ALBERT C. RITCHIE, GOVERNOR. 1177

in good faith by the applicant, shall effect a forfeiture or be
a ground of defense in any suit brought upon any policy of
insurance issued upon the faith of such application, unless
such misrepresentation or untrue statement relates to some
matter'material to the risk.

SEC. 85. Misstatement of age in Application. Whenever it
shall be made to appear that a wrong age has been given in
good faith in any application for a policy of life insurance,
the company shall not be required to pay the face value of
the policy, but such sura as the premium paid would have pur-
chased at the applicant's real age at the time of effecting t!i°
insurance.

'SEC. 86. Postponement of Dividends on Policies. No life
insurance company authorized to transact business in this state
shall hereafter issue to or upon the life of any resident of
this state any policy participating in the profits or surplus,
under which the accounting, apportionment and distribution
of surplus to the policyholders shall be delayed for a longer
period than five years from the date at which the insurance
first went into effect, or from any preceding accounting, ap-
portionment or distribution of surplus.

Xo such company shall be permitted to enter into any agree-
ment with any policyholder or applicant for insurance, in-
tended as a waiver of any of the provisions of this section,
and it shall be the duty of the commissioner to revoke the
authority of any such company to transact business in this
state, for failure to comply with any of the requirements of
this section.

SEC. 87. Underaverage Risks. Nothing in the foregoing sec-
tion shall apply to policies written on underaveraye risks, but
such underaverage insurance may be written upon such terms
as the parties may a^ree upon, and the surplus may be appor-
tioned and dividends declared and paid annually, or at lonsrer
intervals in the manner and proportions, and amonsr the par-
ties entitled thereto under the terms of their renewal contracts
with thfc corporation.

SEC. 88. Insurance or Reinstatement of Unsound Person.
Any agent, physician or other person who shall insure, or
knowingly cause to be insured or reinstated in membership,
any infirm or unhealthy person not at the time in an insurable
condition shall be deemed guilty of a misdemeanor.