208 CORPORATIONS. [ART. 23

association shall be required to maintain the same reserves for the pro-
tection of members and employees as are required for domestic associa-
tions authorized to transact the same kind of insurance.

1914, ch. 489.

154J. Nothing in this Article shall prevent any employer and his or
its employees, subject to the approval of the State Industrial Commis-
sion, from agreeing upon and conducting any scheme of compensation,
benefit or insurance for the purpose of insuring the payment of com-
pensation or any other liability of such employer to his employees, or,
in the event of death, to the dependents of such employees as the result
of accidental injury to such employees, or for insuring to such employees
sick, old age or other benefits; provided any such scheme of compensa-
tion, benefit or insurance shall maintain the same reserve as is required
under Section 154F of this Article of mutual insurance associations for
the same kind of business 'and shall make reports to the State Insurance
Commissioner and shall be subject to examination by him as is provided
in Section 154G of this Article for mutual insurance associations. But
no such scheme shall assume any insurance risk until it receives a
license from the State Insurance Commissioner, who shall not grant or
issue to it any license until the State Industrial Commission certifies to
him its approval of the plan of such scheme. And no such scheme shall
be so approved or certified by the State Industrial Commission unless
there are at least five hundred employees to be insured therein and the
premium rates to be paid are, in the judgment of said Commission, ade-
quate for the benefits promised, and unless the scheme provides for extra
payments thereto in the event they should be necessary to maintain the
required reserve. But the approval of any such scheme for the insur-
ance of so small a number of employees as five hundred shall be dis-
cretionary with the State Industrial Commission, which shall withhold
its approval of any such scheme for the insurance of a smaller number
than two thousand employees unless the financial plan of the scheme is
especially strong or the risk of hazard is exceptionally low.

If the State Industrial Commission shall at any time find that the
scheme no longer fulfils the requirements of this Section, or is not fairly
administered, or other valid and substantial reasons therefor exist, it
shall withdraw its approval and so notify the State Insurance Commis-
sioner who shall revoke the license of such scheme. When such a license
is revoked or expires, any moneys or securities held for the purposes of
the scheme, shall, after due provision has been made to discharge the
liabilities already accrued, be disposed of or distributed as may be
arranged between the employer and his employees, or as may be deter-
mined by the Commission, in the event of a difference of opinion,
according to the rights of the parties.