/ > \ PI KFP Its \^o3 OJnrnpU 2Iam i>rljonl IGibrary INSURANCE LAWS Cornell University Library KFP 185.A3 1903 ^"""924 024 769 261 PENNSYLVANIA j , COMPIL,Bp BY • ISRAEL W. buRHAM, InSUHANCE COMMISSIONEK. 1003. WM. STAJSTLEY RAY, STATE PRINTER OF PENNSYLVANIA. 1903. Cornell University Library The original of this book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/cletails/cu31924024769261 3 I'l V, t> '«' ^ a \ ^;L' INSURANCE LAWS PENNSYLVANIA. To be appointed. AN ACT To establish an Insurance Department. Section 1. Be it enacted, &c., That there is hereby established a distinct department, to be known as the uXd.""^°' "'*''''" Insurance Department, which shall be charged with the execution of the laws of this State in relation to insurance. Section 2. The chief offlcer of said department shall insurance com- be denominated the Insurance Commissioner of Penn- ™'=^'°°^"^- sylvania; he shall be appointed by the Governor, with the advice and consent of the Senate, within thirty days after the passage of this act, for the term of ^erm. three years, and until his successor is duly qualified, and shall receive the annual salary of three thousand salary, dollars: Provided, That the person first appointed Commissioner, under this act, shall enter upon the duties of his office on the first Monday of May next ; in case of a vacancy in said office by death, resignation vaoanacy. or otherwise, the Governor shall fill such vacancy for the unexpired balance of the term; he shall employ, from time to time, with the approval of the Governor, not exceeding, in addition to deputy, three clerks, to Deputy and discharge such duties as he shall assign them, whose compensation shall be paid them by the State Treas- surer, at the same rate and in the same manner as the clerks in the office of the Secretary of the Common- wealth; he shall appoint one of the said clerks to be his deputy, who shall perform the duties attached by law to the office of principal, during the absence or ina- bility of his principal, who shall receive an annual salary of eighteen hundred dollars, payable as afore- said ; within fifteen days from the date of his appoint- ment, the Commissioner shall take and subscribe the (3) eive''*seou?rty.°'"'' o^th of office prescribed by the Constitution, and file the same in the office of the Secretary of the Common- wealth, and shall also give to the Commonwealth a bond in the penalty of ten thousand dollars, with two securities, to be approved by the Governor, condi- tioned for the faithful discharge of the duties of his office. Insurance records, Sectiou 3. All boolis, papers, records and securities sfone? '° commia- whatever, in the office of the Auditor General, relating to the business of insurance shall, on demand, be de- livered and transferred to the Insurance Commis- sioner, and be and remain in his charge and custody. S?nld*him. ^' Section 4. There shall be assigned to the said Com- missioner, by the Commissioners of Public Buildings and Grounds, a suitable room or rooms for conducting the business of said department ; and the said Commis- sioner shall, from time to time, with the approval of To procure fumi- the Commissioncrs aforesaid, procure the necessary ture, stationery, etc. furniture, stationery, and other proper conveniences for the transaction of the said business, the expenses of which shall be paid on the certificate of the Com- missioner and the warrant of the Auditor General. D"ti«= Section 5. It shall be the duty of the Insurance Com- missioner — fxicutel "'''^ ^'■^ First. To see that all the laws of this State respect- ing insurance companies, and the agents thereof, are faithfully executed, and for this purpose he is hereby License agents. invested With all the powers now conferred by law upon the Auditor General in relation to the licensing ^ve "Sf^ies'^ ^'^ ^^ ^^ agents of foreign insurance companies ; to file in his office any charter of a company, now or hereafter required by law to be filed, and upon application to furnish a certified copy thereof. vaiue^oT'^poiiofis Secoud. He shall, as soon as practicable, in each companies" ""^ vear, Calculate, or cause to be calculated, the net value on the thirty-first day of December, of the previous year, of all the policies in force on that day in each life insurance company doing business in this State, or- ganized by authority of this State, and of every other life insurance company doing business in this State that shall fail to furnish him, as hereinafter provided, a certificate of the Insurance Commissioner of the State by whose authority the company was organized, or by the State in which it may elect to have its poli- cies valued and its deposit made, in case the company is chartered by the Government of the United States, giving the net value of all policies in force in the com- pany on the thirty-first day of December, of the pre- ceding year, which calculation of the net value of each policy shall be based upon the American Experience Basis ot caicuia- Table of Mortality, and four and one-half per cent, interest per annum : Provided, That when any life in- surance company shall have a cash capital of not less than five hundred thousand dollars, fully paid in and safely invested, the reserve to provide for the liabili- S^ain ^c^panies ties on all policies of such company not participating *° "^ computej. in the profits of the company, shall be computed by the American Experience Table of Mortality, with in- terest at not less than four and a half nor more than six per centum per annum, in the discretion of the Commissioner, and with reference to the rates of pre- mium charged by such company; the net value of a policy, at any time, shall be taken to be the single net ^^a' ^th| "^t^^ premium which will, at that time, effect the insurance, ^'^^'^ '° ''^• less the value at that time of the future net premiums called for by the table of mortality and rate of interest designated. (As amended by act of 9th May, 1889 P. L. 150.) Section 1. Be it enacted, &c., That for the year one thousand eight hundred and ninety, and each succeed- ing year, the Insurance Commissioner shall value the J^^?J°g^ toTa'iue policy obligations of all life insurance companies, the ^"uJiiy™^^*'™^ valuation of whose policies is required by the law of this State, on the net premium basis, according to the fiH'^ °' ™'"^" actuaries or combined experience table of mortality with interest at four per centum per annum. (As further amended by act of 19th March, 1903, P. L. 33.) Section 1. Be it enacted, &c.. That for the year one thousand nine hundred and three, and each succeeding ^^5^°^ °°™' year thereafter, the Insurance Commissioner shall value' the policy obligations issued after the first day of January, one thousand nine hundred and three, by all life insurance companies, the valuation of whose i^te's.^"™ °' ""'■ policies is required by the law of this State, on the net premium basis, according to the American Experience Table of Mortality, with interest at three and one-half per centum per annum: Provided, That any company may elect to have its policy obligations valued at a lower rate of interest. Duties of Commis- sioner on finding condition of life company below standard of legal safety. To see that com- panies have cer- tain amount In safe securities. To accept valua- tions by commis- sioners of other states when pro- erly made. Poreign companies to furnish certifi- cates. Failure to furnish same. Third. In case it is found that any life insurance pany doing business in this State, has not on hand the net value of all its policies in force, after all other debts of the company and claims against it, exclusive of capital stock, have been provided for, it shall be the duty of the Insurance Commissioner to publish the fact that the then existing condition of the affairs of the company is below the standard of legal safety es- tablished by this State, and he shall require the com- pany at once to cease doing new business, and he shall immediately institute proceedings to determine what further shall be done in the case; and it is hereby made the duty of the Insurance Commissioner, after having determined, as above, the amount of the net value of all the policies in force, to see that the com- pany has that amount in safe legal securities, after all its other debts and claims against it, exclusive of capital stock, have been provided for. Fourth. He shall accept the valuations made by the Insurance Commissioner of the State, under whose au- thority a life insurance company was organized, when such valuations have been properly made on sound and recognized principles and legal basis as above: Provided, The company shall furnish to the Insurance Commissioner of this State, on or before the first day of March, in each and every year, a certificate from the Insurance Commissioner of such State, setting forth the value, calculated on the data designated above, of all the policies in force in the company on the previous thirty-first day of December, and stating that after all the other debts of the company and claims against it at that time were provided for^ the company had, in safe securities, an amount equal to the net value of all its policies in force, and that said company is entitled to do business in its own State; and every life insurance company doing business in this State during the year for which the statement is made, that fails promptly to furnish the certificate aforesaid, shall be required to make full detailed lists of policies and securities to the Insurance Commis- sioner of this State, and shall be liable for all charges and expenses consequent upon not having furnished said certificate. Fifth. For every company doing fire insurance busi- ^uranle^'r^erve"'"' ness in this State, he shall calculate the re-insurance ^^a^^'^^'ill^com.- reserve for unexpired fire risks, by taking fifty per p^"'^- centum of the premiums received on all unexpired risks that have less than one year to run, and a pro- rata on all premiums received on risks that have more than one year to run; and in marine and inland in- JJsurano^"'* '"''^"* surance he shall charge all the premiums received on unexpired risks as a re-insurance reserve. Sixth. Having charged against the company the re- j^^" ?o"make™?^' insurance reserve, as above determined, for fire, inland S^kin^ certain and marine insurance, and adding thereto all other °"*^' debts and claims against the company, he shall, in case he finds the capital stock of the company impaired to the extent of twenty per centum, give notice to the company to make good its whole capital stock within sixty days; and if this is not done, he shall require the ^^^^ f°^^ *°^ge company to cease to do new business within this State, ^f^f "to!' ''"^'' and shall thereupon, in case the company is organized under the authority of this State, immediately insti- tute legal proceedings, as required in this act, to de- termine what further shall be done in this case. Any company receiving the aforesaid notice of the Insur- ance Commissioner, to make good its whole capital stock within sixty days, shall forthwith call upon its stockholders for such amounts as will make its capital faiiVoTSountl" equal to the amount fixed by the charter of said com- "•°'" stockhowers. pany; and in case any stockholder of such company shall neglect or refuse to pay the amount so called for, after notice personally given or by advertisement in such time and manner as the said Commissioner shall approve, it shall be lawful for the said company to require the return of the original certificate of stock held by such stockholder, and in lieu thereof to issue J^rtmSe^s "n^cer- new certificates for such number of shares as the said *'^'" "^^^^ stockholder may be entitled to in the proportion that the ascertained value of the funds of the said com- pany may be found to bear to the original capital of the said company; the value of such shares for which new certificates shall be issued to be ascertained under how value of shares to be as- the direction of the said Commissioner, and the com- certainea. pany paying for the fractional parts of shares ; and it shall be lawful for the directors of such company to create new stock and dispose of the same, and to issue 8 New Stock. Commissioner may permit re- duction of capital stock. To examine affairs of life companies notified to cease doing new busi- ness. May permit con- tinuance of busi- ness in certain case. To notify Attor- ney General when companies are be- lieved to be Insol- vent, etc. new certificates therefor to any amount sufficient to make up the original capital of the company. When- ever the capital stock of any joint-stock fire or marine insurance company of this State becomes impaired, the Commissioner may, in his discretion, permit the said company to reduce its capital stock and the par value of its shares in proportion to the extent of im- pairment: Provided, That in fixing such reduced capital no sum exceeding twenty-five thousand dollars shall be deducted from the assets and property on hand, which shall be retained as surplus assets: And provided, That no part of such assets and property shall be distributed to the stockholders : And provided further. That the capital stock shall not be reduced to an amount less than that required by law for the or- ganization of the company. Seventh. It shall be the duty of the Insurance Com- missioner after he has notified a life insurance com- pany, organized under authority of this State, to cease doing new business until the net value of its policies in force is equal to that called for by the standard of safety established by the State, at once to cause a rigid examination in regard to all the affairs of such company; in case it shall appear that there is no fraud or gross incompetency or recklessness shown to exist in the management, he may, upon publishing the facts in the case, permit such company to continue in charge of its business for one year : Provided, There is, in his opinion, reason to believe that the company may eventually be able to re-establish the legal net value of all its policies in force. At the end of the year named above, he may renew the permission, in case, on examination, he is satisfied that the company is likely to retrieve its affairs. Eighth. Whenever the Insurance Commissioner shall have reason to believe that any insurance com- pany of this State is insolvent or fraudulently con- ducted, or that its assets are not sufficient for carrying on the business of the same, or during any non-compli- ance with the provisions of this act, he shall communi- cate the fact to the Attorney General, whose duty it shall then become to apply to the Supreme Court or the district court, or any court of common pleas in this Commonwealth, or in vacation to any of the judges business. Proceedings th'ire- on. thereof, for any order requiring said company to show 4* wpfy t?oourf cause why their business should not be closed; and plni°ef to "dose"' the court or judge, as the case may be, shall there- upon hear the allegations and proofs of the respective parties, or appoint some suitable person as examiner to perform such duty and report upon the facts to said court or judge; if it appears to the satisfaction of said court or judge, that such company is insolvent, or that the interests of the public so require, the said court or judge shall decree a dissolution of such cor- poration and a distribution of its effects; but in case it shall appear to said court or judge, that said corpo- ration is able to comply with the provisions of this act, and that it is not insolvent, a decree shall be entered annulling the act of the Commissioner in the premises and authorizing such company to resume business. Ninth. The Insurance Commissioner shall publish ^° |"^fnation's* the result of his examination of the affairs of any com- pany, whenever he deems it for the interest of the pub- lic so to do, in one or more publications of this State; suspend the entire business of any company of this suspend business ^ "^ -"^^ *' of companies for State, and the business within this State of any other <="t^'° '=^^^=- company, during its non-compliance with any provi- sions of this act, or whenever its assets appear to him insufficient to justify its continuance in business, by suspending or revoking the certificate granted by him ; report to the Attorney General any violation of fj^\°^ violations law relative to insurance companies, their officers or agents; furnish to the companies the necessary blank forms for the statements required; preserve in a permanent form a full record of his proceedings and proceedings. concise statement of the condition of each company or agency visited or examined; at the request of any person, and on payment of the fee, to give certified ^p™s^^of°recifrdl copies of any record in his office, when he deems it not prejudicial to the public interest; report annually uire?"^' '° ^^^'^"'" to the legislature the receipts and expenses of his de- partment for the year, his official acts, the condition of companies doing business in this State, and such other information as will exhibit the affairs of his depart- ment; adopt and renew from time to time, with the approval of the Governor, a seal of office, an impres- ^'^°'^^ ^^^'' sion of which shall be. filed in the office of the Secre- tarv of the Commonwealth ; and it shall be his duty to Furnish blanks. 10 Forbid Are and marine companies to Insure lives. May require ac- cess to records of companies. May examine per- sons under oath. Visit offices of foreign companies. Revoke certifi- cates. Institute suits, etc. May employ actu- ary to make valu- ation of life poli- cies. Fees to be paid by companies. see that no company is permitted to enter into new contract to insure lives in this State, who continue to do fire, marine or inland insurance business. Tenth. The Insurance Commissioner, for the pur- poses of examination authorized by this act, is hereby empowered, either in person or by one or more ex- aminers by him commissioned in writing, to require free access to all books and papers within this State of any insurance company, or the agents thereof, do- ing business within this State; to summon and ex- amine any person being within this State, under oath, which he or any examiner may administer, relative to the affairs and condition of any company; for probable cause to visit at its principal office, wherever it may be, any insurance company not of a state in which the substantial provisions of this act shall be enacted, and doing business in this State, for the purpose of in- vestigating its affairs and condition, and to revoke its certificate in this State granted as hereinafter de- scribed, if it does not permit an examination; to re- voke or modify any certificate of authority, when any conditions prescribed by law for granting it no longer exist. The Insurance Commissioner is hereby, em- powered to institute suits and prosecutions, either by the Attorney General or such other attorney as the Commissioner may designate, for any violation of this act; and the Commissioner shall be made a party to any proceedings instituted for the purpose of closing up the affairs of any company, when the same shall not be in the name of the Commonwealth. Section 6. The Commissioner may employ an actu- ary to make the valuation of life policies, at the com- pensation of not exceeding three cents for each thou- sand dollars of insurance, to be paid by the company for which the valuation is made; and there shall be paid by every company to which this act applies, the following fees towards defraying the expenses of en- forcing its provisions : For filing certified copy of char- ter, twenty-five dollars; for filing the annual state- ment or certificate in lieu thereof, twenty dollars; for each certificate of authority and certified copy thereof, two dollars ; for every copy of any paper filed in the department, the sum of twenty cents per folio, and for affixing the oflBcial seal to such copy and 11 certifying the same, one dollar; for ofiflcial examina- tions of companies under this act the actual expenses incurred. Section 7. The Insurance Commissioner shall, on or commissioner to ' report and pay before the tenth day of each month, make report to the "^er fees. Auditor General, showing the entire amount of fees received by him during the month preceding, and pay over the same to the State Treasurer; and in case the necessary expenses of said department exceed the amount of fees collected under this act, exclusive of the tax upon premiums, the excess of such expense Excess of expen- ^ ^ ' ■*■ ses to be assessed shall be annually assessed by the Commissioner, in °^ companies. just proportion, upon all the insurance companies do- ing business in this State, and the Commissioner is empowered to collect such assessments and pay the St^'^expenses.^"^^" same into the State Treasury; and all the necessary expenses of the Commissioner in the execution of this act shall be paid by the State Treasurer upon his cer- tificate and the warrant of Auditor General, out of the fund thus created. Section 8. Within ninety days after the first Mon- Sned' copies "o? day of May next, it shall be the duty of every insur- '=''^'^'^''®' ^'=- ance company of this State to file with the Commis- sioner a certified copy of its charter, together with a certificate, stating the time of its organization, the lo- cation of its principal place of business and the names and residence of its ofScers; and the Commissioner shall proceed, as soon as practicable thereafter, to in- stitute an examination into its affairs, in accordance with the provisions of this act; and any company fail- ing to comply with the requirements of this section to "ompiy wuh""* shall be subject to a fine of one hundred dollars for each month's delay, to be collected as other fines and penalties under this act. Section 9. It shall be unlawful for any person, com- b^Jin^e^g' p"ohfbit- pany or corporation, to negotiate or solicit within this coni'piiea wfth^ State any contract of insurance, or to effect an insur- ance or insurances, or pretend to effect the same, or to receive and transmit any offer or offers of insurance, or receive or deliver a policy or policies of insurance, or in any manner to aid in the transaction of the busi ness of insurance without complying fully with the provisions of this act. 12 Section 10. No person shall act as agent or solicitor in this State of any insurance company of another fo'iioUOT°'o£*!OTeign State, or foreign government, in any manner whatever SurSnui^acT'i's relating to risks, until the provisions of this act have complied with. jjggjj complied with on the part of the company or as- sociation, and there has been granted to said company or association, by the Commissioner, a certificate of authority, showing that the company or association is authorized to transact business in this State; and it shall be the duty of every such company or associa- tion, authorized to transact business in this State, to mak'e repo^rt°and*° "lake rcport to the Commissioner in the month of pay tax. January of each year, under oath of the president or secretary thereof, showing the entire amount of pre- miums of every character and description received by said company or association in this State, during the year or fraction of a year ending with the thirty-first day of December preceding, whether said premiums were received in money or in the form of notes, credits or any other substitute for money, and pay into the State Treasury a tax of three per centum upon said premiums; and the Commissioner shall not have Certificate not to power to grant a renewal of the certificate of said be renewed until ^ ^ tax is paid. company or association until the tax aforesaid is paid into the State Treasury. Section 11. (Act of June 28, 1895, P. L. 408.) Pennsylvania in- That hereafter it shall be the duty of the president, surance companies »' ^ ' AuaTtOT*' Gmerli.'" secretary or other proper oflScer of each and every in- surance company or association, incorporated by or under any law of this Commonwealth, except com- panies doing business upon the purely mutual plan without any capital stock or accumulated reserve, and companSs"ex- pui'cly mutual bencficial associations whose funds for the benefit of members, their families or heirs, are made up entirely of the weekly or monthly contribu- tions of their members and the accumulated interest thereon, to make report in writing to the Auditor Gen- eral, semi-annually, upon the first days of July and January in each year, setting forth the entire amount of premiums and assessments received by such com- pany or association during the preceding six months, whether said premiums and assessments were re- ceived in moEOT or in the form of notes, credits or other snb.'^titntes for money; and every such company 13 or association shall pay into the State Treasury, semi- annually, on the last days of January and July, in ad- dition to any other taxes to which it may be liable under the first and twenty-first sections of this act, a tax of eight mills on the dollar upon the gross amount of said premiums and assessments received from business transacted within this Commonwealth: Provided, That said report shall be made under oath u^'oath:* '"'"'^ or affirmation, and it shall be the duty of the account- ing oflflcers of the Commonwealth to add ten per centum to the account of any company or association whose ofiicers shall neglect or refuse for a period of penalty for neg- lect thirty days, to make said report or to pay into the State Treasury the tax imposed by this section : And Tax on premiums of companies of provided further, That hereafter the annual tax upon other states ana countries. premiums of insurance companies of other states or foreign governments shall be at the rate of two per centum upon the gross premiums of every character and description received from business done within this Commonwealth within the entire calendar year preceding. On and after the first day of January, one thousand when acts shaii •' ■" go Into effect. eight hundred and ninety-six, and annually thereafter, there shall be paid by the State Treasurer to the treasurers of the several cities and boroughs within Distribution of the Commonwealth, one-half of the net amount re- ceived from the two per centum tax paid upon pre- miums by foreign fire insurance companies. The amount to be paid to each of the treasurers of the several cities and boroughs, shall be based upon the g§^^^ °* 'J'^''''*'"- return of said two per centum tax upon premiums received from foreign fire insurance companies doing business within the said cities and boroughs as shown by the Insurance Commissioner's report. Warrants how payawe. for the above purposes shall be drawn by the Auditor General, payable to the treasurers of the several cities and boroughs in accordance with this act whenever there are sufBicient funds in the State Treasury to pay the same. Section 11. Companies to which certificates of an- to certify names '^ ^ of agents. thorlty are issued, as provided in the preceding sec- tion, shall, from time to time, certify to the Commis- sioner the names of the agents appointed by them to solicit risks in this State; and no such agent shall transact business until he has procured from the Com- 14 Agents to procure certificates. Companies to transmit annual Ltatements to In- surance Commis- sioner. Contents of State- ments made by foreign compan- ies. Insurance Com- missioner may re- quire at any time statements on particular points. Business to stop on neglect to file statement. Penalty for neg- lect. Foreign fire in- surance company not required to re- port its foreign business and as- sets. missioner a certificate, showing that the company has complied with the requirements of this act, and that the person named in said certificate has been duly ap- pointed its agent. Section 12. (As amended by act of June 23, 1885, P. L. 134.) Every insurance company, including individuals, partnerships, joint-stock associations and corpora- tions conducting any branch of insurance business in this State, must transmit to the Insurance Commis- sioner a statement of its condition and business, for the year ending on the preceding thirty-first day of December, which statement shall be rendered on the first day of January following, or within sixty days thereafter, except that foreign companies shall trans- mit their statements of business, other than that done in the United States, prior to the following first day of July following, or within sixty days thereafter, which statements must be in form, and state the par- ticulars required by the blanks prescribed by the Com- missioner; and the Insurance Commissioner may re- quire, at any time, statements from any company do- ing business within the State, or from any of its of- ficers or agents, on such points as he deems necessary and proper to elicit a full exhibit of its business and standing, all of which statements herein required must be verified by the signatures and oaths of the president or vice president, with those of the secretary or actuary. No company, having neglected to file a statement required of it within the time and manner prescribed, shall do any new business, after notifica- tion by the Insurance Commissioner, while such neg- lect continues; and any company or association neg- lecting to make and transmit any statement required shall forfeit one hundred dollars for each day's neg- lect: Provided, That any foreign fire insurance com- pany, doing business in this Commonwealth, may, at its option, include in its statements to the Insurance Commissioner its foreign business and assets, but shall be required to return only the business done in the United States and the assets held by and for it within the United States for the protection of policy- holders therein. Section 13. (As amended by act of June 20, 1883, P. L. 134.) 