall have assumed to incur to deny its corporate power to execute such instrument or assume such liability.

RAILROAD, TELEGRAPH AND TELEPHONE.

An Act to provide for the incorporation of railroad companies, and the management of the affairs thereof, and other matters relating thereto.

Approved March 22, 1865, 427.

Formation of Corporations Conditions.

971. SECTION 1. Any number of persons, not less than ten, either in this state or the United States, being subscribers to the stock of any contemplated railroad, may be formed into a corporation for the purpose of constructing, owning, and maintaining such railroad, by complying with the following requirements: Whenever stock to the amount of at least one thousand dollars for each and every mile of the proposed railroad shall have been so subscribed, and ten per cent in cash of the amount so required to be subscribed, shall be actually, and in good faith, paid to a Treasurer, to be named and appointed by said subscribers from among their number, then the said subscribers, either in person or by written proxy, after having received at least five days notice from said Treasurer of a meeting of said subscribers for that purpose, may adopt articles of associ