M m m Qlnrnpll IGam ^rl^nnl SItbrarg Cornell University Library KF1198.A73S74 Fire insurance laws, taxes and fees :con 3 1924 019 198 104 Cornell University Library The original of tiiis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924019198104 FIRE INSURANCE LAWS, TAXES AND FEES ^ CONTAINING A DIGEST OF THE STATUTORY REQUIREMENTS IN THE UNITED STATES AND CANADA RELATING TO FIRE INSUR- ANCE COMPANIES AND AGENTS, WITH MANY QUOTATIONS FROM THE STATUTES t^ ALSO A COMPILATION OF COUNTY AND MUNICIPAL TAXES AND FEES Revised to September i, 191 i 1911 THE SPECTATOR COMPANY Chicago Office.: """ 135 William Street National Lifi Buildincl NEW YORK. &u^-(^h3J ^^^>^^ Copyright, 1911, by THE SPECTATOR COMPANY. New York. ''may 19 1933 duplicate PREFACE. In order that the company manager, general agent or special agent who wishes to ascertain the essential features of the laws of the various States and Territories relating to fire insurance companies and agents, and the conditions under which they may transact business, may do so without being forced to delve into the voluminous, scattered and too often unindexed laws of the re- spective States and obtain the information in the most compact, quickly avail- able and convenient form possible, the publishers undertook, in 1901, a sys- tematic compilation of the statutes relating to some thirty topics of general in- terest, copiously indexed, and issued the result under the title of "Fire Insur- ance Laws, Taxes and Fees." The work evidently met a recognized need, and the subsequent annual volumes, improvements on the first, were accorded a cordial welcome by the underwriting fraternity. Following the adjournment of the various State and Territorial Legislatures, we present the eleventh annual volume, and trust that it will be found even more useful than its predecessors. The current volume contains many more pages than that for 1910, this material increase in size having been necessitated by the considerable number of new laws and amendments enacted in 191 1 by the legislative bodies of the various States and Territories. The volume of legislation was also excep- tionally heavy in 1909 and 1910, so that the size of this book has been greatly augmented in the last few years. The statutory requirements vary so much in the various States that, if the underwriter can have their tenor conveyed to his mind in a few words, there is a saving of time and trouble. There are many of the statutes which are so free from the possibility of misconstruction that they can be digested with little likelihood of deviation from accuracy. These have been briefed down in this book to their lowest terms. There are other provisions which present more difficulty, and perhaps may carry different meanings to different minds. These it has been our purpose to quote in extenso. Thus the general scope of the work is such as to embrace the advantages of both a digest and a reproduction of the statutes. A feature of this work which is unique is the codification of the system of county and municipal taxes and fees. This, we believe, has never been under- taken for the whole country in any other publication, and the information given therein is apt to be referred to every day. It has been obtained from thoroughly trustworthy sources, and every effort has been made to insure accuracy. Cities not imposing any tax or fee are, of course, omitted. It should be said that the plan of this book does not necessarily include mention of every subject touched upon in the statutes pertaining to fire insur- ance. There are points which are so axiomatic or so unimportant that they are not deemed essential to the substantial completeness of a work of this character, as, for instance, the fact that companies must secure licenses before beginning operations in a State, and that real estate is usually taxed locally. The publishers feel entirely warranted in stating that no other book ever offered to fire underwriters contains so much information of the nature above described, or gives the desired data so fully, where fullness is expedient, or in such condensed form, where condensation is permissible, as does this one. It can also be justly claimed for this publication that, owing to the systematic arrangement of its contents and its elaborate series of subject indexes, the facts presented in it can be more readily located than under the plan employed in any other similar work. In conclusion, we beg to say to our subscribers that we shall continue to endeavor to make this publication accurate and increasingly valuable, and will gladly welcome suggestions which will add to its future usefulness; also, to express our thanks to those who have so kindly assisted us by furnishing data from their private files. The Spectator Company. New York, September i, 1911. GENERAL INDEX. LAWS, TAXES AND FEES. Page Alabama 23 Alaska 33 Arizona 34 Arkansas 37 California 43 Canada (See also Provincial Requirements) 52 Colorado 66 Connecticut ( See Addenda) 71 Delaware (See Addenda) 76 District of Columbia 81 Florida (See Addenda) 21, 83 Georgia 89 Hawaii 98 Idaho ( See Addenda) 102 Illinois 107 Indiana 117 Iowa (See Addenda) 123 Kansas (See Addenda) 131 Kentucky 139 Louisiana 150 Maine 163 Maryland , 171 Massachusetts 180 Michigan 192 Minnesota 204 Mississippi 214 Missouri 226 Montana 241 Nebraska 247 Nevada ' 256 New Hampshire 261 New Jersey 268 New Mexico 278 New York 284 North Carolina 311 North Dakota 321 FIRE INSURANCE LAWS, TAXES AND FEES. Page, Ohio 327 Oklahoma 337 Oregon 344 Pennsylvania 354 Philippine Islands 362 Porto Rico 365 Rhode Island 366 South Carolina 371 South Dakota 379 Tennessee 386 Texas 394 United States 457 Utah 404 Vermont 411 Virginia 416 Washington 425 West Virginia 433 Wisconsin 438 Wyoming 452 State Insurance Officials and Legislatures 22 Addenda 463 INDEX TO SUBJECT INDEXES. Agents Defined 8 Agents' Licenses 8 Agents, Resident 18 Annual .Statements n Anti-Coinsurance q Anti-Compact n Anti-Discrimination q Attorney jq Brokers, Licensed j e Cancellation of Policy jq Capital Required ,_ Coinsurance, Laws Prohibiting „ Commissions to Non-Residents j j Compacts, Laws Prohibiting Companies, Domestic Companies, Mutual ' -■ County Taxes and Fees Deposits Required of Foreign Companies j j Deposits Required of Other State Companies "_ j- Documents, Preliminary ^ Domestic Companies Examinations 12 INDEX TO SUBJECT INDEXES. Paqzi. Fees 13 Fees and Taxes, County 11 Fees and Taxes, Municipal 16 Fire Department Tax 13 Fire Marshal 13 Foreign Companies' Home Office Statements 13 Impairment 14 Investments Prescribed 14 Legislatures, Next Session of State. 22 Licensed Brokers 15 Licenses, Agents' 8 Limit on a Single Risk 15 Lloyds 15 Marshal, Fire 13 Municipal Taxes and Fees 16 Mutual Companies 16 Officials, State Insurance 22 Policy, Cancellation of 10 Policy, Standard 19 Policy, Valued 21 Preliminary Documents 16 Publication 17 Rate Schedules to be Filed 17 Reciprocal Law 17 Reinsurance in Unauthorized Companies 18 Reinsurance Reserve 18 Reserve, Reinsurance 18 Resident Agents 18 Risk, Limit on a Single 15 Semi-Annual Statements 19 Standard Policy 19 State Insurance Officials 22 Statements, Annual 9 Statements, Foreign Companies' Home Office 13 Statements, Semi-Annual 19 Statements, Tax 20 Taxes 19 Taxes and Fees, County 11 Taxes and Fees, Municipal 16 Tax, Fire Department 13 Tax Statements 20 Unauthorized Companies, Reinsurance in 18 Unearned Premium Reserve 18 Valued Policv 21 FIRE INSURANCE LAWS, TAXES AND FEES. Alabama 23 Arizona 34 Arkansas 37 Canada 53 Colorado 66 Connecticut 7i Delaware 76 Florida 83 Georgia 89 Hawaii 98 Idaho 102 Illinois 107 Indiana 117 Iowa 123 Kansas 131 Kentucky 139 Louisiana 150 Maine 163 Massachusetts 180 Michigan 192 Minnesota 204 SUBJECT INDEXES. AGENTS DEFINED. Page. Page. Mississippi 214 Missouri 226 Montana 241 Nebraska 247 New Mexico 278 New York 284 North Carolina 311 North Dakota 32 1 Ohio 327 Oklahoma 337 Oregon 344 Pennsylvania 354 Rhode Island 366 South Carolina 371 Tennessee 386 Texas 394 Utah 404 Virginia 416 Washington 425 "'■ ' 438 Fee. Alabama $3.S0* Alaska 25.00 Arizona 5.00 c Arkansas 2.00 * California i.oo Canada None Colorado 2.00 * Connecticut . . Recip. (For. cos., $2 Delaware 7.50 Dist. of Columbia. 50.006 Florida 5.00 * Georgia 3.000 Hawaii 2.00 for each co, Idaho 3.00 Illinois Recip.t Indiana 3.00 * Iowa 2.oo*t Kansas 2.oo*J Kentucky 3.00* Louisiana 2.00 Maine 2.00* Maryland 10.00 Massachusetts ... 2.00 Michigan Recip. Minnesota 2.oog* Mississippi 2.00 * Missouri 2.00 Montana 5.00 Nebraska 200*^ Nevada None New Hampshire.. 2.00* New Jersey 2.00 Wisconsin Wyoming 4^2 AGENTS' LICENSES. Page. Fee. 23 New Mexico 2.00 New York Recip. (For. cos., $2) e 1.00 * 33 34 37 43 52 66 71 76 81 83 89 98 102 107 117 123 131 139 ISO 163 171 180 192 204 214 226 241 247 256 261 268 North Carolina. North Dakota 2.00 " Ohio 2.00 Oklahoma 3.00 t Oregon i.oo Pennsylvania 2.00 * Rhode Island 2.00 South Carolina . . .50* South Dakota 2.00* Tennessee 2.00 *d Texas No charge Utah 2.00 Vermont 2.00* Virginia i.oo* Washington 2.00 West Virginia. . . . 5.00 * Wisconsin 1 00* Wyoming i.oo Page. 278 284 3" 321 327 337 344 354 366 371 379 386 394 404 411 416 42 s 433 438 452 ^^*^License required for each member of t Agents of domestic companies $1. + Agents for domestic cents. Alabama Marcli i ' Anzona March 31 Arkansas 6 1 March i California March i companies 50 .^o Also tax of $10 for each county operated b Solicitor, $5. 'wf A^"**^^"*' .°**'" agents. $2. « Agents for domestic companies, nona o ANNUAL STATEMENTS. PAGE. Bate It Canada ^^^^£"1* 34 Colorado March t 37 Connecticut Peb 10 43 Delaware " T?»k „i° Feb. 28 PACE. 52 66 71, 463 76 SUBJECT INDEXES. ANNUAL Date Hequired. District of Columbia.. March i Florida Jan. 31 Georgia t March i Hawaii April 15 Idaho March i Illinois Jan. 31 Indiana Jan. 31 Iowa Jan. 31 Kansas March I Kentucky Feb. 10 Louisiana Feb. 28 Maine ajan. 31 Maryland t Mardi I Massachusetts o Jan. 15 Michigan Feb. 15 Minnesota a Feb. i Mississippi March i Missouri Jan. 31 Montana eMarch i Nebraska Jan. 31 Nevada March i New Hampshire .... aFeb. i New Jersey a Jan. 31 New Mexico d March I New York Feb. 15 North Carolina March I STATEMENTS— ( Continued. ) Date Required North Dakota March i Ohio Jan. 31 Oklahoma Feb. 28 Oregon March i Pennsylvania March i. Porto Rico Jan, Rhode Island Feb. I South Carolina March 31 South Dakota March i Tennessee a Feb. i, Texas J March i Utah Feb. 28 Vermont Jan. 31 Virginia Feb. 15 Washington Feb. 15 West Virginia Jan. 31 Wisconsin a Jan. 31 Wyoming % March i Page. 81 83 89 98 12, 463 107 117 123 131 139 ISO 163 171 180 192 204 214 226 241 247 256 261 268 278 28s 3" Pagb. 321 327 337 34S 354 36s 366 371 379 386 394 404 411 416 425 433 439 4S2 Arkansas 37 Florida 83 Georgia 89 Indiana 117 Iowa 123 Kentucky 139 Louisiana '. 150 Michigan 192 Minnesota 204 * See also Provincial Requirements, t Within 60 days from Jan. i. a Time may be extended. 6 Mutual companies in February. d Domestic companies in January. e Mutual companies in January. ANTI-COINSURANCE. Page. Mississippi Missouri New Hampshire New Jersey Ohio Tennessee T exas Wisconsin Page. 214 226 261 268 327 386 395 439 ANTI-COMPACT. Page. 24 Alabama Arkansas 37 California 44 Rorida 21 Georgia 89 Illinois io7 Indiana 117 Iowa 123 Kansas 131 Louisiana 151 Michigan 193 Minnesota 205 Mississippi 214 Page. Missouri 2 26 New Hampshire 261 New Jersey 269 New Mexico 278 Ohio 327 Oklahoma 337 Oregon 345 South Carolina 371 South Dakota 379 Tennessee 387 Texas 395 ANTI-DISCRIMINATION. Washingrton 425 Wisconsin 439 Alabama Canada Idaho Indiana Kansas Louisiana Massachusetts Michigan Minnesota Missouri : 228 Montana 241 PAGE. 25 52 1 02 117 131 151 180 193 206 Nebraska 247 New Jersey 269 New York 285 Ohio 328 Oklahoma 338 Oregon 346 Pennsylvania 354 South Carolina 372 Texas 39s Washington 425 Wisconsin 439 10 FIRE INSURANCE LAWS, TAXES AND FEES. Who to Accept Service. Alabama Ins. Comr. Arizona Agent in each County Arkansas State Aud. or Res. California Res. or Ins. Comr. Canada. At Chief Agency (see also Provincial Requirements). Colorado Comr. of Ins. Connecticut . . Ins. Comr. Delaware Ins. Comr. Dist. of Columbia. .Resident Florida Agent Georgia Resident Hawaii Resident or Comr. Idaho Ins. Comr. Illinois Resident or Ins. Sup. Indiana Resident Iowa Aud. of State Kansas Supt. of Ins. Kentucky Ins. Comr. and all Agts. Louisiana Sec. of State Maine Ins. Comr. or Agt. Maryland Resident or Comr. Massachusetts. Ins. Comr. Michigan Resident or Comr. Minnesota ....Ins. Comr. Mississippi ...Ins. Com. and Res. Missouri Supt. of Ins. ANTI-REBATE. (See Anti-Discrimination.) ATTORNEY. Who to Accept Page. Service. 25 Montana Agent in each Co. 34 Nebraska Aud. Pub. Ace. 37 Nevada Res. or Contr. 44 N. Hamp.shire.Ins. Comr. New Jersey. ..Ins. Comr. 52 New Mexico. .Supt. Ins. 66 New York Supt. of Ins. 71 N. Carolina Ins. Comr. 76 North Dakota. Comr. of Ins. 81 Ohio Any agent 83 Oklahoma Ins. Comr. 90 Oregon Res. or Comr. 98 Pennsylvania ..Ins. Comr. 102, 463 Philippine Is . . Res. or Sec. of Com. 107 Porto Rico . . . Resident 117 Rhode Island. .Ins. Comr. 123 S. Carolina Ins. Comr. 131 South Dakota.. Comr. of Ins. 139 Tennessee Ins. Comr. 151 Texas Resident 163 Utah Res. at chief office 171 Vermont Sec. State 180 Virginia Res. Rich'd or Aud. 19s Washington . . Ins. Comr. 206 West Virginia.. Aud. of State Wisconsin Comr. or any agt. 215 228 Pace. 241 247 256 261 270 278 285 311 321 328 338 346 3SS 362 365 367 372 379 388 39S 404 411 416 426 433 441 California .^ Canada (Manitoba) ......' 58 Colorado 66 Connecticut Iowa Louisiana .^ Maine ]] Massachusetts .'!...!.'!! 18 Michigan Minnesota CANCELLATION OF POLICY. Page. Wyoming Res. each Co. and Ins. Comr. 452 44 71 123 163 Page. 19s 206 Mississippi \ 2ie Nebraska !!!!!!. 247 New Hampshire .'. .'.'.'.".'.'.'. 261 New Jersey ^ -o New Mexico jIg New York jL North Carolina ,11 North Dakota 5,1 Ohio ^^8 Oklahoma ,,g Rhode Island ,67 South Dakota „o Washington '[ V^l West Virginia .„ Wisconsin \\'\ ^j Alabama $100,000 Arizona + Arkansas i!."".; ifioo.ooo California daoo.ooo ^^"^da /300,ooo Colorado C20o,ooo Connecticut 200,000 71,46^ Delaware 100,000 76 District of Columbia 100,000 81 Florida (assets) *25o,ooo 8^ g.^°""S?.a 100,000 90 H»^3U 100,000 98 J^?ho 100,000 ™»°>s 100,000 i"<^'3na §200,000 i°^a *200,000 ^^"f^S 100,000 Kenti^cky *iSo,ooo Louisiana 200,000 ^^'ne §200,000 CAPITAL REQUIRED. Capital. Page. „ -..,,, -\ll-,r~,A^^A CapitaU Page. Maryland 100,000 t, Massachusetts „ ^200,000 ^jchigan 100,000 Mmnesota_ Aioo,ooo Mississippi *ioo,ooo ^■=5°"" 200,000 Montana ann nnn Nf-ka :::::;:: looZ Sf^*!^ ■• 200,000 New Hampshire 200,000 New Jersey 100,000 North''&ina:;::;::::---'CC SC'^^'^-^ •••■•■-s 25 34 37 44 52 67 102 107 117 125 131 139 151 163 Philippine Islands 1250,000 171 181 195 206 21S 228 241 247 256 261 270 278 28s 3" 321 328 338 349 355 362 SUBJECT INDEXES. 11 CAPITAL REQUIRED — ( Continued.) Capital. Rhode Island 100,000 South Carolina. sioo,ooo South Dakota 100,000 Tennessee 100,000 Texas 100,000 Utah £j2oo,ooo Vermont 100,000 Virginia Washington 200,000 West Virginia 100,000 Wisconsin 100,000 Wyoming 300,000 * Domestic companies, $50,000. COMMISSIONS Page. Arizona Arkansas Colorado Delaware District of Columbia. Florida Idaho Kansas Louisiana Pagb. 367 372 380 388 395 404 411 416 426 433 442 452 REQUIRED TO Maryland 34 37 67 76 81 83 102 131 151 172 t Subscribed ; $50,000 paid up. i No requirement. § Domestic companies, $100,000. a Marine companies, $300,000. b $200,000 for fire and inland marine; $400,000 for fire, inland and ocean marine. c Domestic companies, new, $100,000; old, $50,000. d Both fire and marine, $400,000. e Domestic companies may have less. / See also Provincial Requirements. g Local companies, $50,000. h Both fire and marine, $200,000. i 50% subscribed, 50% paid in. BE PAID TO RESIDENTS. Page. South Carolina 373 Tennessee 388 Texas 395 Utah 405 Vermont 411 Washington 426 West Virginia 433 Wisconsin 442 COUNTY TAXES AND Page. California 49 Florida 86 Georgia 93 Illinois IIS Louisiana 161 Mississippi 224 Nebraska 254 DEPOSITS REQUIRED OF FOREIGN In One of the United States. Page. PAID Page. Mississippi 215 Montana 241 Nebraska 247 New Hampshire 262 New Jersey 270 New Mexico 278 North Carolina 311 North Dakota 321 Oklahoma 338 Pennsylvania 355 FEES. Page. New Mexico 283 Oregon 353 South Carolina 37^ Texas 403 Virginia 422 West Virginia 436 Alabama $200,000 25 Arizona 1[ 15,000 34 Arkansas 020,000 37 California 200,000 44 Canada cioo,ooo 53 Colorado 200,000 67 Connecticut 200,000 71 Delaware 150,000 76 District of Columbia 100,000 81 Florida tiSo,ooo 83 Georgia 10,000 90 Idaho 100,000102,463 Illinois 200,000 107 Indiana 100,000 118 Kansas 100,000 131 Kentucky 200,000 139 Louisiana 200,000 151 Maine 200,000 163 Massachusetts §200,000 181 Michigan 200,000 195 Minnesota 100,000 207 Mississippi 100,000 215 Missouri 200,000 228 Montana 100,000 241 Nebraska 200,000 247 Nevada 200,000 256 New Hampshire 200,000 262 New Jersey 200,000 270 COMPANIES. In One of the United States. Page. New Mexico 100,000 New York 200,000 North Carolina 100,000 North Dakota Ohio *ioo,ooo Oklahoma 200,000 Oregon 200,000 Pennsylvania d200,ooo Rhode Island 200,000 South Carolina 100,000 Tennessee 200,000 Texas 100,000 Utah 200,000 Virginia b Washington 200,000 West Virginia 200,000 Wisconsin $200,000 Wyoming 100,000 278 286 311 321 328 338 346 355 367 373 388 395 405 416 426 433 442 452 * In Ohio, t Assets ; no deposit required, t Or $50,000 in Wisconsin. f Securities or surety bond. § Marine companies, $300,000. a Surety bond. h S% of capital. Not more than $50,000 nor less than $io,aoo. c See also Provincial Requirements. d Fire, inland and ocean marine, $400,000. 12 FIRE INSURANCE LAWS, TAXES AND FEES. DEPOSITS REQUIRED OF OTHER STATE COMPANIES.t Amount. Page. Arizona ,.t$iS,ooo 34 Arkansas §20,000 37 Canada So.ooo S3 Florida 610,000 83 Georgia 10,000 90 Louisiana 020,000 151 Nebraska e2S,ooo 247 New Mexico 10,000 278 North Carolina $10,000-25,000 312 Oregon cSo,ooo 346 South Carolina tio.ooo 373 Texas <^ 395 Virginia * 4i6 DOMESTIC COMPANIES. Page. Alabama 25 California 44 Canada (See also Provincial Re- quirements) 54 Colorado 67 Connecticut 7^ Delaware 76 Florida 84 Georgia 9° Hawaii 98 Idaho 102 Illinois 107 Indiana 118 Iowa 126 Kansas 132 Kentucky 140 Louisiana 151 Maine 163 Maryland 172 Massachusetts 181 Michigan 195 Minnesota 207 Mississippi 215 Missouri 228 Montana 241 *S per cent of capital. Not more than $50,000, nor less than $10,000. t See "Reciprocal Law." t Securities or surety bond. § Surety bond. o Individual or surety bond. 6 $10,000 cash or bonds, or $20,000 surety bond. c If licensed in New York State, $25,000. d 25 per cent of premium income in State ; not more than $50,000 nor less than $10,000. e In one of the United States. Page. Nebraska 248 Nevada ^5^ New Hampshire 262 New Jersey 271 New Mexico 279 New York 287 North Carolina 312 North Dakota 322 Ohio 328 Oklahoma 338 Oregon 348 Pennsylvania 355 Philippine Islands 362 Rhode Island 367 South Carolina 373 South Dakota 380 Tennessee 388 Texas 396 Utah 405 Vermont 411 Virginia , 417 Washington 426 West Virginia 433 Wisconsin 442 Wyoming 452 EXAMINATIONS. Alabama Arkansas California Canada (See also Provincial Re- quirements) Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana .'*.'.' Iowa Kansas \\ Kentucky '.'.'.' Louisiana .'.'.' "" Page. 25 38 44 54 67 71 76 81 84 91 98 103 108 118 126 132 141 152 Page. Maine 164 Maryland 174 Massachusetts 182 Michigan 195 Minnesota 207 Mississippi 215 Missouri 228 Montana 242 Nebraska 248 Nevada 257 New Hampshire 262 New Jersey 271 New Mexico ,,q New York 288 North Carolina ,12 North Dakota ' ,,2 Ohio ;;.•;;;;; m Oklahoma ^,§ Oregon V.'. 348 SUBJECT INDEXES. 13 EXAMINATIONS —(Continued.) Page. Pennsylvania 355 Rhode Island 367 South Carolina 373 South Dakota 380 Tennessee 388 Texas 397 Utah 40s Page. Vermont 4" Virginia 4^7 Washington 4^7 West Virginia 434 Wisconsin 44^ Wyoming 45^ FEES. Page. Alabama 26 Alaska 33 Arizona 35 Arkansas 38 California 45 Canada (See also Provincial Re- quirements) 54 Colorado 68 Connecticut 72 Delaware 76 District of Columbia 81 Florida 84 Georgia 91 Hawaii 98 Idaho 103, 463 Illinois 108 Indiana 118 Iowa 127 Kansas 132 Kentucky 141 Louisiana 152 Maine 165 Maryland 174 Massachusetts 182 Michigan 196 Minnesota 208 Mississippi 215 Page. Missouri 230 Montana 242 Nebraska 249 Nevada 257 New Hampshire 262 New Jersey 272 New Mexico 280 New York 288 North Carolina 312 North Dakota 323 Ohio 329 Oklahoma 339 Oregon 348 Pennsylvania 356 Porto Rico 365 Rhode Island 368 South Carolina 373 South Dakota 380 Tennessee 389 Texas 397 Utah 406 Vermont 412 Virginia 417 Washington 427 West Virginia , 434 Wisconsin 442 Wyoming 453 FIRE DEPARTMENT TAX. Per Cent. Page. Illinois 2 108 Kansas 2 132 New Jersey J 2 272 New York 2 289 North Carolina Vt 3^3 North Dakota JzJ^ 323 South Carolina I 373 South Dakota %i 381 FIRE MARSHAL. Tax Per cent. Page. Alabama i/S 26 Canada 59, 62, 64 Per Cent. Utah *i Wisconsin 2 Wyoming (not paid) i Page. 406 443 453 *In cities having fire departments of pre- scribed efficiency. X Included in State tax. Connecticut 72 District of Columbia 82 Illinois 109 Iowa 128 Kentucky 1/3 142 Louisiana 2/S iS3 Maine 165 Maryland i74 Massachusetts 183 Michigan ... 196 Minnesota '4 209 Mississippi i/S 216 Montana 54 242 Tax Per cent. Page. Nebraska J4 249 New Hampshire 262 New York 290 North Carolina l/S 313 Ohio J^ 329 Oklahoma Y^ 339 Pennsylvania 356 Rhode Island 368 South Carolina i/io 374 South Dakota yi 381 Tennessee 1/5 389 Texas 397 Virginia 418 West Virginia ^ 434 Wisconsin J^ 444 14 FIRE INSURANCE LAWS, TAXES AND FEES. FOREIGN COMPANIES' Date Required. Arkansas July i California * Canada June 30 Connecticut * Hawaii Illinois Jan. 31' Iowa * Kentucky Michigan ". t June t , Missouri .".... — Montana July 1 Nevada Page. 40 45 54 72 99 109 128 142 1 96 230 242 257 HOME OFFICE STATEMENTS. Date Required. New Jersey * New York June 15 North Dakota Dec. I Ohio Jan. 31 Oklahoma Jan. 31 South Dakota April 30 Texas West Virginia Wisconsin Fags. 272 290 323 329 339 381 397 434 444 Impainneat Permitted. Per Cent. Alabama . ..[Dom. Cos.] 20 Arkansas ..' 20 California 25 Canada (Manitoba)... None Colorado None Connecticut 25 Delaware 20 District of Columbia. . 25 Georgia None * On admission, t Or within 60 days after annual meeting. IMPAIRMENT. Impairment Permitted. Per Cent. Nevada None New Hampshire Discretionary New Jersey Discretionary Hawaii Idaho Illinois Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi . . . Missouri Montana Nebraska 25 25 *20 25 20 20 2S 25 25 25 IS 25 25 None 20 20 Page. 26 40 46 59 68 72 77 82 91 99 103 no 128 133 142 153 165 175 183 196 209 216 230 242 250 Page. 257 262 INVESTMENTS Page. 26 Alabama California 46 Canada 54^ 63 Colorado 68 Delaware 77 85 91 99 103 no District of Columbia Florida Georgia Hawaii Idaho . Illinois _ Indiana ug Iowa .' .' 128 Kansas 133 Kentucky 142 Louisiana 154 Maine ]\[ jg, Maryland '.'.".".". 17c Massachusetts '.'.'.' 183 Michigan \[[ 106 Minnesota 210 Mississippi \\ 216 Missouri "] 230 None * None 25 * 20 None None 20 New Mexico. New York North Carolina. North Dakota.. Ohio Oklahoma Oregon Pennsylvania . . Rhode Island Discretionary South Carolina Discretionary South Dakota 20 Tennessee Dom. Cos. 20 Texas 20 Utah None Vermont 20 Washington None West Virginia Discretionary Wisconsin *20 Wyoming 20 273 281 294 314 323 330 339 349 356 368 374 381 390 397 407 412 427 434 444 453 * Domestic companies, 25%. PRESCRIBED. Page 243 250 257 Montana Nebraska Nevada New Hampshire '.'.'. V. 263 New Jersey \" 273 New Mexico .'..'.".'.' 281 New York 20"; North Carolina ,,, North Dakota ^,T Ohio 324 Oklahoma ;;;;;; m Oregon ^39 Pennsylvania ^49 Philippine Islands iiZ South Dakota ;;;;; m Tennessee ^ Texas 390 Utah 397 Vermont ^07 Washington .V;; ^12 West Virginia '.',\\ '^^'^ Wisconsin '.'.'.'.'. '*^^ Wyoming ^^ 454 SUBJECT INDEXES. 15 Alabama California J25 Canada (Manitoba) — Colorado 10 Connecticut 20 District of Columbia.... 