15 No insurance company, not of this State, nor its five''to°sei^fcro£ agents, shall do business in this State until he has filed 'oZtTni°l '""^^^ with the Insurance Commissioner of this State a writ- ten stipulation, duly authenticated by the company, agreeing that any legal process affecting the company served on the Insurance Commissioner or the party designated by him, or the agent specified by the com- pany to receive service of process for said company, shall have the same effect as if served personally on the company within this State, and if such company should cease to maintain such agent in this State so designated, such process may thereafter be served on the Insurance Commissioner; but so long as any lia- bility of the stipulating company to any resident of this State continues, such stipulation cannot be re- voked or modified, except that a new one may be sub- stituted, so as to require or dispense with the service at the oflSce of the said company within this State, and that such service of process according to this stipula- tion shall be suflflcient personal service on the com- pany. The term process shall be construed to mean and include any and every writ, rule, order^ notice, or decree, including any process of execution that may issue in or upon any action, suit, or legal proceeding to which said company may be a party by themselves, or jointly with others, whether the same shall arise upon a policy of insurance or otherwise, by or in an-y court of this Commonwealth having jurisdiction of the subject-matter in controversy, and all writs, rules, orders, notices, or decrees aforesaid, shall be directed to the sheriff, constable, or other officer authorized by law to serve similar writs, of the county wherein the O" whom service ^ "^ can D6 naa. same shall be issued, who is hereby authorized to serve the same on any and every person or persons, body politic or corporate, named in said process with said company, either as plaintiff, defendant, or otherwise, or who may be impleaded in said action, suit or pro- ceeding with said company found in said county, and either before or after the service on the person or per- sons, body politic or corporate, found in said county aforesaid, as may be directed by the plaintiff or per- son issuing said process or his attorney, and in the absence of such direction as shall be most convenient, the oflQcer to whom said process may be directed, shall, by writing indorsed on or attached to said process. 16 Penalty for trans- acting business without authority. Paying, receiving, or forwarding pre- miums, or helping or aiding in plac- ing insurance In unlicensed com- panies made a misdemeanor. deputize the sheriff, constable or other ofQcer of the county where the State agent designated by any com- pany, as provided by law to receive service of process for said company may reside, to serve the same on him; and in default of an agent appointed by the com- pany as aforesaid, then the officer so charged with the service of said process, shall, in like manner, depu- tize the sheriff, constable, or other officer aforesaid of the county where the agent, if any there be, named by the Insurance Commissioner, may reside, to serve the same on him; and in default of such agent named by the Insurance Commissioner as aforesaid, then in like manner to deputize the sheriff, constable or other officer as aforesaid of the county where oflQce of the Insurance Commissioner may be located, to serve the same upon him, and each and every service so made, shall have the same force and effect to all intents and purposes as personal service on said company, in the county where said process issued; and the fees of the officers serving said process shall be the same as are allowed by law for services in similar cases, with mile- age allowed by law in such cases, the distance to be computed from the residence of the officer serving or executing the same, and no further, and all necessary postage paid by either of said officers shall be charged for as costs in the case. Section 14. (As amended by act of April 26, 1887, P. L. 62.) That any insurance company or association not of this State, doing business without authority agreeably to the provisions of this act, shall forfeit and pay to the Commonwealth the sum of five hundred dollars for each month, or fraction thereof, during each month, on and after the passage of this act, which such ille- gal business was transacted, and be prohibited from doing business in this State until such fines are fully paid. And that any person or persons, or any agent, officer or member of any corporation paying, or receiv- ing, or forwarding any premiums, applications for in- surance, or in any manner securing, helping, or aidng in the jilacing of any insurance, or affecting nny con- tracts of insurance upon property within this Com- monwealth, directly or indirectly, with any insurance company or association not of this State, and which has not been authorized to do business in this State 17 under the terms of this act, shall be guilty of a mis- demeanor, and, on conviction thereof, shall be sen- tenced to a fine of not less than one hundred dollars nor more than one thousand dollars, and upon convic- tion of a second offense shall be sentenced to pay a like fine and undergo an imprisonment not exceeding one year, or either, in the discretion of the court: Provid- ed however. That in the event of a larger line of insur- ance being required on any risk than that which the home companies and insurance companies or associa- tions not of this State, but authorized to do business within this State, shall be willing to carry, that then the person or corporation desiring such insurance shall file a sworn statement to that effect with the In- surance Commissioner, and thereupon the said Insur- ance Commissioner! first being satisfied of the truth commissioner au- * ^ tnonzed to issue thereof, shall issue a license to the person or corpora- lints^fhl^Tifome'"^ tion making such application, and thereupon it shall complmerSS^ be lawful for the person or corporation, so licensed as ^'"'"^ '° '^^"'^^ aforesaid, to procure such excess line of insurance be- yond that which the home and authorized foreign com- panies shall be willing to carry as aforesaid, from un- authorized insurance companies or associations not of this State. Every person or corporation so licensed shall, at the time of expiration of said license, make a report to the Insurance Commissioner of all insurance effected in pursuance of said license, and pay a tax of '^^• six per centum on the gross premiums thereon, which said tax shall accompany said returns. The Insurance Commissioner shall charge and collect for every li- cense so issued a fee of five dollars. Every such li- ^ee. cense, so issued as aforesaid, shall expire at the ex- piration of three months from the date of issuing the ^*™" same. Section 15. The taxes, fines and penalties provided in this act shall, in case of non-payment, after notice from the Commissioner, be collected as taxes upon fnT praafties"t?' corporations or individuals are now collected by law, "^ <:o"ectea. and for this purpose the Insurance Commissioner shall have all the powers now conferred by law upon the Auditor General in the settlement of accounts, sub- ject, hoAvever, to the approval of the State Treasurer, and to the right of appeal as in other cases. fees or taxes. 18 ^y To foreign^"' Sectiofl 16. The provisions of this act shall not be companiea. applicable to insurance companies incorporated by other States, or by the United States, or by foreign governments, until from and after the first day of January, Anno Domini, one thousand eight hundred and seventy-four; nor shall it apply, excepting the Eighth section eighth section of this act, to fire insurance companies to certain com- of thls State Organized and conducted on the purely panlei. . j. mutual plan with premium notes as the basis of se- curity, and without capital stock, guaranty capital or accumulated reserve in lieu of capital stock, but the mutual companies aforesaid shall, at all times, be re- quired to answer such interrogatocies as the Insur- ance Commissioner may require, in order to ascertain their true character and condition, and for this pur- pose he may, at any time, institute an examination into their affairs, as in the case of companies subject to the general provisions of this act. t'^"impS'uoens"°* Sectlou 17. That it shall not be lawful for any city, county or municipality to impose or collect any li- cense fee or tax upon insurance companies or their agents, authorized to transact business under this act. (As amended by act of May 23, 1889, entitled an act providing for the incorporation and government of cities of the third class.) Article V, Section 2, Paragraph IV. — To levy and collect, for general revenue purposes, a license tax not exceeding one hundred dollars each, annually, on all auctioneers, contractors, druggists, hawkers, ped- dlers, produce or merchandise venders, bankers, brok- ers, pawnbrokers, merchants of all kinds, persons sell- ing or leasing goods upon installments, grocers, con- fectioners, butchers, restaurants, bowling alleys, bil- liard tables and other gaming tables, drays, hacks, carriages, omnibuses, carts, wagons, street railway cars and other vehicles used in the city for hire or pay, lumber dealers, including commission men and all per- sons who make a business of buying lumber for sale at wholesale or retail, furniture dealers, saddle or har- ness dealers, stationers, jcAvelcrs, livery or boarding stable keepers, real estate agents, agents of fire life or other insurance companies, market house com- panies, express companies or agencies, telegraph tele- phone, steam heating, gas, natural gas, water, electric light or power companies or agencies, or individuals License fees. 19 furnishing communication, light, heat or power by any of the means enumerated, and to regulate the col- lection of the same. Section 18. That an act to revise, amend and con- Act of Aprii u, ' 1868 repealed. solidate the several laws regulating the licensing of foreign insurance companies^ approved April eleventh, Anno Domini one thousand eight hundred and sixty- eight, is hereby repealed, said repeal to date from the first day of January, Anno Domini one thousand eight hundred and seventy-four, saving, however, to the Commonwealth the right to collect all taxes and fees accrued under said act. Approved— The 4th day of April, A. D. 1873. (P. L. 20.) J. F. HARTBANFT. A SUPPLEMENT To an act, entitled "An act to establish an Insurance Depart- ment," approved the fourth day of April, one thousand eight hundred and seventy-three, providing for the incorporation and regulation of insurance companies, and relating to in- surance agents and brokers and to foreign insurance com- panies. Section 1. Be it enacted, «&c., That any ten or more Jj^ji^'e"^?' persons, citizens of this Commonwealth, may associate """''^ ajithorized, in accordance with the provisions of this act and form an incorporated company for any of the folloiwing pur- poses, to wit: First. To make insurance, either upon the stock or Sne. ^""^ ""^^ '"^' mutual principle, against fire on all kinds of buildings, merchandise and other property, and to effect marine and inland insuran^ce on vessels, cargoes and freights, and on merchandise and other property in course of transportation. Second. To make insurance, either upon the stock or ^"«- mutual principle, upon the lives of individuals, and every insurance appertaining thereto or connected therewith, and to grant and purchase annuities. Third. As amended by act 9th July, 1897 (P. L. 239). To make insurance, either upon the stock or mutual biSiirr^. principle upon the health of individuals and against personal injury, disablement or death resulting from traveling or general accidents by land or water, or Acclden^, steam have been amended, 20 ' accidents resulting from the pursuit of any trade or business, and against injuries of every nature and description to persons or property, causing loss, dam- age or liability, and also against any unknown or con- tingent event or liability whatever, except the perils and risks enumerated in the firsts second and fourth paragraphs of this section. Fourth. To make insurance, either upon the stock Live stock. or mutual principle, upon the lives of horses, cattle and other live stock. Provided further. That whenever any existing com- STbe'^iSemed to P^^^! workiug uudcr the provisions of this act shall, by resolution of its board of directors, accept of the provisions of the third sub-division of this section of this act as part of the charter of said company, and a duly certified copy of such resolution shall have been filed in the office of the Insurance Commissioner, and said resolution shall have been approved by him, the charter of said company shall be deemed and taken to have been amended by the addition thereto of the third sub-division of this section, which shall have the same force and effect as if a part of the company's original charter constituting a supplement thereto. And any company organized under this act, or any company authorized to transact fidelity insurance busi- ness, incorporated prior to the act hereby amended, and having a paid up capital of not less than five hundred thousand dollars (|50O,000);, upon depositing with the Insurance Commissioner of this State the sum of two hundred thousand dollars ($200,000) in cash, or in se- curities which in his judgment are of that value, shall received a certificate from the said Insurance Commis- sioner which shall entitled it to transact business under one of the four sub-divisions of this section and also to re-insure the risks assumed by any policy or policies is- sued by any company or companies under any one of said sub-divisions, which business shall be subject to the provisions of the act approved April fourth, one thousand eight hundred and seventy-three, entitled "An act to establish an Insurance Department," and the several supplements thereto. All acts or parts of acts inconsistent herewith are hereby repealed. 21 Section 2. Such persons shall associate themselyes together, by articles of agreement in writing, for the purpose of forming an insurance company, which agreement shall specify the name by which the corpo- wimt to specify. ration shall be known, the class of insurance for the transaction of which it is constituted, the plan or prin- ciple upon which the business is to be conduoted, the plaice in which it is to be established or located, the amiount of its capital stock, if any, the general objects of the company, the proposed duration of the same, and the powers it proposes to have and exercise. Any name not previously in use in any existing company Name, may be adopted, but such name must clearly desig- nate the object and purposes of the company, and if a mutual company the word "mutual" must appear in the title thereof. The Insurance Commissioner may reject any name or title, when in Ms judgment it too closely resembles that of any existing company or is likely to mislead the public. Section 4. The subscribers to said articles of agree- Articles to te ac- ment shall acknowledge the same before some person forwarded t'p com- missioner. Election of ; offi- cers, i empowered to receive acknowledgment of deeds, and forward the same tO' the Insurance Commissioner, who shall, in case he approves of the title of the proposed to Ittom^ey' Gen- company, submit said articles of agreement to the At- torney General for examination, and if found by the Attorney General to be in accordance with the provi- , sions of this act, and not inconsistent with the con- . stitution of this State and of the United States, he He to (ertify same ' to Governor. /shall certify the same to the Governor, with his ap- proval indorsed thereon. Section 4. The subscribers to said articles of agree- ment shall choose from their number a president, a secretary, a treasurer, and such number of directors as they may deem advisable, who shall continue in office until the first annual meeting of the stockhold- ers, or insured, as the case may be, and until their successors are duly chosen and qualified as hereinafter provided. In case a joint-stock company is to be or- / ^^^^ ganized, they shall open books for the subscription of for subscriptions. stock in the company at such times and places as they shall deem convenient and proper, and shall keep the same open until the full amount specified in the cer- tificate is subscribed. In case a mutual company is to be organized for any of the purposes mentioned in the 22 And for applica- tion to insure. Shares in/ joint- stock companies. Paymei ti|re Forfeiture of par- tial payment. Certificates to Governor in cases of joint-stock companies. Approval of arti- cles of agreement. Letters patent. first or fourth paragraphs of the first section of this act, the subscribers to the articles of agreement shall open books to receive applications for insurance at convenient times and places, and keep the same open until applications for insurance have been obtained in sufiScient number and amount to comply -with the re- quirements of this act. Section 5. The capital stock of a joint-stock com- pany shall be divided into shares of not less than ten dollars each, payment of which shall be made in lawful money, ten per centum on each share at the time of subscribing, and the balance at such times as the com- pany may direct, not exceeding six months from the time of subscriptions; and the company may prescribe such rules with regard to forfeiture of partial pay- ments on subscriptions as they may deem advisable, which rules shall be binding upon subscribers, pro- vided they are made known at the time of subscrip- tion. Section 6. Whenever one-half of the capital stock mentioned in said articles of agreement shall have been subscribed, and twenty per centum on each share paid into the hands of the treasurer of the company, the president, treasurer, and a majority of the di- rectors of said company shall, under tlieir respective oaths or affirmations, make a certificate to the Gov- ernor, stating the number and par value of the shares of stock in said company, the names and residence of the subscribers, the number of shares subscribed by each, the amount paid in on each share, and the amount of money in the hands of the treasurer on ac- count of such payments, and where the same is de- posited. Upon the receipt of such certificate, the Gov- ernor shall, in case he approves of the articles of agreement certified to him as hereinbefore provided, endorse his approval thereon, and cause letters patent to issue erecting the subscribers to said articles of agreement and their associates into a body corporate into succession under the name designated in said articles of agreement, but they shall not have the power to engage in the business of insurance until they have otherwise complied with the provisions of this act. 23 Section 7. Whenever applications for insurance in CTMl-°i°n*raaM*lf^' the case of a mutual company mentioned in the first coSpamS"" or fourth paragraphs of the first section of this act have been obtained in sufficient number and amount, the president, treasurer, and a majority of the di- rectors of said company, shall, under their respective oaths or affirmations, make a certificate to the Gov- ernor, stating the names and residence of the persons applying for insurance in said company, and the amount agreed to be taken by each. Upon the receipt of such certificate, the Governor shall, in the same ^'"^'^' '^'^■ manner as is provided in the preceding section of this \ act, erect the subscribers to the articles of agreement \ and their associates into a body corporate, with suc- cession under the name designated in said articles of agreement, with power to engage immediately in the business of mutual insurance mentioned in the articles of agreement aforesaid. Section 8. Oompanies organized for the purpose of conducting business upon the mutual principle, as mentioned in either the second or third paragraphs of health ana 'acci- dent companies to the first section of this act, must have a guarantee tave a guarantee ° capital. capital before commencing business. If the purpose be to insure lives, said guarantee capital must be not less than two hundred thousand dollars, and if the . . , ^ ^ Amount of such purpose be to insure health and against accidents, said cap'tai- guarantee capital must be not less than one hundred thousand dollars, fifty per centum of which shall be paid in cash before commencing business. Said com- nlZ ° * °''s^°- panies shall be organized by articles of agreement, as hereinbefore prescribed, and the subsicribers to said articles of agreement shall open books and receive sub- scriptions to the guarantee capital, as provided in the case of joint-stock companies. As soon as the entire amount of said guarantee capital has been subscribed, and fifty per centum thereof paid in lawful money to the treasurer, and the subscribers' obligations given for the remaining fifty per centum thereof, the presi- dent, treasurer, and a majority of the directors, shall, under their respective oaths or affirmations, make a ^ • ■^ Certificate to Gov- oertiflcate to the Governor, stating the number and emor. par value of the shares of guarantee stock in said com- pany, the name and residence of the subscribers, the number of shares subscribed by each, the amount paid in on each share, the form of obligation taken for the 24 Letters patent. Articles of asso- ciation, witll pro- ceedings thereon, etc., to be record- ed. Certified copies, evidence. Certificates of stocit, wiien to is- sue. Transferable. Notice to Insur- ance Commis- sioner. He to examine as- sets of companies. And issue certifi- cate to commence business. What capital joint-stock flre, marine and Inland companies to have. unpaid moiety, the amount of money in the hands of the treasurer, and where the same is deposited. Upon the receipt of! said certificate, the Governor shall, in the same form and under the same conditions pre- scribed in this act for joint-stocli companies, erect said subscribers and their associates into a body corporate with succession. Section 9. The Secretary of the Commonwealth shall cause the articles of asisociation aforesaid, together with the proceedings had thereon, and the certificate to the Governor, after the approval of the Governor has been indorsed on said articles of association and letters patent have issued, to be recorded in a book kept for that purpose; and he shall return said articles of association to the company, who have the same re- corded in the recorder's office of the county in which said company is located; and certified copies of said records may be used in evidence for or against the company with the same effect as the original. Section 10. As soon as the whole amount of the cap- ital stock of a. joint-stock company, or fifty per centum of the guarantee capital of a mutual life or accident company, duly incorporated under this act, has been paid in, certificates shall be issued therefor to the per- sons entitled to the same, which certificates shall be transferable at any time upon the books of the com- pany; and the president or secretary of the company shall notify the Insurance Commissioner that the capi- tal of the company has been paid in, and that it is ready to commence business, whereupon the Insur- ance Commissioner shall, in person or by deputy, ex- amine the assets of the company, and in case he finds that it is possessed of money or assets invested in the manner hereinafter specified, equal to the amount of rts capital stock, lesis the necessary expenses of or- ganization, he shall issue to said company a certificate showing that it has been organized in accordance with the provisions of this act, and that it has the requisite amount of ca]iital for the transaction 'of business in the State, which certificate shall empower the com- pany to issue policies and otherwise do the business of insurance for which it was organized. Section 11, Joint-stock companies organized under this act for any of the purposes of insurance men- tioned in the first division of the first section shall 25 have a capital stock of not less than one hundred thou- sand dollars. Mutual companies, for any of the pur- S^af^ompLteT' poses aforesaid, may accept risks and issue policies '"^^ ^^'^^ '^^^^^' whenever applicatiouis be made for insurance to the amount of two hundred thousand dollars, and author- ity to commence business has been granted in the man- ner hereinbefore provided. Section 12. Joint-stock companies organized to in- ^nt-stSfk'ufe, sure lives, as specified in the second division of the alnt companies "to first section of this act, must hare a capital stock of at least three hundred thousand dollars. Joint-stock companies organized to insure health or against acci- __,^ dents as specified in the third paragraph of the first section of this act, must have a capital stock of at ; least one hundred thousand dollars. ■ - " ' Section 13. Joint-stock companies organized for any stMk^L'd certain of the purposes of insurance mentioned in the fourth ""'" companies, division 'of the first section of this act must have a cap- iat stock of at least one hundred thousand dollars, in- vested as required in this act for fire and marine com- panies. Mutual companies, organized for any of the ^af"ompan™s"' purposes mentioned in said division, may accept risks '^^^ '^^"^ policies. and issue policies upon complying with all the condi- tions hereinbefore prescribed for mutual fire insurance companies. Section 14. Anv companv organized under this act power to make by- '' ■■ laws, have seal, shall have power to make such by-laws as may be etc. deemed necessary for the government of its officers and the 'conduct of its affairs, and the same, when nec- essary, to alter and amend, and to make and have a common seal, and change and alter the same at their pleasure. Section 15. The annual meeting for the election of Annual election directors shall be held at such a time, in the month of January, as the by-laws of the company may direct; of the time and place of which meeting at least thirty days' previous notice shall be given to the .stock- holders^ by publication not less than three times, in at least two daily papers published in the city of Phila- delphia, if the eompany is located in said city, or by similar publications in case the company is located in the city of Pittsburgh, or in case the company is lo- cated elsewhere by like publication in daily or weekly papers published in the proper county; and at such annual meeting the stockholders or members shall 26 Votes. Special elections. Division and classlfleation of directors. FUllnir vacancies. elect, by ballot, not less than five nor more than thir- teen directors, to serve for one year and until their successors are duly chosen. At all elections for di- rectors in joint-stock companies created under this act, each share of stock, and in mutual fire companies, each member, shall be entitled to one vote subject to such regulations with regard to voting by proxy as the by-laws of the company may prescribe; and if for any cause the stockholders shall fail to elect directors at any annual meeting, the directors may call a special meeting for that purpose on some subsequent day, of which notice shall be given as herein directed. (As amended by the act of 4th April, 1901, P. L. 64.) Be it enacted, &c., That whenever the stockholders or members of any insurance company^ incorporated under the provisions of the act, entitled "A supplement to an act, entitled 'An act to establish an Insurance Department,' approved the fourth day of April, one thousand eight hundred and seventy-three, providing for the incorporation and regulation of insurance com- panies, and relating to insurance agents and brokers and to foreign insurance companies," approved the first day of^ May, one thousand eight hun- dred and seventy-six, or incorporated under the provisions of any special law of this Common- wealth, and having accepted the provisions of the above mentioned act approved the first day of May, one thou- sand eight hundred and seventy-six, shall, at a meet- ing called for the purpose, decide by a majority vOte of those present either in person or by proxy, to elect a portion of their directors or managers for a term or terms longer than one year, it may and shall be lawful for such insurance company, at the next ensuing elec- tion^ to divide the directors or managers which are to be chosen into two, three or four classes, and to elect the first class to serve for the term of one year, and the second, third and fourth, to serve two, three and four years respectively, and at all ensuing elections of said insurance companies the stockholders or members shall only elect the number of directors or managers neces- sary to take the places of those whose terms of ofBce shall then expire, and such directors or managers shall be elected for the longest term for which any class may have been elected as hereinbefore provided. 