SUPERINTENDENT OF TIIE INSURANCE DEPARTMENT. xix

company, one hundred cents on the dollar, or very nearly that rate, for his valid policy claim on the company.

Under chapter 341, Laws of 1876, as amended by chapter 321, Laws of 1877, no life insurance policy can be forfeited by reason of non-payment of a premium, except after proper notice by the company to the policyholder, and the latter has thirty days after the mailing of such notice to make said payment, unless he has waived the giving of said notice.

Furthermore, under chapter 347, Laws of 1879, when a policy which was issued subsequent to Mav 21, 1879. after having been in force three years, shall by its terms, lapse or become forfeited for non-payment of a premium (unless the provisions o said act have been specially waived in the application and notice of such waiver, written or printed in red ink on the margin of the face of the policy when written), the full reserve, after deduction of any indebtedness of the insured to the Company, on said policy, shall, on demand made, with surrender of the policy within six months after such lapse, " be taken as a single premium of life insurance at the published rates of the Company at the time the policy was issued, and shall be applied, as shall have been agreed in the application and policy, either to continue the insurance of the policy in force at its full amount, so long as such single premium will purchase temporary insurance for that amount at thm age of the insured at the time of lapse ; or to purchase upon the same life at the same age, paid-up insurance payable at the same time, and under the same conditions, except as to payment of premiums, as the original policy." If no such agreement has been made in the application and policy, " the said single premium may be applied in either of the modes above specified, at the option of the owner of the policy, notice of such option to be contained in the demand hereinhefore required to be made to prevent the forfeiture of the policy." The net value of the insurance, given for such single premium under the statute, shall in no case be less than two-thirds of the entire reserve after deducting the indebtedness specified.

R. A. MAXWELL, Supepinto? dent