50 Hawaii — Illinois 200 Iowa — Kansas 10 Kentucky 25 Louisiana — Maine * Maryland loi Massachusetts * t Michigan 25 Minnesota 10 Mississippi 20 Missouri 10 Nebraska 25 Nevada IS qrly. New Hampshire 10 New Jersey 20 LICENSED Annual Fee. Page. 26 229, 46 S9 68 72 82 99 III 128 133 143 IS5 167 17s 184 199 210 217 230 250 258 263 273 BROKERS. Annual Fee. New York 200 North Carolina 20 Ohio 10 Oregon IS Vh- Pennsylvania 100 Rhode Island tio Tennessee t Texas 25 Utah so Vermont 20 Virginia lOO Washington 100 Wisconsin I IS Page. 296 314 332 35° 357 368 39° 398 408 413 418 428 445 * Ordinary broker's license, $10; to deal with unauthorized companies, $20. t Free to honorably discharged soldiers or sailors of the Civil War. t Same fees as required of authorized companies. § Or $50 in cities having more than 100,- 000 inhabitants. of Capital. California 10 Canada (Quebec) fio Colorado t lo Connecticut 1 10 Idaho 10 Indiana 10 Iowa 10 Kansas * 5 Kentucky 1 10 Louisiana 1 10 Maine o 10 Massachusetts c 10 Michigan b 10 Minnesota e 10 Mississippi '. e 10 Montana 10 Nebraska 10 New Jersey e 10 New Mexico 1 10 New York 1 10 North Carolina ^ 10 LIMIT ON A SINGLE RISK. Per Cent Pass. 47 63 68 73 IC4 119 128 133 144 155 167 184 200 211 217 243 251 274 281 298 31S Per Cent of Capital. North Dakota 10 Oklahoma f 10 Oregon Philippine Islands 10 Rhode Island 10 South Dakota 10 Texas §10 Utah 1 10 Virginia tHio Washington b 10 Wisconsin e 10 Wyoming 10 Page. 324 340 350 362 368 382 398 408 418 429 445 454 * Mutual companies, 10% of prem. notes, t Of capital and surplus. § Except on baled cotton and grain. f Mutual companies, 5% of cash assets. a Domestic companies. b Foreign companies, 10% of deposit capital. e Of net assets. LLOYDS. Page. 27 47 56 68 91 Alabama California Canada Colorado Georgia Idaho 104 Kansas 133 Kentucky 144 Louisiana 155 Maine 167 Maryland 176 Massachusetts 184 Michigan 200 Minnesota 211 Mississippi 217 Missouri 231 Montana 243 Nevada 258 Mg— Ta«.oa^f __ 274 Page. New Mexico 281 New York 298 North Carolina 315 North Dakota 324 Ohio 333 Oklahoma 340 Oregon 350 Pennsylvania , 358 Rhode Island 368 South Carolina 374 Tennessee 390 Texas 398 Utah 408 Vermont 413 Virginia 418 Washington 429 West Virginia 435 Wisconsin 445 Wyoming 454 16 FIRE INSURANCE LAWS, TAXES AND FEES. MUNICIPAL TAXES AND FEES. Page. Alabama 29 Arizona 3^ California 49 Canada o4 Delaware °° Florida 87 Georgia 94 Idaho i°6 Illinois "S Kansas 136- 4^3 Kentucky 148 Louisiana 161 Maryland i79 Massachusetts igi Minnesota 213 Mississippi 224 Missouri 237 Montana 246 Page. Nebraska ^54 Nevada 260 New Jersey 277 New Mexico 283 New York 31° Ohio 336 Oklahoma 343 Oregon 353 Pennsylvania 3°'^ Porto Rico 365 Rhode Island 37° South Carolina 377 Tennessee 393 Texas 403 Virginia 422 West Virginia 437 Wisconsin 45^ MUTUAL COMPANIES. Page. Alabama 27 Arkansas 40 California 47 Canada 58, 60, 62, 63, 64 69 73 77 82 92 104 119 128 Colorado Connecticut Delaware District of Columbia Georgia Idaho Illinois Indiana Iowa Kansas 134, 463 Kentucky 144 Louisiana 155 Maine 168 Maryland 178 Massachusetts 186 Michigan 200 Minnesota 211 Missouri 231 Montana 243 Nebraska 251 Page. Nevada 258 New Hampshire 264 New Jersey 275 New Mexico 281 New York 303 North Carolina 316 North Dakota 324 Ohio 333 Oklahoma 341 Oregon 351 Pennsylvania 35S Rhode Island 369 South Carolina 374 South Dakota 383 Tennessee 391 Texas 398 Utah 408 Vermont 413 Virginia 419 Washington 429 West Virginia 435 Wisconsin 446 Wyoming i 454 PRELIMINARY DOCUMENTS. Alabama Alaska Arizona Arkansas California Canada (See also Provincial Re- quirements) Colorado Connecticut Delaware District of Columbia Florida Georgia Page. 27 33 35 41 47 56 69 73 77 82 85 92 Hawaii 100 Idaho . Illinois Indiana Iowa . , Kansas 112 129 134 Kentucky j^^ Louisiana icc Maine ■.■.■."■.■.; 168 Maryland lyg Massachusetts igg Michigan [ 201 Minnesota 2t-> SUBJECT INDEXES. 17 PRELIMINARY DOCUMENTS —(Continued.) Mississippi 220 Missouri 232 Montana 244 Nebraska 251 Nevada 258 New Hampshire 265 New Jersey 275 New Mexico 281 New York 305 North Carolina 317 North Dakota 324 Ohio 333 Oklahoma 341 Oregon 351 Pennsylvania 358 Page. Philippine Islands 362 Porto Rico 365 Rhode Island 369 South Carolina 374 South Dakota 383 Tennessee 391 Texas 398 Utah 408 Vermont 4^4 Virginia 419 Washington 43° West Virginia 435 Wisconsin 447 Wyoming 454 PUBLICATION. Charge. Faqb. Alabama $10.00 28 Arizona 2.50 36 California * 47 Canada * S^, 57. 60 Colorado * 69 Delaware t3 78 District of Columbia * 82 Florida 85 Georgia 25.00 92 Illinois 80.00 113 Indiana 4800 121 Iowa 12.00 129 Kentucky i44 Louisiana * ^55 Maine * 168 Maryland * 178 Michigfan * 201 Minnesota * 212 Mississippi 9.00 220 Charge. Fagb. Montana 9.00 244 Nebraska * 251 Nevada 20.00 259 New Mexico t 282 New York (on admission only) 306 North Carolina (included in fees). .. 317 North Dakota J 3^4 Ohio * 334 Oregon * 35^ South Dakota §i7-50 21, 383 Texas * 398 Utah * 408 Wyoming * 455 * No fixed charge. t Estimated. t Authorized rate for legal notices. § In each judicial district wherein oper- ating. RECIPROCAL LAW. Page. 28 47 62 74 78 92 "3 121 129 134 144 156 168 Maryland 178 Massachusetts 187 Michigan 201 Minnesota 212 Missouri 234 Montana 244 Alabama California Canada (Ontario) . Connecticut Delaware Georgia Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Page, Nebraska 251 New Hampshire 265 New Jersey 275 New Mexico 282 New York 3°6 North Carolina 317 North Dakota 324 Ohio 334 Oklahoma 34^ Pennsylvania 359 Rhode Jsland 369 Soutn Dakota 383 Tennessee 392 Texas 4oo Vermont 4i4 Virginia 42° Washington 43' Wisconsin 447 Wyoming 455 RATE SCHEDULES TO BE FILED. Kansas . . Louisiana Missouri . 134 232 New York . Texas Washington 306 399 430 18 FIRE INSURANCE LAWS, TAXES AND FEES. REINSURANCE IN Arizona Arkansas California Canada (See Prov. Reqmts.)---- Colorado * Delaware 78, 463 UNAUTHORIZED Page. 36 41 48 56 82 8S District of Columbia Florida* Idaho 105 Illinois 114 Indiana 121 Iowa 463 Louisiana * 153, 158 Massachusetts 187 Michigan * 202 Minnesota 212 Mississippi * 220 Montana 245 Nebraska 252 REINSURANCE Required byXaw. Alabama * Arizona || Arkansas * California a Canada * Colorado * Connecticut o Delaware II District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas _ Kentucky * Louisiana * Maine \ a Maryland * Massachusetts ..'. a Michigan * j Minnesota * Mississippi '. 5 Missouri * Montana ]" * Nebraska + Nevada ',\\ * New Hampshire * New Jersey * New Mexico '. * New York '. * North Carolina h North Dakota f COMPANIES PROHIBITED. Fagb Nevada 259 New Hampshire 265 New Jersey 276 North Carolina* 318 North Dakota 3^5 Ohio 334 Oregon 352 Pennsylvania * 359 South Carolina 374 Texas 4°° Utah 409 Virginia 420 West Virginia * 435 Wisconsin * 447 * Policies of reinsurance in licensed com- panies need not be signed by resident agents. RESERVE. d * I d Page. 28 36 41 48 56 70 74 78 82 85 92 10 1 los 114 121 130 135 I4S 158 169 179 188 202 212 221 235 245 252 259 266 276 282 307 318 Required by Law. * Ohio Oklahoma § Oregon f Pennsylvania e Porto Rico II Rhode Island * South Carolina || South Dakota, Dom. cos. t Tennessee * Texas * Utah c Vermont a Virginia || Washington \ West Virginia a Wisconsin a Wyoming * 325 RESIDENT Alabama .0 . . 20 Arizona ^g Arkansas .'!.'."!.'!!.'! 41 California !".!'.!!!" -is Canada 48 56 Pag& 335 342 352 360 365 369 375 383 392 400 409 414 420 431 435 449 455 * 50% annual premiums; pro rata, longer terms; 100%, marine premiums. 1 40% of all premiums in force. t Must equal 40% of year's premium re- ceipts. § 50% of all premiums in force. II No requirement. 11 Pro rata of all premiums in force. J 50% of fire premiums; 100% of marine. ^a'"^' unearned portion of premiums. c Amount required to safely reinsure all outstanding risks." d so % on fire risk less than one year to run, and pro rata on longer terms eS0% annual fire premiums; pro longer terms; 50% annual marine miums ; 100% other marine premiums. AGENTS. Colorado Connecticut ...'."..'." ^° Delaware "^i Florida ".;; |^ Georgia S 92 rata, pre- SUBJECT INDEXES. 19 Hawaii , Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts . . , Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire. New Jersey lOI los 114 121 130 13s 145 158 169 179 188 202 '.'.\V.. ......... 213 221 235 245 252 259 266 276 SEMI-ANNUAL Date Required. Page. Georgia * August 30 93 New Yorkt 3°? STANDARD RESIDENT AGENTS —(Continued.) Page, Pa^"" New Mexico ^^2 North Carolina 3i8 North Dakota 3^5 Ohio 335 Oklahoma 342 Oregon 352 Pennsylvania 3^° Rhode Island 369 South Carolina 375 South Dakota 384 Tennessee 392 Texas 4°° Utah 409 Vermont 414 Virginia 420 Washington 431 West Virginia 435 Wisconsin 449 Wyoming 455 STATEMENTS. * To Governor. t Quarterly. See "Tax Statements." Basis Form. California California Connecticut New York Iowa .Iowa Louisiana New York Maine Massachusetts Massachusetts Massachusetts Michigan Michigan Minnesota Minnesota New Hampshire Massachusetts New Jersey New York New York New York Per Cent of Gross Premiums. Alabama fq*bi}4 Arizona C2 Arkansas rcd*2yi California i § * i^ Canada e Colorado * » ^s Connecticut sg2 Delaware ^i/4 District of Columbia * VA Florida 2 Georgia gl Hawaii II2 Idaho If 2 Illinois /reap. Indiana f 3 Iowa t2j4 ICansas 1 2 Kentucky *2 Louisiana • 9«i^ Maine * i5^,, Maryland l^V^ Massachusetts 2 POLICY. Basis Form. Page. North Carolina New York 319 North Dakota New York 326 Oklahoma New York 342 Oregon New York 353 Rhode Island New York 369 South Carolina New York 375 South Dakota New York 384 Washington New York 431 West Virginia New York 436 Wisconsin New York 449 Page. 48 74 130 159 169 190 202 213 266 277 307 TAXES. „ ^ Per Cent of Gross P/^as. Premiums. Page 28 Michigan ^ 3 202 36 Minnesota 292 213 42 Mississippi to^ 222 48 Missouri 222 235 56 Montana qn 246 70 Nebraska wNeb. cos. / 253 75 Nevada None 260 79 New Hampshire *2 266 82 New Jersey pma2 277 86 New Mexico 92 283 93 New York ki 308 loi North Carolina ?2^ 319 106 North Dakota ^2^ 320 115 Ohio ^^Yz 335 121 Oklahoma 42 342 130 Oregon ^g2 353 13s Pennsylvania ;*2 300 145 Philippine Islands 1 1 302 159 Porto Rico WS 305 169 Rhode Island * 2 309 179 South Carolina *bbq2 375 190 South Dakota qc 2V2 384 20 FIRE INSURANCE LAWS. TAXES AND FEES. Tennessee 3lt 25^ Texas ddbbc^26/io United States aai Utah ciVz Vermont r* 2 Virginia g ee ri% Washington &61I 2j4 West Virginia qgz Wisconsin qgz Wyoming 2^ of Gross Premiums. Page. 392 402 457 410 415 420 431 436 45° 456 ♦Net. t Domestic companies 1%. t Foreign companies 4%. § Also license tax, $10. 1 Less return premiums, cancellations and reinsurances in authorized companies. a New Jersey companies taxed locally. a a On part of income. b Less property tax. b b May be reduced by investments in State. c In lieu of all other taxes. d Losses and commissions deducted. d d Also proportion of expenses of State Insurance Board. e Companies assessed for expenses. See text for Provincial requirements. e ell premiums do not exceed $100,000, 154%. f Less losses paid. TAX Date Required . Alabama March i Arizona March 31 Arkansas § March i California b March i Canada * None Colorado March i Connecticut a Jan. 31 Delaware Feb. 28 District of Columbia.. Jan. 31 Florida Jan. 31 Georgia July i Hawaii .June i Idaho March 15 Illinois May 31 Indiana Jan. 31-July 31 Iowa Jan. 31 Kansas Jan. 15 Kentucky Dec. 31 Louisiana Feb. 28 Maine Jan. 31 Massachusetts October 15 Michigan Feb. 15 Minnesota Feb. i Mississippi Jan. 30- July 30 Missouri March i Montana d April i Nebraska April i Nevada e New Hampshire Feb. i New Jersey Feb. 15 New Mexico Feb. i. New York March i North Carolina Jan. 30-July 30 TAXES —(Continued.) Per Cent g Less return premiums. /j Graded, averaging about i^%, plus two-fifths of 1% additional. » Also tax on capital. /Domestic companies, 8 mills on each dollar of gross premiums. jfe Foreign companies ^%; marine pre- miums are taxed 2% and mutual com- panies 1%. /Net receipts at personal property rate. m Less fire department taxes. n Premiums, $5000 or less, 2^4% ; over $5000, 2%. o One-quarter mill on each dollar of risks written. p Including reinsurance premiums re- ceived, less return premiums and reinsur- ance premiums paid. g Also fire marshal tax. r Also franchise taxes. J Domestic companies, 1% on capital; other State companies, reciprocal. * Details of reinsurances must be filed with claims for deductions. M Gross premiums at property rate. w Also IS cents per $1,000 of capitaliza- tion. Also stamp tax J^% on premiums. X Gross, less return premiums paid and reinsurance premiums received. y Also license fee $200. z Gross direct premiums, less return pre- miums thereon. z z Less reinsurance premiums paid. STATEMENTS.t Page. Date Required. North Dakota March i Ohio Jan. 31 Oklahoma Feb. 28 Oregon March i Pennsylvania J March j Porto Rico July 31 Rhode Island Jan. 31 South Carolina June 30-Dec. 31 South Dakota March i Tennessee Jan. 31-July 31 Texas § March i United States March i Utah Feb. 28 Vermont Feb. 28 Virginia March i Washington Feb. 15 West Virginia Jan. 31 Wisconsin Jan. 31 Wyoming § March I 29 36 42 48 56 70 75 80 82 86 93 lOI 106 "5 122 130 136 146 161 170 190 203 213 223 236 246 253 260 267 277 283 310 320 Page. 326 336 343 353 360 365 370 376 384 393 403 457 410 415 422 432 436 450 456 * See text for provincial requirements. tSee text for fire department tax state- ments, etc. J Domestic companies, Jan. 31 and July 31. § Within 60 days after Jan. i. a Domestic companies, Oct. 15. b Companies pay tax on premiums re- ceived less reinsurances in authorized com- panies and return premiums. c Copies of annual statement filed with assessors. d Within go days after Jan. i. SUBJECT INDEXES 21 VALUED POLICY. Page. 42 Arkansas California Delaware Florida Georgia Idaho Iowa Kansas Kentucky 147 Louisiana 161 Minnesota 213 Mississippi 223 Missouri 236 48 80 86 93 106 130 136 Page. Nebraska 253 New Hampshire 267 North Dakota 326 Ohio 336 Oklahoma 34i Oregon 353 South Carolina 376 South Dakota 384 Tennessee 393 Texas 403 Washington 432 West Virginia 43^ Wisconsin 45^ ADDENDA. FLORIDA. ANTI-COMPACT— The law which is referred to on page 463, forbidding companies to combine to limit the commission an agent may receive from any other company, was repealed in 191 1. SOUTH DAKOTA. PUBLICATION— Required in each judicial district where policies issued; cost, $I7.S0 per district There are twelve judicial districts in the State. State Officials Having Authority in Insurance Matters. Corrected to September 10, 1911. State. Name. Address. TlTlE. Next Session of Legislature. Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia . Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota ? Mississippi ^' Missouri Montana )- Nebraska f Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio ' Oklahoma [ Oregon f Pennsylvania ] Porto Rico Rhode Island South Carolina South Dakota Tennessee Texas United States Utah Vermont - Virginia Washington... West Virginia. , Wisconsin Wyoming Cyrus B. Brown.. . . William L. Distin . . Geo. U. Young .... Henry D. Green. . . E. C. Cooper Wm. L. Clayton.. . Burton Mansfield . . Charles H. MauU . . Geo. W. Ingham. . . Wm. V.Knott W. A. Wright D. L. Conkling I. C. Hattabaugh.. . . Fred. W. Potter Wm.H. O'Brien..,. John T. Bleakly . . . . Ike S, Lewis Charles W. Bell E. J. O'Brien, Jr. . . Beecher Putnam E. C. Harrington Frank H. Hardison. , C. A. Palmer Jos. A. O. Preus T. M. Henry Frank Blake H. R. Cunningham. . S. R. Barton J. Eggers Geo. H. Adams Vivian M. Lewis. . . . Jacobo Chavez Wm. H. Hotchkiss . . James R. Young. . . . W. C. Taylor Edward H. Moore... P. A. Ballard Sam A. Kozer S. W McCulloch.... G. Christiansen Charles C. Gray .... F. H. McMaster O. S. Basford G. Thos. Taylor... B.L.Gill Charles Nagel Willard Done Guy W. Bailey Edward H. Deavitt. . Joseph Button J. H. Schively Johns. Darst Herman L. Ekern. . . R. B. Forsyth Montgomery . Juneau Phoenix Little Rock... San Francisco Denver Hartford Dover Washington . . Tallahassee . . Atlanta Honolulu Boise City Springfield Indianapolis... Des Moines . . . Topeka Frankfort Baton Rouge... Augusta Baltimore Boston Lansing St. Paul Jackson Jefferson City . Helena Lincoln Carson City . . . Concord Trenton Santa Fe Albany Raleigh Bismarck Columbus Guthrie Salem Harrisburg. . . , San Juan Providence. . . . Columbia Pierre Nashville Austin Washington . . . Salt Lake City Essex Junction Montpelier. . . . Richmond. . . . Olympia Charleston Madison Cheyenne Canada. Dominion of Canada. . . Alberta British Columbia Manitoba New Brunswick Nova Scotia Ontario Prince Edward Island. Quebec Saskatchewan Wm. Fitzgerald E. Trowbridge Ernest F.Gunther. A. E. Ham Geo. Babbitt Fred. S. Mathers. . . Arthur Boswell. . . . A. Newbeiy Wm. Chubb Ed. J. Wright Ottawa Edmonton . . . . Victoria Winnipeg Fredericton . . . Halifax Toronto Charlottetown. Montreal Regina Secretary of State Secretary of Alaska Secretary of State Insurance Commissioner. . Insurance Commissioner Superintendent of Insurance Insurance Commissioner Insurance Commissioner Superintendent of Insurance State Treasurer Insurance Commissioner .... Insurance Commissioner Insurance Commissioner Superintendent of Insurance Auditor of State Auditor of State Superintendent of Insurance Insurance Commissioner .... Asst. Secretary of State Insurance Commissioner Insurance Commissioner Commissioner of Insurance. . Commissioner of Insurance. . Insurance Commissioner .... Aud. Pub. Act's & Ins. C'r. Superintendent of Insurance Commissioner of Insurance . Auditor of Public Accounts . State Controller Insurance Commissioner . Insurance Commissioner .... Superintendent of Insurance Superintendent of Insurance Insurance Commissioner . . . Commissioner of Insurance. . Superintendent of Insurance Insurance Commissioner .... Insurance Commissioner Insurance Commissioner .... Acting Secretary Insurance Commissioner Insurance Commissioner Insurance Commissioner .... Commissioner of Insurance. . Insurance Commissioner Sec. Dept. Com'rce & Labor Insurance Commissioner Secretary of State State Treasurer Commissioner of Insurance. . Insurance Commissioner State Auditor Commissioner of Insurance. State Auditor Jan., 1915 *Tan., 1913 Jan., 1913 Jan., 1913 Jan., r9i3 Jan., i9r3 Jan., 1913 Dec, 191T Apr., 1913 June, 1912 Feb., 1913 Jan., 1913 Jan., 1913 Jan., 1913 Jan., 1913 Jan., 1913 Jan., 1912 May, i9r2 Jan., 1913 Jan., 1912 Jan., 1912 Jan., 1913 Jan., 1913 Jan., i9r2 Jan., 1913 Jan., 1913 Jan., i9r3 Jan., 1913 Jan., 1913 Jan., 1912 *Jan., 1913 an., 1912 fan., I9r3 "an., 1913 an., 1913 an., i9r3 an., 1913 Jan., 1913 Jan., r9i2 Jan., 1912 Jan., 1912 Jan., i9r3 Jan., 1913 Jan., 1913 Dec, 1911 Jan., 1913 ^ Oct., 1912 Jan., 1912 Jan., r9i3 Jan., r9i3 Jan., 1913 Jan., i9r3 * May be altered because of admission as a State. Superintendent of Insurance Registrar Superintendent of Insurance. Inspector of Insurance Deputy Receiver General... . Deputy Provincial Secretary Inspector of Insurance Assistant Provincial Treas. . Inspector of Insurance. Registrar Joint Stock Cos . . ALABAMA. STATE REQUIREMENTS. AGENTS DEFINED— Sec. 7189. Code, 1907 (as amended in 1909). "Any person who solicits insurance on behalf of any insurance company, or takes or transmits, other than for himself, any application for insurance, or any policy for insurance, to or from such company, or in any way gives notice that he will receive or transmit the same, or receives or delivers a policy of insurance of any such company, or examines or inspects a risk, or re- ceives, collects or transmits any premium of insurance or makes or for- wards any diagram of any building or buildings (except as a bona fide draughtsman), or countersigns any policy of insurance, or does or per- forms any other act or thing in the making or consummating of any con- tract of insurance with or for any insurance company other than for him- self, or examines or adjusts, or aids in adjusting any loss for or on behalf of any such insurance company whether any such acts shall be done at the request or instance or by the employment of any insurance company, or of or by any other person (except those acting as attorneys at law), is deemed an insurance agent. For the doing of any of the acts aforesaid until such company shall have complied with the laws of the State, and received the proper license or certificate of authority from the Insurance Commissioner authorizing it to do business in this State, and until such person shall have received the proper certificate from the Insurance Commissioner authoriz- ing such person to perform any of the acts of an agent for any such com- pany, such person shall be guilty of a misdemeanor, and upon conviction shall be fined not less than one hundred dollars nor more than five hundred dollars, or may be imprisoned in the county jail not more than thirty days, or both, at the discretion of the court." Sec. 7715, Code of 1907 — "Any person who acts as agent of any un- licensed foreign insurance company, must, on conviction, be fined in a sum equal to the State, county and municipal tax required to be paid by such company for license and five hundred dollars in addition thereto ; and, on a second or other conviction, must be fined one thousand dollars, and may be imprisoned in the county jail, or sentenced to hard labor for the county, for not more than six months." AGENTS' LICENSES — Sec. 4561. "Every insurance company licensed to do business in this State under the provisions of this article, shall obtain from the Insurance Commissioner a certificate of authority for every individual agent writing or soliciting insurance for it in this State, and such certificate shall be renewable in January of each year." Persons acting as agents of ■unadmitted companies may be fined not less than $100 nor more than $500, or imprisoned for not more than thirty days, or both. They are also held personally liable for losses under policies so written. Application for '24 FIRE INSURANCE LAWS, TAXES AND FEES. annual licenses may be filed by any officer of company, not later than March i ; no seal required. A ruling of the Department of Insurance is as follows : "It is construed by this Department that any soliciting or writing of insurance or the countersigning of any insurance policy or policies by general or special agents, managers or other special representatives of insurance companies doing business in this State, whether such general or special agents, managers or special representatives reside within or without the State, makes it necessary for any such parties to procure the same cer- tificate of authority from this Department as is issued to local agents." Sec. 2090. Code of 1907— "When any person shall do or perform any of the acts, the doing or performing of which by him for any insurance com- pany not organized under, or incorporated by, the laws of this State, ren- ders him the agent of such company under the provisions of this code, such company shall be held to be doing business in this State, and shall be subject to taxation for State, county and municipal purposes in this State; and such person so doing or performing any of such acts shall be per- sonally liable for such taxes." ANNUAL STATEMENTS— Must be filed on or before March i. Penalty for failure to make and publish statement, $250 fine and expulsion for one year; for making false statement, not less than $500, nor more than $1000 fine, and, if sworn to, punishment for perjury. Time for filing may be ex- tended for good cause. ANTI-COINSURANCE— No requirement. ANTI-COMPACT — Sec. 4594. "Every contract or policy of insurance made or issued since the i8th day of February, 1897, shall be construed to mean that, in the event of loss or damage thereunder, the assured or beneficiary thereunder may, in addition to the actual loss or damage suffered, recover twenty-five per cent of the amount proven to be due the assured under such policy or policies, any stipulation or provision in such contract or policy to the contrary notwithstanding, if at the time of making such contract or policy of insurance or subsequently before the time of trial, the insurer be- longed to, or was a member of, or in any way connected with any tariff association or such like thing by whatever name called or who had made any agreement or had any understanding with any other person, corpora- tion or association engaged in the business of insurance as agent or other- wise about any particular rate of premium which should be charged or fixed for any kind or class of insurance risk ; and provided the right of action shall accrue fifteen days after the proof of loss had been filed with the home office of the insuring company, or in the hands of a duly qualified agent of the company. Provided always, however, that the penalty named herein shall not be enforced against any company which pays or offers to pay the assured or the beneficiary the full amount of the loss ascertained and proven to be due within sixty days after proof of loss. Sec. 4595. "Upon the trial of actions founded upon insurance policies, if it is shown to the ' reasonable satisfaction of the jury or the court trying the facts, that such ALABAMA. 