27 In case a vacancy or vacancies shall happen in the number of said directors or managers, the board of di- rectors or managers shall choose and elect a proper person, or proper persons, to fill such vacancy or va- cancies during the remainder of the term or terms for which the person or persons whose death, resignation or withdrawal shall have been elected. In all cases in which any insurance company, as validating previ- af oresaid, shall have, by a majority vote of the stock- holders or members present at a meeting heretofore held, as aforesaid, directed such division and classifica- tion of its directors or managers, such classification, so directed^ and elections held thereunder, shall have like force and effect as if the same had been made after the passage of this act. Section 16. The directors shall choose, by ballot, a President. president from their own number, and shall fill all va- vacancies, cancies that may arise in the board or in the presi- dency thereof; and the board of directors, or a ma- Power of direc- jority of them, when statedly convened at the oflSce of *°'^ the company, or when convened after special notice given to each member of the board, shall be competent to exercise all the powers vested in them by law. They shall also have power to appoint and fix the salaries or compensation of a secretary and such other oflScers and agents as they may deem necessary for the proper transaction of the business of the company. Section 17. Policies of insurance made or entered Policies. into by the company, may be made either with or with- out the seal thereof, and they shall be subscribed by the president or such other officer as may be desig- nated by the directors for that purpose, and attested by the secretary, and when so subscribed and attested, shall be obligatory on the company. Section 18. It shall be unlawful for any fire or fire Sn^s^of n^e ana and marine insurance company, organized under this to^bTtaveSed"'^^ act, to invest its capital, or any part thereof, otherwise than in bonds and first mortgages on improved and unincumbered real estate, within the State of Penn- sylvania, worth fifty per centum more than the sum loaned thereon^ exclusive of buildings, unless such buildings are insured and the policy transferred to said company, or in ground rents, or bonds of the United States or of the State of Pennsylvania, or the bonds of any other State that may be par at the time 28 Payment and in- vestment of capi- tal of joint-stock life companies. Value of such in- vestments. How surplus may be Invested. Loans on mort- gages. Unautliorlzed loans. of the purchase thereof, or in the bonds of any county, city or municipality in the State authorized to be is- sued by law and upon which no default in interest has been made, or in the first mortgage bonds of solvent railroad corporations upon which no default in interest has been made, and to lend the same, or any part thereof, on the security of such bonds or evidences of indebtedness, and to change and re-invest the same as occasion may from time to time require; but any money over and above the capital stock of any such company, may be invested in the securities above- enumerated, or in the stock or other evidence of in- debtedness of any solvent dividend-paying corpora- tions created under the laws of this State or the United States, or loaned upon the pledge of the same, ex!cept their own stock: Provided^ That the current market value of such securities shall be at least twenty per centum more than the sum loaned thereon. Section 19. The whole capital of a joint-stock life in- surance company, organized under this act, shall be paid in and invested in bonds or notes of the United States, or in bonds of the State of Pennsylvania, or in iirst mortgages on improved and unincumbered real estate within this State, worth double the amount loaned thereon, exclusive of buildings, unless said buildings are insured and the policies transferred to the company, or in ground rents, or in bonds of any city or county of this State, authorized to be issued by law and upon which there has been no default in in- terest; and such company shall at all times maintain investments of the character above enumerated, which, in addition to the real estate it is authorized to hold under this act, shall be equal to the entire legal valuation of its outstanding policies and other liabili- ties; but any surplus over and above capital stock and other liabilities which it may accumulate in the course of business may be invested as is provided in this act for the investment of the surplus funds of fire insur- ance companies. Section 20. Not more than one-half its capital stock shall be loaned by any company, organized under this act, on mortgage of real estate, and not more than one- tenth of its capital shall be invested in a single mort- gage, nor shall any portion of the funds of the com- pany be loaned on personal security. If any invest- 29 ment or loan is made in. a manner not authorized by this act^ the directors making or authorizing the same shall be personally liable for any loss occasioned thereby. Section 21. No company organized under this act what real estats ^ •' ° may ba held. shall purchase, hold or convey real estate, except for the purpose and in the manner herein set forth, to wit : First. Such as shall be requisite for its convenient accommodation in the transaction of its business. Second. Such as shall have been mortgaged to it in good faith by way of security for loan previously con- tracted or for money due. Third. Such as shall have been conveyed to it in sat- isfaction of debts previously contracted in its legiti- mate business or for money due. Fourth. Such as shall have been purchased at sales upon judgments, decree or mortgages obtained, or made for such debts ; and it shall not be lawful for any such company to purchase, hold or convey real estate in any other case, or for any other purpose, and all such real estate as may be required as aforesaid, and which shall not be necessary for the accommodation of such company in the transaction of its business, shall be sold and disposed of within five years after such company shall have acquired title thereto. Section 22. Mutual companies organized for any of vestment oi guar- antee capital ot the purposes mentioned in either the second or third P""*"?! i"^, ^ ^ health and acci- divisions of the first section of this act, shall have fifty '*^'" companies. per centum of the guarantee capital paid in and in- vested, less the necessary expenses of organization, as provided in this act for joint-stock life insurance com- panies. Section 23. Every person subscribing to the guaran- fuSnte"fund to tee fund of any company organized under this act, shall *''"'* "'***• give to said company his note or obligation, in such form as the by-laws of the company may prescribe, for the unpaid moiety of the guarantee fund so subscribed, which note or obligation shall be liable to assessment or assessments from time to time, as may be deemed necessary by the directors of said company for the suc- cessful prosecution of its business; and such assess- the^lT^" ^ ments may be made to meet the losses, expenses, in- surance reserve, and other obligations of such com- pany, until the whole amount of such note or obligation shall be paid. All assessments shall be made pro rata 30 To receive Interest from company. Retirements and return of guaran- tee fund. Policies lor benefit of married women. upon, the entire amount of unpaid subscriptions, and the same shall be collected by . suit at law as other debts of like character are collectible. Section 24. The subscribers to the guarantee fund, or capital, of a mutual company incorporated for any of the purposes mentioned in either the second or third divisions of the first section of this act, shall be entitled to receive interest from such company, pay- able semi-annually, at such rate, not exceeding six per centum, as may be agreed upon at the time of sub- scribing: Provided, The net surplus over a requisite reservation for liabilities and contingencies is suffi- cient to pay the same, and if less than the sum orig- inally agreed on it shall be made equal to it when the profits of the company are sufficient. Whenever the lawfully invested assets of such company shall exceed the re-insurance reserve, and other liabilities, to an amount equal to the amount of the guarantee fund subscribed, the directors, at their option, may retire or return all or such portion of the guarantee fund to the subscribers as the interest of the company may warrant, but no sum in cash shall be returned exceed- ing that actually paid with the interest due and un- paid on the guarantee fund subscribed. Section 25. A policy of insurance issued by any com- pany incorporated under this act, on the life of any person expressed to be for the benefit of any married women, whether procured by herself, her husband, or any other person, shall inure to her separate use and benefit, and that of her children, independently of her husband or his creditors, or the person effecting the same or his creditors. If the premium is paid by any person with intent to defraud his creditors, an amount equal to the premium so paid with interest thereon shall inure to their benefit. Section 26. No fire or fire and marine insurance com- pany organized under this act, shall make any dividend except from the profits arising from its business, and in estimating such profits there shall be first charged as a liability the capital stock of the company, to- gether with the amount of the proposed dividend, one- half of all the premiums received and receivable on un- determined fire risks, and the whole amount of pre- miums received and receivable on undetermined marine and inland navigation risks, and also all sums 31 due the company on bonds and mortgages, bonds, stocks and book accounts, of which no part of the prin- cipal or the interest thereon has been paid during the last calendar year, and for which the foreclosure or suit has not been commenced for collection, or which after judgment obtained thereon shall have remained more than two years unsatisfied, and on which interest shall not have been paid, and also all interest due or accrued and remaining unpaid, and all other debts or obligations of the company: Provided, That it shall not be lawful for any company aforesaid to make divi- dends exceeding ten per centum in any one year, un- less its capital stock remains unimpaired, after charg- ing as a liability, in addition to the items above enumerated, the entire amount of net premiums re- ceived and receivable upon all risks undetermined at the time of making such dividend. Section 27. (As amended bv act of June 29, 1881, P. Sp«^ '^ZTot °' L. 122.) companies. Any existing fire or fire and marine insurance com- pany, and any stock company formed under this act, may at any time increase the amount of its capital stock, if authorized so to do by the stockholders hold- ing the larger amount in value of the stock, at a meet- ing specially called for that purpose, of which at least sixty days' previous public notice shall have been given. At such meeting of the stockholders, and at all other meetings thereof, each stockholder shall be entitled to cast, either in person or by proxy, subject to such regulations as to voting by proxy as the by- laws of the company may prescribe, one vote for each share of stock that shall have stood in his or her name on the books of the company for at least three months previous thereto. Increase of capital stock as aforesaid may be made by increasing the number of the shares of stock, or by increasing the par value of the same, and such increased shares or increased par value shall be allotted pro rata to the stockholders of said com- pany according to their interest, and may be paid in whole or in part out of the accumulated reserve of the company, in case the condition of the company war- rants such allotments, or the same may be disposed of as is provided in this act for the organization of stock companies. The stockholders may direct the sale of f '^efsiirot nc^w the new stock by auction or otherwise, and for such =""=''• 32 To sell options. Limitations. price per sbare as they may designate, or may require the payment of any sum they may see fit for the right to subscribe for the increased stock to be issued : Pro- vided, That new stock shall never be disposed of for less than the par value, to be received by the company and constitute capital, and that every stockholder shall be entitled to a like option vcith all other stock- holders of taking the new shares in proportion to his interest in the company, and that all moneys thus re- ceived bej'ond the amount contributed for capital shall be applied as directed by the stockholders, and the company may direct the sale of options not taken after a reasonable time shall have been given for electing to take or refuse the same. No portion of the funds of a company shall be regarded as accumulate reserve subject to allotment under this section, except such amounts as may remain after charging the entire amount of premium receipts on undetermined policies, in addition to capital stock and all other liabilities. Before any such company as aforesaid shall be au- thorized to increase its capital stock as herein pro- Aided, it shall file with the Insurance Commissioner a certiiicate, setting forth the amount and manner of such desired increase, and the proceedings of the stock- holders authorizing the same, and thereafter such com- pany shall be entitled to have the increased amount of capital fixed by said certificates; and the examination of securities composing the capital stock thus increased shall be made in the same manner as is provided in this act for capital stock originally paid in. When- ever any existing fire or fire and marine insurance company, shall, by resolution of its board of directors, accept of the provisions of this section of this act as a part of the charter of said company, and a duly cer- tilfled copy of such resolution shall have been filed in the office of the Insurance Commissioner, the char- ter of said company shall be deemed and taken to have been amended by the addition thereto of this section which shall have the sanie force and effect as if a part of the company's original charter, constituting a sup- plement thereto." That all action taken by any existing fire or fire and marine insurance company, increasing and disposing of its capital stock in the manner above provided, be and 33 the same is declared to be a legal and valid exercise of corporate power. (As amended by act of April 15, 1891, P. L. 11.) Section 27. Any existing tire or jJre and marine in- Amenamonts. surance company^ and any stock company formed under this act, may at any time increase the amount of its capital stock, or alter and change the par value of the shares thereof, if authorized so to do by the stockholders holding the larger amount in value of the stock, at a meeting specially called for that purpose, of which at least sixty days' previous public notice shall have been given. At such meeting of the stock- holders and at all other meetings thereof, each stock- holder shall be entitled to cast, either in person or by proxy, subject to such regulations as to voting by proxy as the by-laws of the company may prescribe, one vote for each share of stock that shall have stood in his or her name on the books of the company for at least three months previous thereto. Increase of capi- tal stock, as aforesaid, may be made by increasing the number of the shares of stock, or by increasing the par value of the same, and -such increased shares lor increased par value shall be allotted, pro rata, to the stockholders of said company according to their in- terest, and may be paid, in whole or in part, out of the accumulated reserve of the company, in case the condition of the company warrants such allotments, or the same may be disposed of as is provided in this act for the organization of stock companies. The stock- holders may direct the sale of the new stock by auc- tion or otherwise, and for such price per share as they may designate^ or may require the payment of any sum they may see fit for the right to subscribe for the in- creased stock to be issued: Provided, That new stock shall never be disposed of for less than the par value to be received by the company and constitute capital, and that every stockholder shall be entitled to a like option with all other stockholders of taking the new shares in proportion to his interest in the company, and that all moneys thus received, beyond the amount contributed for capital, shall be applied as directed by the stockholders ; and the company may direct the sale of options not taken, after a reasonable time shall have been given for electing to take or refuse the same. 3 34 stock not to be is- sued except for value received. Existing compan- ies may accept provisions of this section. No portion of the funds of a company shall be regard ed as aocumulate reserve, subject to allotment under this section, except such amounts as may remain after charging the entire amount of premium receipts on undetermined policies, in addition to capital stock and all other liabilities. Before any such company as aforesaid shall be authorized to increase its capital stock, or alter and change the par value of the shares thereof, as herein provided, it shall file with the In- surance Commissioner a certificate setting forth the amount and manner of such desired increase, or of such desired alteration and change in the par value of the shares thereof, and the proceedings of the stock- holders authorizing the same, and thereafter such com- l>any shall be entitled to have the increased amount of capital or the alterations and changes in the par value thereof, fixed by said certificate, and the examina- tion of securities composing the capital stock thus in- creased, or the par value of which has been so altered and changed, shall be made in the same manner as is provided in this act for capital stock originally paid in: Provided further, That no incorporated company, working under the provisions of this act, shall issue stock except for value received, and unless such stock actually represents cash in the reserve fund accumu- lated for the payment of policies issued by such cor- porations or on property owned by said corporations and necessary for the transaction of its business. Whenever any existing fire or fire and marine insur- ance company shall, by a resolution of its board of di- rectors, accept of the provisions of this section of this act as a part of the charter of said company, and a duly certified copy of such resolutions shall have been filed in the office of the Insurance Commissioner, the charter of said company shall be deemed and taken to have been amended by the addition thereto of this section, which shall have the same force and effect as if a part of the company's original charter constituting a supple- ment thereto. (As amended by the act of 9th February, 1901, P. L. 3.) Section 1. Be it enacted, &c., That the capital stock or indebtedness, or both, of any corporation created by general or special law may, with the consent of the per- sons or bodies corporate holding the larger amount in 85 value of its stock, be increased to such an amount in capital stock the aggregate of each as it shall deemed necessary to ""^^ "^ '°"^'**- accomplish and carry on and enlarge the business and purposes of the corporation. Such increase of either when increase IT, „ may be made. may be made at once, or from time to time, as the stock- holders aforesaid shall determine. Section 2. That any corporation desirous of increas- ing its capital stock or indebtedness, or both, as au- thorized by this act, shall by resolution of its board of how increase may directors, adopted by a majority of the entire number thereof, declare such purpose, and thereupon by resolu- tion, similarly adopted, direct that the question of such proposed increase shall be submitted to the stockhold- ers of such corporation for their consent, either: (A.) At any prescribed regular annual meeting or ad- -*■' regular annual ° ° meeting notice to journment thereof, the notice whereof, stating inter *» published. alia that such subject would be considered thereat, shall hare been published once a week for sixty days prior to such meeting in at least one newspaper pub- lished in the county, city or borough wherein the chief office or place of business of the corporation is situate. At said meeting the question shall be submitted to the stockholders, and it shall be the duty of the president and secretary of said meeting, by such agencies or methods as to them may seem meet, to ascertain whether the persons and bodies corporate holding the larger amount in value of the stock of said corporation shall have consented to such increase, and upon being so satisfied to certify in duplicate the fact, under oath duly administered: Provided, That should a stock vote p™^™' of stock- '' ' holders to be cer- be duly demanded at said meeting, it shall be the duty *"'^''- of the president and secretary, in ascertainment of the fact of the consent, to cause such vote to be taken at the same time and place, by the same persons and in the same manner, as the vote for directors or managers of such corporation shall be taken; or, (B.) At a special meeting of the stockholders, notice py special meet- of the time, place and object of which shall have been Notice, etc. published once a week for sixty days prior to said meet- ing in at least one new.spaper published in the county, city or borough wherein such offlce or place of business is situated. At such meeting thus called, or any ad- Election to be held held. journment thereof, an election of the stockholders shall be taken for or against such increase, which shall ^^^^^H '" ''^ '^'^ be conducted by three judges, stockholders of such cor- 36 Make duplicate return. Amount of capital furnished Judges. Copy of election certificate to be filed in Office of Secretary of Com- monwealth. poration, appointed by the board of directors to hold said election, and if one or more of said judges be ab- sent the judge or judges present shall appoint a judge or judges who shall act in the place of the judge or judges absent; and said judges shall respectively take and subscribe an oath or affirmation before an officer authorized by law to administer the same, well and truly and according to law to conduct such election to the best of their ability; and the said judges shall de- cide upon the qualifications of voters, and when the election is closed count the number of shares voted for and against such increase, and declare whether the persons and bodies corporate holding the larger amount of the stock of such corporation have consented to such an increase or refused to consent thereto, and shall make out duplicate returns of said election, stat- ing the number of shares of stock that voted for such increase and the number that voted against such in- crease, and subscribe and deliver the same to one of the chief officers of said company. Each ballot shall have endorsed thereon the number of shares thereby repre- sented, but no share or shares transferred within sixty days shall entitle the holder or holders thereof to vote at such election or meeting ; nor shall any proxy be re- ceived, or entitle the holder to vote, unless the same shall bear date and have been executed within four months next preceding such election or meeting; and it shall be the duty of such corporation to furnish the judges, at said meeting, with a statement of the amount of its capital stock, with the names of persons or bodies corporate holding the same, and number of shares by each respectively held, which statement shall be signed by one of the chief officers of such corporation, with an affidavit thereto annexed that the same is true and cor- rect to the best of his knowledge and belief. Section 3. That it shall be the duty of such corpora- tion, if consent is given to such increase, to file in the office of the Secretary of the Commonwealth, within thirty days after such election, one of the copies of the ■certificates of the president and secretary of the annual meeting, or one of the copies of the return of such elec- tion at the special meeting hereinbefore provided for with a copy of the resolution and notice calling the same thereto annexed ; and thereafter the increase may be made at such time or times as shall be determined 37 by the directors. Upon the actual increase of the capi- tal stock lor indebtedness of such corporation, made pursuant thereto, it shall be the duty of the president preeiaent to make . ~ 1 ,. .,,..,.,1 return of increase. or treasurer of such corporation, within thirty days thereafter, to make a return to the Secretary of the Commonwealth, under oath, of the amount of such in- crease actually made, and concurrently therewith such corporation shall pay to the State Treasurer, for the use of the Commonwealth, such bonus on the actual in- Pay bonus, crease shown by said return as shall then be prescribed by law. In case of neglect or omission to make said re- turn, such corporation shall be subject to a penalty of Penalty, five thousand dollars, in addition to the bonus, which penalty shall be collected on an account settled by the Auditor General and State Treasurer as accounts for taxes due the Commonwealth are settled and collected; and the Secretary of the Commonwealth shall cause said return to be recorded in a book for that purpose and furnish a copy of the same to the Auditor General. Section 4. Nothing in this act contained shall be con- how act shaii to strued as compelling resort to the process herein pro- vided in the case of indebtedness contracted in the usual course of corporation business. All acts and Bepeai. parts of acts inconsistent with the provisions of this act are hereby repealed: Provided, however, That any proviso, proceeding for increase of capital stock or indebted- ness, begun under existing law prior to and not com- pleted at the date this act becomes effective, shall be consummated under the authority of this act if the antecedent proceeding shall have conformed to its re- quirements; but if sucTi antecedent proceeding shall not have so conformed, then the proceeding shall be con- summated under the provisions of the law existing prior to the passage of this act: Provided, however. That Proviso, the provisions of this act shall not inure to the benefit of any railroad, canal or other transportation corpora- tion, unless such railroad, canal or other transporta- tion corporation shall, before claiming or using the benefits of this act, file in the office of the Secretary of the Commonwealth an acceptance of all the provisions of article seventeen of the Constitution of this Com- monwealth, which acceptance shall be made by resolu- tion adopted at a regular or called meeting of the di- rectors, trustees or other proper officers of such rail- road, canal or other transportation corporation, cer- ns Certified copy evi- dence. Decrease of capi- tal stock. Payment of notes taken by stock companies hereto- fore incorporated. Stock companies with less capital than JIOO.OOO must increase same. Of the renewal of charter*. tifled under the seal of the corporation, and a copy of which resolution, certified under the seal of the ofQce of the Secretary of the Commonwealth, shall be evi- demce for all purposes. Section 28. Whenever the capital stock of any joint stock tire or marine insurance company, heretofore or hereafter organized, becomes impaired, it shall be law- ful for its board of directors, by a resolution approved by at least two-thirds of the directors, to reduce the capital stock of said company in proportion to the ex- tent of impairment, but to an amount not less than that required by this act for the organization of such company, the assent of the Insurance Commissioner having first been obtained to said reduction, as pro- vided in the act of the fourth of Aprils one thousand eight hundred and seventy-three, establishing an In- surance Department. Section 29. Any joint-stock fire insurance company, heretofore organized under any law of this State, which has taken notes or obligations of its stock- holders for any portion of the amount subscribed by them to its capital stock, shall require the makers of such notes or obligations to pay twenty per centum of the same during the year one thousand eight hun- dred and seventy-six, and twenty per centum per an- num thereafter until paid. Every joint-stock fire in- surance company heretofore organized in the city of Philadelphia, with a less capital than one hundred thousand dollars, or elsewhere, shall, within five years from the passage of this act, increase its capital stock to at least the amount required of companies hereafter organized, and the same shall be paid up and in- vested in the manner hereinbefore prescribed ; and any company failing to comply with the provisions of this section shall thereafter cease issuing policies of in- surance. Section 30. Any insurance company of this State, whose charter is about to expire, may call a special meeting of the members or stockholders, notice of the object of which meeting shall be given, by advertise- ment, for four weeks preceding, in at least two daily or weekly newspapers published in the city or county where the principal office of the company is located, or by circular mailed to the address of each member or stockholder. If at such meeting two-thirds of the Amendments. 