ALBERT C. RITCHIE, GOVERNOR. 1199

company. Should the members of such company fail to make
such reasonable rules and regulations, the directors thereof
shall make and submit them to the state industrial accident
commission for its approval, and when approved by said com-
mission the directors of such company shall enforce them. If
such company appoints one or more inspectors or experts
for the purpose of accident prevention, they shall have free
access to all premises of employer members, where work is
being conducted during regular working hours. The policy
of any member neglecting to provide suitable safety appliances
as provided by law, or as required by the rules and regulations
of the company may be cancelled and terminated by the board
of directors, after giving such member notice of such cancella-
tion ten days prior to its becoming effective.

SEC. 129. Employer and Employees May Agree Upon
Scheme of Compensation. Nothing in this article shall pre-
vent any employer and his or its employees, subject to the ap-
proval of the state industrial accident commission, from agree-
ing upon and conducting any scheme of compensation, benefit
or insurance for the purpose of insuring the payment of com-
pensation or any other liability of such employer to his em-
ployees, or, in the event of death, to the dependents of such
employees, as the result of accidental injury to such employees,
or for insuring to such employees sick, old age or other bene-
fits; provided any such scheme of compensation, benefit or
insurance shall maintain the same reserves as are required
under-section 117 of mutual insurance companies for the same
kind of business, and shall make reports to the insurance com-
missioner and shall be subject to examination by him as pro-
vided in section 122 for mutual insurance companies. But no
such scheme shall assume any insurance risk until it receives
a license from the insurance commissioner, who shall not grant
or issue to it any license until the state industrial accident
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 accident 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 commis-
sion, adequate for benefits promised, and unless the scheme
provides for extra payments thereto in the event they should
be necessary to maintain the required reserves. But the ap-
proval of any such scheme for the insurance of so small a
number of employees as five hundred shall be discretionarv