25 insurer at the time of making of such agreement or policy of insurance or subsequently before the time of trial belonged to, or was a member of, or in any way connected with any tariff association or such like thing by whatever name called, either in or out of this State or had any agreement or had any understanding either in or out of the State with any other 'person, corporation or association engaged in the business of insurance as agent or otherwise about any particular rate of premium which should be charged or fixed for any risk of insurance on any property located in the State of Alabama, they must, if they find for the assured or beneficiary in addition to the actual damages, assess and add twenty-five per cent of the amount proven to be due the assured under such policy or policies, and judgment shall be rendered accordingly whether claimed in the complaint or not" Sec. 4596. "This article shall be liberally construed to accomplish its object." ANTI-DISCRIMINATION — Under Sec. 4579 no insurance company, nor any agent thereof, shall pay or allow, or offer to pay or allow, as inducement to insurance, any rebate of premiums payable on the policy; nor shall any particular policyholder of the same class be allowed any advantage or any valuable consideration or inducement whatever not specified in the policy. Penalty for violation, a fine of $100 to $500 for first offense, and not less than $250 for each subsequent offense. ATTORNEY — Insurance Commissioner must be empowered to accept service of legal process. CANCELLATION OF POLICY— No law requiring notice to insured. CAPITAL REQUIRED — Company must have at least $100,000 paid-up cash capital or surplus above all liabilities of $100,000. COMMISSIONS TO NON-RESIDENTS— No provision. DEPOSIT — Foreign company must have $200,000 invested in bonds of Ala- bama or of the United States, or of some State in the United States, or other good securities satisfactory to the Insurance Commissioner, on deposit in Alabama or some other State. DOMESTIC COMPANIES— Must have at least $100,000 of paid-in capital. Declaration must be filed with probate judge of the county, and the latter's certificate must be filed with the Secretary of State. Dividends can only be declared from surplus profits. Companies permitting policyholders to participate in profits may change plan to non-participation on due notice and consent of majority of stockholders. The promoters of a new com- pany, before selling its stock, must appoint the Insurance Commissioner attorney and secure a permit. EXAMINATIONS — Examination of a company must be made if a complaint is made against it. Party making complaint must give bond to cover ex- penses. If complaint is proved, company must pay expenses. Refusal to permit examination shall forfeit right to do business in the State. On re- fusal to pay for examination, the Insurance Commissioner may bring suit. Regular examinations made whenever the Insurance Commissioner may 26 FIRE INSURANCE LAWS, TAXES AND FEES. deem it prudent for the protection of the policyholders in the State. Do- mestic companies must be examined every year, or upon the request of five or more stockholders or persons pecuniarily interested therein, who make affidavit that they believe a company to be in unsound condition. Expenses must be paid by companies. Penalty for obstruction of examination, $ioo to $500 fine and revocation of license for one year. FEES — Sec. 4577 provides that the Insurance Commissioner shall collect from each company filing copy of charter or deed of settlement and financial statement $101, and same amount with each annual statement thereafter, for the privilege of carrying on its business in the State of Alabama ; for each certificate, or renewal thereof, to an insurance agent or solicitor, $3.50 ; (each member of a firm or corporation must have an individual certificate) ; for copies of any papers on file or deposited with the Insurance Commis- sioner, or in his office, 10 cents per hundred words. Fee for license to company, $10 per annum. FIRE DEPARTMENT TAX— None. FIRE MARSHAL — Provision is made for investigation of fires by the In- surance Commissioner. (See "Taxes.") FOREIGN COMPANIES' HOME OFFICE STATEMENTS— None re- quired. GENERAL PENALTY— Where no specific penalty for a violation of law is provided, a fine not exceeding $500 may be imposed. If a fine is not paid when due, the company forfeits right to do business in the State. IMPAIRMENT— When capital of "foreign" company is impaired, its license must be revoked; when capital of domestic company is impaired to the extent of twenty per cent, Commissioner must notify company to make it good within sixty days. INVESTMENTS PRESCRIBED-At least $50,000 must be invested in bonds of the United States or other good securities, to be certified as such by the Insurance Commissioner of the State in which the company is organized. Church mutual company must have a paid-up guarantee fund of not less than $50,000, invested in "safe, interest-bearing securities." Foreign com- panies' deposits in the United States may consist of "bonds of this State or of the United States, or of some State in the United States, or of other good securities satisfactory to the Insurance Commissioner " LICENSED BROKERS-Sec. 4581. "That any person who may desire to place his msurance m foreign companies not authorized to do business in this State may place such insurance, but the person placing such insurance shall at once make return of his action in this behalf to the Insurance Com- missioner, together with one per cent on the gross premiums received on the insurance placed, and it shall be lawful under such contracts for any person to adjust a loss under same." When a loss is adjusted under a policy so placed, the adjuster or the company shall cause to be paid to the Insurance Commissioner one-half of one per cent of the amount paid for such loss. ALABAMA. 27 LIMIT ON A SINGLE RISK— No requirement. LLOYDS — Sec. 4568. "That associations of individuals, whether organized within the State or elsewhere, formed upon the plan known as "Lloyds" — whereby each associate underwriter becomes liable for a proportionate part of the whole amount insured by policy — may be authorized to transact busi- ness of insurance, other than life, in this State, in like manner and upon the same terms and conditions as are required of and imposed upon insurance companies regularly organized. Provided, however, that all such Lloyds, whether organized within this State or elsewhere, not having an actual paid-up cash capital, shall make the same deposit as required by Sec. 4563, of foreign insurance companies incorporated or associated under the laws of any government or State other than the United States or one of the United States." MISCELLANEOUS — Companies insuring property of cotton manufacturers exclusively are exempt from compliance with the provisions of Art. I. of the Insurance Law. Law of August 25, 1909 — "That on and after the first day of January, 1910, it shall be unlawful for any agent, or any one acting in the capacity of an agent of any fire insurance company authorized to transact business in the State of Alabama to disclose to the agent, or representative of an- other fire insurance company, or any one acting in the capacity of agent or representative of another fire insurance company, the rates, premiums or price at which any insurance policy has been written, without first pro- curing in writing the consent of the owner, or owners, of the property insured. Provided, that nothing in this act shall be construed to affect or prevent bona fide reinsurance contracts; and provided, further, that nothing in this act shall be construed to prevent members of rate making associations or similar bodies from disclosing to other members of such associations, or bodies, the rates, prices, or premiums at which insurance may be written." Penalty, fine of $25 to $100, or imprisonment for 30 to 90 days, or both. Consolidations of insurance companies must be approved by the Insurance Commissioner. MUTUAL COMPANIES — Church insurance company may do business with paid-up guarantee fund of $50,000. PRELIMINARY DOCUMENTS— Copy of charter must be filed with the Insurance Commissioner; also a verified statement showing the condition of the company December 31 preceding. Foreign companies must file cer- tified copy of charter, certificate of deposit and certified copy of record of appointment of trustees, and deed of trust. Certificate of compliance with laws of company's home State only required when company first enters. Copy of charter, appointment of Insurance Commissioner as attorney to accept service, and certificate of deposit (of foreign companies) need be filed but once. Before receiving a license, each company must file an affi- davit that it has not violated the resident agents' law in the preceding year, and it accepts its obligations as a part of the consideration of its license. 28 FIRE INSURANCE LAWS, TAXES AND FEES. PUBLICATION — Statement must be published once in a daily or weekly news- paper of general circulation in the State, and copy of paper containing statement must be filed with Insurance Commissioner within thirty days after license is issued. Charge for publication (payable direct to such paper), $io. RECIPROCAL LAW— Sec. 4595. "Whenever the existing or future laws of any other State of the United States shall require of the insurance companies incorporated by, or organized under, the laws of this State, or the agents thereof, any deposit of securities in such State for the protection of policyholders, or otherwise, greater than the amount required for similar purposes from similar companies of other States by the then existing laws of this State, then, in every such case, all companies of such States establishing, or having heretofore established, an agency or agencies in this State, shall be, and are hereby, required to make the same deposit for a like purpose with the Treasurer of the State, and to pay into the treasury of this State the taxes, fines, penalties, license fees, or otherwise, an amount equal to the amount of such charges and payments imposed by the law of such State upon companies of this State and the agents thereof." REINSURANCE — No law forbidding reinsurance in any companies. REINSURANCE RESERVE— Fifty per cent of the premiums received on policies having less than one year to run, and pro rata on those for longer periods. RESIDENT AGENTS— Sec. 4561, Code of Alabama, 1907. "Insurance com- panies not incorporated by the laws of the State of Alabama, but legally authorized to do business in this State through regularly commissioned and licensed agents located in this State, shall not make contracts of insurance on life or property herein save through agents of such companies regularly commissioned and licensed to write policies of insurance in Alabama ; but this act shall not apply to fire insurance companies covering actual property of railroad companies engaged in inter- State commerce." Penalty for violation, forfeiture of right to do business in the State for one year. SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— None prescribed. TAXES— Sec. 4557 of the Code of Alabama, 1907, as amended in 191 1, levies a tax of one and one-half per cent upon gross premiums, less return pre- miums, received in Alabama by all except domestic fire insurance com- panies. Domestic companies pay a tax of one per cent, less tax paid in Alabama on property or shares. Credit is allowed for reinsurances in authorized companies, as provided in Sec. 2089 of the Code. The law of August 31, 1909, imposes a tax of one-fifth of one per cent upon gross premiums, less return premiums, to provide for the expense of investigat- ing fires, payable when annual statement is filed. Taxes payable to Insur- ance Commissioner. Penalty for failure to make return or to pay tax as required, double amount of tax. ALABAMA. 29 TAX STATEMENTS— Must be filed on or before March i. Penalty for fail- ure to make returns of premiums, $500, and for non-payment within 60 days, revocation of license until taxes and penalties are paid. VALUED POLICY— None. COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. (None to be charged in excess of one-half of that charged by the State.) "After the year 191 1 no license or privilege, tax, or other charge for the privilege of doing business shall be imposed by any municipal corporation upon any fire or marine insurance company doing business in such munici- pality, except upon a percentage of each one hundred dollars of gross premiums, less the premium returned by cancellation, on policies issued during the preceding year in such municipalities ; provided that such per- centage shall not exceed four dollars on each one hundred dollars and major fraction thereof of such gross premiums. * * * On the first day of January of each year, or within sixty days thereafter, each insurance company which did any business in any city or town in this State during any part of the preceding year shall, if a license or privilege tax is im- posed by said city or town on such insurance companies, furnish the mayor or executive head of such city or town a statement in writing, duly certi- fied, showing the full and true amount of gross premiums received during the preceding year, as provided under this act, and shall accompany such statement with the amount of license due according to the foregoing schedule. Failure to furnish such statement, or to pay such sum, shall sub- ject the company and its agents to such penalties as the ordinances of such city or town may prescribe for doing business therein without a license. ABBEVILLE — For each company, $10, payable January i. ALABAMA CITY — For each company, $15, payable January i. ALBERTVILLE— For each company, $10. ALEXANDER CITY— For each company, $25, payable January i. ALICEVILLE— For each company, $5.50. ANDALUSIA — For each company, $25.50, payable January i. ANNISTON — For each company, each agency, $60, payable semi-annually January i and July i. ASHLAND — For each company, $5. ATHENS— For each company, $5, payable April 15. ATMORE— For each agent or agency firm, $5 per annum, payable semi- annually January i and July i. ATTALLA— For each company, $10; for each agent, $10, payable January i. AUBURN— For each company, $10, payable January i. BAY MINETTE— For each company, $10, payable January i. BESSEMER— For each company, $21, payable January i. 30 FIRE INSURANCE LAWS, TAXES AND FEES. BIRMINGHAM — For each agency, for each fire insurance company repre- sented, $200; each insurance adjuster, $50; each automobile indemnity (only) insurance company, $50; each insurance broker, $50. Each agency paying $200 for a company may have one sub-agency license in any one of the towns recently absorbed by Birmingham on payment of $50. BREWTON— For each company, $10. BRANTLEY — For each agent, $5.50, payable by January 15. BRIDGEPORT— For each agent, $5, payable January i. BRUNDIDGE — For each company, $10, payable January i. CALERA — For each company, $5 ; for each agent $5, payable January i. CAMDEN— For each agent, $5 ; for each company, $5. CAMP HILL — For each company, $5.50; for each agent, $5.50, payable Jan. i. CARBON HILL — For each company, $12.50. CENTERVILLE— For each agent, $5, payable January i ; or $3 after July i. CLANTON — For each company, $5, payable March i. CLAYTON — For each company, $10, payable January i. CLIO — For each company, $10, payable January i. COFFEE SPRINGS— For each agent, $5. COLLINSVILLE— For each company, $5. COLUMBIA— For each agent or agency, $10, payable October i. COLUMBIANA — For each company, $10, payable January i. CORDOVA — For each company, $5.50, payable January i. CUBA — For each company, $2.50. CULLMAN — For each company, $10.50, payable January i. DADEVILLE— For each company, $10.25, payable January i. DECATUR— For each company, $15.50, payable January i. DEMOPOLIS— For each company, $25.50, payable January i. DOTHAN— For each company, $30, payable January i. EAST LAKE — For each company, $10.50. ELBA— For each company, $13.75, payable July i. ENSLEY— For each company, $15, payable January 10. ENTERPRISE— For each company, $10, payable January i. EUFAULA— For each company, $10, payable January i to 15 for calendar year; two and one-half per cent on gross premiums for fire department- one per cent on net premiums, city tax. EUTAW— For each company, $10, after February 18. EVERGREEN— For each company, $10.50, payable January i. FAYETTE— For each company, $2.50, payable January i FAUNSDALE— For each company, $7.50. FLORALA— For each company, $10, payable January i. FLORENCE— For each company, $25, payable January i to 1=; FSR??rYS?V°'- T"" ^^'"P^"^' ^^°-5°' P^y^ble January . FRmTmi^^?"?' ^^^'i' ^""^P^"^' ?^5-So, payable January i. r Anc^M J u'" ^^^"*' ^^-5°' P^y^^l^ J^""^^ I and July i. GADSDEN— For each company, $33.50, payable January i. ALABAMA. 31 GENEVA — For each company, $io ; for each agent, $5, payable January i. GEORGIAN A — For each company, $10, payable January i. GOODWATER — For each company, $10.50, payable January i. GREENSBORO— For each company, $5, payable October i. GREENVILLE — For each agent, $25.50, payable in January, or semi-annually, January i and July i. GUNTERSVILLE — For each company, $10, payable January i. GURLEY— For each agent, $10. HARTFORD — For each company, $10, payable January i, for as many agents as desired. HARTSELLE — For each agent, for each company represented, $10, when commencing business, or January i. HEADLAND — For each company, $15, payable January i. HEFLIN — For each company, $5, payable January i. HUNTSVILLE— For each company, $37.50, payable January i. JACKSON — For each company, $25, payable January i. JACKSONVILLE— For each company, $10 per annum, payable semi-annually January i and July i. JAMES— For each agent, $25. JASPER — For each company, $25.50, payable January i. LAFAYETTE— For each company, $15.50, payable January i. LANETT — For each company, $10, payable January i. LINDEN — For each company, $10 per annum. LINEVILLE— For each company, $10. LOUISVILLE— For each company, $10. LUVERNE— For each company $10, for each agent $5, payable January I to 15. MARION — For each company, $25. MOBILE— For each exclusive fire company or agent thereof, $250 ; for each exclusive marine company, or agent thereof, $150; for each fire and marine company, or agent thereof, $400, payable January i. MONTEVALLO— For each company, $5, payable February i. MONTGOMERY— For each company, $400.50, payable January i. NAUVOO— For each agent, $5. NEW BERNE — For each company, $5, payable March 15. NEW BROCKTON— For each company, $5 ; for each agent, $5. NEW DECATUR— For each company, $15, payable April i. NEWTON — For each company, $5, before commencing business. NOTASULGA— For each company, $5. 0AK:MAN— For each agent, $12.25. OPELIKA— For each company or each agent representing same, $50, payable January i or July i ; also 50 cents for issuing license. OXFORD— For each company, $10, payable January i. OZARK — For each company, $20, payable January i. PELL CITY— For each company, $5.50, payable January i. 32 FIRE INSURANCE LAWS, TAXES AND FEES. PENSACOLA — For each company, $37.50; for each agent, $5, payable Oct. i. PHENIX — For each agent of each company, $10, payable January i. PIEDMONT — For each company, $10, payable January i. PINCKARD — For each company, $5, payable January i. PINEAPPLE— For each agent, $5. PRATT CITY — For each company, $6, payable January 15. PRATTVILLE — For each company, $5, payable January i or July i. ROANOKE — For each company, $10.50, payable January i and July i. RUSSELVILLE — For each company, $5, semi-annually, January i and July i. SAMSON — For each company, $5. SCOTTSBORO — For each agent, $5, payable January i. SELMA — For each company, $250, payable November i, and one and one- tenth per cent on net premiums, payable between December and May. SHEFFIELD — For each company, $15, payable January i. SLOCOMB — For each company, $5, payable January i. STEVENSON — For each company, $10, payable in January. SULLIGENT — For each agent, for each company represented, $5, payable January i. SYLACAUGA — For each company, $10, payable January i. TALLADEGA — For each company, $20.25, payable January i. THOMASTON — For each company, $2.50, payable January i to February i. THOMASVILLE— For each company, $5, payable January i ; for each firm, $5. THORSBY— For each agent, $5 ; after July i, $2.50 ; also fee, 50 cents. TROY — For each company, $35, payable January i. TUSCALOOSA — For each company, $40; for each agent, $30, payable before engaging in business. TUSCUMBIA— For each agent for each company represented, $10.50, pay- able January i. TUSKEGEE — For each company, $15, payable January i. UNION SPRINGS— For each company, $25.50, payable January i ; also one per cent of premiums, payable December 31. UNIONTOWN— For each company, $15.50, payable January i. WARRIOR— For each agent, $5. WEST BLOCTON— For each company, $10, payable January 15. WETUMPKA— For each agent, $12.50, payable January i. WILSONVILLE— For each company, $10. WOODLAWN— For each company, $16, payable February i. YORK— For each company, $5, payable January i. ALASKA. AGENTS' LICENSES— Title I, Chap, i, Sec. 29, Civil Code, approved June 6, 1900. "Any person or persons, corporation or company, prosecuting or attempting to prosecute any of the following lines of business within the District of Alaska shall first apply for and obtain license to do so from a District Court or a subdivision thereof in said district, and pay for said license for the respective lines of business and trade as follows, to wit: Insurance agents and brokers, $25 per annum." FEES — Civil Code of 1900, Sec. 365. "The secretary of the district shall col- lect from each company or person for the service provided in this chapter the following fees: For filing certificate of qualification, $5; for filing power of attorney, $5." Clerk of court, for issuing license to agent or broker, $25. GENERAL PENALTY— Civil Code of 1900, Sec. 364. "Any officer, agent or employee of any insurance company or other person violating any of the provisions of this chapter shall be fined not less than $100 nor more than $500, and in default of payment of such fine shall be imprisoned not less than ten days nor more than six months." PRELIMINARY DOCUMENTS— Civil Code of 1900, Sees. 360, 361, pro- vides that a company must file certificate of incorporation and power of attorney with the clerk of each division of the District Court, which power of attorney shall authorize a citizen and resident of the district (and in his absence, the clerk of anv division of the District Court) to receive and accept service in any proceedings in a court of justice of the dictrict. A certificate that the company is qualified to transact business in its home State must be filed with the secretary of the district. The certificates specified in Sees. 360 and 361 are only required to be filed once. The provisions of the law apply to any individual or association engaged in transacting insurance (except secret, fraternal or co-operative societies). ARIZONA. STATE REQUIREMENTS. AGENTS DEFINED— Chap. IV., Sec. 54. "Any person or firm in this Terri- tory who receives or receipts for any money on account of, or for any con- tract of insurance made by him or them, or for any such insurance company or individual aforesaid, or who receives or receipts for money from other persons to be transmitted to any such company or individual aforesaid, or a policy of insurance or any renewal thereof, although such policy of insur- ance is not signed by him or them as agent or agents of such company, or who in any wise, directly or indirectly, makes, or causes to be made, any contracts of insurance for or on account of such insurance company afore- said, shall be deemed, to all intents and purposes, an agent or agents of such company, and shall be subject and liable to all the provisions, regulations and penalties of this chapter." AGENTS' LICENSES — Agents must procure licenses from the Territorial Secretary, expiring March 31 in each year. Penalty for acting as agent for unauthorized company, fine of $50 to $200 or imprisonment for not over six months. Applications for licenses must be made (for old agents) by the company or its authorized general agent,. before March 31. General agent's authorization must be filed with Secretary. A firm or agency corpo- ration is licensed for a single fee. ANNUAL STATEMENTS— Must be filed before March 31 of each year. Penalty for failure to file statement, liability to fine of $1000. ANTI-COINSURANCE— No law. ANTI-COMPACT— No law. ANTI-DISCRIMINATION— No provision. ATTORNEY— An agent must be appointed in each county where a company operates, to accept service of legal process ; notice of appointments being filed in the offices of the respective County Recorders. CANCELLATION OF POLICY— No requirement as to notice to insured CAPITAL REQUIRED— No requirement. COMMISSIONS TO NON-RESIDENTS— Commissions on Arizona risks must be paid to resident agents. DEPOSIT— Chap. IV., Sec. 57. "No insurance corporation, company or asso- ciation, organized under the laws of any other State, Territory or foreign country shall be permitted to do or transact any kind of insurance business in this Territory until such corporation, company or association, in addi- tion to other requirements of law, shall have made, executed and deposited with the Territorial Treasurer a good and sufficient bond, with two or more sureties, in the sum of fifteen thousand dollars, for the benefit and security ARIZONA. 35 of its policyholders residing in the Territory." Sec. 62. "Such insurance corporation, company or association may, in lieu of the bond mentioned in Sec. 57 of this title, deposit with the Territorial Treasurer, Territorial fund- ing bonds or some other interest-bearing bonds of the Territory of Arizona, or any of the counties thereof, to the amount of fifteen thousand dollars, to be held in trust for the benefit of local policyholders of said insurance corpo- ration, company or association." Acting for company which has not filed bond is a misdemeanor. DOMESTIC COMPANIES— No special provisions. EXAMINATIONS— No provision. FEES — For filing statement, $5 ; for issuing certificate of authority, $5 ; for issuing each subsequent certificate of authority to other agents of same company, $2 ; for filing articles of incorporation, $5 ; for filing notice of appointment of agent, twenty cents (payable to recorder of county wherein appointment is filed) ; for printing statement in newspaper, $2.50. These fees payable to office of Secretary of Arizona. FIRE DEPARTMENT TAX— None. FIRE MARSHAL— No provision. FOREIGN COMPANIES' HOME OFFICE STATEMENT— Not required to be filed. GENERAL PENALTY— For violation of the law not specified, a fine not to exceed $1,000. For violation of resident agents law, etc., revocation of license for at least one year, and fine of $500. IMPAIRMENT— No requirement. INVESTMENTS PRESCRIBED— No provision. LICENSED BROKERS— No provision. LIMIT ON A SINGLE RISK— No provision. LLOYDS — No requirement. MISCELLANEOUS— Companies must furnish insured with blanks for proofs of loss within twenty days after application for same, or be debarred from requiring proofs from the insured as a precedent to settlement. Copy of any application for insurance which, by the terms of the policy, is made a part of the contract, or is referred to therein, or which may in any man- ner affect the validity of such policy, must be attached to the policy, or the company is precluded from pleading, alleging or proving any such appli- cation, in an action upon such policy, and the plaintiff shall not be required to plead or prove such application, but has the option of so doing. MUTUAL COMPANIES— No requirement. PRELIMINARY DOCUMENTS— Company must file with the Secretary of Arizona a copy of its articles of incorporation, a statement showing its condition, and acceptance of provisions of act of March 21, 1907, and re- ceive from him a certificate of authority to do business. Certificate of com- pliance with laws of company's home State must be filed only when enter- ing. Penalty for doing business in Arizona without authority, fine of $100 to $500. 