39 votes cast in person or by proxy, shall favor a resolu- tion agreeing that said corporation shall hold its char- ter subject to the provisions of the Constitution of this State, and setting forth at length the sections of its ex- isting charter, which it desires to retain, and agreeing to be subject to the provisions of this act, so far as not inconsitent with said charter, said resolution and the number of votes cast for and against the same, at the special meeting aforesaid, shall be spread on the records of said company, and a certified copy of the same forwarded to the Insurance Commissioner, who shall submit the same to the Attorney General, and, in case he approves of said resolution^ he shall certify his approval of said record to the Governor, who shall cause letters patent to issue, erecting said company into a body corporate, with succession, as hereinbefore provided in the case of companies originally organized, with all the powers and privileges and subject to the restrictions specified in the resolution aforesaid. Section 31. Any insurance company of this State, may procure an amendment to its charter, in the same manner and subject to the same conditions and re- strictions, as is provided in the preceding section of this act for the renewal of charters about to expire; but such amendments shall be in harmony with the original purposes of the corporation, and when ap- proved by the Governor and recorded in the oflSce of the Secretary of the Commonwealth, they shall be deemed and taken to form part of the charter of said company without letters-patent, as in case of the crea- tion or renewal of charters under this act: Provided, That this section shall not be so construed as to pre- vent any insurance company from extending, by amendment to its charter, the territory in which it may insure property to any or all the counties of this Com- monwealth. Section 32. It shall be lawful for mutual fire insur- Accumulation ot reserve by mutual ance companies heretofore organized, which by their Sj?etot?r?^'^an- charters are authorized to issue policies for cash pre- '^'*- miums and without premium notes, to accumulate out of the profit of their cash business, a re-insurance fund or reserve; but no mutual company aforesaid shall be when not to be ' deemed insolvent. deemed insolvent, nor shall the Insurance Commis- sioner require such company to make an assessment 40 Of the creation of capital stock by mutual fire com- panies heretofore Incorporated. JMans of organiza- tion. upon its mutual policy holders, so long as its premium notes in hand and subject to assessment amount, in gross, to three per centum of the entire amount of risk of said company. Section 33. Any mutual fire insurance company heretofore incorporated, that may have accumulated in the course of its business not less than twenty thousand dollars over and above all liabilities, includ- ing the cash reserve required by law on cash risks, and may desire to create a capital stock may do so, mth the assent of two-thirds in interest of its policy- holders, such interest to be determined by the amount of premiums paid or premium notes given, at a meet- ing specially called for that purpose, of which at least six weeks' previous notice shall have been given by publication, in a newspaper of general circulation in the county in which the principal office of the company may be located, and also by written or printed notice addressed and mailed to each policy holder; and in case the consent of two-thirds of the policy holders is obtained, as aforesaid, and due proof thereof made to the Insurance Commissioner, the directors of said company shall open books and receive subscriptions to the stock of the company^ and otherwise proceed as is provided in this act for the organization of joint-stock lire insurance companies; but no share of stock shall be disposed of or a certificate issued therefore, unless the actual par value thereof has been paid to the com- pany in cash. The policy holders of said company shall have the first right to subscribe to said stock, subject to such equitable regulations as the directors may prescribe, and the surplus of the mutual company shall not be distributed, but shall remain intact as the surplus of the joint-stock company, and the mutual policies, and all the rights and liabilities attached theretOi, and all the powers and obligations of the com- pany with reference to the same, shall survive so long as said policies remain in force, and when said policies shall have expired, said com]iany shall be subject in all respects, to the provisions of this act as orio-inally organized under the same. Section 34. Companies incorporated under this act must be organized upon the joint-stock or the mutual 41 plan, and the power to insure upon both plans shall not exist in the same corporation except temporarily as provided in the preceding section of this act. ►Section 35. If any corporation created under this act. Forfeiture of charter for neglect does not commence to issue policies within one year to commence busi- from the date of its letters-patent, its corporate powers and existence shall cease. Section .30. That all insurance companies heretofore companies subject or hereafter incorporated, except those especially ex- empt by the terms thereof, shall be subject to the pro- visions and requirements of the act, approved the fourth day of April, Anno Domini one thousand eight hundred and seventy-three, entitled "An act to estab- lish an Insurance Department," and the several sup- plements thereto. Section 37. Companies insuring lives on the plan of organization of sr r:t rr jlfe companies on assessments upon surviving members, may be or- SitSts°'upSn^^lGr- ganized in the same manner as provided in this act for '^'''"'^ members. the organization of mutual fire insurance companies, and the provisions of the act to which this is a supple- ment shall not apply to said companies and companies heretofore organized, if their business is transacted in accordance with the provisions of their respective charters, whether with of without capital stock, guar- antee capital or accumulated reserve in lieu of capital stock: Provided however, That each of said to exhibit state- ^ ' ment to Insurance companies shall be required to exhibit an annual state- oeparment. ment to the Insurance Department, which shall be published in the annual report of the Insurance Com- missioner, of the amount, if any, of its capital stock, guarantee capital or accumulated reserve in lieu of capital stock; and also of all assets, assessments and liabilities, and to answer such interrogatories as the Insurance Commissioner may require in order to as- certain its character and condition. For this purpose the said Commissioner may at any time institute an ^x^m aSlir^of^ examination of the affairs of any such company, as is provided in the case of mutual fire insurance com- panies by the act to which this is a supplement: Pro- g°^e ^^^^^f^'^^-'" vided also. That no part of such assessment upon sur- viving members shall be applied to any other purpose than the payment of death losses, unless the amount intended for other purposes is specially stated in the notice of such assessment and the object or objects for which it is intended: Provided further. That all poll- 42 What the policies and certificates to state. Soliciting agent License tMi. Charters may be perpetual or limit- ed. Power to revoke. What capital for- eign Are and ma- rine companies to have. Certificates to foreign companies when to be issued. cies or certificates issued by said companies, shall state that the company issuing the same, is not required by law to maintain the reserve which other life insur- ance companies are required by the act to which this is a supplement. Section 38. Every soliciting agent, appointed by any of the companies mentioned in the preceding section, shall, before he enters upon his duties in any part of this State, and annually thereafter, pay the sum of five dollars for a license as such agent; said license fees to be collected by the several companies and paid to the State Treasurer annually. Section 39. The charters for incorporations named in this act, may be perpetual or limited in time, as the articles of agreement shall specify, and the general as- sembly reserves the power to revoke or annul any charter granted or accepted under this act, whenever in the opinion of the said general assembly it may be injurious to the citizens of this Commonwealth, in such manner, however, that no injustice shall be done to the corporators or their successors. Section 40. That no fire, marine, or fire and marine insurance company, incorporated by any other State or government, shall be authorized tO' transact busi- ness in this State, unless it has a capital stock paid in and safely invested of at least two hundred thousand dollars, which has not been impaired to a greater ex- tent than that permitted to companies of this State under the act to which this is a supplement, or having a capital stock less than two hundred thousand dollars and not less than one hundred thousand, has a surplus on hand, making the aggregate of its assets safely invested at least two hundred thousand dollars over and above all liabilities: Provided, That this section shall not apply to companies of other states now authorized to do business in this Common- wealthy until five years from and after the approval of this act, so long as said companies continue solvent and comply with existing laws: Provided, That any company with a capital paid in exceeding two hun- dred thousand dollars may be admitted so long as its unimpaired capital does not fall below said amount. Section 41. That the certificates issued for the pres- ent year to insurance companies of other states and governments, shall continue good until the thirty-first 43 day of March, Anno Domini one thousand eight hun- dred and seventy-seven, unless sooner revoked by the Insurance Commissioner, and thereafter certificates shall be issued for the year beginning with the first day of April and expiring on the thirty-first day of March succeeding. Section -12. That every insurance comipanv of this certified copies of chirtGrs to 1>g (State incorporated or organized after the fourth day fli«i- of April, Anno Domini one thousand eight hundred and seventy-three, which has failed to file with the In- surance Commissioner a certified copy of its charter, shall file such copy within ninety days after the pass- age of this act, subject to like penalties as those im- posed upon companies in existence at the time of the passage of this act to which this is a supplement; and every company hereafter organized, shall file a copy of its charter with the Commissioner within ninety days from the date of said charter, and be subject to the provisions of the act to which this is a supplement. Section 43. ^\'hoever acts or aids in any manner in br"ker"aeflnld negotiating contracts of insurance, or re-insurance, or placing risks, or effecting insurance or reinsurance, , for any person other than himself, receiving compen- sation therefor, and is not the officer, member or agent of the company or com])anies in which such insurance is effected, shall be deemed to be an insurance broker. Section 44. No person shall act as an insurance pr^ure'^'^ceA'ifl- broker until he has procured a certificate of authority Jf let' "^"'"""^ so to act from the Insurance Commissioner. Such cer- tificate shall authorize the person named therein to ne- gotiate contracts of insurance, or place risks, or affect insurance, with any insurance company established in this Commonwealth, or its agents, and with the agents of any insurance company not incorporated in this Commonwealth which is duly authorized to do business therein. Section 45. The Insurance Commissioner shall grant t^™ »£ oertia- certificates of authority, as aforesaid, which shall con- tinue in force for one year from the date thereof, and shall be renewed annually thereafter. For each cer- tificate so granted, and for each renewal thereof, the person receiving the same shall pay a fee of ten dol- Fee therefor. lars^ which shall be paid into the State Treasury as provided in the act to which this is a supplement. 44 Penalty for trans- acting business without same. One-half thereof to go to Informer. Penalty on agents of foreign com- panies for trans- acting business without authority. Complainant enti- tled to one-half the fine. Liability for non- compliance with laws of State. On dissolution of company receiver to be appointed. His powers. Section 46. Any person transacting business as an, insurance brolcer within this Commonwealth without a certificate of authority as aforesaid, shall be guilty of a misdemeanor, and upon conviction thereof shall be sentenced to pay a fine of three hundred dollars. The person or persons upon whose complaint such convic- tion is had shall receive one-half of the fine so paid, provided the Insurance Commissioner or his deputy is not the complainant. Section 47. Any person transacting business within this Commonwealth as the agent of an insurance com- pany of any other State or government, without a cer- tificate of authority^ as required by the act to which this is a supplement, shall be guilty of a misdemeanor, and upon conviction thereof shall be sentenced to pay a fine of five hundred dollars; but this section shall not be held to prevent the Insurance Commissioner from pursuing the remedy or remedies provided in the act aforesaid. The person or persons upon whose com- plaint such conviction is had shall receive one-half of the fines so paid, provided the Insurance Commissioner or his deputy is not the complainant. Section 48. The agent of any insurance company of any other State or government which does not comply with the laws of this Commonwealth shall be person- ally liable on all contracts of insurance made by or through him, directly or indirectly, for or in behalf of any such company. Section 49. When an insurance corporation is dis- solved, as provided in the eighth paragraph of the fifth section of the act to which this is a supplement, the court or judge decreeing such dissolution may appoint a receiver to take charge of its estate and effects, and collect the debts and property due and belonging to it, with power to prosecute and defend suits in the name of the corporation or otherwise, and to do all other acts which might be done by such corporation, if in being, that are necessary for the final settlement of the unfinished business of the corporation. The powers of such receiver may continue as long as the court deems necessary for said purposes, and he shall be held to supersede an assignee of the company in possession. 45 Section 50. The said receiver shall give such security to give security. for the faithful performance of his duties as the court may determine. He shall pay all debts due from the Pay debts. company, if the funds in his hands, are sufficient there- for, and if not he shall distribute the same ratably among the creditors in the manner directed by any order or decree of the court. If there is a balance re- maining after the payments of the debts, the receiver shall distribute and pay it to and among those who Distribute bai- are justly entitled thereto as having been stockholders *"°^' of the company, or their legal representatives, and his Account subject to final account shall be subject to the approval of the court appointing him. Section 51. Eeceivers of insurance companies shall report to the Insurance Commissioner annually, in to report to insur- such form as the Commissioner may prescribe, and sioner. oftener in case he so directs, and such reports or ab- stracts thereof shall be incorporated into the annual report of the Commissioner to the Legislature. Section 52. Within three months after the date of Appeal to su- T ... -..-.. , • • . preme Court from any decree, either dissolving or continuing an insur- decree of dissoiu- ance corporation, either party to the proceeding may take an appeal to the Supreme Court, vyhich shall be heard and determined by said court as appeals in equity cases are now heard and determined. In case the appeal is taken by the company, it shall give a bond or recognizance to the Commonwealth in such amount and with such sureties as may be determined and approved by the court or judge making such de- cree, conditioned that said company shall prosecute said appeal with effect, pay all costs that may be ad- judged against them, and deliver over to the receiver duly appointed the assets of said company unimpaired in case a final decree be rendered against them. Section 53. The Insurance Commissioner shall, at valuation by com- , „ -. . missloner of poll- the request of any life insurance company of this eies of iife com- ^ '^ A ./ panles transacting State, cause a valuation to be made 'of the policies of l^^^^^ '" °'*"='' the said company according to any standard in use in any state in which the said company is transacting business, or propose to transact business, and furnish said company with certificates of said valuation upon payment of the cost thereof as prescribed by the act to which this is a supplement; and in case the Insur- ance Commissioner or superintendent of any state shall refuse to accept the valuation of policies so made ac- 4fi Refusal of other states to accept such valuations. When equal fees may be exacted. Act not to apply to certain benefi- cial associations. Nor to certain fire associations. Certificate of as- sessments by mu- tual fire companies to be evidence. cording to the standard of said state^ it shall not be lawful for the Insurance Commissioner of this State to accept the valuations made according to the Pennsyl- vania standard by the Insurance Commissioner or su- perintendent of the state^ thus refusing to accept as aforesaid, for companies of said state or states applying for authority to do business in this State, but the In- surance 'Commissioner shall proceed to value the poli- cies of companies of states so refusing to reciprocate as required by the law of this State; and when by the laws of any state greater fees are charged the insurance companies of this State for authority to do business in said state than are required by the law of this State to be paid by the companies of other states authorized to do business herein, the Insurance Commissioner shall exact from the companies of said state the same amount of fees for similar service which are exacted from the insurance companies of Pennsylvania by the laws of the state aforesaid. Section 54. That this act and the act to which this is a supplement, shall not apply to the beneficial asso- ciations that provide aid for the family or heirs of a deceased member, whether issuing policies containing a guaranteed sum of insurance or not, nor to associa- tions issuing policies not containing a guaranteed sum of insurance. Section 55. That the provisions of this act shall not be held to apply to any fire associations in any city of this Commonwealth having a representation in its board of directors or trustees from the fire companies of said city and whose business is restricted by law to the limits of said city. Section 56. That the certificate of any mutual fire insurance company, now in existence or hereafter in- corporated, signed by the president and attested by the secretary of such company, with the seal affixed, setting forth that an assessment has been made upon the premium note or notes of any member, and the amount due by such member upon such note or notes, shall be prima facia evidence thereof in all the courts of this Commonwealth; but in all cases now pending or hereafter instituted in any of the courts of this Com- monwealth, against any member of any such company in which such member has or may hereafter, within the time prescribed by law, file an affidavit setting forth proved. ■17 that he, she or they has or have already paid his, her or their proportion of the loss for which the assess- Except m certain ment was levied, or that the assessment is for more oL?.^ mu?t be money than is necessary to pay the losses and neces- sary expenses of said company, or that his, her or their signature or signatures was or were obtained by the practice of fraud, or false or fraudulent representa- tions, such certificate shall cease to be evidence of any- thing whatever, and said company shall be compelled to prove its claim as other claimants do; and all acts or parts of acts or charters or parts of charters in- consistent herewith are to such extent repealed. Section 57. That so much of any act of assembly as provides for the incorporation of the insurance com- panies whose incorporation is provided for by this act, or for the alteration and amendment of the charters of the same, and all acts or parts of acts inconsistent herewith, be and the same are hereby repealed. Approved— The 1st day of May, A. D. 1876. (P. L. 53.) J. F. HAETBANFT. Repeal. AN ACT To provide for the incorporation and regulation of corpora- tions for the purpose of making Insurance upon the health of individuals, and against personal injury and disablement and death; therein limiting the amount for which such cor- porations may issue policies, and providing the manner In which certain existing corporations may become reincorpo- rated under this act. ►Section 1. Be it enacted, &c., That any ten or more incorporation or persons, citizens of this Commonwealth, may asso- insurance^ram-"* ciate in accordance with the provisions of this act, ''*"'^- and form an incorporated company for the purpose of making insurance, either upon the stock or mutual principle, upon the health of individuals, and against personal injury or disablement, and against death, resulting from natural or accidental causes: Provided, That such corporations shall not issue policies agree- umit of policy. ing to pay more than ten dollars per week in the event of sickness, accident or disablement^ nor more than two hundred and fifty dollars in event of death. 48 How company shall be formed and incorporated. Capital stock. Forfeiture of par- tial paymentB. Annual meeting. Election of direc- tors. Proviso, Division of into classes. Vacancies. Section 2. Such persons shall associate themselves together, and the company shall be formed and incor- porated, in the manner provided by law for the incor- poration of insurance companies, and shall be author- ized to transact the business of insurance in the same manner and upon the same conditions as insurance companies are by law authorized to do, in so far as such laws are not inconsistent with the provisions of this act. Section 3. The capital stock of a joint-stock com- pany, organized under this act, shall be not less than twenty-five thousand dollars, and shall be divided into shares of not less than ten dollars each, jjayment of which shall be made in lawful money, ten per cen- tum on each share at the time of subscribing, and the balance at such times as the company may direct, not exceeding one year from the time of subscription; and the company may provide such rules, with regard to forfeiture of partial payments on subscriptions, as they may deem advisable; which rules shall be bind- ing upon the subscribers, provided they are made known at the time of subscription. Section 4. The annual meeting for the election of directors shall be held at such time in the month of January as the by-laws of the company may direct, and such notice of the time and place of meeting shall be given to the stockholders or members as may be provided in the by-laws; and at such annual meeting the stockholders or members shall elect, by ballot, not less than five nor more than thirteen directors, to serve for one year, and until their successors ai-e duly chosen: Provided, That at any annual meeting of the stockholders or members it may and shall be law- ful to divide the directors, which arc to be chosen, into two, three or four classes, and to elect the first class to serve for the term of one year, and the second, third and fourth to serve two, three and four years, respectively; and at all ensuing elections of said comr pany the stockholders or members shall only elect the number of directors necessary to take the place of those whose terms of oflice shall then expire, and such directors shall be elected for the longest term for which any class may have been elected, as hereinbe- fore provided. And in case a vacancy or vacancies shall happen in the number of said directors, the 49 board of directors shall choose and elect a proper person, or proper persons, to fill such vacancy or va- cancies during the remainder of the term or terms for which the person or persons, in whose place or places such vacancy or vacancies shall have happened, shall have been elected. Section 5. Any mutual company, organized under ^^®^^"^^ ao the provisions of this act, shall be authorized to do •'"siness- the business of insurance when it shall have received, from not less than five hundred persons, applications for insurance against death amounting to not less than fifty thousand dollars, upon which applications one-twelfth of the annual premium shall have been paid: Provided, That no such company shall be au- Proviso. thorized to do the business of insurance until it shall „ .. „^ , Deposit with In- have deposited with the Insurance Commissioner the IJJfner?