PHILLIPS LEE GOLDSBOROUGH, GOVERNOR. 821

to such employees, or for insuring to such employees sick, old
age or other benefits; provided any such scheme of compensation,
benefit or insurance shall maintain the same reserve as is re-
quired under Section 154-F 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 sub-
ject to examination by him as is provided in Section 154-G 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, adequate for the
benefits promised, and unless the scheme provides for extra
payments thereto in the event they should be necessary to main-
tain the required reserve. But the approval of any such scheme
for the insurance of so small a number of employees as five
hundred shall be discretionary with the State Industrial Com-
mission, which shall withhold its approval of any such scheme
for the insurance of a smaller number than two thousand em-
ployees 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 fulfills the requirements of this Sec-
tion, or is not fairly administered, or other valid and substan-
tial reasons therefor exist, it shall withdraw its approval and so
notify the State Insurance Commissioner, who shall revoke the
license of such scheme. When such a license is revoked or ex-
pires, 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 determined by the Commission, in the event of a dif-
ference of opinion, according to the rights of the parties.

Where such an approved or certified scheme of compensation,
benefit or insurance is in effect the employer shall answer all
inquiries in regard thereto as may be required by the State In-
dustrial Commission.

SEC. 2. And be it enacted, That this Act shall take effect
from the date of its passage.
Approved April 16th, 1914.