36 FIRE INSURANCE LAWS, TAXES AND FEES. PUBLICATION — Statement of premium receipts must be published in at least one newspaper published in the Territory. (See Fees.) RECIPROCAL LAW— None. REINSURANCE — Reinsurance in unauthorized companies is prohibited. Con- cerning this law, the Attorney-General has advised the Secretary that "the provisions of this section cannot be enforced, and may be treated by your office, as they will by this, as null and void." All reinsurances must be reported annually. REINSURANCE RESERVE— No requirement. RESIDENT AGENTS— All business must be written through resident agents. SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— No requirement. TAXES — Two per cent on gross premiums, in lieu of all other taxes, payable to Secretary of the Territory. TAX STATEMENTS— Must be filed in March. VALUED POLICY— No provision. COUNTY TAXES AND FEE5. None. MUNICIPAL TAXES AND FEES. FLORENCE — For each agent, $3 per quarter, payable January i, April i, July I and October i. GLOBE— For each agency, $22^0, payable January i, April i, July i and October i. MESA — For each agent, $10, payable $2.50 per quarter. NOGALES — For each agent or firm, $2 per month, in advance. PHOENIX— For each company represented, $2, payable quarterly by each agent (May, August, November and February). PRESCOTT — For each agent, $24 per annum, payable quarterly. TEMPE— For each agent, $5 per quarter, January, April, July and October. TUCSON — For each company, $5 per quarter. YUMA— For each company, $10 per annum, payable quarterly. ARKANSAS. STATE REQUIREMENTS. AGENTS DEFINED— Act 117 of 1895, Sec. i. "Any person who shall here- after solicit insurance or procure applications, shall be held to be soliciting agents of the insurance company or association issuing a policy on such application, or on a renewal thereof, anything in the application or policy to the contrary notwithstanding." Penalty for soliciting business for an unauthorized company, a fine of $500 for each month or fraction thereof during which such business was transacted. AGENTS' LICENSES — ^Agents must procure licenses from the Auditor, which expire March i. Penalty for acting as agent, without license, or for unauthorized company, fine of not more than $500. Applications for licenses not required to be made by company officers. Each soliciting or selling member of a firm must hold a license. ANNUAL STATEMENTS— Must be filed within sixty days after January i. Penalty for failure to transmit any statement required, fine of $100 for each day's neglect. Making false statement is a felony, punishable by imprison- ment for three to ten years. Mutual company must file annual statement in February; if organized outside of Arkansas, must file statement within sixty days after January i. ANTI-COINSURANCE — No provision. Valued policy law precludes use of coinsurance clauses in policies on buildings. ANTI-COMPACT — The Act of January 23, 1905, was a very drastic measure, and was extra-territorial in its application, prohibiting licensed companies from being members of any organization which fixed or maintained pre- mium rates anywhere. This law was amended in 1907 by eliminating the provision which made the 1905 law extra-territorial in effect, so that the present law merely prohibits licensed companies from co-operating in re- regard to premium rates in Arkansas. Affidavit of compliance required annually. ANTI-DISCRIMINATION— No provision. ATTORNEY — The Auditor of State, or some other resident, must be ap- pointed to accept service of legal process. CANCELLATION OF POLICY— No requirement as to notice to insured. CAPITAL REQUIRED— Subscribed, $100,000 or more; paid up, not less than $50,000. COMMISSIONS TO NON-RESIDENTS— Prohibited on Arkansas risks. DEPOSIT — Sec. 4124. "All fire, life and accident insurance companies, indi- vidual or corporation, now or hereafter doing business in this State, shall, in addition to the duties and requirements now prescribed by law, annually 38 FIRE INSURANCE LAWS, TAXES AND FEES. give a bond to the State of Arkansas with not less than three good and sufficient sureties, to be approved by the Auditor of State, in the sum of twenty thousand dollars, conditioned for the prompt payment of all claims arising and accruing to any policyholder issued by any such company, in- dividual or corporation, upon the life or person or property of any citizen of the State, and such bond shall be annually renewed; provided nothing in this act shall be construed as applying to fraternal orders insuring the lives of their members." Penalty for doing business with- out giving bond, fine of $20 to $100. Domestic mutual companies must file bonds for $15,000; and such companies filing an additional bond for $iQ,ooo may issue non-assessable policies. Act of May 13, 1905. Sec. 4. "All foreign mutual fire insurance companies authorized to do business in this State shall annually give a qualified indemnity bond to the State of Arkansas with not less than three good and sufficient sureties, or with a surety, trust, or indemnity company authorized to do business in this State, as surety, to be approved by the Auditor of the State, in the sum of $20,000, conditioned for the prompt payment of all claims arising and accruing to any person during the term of said bond by virtue of any policy issued by any such company upon any property situated in the State, and said bond shall be in full force and effect during the lifetime of any policy issued by said company. Not less than two of the sureties on the aforesaid bond shall be residents of this State, and said resident bondsmen shall own property in this State subject to execution equal in value to the amount named in the bond. It shall be the duty of the Auditor of State to require any such insurance company to file a new bond as herein provided at any time when it shall appear that such bond is not sufficient or that the amount thereof has been exhausted by judgment or that the sureties on same have died or become insolvent." Sec. 5. "All such companies shall comply with the provisions of Sees. 4336, 4338, 4344 and 4346 of Kirby's Digest of the Statutes of the State of Arkansas not inconsistent with this act." DOMESTIC COMPANIES— No special provisions. EXAMINATIONS— May be made whenever the Auditor may deem it necessary. FEES— For filing certified copy of charter, $15 ; for filing annual statement or certificate of other State Commissioner, in lieu thereof, $10; for certificate of authority to transact business, $2 ; for publication of annual statement or other publication required by the insurance laws of this State, or for official examination of companies in person or by attorney, as provided by law, the actual expenses incurred ; for every copy of any paper filed in the bureau, the sum of 20 cents per folio ; affixing the official seal to such copy and certifying same, $1 ; certificate for agent, $2. Act No. 87, approved March 8, 1911. Sec. i. "That all corpora- tions organized under the laws of this State, except such corporations as are hereinafter specifically mentioned, shall pay for the filing of its articles ARKANSAS. 39 of incorporation a fee of twenty-five ($25) dollars for the first ten thousand ($10,000) dollars, or under, of its authorized capital stock, and one-tenth of one per cent additional on all amounts in excess of ten thousand ($10,000) dollars ; and shall pay for any increase of its capital stock twenty-five ($25) dollars on the first ten thousand ($10,000) dollars, or less, and one-tenth of one per cent additional on all amounts in excess of ten thousand ($10,000) dollars." Sec. 11. "All insurance com- panies organized under the laws of any other State, and seeking to do busi- ness in this State, shall pay for filing copies of articles of incorporation, the same fees as are charged insurance companies, organized under the laws of the State of Arkansas, for filing copies of articles of incorporation in the State where such foreign company, that seeks to do business in this State, was organized; provided, foreign insurance companies organized outside of the United States, shall pay the same fees for filing copies of articles of incorporation, as are required by the State in which their princi- pal office in the United States is maintained. Provided further all foreign unincorporated insurance companies, associations, shall pay five hundred dollars for the privilege of doing business in this State." Sec. 12. "All corporations that have heretofore paid all the fees prescribed by previous Acts of the General Assembly of this State, shall not be required to pay the fees prescribed by this Act." Sec. 13. "All amounts paid to the State Treasurer under this Act shall be placed to the credit of the general revenue fund and the State Treasurer shall issue to the corporation pay- ing the amount triplicate receipts, one of which shall be filed by the cor- poration with the State Auditor and one with the Secretary of State. Upon filing the receipt with the Secretary of State, if by a domestic cor- poration, and such corporation has complied with the other laws of the State of Arkansas, the Secretary of State shall issue to it a charter to do business in this State. If the payment is made by a foreign corporation, and such foreign corporation has complied with all the laws of the State of Arkansas, regulating foreign corporations, the Secretary of State shall issue to such corporation a certificate showing that it is authorized to do intra-State business in Arkansas." Sec. 15. "If any corporation embraced herein shall amend its charter so as to extend its operations, it shall pay additional fees on the same basis prescribed by this act for such incor- poration." Sec. 16. "This Act shall not be deemed a repeal of any law now in force regulating corporations, or the payment of fees and taxes by corporations, except that Act 294, approved May 31, 1909. is hereby repealed. This law being necessary for the immediate preservation of the public peace, health, and safety shall be in force from and after its passage." The foregoing requirement as to companies organized outside of the United States is construed by the Attorney-General as follows : "I am of the opinion that the clause quoted means that a company organized outside of the United States shall pay for filing a copy of its articles of incorporation 40 FIRE INSURANCE LAWS, TAXES AND FEES. in this State the same fees as such company would be required to pay in the State wherein it maintains its principal office for the United States and for business transacted therein. That is to say, if a British company maintains its principal office in the United States in the State of Connecti- cut and desires to transact business in the State of Arkansas if should pay to the State of Arkansas for the filing of its articles of incorporation the same fees as are required of it by the State of Connecticut. FIRE DEPARTMENT TAX— No provision. FIRE MARSHAI^-No provision. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Must be filed before July i. (Not enforced.) GENERAL PENALTY — For any violation of, or non-compliance with, law, revocation of license and fine of $20 to $500. Penalty for making false representations to obtain business, imprisonment for three to ten years. IMPAIRMENT — If after charging reinsurance reserve against company and adding all other debts and claims against the company, capital stock is im- paired twenty per cent, Commissioner shall notify company to make good in sixty days. No new business shall be done until the paid-up capital shall be equal to the amount required by law for the transaction of business. INVESTMENTS PRESCRIBED— No provision. LICENSED BROKERS— No provision. LIMIT ON A SINGLE RISK— No provision. LLOYDS — No provision. MISCELLANEOUS — Penalty for non-payment of loss within time specified in policy, twelve per cent damages upon the amount of loss, with reason- able attorneys' fees. Company removing suit to Federal court will have its license revoked. MUTUAL COMPANIES— Act 14 of 1897, Sec. i. "That it shall be lawful for any number of farmers of this State to make mutual pledges and give valid obligations to each other for their own insurance from loss by fire, or loss or damages by tornadoes, lightning, cyclones or wind storms, but such association of persons shall in no case insure any property not owned by one of their own number; provided, that the word farmer as used in this act shall apply to and include only such person as actually resides upon a farm and cultivates or superintends the cultivation of same." Act of May 13, 1905. Sec. I. "No mutual fire insurance company organized outside of this State shall be permitted to do business in this State until it shall have assets amounting to $50,000 in cash or securities that can be converted into cash within sixty days, in excess of all its liabilities including a re- serve of the entire unearned premiums on all outstanding policies " See "Deposit" ; "Resident Agents" ; "Annual Statements." A mutual company may be organized by three or more citizens who are propertyholders and taxpayers. Articles of association and incorporation must be filed with Secretary of State, and certified copy thereof with Auditor of State Only citizens and residents and taxpayers for at least three years are eligible to ARKANSAS. 41 act as director or officer. Company must have at least $100,000 of risks and $3000 of premiums subscribed for. PRELIMINARY DOCUMENTS— Company must file with the Auditor a certified copy of its charter and a certificate giving the date of its organiza- tion and the location of its principal office and a statement showing its con- dition and business on December 31, preceding. Foreign companies must file certified copy of charter and certificate giving date of organization and location of its principal office ; designation of attorney ; statement of capital employed in operating its business in the State; statement of assets and liabilities; directors' resolution authorizing service upon any agent or the Secretary of State. See "Deposit." Certificate of compliance with laws of company's home State required annually by March i. Penalty for doing business without complying with act 313, approved May 13, 1907, a fine of $1000. PUBLICATION— No requirement. RECIPROCAL LAW— None. REINSURANCE — ^Reinsurance in unauthorized companies is prohibited, but there is no penalty attaching. The original insuring company must report all premiums on such business, and pay the tax thereon. REINSURANCE RESERVE — The reinsurance fund must be maintained at fifty per cent of all premiums on unexpired fire risks that have less than one year to run, and pro rata of all premiums on unexpired risks having more than one year to run; the entire premiums received on unexpired marine and inland risks. When the reinsurance fund thus calculated is less than forty per cent of all premiums received during the year, then the whole of the premiums received on unexpired risks shall constitute the reinsurance fund. Domestic mutual companies must reserve at least fifty per cent of premiums for payment of losses and benefit of policyholders. RESIDENT AGENTS— Act of May 11, 1905. Sec. i. "Any fire insurance company * * * authorized to do business in this State is hereby pro- hibited from authorizing or allowing any person, agent, firm or corpora- tion who is non-resident of the State of Arkansas to issue or cause to be issued its own policy or policies of insurance or reinsurance on property * * * located in the State of Arkansas." Sec. 2. "Any person, agent, firm or corporation licensed by the Auditor to act as agent for any fire insurance company, * * * in the State of Arkansas is hereby prohibited from paying directly or indirectly any commission, brokerage, or other valuable consideration on account of any policy or policies covering any property * * * in the State of Arkansas, to any person, agent, firm or corpora- tion who is a non-resident of this State, or to any person, agent, firm or corporation not duly licensed by the auditor as agent for any fire insur- ance company. * * * " Penalties for violations, by companies, first offense, revocation of license for three to six months; for each subsequent offense, revocation of license for one year ; by agents, revocation of licenses for all companies for three to six months for first offense, and for one 42 FIRE INSURANCE LAWS, TAXES AND FEES. year for second offense. (No exception of railroad property or property in transit is provided for in the law.) Each member of a fire company who actually solicits or writes insurance is required to hold license. A mutual company organized outside of the State must appoint a resident general agent, and all business transacted in Arkansas shall be transacted through said general agent and agents appointed by and reporting to him. SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— None required. TAXES — Sec. 4123. "Every company doing insurance business in this State shall file with the Auditor, at the same time with its annual statement, a sworn statement of its net receipts in this State for the year ending on the thirty-first day of December, after deducting losses and commissions from its gross receipts, and shall pay into the State Treasury on or before the first day of March a tax of two and one-half per centum on such net re- ceipts, and such tax shall be in lieu of all other taxes — State, county or municipal — on such receipts, nor shall any city, town or municipality im- pose any license fee or privilege tax upon any company, or the agent of any company, for the privilege of transacting such business of insurance." Be- sides losses paid and commissions paid in the State, cancellations and re- insurance premiums paid to companies authorized to do business in the State, are also allowed. Franchise tax, payable to the Treasurer of State annually, on or before August 10, $100 if capital stock outstanding is less than $500,000, or $200 if capital is $500,000 or more. Mutual company pays $50. TAX STATEMENTS— Must be filed within sixty days after January i. Franchise tax statements must be filed annually, on or before July i, with the Arkansas Tax Commission, if in existence, and if not, with the assessor of the county containing the domicile or chief place of business in the State of the company reporting. VALUED POLICY— Law passed 1889, amended 1899, Sec. i. "A fire insur- ance policy, in case of a total loss by fire of property insured, shall be held and considered to be a liquidated demand against the company for the full amount for which the company charges and collects premiums; provided, that the provisions of this article shall not apply to personal property." COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. None. CALIFORNIA. STATE REQUIREMENTS. AGENTS DEFINED— No statutory definition. AGENTS' LICENSES— Sec. 633. "No person shall in this State act as the agent or solicitor of any insurance company doing business in this State until he has produced to the Commissioner, and filed with him, a duplicate power of attorney from the company, or its authorized agent, authorizing him to act as such agent or solicitor. Upon filing such power, the Commis- sioner shall issue a license to him to act as such agent or solicitor for such company, if such company has received a certificate of authority from such Commissioner to do business in this State. Such license shall continue in force until July ist after the date thereof, but must be, and shall be, sooner revoked upon application of the company or its authorized agent. Such license may be renewed from time to time, for an additional period of twelve months, on production by the holder to the Commissioner of a cer- tificate from the company that such person's authority as such agent or solicitor continues." Sec. 623. "The Commissioner must require every company, not incorporated under the laws of this State, now transacting or proposing to transact insurance business by agent or agents in this State, before commencing such business to file in his office a bond in favor of the people of the State of California, to be signed by the company, as principal, with two sureties, to be approved by the Commissioner, in the penal sum of $20,000, the condition of such bonds to be as follows : ( i ) That the com- pany and its agents will pay all State, county and municipal property and license taxes, in the manner and at the time prescribed by law; (2) That the company named therein will conform to all the provisions of the reve- nue and other laws made to govern them; (3) and that the company will promptly pay all fees, assessments, taxes, penalties, and fines that may be laid upon or against such company." Sec. 624. "Whenever the same company desires to collect premiums of insurance for more than one company, the Commissioner must require a separate bond, * * *, for each company so represented by such company." Every general agent must procure from the Commissioner a certificate of authority. Every company must have a resident general agent. Penalty for acting for unauthorized company, imprisonment not exceeding six months, or fine not exceeding $500, or both. Neither a firm nor a company can be licensed as a solicitor ; each person must have a separate license. ANNUAL STATEMENTS — Companies must file statements of condition and affairs, including California business in the preceding year, on or before March i of each year. Penalty for willful failure to file statements pre- 44 FIRE INSURANCE LAWS, TAXES AND FEES. scribed by a law, a fine of $roo, and $200 for each month or fraction thereof company continues to do business without filing same. ANTI-COINSURANCE— No provision. ANTI-COMPACT— It has not yet been determined whether or not the "Cart- wright bill," which became a law in 1907,. refers to insurance companies. ANTI-DISCRIMINATION— No provision. ATTORNEY — A resident of the State must be appointed to accept service of legal process ; in the absence of such attorney the Insurance Commissioner must be authorized to accept service. CANCELLATION OF POLICY— Five days' written notice to insured and to mortgagee or other person to whom, with written consent of company, the policy is made payable, is required by law. CAPITAL REQUIRED — Stock companies must possess an unimpaired cap- ital of not less than $200,000. Companies transacting both fire and marine insurance must have at least $400,000 capital. Fire or fire-marine company transacting "team and vehicle insurance" must have $50,000 additional capital. A mutual or stock-mutual company of another State or country, having not less than $100,000 capital, must have in lieu of such capital at least $200,000 of available cash assets above all liabilities. COMMISSIONS TO NON-RESIDENTS— No provision. DEPOSIT— None required (except by the application of retaliatory law). Companies of other countries must have an amount equal to the amount of capital stock or cash assets required on deposit with the Insurance Com- missioner of California or a State official of some other State. "Such deposit must be of securities which the law of California permits for the investment of the assets of such California insurance companies." (See "Investments Prescribed.") (See "Agents' Licenses.") DOMESTIC COMPANIES— Must have $200,000 subscribed capital, not less than twenty-five per cent of which must be paid in before commencing business, and the remainder within one year. Must file statement within thirty days after payment of twenty-five per cent, and within thirty days after the payment of the last instalment on the stock EXAMINATIONS-Sec. 597. "The Commissioner, whenever he deems neces- sary, or whenever he is requested by verified petition, signed by 25 persons mterested, either as stockholders, policyholders, or creditors of any com- pany engaged in insurance business in this State, showing that such com- pany is insolvent under the laws of this State, must make an examination of the busmess and affairs relating to the insurance business of such com- pany, and must make such an examination whenever any company is or- ganized to do insurance business in this State, and before issuing a certi- ficate of authority other than renewals to such company, and may make such exammation whenever any company not organized imder the laws of this State applies for a certificate to do insurance business in this State and before issuing a certificate of authority to such company; and for such CALIFORNIA. 