^ commis- sum of five thousand dollars in cash or approved se- curities; which sum the Insurance Commissioner is hereby authorized and empowered to receive, and it shall be his duty to hold the same for the benefit of the member of such corporation and its creditors, preference being given thereto in the following order, to wit: First, claims under policies; second, salaries of employes; third, general creditors. Section 6. Any corporation now formed or organ- ized under the provisions of the ninth paragraph, sec- tion two, of the act, entitled "An act to provide for the incorporation and regulation of certain corpora- tions/' approved April twenty-ninth, one thousand eight hundred and seventy -four, namely: "The main- ^^^^l{]^^^^°^- tenance of a society for beneficial or protective pur- poses to its members, from funds collected therein," except fraternal, benevolent, charitable or secret so- cieties, issuing beneficial certificates, and paying bene- fits to their membership through the lodge system, and insurance or relief associations formed by or for the exclusive benefit of employes of corporations or firms, or formed by or for the exclusive benefit of members of any religious corporation or association, may be reincorporated under the provisions of this '„"„™77,fis°a"-t'.'' act in the following manner: A meeting of the mem- bers of such corporation shall be held, and, if a ma- jority shall vote in favor of the proposed reincorpora- tion, a resolution to that effect shall be adopted, and Jlepcal. 50 upon the recording of sucli resolution in the ofQce for the recording of deeds, et cetera, in tlie county where such corporation has its principal office, it shall be lawful for the directors of such corporation to make the articles of association, as herein x^ovided for the incorporation of new corporations; upon which ar- ticles the same proceedings shall be had as upon an original application for incorporation under this act. And from and after the approval of said articles, the corporation shall be and become a corporation under this act. Section 10. All laws and parts of laws inconsistent herewith are hereby repealed. Approved— The 28th day of April, A. D. 1903. SAML. \V. PENNYPACKER. AN ACT Extending protection to foreign and domestic insurance com- panies from fraudulent agents. Punishment for Scctiou 1. Be it enacted, &c.. That if any director, embezzlement by . officers ajid agents offlcer, agent or other person connected with or doing of companies. ? o jr o business for or with any fire, marine or life insurance company, trust or annuity company, or any health or casualty insurance company, or any company, for the insurance of horses, mules, cattle and live stock, incor- porated by the State of Pennsylvania or any other state of the United States, or by any foreign govern- mentj or organized under the laws of any state or foreign government, which has complied with the in- surance laws of this Commonwealth, shall fraudu- lently embezzle or appropriate to his own use, or the use of any othir person or persons, any m'oney or other property belonging to such company or companies, or left with or held by such company or Companies, in trust as a special deposit or otherwise, he or they, on conviction thereof, shall be fined in a sum not exceed- ing nor less than the amount so appropriated or em- bezzled, and sentenced to undergo an imprisonment in the penitentiary for a term not exceeding five years, or both, such fine and imprisonment, at the discretion of the court; and in the indictment and trial of any 51 case under this act, it shall not be necessary, in order to establish a prima facia case for the Commonwealth Proof oc incoi. ration. to set forth or prove the incorporation or organization of any such company or companies, except by the ver- bal testimony of any competent witness. Approved— The 17th day of June, A. D. 1878. (P. L. 212.) J. F. HARTRANFT. AN ACT Relating to life and fire insurance policies. Section 1. Be it enacted, &c., That all life and fire Application, etc., ^ ' referred to in in- insurance policies upon tlie lives or property of per- be'^tttache""'''' '" sons within this Commonwealth, whether issued by companies organized under the laws of this State, or by foreign companies doing business therein, which contain any reference to the application of the insured or the constitution, by laws or other rules 'of the com- pany, either as forming part of the policy or contract between the parties thereto, or having any bearing on said contract, shall contain, or have attached to said policies, correct copies of the application, as signed by the applicant, and the by-laws referred to; and, unless so attached and accompanying the policy, no such ap- plication, constitution or by-laws shall be received in . - . , , , , , , • , otherwise not to evidence, m anv controvcrsv between the parties to, or be received in evt ^ 1 ,-,,■, , dence nor to be a interested in^ the said policy, nor shall such applica- part of contract. tion or by-laws be considered a part of the policy or contract between such parties. Approved— The 11th day of May, A. D. 1881. (P. L. 20.) HENRY M. HOYT. AN ACT To enable foreign insurance corporations and joint-stock com- panies to hold real estate in this Common-wealth. Section 1. Be it enacted, &c.. That hereafter it shall f^^^p'SiJsTar" be lawful for all corporations and joint-stock com- ^^l? eTtite.™™'' panics or associations, chartered, created or existing under the laws of any other State, or of any foreign country, for the purpose of carrying on the business of insurance, to take, hold and enjoy in any part of Title now held con Armed. Hepeal. 52 this Commonwealth, either in its corporate or asso- ciate name, or by a trustee or trustees, real estate and premises in which such corporations, joint-stock com- panies or associations shall carry on their said busi- ness, and to mortgage or convey the same, or any part thereof, and to lease any part of the buildings erected thereon, not requisite for the transaction of their said business. Section 2. That the title to any real estate in this Commonwealth, now held by, or in trust for, any such corporation or joint-stock company or association, for the purpose aforesaid, is hereby confirmed, to the same effect as if the said real estate had been pur- chased, held or owned under the provisions of this act. Section 3. That all acts of assembly, or parts of acts, inconsistent herewith are hereby repealed. Approved— The 1st day of June, A. D. 1881. (P. L. 38.) HENRY M. HOYT. AN ACT False representa- tion to life insur- ance companies made punishable. To punish frauds upon life insurance companies by agents, physicians and others. Section 1. Be it enacted, &c.. That any agent of a mutual, stock or co-operative life insurance company or association, physician or other person whatsoever who shall knowingly make, or be concerned, or inter- ested in making, any misrepresention or false state- ment, for the purpose of securing from any mutual, stock or co-operative life insurance company or asso- ciation a policy of insurance or certificate of member- ship upon his own life, or the life of any other person, shall be guilty of a misdemeanor, and upon conviction thereof be fined not exceeding one thousand dollars, or undergo imprisonment not exceeding one year, or both, in the discretion of the court. Approved— The 10th day of June, A. D. 1881. (P. L. 109.) HENRY M. HOYT. 53 AN ACT To further provide for the incorporation and regulation of mu- tual assessment corporations for the insurance of lives, sup- plementary to an act, approved May first. Anno Domini one thousand eight hundred and seventy-six, entitled "A supple- ment to an act to establish an Insurance Department." Section 1. (As amended by act of June 3, 1887, P. L. 335.) That companies may be incorporated to insure lives ^enrcomplnies on the assessment plan, or to insure against personal "ted^VTh'e'in- injury resulting from accident, in the manner and Igatast aco'de'nr form set forth in the act, to which this is supplement- ary: Provided, No letters patent shall be issued by the when letters •^ ' ^ ^ patent may issue Governor to any company organized to insure lives, com'anils^^™*"' until the Insurance Commissioner shall certify to him that the company, seeking to become incorporated has secured applications for not less than ^ five hundred ■ thousand dollars insurance, by not less than two hun- dred persons, and that two per centum of the insur- ance applied for has been deposited in bank to the credit of the mortuary fund of the proposed corpora- tion, and that satisfactory assurances have been given to the commissioner that such fund will not be used for any other purpose than the paying of losses. In case the purpose of the company is to insure against wten letters ^ ^ r- ./ n patent may Issue accident, it shall be entitled to receive letters patent *°anies!'*™' °°'"" from the Governor when it has secured applications for not less than one hundred thousand dollars of in- surance, by not less than one hundred persons, and otherwise complied with the terms and conditions here- in provided with regard to life companies : Provided, ^^'^jjf'^"'^"'' '" '^" That any state refusing admission to any company or association chartered and doing business as an assess- ment company under the laws of the Commonwealth, the Insurance Department is authorized to prohibit all assessment accident companies from such state doing business in the State of Pennsylvania. It shall be the duty of every corporation, organized ^("SSsinest't^b"' under this act, to make an annual statement to the Tcl^ SmmJ-"""" Insurance Commissioner, before the first day of March, ^'™^''- in such form as the Commissioner may prescribe, show- ing its condition and business for the year ending on the preceding thirty-first day of December, which state- M Fee to be paid to the Commissioner. Duty of Insurance Commissioner on failure of com- pany to make an- nual statement. Attorney General to commence pro- ceedings. Court may decree the removal of the officers. Or a dissolution of the corporation and a distribution of its effects. Valid policies must be supported by an insurable interest. When policies are invalid. Guarantee fund. ment shall be signed by the president and secretary, and attested by their respective oaths or affirmations, and upon filing the same, shall pay to the Commis- sioner the sum of twenty dollars. Any company aforesaid which shall fail to make the said report, for the period of one year from the time herein prescribed, shall be deemed to be doing business unlawfully, and its corporate powers and existence shall cease, and in case evidence is furnished the Insurance Commissioner it is conducting its business fraudulentlj', or not in compliance with the law applicable to the same, or is not carrying out its contracts with members in good faith, then it shall be the duty of the Insurance Com- missioner to communicate the fact to the Attorney General, who shall, thereupon, commence proceedings against such corporation, company or association, re- quiring it to show cause why its officers should not be removed, or its business closed, and the court, or judge, as the case may be, shall, thereupon, hear the allega- tions and proofs of the respective parties, and if it shall appear to the satisfaction of the said judge or court that the officers of such corporation, company or asso- ciation, or any one or more of them, have been guilty of any irregularity or violation of the law to the in- jury of such company, the said judge or court shall de- cree a removal from oflSce of the guilty party or parties, and substitute suitable persons to serve until the regu- lar annual election, or until a successor is regularly chosen, or if it shall appear to the said judge or court that the interests of the public so require, the said judge or court shall decree a dissolution of such cor- poration, company or association, and a distribution of its effects. Section 2. A policy or certificate issued by any cor- poration or association, amendable to this act, when the payments thereon are made by any person other than the insured, to be valid, must be supported by an insurable interest, and shall be invalid when the bene- ficiary or assignee thereof is solely and only interested in the death of the insured. Section .3. All companies for the insurance of life on the assessment plan, incorporated under the act to which this is supplementary, may have a guarantee fund, if approved by a majority of the directors, for a sum not exceeding two hundred thousand dollars, snb- 55 ject to the provisions, requirements and regulations prescribed in sections twenty-tliree and twenty-four of the said act. Section 4. Any association or society incorporated Business prohibit- under the act to which this is supplementary, that statement Is'med. shall have failed, for more than one year previous to the passage of this act, to make the annual statement to the Insurance Commissioner required by the thirty- seventh section of the said act, shall be deemed to be doing business unlawfully, and its corporate powers and existence shall cease; and hereafter every corpo- ration or association amenable to this act shall make its statement annually before the first day of March, Annual statement to be made belore and upon filing the same, shall pay to the Commis- March i. sioner the sum of twenty dollars. And when the of- ficers and ten members of any such corporation shall ^ee. request the Commissioner, in writing, to institute an on written re- ^ qi.est, examina- examination into its affairs, for the purpose of verify- ]^°^^° '"' '"^"" ing its statement and ascertaining its true character and condition, the expense of such examination, shall ex^nSs°o°.'° ^^^ be born by the corporation making such request. Section 5. Whenever any such corporation or asso- comm?4iorfe"™o'n^ elation shall fail to make its annual statement to the prny'^to°4a'ke'"^- Insurance Commissioner before the first day of iMarch, etc. ^ ^"*" ' or if approved evidence is furnished the Insurance Commissioner it is conducting its business fraudu- lently, or not in compliance with the law applicable to the same, or is not carrying out its contracts with mem- bers in good faith, then it shall be the duty of the In- surance Commissioner to communicate the fact to the Attorney General, who shall, thereupon, commence to^cS^ZeSce^iro- proceedings against such corporation, company or as- '=*^'^'°s=- sociation, requiring it to show cause why its officers should not be removed, or its business closed, and the court or judge, as the case may be, shall thereupon hear the allegations and proofs of the respective par- ties, and if it shall appear to the satisfaction of the said judge or court, that the officers of such corpora- tion, company or association, or any one or more of them, have been guilty of any irregularity or violation of the law to the injury of such company, the said court or judge shall decree a removal from office of - , . . , , .j_ -I 1 Court may decree the guilty party or parties, and substitute suitable per- removal of om- sons to serve until the regular annual election, or until a successor is regularly chosen, or if it shall appear to 56 Or dissolve the corporation, etc. Act applies to all assessment com- panies. Except societies doing business through the lodge system. Foreign compan- ies to be licensed. Fee. Proceedings re- quisite to obtain- ing license. tne said judge or court, that the interests of the public so require the said judge or court shall decree a dis- solution of such corporation, company or association, and a distribution of its effects. Section 6. This act shall be applicable to all cor- porations, companies, associations or co-partnerships insuring lives on the assessment plan: Provided al- ways, That cliaritable, benevolent or beneficial socie- ties providing benefits for members, or relief to sick or disabled members, or for the burial of deceased mem- bers, as provided in their charter.'', and fraternal so- cieties organized for the payment of benefits to the families, heirs or dependents of deceased members thereof, and doing business through the lodge system, who do not employ agents except for instituting lodges, shall not be amenable to the provisions of this act, and the act to which this is supplementary. Section 7. Any corporation or association organized under the laws of any other state or government, to in- sure lives on the assessment plan, or any corporation carrying on the business of life or accident insurance on the assessment plan, shall be licensed by the Insur- ance Commissioner upon the payment to him of a fee of twenty-five dollars annually, to do business in the State: Provided, Such corporation or association, shall first deposit with the Commissioner a certified copy of its charter or articles of incorporation, a copy of its statement of business for the preceding year, sworn to by the president and secretary, or like of- ficers, showing a detailed account of the expenditures and income, the amount of insurance in force, its as- sets and liabilities in detail, and a certificate sworn to by the president and secretary, or like ofiicers, set- ting forth that it has paid and has ability to pay its policies or certificates to the full limit named therein, a certificate from the Insurance Commissioner or from a judge or clerk of a court of record of its home state, certifying that corporations or associa- tions insuring lives on the assessment plan, and pay- ing policies in full, or providing accident indemnity, and chartered under the laws of this State, are legally entitled to do business in its home state, a copy of its policy or certificate of membership, application and by-laws, which must show that death losses are, in the main, provided for by assessment upon surviving 57 members, and it shall legally designate a person or Agent to reside in agent residing in this 8tate to receive service of pro- natea. cess for said company, or in default of such designa- tion, service of process may be made upon the Insur- otherwise msur- ■^ ance Commlsslon- ance Oommissioner of this State, who shall be deemed ff to jDe deemed ' its attorney. its attorney for that purpose, and he shall imme- diately notify any corporation or association thus served. Upon complying with the aforesaid provi- upon compliance sions of this section, the Commissioner of Insurance thority to issue. shall issue to the corporation or association so com- plying, a certificate of authority to do business in this State. After any such corporation or association shall have been licensed to do business in this State, it shall make, annually, to the Insurance Commissioner, 4°be ma^dll*'*'"^"' under oath, before the first day of March, of each year, a statement such as is required from like com- panies organized within this State, and answer such interrogatories to be answered. interrogatories as the Insurance Commissioner, who shall furnish a blank for the purpose, may make, in order to ascertain its financial character and condition; and shall pay, upon filing each annual statement, the ^ee. sum of twenty dollars. And in the event of its failure to make such statement, on or before the first day of March of each year, the Commissioner shall revoke its License revoked ... on failure to make license, and thereafter, until such statement is made, statement, it shall be deemed to be doing business unlawfully in this State. When the Commissioner of this State shall commfs'sioMr™"''^ have reason to doubt the solvency of any such foreign youbted"'^""""^ '^ corporation, company or association, he shall accept a certificate from the Insurauce Commissioner, or like ofScer of the State under whose authority it was or- ganized, as a sufiScient proof of its solvency, and when, in the Commissioners' opinion, such corporation, com- pany or association is conducting its business fraudu- lently, or is not carrying out its contracts with mem- bers in good faith, he shall report the same to the At- torney General, who shall thereupon commence pro- Attorney General •J > ^ ^ to commence pro- ceedings against such corporation, company or asso- ceedmgs. elation, requiring it to show cause why its license to do business in this State should not be revoked. And ^vg|^^=4.h^j;*'- any such foreign company, association or society, now doing business in this State that shall refuse 'or neg- lect to comply with the provisions of this act, after the space of ninety days after its passage, shall be deemed and held to be doing business unlawfully. And if any 58 Penalty for viola- tion of law by officer, etc. Certain fraternal societies exempt- Repeal, officer, agent or employe of any such corporation or association, shall do business in this State,, or assist in or knowingly permit the same, unless such corporation or association has complied with the provisions of the laws of this State applicable to the same, he shall be deemed and held guilty of a misdemeanor, and upon conviction thereof, shall be fined not more than five hundred dollars, nor less than fifty dollars, or im- prisoned in the county jail not more than ninety days, or less than thirty, or both: Provided, That fraternal societies, as designated in section six of this act, or- ganized under the laws of any other state, securing members through the lodge system, who do not employ agents except for instituting lodges, doing business in this State, shall not be amenable to the provisions of this act, nor be required to pay the fees and make the annual statements to the Insurance Commissioner re- quired by this act, or the act to which this is a supple ment. Section 8. That all acts or parts of acts inconsistent herewith are hereby repealed. Approved— The 5th day of June, A. D. 1883. (P. L. 80.) ROBT. E. PATTISON. AN ACT Service of notice of loss by fire may be made on. gen- eral office or on agent who coun- tersigned the policy. Time within which notice and proof must be fur- nished. For the protection of persons sustaining loss of property by fire where the same is covered hy contracts of indemnity by fire insurance companies. Section 1. Be it enacted, &c.. That hereafter when any property shall be destroyed by fire in this Com- monwealth, where the same is covered by policies of insurance, either held by the assured or an assignee of the same as collateral security, the conditions of in- surance as to the notice of loss aud the furnishing of preliminary proofs, shall be deemed to have been com- plied with if the assured or the assignee, or either of them, shall furnish the company at its general oflSce, or to the agent of the company who countersigned the policy or policies of insurance, the notice of loss within ten days from the date of the fire, and the pre- liminary proofs within twenty days from said date: 59 Provided, That in case the agent who countersigned the policy or policies of insurance shall have been re- moved, or succeeded by some other agent of the com- pany after such policy ^^ as written, and prior to the date of the fire, then the notice and preliminary proofs service regulated „<■■„„„ • T , - ' Where agent has atoresaid may be served on any other agent of the removed. company, authorized to effect contracts of insurance and countersign policies of any such insurance com- panies. Approved— The 27th day of June, A. D. 1883. (P. L. 165.) ROBT. E. PATTISON. AN ACT In relation to mutual insurance companies. Section 1. Be it enacted, &c., That whenever proof Duty ot Attorney General when In- shall be submitted to the Insurance Commissioner surance commis- sioner has received showing that any execution against any mutual insur- So°n'has'^been^re- ance company of this Stale, in pursuance of judgment by™he sTerffi ''0°"'' obtained against said company, in any court of record ^^^ ''™''*"" <=°""'^- of this Commonwealth, has been returned nulla bona, by the sheriff of the county, in which said company is located, it shall be his duty to notify the Attorney General, who\, thereupon, shall apply to the court of common pleas of the county in which the seat of gov- ernment is, or may be located, or to a judge thereof Power and duty ot , . „ ' , , ,1 the court to order m vacation, for an order, upon such company, to show an assessment to TIT i 1 1 T TT ^® made. cause why its business should not be closed. Upon the hearing of such rule or order, the court, or judge aforesaid, shall direct the officers of said company to assess and collect, from the policy holders thereof, a sum sufficient to satisfy said judgment and execution, and all other claims against said company, or make any other order or orders in the premises, as may appear to said court, or judge, just and necessary; and, in case, it shall finally appear to said court, or judge, that the company aforesaid cannot collect from its members, sufficient funds to satisfy the claims against it, the said company shall be adjudged insol- 60 Or decree a disso- lution and appoint a receiver. vent, and the court, or judge aforesaid, shall decree its dissolution, and appoint a receiver to take charge of its effects and distribute the same among its creditors, under direction of the court. Approved— The 23d day of June, A. D. 1885. (P. L. 137.) ROBT. E. PATTISON. AN AOT Misrepresenta- tions and untrue statements, if made in good faith, shall not effect a forfeiture of the policy. Nor be a ground of defense In any suit. Unless they relate to some matter material to the risk. When wrong age has been given In good faith, real age to form the basis of payment. Relating to warranties in the applications for life insurance policies. Section 1. Be it enacted, &c., That hereafter when- ever the application for a policy of life insurance con- tains a clause of warranty of the truth of the answers therein contained, no misrepresentation or untrue statement in such application made in good faith by the applicant, shall effect a forfeiture or be a ground of defense in any suit brought upon any policy of in- surance issued upon the faith of such application, un- less such misrepresentation or untrue statement re- late to some matter material to the risk. Section 2. Whenever it shall be made to appear that a wrong age has been given in good faith in any application for a policy of life insurance, the com- pany shall not be required to pay the face value of the policy, but such sum as the premium paid would have purchased at the applicant's real age at the time of effecting the insurance. Approved— The 23d day of June, A. D. 188.5. (P. L. 134.) ROBT. E. PATTISON. AN ACT Defining the liability of steam boiler insurance companies. steam boiler In- Sectiou 1. Be it enacted, &c., That companies incor- panies to be liable poratcd uudcr the laws of this state, with power to in- fer the amount specified m policy sure against loss bv the explosion of steam boilers, of Insurance. t-> t, ± shall be liable for all immediate loss or damage, which the owner or owners of said boiler or their employes 61 may suifer or be liable for, in case of an explosion of the boilers mentioned in any policy of insurance issued by such company, for the amount specified therein. Approved— The 24th day of May, A. D. 1887. (P. L. 186.) JAMES A. BEAVEE. AN ACT To prevent the issue of unauthorized policies of insurance. Section 1. Be it enacted, &c., That it shall be unlaw- issue of unauthor- . , . , ■, . . , . , . 'zed policies of in- ful for any person, partnership, or association, to is- surance prohibit- sue, sign, seal, or in any manner execute any policy of insurance, contract or guaranty, against loss by fire or lightning, without authority expressly con- ferred by a charter of incorporation, given according to law; and every such policy, contract or guaranty, hereafter made, executed or issued, shall be void. Section 2. That any person offending against the ^na^nl a'llins't" provisions of this act, or any person who shall make, p^^'s'^s hereof. execute or issue any policy of insurance, contract or guaranty, against loss by fire or lightning, without be- ing so authorized by law, shall be deemed guilty of a misdemeanor, and upon conviction thereof, shall pay a fine, not exceeding two hundred dollars, to the Com- monwealth and the cost of prosecution; one-half of said fine shall be for the use of the informer : Provided, That nothing herein contained shall apply to any in- surance company authorized by the laws of any other state to issue policies and effect insurance against loss by fire or lighting, which shall have complied with the laws of this Commonwealth with respect to foreign insurance companies. Approved— The 4th day of February, A. D. 1870. (P. L. 14.) JOHN W. GEARY. 