INSURANCE. 1873

concerned, to the provisions of Section 158 of this Article, applicable in
the organization of new associations; provided that the contributions and
funds of such new members shall be kept separate and apart from the
other funds of the association until the required improvement shall be
shown by valuation. If such required improvement is not shown by the
succeeding triennial valuation, then the said new members may be placed
in a separate class and their certificates valued as an independent associa-
tion in respect of contribution and funds.

1922, ch. 492, sec. 172.

175. Examination of Domestic Associations. The Insurance Com-
missioner, or any person he may appoint, shall have the power of visitation
and examination into the affairs of any domestic association. He may
employ assistants for the purpose of such examination, and he, or any
person he may appoint, shall have free access to all the books, papers and
documents that relate to the business of the association, and may summon
and qualify as witnesses under oath and examine its officers, agents and
employees or other person in relation to the affairs, transactions and con-
dition of the association.

The expense of such examination shall be paid by the association exam-
ined, upon statement furnished by the Insurance Commissioner, and the
examination shall be made at least once in three years. Whenever after
examination the Insurance Commissioner is satisfied that any domestic
association has failed to comply with any provisions of this Article, or is
exceeding its powers, or is not carrying out its contracts in good faith, or
is transacting business fraudulently, or wherever any domestic association
after the existence of one year or more shall have a membership of less
than 400 (or shall determine to discontinue business), the Insurance Com-
missioner may present the facts relating thereto to the Attorney-General,
who shall, if he deem the circumstances warrant, commence an action in quo
warranto in a court of competent jurisdiction, and such court shall there-
upon notify the officers of such association of a hearing; and if it shall
then appear that such association should be closed, said association shall
be enjoined from carrying on any further business; and some person shall
be appointed receiver of such association and shall proceed at once to take
possession of the books, papers, monies and other assets of the association,
and shall forthwith, under the direction of the court, proceed to close the
affairs of the association and to distribute its funds to those entitled thereto.
No such proceedings shall be commenced by the Attorney-General against
any such association until after notice has been duly served on the chief
executive officers of the association and a reasonable opportunity given to
it, on a date to be named in said notice, to show cause why such proceed-
ings should not be commenced.

1922, ch. 492, sec. 173.

176. Application for Receiver. No application for injunction against
or proceedings for any dissolution of or the appointment of a receiver for