ALBERT C. RITCHIE, GOVERNOR 1103

a number of employees as five hundred shall be discretionary
with the State Industrial Accident Commission, which shall
withhold its approval of any such scheme for the insurance
of a smaller number than two thousand employees unless the
financial plan of the scheme is especially strong, or the risk
or hazard is exceptionally low.

If the State Industrial Accident Commission shall at any
time find that the scheme no longer fulfills the requirements
of this section, or is not fairly administered, or other valid and
substantial reasons therefor exist, it shall withdraw its ap-
proval and so notify the State Insurance Commissioner, who
shall revoke the license of such scheme. When such a license
is revoked or expires, any moneys or securities held for the
purposes of this scheme, shall, after due provision has been
made to discharge the liabilities already accrued, be disposed
of or distributed as may be arranged between the employer
and his employees, or as may be determined by the Commis-
sion, or in the event of a difference of opinion, according to
the rights of the parties.

Where such an approved or certified scheme of compensa-
tion, benefit, or insurance is in effect the employer shall answer
all inquiries in regard thereto that may be required by the
State Industrial Accident Commission.

154T. Any person or corporation violating the provisions
of this Act shall be guilty of a misdemeanor, and upon con-
viction, shall be punished by a fine of not less than fifty dol-
lars, or more than five hundred dollars, and the State Insur-
ance Commissioner shall have power to revoke the license of
any such person or corporation.

154U. All laws or parts of laws in conflict with the provi-
sions of this Act, so far as companies organized or admitted
under this Act are concerned, are hereby repealed in so far
as they are so inconsistent; provided, however, that mutual fire
insurance companies organized prior to the first day of Janu-
ary in the year nineteen hundred and sixteen and now law-
fully doing business upon the plan of taking deposit notes
for a percentage of the amount insured by its policies, and
making a call or assessment thereon for expenses and for the
payment of losses only after such losses are incurred, may con-
tinue such system of business, and such deposit notes shall con-
stitute the entire liability of their members.