45 purposes shall have free access to all the books and papers of such com- pany, and must thoroughly inspect and examine all its affairs, and ascertain its condition and ability to fulfil its engagements, and that it has complied with all the provisions of law applicable to its insurance transactions." Penalty for failure to give true and full information, $500. FEES — Generally each company, on applying for admission, must file the fol- lowing documents and pay the fees specified : i. Certified copy of charter or articles of incorporation, and certificate as to organization, capital and assets from the Insurance Commissioner of its own State, $55 ; 2. Appoint- ment of general agent and stipulation, $5 ; 3. Bond in the sum of $20,000, $5 ; 4. Statement as to financial condition, $20 ; 5. Certificate of authority (expires July i), $io; 6. Certificate of deposit of securities (required only of companies organized outside of the United States), $5; authorization empowering general agent to sign bond and appoint solicitors and agents may also be filed. For filing the annual statement required to be filed, $20 ; for filing any other papers required to be filed, $5 ; for furnishing copies of papers filed in Commissioner's office, 20 cents per folio; for certifying copies, $1 each ; for registering each policy, $1 ; for issuing each annual cer- tificate of authority, $10 annually ; for issuing each annual license authoriz- ing an agent to solicit any insurance business, $1 ; for attaching the seal of office to any paper or document not herein specified, $1 ; for issuing any other certificate, $2 ; fee for brokers' license to deal with unauthorized com- panies, $25 per annum. Sec. 606. "If the salary of the Commissioner and the expenses of his office exceed the fees and charges collected by him, such excess must be annually assessed by the Commissioner upon all persons and corporations engaged in the business of insurance in this State, and they are severally liable therefor, pro rata, according to the amount of premiums received, or receivable, from the risks taken in this State, respec- tively, during the year ending on the thirty-first day of December next preceding the assessment." For the purposes of taxation, reinsurances and , cancellations are deducted from the gross premiums collected. Each company must file with Secretary of State at Sacramento certified copy of articles of incorporation, the fee for which varies according to amount of capital stock, and an appointment of agent upon whom service of process may be made, fee for filing which is $5. The Secretary of State must col- lect the following fees from new domestic companies : For filing articles of incorporation, if capital is $25,000 or less, $15; for capital of $25,000 to $75,000, $25 ; for capital of $75,000 to $200,000, $50 ; for capital of $200,- 000 to $500,000, $75; for capital of $500,000 to $1,000,000, $100; and $50 additional for each $500,000 or fraction thereof of capital over $1,000,000; if no capital stock, fee is $5, except for co-operative associations, for which fee is $15. For recording articles of incorporation, 25 cents per folio. For issuing certificate of incorporation, $3. FIRE DEPARTMENT TAX— No provision. FIRE MARSHAL — No provision. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Need not be 46 FIRE INSURANCE LAWS, TAXES AND FEES. filed unless especially required by Insurance Commissioner (required when applying for admission). IMPAIRMENT — Sec. 602. "Whenever provisions for the liabilities of any company engaged in the business of fire, marine or inland navigation insur- ance in this State, for losses reported, expenses, taxes and reinsurance of all outstanding risks, estimated at fifty per cent of the premiums received and receivable on all fire risks and marine time risks, at the full premiums received and receivable on all other marine risks, would so far impair its capital paid in as to reduce the same below $200,000, or below seventy-five per cent of said capital paid in, such company is insolvent; and in the case of a company engaged in such insurance in this State, on the mutual plan, if the available cash assets of such company shall not exceed its lia- bilities, as hereinbefore enumerated, in the full sum of $200,000, such com- pany is insolvent." License of insolvent company must be revoked, but if the company becomes solvent within 90 days, a new certificate of authority may be issued to it. INVESTMENTS PRESCRIBED— No company is permitted to own more real estate than its home office building, and such as is required for its accom- modation in the convenient transaction of its business, except such as is conveyed to it or purchased to protect the company from loss on loans or debts ; and in the latter cases such property must be sold within five years. Capital and accumulations may be invested in or loaned upon United States bonds ; bonds of any of the States of the United States not in de- fault for interest; bonds of any county or incorporated city or town or duly organized school district of any State or Territory of the United States, not in default for interest ; mortgage loans on real estate not exceed- ing 60 per cent of value. After the sum of $200,000 has been invested as above prescribed, a company may invest the balance of capital and accumu- lations in the purchase of or loans upon the stock of any corporation (except mining companies) organized and carrying on business under the laws of the State of California, which have at the time of investment a market value of not less than their paid-in value, and which are rated as first class securities, or in interest-bearing first mortgage bonds of any corporation of any State or Territory of the United States not in default of interest, provided that a two-thirds vote of all the directors of such cor- poration shall approve such investment. It shall be the duty of the officers of such corporation to report quarterly during the months of January, April, July and October of each year to the Insurance Commissioner a list of such investments so made by them, and the Insurance Commissioner may require sale of any which seem to him injudicious. LICENSED BROKERS— Provision is made for licensing brokers to deal with unauthorized insurance companies. Licenses expire July i, and the fee is $25 per annum. Details must be filed within one week as to all policies so procured ; also a list of authorized companies comprising a majority thereof from whom the insurance so effected was not procurable. Broker must CALIFORNIA. 47 file $scxx) bond to secure compliance with law ; must file sworn statement by March i, of gross and return premiums, and must pay a tax of three per cent on gross less return premiums. LIMIT ON A SINGLE RISK— Ten per cent of capital actually paid in and intact at time of writing risk unless excess is at once reinsured. LLOYDS — No specific provisions. Sec. 634a. "The word company as used in this title includes every association, corporation, firm, or person trans- acting or desiring to transact any kind of insurance business under the laws of the State of California." MISCELLANEOUS — Any person interested, as owner, assignee, pledgee or payee, of any policy of insurance may apply to the Insurance Com- missioner for any information desired about such policy, making affidavit that he is entitled to same, and the Commissioner may call upon the agent of the company for such information, which must be furnished within 90 days under penalty of revocation of license; and the Com- missioner must promptly, on its receipt, supply such information to the applicant. Company causing the removal of a case from a State to a Federal court is liable to have its license revoked. Withdrawal from the State must be advertised at company's expense. MUTUAL COMPANIES — Provision is made in the statutes for the organi- zation of county and other mutual fire insurance companies. (See "Capital.") PRELIMINARY DOCUMENTS— Company must file with the Commis- sioner a certified copy of its articles of incorporation, or of the law, charter or deed of settlement under which organized, and a certificate signed by the proper State officer, showing that it possesses the capital stock or assets required by the State. Also a statement of its affairs December 31 preced- ing, appointment of general agent, and a bond (by the general agent) for $20,000. (See "Fees.") PUBLICATION — Statements must be published for one week in a daily news- paper in the city where the principal office of the company in the State is located. Publication may be made any time in calendar year. RETALIATORY LAW— In Laws of the State of California, Sec. 622. "When by the laws of any other State or country, any taxes, fines, penalties, licenses, fees, deposits of money or of securities, or other obliga- tions or prohibitions, are imposed on insurance companies of this State doing business in such other State or country, or upon their agents therein in excess of such taxes, fines, penalties, licenses, fees, deposits of securities, or other obligations or prohibitions, imposed upon insurance companies of such other State or country, so long as such laws continue in force, the same obligations and prohibitions of whatsoever kind must be imposed upon insurance companies of such other State or country doing business in this State. And whenever under this section any deposit of security shall be made in this State, such deposit shall be made in bonds of the United 48 FIRE INSURANCE LAWS, TAXES AND FEES. States Government, or in those of the State of California, or in interest* bearing bonds of any of the counties or incorporated cities and towns o! the State of California, not in default for interest on such bonds, which said securities must be estimated at not exceeding their par value nor their market value." REINSURANCE — No law restricting reinsurance in unauthorized companies, but credit in reduction of taxes only allowed for reinsurance in authorized companies. The Insurance Commissioner has said : "It is my opinion that a company cannot do reinsurance business in the State of California with- out certificate of authority required by Sec. 596 of the Political Code, and in that regard there is no distinction between reinsurance and any other insurance business." REINSURANCE RESERVE — Fifty per cent of premiums on fire risks and marine time risks; the entire premiums on all other marine risks. RESIDENT AGENTS— Sec. 616. "The Insurance Commissioner must re- quire, as a condition precedent to the transaction of insurance business in this State by any foreign insurance company, that such company must file in his office a writing designating the name of an agent, and his place of business in this State, on whom any notice provided by law or by any in- surance policy, proof of loss, summons and other process may be served in all actions or other legal proceeding against such company. All notices, proof of loss, summons, or other process so served give jurisdiction over the person of such company. The agent so appointed and designated shall be deemed in law a general agent, and must be the principal agent of such company in this State, * * *" SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— A standard policy form is required to be used. TAXES — A tax of one and one-half per cent is imposed on gross premiums collected in California by companies of other States and countries, less return premiums, reinsurance in authorized companies, subject to action of retaliatory law. Taxes are payable to the State Treasurer. When, by the application of the retaliatory law, the amount of taxes is greater than that which would be collected by the application of the general law— (to wit, one and one-half per cent on premiums, less reinsurajice, return premiums) —the retaliatory provision governs. A license tax, graded according to the amount of authorized capital stock, is payable annually to the Secretary of State, on July i, and is delinquent on September i. Licensed brokers pay tax of three per cent on premiums of unauthorized companies TAX STATEMENTS -Customarily called for with annual ;tatement March i ; must be filed on demand. VALUED POLICY-Sec. 2757. "Whenever the insured desires to have a valuation named m his policy, insuring any building or structure against fire, he may require such building or structure to be examined by the in- surer, and the value of the insured's interest therein shall be thereupon fixed by the parties. The cost of such examination shall be paid for by the in- CALIFORNIA. 49 sured. A clause shall be inserted in such policy, stating substantially that the value of the insured's interest in such building or structure has been thus fixed. In the absence of any change increasing the risk without the consent of the insurer or of fraud on the part of the insured, then in case of a total loss under such policy, the whole amount so insured upon the in- sured's interest in such building or structure, as stated in the policy upon which the insurers have received a premium, shall be paid, and in case of a partial loss, the full amount of the partial loss shall be so paid, and in case there are two or more policies covering the insured's interest therein, each policy shall contribute pro rata to the payment of such whole or partial loss. But in no case shall the insurer be required to pay more than the amount thus stated in such policy. This section shall not prevent the parties from stipulating in such policies concerning the repairing, rebuilding or replacing buildings or structures wholly or partially damaged or destroyed." COUNTY TAXES AND FEES. COLUSA— For each company, $io, payable January i. CONTRA COSTA— For each company, $15, payable annually. DEL NORTE — For each company, $10, and $1 license fee, payable annually. FRESNO— For each company, $3 per quarter. SAN FRANCISCO— See "City Taxes." SAN LUIS OBISPO — For each agent of each company $15, payable annually, July I. SANTA CLARA— For each company, $25, payable May i, annually. SHASTA — For each company, $10, payable annually. MUNICIPAL TAXES AND FEES. (The right to collect municipal license fees is being tested in court.) ANTIOCH— For each agency for each company, $6 per annum, payable January i. AUBURN— For each agent, $20. BAKERSFIELD— For each agent, $S per quarter, January i, April i, July i and October i. , t a -i BENICIA— For each agent, $10 per annum, payable quarterly, January, April, July and October. BLACK DIAMOND— For each company, $6 per annum. COLUSA— For each company, $10, payable ann^jally, December i. CORONA— For each company, $1.50 per quarter, from January i. EUREKA-For each company, $6 per year on $500 or less of gross annual receipts; $10 on $50O-$75o; $12 on $75o-$iooo; $15 on $io j / > SALINAS— For each agent, $2.50 per quarter. ^^f, BERNARDINO-For each company, $6 per quarter, payable quarterly. SAN BUENA VENTURA-For each company, $4 per annum, payable quar- terly, January i, April i, July i and October i. CALIFORNIA. 51 SAN FRANCISCO (city and county) — Each agent in San Francisco is re- quired to pay as follows for each company he represents: Those doing $50,000 or more of premiums per quarter, $100 per quarter ; for premiums between $25,000 and $50,000, $75 quarterly ; for premiums between $10,- 000 and $25,000, $50 quarterly; for premiums between $5000 and $10,000, $25 quarterly ; for less than $5000 of premiums, $10. Every person en- gaged in the business of soliciting insurance, except the employees of a single company or the general agent of one or more companies, whose gross receipts amount to $500 or more per month, shall pay a license fee of $20 per quarte^; those whose receipts are less tlian $500 per month, pay $5 per quarter. Fire patrol, about one and one-third per cent on net premiums, payable in January and July. Companies are also liable for a city and county tax on personal property; statement of the latter, including cash, office furniture, etc., must be made to assessor on the first Monday in March. Fire patrol in operation (expense authorized for year ending June 30, 191 1, $51,000; also $4000 for fire marshal's office; assessment can- not exceed 2 per cent of premiums.) SAN JACINTO— For each company, $1.25 per quarter. SAN JOSE— For each company, $7.50, payable quarterly, January, April, July, October. SAN LEANDRO— For each agent, $5 per quarter. SAN LUIS OBISPO— For each company, $1.50 per quarter. SAN MIGUEL— For each company, $15. SAN PEDRO — (Now a part of Los Angeles.) SANTA MARIA— For each agent, $2.50 per quarter. SANTA MONICA— For each agent, $12 per annum, payable January i. SELMA— For each company, 75 cents per quarter. SONORA— For each company, $12. VACAVILLE— For each agent, $10 per annum, payable quarterly, January i, April I, July i, October i. VENTURA— For each company, $4 per annum, payable $1 per quarter, Janu- ary I, April I, July i, October i. WATSONVILLE— For each company, $6 per annum. WHITTIER— For each agent, $5 per annum. WINTERS— For each agency, $20, payable $5 per quarter, minimum. WOODLAND— For each company or agent, $2.50 quarterly. CANADA. DOMINION REQUIREMENTS.* AGENTS DEFINED— See "Agents' Licenses." AGENTS' LICENSES— "Every person who in Canada for or on behalf of any individual underwriter or underwriters or any insurance company not possessed of a license solicits or accepts any risk or grants any annu- ity or advertises for or carries on any business of insurance, or prosecutes or maintains any suit, action or proceeding, or files any claim in insolvency relating to such insurance or acting as an insurance agent, receives directly or indirectly any remuneration from any British or foreign unlicensed insurance company or underwriters, or except as provided for in section 139 of the Insurance Act, 1910, issues or delivers any receipt or policy of in- surance, or collects or receives any premium, or inspects any risk or adjusts any claim * * *." Penalty for acting without a license, fine not ex- ceeding $50 and costs, and not less than $20 and costs, or in default, im- prisonment for a term not exceeding three months and not less than one month. No license is issued to an agency corporation representing fire in- surance companies, nor to officers or stockholders of such corporations. ANNUAL STATEMENTS — Annual statements of Canadian companies and statements of Canadian business of British and foreign companies must be filed with the Minister of Finance on or before March i. Penalty for neglect to make annual statement, $10 per day. Non-payment of fine in- volves suspension or revocation of license. ANTI-COINSURANCE— No provision. (See Standard Policy.) ANTI-COMPACT— No provision. ANTI-DISCRIMINATION— Rebating is strictly prohibited. ATTORNEY — Must be appointed at the chief agency of the company to accept service of legal process. CANCELLATION OF POLICY— No provision for notice to insured. CAPITAL REQUIRED — No provision as to domestic companies. In the case of foreign companies with large charter powers, the requirements for a Hcense are as follows : Sec. 9. "Subject to the right of renewal of licenses granted previously to the eleventh day of August, in the year of Our Lord one thousand eight hundred and ninety-nine, a license shall not be granted to a company which is by its charter authorized or empowered to carry on classes or branches of insurance greater in number or variety than those for which a license could be granted under the provisions of the last pre- ceding section: Provided that any company incorporated elsewhere than in Canada, regardless of its greater corporate powers, having a paid- up wholly unimpaired capital of at least three hundred thousand dollars in the case of a company authorized among other classes of ♦ The Insurance Act, 1910,9-10 Edw. VII, Cap. 32, came into effect May 4, 1910. CANADA. 53 business to transact the business of fire insurance, and in the case of any other company of at least one hundred thousand dollars; and,— (a) which holds over and above all liabilities estimated according to the exist- ing Dominion Government standard a rest or surplus fund equal to at least twenty per cent of such paid-up capital, and the market value of whose stock is at a premium of at least twenty per cent, and, (b) which has carried on successfully for a period of at least five years the business for which the license is sought, or which, having a paid-up wholly unimpaired capital of at least five hundred thousand dollars, has carried on success- fully the business for which such license is sought for such shorter period as the minister deems sufficient; and, (c) if the business for which a license is sought consists only of one class of insurance or of such classes as may for the purpose of a license be combined under the provisions of the last preceding section; or, (d) which while not in all respects complying with the requirements of the foregoing paragraphs of this proviso does not materially fall short thereof in any essential particular; or, which is a sub- sidiary company of a company duly licensed under this act and whose insurance contracts are guaranteed by the company whose subsidiary it is, the latter being also liable for all the liabilities of every kind of such sub- sidiary company shall be deemed eligible for and entitled to such license upon depositing, keeping and maintaining in Canada to the amount in the next following section specified, assets of the character required by this Act in determining whether the assets of a company incorporated or formed elsewhere than in Canada exceed its liabilities." Sec. lo. "Such assets so required to be deposited, kept and maintained by the company for which the license is asked shall be, to the extent the Treasury Board on the report of the Superintendent shall fix or determine, in excess of the amount which would be required if such company's charter powers were limited to the purposes for which such license is so asked. 2. Such excess shall, ui the case of a company applying for a license to transact fire insurance or life insurance, be not less than fifty thousand dollars, and, in the, case of any other company, not less than ten thousand dollars, and in no case more than two hundred thousand dollars. DEPOSIT — Sec. 14. "Every company carrying on the business of Hfe insurance and every company carrying on the business of fire insurance, shall, before the issue of such license, deposit with the Minister, in such securities as are hereinafter specified in that behalf, the sum of fifty thousand dollars." Sec. 15. "All such deposits and all other deposits required under the provisions of this act may be made — (a) by any com- pany, in securities of or guaranteed by the Dominion of Canada, or in se- curities of or guaranteed by any province of Canada, or in securities of or guaranteed by the United Kingdom or any British colony; (b) if such company is incorporated in any foreign country, in securities of or guar- anteed by the government of such country. 2. The value of such securities shall be estitaated at their market value, not exceeding par at the time when 64 FIRE INSURANCE LAWS, TAXES AND FEES. they are deposited." Sec. i6. "If any other than the aforesaid securities are offered as a deposit they may be accepted at such valuation and on such conditions as the Treasury Board directs." DOMESTIC COMPANIES— No general act under which companies may be incorporated by the Dominion Government. A form for a model bill for the incorporation of companies is provided in Form F of the schedule to the act. EXAMINATIONS — The Superintendent sha.ll visit personally, or cause a duly qualified member of his staff to visit the head office of each company in Canada at least once in every year and examine carefully the statements of the condition and affairs of each company, and if, after such examination, from the annual or other statements or for any other cause, deems it necessary and expedient to make a further examination into the affairs of such company, and so reports to the Minister, the Superin- tendent may be instructed by the Minister to thoroughly inspect such com- pany, and if the latter be found to be unsound, or if it refuses to be ex- amined, its license may be suspended or canceled. FEES — The Superintendent is authorized to assess the companies upon their gross premium receipts for the sum required for the expense of his office. See "Provincial Fees and Requirements." FIRE DEPARTMENT TAX— No provision. FIRE MARSHAL— No provision. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Must be filed within thirty days after it is required by law to be made to the govern- ment of the country in which the head office whose statement it is is situate, or within thirty days after the submission of the same at the annual meet- ing of the shareholders or members of the company, whichever date first occurs. Such statement, however, need not be deposited earlier than June 1, nor shall it be deposited later than June 30, covering preceding year ending December 31, or last fiscal year. IMPAIRMENT— No provision. INVESTMENTS PRESCRIBED— Domestic companies and companies within the legislative power of the Parliament of Canada may invest their funds or any portion thereof in the purchase of (a) The debentures, bonds, stocks or other securities of or guaranteed by the Government of the Dominion of Canada or of or guaranteed by the Government of any province of Canada; or of or guaranteed by the Government of the United Kingdom, or of any colony or dependency thereof ; or of or guaranteed by the Gov- ernment of any foreign country, or state forming a portion of such foreign country ; or of any municipal or school corporation in Canada, or else- where where the company is carrying on business ; or guaranteed by any municipal corporation in Canada; (b) i. The bonds of any company which bonds are secured by a mortgage or hypothec to trustees or a trust cor- poration or otherwise, upon real estate or other assets, of such company ; or, 2. The debentures or other evidences of indebtedness of any company' CANADA. 