62 AN ACT To prevent any life insurance company or agent thereof doing business in Pennsylvania from making or permitting any dis- tinction or discrimination in favor of individuals, between in- surants of the same class and equal expectation of life, in the amount or payment of premiums or rates charged for policies of life or endowment insurance, and providing a penalty for violation thereof. Life companies Section 1. (As amended by act of 2d July, 1895, discriminating in P. L. 430.) Be it enactpd, &c., That no life insurance favor of insurants ^ ' of the same class, compauv doiug busiucss in Pennsylvania shall make or permit any distinction or discrimination in favor of individuals, between insurants of the same class and equal expectations of life, in the amount or payment of premiums or rates charged for policies of life or en- dowment insurance, or in the dividends or other bene- fits payable thereon, or in any other of the terms and conditions of the contracts it makes, nor shall any such company, or agent thereof, make any contract of insurance or agreement as to such contract, other than as plainly expressed in the policy issued thereon, nor shall any such company or agent pay or allow, or offer to pay or allow, nor shall any insurant receive, directly or indirectly, as inducements to insurance, any rebate of premium payable on the policy or any special. favor or advantage in the dividends or other benefit to ac- crue thereon, or any valuable consideration or induce- ment whatever, not specified in the p'olicy contract of insurance. Penalty. Section 2. Any life insurance company, its agent or agents, or any person violating section one of this act shall be guilty of a misdemeanor, and upon conviction thereof the oitender or offenders shall be sentenced to pay a fine of five hundred dollars on each and every violation where the amount of insurance is twenty- five thousand dollars or less, and tor every additional twenty-five thousand dollais insurance or less there shall be an additional penalty of five hundred dollars, and the offender or offenders so convicted shall, there- ujioji, be disiinalilicd from acting as life insurance agents for the jiciiod of three years thereafter, and the fine or fines shall be collected as fines are now bv law 63 collectible, one-half to be paid to the informer and one- half to the county treasurer for the benefit of the com- mon school fund in the county where the offence was committed. Approved— The 7th day of May, A. D. 1889. (P. L. 116.) JAMES A. BEAVER. AN ACT To confer additional powers upon flre, and fire and marine insurance companies. Section 1. Be it enacted, &c.. That from and after ^'™ companies the pasasge of this act, any fire, or fire and marine in- Small 'by ught- surance company, organized under a charter heretofore^ et".^' '°™'"'°''^' granted by this Commonwealth, or in pursuance of any law thereof relating to the incorporation of insurance companies, shall have the power, in addition to the powers already possessed, to grant insurance against loss or damage caused by lightning, when fire does not ensue, and also against loss or damage caused by tornadoes or cyclones, but nothing in this act con- tained shall be deemed as rendering any such com- pany liable for any such loss or damage, in the absence of a special agreement in writing issued by such com- pany, duly signed by its president and secretary. Approved— The 9th day of May, A. D. 1889. (P. L. 155.) JAMES A. BEAVER. AN ACT Authorizing the Insurance Commissioner to employ a skilled stenographer and typewriter in the Insurance Department. Section 1. Be it enacted by the Senate and House of Representatives of the Commonwealth of Penn- sylvania in General Assembly met, and it is here- by enacted by the authority of the same, That on and after the passage of this act, the Insurance Commis- sioner of this Commonwi-alth, be and he is hereby au- thorized to employ a skilled stenographer and type- fy'^J^Jfer^lna^he writer in the Insurance Department, at a salary of ^'"J'. twelve hundred dollars per annum. Approved— The 16th day of May, A. D. 1891. (P. h. 90.) ROBT. E. PATTISON. AN ACT Beneficial socie- ties: po-wers de- To authorize and empower certain corporations incorporated under an act, entitled "An act to provide for the incorpora- tion and regulation of certain corporations," approved the twenty-ninth day of April, Anno Domini one thousand eight hundred and seventy-four, to pay money or benefits to mem- bers in the event of their sickness, accident, disability or death, or in the event of any or all such contingencies. Section 1. Be it enacted by the Senate and House of Eepresentatives of the Commonwealth of Penn- sylvania, in General Assembly met, and it is hereby enacted by the authority of the same, That it shall be lawful for any corporation incorporated under the pro- visions of the ninth paragraph of section two of an act, entitled "An act to provide for the incorporation and regulation of certain corporations," approved the twenty-ninth day of April, Anno Domini one thou- sand eight hundred and seventy -four^ namely: "The maintenance of a society for beneficial or protective purposes to its members from funds collected therein," to pay, and to enter into contracts to pay, to each member thereof^ money or benefits not exceeding ten dollars per week in the event of sickness, accident or disability, or to pay, not exceeding the sum of two hundred and fifty dollars in the e.vent of death, or to pay money or benefits in the event of any or all of such Fraternal societies Contingencies: Provided, That the provisions of this act shall not apply to fraternal, benevolent, charitable or secret societies issuing beneficiary certificates, or paying benefits to their membership through the lodge system, or to insurance or relief associations formed by or for the exclusive benefit of the employes of cor- porations OT firms, or formed by or for the exclusive benefit of members of any religious corporation or as- sociation, but shall only apply to companies employing agents and doing a general public insurance business. Approved— The 23d day of May, A. D. 1891. (P. L. 107.) ROBT. E. PATTISON. Benefits not to ex- ceed $10 per week. 65 AN ACT To regulate the issue of policies of insurance and certificates at inspection, made by steam boiler insurance companies in all cities of the first class. Section 1. Be it enacted by the Senate and House of Representatives of the Commonwealth of Penn- sylvania in General Assembly met, and it is hereby enacted by the authority of the same, That whenever any steam boiler insurance company shall have com- plied with the laws of this State relative to insurance companies, it shall be authorized to inspect and insure certain companies boilers in all cities of the first class upon the following speot"botf€rs° '"' terms and conditions, and no others, namely: Section 2. Article 1. That neither such insurance officers of oom- ., J.- m> , ,, -,. ,-, . panies must not be company nor its executive officers shall, directlv or m- interested m saie ' •' of boilers. directly, be interested in the manufacture or sale of steam boilers, or of any of the appliances connected with steam engines and boilers; they shall employ f '^t "^^ ^'''"^'^ '"' skillful and competent persons for the inspection of steam boilers, who, before entering upon their duties, shall be duly sworn or affirmed that they will not ac- to be sworn. cept, for the performance of their duties, any money, gift, gratuity qr consideration whatsoever, from any person or persons other than the insurance company which employs them, and that they will not, directly or indirectly, be interested in the manufacture or sale of steam boilers, or of any of the appliances connected with steam engines and boilers. Article 2. That no policy of insurance shall be for a Policies ?( insur- ^ "^ ance limited to longer period than three years, and that no insurance y^™ °' '""^ shall be effected until the boiler shall have been in- spected and tested, and its inspection, test, condition, be^"^°cttd"untii attachments and indicators shall have been found to '°sp«'^"°°- conform in all respects to the provisions -of the existing city ordinance for the inspection of steam engines and boilers, and such ordinance or ordinances as may here- after be enacted, and the details of such inspection, fo^Z^ be ^11!% test, attachments and indicators shall have been fur- "'^ inspector. nished the city inspector in the form hereinafter pro- vided for. Article 3. That no policy of insurance issued by such JJlX^JS^i^ed" insurance company shall be valid, unless the premium upon such policy, including fee paid to city inspector 66 Certificate ot In- spection to Issue. Contents of certi- ficate. Cancellation of policy or reduction of premium ren- ders certificate in- valid. Duty of inspector. as hereinafter provided for, shall be equal to or exceed in amount one and one-half times the charges pre- scribed by the city ordinance for the inspection of steam boilers; nor shall such policy be cancelled or modified, so that the premium shall be less than the amount herein provided for, without notifying the city inspector thereof immediately, in writing, with the rea- sons therefor. Article 4. That whenever such insurance company shall have inspected a boiler or boilers^ as hereinbe- fore provided for, and shall have issued a policy of in- surance thereupon, it shall be the duty of such com- pany at the same time to issue a certificate of inspec- tion, which shall set forth that the inspection, tests, at- tachments and indicators have been found to be in ac- cordance with the requirements of the city ordinances. Such certificate shall also state the number of pounds pressure to which the boilers have been subjected in testing, together with the amount of pressure the user is authorized to carry within the same, in accord- ance with the provisions of the city ordinance in that case provided. It shall further state that said boiler or boilers so inspected, have been insured in said com- pany, and that the holder of the certificate is required to maintain it in a conspicuous place near the boiler or boilers to which it refers. Article 5. That if, for any cause, such insurance company shall cancel a policy of insurance, issued in accordance with the provisions of this act. or shall so modify the same that the premium shall be less than the amount hereinbefore provided for, such cancella- tion or modification shall render the certificate of in- spection previously given invalid, and notice of such cancellation shall be communicated to the city in- spector immediately. Article 6. It shall be the duty of the inspector of steam engines and boilers, in and for all cities of the first class, to furnish all steam boiler insurance com- panies, such as aforesaid, or their authorized agents, with printed forms properly prepared, with appro- priate headings, for the reception of the details of in- spection, such as are furnished to his own assistants, and, in addition thereto, a form of certificate setting forth that the premium upon the policy of insurance to be issued in connection, with the certificate of in- G7 spection, equals or exceeds the amount provided for in article third of section two of this act, and when these forms are returned to him properly filled up with the certificate duly signed, he shall record the same as provided for in the city ordinance; and the inspector of steam engines and boilers aforesaid is hereby authorized and required to afiSx his signature and oflficial seal to the certificate of inspection of such insurance companies: Provided, The details of inspec- tion as aforesaid shall show that the requirements of the city ordinances relative to boiler inspections have been fully complied with, and that all the provisions of this act relating to the duties of such insurance com- panies have been fulfilled. The inspector of steam engines and boilers in and ^^^^^"iSo'lity ° for all cities of the first class, shall receive for such t''^^^"'^- approval, one dollar for each boiler, which shall be paid into the city treasury, but said approval shall not be in effect for a longer period than one year from the date thereof. Any person or persons possessing such certificate of inspection duly approved as hereinbefore provided for, the same not having been rendered in- valid as provided for in this act, shall be deemed to possess the certificate of the inspector of steam en- gines and boilers for the purpose of the act of the as- sembly and the ordinance of the city to carry same into effect: Provided, That nothing in this act shall Proviso, affect the duty of the inspector to withold or with- draw such certificate whenever he may deem the en- gineer incompetent or unreliable, as provided for in the city ordinance, or whenever he may consider the boiler or boilers unsafe. Article 7. When the inspector aforesaid shall with- ^^Soiis'S^wnh- hold or withdraw a certificate of inspection, by reason toTomy'^^Sed of the incompetence or unreliability of the engineer, as provided for in this act and in the city ordinance, for the inspection of steam boilers, or whenever he may consider the boiler or boilers unsafe, he shall give to the user of the boiler or boilers, and the insurance company issuing the policy thereon, written notice of the same, which notice shall contain a statement of the reasons for such action; this statement to be made as aforesaid, shall be equivalent to the removal of the certificate, and in case the said boiler or boilers are in- sured, the withdrawal of the certificate, as provided 68 for, shall render the policy of insurance upon all boil- ers to which said certificate had reference, void and Proviso. of no effect: Provided, That nothing herein contained shall affect any policy of insurance now in force until- its expiration, which shall not exceed three years from the date thereof, except for violation of article seventh, section two. Inspectors vioiat- Sectiou 3. If any inspector of an insurance company Ing this act guilty , . ■ ■, ■• j. ,■,,■-,- of a. misdemeanor, herein provided for, shall aid in procuring an insurance of any stationary steam engine or boiler which does not comply with the conditions, or stand the test pro- vided for in the ordinance of all cities of the first class, relative to boiler inspection, or which is not provided with the attachments and indicators required by said ordinance, or by such ordinance or ordinances as may hereafter be enacted, or shall knowingly permit an in- surance to continue upon any stationary steam engine or boiler in said city, not furnished as aforesaid, he shall be deemed guilty of a misdemeanor, and upon conviction in the court of quarter sessions for the said county, shall, for each offense, be sentenced to pay a fine not exceeding five thousand dollars, and to un- penaity. dcrgo imprisonment in the jail of said county, either with or without labor, as the court may direct, for a Proviso. term not exceeding two years : Provided, That nothing in this act shall be construed as relieving any boiler insurance and inspection company from the payment of any fees due to the city treasurer for the boilers in- sured prior to the passage of this act; should in- surance be effected on any boiler or boilers, the owner or user of which possesses a certificate of the city in- spector to the amount of fee paid to the city treasurer by such insurance company, shall bear such portion to the stipulated fee, as the unexpired portion of the certificates bears to one year. Section 4. All acts and parts of acts inconsistent herewith are hereby repealed. Approved^ — The 11th day of March, 1891. (P. L. 5.) EOBT. E. PATTISON. 69 A SUPPLEMENT To an act approved the first day of May, one thousand eight hundred and seventy-six, entitled "A supplement to an act to establish an Insurance Department," approved the fourth day of April, one thousand eight hundred and seventy-three; providing for the incorporation and regulation of insurance companies, and relating to insurance agents and brokers, and foreign insurance companies, "further providing for the regulation of insurance corporations, incorporated for the purpose of insuring, upon the mutual principle, against per- sonal injury, disablement or death, resulting from traveling or general accident by land or water, or accidents resulting from the pursuit of any trade or business, and against in- juries of every nature and description to persons or property, causing loss, damaga or liability, and arising from any un- known, contingent event whatever, except the perils and risks enumerated in the first, second and fourth paragraphs of the third section of said supplemental act," approved the first day of May, one thousand eight hundred and seventy-six. Section 1. Be it enacted, &c., That every insurance 3?? regulation or ' ' «' certain mutual in- surance panles. corporation, incorporation for tlie purpose of insuring, ^"''='"'=« eom- upon the mutual principle, against personal injury, disablement or death, resulting from traveling or gen- eral accidents by land or water, or accident resulting from the pursuit of any trade or business, and against injuries of every nature and description to persons or property, causing loss, damage or liability, and arising from any unknown or contingent event whatever, ex- cept the perils and risks enumerated in the firsts second and fourth paragraphs of the third section of an act to which this act is a supplement, approved the first day of May, one thousand eight hundred and seventy- six, entitled "A supplement to an act to establish an In- surance Department, approved the fourth day of April, one thousand eight hundred and seventy-three, provid- ing for the incorporation and regulation of insurance companies, and relating to insurance agents and brok- ers, and foreign insurance comiumies," except mutual companies doing only a purely personal accident and health business, shall, from and after the passage of this act, accumulate and maintain a reinsurance reserve ^Sf Jntfnt™ or emergency fund, equal to one-half the preniiums on all unexpired risks that have less than one year to run, and a pro rata proportion of all premiums received on risks that have more than one year to run, accordin-g to the time of the expiration of such risks, and said ShaJI accumulate in a re- insurance reserve. 70 Additional reserve. Investment of. Assessment. fuud shall be known as the "reinsurance reserre:" Provided, however, That if the "reinsurance reserve," so determined, shall, in the opinion of the Insurance Commissioner, be insufficient for the protection of the policy holders and the payment of outstanding and accrued losses, the Insurance Commissioner shall re- quire such additional reserve to be maintained by said insurance company as, in his judgment, may be equi- table and just to bothpolicyholdersand company alike. Said "reinsurance reserve" shall be invested in the se- curities in which insurance companies are by law al- lowed to invest their funds, and if not already accumu- lated shall be accumulated by every such insurance corporation within six months from the date this act shall take effect, or within six months from the date of the incorporation or organization of any such in- surance corporation. Section 2. Every policy or renewal receipt, issued by such insurance corporation, shall set forth that the same is subject to assessment for any liability of said corporation which may accrue while said policy or re- newal receipt is in force, and it shall be unlawful for such insurance corporations to issue nonassessable policies, otherwise known as stock or cash policies. The directors or trustees of any such company may de- termine the amount of all assessments to be made upon their policies, but in no case shall the assessment be more than three times the whole amount of the pre- mium paid for the indemnity specified in the policy or renewal receipt. Section 3. It shall be unlawful for such insurance corporations to issue any policy or renewal receipt upon which said corporations may be liable in excess of the sum of ten thousand dollars (|10,000) on any one accident, and it shall be distinctly stated and expressed in all policies or renewal receipts that the entire lia- bility thereunder of said corporation is, by the terms of this act, restricted to ten thousand dollars (|10,000) on any one accident. Annua} statement. Section 4. It Shall be the duty of every such insur- ance corporation to make an annual statement to the Insurance Commissioner, before the first day of March of every year, upon the annual statement form, now issued by the Insurance Department of this Common- wealth, for the preparation and return of annual state- Amount of. Limit of liability. 71 ments of stock insurance companies other than life, fire and marine, and shall furnish such additional in- formation as the Insurance Commissioner may require. Said statement shall show the condition and business of said insurance corporation for the year ending on the preceding thirty-first day of December, and shall be signed by the president and secretary, and attested by their respective oaths and affirmations. Section 5. That the provisions of this act shall not Application ot. 3-PPly to relief associations organized or formed by cor- porations for the exclusive benefit of their employes nor to any fraternal association or order that does business under a ritualistic or lodge system. Section 6. All acts or parts of acts inconsistent with Repeal, the provisions of this act be and they are hereby re- pealed. Approved— The 10th day of June, A. D. 1901 (P. L. 546). WILLIAM A. STONE. AN ACT Making it a misdemeanor for any person to represent or adver- tise himself as the agent of an unauthorized or fictitious in- surance company within this Commonwealth. Section 1. Be it enacted by the Senate and House of Eepresentatives of the Commonwealth of Penn- sylvania in General Assembly met, and it is hereby enacted by the authority of the same^ That any per- son or persons representing or advertising himself or Misdemeanor to ^ ^ ^ '=> advertise as aerent themselves as the agent or agents of any insurance •" unauthorized o o >J company and fix- company of any other state or government, which has ^^ penalty. not complied with the laws of this State, by poster, circular letter, or in any other way or manner, shall be deemed to be guilty of a misdemeanor, and upon con- viction shall be sentenced to pay a fine of not more than one thousand dollars, at the discretion of the court. Section 2. That any person or persons representing or advertising himself or themselves as the agent or agents of any fictitious or spurious insurance company by poster, circular letter, or in any other way or man- ner, shall be deemed to be guilty of a misdemeanor 72 aud on conviction shall be sentenced to pay a fine of not more than flve_ hundred dollars and undergo im- prisonment, not more than three years, at the discre- tion of the court. Section 3. That all acts or parts of acts inconsistent herewith are hereby repealed. Approved— The 10th day of May, A. D. 1893. (P. L. 38.) EOBT. E. PATTISON. AN ACT Regulating the organization and incorporation of secret frater- nal beneficial societies, orders or associations and protecting the rights of members therein. Whereas, Fraternal beneficial societies, orders or associations have for many years been in existence in this Commonwealth; And whereas. The said societies, when properly managed, are beneficial to the laboring and business classes, but by reason of there being no statutory pro- visions regulating the conduct of their affairs the citi- zens of this Commonwealth are unprotected from fraudulent schemes and plans and from the misman- agement of officers and promoters of such societies, orders and associations, now therefore: Section 1. Be it enacted by the Senate and House of Representatives of the Commonwealth of Pennsyl- vania in General Assembly met, and it is hereby en- incorporation of actcd by the authority of the same. That from and beneficial sooie- after the passagc of this act, any fifteen or more per- sons, nine of whom shall be citizens and residents of this Commonwealth, having associated themselves as a secret fraternal beneficial society, order or associa- tion, may be incorporated under the provisions of this act and when so incorporated the said corporation shall have the following powers: General Powers. First. To have succession by its corporate name per- petually, subject to the power of the General Assem- bly under the Constitution of this Commonwealth. Second. To maintain and defend judicial proceed- ings. 73 Third. To make and use a common seal and alter the same at pleasure. Fourth, To be capable of taking, receivings purchas- ing, holding and transferring real and personal prop- erty for the purpose of its incorporation and for no other purpose. Fifth. To elect, appoint and remove the officers and agents for the management of its business and carry- ing out its objects and to allow them a suitable com- pensation. Sixth. To make a constitution and general laws for constitution ana the management of its affairs, not inconsistent with the Constitution and laws of this State, and to alter and amend the same when necessary. When so made, altered or amended, the said constitution and general laws shall be the law governing such society, order or association and its officers, subordinate lodges, coun- cils or bodies and the members in their relations to such societies, orders or associations in all their acts. Seventh. To provide in the constitution and general l^^'^^^^f^^"'^ ""^ laws for the payment to its members of sick, disability or death claims in such amounts as may be authorized and directed by said constitution and general laws. And also to provide for the payment, in not less than five years, to members whose beneficiary or distribu- tion period may then expire, of such sum not exceed- ing the maximum amount named in the beneficiary certificates as the constitution and general laws in force at the expiration of said period may authorize and direct. Eighth. To collect from its members by admission coj^|=t assess- fees, dues and assessments the funds necessary to carry on its operations and provide for the payment of its benefits, which assessments shall be made in manner and form as provided by its constitution and general laws. Ninth. To carry on its operations through supreme and subordinate bodies or lodges and to issue bene- ficiary or relief certificates in accordance with its con- stitution and general laws. Tenth. To enter into any obligation necessary for the transaction of its affairs. Section 2. The charter of such intended corporation must be subscribed by five or more persons citizens of this Commonwealth and shall set forth: 74 First. The name of the corporation. Second. The purpose for which it is formed. Third. The place where its principal office is to be located. Fourth. The names and residences of the sub- scribers. Fifth. The number and names of its officers with the term or terms of years for which they have been chosen, and also the names of not less than six di- rectors, managers or members of an executive commit- tee, who, together with the president of the society, order or association, shall form a board of directors, managers or executive committee, with the term or terms of years for which each is to serve. Notice to be given. Notice to Be Given. Section 3. Notice of the intention to apply for any such charter shall be inserted in two newspapers of general circulation printed in the proper county for three weeks, setting forth briefly the character and ob- ject of the corporation to be formed and the intention to make application therefor. Certificates to be aclcnowledged. Cliarter recorded. Certificates. Section 4. The said certificates of incorporation shall be acknowledged by at least five of those who subscribed to them, before any officer authorized to take the acknowledgments of deeds in the Common- wealth of Pennsylvania, to be their act and deed, and the same, being duly certified under the hand and official seal of the said officer shall be presented to a law judge of the county in which the principal office of the corporation is located, accompanied by proof of the publication of the notice of such application, who is hereby authorized to peruse and examine said in- strument and if the same shall be found to be in the proper form and within the purposes named in this act he shall endorse thereon these facts, and shall order and decree thereon that the charter is approved and that upon the recording of the said charter and order the subscribers thereto and their associates shall be a corporation for the purposes and upon the terms therein stated, and said order and charter shall be re- corded in the office for the recording of deeds in and for the county aforesaid and from thenceforth the persons named therein and subscribing the same and their associates and successors shall be a corporation by the name therein given. No such corporation, how- ever, shall engage in business until at least twenty-five persons have subscribed in writing to be beneficiary members therein in the aggregate amount of at least five thousand dollars, and have each paid in one full assessment in cash amounting in the aggregate to at least one per centum of the amount in which they are beneficiary, nor until a certificate signed and sworn certificates med to by three of the highest officers of the corporation commissioner. has been filed with the Insurance Commissioner stat- ing that the requirements of this section have been complied with. Annual Eeports. Section 5. Every such fraternal society, order or as- Fiie report, sociation incorporated under or accepting the provi- sions of this act shall, on or before the first day of March of each year, make and file with the Insurance Commissioner a report of its affairs and operations during the year ending on the thirty-first day of De- cember immediately preceding; such report shall be upon blank forms to be provided by the Insurance Commissioner and shall be verified, under oath, by the duly authorized officers of such society, order or association and shall be in lieu of all other reports re- quired by any other law; the said report shall con- Report to contain. tain answers to the following questions: First. Number of members admitted during the year and number of beneficiary certificates issued. Second. Amount of benefits named in said certifi- cates. Third. Number of benefit liabilities incurred during the year. Fourth. Number of benefit liabilities paid during the year. Fifth. The amount received from each assessment during the year and the number of assessments levied. Sixth. Total amount paid members, beneficiaries, legal representatitves or heirs. Seventh. Number and kinds of claims compromised or resisted and brief statement of reasons. 