paid from a deposit made by the applicant. No commissions or fees are paid to any person, except that the person transmitting an application, whether the insured or any other, is entitled to deduct a fee of twenty-five cents from the initial premium payment and any person transmitting any premium may also deduct a fee of one per cent of the premium. These deductions are made by the insured when he transmits his own premium. Every application must be accompanied by a premium for at least three months. The state board of health and the commissioner of insurance pass upon the applications for insurance. If the application is rejected, the deposit is returned less the fees. If accepted, the premium is paid to the state treasurer and a policy issued signed by the commissioner of insurance and the state treasurer.

"Loans may be made to an amount which with interest does not exceed the reserve. On the nonpayment of a premium the sum is charged as a loan so long as the reserve is sufficient. The whole or any part of any loan may be repaid at any time. The policy may be surrendered for cash on any anniversary, after six months' notice in writing. Losses and other payments are passed upon by a board consisting of the state treasurer, attorney general and commissioner of insurance and audited by the secretary of state.

"Provision is made for a surplus to be made up from fifty per cent of the savings and earnings during the first year of all policies issued and from a contribution reduced by 5 per cent each subsequent year until the ninth year, and thereafter the contribution to the surplus is 10 per cent. All the remaining surplus is distributed annually to the policy-holders, beginning the first year and continuing every year while the insurance is in force.

"The accounts are kept by the commissioner of insurance and audited as the accounts of other state officers. Valuations and