6S which has been doing business for a term of not less than three years prior to the date of such investment, provided default shall not have been made by such company in the interest payments upon its debentures or other evidences of indebtedness within the said period of three years prior to such investment; or, (3) The preferred stocks of any company which ha5 paid regular dividends upon such stocks or upon its common stocks for not less than five years preceding the purchase of such preferred stocks, or the stocks of any company which are guaranteed by a company which ha-s paid regular dividends upon its preferred or common stocks for not less than five years preceding the purchase of such guaranteed stocks: Provided that the amount of stocks so guaranteed is not in excess of fifty per cent of the amount of the preferred or common stocks, as the case may be, of the guaranteeing company; or, 4. The common stocks of any such company upon which regular dividends of at least four per cent per annum have been paid for the seven years next preceding the purchase of such stocks : Provided that not more than thirty per cent of the common stocks and not more than thirty per cent of the total issue of the stocks of any company shall be purchased by any such life insurance company, and that no company shall be permitted to invest in its own shares or in the shares of another life insurance company; or, (c) Ground rents, mortgages or hypothecs on real estate in Canada, or elsewhere where the company is carrying on its business, provided that the amount paid for any such mortgage or hypothec shall in no case exceed sixty per cent of the value of the real estate covered thereby; or (d) Life or endowment poHcies or contracts issued by the company or by any other life insurance company licensed to transact business in Canada. Companies may lend their funds or any portion thereof on any of the stocks, bonds, debentures or securities above mentioned or on real estate or leaseholds for a term of years or other estate or interest in real property in any province of Canada. Com- panies may take any additional securities of any nature to further secure the repayment of any liability thereto, or to further secure the sufficiency of any of the securities in or upon which such company is hereby author- ized to invest or lend any of its funds. With respect to companies incor- porated or legally formed elsewhere than within Canada and licensed to carry on such business in Canada, all assets and investments which may be vested in trust for the company in two or more persons resident in Canada, or in a Canadian trust company, shall be of the classes of invest- ment permitted to Canadian companies. LICENSES— Sec. 4. In Canada, except as otherwise provided, no company or underwriters or other person shall solicit or accept any risk, or issue or deliver any receipt or policy of insurance, or grant any annuity on a life or lives, or collect or receive any premium, or inspect any risk, or adjust any loss, or carry on any business of insurance, or prosecute or maintain any suit, action or proceeding, or file any claim in insolvency relating to such business, unless it be done by or on behalf of a comp'any or underwriters holding a license from the Minister. Penalty for acting as 56 FIRE INSURANCE LAWS, TAXES AND FEES. agent for an unlicensed company, a fine of not exceeding $50 and costs, not less than $20 and costs for the first ofiEense, and imprisonment for the second. LICENSED BROKERS— (See "Unlicensed Insurance.") LIMIT ON SINGLE RISK— No provision. LLOYDS — May be licensed on same terms and conditions as insurance companies. MUTUAL COMPANIES— No provision. PRELIMINARY DOCUMENTS— To be filed with the Minister of Finance and Receiver General: Copy of charter, act of incorporation, or articles of association, certified by officer in charge of the original ; power of attor- ney from the company to its chief agent in Canada ; statement of condition at end of preceding year. Duplicate copies to be filed in the office of the Superior Courts of the Province, where the head office is located, or if in Quebec, with the Prothonotary of the district in which the chief agency or head office is situated. Penalty for doing business without a license, fine and imprisonment. Annual certificates of compliance with laws of home State not required. The company's charter, acts of incorporation or articles of association, and power of attorney to chief agent, need be filed but once, except in event of a change in representation. PUBLICATION — Sec. 17. "Every company, on first obtaining such license, shall forthwith give due notice thereof in The Canada Gazette, and in at least one newspaper in the county, city or place where the head office or chief agency is established, and shall continue the publication thereof for the space of four weeks." RECIPROCAL LAW— None. REINSURANCE — No law explicitly forbidding reinsurance in unauthorized companies, but reinsurances in unlicensed companies are, as a matter of practice, disallowed. REINSURANCE RESERVE— For Canadian companies, eighty per cent of the unearned portion of premiums computed pro rata as at date of state- ment. For foreign companies, the full unearned premiums computed pro rata. No fire policy can be issued for more than three years. RESIDENT AGENTS — Each company must have a resident chief agent. SEMI-ANNUAL STATEMENTS— Not required. STANDARD POLICY— No provision. TAXES — No provision. (See "Provincial Requirements.") TAX STATEMENTS— No provision. (See "Provincial Requirements ") UNLICENSED INSURANCE-Section 139 permits any person to insure his property in British or foreign unlicensed fire insurance companies, pro- vided such insurance is effected outside of Canada and without solicitation on the part of the company. A statement of all such insurance eflfected must be filed yearly with the superintendent by the insured. Advertise- ment of business and maintenance of an agency in Canada by such com- panies are forbidden. VALUED POLICY— No requirement. CANADA. 57 PROVINCIAL REQUIREMENTS. ALBERTA. ANNUAL STATEMENT— Must be filed with the Registrar on or before March i, unless a statement is filed, as required by the provisions of sec- tions 19 and 20 of the Insurance Act, being chapter 124 of the Revised Statutes of Canada. Penalty for non-compliance, $20 per day. ATTORNEY — A resident of Alberta must be empowered to accept service in suits and proceedings. FEES. — Payable to Registrar on registration. For companies with a capital- ization not exceeding $100,000, $75 ; exceeding $100,000, not over $200,000, $125; exceeding $200,000, not over $500,000, $300; exceeding $500,000, not over $1,000,000, $450; exceeding $1,000,000, not over $3,000,000, $500; for each additional $1,000,000 over $3,000,000, $100 additional. Also $5 for advertising. Penalty for conducting business without being registered, $50 per day. MUNICIPAL TAXES AND FEES— None permitted. PRELIMINARY DOCUMENTS— Before registration a company must file in the Registrar's office a verified copy of its charter and regulations ; an affidavit or statutory declaration that it is still in existence and legally authorized to transact business under its charter ; a copy of its last annual balance sheet, and a power of attorney authorizing a resident of the province to accept service, etc., for it. PUBLICATION. — The certificate of registration must be published by the Registrar in the official gazette, at the expense of the company, fee $5. REGISTRATION. — Every company must be registered in accordance with law. Any unregistered company, or representative thereof, carrying on business in Alberta is liable to a fine of $50 per day. REINSURANCE — No prohibition of reinsurance in unregistered companies, but credit in reporting premiums for taxation is only allowed for reinsur- ances in registered companies. STANDARD POLICY — The fire insurance policy ordinance of 1903 pre- scribes a schedule of statutory conditions to be embraced in fire insurance policies and not to be varied unless prominent notice of variations is given. TAXES — ^A tax of one per cent is imposed on gross premiums received for insurance on property located in Alberta, less return premiums and rein- surance premiums paid to registered companies. If the premium receipts of an outside company are less than $20,000, and such company has loaned out or invested in Alberta $100,000 or more, the tax shall be three-quarters of one per cent on gross premiums and one-half of one per cent on the income from investments received by such company in respect of the busi- ness transacted in the province during the preceding year; but money lent upon municipal or school bonds or debentures, or those of any other local or public authority in Alberta, shall not for the purposes of tax com- putation be regarded as money invested in Alberta. Taxes are due and payable to the Provincial Treasurer on or before June 30. 58 FIRE INSURANCE LAWS, TAXES AND FEES. TAX STATEMENTS — Must be filed on or before June 30 with the Provin- cial Treasurer. Penalty for understating amount to be taxed, addition of- 50 per cent to amount of tax, and license may be revoked at discretion of Treasurer. BRITISH COLUMBIA, ANNUAL STATEMENTS— Balance sheets and profit and loss accounts, cer- tified as correct, must be filed with the Minister of Finance, Victoria, on or before January 31. Annual statements must be filed with the Registrar of Joint Stock Companies before March, under a penalty of $250 for each day's delay. ATTORNEY — A resident attorney must be appointed. DOMESTIC COMPANIES — Five or more persons may incorporate under the Companies Act. FEES — ^A license fee of $250 is charged once, but the license does not require renewal. MUTUAL COMPANIES — A mutual company may be organized by thirty persons, representing $60,000 or more of risks. PRELIMINARY DOCUMENTS— Company must file with Registrar of Joint Stock Companies a copy of charter and regulations, affidavit that company is legally authorized to transact business, and a power of attorney to a resident at its head office in the Province. STANDARD POLICY — Uniform policy conditions are prescribed. TAXES — There is a tax of one per cent on gross premiums and interest on money lent in British Columbia, less reinsurances. TAX STATEMENTS— Must be filed on or before September i, yearly, with the Assessor of Victoria Assessment District, Victoria. MANITOBA. AGENTS DEFINED— No definition. AGENTS' LICENSES— None required. ANTI-COINSURANCE— No provision. ANTI-COMPACT— No provision. ANNUAL STATEMENTS— Must be filed with Provincial Treasurer within three months after January i. ATTORNEY— A resident attorney must be appointed. CANCELLATION OF POLICY-Provision is made for five-day cancella- tion notice when served personally, and ten days' notice if sent by mail CAPITAL REQUIRED-Authorized, $500,000; subscribed, $200,000; paid up $25,000. DEPOSIT— If risks in force do not exceed $1,500,000, domestic companies, $5000; Canadian or foreign companies, $10,000; cash or securities. If risks exceed $1,500,000, Provincial companies deposit $200 for each ad- ditional $100,000 or fraction, and Canadian and foreign companies deposit $5000 for each additional $1,500,000 or fraction. Mutual companies (ex- cept those incorporated before March 2, 1894) deposit $5000. (Not re- CANADA. 59 quired of Dominion licenses.) Securities of the Dominion of Canada or any Province thereof, shall be accepted at market value. DOMESTIC COMPANIES— Every company which takes out and holds a license from the Provincial Treasurer (which is required of all companies except those holding Dominion licenses) is deemed to be a company incor- porated by an Act of the Legislature of the Province of Manitoba. EXAMINATIONS — The Lieutenant-Governor-in-Council may, whenever he deems it expedient, appoint persons to examine companies, and may ap- point an Inspector of Insurance to examine into and report to the Pro- vincial Treasurer upon all matters connected with insurance. The In- spector must personally, or by deputy, visit the head or chief oiBce in Manitoba of all licensed companies at least once each year, and examine into and report upon its affairs. A sum not exceeding $3000 shall be annually contributed by the companies required to be inspected, towards defraying the expenses of the office of inspector ; to be assessed pro rata and based on gjoss annual premium income. FEES — Under the Manitoba Insurance Act: Recording and filing original papers, etc., $5 ; for initial license to do business, or renewal thereof. Pro- vincial company, $100; Provincial mutual fire company, $50; inland marine company, $25 ; any other company, $200 (proportionate abatement if taken out later than April). Companies transacting insurance business only, secure licenses, etc., from the Provincial Treasurer. Companies operat- ing in Manitoba shall contribute not exceeding $3000 per annum, in pro- portion to their respective premium incomes, toward defraying the ex- penses of the office of inspector of insurance. Licensed broker, $25. FIRE DEPARTMENT TAX— No provision. FIRE MARSHAL — Provision is made for investigation of fires. FOREIGN COMPANIES' HOME OFFICE STATEMENTS — Not specified. IMPAIRMENT— Not permitted. INVESTMENTS PRESCRIBED— No provision. LICENSED BROKERS — Brokers may be licensed to procure insurance in unauthorized companies for parties unable to obtain sufficient insurance in licensed companies. LICENSES — All companies operating in Manitoba must procure provincial licenses or registration, and all policies, receipts, etc., must state that the company is registered or licensed under the Manitoba Insurance Act. In- suring in an unlicensed company is a violation of law, except that when sufficient insurance cannot be obtained in licensed companies the excess may be placed in unlicensed companies through a special broker accom- panied by an affidavit that sufficient insurance could not be procured in licensed or registered companies ; if procured in unlicensed companies except through a special broker, a statement of the facts, together with fifty per cent upon such premiums, shall be respectively filed with and paid to the Provincial Treasurer. 60 FIRE INSURANCE LAWS, TAXES AND FEES. LIMIT ON A SINGLE RISK— None prescribed. LLOYDS — No provision. MISCELLANEOUS— Delivery of a policy or receipt is deemed conclusive evidence of payment of premium in an action to recover for a fire loss. All policies or insuring documents must bear the inscription across their faces, "Licensed under the Manitoba Insurance Act," or "Registered under the Manitoba Insurance Act." Penalty for false stamping, $200 for each offense. MUTUAL COMPANIES — A mutual company may be formed by thirty per- sons representing $50,000 or more of insurance. PRELIMINARY DOCUMENTS— Company must file copy of act of incor- poration, power of attorney, latest financial statement, receipts, etc. PUBLICATION — Each company obtaining a license must advertise the fact by four insertions in The Manitoba Gazette, and at least one newspaper in the municipality where the principal agent in the Province is located. The company is also required to thus give notice when it ceases business in the Province. RECIPROCAL LAW— None. REINSURANCE — No prohibition of reinsurance in unauthorized companies. RESIDENT AGENTS— No requirement. REINSURANCE RESERVE— To be computed on 50 per cent basis. SEMI-ANNUAL STATEMENTS— Not required. STANDARD POLICY — Statutory conditions are required to be printed upon and to form a part of each fire insurance policy; but their effect may be altered by clauses printed in red ink, if such alterations are just and reasonable. Material misrepresentations only void policy. TAXES — One and one-third percent on gross premiums (including business placed through licensed brokers) ; payable to Provincial Treasurer. Fifty percent upon premiums paid to unlicensed companies, other than those upon risks placed by licensed brokers, or without permission of the Pro- vincial Treasurer or Lieutenant-General-in-Council, shall be paid to Pro- vincial Treasurer. TAX STATEMENTS— Included in annual statements. VALUED POLICY— No provision. NEW BRUNSWICK. AGENTS' LICENSES — Special or traveling agents or brokers soliciting in- surance and not residing in the Province, nor having resided in the Prov- ince during the preceding twelve months, are required to pay an annual tax or license fee of $100 to the Receiver-General. Penalty for violation, $100 and $10 additional for every day engaged in such business. ANNUAL STATEMENTS— To be made on or before May i, and must em- brace a list of agents. Penalty for non-compliance, $10 per day. ATTORNEY— Service may be made upon any agent of a company who has acted as such agent within twelve months prior to the laying of the infor- mation. CANADA. 61 RESIDENT AGENTS — All policies must be issued to resident agents under penalty of $2CX) to $500 for each policy not so issued. The name of a com- pany's general agent who alone is authorized to sign or countersign policies, or if the company has no general agent in the Province the names of all agents having authority to sign or countersign policies for the company must be filed with the Receiver-General. Any person adjusting or apprais- ing a loss under a policy not signed or countersigned by a resident agent is liable to a fine of $100 to $200. TAXES — There is a tax of one per cent on gross premiums received upon business within the Province less amounts paid for reinsurances within the Province, or upon the cancellation of any policies in the financial year preceding May i, payable June i, to Receiver-General of Province. An additional sum of $100 must be paid by each fire insurance company whose principal office and organization is not within the Province, but which holds a Dominion license. A company not located in the Province and not hold- ing a Dominion license pays two per cent on net premiums and $200. TAX STATEMENTS— Must be filed May i, under penalty of $10 per day. NOVA SCOTIA. ANNUAL STATEMENTS— Statement must be filed on entering, and an- nually in January, showing capital, officers, etc., under penalty of $10 per day. ATTORNEY — A resident attorney must be appointed, and his name and ad- dress filed with Provincial Secretary. FEES — Annual registration fees, payable in January: For Nova Scotia or Dominion of Canada companies having nominal capital not exceeding $10,- cxx), $5; not exceeding $100,000, $10; not exceeding $500,000, $20; ex- ceeding $500,000, $25 ; mutual companies, $50. For other companies, double amounts named, except mutual companies, for which same fee is charged. STANDARD POLICY — Statutory conditions are required to be printed upon and to form a part of each fire insurance policy; but their effect may be altered by clauses printed in different colored ink, if such alterations are just and reasonable. Material misrepresentations only void policy. ONTARIO. ANNUAL STATEMENTS— To be delivered on or before February i, an- nually, with a statement fee of $5 in the case of stock or cash-mutual companies. ATTORNEY — A resident attorney must be appointed. DEPOSIT — An outside stock company having $2,000,000 or less of insurance in force must deposit $50,000. DOMESTIC COMPANIES — Five or more persons may secure a charter from Lieutenant-Governor on the recommendation of the inspector, after advertising notice of its intention and complying with the other pro- visions of the law. 62 FIRE INSURANCE LAWS, TAXES AND FEES. EXAMINATIONS — Domestic companies must be examined yearly. Other companies may be examined at the discretion of the inspector, and the ex- pense of such examination, not to exceed $5 per day and travehng expenses, must be borne by the companies examined. FEES — All companies must be registered by Inspector of Insurance of Province, under penalty of fine for first offense and imprisonment for sub- sequent offenses. The fee for license and registry of Provincial license is, in joint stock companies, for first year, $100, and $50 for each subse- quent year. Licensees of the Dominion of Canada are required to take out registry annually on or before April 30; fee, $150. FIRE MARSHAL — Provision is made for investigation of fires. MUTUAL COMPANIES — Mutual and cash-mutual companies may be formed with seventy-five members subscribing for $150,000 or more of insurance. Cash-mutuals must have an auxiliary joint stock capital of at least $100,000, with at least $10,000 paid thereon and deposited with the Provincial Grov- ernment. Sec. 140. "Any cash mutual fire insurance company registered under this Act may effect any insurance upon the cash-premium principle, for a period not exceeding three years, on farm and other non-hazardous property, and for one year or less on any other class of property, but the amount of premiums received on cash insurance in any one calendar year shall not exceed four times the amount which the company has then on deposit with the Government; if any deficiency of deposit at any time arises either under section 41 or under this section, and the company fails to make good the deficiency at once, the Minister may suspend or terminate the Hcense, and all the property and assets of the company, in- cluding premium notes and undertakings, shall be liable for all losses which may arise under insurance for cash premiums." RECIPROCAL LAW — There is a reciprocal provision relating to taxes and license fees. STANDARD POLICY— "Statutory Conditions" are required to be printed upon and to form a part of each fire insurance policy ; but the effect of these may be altered by clauses printed in different colored ink, so far as such altering clauses are held by the court to be just and reasonable. Material misrepresentations only void policy. TAXES— There is a tax of one per cent on gross premiums, payable by all in- surance companies except purely mutual domestic fire insurance com- panies. TAX STATEMENTS— Must be filed on or before April i. PRINCE EDWARD ISLAND. ANNUAL STATEMENTS— None required. TAXES--The Provincial Government imposes an annual tax of $150 on each fire insurance company doing business within the Province, which tax is payable semi-annually, in June and December, to the Provincial Treasurer. CANADA. 63 QUEBEC. ANNUAL STATEMENTS— Must be filed with Provincial Treasurer before March i. ATTORNEY— A resident of the place where the head office of the company in the Province is located must be appointed attorney. CAPITAL — ^A domestic company must have a capital stock of at least $500,- 000, of which at least $300,000 must be subscribed and $30,000 paid in. DEPOSIT — ^An outside stock company having $2,000,000 or less of insurance in force must deposit $50,000, and $5000 additional for every additional $1,000,000 or fraction thereof of risks in force. EXAMINATIONS— The Provincial Treasurer and the Inspector are au- thorized to make examinations. FEES — Company domiciled outside of Province, and not having a Dominion license, must obtain a Provincial license from the Provincial Treasurer. Fees payable by companies licensed by the Province : For recording and filing documents required to be filed by new domestic stock and mutual companies, $10 ; for filing power of attorney, $5 ; application for change of name or of head office, $10; initial license, stock company, $100; annual renewal, $50; initial license, cash mutual company, $50; annual renewal, $25; supplementary license, $20, renewal $10; filing annual statement, $5; revival of license after suspension, $15; license for mutual going on cash basis, $10; original license, mutual company, $20. Fees payable by companies licensed by Dominion of Canada: For appli- cation for initial registry, $5; filing power of attorney (foreign company), $5; change of power of attorney, $5; certificate of registry, $150; revival of registry after suspension, $25. Expenses of Inspector, not exceeding $4000, to be contributed pro rata, according to amount of insurance in force by Provincial companies, in addition to fees for license, etc. Fees for incorporation of insurance companies : $180 for capital of $25,000 to $100,000; $225 for $100,000 to $200,000; $275 for $200,000 to $300,000; $325 for $300,000 to $500,000; $375 for $500,000 to $700,000; $425 for $700,000 to $900,000; $450 for $900,000 to $1,000,000. INVESTMENTS PRESCRIBED — Provision is made for the investment of funds of domestic companies. LICENSES— Companies must be registered with the Provincial Treasurer. LIMIT ON A SINGLE RISK— Ten per cent (net) of capital and surplus. MUTUAL COMPANIES— A mutual company may be formed by 200 per- sons, representing $200,000 or more of risks. REINSURANCE — Credit is allowed for reinsurances in authorized com- panies. Premiums paid to unlicensed companies are taxed at same rate as if paid to licensed companies. STANDARD POLICY— "Statutory Conditions" are required to be printed upon and to form a part of each fire insurance policy ; but the effect of these may be altered by clauses printed in different colored ink, so far as 64 FIRE INSURANCE LAWS, TAXES AND FEES. such altering clauses are held by the court to be just and reasonable. Ma- terial misrepresentations only void policy. TAXES — ^A tax of one per cent is levied on gross premiums; but such tax shall not be less than $250 for each company. Credit is allowed for rein- surance in licensed companies. Premiums paid to unlicensed companies are taxed at same rate as if paid to licensed companies. Taxes are pay- able July I. Marine company, agent or broker is taxed $250. SASKATCHEWAN. ATTORNEY — Outside companies must register and appoint a local attorney, as required in Foreign Companies Ordinance. FIRE MARSHAL — The Attorney-General may authorize a justice of the peace to investigate any conflagration which appears to have been caused by culpable or negligent conduct or design. MUTUAL COMPANIES— Provision is made for the organization of mutual companies. STANDARD POLICY — Uniform policy conditions are prescribed. TAXES — A tax of two-thirds of one. per cent is payable to the Provincial Treasurer on or before July i on gross premiums received in the preceding year ending December 31 on policies insuring property located in Sas- katchewan. Mutual companies pay on gross cash premiums received upon insurance on the cash plan. Credit is allowed for reinsurances, biit if business is reinsured in a company not conducting business in Saskatche- wan the original company is responsible for the tax. If the premium re- ceipts in Saskatchewan of a company not domiciled in that Province are less than $20,000 and the company lends money on security and has in- vested in the Province $100,000 or more, such company shall pay a tax of three-fourths of one per cent on gross premiums and one-half of one per cent on gross income from investments in the Province. TAX STATEMENTS— Must be filed on or before May i with Provincial Treasurer. MUNICIPAL TAXES AND FEES. (Municipal licenses not required in Ontario. By a statute of the Provincial Legislature, 75 per cent of the assessed value of premises occupied by a com- pany or agency is taxed at the current property tax rate for the benefit of the municipality.) BATTLEFORD, SASK.