law, or of his physical or mental inability, or to fraud, misrepresentation or deceit.

SEC. 10. The above-entitled act is hereby amended by adding an additional section thereto to be known as section 401, which shall read as follows:

SEC. 40. It shall be the duty of the industrial commission board, provided for by section 8 of this act, annually or as often as they may deem necessary to make an audit of all books of accounts and record and of funds and securities of the Nevada Industrial Commission, and said industrial commission board is authorized to employ and fix the compensation of a competent accountant for the purpose of making such audit or audits, the expenses thereof to be paid out of the State insurance fund.

SEC. 10. Section 37 of the above-entitled act is hereby repealed.

Approved March 27, 1917.

NEW JERSEY.

ACTS OF 1917.

CHAPTER 178.-Workmen's compensation insurance.”

SECTION 1. This act shall be known as the workmen's compensation insurance aet.

Title..

ARTICLE I.

Insurance re

SEC. 2. Any employer, except the State or a municipality, or county or school district, who by agreement, express or implied, quired. is now or hereafter becomes subject to the provisions of section two of an act entitled "An act prescribing the liability of an employer to make compensation for injuries received by an employee in the course of employment, establishing an elective schedule of compensation and regulating procedure for the determination of liability and compensation thereunder," approved April fourth, one thousand nine hundred and eleven, and the amendments thereof and supplements thereto, hereinafter referred to as the workmen's compensation act, as therein provided, shall forthwith make sufficient provision for the complete payment of any obligation which he may incur to any injured employee or his dependents under the provisions of section two of said workInen's compensation act, by one of the following methods, as hereinafter set forth in sections three and four of this act; and he shall, upon demand, file with the commissioner of banking and insurance proof in such forms as hereinafter set forth. Any corporation, firm, or person, refusing or failing to comply shall, for each offense, be liable to a penalty of fifty dollars, to be recovered in an action of debt, brought by the commissioner of banking and insurance, in the name of the State of New Jersey. Each failure to comply shall be regarded as a separate offense.

Self-insur

SEC. 3. Providing the employer can reasonably satisfy the commissioner of banking and insurance as to the permanence and ance. financial standing of his business, he may carry his own liability insurance. An employer desiring to be exempt from insuring the whole or any part of his liability for compensation shall make application to the commissioner of banking and insurance showing his financial ability to pay such compensation, whereupon the commissioner of banking and insurance, if satisfied of the applicant's financial ability, shall by written order make such exemption. The commissioner of banking and insurance may, from time to time, require further statements of the financial ability of such employer, and, if at any time in the opinion of the commissioner of banking and insurance such employer appear no longer able to pay compensation, the commissioner shall revoke his order granting exemption; in which case the employer shall immediately insure his liability in a mutual association or other insurance company. Any employer providing insurance according to the provisions of this section may, for his own protection, reinsure the whole or any part of his risk. Such contract of insurance shall operate only between the employer and his insurance carrier, and shall not be subject to any of the provisions of this act.

SEC. 4. Every employer not operating under section three of Stock, this act as hereinbefore set forth shall insure and keep insured companies. his liability in any stock company or mutual association au

45615°-Bull. 243-18-18

273

etc..

thorized to engage in workmen's compensation or employer's liability insurance in this State. If insurance be affected by either method mentioned in this section, said insurance company or mutual assocation shall file with the commissioner of banking and insurance a notice setting forth the name of such insurance company, its principal office in this State, together with a copy of the policy of insurance and copies of all endorsements attache ! and such other data in relation thereto as the commissioner of banking and insurance may require.

Failure to SEC. 5. Any employer who shall fail to provide the protection insure. prescribed in this act within ninety days after it becomes effecti.. shall be liable to a fine of not more than one dollar for each of his employees per day, not to exceed one hundred dollars per day for the period such failure shall continue, recoverable by the commissioner of banking and insurance in the name of the State of New Jersey, in an action of debt.

SEC. 6. Every employer who has complied with the provisions of this act shall post and maintain in a conspicuous place or places in and about his place or places of business, typewritten or printed notices stating the fact that he has secured the payment of compensation to his employees and their dependents in accordance with the provisions of this act, and shall name the company or companies insuring his liability, or shall state the fact that the employer has qualified before the commissioner of banking and insurance for the carrying of his own liability.

