INSURANCE 2141

provided, however, that in case it shall appear that there is no fraud,
gross incompetency or recklessness in the management of said company,
he may allow said company ninety days from the time of the completion
of said examination within which to reestablish its solvency, before institut-
ing proceedings as herein provided.

An. Code, 1924, sec. 98. 1922, ch. 492, sec. 95.

126. (Mutual Industrial Life Insurance Companies.) Companies is-
suing certificates for the payment of money or other benefits in the event of
sickness, accident or death, or other contingency, either to the members,
policy or certificate holders, or to their families or representatives, but is-
suing no certificate or other form of contract of payment in the aggregate
of a greater sum than one thousand dollars upon the termination of any one
life or combination of lives, or a sum greater than seventy-five dollars
annually, or the equivalent thereof, whether the payments be stipulated
to be made annually, or at shorter or longer intervals, upon any contract
of annuity in which the continuance of any one life, whether singly or in
connection with other lives jointly or in succession, or combined in any
way whatsoever, or during sickness or disability, is involved as an ele-
ment of the contract, may be formed subject to the provisions of this
article applicable to life insurance companies and not inconsistent here-
with, on the mutual, co-operative, assessment or stock plan. Any such com-
pany formed on the mutual, co-operative or assessment plan, shall not
be entitled to receive a certificate of authority to transact such business,
or issue any benefit certificate, or pay or allow, or offer or promise to pay
or allow to any person any death, endowment or disability benefit until
actual bona fide applications for death benefit certificates shall have been
secured upon at least five hundred lives for the aggregate amount of at
least twenty thousand dollars. All such companies formed on the capital
stock plan, except those authorized and referred to in section 133, shall,
before being entitled to receive a certificate of authority to transact such
business, have a paid-up capital of at least fifty thousand dollars, and all
such companies, except those authorized and referred to in said section
133, whether formed on the mutual, co-operative, assessment or capital
stock plan, shall be possessed of and constantly maintain a sum of money
not less in amount than fifty thousand dollars, or interest or dividend-
paying securities of equal market value, not in default, which shall be
deposited with the commissioner as provided by section 20.

1933, ch. 580. 1935, ch. 24.

127. (Policyholders of Mutual Companies.) Every policyholder of
a Mutual Insurance Company engaged in the business of Life, Accident and
Health Insurance under the provisions of this Article shall be a member
of said Company while the policy issued to such policyholder is in force.
Every member of the Company shall be entitled to one vote or to such a
number of votes based upon the insurance in force, the number of policies
held or the amount of premium paid, as may be provided in the By-Laws.
Any such member may vote either in person or by proxy, but no proxy
which is dated more than three months before the meeting at which it is
offered shall be accepted unless such proxy shall, on its face, name a longer
period for which it is to remain in force, or shall state that it is to remain
in force as long as said policyholder is a member of said Company. Any
member may revoke any such proxy at any time.