— For each agent, $5, payable June i BEDFORD, QUE.— For each agent, $10. CHARLOTTETOWN, P. E. I.-Each company, $50 yearly, payable June i. CHICOUTIMI, QUE.— Each company, $10; each agent, $5, payable May i. CHILLIWACK, B. C— For each agent, $20 per annum. DIGBY, N. S.— For each company, $5, payable before December 31. EDMONTON, ALTA— At current tax rate on assessment of $2.50 per 100 square feet of office floor space. CANADA. 66 FARNHAM, P. Q. — For each company, $15. FERNIE, B. C. — For each agent or agency, $50, semi-annually. FRASERVILLE, QUE. — For each company, $25 ; for each agent, $5, payable May I. FREDERICTON, N. B.— For each company, $25 ; for each agent, $5. HALIFAX, N. S. — For each company, $200, payable May i. HULL, P. Q. — For each company, $25 ; for each agent, $5, payable May i. KAMLOOPS, B. C. — For each company, $25, payable January 2. Not to be collected after 191 1. LACHUTE, QUE. — For each agent, $5, payable January 5. LETHBRIDGE, SASK. — For each agent, $10 per year, payable January 31. MONTREAL, P. Q. — For each company, $200 and one per cent on premiums. NANAIMO, B. C. — For each company, $25. NELSON, B. C. — For each agent, $10 per annum, payable semi-annually, Jan- uary 15, July 15. NEW WESTMINSTER, B. C— For each company or agent, $50, payable semi-annually, January 15, July 15. NICOLET, QUE.— For each agent, $3, payable May i. ORMSTON, P. Q.— For each agent, $5. PORTAGE LA PRAIRIE, MAN.— Twelve and one-half per cent of rental of premises, payable October i, or $50 per annum. QUEBEC — Each company, $500; each agent, 121^ % on rental, payable in Nov. RIVIERE DU LOUP, QUEBEC— For each company represented by resident agent, $25 ; for each non-resident agent, $50. ST. HYACINTH, QUE.— For each company, $30 for first agent, and $10 for each additional agent, payable May i . ST. JOHN, N. B. — For each company, $100 (and salvage corps assessment). SHERBROOKE, QUEBEC— For each company, $25, payable May i. SOREL, QUE.— For each company, $25 ; for each agent, $15, payable May i. SPRINGHILL, N. S. — For each company, ten per cent on premiums. SYDNEY — For each company, $20; also tax at personal property rate based on $100 for each $20 of net annual income or profit; for non-resident agent, $20. SUMMERSIDE, P. E. I. — ^A license fee of $10 per annum is imposed upon each company operating in the town of Summerside, which fee is payable June I to the town clerk. A company transacting more than one branch of insurance business shall pay a similar fee for each branch. Agent so- liciting for a company not domiciled in the Province pays a fee of $10. THREE RIVERS, QUE.— For each company, $75. VALLEYFIELD, P. Q.— Each company, $10; each agent, $8, payable May i. VANCOUVER, B. C— For each company, $100 per annum, payable January I and July i. VICTORIA, B. C— For each company, $300, payable quarterly. COLORADO. STATE REQUIREMENTS. AGENTS DEFINED— General Ins. Law, Div. i, Sec. i6. "A person who is neither a Hcensed broker nor provided with a certificate from the Insurance Department as an authorized agent or solicitor of an insurance company, and who for compensation solicits insurance in behalf of such a company, or transmits for a person other than himself an application for a policy of insurance to or from such a company, or offers or assumes to act in the negotiation of such insurance, shall be an insurance agent or solicitor within the intent and for the purposes of this act, and shall therefor, except as otherwise provided in sub-division (6) of this section, become liable for all duties, requirements, liabilities and penalties to which an agent of such company is subject; and such company by compensating such person, through any of its officers, agents, or solicitors, for soliciting, shall thereby accept and acknowledge such person as its agent or solicitor in such trans- action." AGENTS' LICENSES — Company must procure for each agent a copy of its certificate of authority ; certificates expire the last day of February. Certifi- cate required for each member of firm. Applications for licenses not required to be made by company officer may be made by general or special agent authorized in writing to appoint agents. Should be filed prior to March i. Penalty for acting for an authorized company without a cer- tificate, $100 fine, or imprisonment for 2 months, or both; for representing an unauthorized company, $100 fine, or 2 months' imprisonment, or both; for accepting business from an unlicensed agent or broker, suspension or revocation of license. ANNUAL STATEMENTS— Must be filed on or before March i. ANTI-COINSURANCE— No provision. ANTI-COMPACT— No provision. ANTI-DISCRIMINATION— No provision. ATTORNEY — The Commissioner must be empowered to accept service of legal process. CANCELLATION OF POLICY— Part of Sec. 57, General Ins. Laws. "The Commissioner shall refuse to authorize any such company, association or corporation to do business in this State, whenever the form of policy con- tract issued or proposed to be issued by any such company, association or corporation does not provide for the cancellation of the same at the request of the insured upon equitable terms ; or whenever the form of policy does not provide that in case the policy shall be cancelled at the request of the insured, the premium having been actually paid, that the unearned portion shall be returned on surrender of the policy or last renewal, the company COLORADO. 67 in no event retaining an amount in excess of the amount shown to be th< earned portion of said premium, as per the customary short-rate table." CAPITAL REQUIRED — Not less than $200,000. A domestic company lim- iting its operations to Colorado, is only required to have $50,000 of its capi tal paid in. COMMISSIONS TO NON-RESIDENTS— Commissions must be received by resident agents. DEPOSIT — Foreign companies must have $200,000 deposit in Colorado, or some other State. Such deposit may be made in the securities, but subject to the limitations specified under "Investments Prescribed." DOMESTIC COMPANIES— Sec. 30. "Whenever any number of persons shall associate to form an insurance company, for any of the purposes named in the preceding sections, and become incorporated in accordance with the provisions of Chapter XIX of the General Statutes of 1883, they shall file a copy of the articles of incorporation with the Commissioner of Insurance, who shall submit the same to the Attorney-General for ex- amination ; and if found by him to be in accordance with the provisions of this act, and not inconsistent with the Constitution of this State, he shall certify and deliver back the same to the Commissioner, who shall commis- sion the persons named in the certificate of incorporation, or a majority of them, to open books for the subscription of stock in the company, at such time and place as they shall deem it convenient and proper, and shall keep the same open until the full amount specified in the certificate of incorpo- ration is subscribed." EXAMINATIONS— Gen. Ins. Laws, Div. i, Sec. 14. "The Commissioner of Insurance shall examine and inquire into violations of the Insurance Laws of this State, and for this purpose, or to see if the laws are obeyed, or to examine the financial condition, affairs and management of any company, he may visit, or cause to be visited by any competent person or persons he may appoint, the head office in the United States of any domestic or foreign insurance company applying for admission to, or already admitted to do business in this State, and may for these purposes examine or investigate any company organized under the laws of Colorado, and any agency of any company doing business in this State, provided that the consent of the Gov- ernor must be obtained to all examinations, inquiries or investigations, the cost of which to the State or the insurance company is to exceed one thou- sand dollars ($1,000). The cost of such examinations when made beyond the borders of the State of Colorado shall be paid by the company exam- ined, and shall include the reasonable expenses of the Commissioner, his deputies and assistants employed therein, whose services are paid for by the Department, and the compensation and reasonable expenses of his assistants employed therein whose services are not paid for by the Depart- ment. * * * The Commissioner may also examine companies upon the request of five or more of the policyholders, representing at least $100,- 000 insurance m force, who shall make affidavit of their belief, with sped- 68 FIRE INSURANCE LAWS, TAXES AND FEES. fications of their reasons therefor in writing, that such company is in an unsound or insolvent condition; provided, that only the United States branches of companies incorporated in foreign countries shall be examined by such Commissioner." False swearing or failure to produce books shall be held to be a misdemeanor, punishable by fine not exceeding $500, or im- prisonment for not exceeding three months, or both. Any person making any false certificate, entry, memorandum, or figures with intent to deceive the Commissioner is liable to a fine of $1000, or imprisonment for not less than two months, nor more than twelve months in the county jail, or both. FEES — Foreign companies pay for entrance fee, $80; filing annual statement, $50; certificate of authority, $5; filing articles or incorporation (domestic companies), $50; filing power of attorney and statement preliminary to entrance^ $50 ; filing copy of charter and examination of same, $25 ; copy of certificate for use of agent, $2 ; copy of paper on file, 20 cents per folio ; for affixing seal, $1 ; for accepting service of process, $4. Fees payable to Insurance Commissioner. Penalty for non-pa)mient of fees, revocation of license. FIRE DEPARTMENT TAX— No provision. FIRE MARSHAI^-No provision. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— None re- quired. GENERAL PENALTY— Sec. 2236. "In consequence of any violation of this act it shall be the duty of the Superintendent of Insurance to revoke the authority of such company to do business in this State, and the same shall not be renewed during a period of six months thereafter." IMPAIRMENT— When a company is in unsound condition its license must be revoked. INVESTMENTS PRESCRIBED-Capital and accumulated funds of a Colo- rado company may be invested in bonds and mortgages on real estate worth fifty per cent more than the amount loaned, exclusive of buildings (unless the latter are insured for the benefit of the company) ; bonds of the State of Colorado, or bonds or treasury notes of the United States ; bonds of any Colorado school district or incorporated city, legally authorized ; or such funds may be loaned upon the security of the bonds, notes, etc., named. Surplus over capital may be invested in or loaned upon bonds of the United States or any one of the States, or the bonds or other evidences of indebted- ness of any solvent dividend-paying institutions, other than mining corpo- rations, mcorporated under the laws of any State or of the United States- but the current market value of security for loans must always be at least twenty per cent more than the sum loaned thereon LICENSED BROKERS-Brokers may be licensed(fee, $10 per year) to place risks with licensed companies. Licenses expire last day of Februarv LIMIT ON A SINGLE RISK-Net line, ten per cent of paid-up capTal and surplus. LLOYDS-The word "company," as used in the laws, includes all corporations. COLORADO. 69 associations, partnerships or individuals engaged as principals in the in- surance business, except fraternal and benevolent orders. MISCELLANEOUS — A Colorado company doing business in another State without having procured a license in such State, is liable to have its Colo- rado license revoked. Consent of both parties is required before removing a law suit to a Federal Court. Penalty for violation, revocation of license. MUTUAL COMPANIES— Gen. Ins. Laws, Sec. 63. "Twenty-five or more persons, citizens of this State, may form a corporation to carry on the busi- ness of fire insurance on the mutual plan ; but no such corporation shall begin to do business until a guaranty fund of at least $25,000 has been provided and deposited in cash or in such securities as are permitted by law in case of stock companies, with the Commissioner of Insurance, under the conditions named in this act; the same to be held as security for the payment of all losses and other policy liabilities of such companies." Premium notes shall be liens upon properties insured. Provision is made for county mutual associations, and for the reorganization of mutual companies as stock com- panies with $50,000 or more of capital. PRELIMINARY DOCUMENTS— Company must file a certified copy of its charter and a statement showing the condition of the company December 31 preceding; also copies of all policies used in the State; also an acceptance of the reinsurance law. Foreign companies must file certified copy of charter; copies of all policies, power of attorney, and acceptance of rein- surance law. Certificate of compliance with laws of home State of com- pany required annually. Penalty for doing business without having obtained annual certificate, $100 for each offense. It is held to be illegal for Hcensed companies to transact business under any but their proper names unless through a duly authorized and incorporated concern. PUBLICATION — Synopsis of statement must be published at least four times in a Denver newspaper of general circulation (Sec. 24), and a copy of paper filed with the Commissioner of Insurance. RECIPROCAL LAW— Repealed in 1907. REINSURANCE— General Ins. Laws, Sec. 58. "No fire or casualty insur- ance company shall reinsure in any manner whatsoever, the whole or any part of a risk taken by it on property or persons resident, situated or lo- cated in this State, in any other company or association not authorized to transact business in this State. No fire or casualty insurance company shall transfer or cede, in any manner whatsoever, to any company or asso- ciation not authorized to do business in this State, any risk or liability or any part thereof assumed by it, under any form of contract of insur- ance, 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 reinsure excess loss. No fire or casualty insurance company shall reinsure, or assume as a remsunng company, or otherwise, in any manner or form whatsoever, the whole or any part of any risk or liabilitv covering property located in this State, of any insurance company not 70 FIRE INSURANCE LAWS, TAXES AND FEES. authorized to transact business in this State." Yearly certificates of com- pliance required. Reinsurances must be reported. Penalty for violation, revocation of license for at least one year. Reinsurance policies not re- quired to be countersigned by resident agents. The Insurance Depart- ment has ruled that resident agents may properly place lines in non-ad- mitted companies, in cases where the admitted companies are unable to carry the entire line; and that fire insurance companies admitted to the State may reinsure risks for companies not admitted to the State. Rein- surance in an "underwriters' agency" not permitted. REINSURANCE RESERVE— Fifty per cent of gross unexpired premiums having less than one year to run, and pro rata on all unexpired risks having more than one year to run. RESIDENT AGENTS— General Ins. Laws, Div. I., Sec. 33. "It shall be un- lawful for any foreign insurance company to make, write, place or cause to be made, written or placed in this State any insurance policy or contract of any kind, to provide against any contingency which may be insured or guaranteed against, unless done through its duly and regularly appointed and authorized agent or agents, residents of this State." Yearly pledges of compliance required. Penalty for violation, revocation of license for one year or more. SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— No provision. Policies used must be examined and approved by the Commissioner. See "Cancellation." TAXES — ^All insurance companies engaged in the transaction of the business of insurance in the State, shall pay annually to the Commissioner of Insur- ance, on or before March i, two per cent on the gross amount of premiums received within the State during the year ending the previous 31st of December. (Deduction of reinsurances permitted, the company taking the reinsured risks paying the tax on premiums.) The Act of April i, 1907 (General Corporation Tax), requires the payment to the Secretary of State, on or before May i, of each year, of an annual license tax upon both domestic and foreign corporations, in addition to all other fees and taxes, as follows : 2 cents on each $1000 of capital stock. Penalty for non-com- pliance, revocation of license until such tax is paid ; also ten per cent of tax for each six months of delinquency. "Insurance companies shall not be subject to any further taxation except on real estate, and the fees provided by this act." (General Insurance Laws, Sec. 16). TAX STATEMENTS— Must be filed on or before March i VALUED POLICY— No provision. COUNTY TAXES AND FEES. None, except on real estate. MUNICIPAL TAXES AND FEES. None, except on real estate. CONNECTICUT.* STATE REQUIREMENTS. AGENTS DEFINED — Sec. 3620. "* * * any person who shall in any manner aid in transacting the business of an insurance company." AGENTS' LICENSES — ^Agents of other than Connecticut companies must secure certificates of authority, which expire April i each year. Penalty for acting without license, fine of not more than $1000. ANNUAL STATEMENTS— Must be filed in the month of January. Penalty for wilfully making false statement, imprisonment for not more than five years. ANTI-COINSURANCE— No law. ANTI-COMPACT— No law. ANTI-DISCRIMINATION— No provision. ATTORNEY — The Insurance Commissioner must be empowered to accept service of legal process. CANCELLATION — Sec. 3526. "No insurance company or association shall cancel a policy issued against loss by fire on property in this State without giving the party insured at least five days' notice, in writing, of such inten- tion, and returning the ratable proportion of the premium for the unexpired term of the policy." CAPITAL REQUIRED — Stock companies must possess a paid-up capital of $150,000. Mutual companies must possess $150,000 in cash or available securities. COMMISSIONS TO NON-RESIDENTS— No provision. DEPOSIT — Foreign companies must have at least $200,000 invested in securi- ties authorized by law for investments of savings banks, deposited with the proper officers of Connecticut, or of some other State. DOMESTIC COMPANIES — Sec. 3623. "Every insurance company or asso- ciation incorporated or organized in this State shall before issuing a policy or making a contract of insurance, file with the Insurance Commissioner a certified copy of its charter or articles of association and a statement verified by the oath of its president and secretary, showing that said com- pany is duly organized." Sec. 3624. "Upon receiving such statement the Insurance Commissioner shall examine such company or association, and, if he finds that it has complied with the terms of its charter or articles of asso- ciation and the laws of the State, shall issue a certificate authorizing such company or association to issue policies and make contracts of insurance." Under the law, fire insurance companies may write hail and wind storm insurance. EXAMINATIONS — Sec. 3490. "The Insurance Commissioner may from time to time examine into the methods of business of any company, corpo- ration, association, partnership, or combination of persons doing any kind or form of insurance business in this State, and may require them to answer such questions as he may think necessary for the purpose of such inquiry, * Sectional references are to General Statutes, Revision of 1902, unless otherwise specified. 72 FIRE INSURANCE LAWS. TAXES AND FEES. and if in his opinion any such company, * * * is doing business in an illegal or improper manner, or is failing to adjust and pay losses and obligations when they become due, excepting claims to which in the judgment of the Commissioner there is a substantial defense, he may order it to discontinue such illegal or improper method of doing business, and may order it to adjust and pay its losses and obligations as they become due." Sec. 3491. "If any such company, * * * shall fail within ten days to obey any such order of the Commissioner, he may apply w a court or judge having juris- diction for an injunction, or for the appointment of a receiver, or for both. * * *" The Commissioner is authorized to examine, or cause to be examined, at any time, any company doing business in the State. FEES — Issuing license, companies other than those of foreign countries, $10 ; issuing license, foreign companies, $50 ; filing statement, foreign companies, $20; filing statement, companies other than those of foreign countries, $10; filing charter, domestic companies, preHminary to commencing business, $10; filing charter other State companies, reciprocal; fiUng charter, foreign companies, $30 ; fihng any additional paper, 25 cents ; certificate of condi- tion, $io; certificate of authority, $5; agents' certificates, other State com- panies, reciprocal; agents of companies of foreign countries, $2 each (for corporation acting as agent, $4) ; license to deal with unauthorized com- panies, $20; broker's license, $10. (The last two fees may be prorated.) Fees payable to Insurance Commissioner. The expenses of any examina- tion or inquiry made without the State shall be borne by the company examined. FIRE DEPARTMENT TAX— Governed by reciprocal law. FIRE MARSHAL — Law provides for investigation of fires by State police FOREIGN COMPANIES' HOME OI'FICE STATEMENTS— None re- quired, except that when seeking admission to the State, a copy of the last annual report is required. GENERAL PENALTIES— Sec. 3635. "Every person or corporation vio- lating any provision of the preceding sections of this title for which no penalty is provided shall be fined not more than $500." Sec. 3636. "Every person who shall violate any law of this State relating to insurance com- panies organized under the laws of other States or foreign governments shall be fined not more than $500 where no other penalty is provided." (Sec. 3619). For making false representations in advertisements, first ofl^ense, a fine of $500 ; later offenses, a fine of $1000 each. IMPAIRMENT— Impairment exceeding twenty-five per cent of capital must be made up within a reasonable time, or injunction proceedings must be begun. INVESTMENTS PRESCRIBED— None LICENSED BROKERS-Part of Sec. 3626. "The Insurance Commissioner, upon the payment of a fee of $20, may issue a license to any person per- mittmg the person named therein to procure policies of fire insurance on property m this State in companies or associations approved by said Com- missioner, which have not complied with the laws of this State relative to CONNECTICUT. 