SEC. 7. No contract of insurance issued by a stock company or mutual association against liability arising under the said workmen's compensation act shall be canceled within the time limited in such contract for its expiration, until at least ten days after notice of cancellation of such contract on a date specified in such notice shall be filed in the office of the commissioner of banking and insurance, and also served on the employers, Such notice shall be served on the employer by delivering it to him or sending it by registered letter, addressed to the employer at his or. its last known place of business: Provided, That if the employer be a partnership, then such notice may be so given to any one of the partners, and if the employer be a corporation, then the notice may be given to the agent or any officer of the corporation upon whom legal process may be served.

SEC. 8. An employer securing the payment of compensation by any of the methods prescribed in section four of this act notwithstanding, shall be liable primarily for the payment of proper compensation for personal injuries or death sustained by his employees. The employer shall have recourse for the amount thereof against his insurance carrier. But the insurance carrier shall be directly liable to the injured employee, or his dependents, in event of the death, insolvency, bankruptcy or other proceedings, as a result of which the conduct of the employer's business may be and continue to be in the charge of an executor, administrator, receiver, trustee or assignee.

SEC. 9. Every contract of insurance covering the liability of an employer for compensation to injured employees or their de pendents, under the provisions of section two of the said workmen's compensation act, hereafter written by a stock company or a mutual association, shall provide, or be construed to provide. that it is made for the benefit of the several employees of the insured employer and their dependents, and that such contract may be enforced by any of such employees or their dependents, suing thereon in his or their names as though distinctly made party thereto.

SEC. 10. Every such contract shall further provide, or be construed to provide, that any injured employee or his dependents may enforce the provisions thereof to his or their benefit, either by agreement with the employer and the insurance carrier, In event that compensation be settled by agreement, or by joining the insurance carrier with the employer in his petition filed for the purpose of enforcing his claim for compensation, or by subse

quent application to the court of common pleas, upon the failure of the employer, for any reason, to make adequate and continuous compensation payments.

4

Effect of no

SEC. 11. Every such contract shall provide, or be construed to provide, that, as between the employee and the insurance carrier, tice the notice to or knowledge of the occurrence of the injury on the ployer. part of the employer shall be deemed notice or knowledge, as the case may be, on the part of the insurance carrier; that jurisdiction of the employer shall, for the purpose of this act, be jurisdiction of the insurance carrier, and that the insurance carrier shall in all things be bound by and subject to the orders, fndings, decisions or awards rendered against the employer for the payment of compensation.

to em

Death, in

SEC. 12. Every such contract shall provide, or be construed to provide, that, upon the death, insolvency or bankruptcy of the solvency, etc. insured employer, or upon his assignment for the benefit of creditors, the insurance carrier shall immediately become directly liable for all compensation payments due to any injured employee or his dependents by virtue of prior agreement or award until completion thereof, or that may thereafter become due during the period for which the requisite premiums have been paid by such employer.

SEC. 13. Nothing herein contained shall be held to apply to a contract for insurance between an insurance carrier and an employer who has provided self-insurance.

Self-insurers.

Limitations

SEC. 14. No policy of insurance against liability arising under this act shall contain any limitations of the liability of the insurer forbidden. to an amount less than that payable by the insured on account of the risk insured against under this act, nor shall any such policy contain any limitation of the total liability of the insurer because of injuries to two or more persons in a single accident, nor shall any such policy of insurance or any indorsement thereon insure the employer against any liability whatsoever other than liability arising under this act, nor shall any actions be maintained for the collection of premiums on any policy violating this act; but a policy may be issued to an employer insuring him against his liability under this act upon any particular business, plant, or employment carried on by him, provided that all other businesses plans, or employments carried on by the same employer are insured or exempted as provided for in this act.