76 Books, etc., sub- ject to inspection. Failure to malte report. Ofllcer to give bond. Eighth. Does the corporation charge aanual or other periodical dues or admissioa fees. Ninth. Total amount of salaries paid to officers. Tenth. Has the society a reserve fund. Eleventh. If so, hovs' is it created and for what pur- pose, the amount thereof, and how invested. Twelfth. If the custody and investment of said re- serve fund is entrusted to any trust companies or cor- porations in the Commonwealth of Pennsylvania, state the name of said corporation or corporations, the capi- tal stock of the same, the amount of capital stock paid in, the surplus, if any, and the place of business of said corporation or corporations. Thirteenth. If the custody and investment of said reserve fund is entrusted to any of the officers of the said secret fraternal beneficial society, give the names and residences of the said officers^ the names and resi- dences of their sureties^ the amount of their bonds and the place or person with whom the said bonds are deposited. Fourteenth. State the amount of said reserve fund. Fifteenth. Number ot certificates of membership lapsed during the year. Sixteenth. Number in force at beginning and end of year. Seventeenth. Date of organization and incorpora- tion and county where incorporated. All such societies, orders or associations, together with their books, papers and vouchers, shall be subject to visitation and inspection by the Insurance Commis- sioner or such person or persons as he may at any time designate. Any such society, order or associa- tion refusing or neglecting to make such report to the Insurance Commissioner may, upon the suit of the Commonwealth, be enjoined by the court of common pleas of Dauphin county from carrying on any business until such report shall be made. Section 6. Every oiScer of any corporation accept- ing the provisions of or doing business under this act shall give bond with sufficient surety for the faithful performance of his duties, and for the safe custody of the mone.y.s and securities and other property which may be in his possession and control, which bond shall be for such amount as the board of directors, man- agers, executive committee or supreme governing body 77 may require: Provided however, That when the re- serve funds of any corporation organized hereunder umess funds are ,. ., . . deposited. or accepting the provisions hereof are deposited for investment with any trust companies or financial cor- porations chartered by the Commonwealth of Pennsyl- vania, the officers of said corporation so depositing its reserve funds need not be bonded for any of the moneys or securities in the custody or possession of said trust companies or financial corporations. The Insurance Commissioner shall have the power and au- thority at all times to examine said bonds at the place of business of the corporation, and there to inquire of and receive answers from the officers of the corpora- tions as to their knowledge of the financial standing of the surety or sureties on any of said bonds. Section 7. Any beneficial socletv, order or associa- Associations nere- ^ ^ tofore formed to tion heretofore incorporated under any act of the Gen- ^^joy privileges oj eral Assembly of the Commonwealth of Pennsylvania for beneficial or protective purposes to its members from funds collected therein, and which has been carrying on the operations of a secret fraternal so- ciety, order or association, and any unincorporated society, order or association which has been carrying on said operations, shall have and enjoy the rights and privileges conferred by this act, upon filing with the Insurance Commissioner a certificate or declara- tion, signed by its supreme officers accepting the pro- visions of this act and agreeing to abide by all the re- quirements herein made: Provided, however, That nothing in this act shall apply to any incorporated or unincorporated fraternal beneficial society not accept- ing the provisions hereof or be so construed as to com- pel any such society to accept its provisions or become incorporated thereunder. Approved— The 6th day of April, A. D. 1893. (P. L. 10.) ROBT. E. PATTISON. 78 Create lodges. Pay benefits. AN ACT Defining fraternal beneficial and relief societies and their status, authorizing them to create subordinate lodges and to pay benefits upon the sickness, disability or death of their members from funds collected by dues and assessments therein providing for their registration in the office of the In- surance Commissioner, and requiring that they shall make annual reports to him, and exempting them from taxation and from the supervision of the Insurance Commissioner. Section 1. Be it enacted by the Senate and House of Representatives of tlie Commonwealth of Pennsyl- vania in General Assembly met, and it is hereby en- acted by the authority of the same, That it shall be lawful for any corporation society or voluntary asso- ciation, now or hereafter formed or organized and carried on for the sole beneiit of its members and their beneficiaries and not for profit, to have and create subordinate lodges with ritualistic form of work and a representative form of government and to issue cer- tificates of membership, make provision for the pay- ment of benefits in case of sickness, disability or death of its members, subject to their compliance with its constitution and laws in which the fund from which the payment of such benefits shall be made, and the expenses of such association shall be defrayed and shall be derived from assessments or dues collected from its members, and in which the payment of death benefits shall be to families, heirs, blood relatives, afSanced husband or affianced wife of or to persons de- pendent upon the members. Such corporation, society or voluntary association now existing, or hereafter formed or organized, shall be, and is hereby declared to be a fraternal beneficial society, and shall be governed by this act, and shall be exempt from the provisions of insurance laws of this State, and no law hereafter passed shall be applied to them unless they be expressly designated therein. All Exempt from tax. funds of such fraternal beneficial societies shall be ex- empt from the State tax on money at interest. Section 2. Within sixty days after the passage of this act all supreme or grand or other bodies which may be known to constitute the head of any fraternal beneficial society doing business within this Common- wealth, as provided in the first section of this act, To be known as fraternal benefi- cial societies. 79 shall file through its proper officers or representatives supreme bodies to ^ file copies of con- with the Insurance Commissioner a copy of their con- stituuon and ^•^ laws. stitution and general laws, and annually any altera- tions, changes or amendments, whose duty it shall be to register them, without charge, in the Insurance De- partment as fraternal beneficial societies and when so registered, they shall be exempt from any and all fees to be registered. and taxes imposed by existing laws upon insurance companies reporting to said department. Section 3. The executive ofticers of each such su- preme or grand lodge of any fraternal beneficial so- ciety doing business in this Commonwealth shall, on or before the first day of March, of each year, make a to make report. report under oath, on a blank to be provided by the Insurance Commissioner, which report shall be printed as a part of his annual report of the operations of said society in this Commonwealth for the preceding fiscal year ending December thirty-first, in forms as follows: I Name of the society or association, with its principal oflBce or place of business. II. Income. First. Annual dues. Second. Assessments. Third. All other sources. Fourth. Total income during the year. III. Expenditures. First. Losses and claims paid. Second. Salary and other compensation of ofScers. Third. Kent. Fourth. Oflflce expenses. Fifth. All other expenditures. 80 IV. Assets. First. Real estate. Second. Loans on mortgages. Third. Bonds and stock owned absolutely. Fourth. Cash in oflRce or bank. Fifth. Due from members on assessments called on pending collection. Sixth. All other assets. (Stating character.) V. Liabilities. First. Losses and claims unpaid. Second. Salaries due and unpaid. Third. Borrowed money. Fourth. All other liabilities. (Stating character.) VI. Exhibit of Membership. First. Total membership in good standing December thirtj'-flrst, one thousand hundred and . Number. Second. Total number of members received by ini- tiation or readmission during the year. Number. Third. Total. Number. Fourth. Deduct members retiring by withdrawal or suspension during the year. Number. Fifth. Deduct members who have died during the year. Number. Sixth. Total members in good standing December thirty-first, one thousand hundred and . Number. Societies faiiingj;o Sectiou 4. AiiT fraternal beneficial society failing to register or report. ■ ^ ^ register as required by the second section of this act or to make the report required by the third section of this act, shall be prohibited from doing business in this State, and the officers of societies violating these requirements shall be deemed guilty of a misdemeanor Penalty. and upou couviction shall be fined not exceeding one hundred dollai's for each offense: Provided always, That nothing in this act shall be so construed as to give the Insurance Commissioner any supervision or 81 authority in any matter or thing whatsoever pertain- ing to the business of any fraternal society as pre- scribed in the first section of this act, other than is expressly provided for in the second and third sections certain assooia- , p * T .1 tions exempt. hereof: And provided further, That all beneficial and relief associations formed by churches, societies, classes, firms or corporations with or without ritualis- tic form of work, the privileges and membership in which are confined to the members of such churches, societies or classes and to members and employes of such firms or corporations, shall be exempt from the provisions of this act: And provided further, That this act shall not apply to any secret fraternal benefi- cial society, order or association which has for one of its objects, the paym.ent of a sum not exceeding a cer- tain amount at the expiration of a fixed period. Approved— The 6th day of April, A. D. 1893. (P. L. 7.) KOBT. E. PATTISON. shall be paid. AN ACT Defining to whom the benefit certificates issued by fraternal so- cieties paying benefits upon the death of their members by mutual assessments shall be paid, where the person or mem- ber dies without leaving a person designated tO' receive the same. Section 1. Be it enacted by the Senate and House of Representatives of the Commonwealth of Pennsyl- vania in General Assembly met, and it is hereby en- acted by the authority of the same, That from and °fe"^t"^eer«floa°S' after the passage of this act any benefit certificate or certificates now or hereafter issued by any corpora- tion, society or voluntary association now or here- after formed or organized and carried on for the sole benefit of its members and their beneficiaries and not for profit, when any person or persons shall have been designated by the members as his beneficiary or bene- ficiaries shall die prior to the death of the member without any new designation, and no provision is made by the laws of the society as to whom shall take the share designated to go to such deceased benefi- ciary or beneficiaries, in all such cases the amount or share designated to be paid to such deceased bene- 6 82 flciary or beneficiaries shall be payable to the widow and children of such deceased member, if any, share and share alike, and in case none such be living, then to such other relatives of such deceased members, and in such proportions as they are entitled to receive under a distribution of the personal estate by the laws of the domicile of such member. Approved— The 24th day of May, A. D. 1893. (P. L. 126.) ROBT. E. PATTISON. Shall appoint In- surance Commis- sioner as attorney on whom process can be served. AN ACT TO' provide for the person upon whom service shall be had by legal process in the case of fraternal beneficial and relief so- cieties whose status is defined by the act of Assembly, enti- tled "An act defining fraternal beneficial and relief societies and their status, authorizing them to create subordinate lodges and to pay benefits, upon the sickness, disability or death of their members, from funds collected by dues and assessments therein, providing for their registration in the office of the Insurance Commissioner, and requiring that they shall make annual reports to him, and exempting them from taxation and from the supervision of the Insurance Commis- tioner," approved the sixth day of April, Anno Domini one thousand eight hundred and ninety-three. Section 1. Be it enacted, &c., That any fraternal beneficial or relief society, as defined under the provi- sions of the first section of the act of Assembly, en- titled "An act defining- fraternal beneficial and relief societies and their status, authorizing them to create subordinate lodges and to pay benefits, upon the sick- ness, disability or death of their members, from funds collected by dues and assessments therein, providing for their registration in the office of the Insurance Commissioner, and requiring that they shall make annual reports to him, and exempting them from taxa- tion and from the supervision of the Insurance Com- missioner," approved the sixth day of April, Anno Domini one thousand eight hundred and ninety-three, now doing or hereafter admitted to do business within this State, and not having its principal office within this State, and not being organized under the laws of this State shall appoint, in writing, the Commissioner of Insurance or his successor in office to be its true and lawful attorney upon whom all lawful process in any Service on. attor- ney. 83 action or proceeding against it may be served^ and in such writing shall agree that any lawful process against it which is served on said attorney shall be of the same legal force and validity as if served upon the association, and that the authority shall continue ^j^''^''^ °' ^^'^- in force so long as any liability remains outstanding in this State; copies of such certificate certified by said cafe'thaii "be'lv'! Commissioner of Insurance shall be deemed suflicient '^™'^®' evidence thereof and shall be admitted in evidence with the same force and effect as the original thereof might be admitted. Service upon such attorney shall be deemed suflicient service upon such association. When legal process against any such association is Tevwea^iSsurla^ce -, .j/->j .. (IT 1111 Commissioner served upon said Commissioner of Insurance he shall shaii nouty asso- immediately notify the association of such service, by letter prepaid and directed to its supreme secretary or corresponding officer, and shall, within two days after such service, forward in the same manner a tt^liif^if^ '^°^^ copy of the process served on him to such ofiicer: Pro- vided however, That such process shall be served at shafi°be'^se?v^. least thirty days prior to the return day of the same. The plaintiff in such process so served shall pay to the Commissioner of Insurance at the time of such service a fee of three dollars, which shall be recovered by him insurance ^com-° », . ,-. ,./.-. .-i.i-i .i_ missioner. as part of the taxable costs if he prevails in the suit. The Commissioner of Insurance shall keep a record of celses. " '"^°" all processes served upon him, which record shall show the day and hour when such service was made. Section 2. All societies mentioned in the first sec- mus™compV with , . , . .,1 . ji • i^j_ j_ provisions of act, tion of this act now doing business within this State etc. shall comply with the provisions of this act within thirty days from the passage of the same, and all such societies hereafter applying for authority to do busi- ness in this State shall comply with its provisions as a condition precedent to doing business in the State. Approved— The 25th day of June, A. D. 1895. (P. L. 280.) ' DANIEL H. HASTINGS. 84 Surety company can act as surety of guarantor. Company must be qualified to act as surety under ex- isting la\^^. Must have paid up capital stock of $250,000. How Invested. AN ACT Relative to bonds, unaertakings, recognizances, guarantees and other obligations required or permitted to be made, given, tendered 9r filed with surety or sureties, and to the accept- ance as surety or guarantor thereupon of companies qualified to act as such. Section 1. Be it enacted, &c., That whenever any bond, undertaldng, recognizance or other obligation is, by law, or the charter, ordinances, rules or regulations of any municipality, board, body, organization or pub- lic officer, required or permitted to be made, given, tendered or filed with surety or sureties, and whenever the performance of any act, duty or obligation, or the refraining from any act, is required or permitted to be guaranteed, such bond, undertaking, obligatiouj recognizance or guarantee will he executed by a surety company qualified to act as surety or guarantor as hereinafter provided, and such execution by such com- pany of such bond, undertaking, recognizance, obliga- tion or guarantee shall be in all respects a full and complete compliance with every requirement of every law, charter, ordinance, rule or regulation, that such bond, undertaking, obligation, recognizance or guar- antee shall be executed by one surety or by one or more sureties, or that such sureties shall be residents or householders or freeholders, or either, or both, or possess any other (jualification. Section 2. That such company, to be qualified to so act as surety or guarantor, must be authorized under the laws of any State or country where incorporated; and its charter to guarantee the fidelity of persons holding places of public or private trust, and to guar- antee the performance of contracts other than insur- ance policies, and to execute bonds and undertak- ings required or permitted in actions or proceedings or by law allowed, must comply with the requirements of the laws of this State applicable to such company in doing business therein, must have a paid up, unim- paired and safely invested capital of at least two hun- dred and fifty thousand dollars, must have at least one hundred thousand dollars invested in securities created by the laws of the United States, or by or under the laws of the State or country wherein it is incorporated, or in other safe, marketable and interest 85 bearing stocks and securities, the value of which shall be at or above par and deposited with or held bv the securities to be r .... •" deposited witli In- insurance Commissioner or other corresponding- officer surance commis- of the State or country where such company is domi- ciled, or any State of the United States in which it is authorized to transact business, in trust for the benefit of the holders of the obligations of such company; its liabilities must not exceed its available assets, which Liabilities. said liabilities, however, shall be taken to be its capital stock, its outstanding debts and a premium reserved equal to fifty per centum of the annual premum on all outstanding risks in force; such company shall also, before transacting business in this State under this act, file with the Insurance Commissioner a certified certified copy of charter to be tiled copy of its charter or act of incorporation, a written comm'iEli'one"''^ application to be authorized to business under this act, and a statement signed and sworn to by its presi- aiso written ap- .^ r- plication and dent or one of its vice presidents and its secretary or statement. one of its assistant secretaries stating the amount of its paid up cash capital, particularly each item of in- contents of state- vestment, the amount of premium on existing bonds upon which it is surety, the amount of liability for unearned portion thereof estimated at fifty per centum of the annual premium on all outstanding premiums for one year or less, and pro rata for terms of more than one year_, stating also the amount of its outstand- ing debts of all kinds; and if such company is incor- porated under the laws of any other State or country than this State, it shall, in addition thereto, file a power of attorney appointing some resident of this State upon whom service process may be made as re- Power of attorney ^ JT ./ to be executed by quired by existing laws, whereupon, if the Insurance ot^^^gf^^e o "^ Commissioner be satisfied that such company is sol- '=°"""'y vent and has the cash capital herein provided for and insurance com- ^ ^ missioner shall is- surplus assets in excess of its capital stock, its out- cSmpl.ny''ln'd "* standing debts and the premium reserve specified, and ''=^"*^- that it has, in all respects, complied with and is quali- fied under this act, he shall issue to such company and to each of its agents in this State his certificate that it is authorized to become and be accepted as sole surety on all bonds, undertakings and obligations required or permitted by law or the charter, ordinances, rules or regulations of any municipality, board, body, or- ganization or public officer, which said certificate shall certificate phaii & ^ ' be conclusive be conclusive proof of the solvency and credit of such i'''°°' "' solvency. 86 Annual statement to Insurance Com- missioner. And also certifi- cate from otncer with whom deposit is made. Contents of certi- ficate. Deposit of moneys for which sureties are liable. Withdrawal of moneys. Compajay cannot deny corporate power. Repeal. company for all purposes and of its right to be so ac- cepted as such sole surety and its sufficiency as such. Such company shall also annually, in the month of January, file with the Insurance Commissioner a state- ment similar to that hereinbefore in this section pro- vided for, and shall also furnish him with a certificate from the oflicer with whom the deposit herein men- tioned is required to be made, describing such securi- ties so deposited and the manner in which they are held hy him, and stating that he is satisfied that such securities are fully worth one hundred thousand dol- lars, and also shall furnish the Insurance Commis- sioner with such other information touching the con- dition and credit as he may require, signed and sworn to as in this section required. Section 3. That it shall be lawful for any party of whom a bond or undertaking is required to agree with his sureties for the deposit of any or all moneys for which said sureties are or may be held responsible with a trust company authorized by law to receive such deposit, if such deposit is otherwise proper, and for the safe keeping of any and all other depositable assets for which said sureties are or may be held re- sponsible with a safe deposit company authorized by law to do business as such, in such manner as to pre- vent the withdrawal of such moneys and assets, or any part thereof, except with the written consent of such sureties^ or an order of the court made on such notice to them as such court may direct. Section 4. That no company having signed such a bond, undertaking or obligation shall be permitted to deny its corporative power to execute such instru- ments or incur such liability in any proceeding to en- force liability against it thereunder. Section 5. That all laws or parts of laws inconsistent herewith are hereby repealed. Approved— The 26th day of June, A. D. 1895. (P. L. 343.) ' DANIEL H. HASTINGS. 87 AN ACT Providing for the creation of the office of fire marshal in cities of the third class, defining his powers and duties, fixing the penalties for preventing or obstructing him in the discharge of his duties, and providing for liearings before such marshal. Section. 1. Be it enacted, «&c., That the councils of omce oi Are mar- every city of the third class in this Commonwealth created by cities of third class. may, by ordmance, provide for the creation of the oflice of fire marshal to be appointed by the mayor, by and with the approval and consent of the select coun- cil, biennially, and such fire marshal, under the in- structions and orders of the mayor, be authorized to powers of Are enter any building or premises wherein a fire has at ™"^ any time occurred for the purpose of making such ex- amination as may be deemed necessary to ascertain the cause of burning, and any person preventing or obstructing or attempting to prevent or obstruct said Penalty for ob- fire marshal while in the discharge of the duty afore- fn™^s"work.