ALBERT C. RITCHIE, GOVERNOR, 1197

SEC. 124. Reinsurance. Any such mutual insurance
pany organized under the laws of or admitted to transact insur-
ance in this state may by policy, treaty or other agreement,
cede to or accept from any insurance company or insurer
licensed in atj" state in the United States, reinsurance upon
the whole or any part of any risk or risks, with or without con-
tingent liability or participation, and with or without member-
ship in such mutual insurance company; provided, that no
such reinsurance shall be effected with any company or insurer
disapproved therefor by written order of the insurance com-
missioner filed in his office.

SEC. 125- Resident Agent; Policy Forms. Any mutual
insurance company organized outside of this state shall comply
with the provisions of any law requiring that policies shall be
countersigned and delivered through a resident agent that are
applicable to stock insurance companies effecting the same kinds
of insurance ; provided that this requirement shall not apply to
transactions of such companies which have no agents and pay
no commissions. Such company may insert in any form of
policy prescribed by the law of this state any provision or
condition required by its plan of insurance which are not in-
consistent or in conflict with any law of this state. Such policy
in lieu of conforming to the language and form prescribed by
such law, may conform thereto in substance, if such policy in-
cludes a provision or endorsement reciting that the policy shall
be construed as if in the language and form prescribed by
such law, and a copy of such policy and endorsement, if any,
shall have been first filed with and shall not have been disap-
proved by the commissioner.

SEC. 126. Dividends on Policies. From time to time the
directors of any such company may, by vote, fix and determine
the percentage of dividend or expiration return of premium
to be paid on expiring policies, which percentages may differ,
'following the different loss experience of different classes of
risks of the same term. But all policies insuring risks in the
same classification, shall have an equal rate of dividend or ex-
piration return of premium for the same term, and in case of an
assesment, the rate thereof may be different for each different
class of risks, provided that every policy in a company thus
dividing its risks into two or more classifications shall, when
issued, bear an endorsement clearly indicating the class to
wThich it is assigned. Every policyholder of a domestic com-