Classifications, etc., to

SEC. 15. Every insurance company or mutual association which insures employers against liability for compensation under this be filed. act shall file with the commissioner of banking and insurance its classifications of risks and premiums and rules pertaining thereto, together with the basis rate and system of merit or schedule rating, which system of merit or schedule rating shall be applied as hereinafter provided. Neither classifications nor risks, rules pertaining thereto, basis rates, nor system of merit or schedule rating shall take effect until the commissioner of banking and insurance shall have approved the classifications, rules, basis rates, and system of merit or schedule rating, as reasonable and adequate for the risks to which they respectively apply. The commissioner of banking and insurance may withdraw his approval of any classification, rule, basis rate, or system of merit or schedule rating if he shall find that such classification, rule, rate or system of merit or schedule rating is unreasonable or inadequate for the risk to which they respectively apply. To secure the impartial application of the approved classifications, rules, rates, or system of merit or schedule rating, the commissioner of banking and insurance is hereby authorized to create, organize, and supervise such rate, and inspection bureau or bureaus with such jurisdiction under his supervision as hereinafter provided. No insurance company or mutual association writing workmen's compensation or employer's liability insurance in this State under this act shall issue, renew, or carry any insurance for compensation under this act, except in accordance with the classifications, rules, basis rates, and system of merit or schedule rating approved

Rating and

reau.

by the commissioner of banking and insurance as aforesaid and applied by the rating and inspection bureau or bureaus: Provided, however, That any departure from the basis rate filed with and approved by the commissioner of banking and insurance on account of the application of a system of merit or schedule rating approved by the commissioner of banking and insurance shall be clearly set forth in the insurance contract or indorsements attached thereto.

ARTICLE II.

SECTION 1. There is hereby created under the supervision of the inspection bu- commissioner of banking and insurance, in order to carry out the purposes of this act, a bureau to be known as the Compensation Rating and Inspection Bureau of New Jersey, with the following objects, functions and sources of income:

(a) To maintain rules, regulations and premium rates for workmen's compensation insurance and equitably adjust the same, as far as practicable, to the hazard of individual risks, by inspec tion by the bureau.

(b) To adopt means for assuring uniform and accurate audit of pay rolls on policies by pay-roll auditors, appointed by the bureau under the supervision of the Compensation Rating and Inspection Bureau of New Jersey, with the approval of the commissioner of banking and insurance.

(c) To furnish upon request of any employer in the State of New Jersey or to any member of the Compensation Rating and Inspection Bureau of New Jersey, upon whose risk a compensation rate has been promulgated, information as to such rating, including the method of its computation, and to encourage employers to reduce the number and severity of accidents by offering reduced premium rates for improved working conditions under such uniform system of merit or schedule rating as may be approved by the commissioner of banking and insurance of the State of New Jersey.

Companies to SEC. 2. Before the commissioner of banking and insurance shall become mem- grant permission to any mutual association or stock company to bers. write compensation or liability insurance in this State, it shall be a requisite that they shall become members of the Compensation Rating and Inspection Bureau of New Jersey.

Rules.

Chairman.

Officers.

Actuary.

(a) Each member of the compensation rating and inspection bureau writing the workmen's compensation or liability insurance in the State of New Jersey shall, as a requisite thereto, be repre sented in the aforesaid bureau and shall be entitled to one representative and one vote in the administration of the affairs of the bureau.

(b) The bureau when created shall adopt such rules and regulations for its procedure and provide such income as may be necessary for its maintenance and operation.

(c) The commissioner of banking and insurance of the State of New Jersey shall appoint a special deputy to be ex officio chairman of the Compensation Rating and Inspection Bureau of New Jersey; in his absence or inability to serve, such further person as designated by the commissioner of banking and insurance shall preside in his stead.

(d) All officers, members of committees and employees of the Compensation Rating and Inspection Bureau of New Jersey shall be subject to the approval and ratification of the commissioner of banking and insurance.

SEC. 3. In order to carry into effect the object of this act, the commissioner of banking and insurance is authorized to employ an actuary and such additional assistance in his department as is necessary, and fix their compensation, and the commissioner of banking and insurance is hereby authorized to compel the production of all books, data, papers, and records relating to, or bearing upon such data as is necessary for the actuary to compile statistics for the purpose of determining the pure cost of workmen's compensation insurance in New Jersey, and this information