^'^^ ' said shall be guilty of a misdemeanor, and on convic- tion thereof shall be fined in a sum not exceeding fifty dollars^ or undergo an imprisonment not exceeding three calendar months, or both, at the discretion of the court. I Section 2. And that the mayor of such city shall be ^l^'S^^'STo ap-^ and is hereby authorized, whenever in his judgment the sre 'ma^rs'hS. " the occasion demands it, to issue subpoena in the name of the State of Pennsylvania to any person or persons requiring them to attend before him or the fire marshal at such time and place as may be named in said sub- poena, then and there to testify, under oath or affirma- tion, which the fire marshal in the absence of the fewer to adminis- ' ter oatns. mayor is hereby empowered to administer, as to the origin of the fire occurring within the bounds of such city, and also as to any facts or circumstances that may be deemed important to secure the detection and conviction of any party or parties guilty of the offense of arson or attempted arson. Section 3. If councils of such city shall by ordinance ch'|; °/ ^"""dV so provide, the chief of police or the chief of the fire g^^rSirshS^'' *=" department of such city may be made ex-ofiacio fire marshal thereof, and in such case all the powers and 88 Repeal. duties herein given to or imposed upon such fire mar- shal shall be enjoyed and exercised by such chief of police or chief of the fire department, as the case may be. Section 4. All acts or parts of acts inconsistent here- with are hereby repealed. Approved—The 24th day of June, A. D. 1895. (P. L. 263.) DANIEL H. HASTINGS. AN ACT President, agent, etc.. may form s corporation. Shall be known as salvage corps. Association may maintain a corps of men. Their duties. Shall be subject to rules of Are de- partment. And to orders of chief of depart- ment. Apparatus. Powers. To provide for the organization, support and maintenance of associations formed for the protection and saving of human life and of property in case of fire in cities of the first class. Section 1. Be it enacted, &c., That it shall and may be lawful for the president of any corporatioci, com- pany or association, and 'agent of any corporation, company or association, doing the business of fire in- surance in cities of the first class in this Common- wealth, or any of them, to associate themselves to- gether and become a body corporate with all the powers of a corporation upon compliance with the general laws for erection of corporations, approved April twenty-ninth, Anno Domini one thousand eight hundred and seventy-four, and its supplements, for the purpose of protecting life and property from fire in said cities. Such corporations shall be known as the salvage corps of the city in which they shall be organized. Section 2. Every such corporation shall have power to appoint and maintain a corps of men, with proper officers, whose duty it shall be, as far as practicable, to protect life and property from damage by fire, subject to such general rules and regulations relating to going to and returning from fires as are in force in the fire departments of such cities, with the same priv- ileges of right of way as belong to said departments. And while in attendance at any fire, such corps of men and oflScers shall be subject to the orders of the chief of the fire department of such city wherein it shall be located. Said corporation shall provide suit- able apparatus to save and preserve life and property at or after any fire, and power is hereby granted to 89 such corps, and its officers, to enter any building ou fire, or whicli is immediately exposed to or in danger of taldng fire from otlier buining buildings, to protect and save life and property therein, and to remove such property, or any part thereof, at or immediately after a fire: Provided however, That nothing in this Proviso. act shall be so construed as to lessen in any way the authority of the officers and members of the fire de- partment. Section 3. In the month of June in each year there Annual meeting. shall be held a meeting of every corporation created under or accepting the provisions of this act, of which ten days' previous notice shall be inserted in at least Notice of meeting. two newspapers published in the city wherein such corporation shall be located, at which meeting each wnat companies ^ ■ may be represent- mcorporated insurance company, or unincorporated ^'^■ insurance association^ doing business in such city, whether its officers or agents may be members of such corporation or not, shall have the right to be repre- sented by one of its officers or its agents, and each or- ganization represented at such meeting shall be en- titled to one vote. A majority of the whole number so Majority of the r6pr6SGnta,tivcs represented shall have power to decide upon the ques- shaii aeciae cer- tion of sustaining the corps of men and officers or cor- poration hereinbefore provided for, and of fixing the maximum amount of expenses which shall be incurred Maximum amount ^ of expenses. therefor during the fiscal year then next to ensue, which amount shall in no case exceed two per centum on the aggregate of premiums returned as hereinafter provided for; and the whole of such amount, or so Assessment of ex- ^ ' penses. much thereof as may be necessary, shall- be assessed upon the organizations belonging to said corporation and upon all other organizations and agencies doing fire insurance business in such city wherein said cor- poration is established, in proportion to the several proporuoned! '"'" amounts of premiums returned as received by each as hereinafter provided, and such assessments shall be payable within thirty days after they are levied, and ^^^SowToulcted. shall be collectible by such corporation in any court of law of the State of Pennsylvania. Section 4. To provide for the payment of persons fo73"'™'p,°^e5^"- employed, and to maintain the buildings and appar- ^^\^^l^^l^^^^. atus for saving life and property contemplated, every such corporation is empowered to require a statement to be furnished semi-annually, by all insurance com- H^^^^^^"^ 90 Shall be sworn to. Delivered to treas- urer of corpora- tion. Wliat returns, ehall specify. Penalty for failure to make return. Certain corpora- tions heretofore created shall not be abolished. But shall flle ac- ceptance with Au- ditor General. panics, associations, underwriters, agents or persons, of tlie aggregate amount of premiums received for in- suring real and personal property in the city where such corporation is located from loss by fire for and during the six months next preceding the thirtieth day of June and the thirty-first day of December in each year, which statement shall be sworn to by the president or secretary of such insurance company or association, or by the agent or person so acting and affecting such insurance in said city, and shall be handed to the treasurer of such corporation provided for by this act within thirty days after the time to which such returns are to be made; said returns shall specify: First. The amount of gross premiums collected by such insurance company or association or agent dur- ing said six months on term policies of all kinds on risks located in said cities, deducting only premiums paid for re-insurance or cancellations of such term poli- cies during said period. Second. The gross amount of deposits on all per- petual policies in force on the last day of said six months on risks located in such cities. It is hereby provided, however, that the aggregate sum on which assessments shall be levied by said salvage corps shall be the amount of premiums on term policies ascer- tained as above recited, and the premium produced by the amount of perpetual deposits held by said in- surance companies, associations or agents, calculated at four per centum per annum. Section 5. Every person or organization neglecting to make such return within thirty days after such notice, shall forfeit and pay the sum of one hundred dollars for every month of such default; said fine to be recovered by suit as other fines and taxes are now by law recoverable. Section 6. In every city wherein any corporation has heretofore been created by law for the purpose of protecting and saving life and property in or contigu- ous to burning buildings and to remove or take charge of such property, or any part thereof, when necessary, such corporation shall not be abolished by this act, but upon filing with the Auditor General a certificate or acceptance of the provision hereof, shall be and continue hereunder as the salvage corps of such city 91 wherein it is located, and enjoy all the powers and privileges of this act: Provided however, If it shall Proviso. not so file its acceptance within three months after the passage of this act, then the persons designed in this act may organize another corporation to execute the objects and purposes of this act and thereupon the charter of every such corporation so refusing to accept shall be and is hereby repealed. Approved— The 22d day of May, A. D. 1895. (P. L. 102.) DANIEL H. HASTINGS. AN ACT To enable miaors, above the age of eighteen years, to contract for membership in fraternal and beneficial societies. Section 1. Be it enacted, &c., That from and after the passage of this act it shall be lawful for minors^ who have attained the age of eighteen years, to make all needful contracts to become members of fraternal and beneficial societies lawfully organized and doing business under the laws of this Commonwealth. Approved— The 24th day of June, A. D. 1897! (P. L. 204.) DANIEL H. HASTINGS. AN ACT In relation to reinsurance and the transaction of business by- fire or marine insurance companies or associations, other- wise than through resident agents, and the transaction of such business by or with unauthorized companies. Section 1. Be it enacted, &c., That no fire insurance insurance by com- panies not incor- company or association not mcorporated under the ^°^^^^ »>y ">'= laws of this State, authorized to trar)sact business herein, shall make, write, place, or cause to be made, written or placed, any policy, duplicate policy, or con- tract of insurance of any kind or character, or any general or floating policy upon property situated or located in this State, except after the said risk has Risks must have * ^ 7 4. ^ been approved In been approved in writing by an agent who is a resident ^/^''"l^^y resi-_ of this State, regularly commissioned and licensed to f^^ll"^'^^ ^"'> "- transact insurance business herein, who shall counter- sign all policies so issued, and receive the commission 92 No person shall aid or help in tlie placing of insur- ance on property in this State with a foreign corpora- tion unless he shall first secure a license. Issue of policies at principal ofHce. Rolling stock. Property of com- mon carriers. No company shall re-insure in a company not au- thorized to do bu- siness in this State. Risks not to be transferred or ceded. thereon when the premium is paid, to the end that the State may receive the taxes required by law to be paid on the premiums collected for insurance on all property located in this State; and that no person shall pay or forward any premiums, application for insur- ance, or in any manner secure, help or aid in the placing of any fire insurance, or effect any contract of insurance upon real or personal property within this Commonwealth, directly or indirectly, with any insurance company or association not of this State, or which has not been authorized to do business in this State, unless such person or persons shall first secure a license from the Insurance Commissioner of this State, as now provided by law. Nothing in this act shall be construed to prevent any such insurance com- pany or association, authorized to transact business in this State, from issuing policies at its principal or department offices covering property in this State: Provided, That such policies are issued upon applica- tions procured and submitted to such company by agents who are residents of this State, and licensed to transact the business of insurance herein, and who shall countersign all policies so issued and receive the commission thereon when paid: Provided, however, That no part of this section is intended to or shall ap- ply to direct insurance covering the rolling stock of railroad corporations, or property in transit while in the possession and custody of railroad corporations or other common carriers, nor to the property of such common carriers, used or employed by them in their business as common carriers of freight, merchandise or passengers. Section 2. No fire insurance company or association shall reinsure, in any manner whatsoever, the whole or any part of a risk taken by it on property situated or located in this State, in any other company or association not authorized to transact business in this State. No fire insurance company or association shall transfer or cede, in any manner whatsoever, to any company or association not authorized to do business in this State any risk or liability, or any part thereof, assumed by it under any form or contract of insurance covering property located in this State, including any risk or liability under any general or floating policy, or any agreement, general, floating or specific, to re- 93 insure excess loss by one or more fires. No fire in- Risks ot foreign companies, not surance company or association shall reinsure or as- authorized to do ■^ ^ business in this sume, as a reinsuring company or otherwise, in any fssi^ed?''eto'!°' ^^ manner or form whatsoever, the whole or any part of any rislt oi; liability, covering property located in this State, of any insurance company or association not authorized to transact business in this State. Section 3. Whenever the Insurance Commissioner insurance com- . . missioner may shall nave or receive information that anv fire insur- examine an •^ books, records, ance company or association, not incorporated under ^"=- the laws of this State, has violated any of the pro- visions of section one of this act, he is authorized, at the expense of such company or association, to ex- amine by himself or his accredited representative at the principal office or offices of such company or asso- ciation, located in the United States of America or in any foreign country, and also at such other offices or agencies of such company or association as he may deem proper, all books, records and papers of such company or association, and may examine, under oath, ^^^rf'^""''^ '"^ the officers, managers and agents of such company or association as to such violation or violations. The refusal of any such company or association to submit ^^^Ji'JftUe'evweSce' to such examination or to exhibit its books and records °' violation ot act. for inspection, shall be presumptive evidence that it has violated the provisions of the first section of this act, and shall subject it to the penalties prescribed and imposed by this act. Section 4. Every fire insurance company or asso- pire insurance ^ companies to -.elation shall annually, and at such other times as the make annual re- >J ' turn to Insurance Insurance Commissioner may require, in addition to all ^i^^J^^Ji^^on returns now by law required of it or its agents or man- |f°^'^'' '" ""'^ agers, make a return to the Insurance Commissioner, in such form and detail as may be prescribed by him, of all insurance (reinsurance), or cessions of risk or lia- bility contracted for or effected by it, whether by issue of policy, entry on borderau, or general participation agreement, or by excess loss reinsurance, or in any other manner whatsoever, upon property located in this State, or covering, whether specified or otherwise, any risk or liability upon property so located; such return to be certified by the oath of its president and secretary, if a company or association of one of the United States, and if a company or association of a foreign country by the oath of its managers in the To be certified by 94 Refusal shall be presumptive evi- dence of viola- tion of act. Violation of or failure to comply with provisions of act. Penalty. How to be col- lected. Neglect and re- fusal to pay. Authority may be revoked. Shall not be again authorized until certiflcate Is filed. Contents of certi- ficate. Re-insurance ef- fected. United States, as to such reinsurance or cessions ef- fected througli its branch office in the United States, and by the oath of its president and secretary, or by officers corresponding thereto at its home office, wher- ever located, as to reinsurance or cessions., as afore- said, contracted for or effected through the foreign office. The refusal of any such company or associa- tion to make the returns herein required, shall be presumptive evidence that it is guilty of violating the provisions of the second section of this act, and shall subject it to the penalties prescribed and imposed by this act. Section 5. Any insurance company or association wilfully violating or failing to observe and comply with any of the provisions of this act, applicable there- to, shall be subject to and liable to p£ty a penalty of five hundred dollars for each violation thereof, and for each failure to observe and comply with any provisions of this act; such penalty may be collected and recov- ered in an action brought, in the name of the State, in any court having jurisdiction thereof. Any insurance company or association which shall neglect and refuse, for thirty days after judgment in any such action, to pay and discharge the amount of such judgment, shall have its authority to transact business in this State revoked by the Insurance Commissioner, and such revocation shall continue for at least one year from the date thereof; nor shall any insurance company or as- sociation, whose authority to transact business in this State shall have been so revoked, be a.frain authorized or permitted to transact business herein until it shall have paid the amount of any such judgment, and shall have filed in the office of the Insurance Commissioner a certificate, signed by its president or other chief of- ficer, to the eifect that the terms and obligations of the provisions of this act are accepted by it as a part of the conditions of its right and authority to transact busi- ness in this State. Section 6. In case any such company or companies shall effect reinsurance with any other company or companies of this State, or licensed to do business in this State, the said company so effecting reinsurance shall be entitled to deduct from the gross premium licensed (received) by it the amount of tax it would otherwise be required to pay upon said reinsurance. 95 Section 7. Any insurance company of any other Foreign mutual '^ *J ^ insurance com- State, transacting the business of fire or marine in- pf-Ji^^^- under oon- ' ^ dlttons, may be surance on the mutual principal, without capital stock, "cei^sea. but with accumulated cash assets over and above all liabilities, including reserve, of not less than two hun- dred and Mty thousand dollars, may be licensed by the Insurance Commissioner, upon complying with the laws of this State applicable to joint stock fire insur- ance companies of other states. Section 8. All acts and parts of acts^ whether gen- Repeal, eral or special, inconsistent with the provisions of this act, are hereby repealed. Approved— The 8th day of May, A. D. 1899. (P. L. 258.) WILLIAM A. STONE. AN ACT To etnable insurance companies to transact business in other states. Section 1. Be it enacted, &c., That any insurance company incorporated under the laws of this Common- wealth, desiring to transact business in other states, PnTfej^ao^u^^inJss the laws whereof require that such company shall first may'alpolifsl- deposit securities of a designated value with the Au- properoffl<;er. ditor General or other proper officer of this State in trust and for the benefit of all its policy holders, is hereby authorized to deposit with either of said ofli- cers securities for such a sum as the laws of such other states designate; and if such officer is satisfied that such securities are worth the said sum, it shall Duty of saia om- ' cer. be his duty to receive and hold the same or those given in exchange therefor as hereinafter provided, and for the purpose aforesaid, and from time to time upon the written request of said insurance company, to certify under his hand and official seal to the proper officer of such other state or states wherein said in- surance company may desire to transact business, that said company has deposited with him securities, giving the items of kind thereof, and that he is satisfied they are worth the sum designated by the laws of such other state or states: Provided, That such insur- companies may ance company shall be entitled to demand and receive fnli'iu thereof*""^ from the Auditor General or other officer of this State, 96 Duty of office when deposits are made in loans of Commonweal til. Transfer of loan. from time to time, tlie whole or any portion of any securities, upon depositing with him in lieu thereof other securities of at least equal value^, and also to demand, receive, sue for and recover the interest and income from said securities from the payee or obligee thereof as the same becomes due and payable, and that the Auditor General shall charge the usual fee for the issuing of such certificates. Section 2. \Vhen any insurance company shall de- posit as aforesaid the loans of this Commonwealth, the Auditor General shall notify the Farmers' and Me- chanics' Bank of Philadelphia or other agent author- ized by law to transfer the same, of such deposit, giving the name of the company so deposited, the amount deposited, with the numbers of the certificates of such loans; and it shall not be lawful to transfer any of the said loan without the certificate of the Au- duitor General that such company has received the same from him according to the provisions of this act, and the authority or power to transfer duly executed by the company owning the said loan under its cor- porate seal: Provided however, That when deposits shall be made in securities other than the loan of this Commonwealth, such company shall pay into the treas- ury of the Commonwealth, at the time of such first deposit, the sum of fifty dollars. Approved^The sixth day of April, Anno Domini one thousand eight hundred and sixty-eight. (P. L. 65.) JNO. W. GEARY. INDEX. Page. Act of 1868 repealed, 19 Articles of association, what to specify, 21 to be aclinowledged, submitted to Attorney Gen- eral and approved by Governor, 21 to be recorded, 24 Appeals to Supreme Court, when 45 Application, constitution and by-laws, when evidence 51 Agents, acting as prohibited, 11-12 names to be certified and licenses procured 13 • for service of process, 15 and others prohibited paying premiums to unlicensed companies, 16 prohibited from transacting business for foreign companies with- out license, 44-58 of assessment companies, 42 liability for non-compliance with laws, 44 service of notice in case of loss by fire, 58 punishment for embezzlement .' 50 false representation by, punished, 52 liability for representing fictitious companies, 71 rebating prohibited and penalty, 62 Assessment companies, organization of, 41 what policy to state, 42 incorporation and regulation of 19-o3 proceedings against, when, 54-57 policies of, to have insurable interest 54 of other states to be licensed, fees, &c., 56 business prohibited, when, 57 regulating those doing liability business, 69 Accident companies, incorporation of, 19 capital joint-stock companies to have, 25 how capital to be invested 27 what insurance mutual companies to have 53 Attorney General, duties in cases of insolvency, 8, 59 Basis of valuation, life policies, 5-6 Beneficial associations, exempt from insurance laws, 46-58-81 Incorporation of, 47 method of organization, capital, &c 48 powers defined, etc 49-6 i minors to become members, 91 (97) 7 98 Page. Capital, impairment of by Pennsylvania companies, 7-38 stock to be divided into shares, 22 what Pennsylvania companies to have 25 how to be invested, 27-2S increase of, 31-33-34 decrease of, 8-38 what foreign companies to have, 42 Charters, what to specify, name, &c., 20 to be revoked, when, 24 renewal of, 38 amendments thereto, 39 forfeited, when, 41 certified copies of, to be filed, 11-45 Certificates, foreign companies whe'fa to Issue, 42 of valuation other states, 6 to Governor in case of joint-stock companies, 22 to Grovernor in case of mutual companies, 23 Certified copies, to be furnished 9 when evidence, 24 Cities and boroughs to receive tax, 13 Commissioner, appointment, term, salary and duties 3-4-6 to furnish blanks, examine persons and revoke licenses, . . 9-10 to report to Auditor General, pay over taxes, &c., 11 duties in case of insolvency, &c., 8-9 to- examine companies and give certificates 24 Companies, when to stop insurance 6 to furnish certificates of valuation, 6 to make good capital when impaired ". 7 when deemed insolvent, 8 Fire and Marine not to insure lives 10 to file certified copies of charter, &c., 11 to report premiums and pay tax 12 tO' certify agents, 13 to furnish statements, &c., , 14 to designate an attorney for service of process, 15 to notify Commissioner when ready tO' commence business, . . 24 to make by-laws and elect directors, 25-26 what real estate to hold, 29 may appeal to Supreme Court, when, 45 officers or agents of, punished for embezzlement 50 false representation by agents of, punished 52 service of notice of loss on agents of, 58 return of nulla bona in case of mutuals 59 steam boiler, liability of, 60 steam boiler, regulation of, 65 surety, to act as surety of guarantor 84 Deputy Commissioner, appointment and powers 3 Discrimination by life companies prohibited, 62 Dividends, 30 Directors, how to be chosen, > 26 when liable 29 Deposit of securities by Pennsylvania companies 95 Examinations 10 Election of officers, directors, etc., 27 99 Page. Frauds on life companies by agents and otliers punished, 52 Fraternal societies, definition of, and requirements for registration, 78 to make report and what report tO' contain, 79 to whom certificates are to be paid 81 service of process on 82 minors to become members, 91 exempt from insurance laws, 46-58 Fees, for valuation of life policies, 10 for filing charter, statements, certificates, &o., 10 for certified copies, 10 for license excess insurance, 17 for agents licenses, assessment companies, 42 for filing statements, assessment companies, 54 for licenses, assessment companies,- 56 Fines, for transacting business without authority, 16 Fire companies, incorporation of, 19 capital joint-stock companies to have 25 insurance mutual companies to have, 25 how capital and surplus to be invested 27 what capital foreign companies to have, 42 application, fee, to be attached to policy 51 issue of policies by unincorporated companies prohibited, 61 may insure against lightning, storm and tornado, 63 not to insure lives, 10 to issue policies only through resident agents, 91 re-insurance in unlicensed companies prohibited 92 mutual, of other states to be licensed, 95 Fire marshal, defining powers and duties of 87 Foreign companies, to hold real estate, 50 to furnish certificates, 6 Guarantee fund, assessment companies, 54 Insurance brokers, defined, 43 license, term, fee and penalty, 44 Insurance Department, established, 3 Insolvency, duties in case of, 6 Joint-stock companies, shares in, payment of stock, &c 22 certificate to Governor, &c., 22 certificates of stock, when to issue, transferable, &c 23 Letters patent, when to issue 22-23 License, to agents, 13 for excess insurance, 17 to agents of assessment companies, 42 insurance brokers 43 Live-stock companies, incorporated, 19 capital joint-stock companies to have 25 insurance mutual companies to have 25 how capital to be invested 27 Life companies, incorporation of, 19 capital joint-stock companies to have 25 how capital and surplus to be invested, 28 guarantee capital of mutual companies 29-30 application, &c., to be attached to policy 51 discrimination prohibited, 62 100 Married women, policies for benefit of 30 Marine and inland companies, incorporation of, 19 what capital to have 25 how capital to be invested 27 capital foreign companies to have 42 Mutual companies, exempt from taxation, 18 to report and be examined, 18 to open books, receive applications, &c 21 when tO' take risks, 25 accumulation of reserve and creation of capital by, . . 39 certificates of assessments, evidence, 46 return of nulla bona in case of, 23 of other states to be licensed, 95 Mutual life, health and accident companies to be organized, &c 23 Net value of life policies defined, 5 Ofl[icers, how to be chosen, 27 Penalties, transacting business without authority, 17 neglect to file statements , . 11-14 failure to report premiums and pay tax, 13 issuing policies in unincorporated fire companies 61 discrimination in life policies, 62 acting as agent without authority, 44 acting as agent of unlicensed company, 16 acting as broker without license 43 Premiums, report of, when and how, 12 report by Pennsylvania companies 12 report of, in cities and boroughs for foreign fire companies, . . 13 Policies, relating to warrants in application of, 60 unauthorized companies prohibited, 61 signed and sealed, 27 benefit of married women, 30 assessment companies, to have insurable interest, 54 Receivers, to be appointed and powers of, 44 Retaliatory provisions 46-53 Reserves, life companies, 5 fire companies, 7 marine companies, 7 Real estate, foreign companies to hold, 50 Re-insurance, in relation to 92 Resident agents, business trEinsacted through, 91 Salvage corps, organization and maintenance of, 88 Steam boiler companies, liability of, 60 regulation of 65 Secret fraternal beneficial societies, incorporation and regulation of 72 Surety companies, authority to act and regulation of, 84 Service of process, foreign companies, on whom to be made 15 fraternal societies 82 Taxes, on premiums foreign companies 13 on premiums home companies 12 on premiums unlicensed companies 17 Valuation of life policies, 4-10-45 n~^- i- ■ '"^ t;--t,-««»^...^-^__> y- /S '%^^. 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