73 such companies or associations." Sec. 3627. "No person shall act under such license until he shall have made and filed in the offices of the Insur- ance Commissioner an affidavit that he is unable to procure, in companies admitted to do business in the State, the amount of insurance necessary to protect the property to be insured under such license. Such person shall keep a separate account of the business done under such license, which account shall at all times be open to the inspection of the Insurance Commissioner, and shall annually, on or before the 20th of January, file in the office of the Insur- ance Commissioner a sworn statement, showing, first, the exact amount of insurance placed for each person, firm or corporation, under such license ; second, the gross premiums charged thereon; third, in what company or companies, association or associations; fourth, the date of the policy or policies ; fifth, the terms thereof." Sec. 3628. "Each person acting under such license shall pay the Insurance Commissioner of this State, annually, on or before the 30th of January, a sum equal to three per cent of the gross premiums charged for insurance procured or placed under such license." Sec. 3630. "Whoever for compensation acts or aids in any manner in negotiating contracts of insurance or reinsurance, or placing risks, or effecting insurance or reinsurance for a person other than himself, and not being the appointed agent or officers of the company in which such insurance or reinsurance is effected, shall be deemed an insurance broker, and no such person shall act as such broker except as provided in sections 3631, 3632 and 3633." Sec. 3631. "The authorized agent of any company legally admitted to do business in this State may, without being deemed a broker or procuring a broker's certificate of authority, negotiate or effect contracts of insurance or reinsurance with any qualified domestic insurance company or its agents, and with the authorized agents in this State of any foreign insurance company admitted to do business in this State : provided, that such contracts shall be of the same class and character of insurance or reinsurance as those which such authorized agent legally admitted to do business in this State is allowed to effect." A broker may be licensed for $10 per year to deal with authorized companies. LIMIT ON A SINGLE RISK— Ten per cent of capital and surplus. LLOYDS — No provision. MUTUAL COMPANIES— Sec. 3508. "Any mutual fire or fire and marine or mutual marine insurance company located in any other State of the United States, possessed of $150,000 in cash, or securities invested in avail- able cash assets, may be admitted to take risks and transact business in this State through lawfully constituted and licensed resident agents ; provided, that it shall comply with all the other requirements of the laws of this State relating to such companies of other States, and that similar companies of this State are admitted to transact business in such other State." PRELIMINARY DOCUMENTS — Company must deposit with the Commis- sioner a certified copy of its charter and a verified statement showing its rnndih'nn. Foreifm comnanies must- filp copy of charter, duly certified: 74 FIRE INSURANCE LAWS, TAXES AND. FEES. certificate of deposit ; head office statement ; certified copy of vote by which trustees were appointed; and certified copy of deed of trust. Certificate of compliance with laws of company's home State is not required annually. PUBLICATION — No requirement. Any advertisement showing a company's assets must also show its liabilities on the basis allowed for its annual state- ment. RECIPROCAL LAW— Sec. 3606. "When any other State shall impose any obligation, prohibition or restriction upon insurance companies, corporations, or associations of this State, or their agents transacting business in such other State, the like obligations, prohibitions, and restric- tions are hereby imposed on similar companies, corporations, and associa- tions of such other State and their agents transacting business in this State; and such companies, corporations, and associations of other States, and their agents, shall pay all penalties to the Insurance Commissioner of this . State and make deposits with the State Treasurer. Whenever it shall appear to the Insurance Commissioner that permission to transact business within any State of the United States or within any foreign coun- try is refused to a company organized under the laws of this State after a certificate of the solvency and good management of such company has been issued to it by the said Commissioner, and after such company has com- plied with any reasonable laws of such State or foreign country requiring deposits of money or securities with the government of such State or coun- try, then, and in every such case, the Commissioner may forthwith cancel the authority of every company organized under the laws of such State or foreign government and licensed to do business in this State, and may refuse a certificate of authority to every such company thereafter applying to him for authority to do business in this State, until his certificate shall have been duly recognized by the government of such State or country." REINSURANCE — No provision concerning reinsurance in unauthorized com- panies. REINSURANCE RESERVE— Fifty per cent of the gross premiums on poli- cies running one year or less and a pro rata amount on policies running more than one year (less return premiums and reinsurance) received on risks in force not perpetual ; ninety-five per cent of premiums on perpetual risks in force; ocean marine risks, the full amount of premium in force, except on time hull risks, which may be computed at fifty per cent of the amount of premiums received on risks in force. RESIDENT AGENTS— Other State and foreign companies are forbidden by Sees. 3507 and 3523 to transact business in Connecticut except through lawfully constituted and licensed resident agents. SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— The Connecticut standard policy form, which is the same as New York's must be used. Riders must be in type not smaller than long primer, and must be signed by the officers or agent of the company. Penalty for violation, not more than $200 for each offense. Policies of typewriter size may be used. CONNECTICUT. 75 TAXES — Chap. 34, Sec. 2, Public Acts of 1903. (Foreign companies). Resi- dent manager shall annually, on or before March i, pay to the Insurance Commissioner a tax of two per centum upon the gross amount of premiums. Return premiums may be deducted. Taxation of companies of other States is governed by reciprocal provisions. Taxes of mutual companies of Con- necticut : Chap. 183, Public Acts of 1903. "The secretary or treasurer of every insurance company chartered by this State, and doing business in whole or in part upon the plan of mutual insurance, including every company whose policyholders have a right to participate in its profits, shall, if a fire insurance company, on or before the 20th day of January, * * * annually render to the Comp- troller a sworn statement, showing the total amount of its assets on the preceding 31st day of December, with a detailed enumera- tion of such assets and the market value thereof, the amount of premium notes held by it, its ascertained and unpaid losses on that day, the assessed valuation of its real estate listed against said company in this State during the year ending on said preceding 31st day of December, and the amount of taxes payable thereon during said year, * * * i^fitli a statement of the balance remaining, after deducting from the total amount of assets the ascertained and unpaid losses, and the market value of any bonds owned by it, which have been heretofore issued by this State, or by any town or city in this State, in aid of the construction of any railroad, and which, by the laws of the State, are exempt from taxation, and the premium notes held by it." Chap. 139, Pub. Acts of 1903. "Every such mutual fire in- surance company shall, annually, pay to the State, on or before the 30th day of January, as a tax upon its corporate franchise, one-fourth of one per centum upon the balance remaining as aforesaid." Reciprocal pro- vision as to companies of other States. See "Tax Statements" for taxes levied upon domestic stock companies. TAX STATEMENTS— Must be filed by companies of other States and for- eign countries on or before January 31. A domestic company must, on or before October 15, annually file in the office of the Tax Commissioner, a statement under oath, showing the number of shares of its capital stock and the market value thereof on October i, the name and residence of each stockholder, and the number of shares owned by each on said last named date, and on or before the last day of the following February must pay to the Treasurer of the State a tax of one per centum on the market value of each share of its stock, less the amount of taxes paid by such corporation upon its real estate in Connecticut during the year ending on September 30 next preceding. VALUED POLICY— No law. COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. None, except property tax. DELAWARE. STATE REQUIREMENTS. AGENTS DEFINED— Chap. 23, Vol. 19, Sec. 5. " * * * Every person who shall procure or solicit any citizen or resident of this State to take out a policy of insurance in any fire insurance company or companies not incorporated by the laws of this State shall be deemed a foreign fire insur- ance agent * * *." AGENTS' LICENSES — Companies are required to secure for their agents licenses good for one year from the date thereof, and also certificates of authority, which expire February 28. Applications for licenses must be made by company officials, under seal, as appointments are made and annually thereafter before February 28. Penalty for acting for non-ad- mitted company, $100 to $500, or imprisonment for not more than six months, or both. Soliciting business without a license, a fine not exceed- ing $500, or imprisonment not exceeding thirty days, or both; for non- payment of tax, a fine of not over $500, or imprisonment not longer than two years, or both, and payment of the tax. ANNUAL STATEMENTS— Must be filed on or before February 28. ANTI-COINSURANCE— No provision. ANTI-COMPACT— No requirement. ANTI-DISCRIMINATION— No provision. ATTORNEY — The Insurance Commissioner must be designated to accept service of legal process for companies domiciled outside of the State. CANCELLATION OF POLICY— No special requirement. CAPITAL REQUIRED — Stock companies must possess $100,000 of capital, over and above all liabilities. Mutual companies must have net assets of at least $100,000, and be authorized to transact business in the State wherein they are incorporated. Foreign companies must have $100,000 oi net assets. COMMISSIONS TO NON-RESIDENTS— Commissions must be received by resident agents. DEPOSIT — None required, except by operation of reciprocal law. Foreign companies must have $100,000 net assets deposited in the United States (character not specified). DOMESTIC COMPANIES— No special requirement. Penalty for failure to pay State tax, a fine of $500 to $2000, costs and revocation of charter. EXAMINATIONS — Whenever the Insurance Commissioner may deem it for the interest of the public he may proceed to examine a company. FEES — For filing charter, $10; annual statement, $10; certificate of authority to company, $25 ; issuing company's certificate, $2 ; copy of paper on file, 20 cents per folio ; certifying same, $1 : examination of companies, actual expenses incurred; agent's certificate of authority (transferable), $2; DELAWARE. 77 agent's State license (transferable, expires one year from date of issue), $5-50- Penalty — Failure to pay license fee, fine of not less than $500, nor more than $2000. Fees are payable to Insurance Commissioner. See "Publication." FIRE DEPARTMENT TAX— Governed by reciprocal law. FIRE MARSHAI^None. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Delaware does not require the filing of a statement of the home office, except when expressly demanded by Commissioner. GENERAL PENALTY — For violation of the insurance law, a fine not exceed- ing $1000. IMPAIRMENT— Chap. 99, Sec. 4. "* * * If at any time the Insurance Commissioner shall find the capital stock of any company doing business in this State impaired to the extent of twenty per cent, he shall 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 company to cease to do business within this State, and shall, thereupon, in case the company is organized under the laws of this State, immediately institute legal proceedings." INVESTMENTS PRESCRIBED— Discretion of the Insurance Commis- sioner. LICENSED BROKERS— No special requirement. LIMIT ON A SINGLE RISK— No provision. LLOYDS — No special provision. MUTUAL COMPANIES— Sec. 4. "That if by the statement furnished as aforesaid, it shall appear that such company is incorporated under the laws of the State, and is a mutual company, and that agreements have been en- tered into by the company for insurance with at least 100 applicants, and that securities on said insurance founded on actual and bona fide applications for insurance, and amounting to not less than $20,000, have been received ; or, if it shall appear by such statement that such company, being incorporated under the laws of this State, is a stock company, and has an actual paid-in capital stock of at least $100,000 over and above all claims and liabilities ; or, if it shall appear by such statement that such company is incorporated under the laws of any other State or foreign government, or is in good con- dition, and has assets to the amount of $100,000 over and above all liabili- ties and claims, then the Insurance Commissioner shall issue a certificate authorizing said company to transact the business of insurance and estab- lish agencies in this State." PRELIMINARY DOCUMENTS— Company must file with the Commissioner a certified copy of its charter and a verified statement showing its condition Foreign companies must file in the office of Insurance Commissioner a certi- fied copy of charter and a power of attorney to accept service of process and name agents in the State ; sworn statement of assets and liabilities ; home office statements not required. Certificate of compliance with laws of company's home State required annually, on or before February 28. Pen- 78 FIRE INSURANCE LAWS, TAXES AND FEES. alty for operating without filing above (a misdemeanor), fine of from $200 to $500. Commissioner may revoke a company's license at his dis- cretion. PUBLICATION — Abstract of statement must be published once a week for three weeks in at least two newspapers iij the State, on or before July i. Expense to be borne by companies (estimate.d $5). RECIPROCAL LAW— Chap. 179, Vol. 14, Sec. i. "That whenever the exist- ing or future laws of any other State of the United States shall require of insurance companies incorporated by this State and having agencies in such other State, or of the agents thereof, any deposit of securities in such State for the protection of policyholders, or otherwise, or any payment for taxes, penalties, certificates of authority, license fees, or otherwise, greater than the amounts required for such purposes from similar companies of other States by the then existing laws of this State, then, and in every such case, all companies of such States establishing, or having heretofore established, an agency or agencies in this State, shall be and are hereby required to make the same deposit, for a like purpose, with the Treasurer of the State of Dela- ware, and to pay said Treasurer for taxes, fines, penalties, certificates of authority, license fees, and otherwise, an amount equal to the amount of such charges and payments imposed by the laws of such State upon com- panies of this State and agents thereof." REINSURANCE — Chap. 99, Vol. 22, Sec. 12. "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 reinsure excess loss by one or more fires. No fire insurance company or association shall reinsure or assume, as a reinsuring company or otherwise, in any manner or form whatsoever, the whole or any part of any risk or liability, covering property located in this State, of any insurance company or association not authorized to transact business in this State." All reinsurances must be reported annually (or oftener if required). Credit is allowed for reinsur- ances in authorized companies. Reinsurance policies must be countersigned by resident agents. Penalty for each violation, $500. REINSURANCE RESERVE— No requirement. RESIDENT AGENTS— Chap. 99, Vol. 22, Sec. 11. "That no fire insurance company or association not incorporated under the laws of this State, authorized to transact business herein, shall make, write, place, or cause to be made, written or placed, any policy, duplicate policy, or contract of insurance of any kind or character, or any general or floating policy upon DELAWARE. 79 property situated or located in this State, except after the said risk has been approved in writing by an agent who is a resident of this State, regularly commissioned and licensed to transact insurance business herein, who shall countersign all policies so issued, and receive the commission thereon when the premium is paid, to the end that the State may receive the taxes re- quired by law to be paid on the premiums collected for insurance on all property located in this State ; and that no person, other than the owner, shall pay or forward any premiums, applications for insurance, or in any manner secure, help or aid in placing of any fire insurance, or effect any contract of insurance upon real or personal property within this State, di- rectly 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 company or association, authorized to transact business in this State, from issuing policies at its principal or department ofiSces, covering property in this State ; provided, that such policies are issued upon applications 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, that no part of this section is intended to, or shall apply 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 com- mon carriers, nor to the property of such common carriers, used or em- ployed by them in their business as common carriers of freight, merchan- dise or passengers." The Insurance Department rules that reinsurance policies must be countersigned by resident agents. SEMI-ANNUAL STATEMENTS— No requirement. STANDARD POLICY— No standard form. A ruling of the Insurance De- partment permits stock companies to use the typewriter form of the New York Standard Policy. TAXES — Chap. 23, Vol. 19, Sec. 3. "* * * And every insurance company, firm or corporation, doing any other (than life) business within the State, shall, on the ist day of February of each year, pay to the Insurance Com- missioner, for the use of the State, one and one-half per centum on the gross amount of premiums received and assessments collected by any such insur- ance company, firm or corporation, or authorized agent for the year im- mediately next preceding the date herein provided for such payment." Dela- ware companies must pay a tax of $100 annually on first Tuesday in July. The Delaware State Grange Mutual Fire Company is exempt from this tax. Penalty for non-payment of tax, revocation of license. Chap. 166, Vol. 21, Sec. 4, provides that "each insurance company, other than life, shall pay to the State Treasurer, for the use of the State, an annual license fee or fran- chise tax at the rate of three-fourths of one per centum upon the gross 80 FIRE INSURANCE LAWS. TAXES AND FEES. amount of its premiums so returned or ascertained;" Sec. 2 requiring a statement of total premiums received during the preceding year to be filed by the first Tuesday in January in each year. (Chap. i66, Vol. 21, applies to companies incorporated under General Corporation Law of 1899.) Law of March 29, 191 1, Sec. i. "That where in Chapter 99, Volume 22, Laws of Delaware, and elsewhere in the laws of this State the words "gross premiums" are used in reference to premiums received by fire insur- ance companies on policies covering risks located within the State of Delaware the same shall be taken and held to mean all moneys collected as premiums on such policies, less return premiums paid therefrom by reason of cancellation of policies and less reinsurance premiums received from companies authorized to do business in this State and which pay to the State taxes on the original premiums." TAX STATEMENTS— Must be filed on or before February 28. See "Taxes." VALUED POLICY— Law of 1889, amended 1893, Sec. i. "Whenever any policy of insurance shall be issued to insure any real property in this State against loss by fire, tornado, or lightning, and the property insured shall be wholly destroyed, without criminal fault on the part of the insured or his assigns, the amount of the insurance stated in such policy shall be taken conclusively to be the true value of the property insured, and the true amount of loss and measure of damages, subject to the proviso herein; and every such policy, when hereafter issued or renewed, shall have in- dorsed across the face of it the following: 'It is agreed between the in- surer and insured that the value of the insured property is the sum of $ and this estimate shall be binding on both parties, as to the value; provided, however, that nothing herein contained shall, in case of loss, prevent the company insuring from adjusting the loss by replacing the property destroyed ; and, in case any owner shall effect any subsequent in- surance upon any larger value than so agreed, all insurance, as well as that then existing, and that subsequently obtained, shall become void.' " COUNTY TAXES AND FEES. None. iWUNICIPAL TAXES AND FEES. LAUREL — For each agent, $5. DISTRICT OF COLUMBIA. STATE REQUIREMENTS. AGENTS DEFINED— No definition. AGENTS' LICENSES — Fee for principal agent's license which expires an- nually April 30, $50* (paid by agent.) Fee for license pro rated for unex- pired time. Fee covers not exceeding two partners in a firm or corporation, or secretary or assistant secretary of a corporation, and a single license (fee $50) covers all companies represented. Solicitors regularly employed by one company or agent are licensed at $5* yearly, to work for such single company. Applications for licenses should be filed by company officers before March i, annually. Industrial solicitors license, $2.* Penalty for acting for unlicensed company, fine not exceeding $100, or imprisonment for ten to sixty days. ANNUAL STATEMENTS— Annual statements must be filed on or before March i, and published in at least one newspaper in the District, in March. ANTI-COINSURANCE— No provision. ANTI-COMPACT— No provision. ANTI-DISCRIMINATION— No provision. ATTORNEY — A resident of the District must be appointed to accept service of legal process. CANCELLATION OF POLICY— No requirement. CAPITAL REQUIRED — Each stock company must have at least $100,000 paid in. Assets of all companies must equal their liabilities. COMMISSIONS TO NON-RESIDENTS— Commission must not be paid to anyone in the District of Columbia not licensed as an agent. DEPOSIT — Foreign companies must have $100,000 deposited in one of the United States or with the Supreme Court of the District of Columbia (character of assets not specified). DOMESTIC COMPANIES — No soecial requirements, except as under "Taxes." EXAMINATIONS — Examinations of domestic companies permitted to be made at the discretion of the Superintendent of Insurance. FEES — License for principal agent (payable by agent), $50, payable in March to the Collector of Taxes. License for solicitor (payable by solicitor), $5. For filing preliminary documents, prorated monthly at the rate of $10 per annum from May i, which is the anniversary date of all insurance licenses; and $10 annually thereafter for filing annual statement and certificate of compliance for admission, on which annual license is issued (includes annual license fee). The $10 fee and the tax on premiums (see "Taxes") are the only charges that can be applied to companies. All fees are payable to the Collector of Taxes. FIRE DEPARTMENT TAX— None. •May be transferred lo another agent of such company at an expense of 25 cents. 82 FIRE INSURANCE LAWS, TAXES AND FEES. FIRE MARSHAL— Investigation of fires is provided for. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— None re- quired. IMPAIRMENT — Impairment permitted, limited to twenty-five per cent, undei penalty of suspension of license; and if not made good within sixty days license shall be revoked. Penalty of $20 per day for doing business without a license. INVESTMENTS PRESCRIBED— Capital must be invested in "property worth not less than the full amount of the capital stock required by its charter." LICENSED BR0KERS--$50 per annum pro rated monthly from first of month in which application is made to April 30, inclusive, following. LIMIT ON SINGLE RISK— No provision. LLOYDS — No requirement MUTUAL COMPANIES— Must file qualifying documents. Exempt from taxation. PRELIMINARY DOCUMENTS— Company must file with the Superin- tendent of Insurance of the District a statement showing its condition December 31 preceding. Penalty for doing business without authority, $20 per day. Company must also file certified copy of charter or articles of incorporation (need be filed but once), and certificate of compliance annually, showing that it has complied with the laws of its own State and such other documents as Superintendent may require. Certificate of com- pliance must be filed annually before March i. PUBLICATION — Statement must be published annually in at least one news- paper in the District in the month of March. RECIPROCAL LAW— None. REINSURANCE — No prohibition of reinsurance in unauthorized companies, if transaction is made outside of the District. REINSURANCE RESERVE^AU companies are required to "maintain a reinsurance reserve fund." RESIDENT AGENTS— No requirement. SEMI-ANNUAL STATEMENTS— Not required. STANDARD POLICY— District has no standard policy. TAXES — Every stock fire insurance company must pay to the Collector of Taxes a tax of one and one-half per centum on net premium receipts in the District for calendar year, before March i in following year. TAX STATEMENTS — Statements of net amount of premiums received in the District must be filed in January, covering the preceding calendar year; also the payment, except by mutual companies, of one and one-half per- cent on such premiums (before March i), in lieu of all other taxes, except those on real estate. Penalty for non-payment, revocation of license and eight per cent per month. VALUED POLICY— No law. MUNICIPAL TAXES AND FEES. None. FLORIDA. STATE REQUIREMENTS. AGENTS DEFINED — ^A person or firm who receives or receipts for any money on account of or for any contract of insurance made by him or them, or for any such insurance company, association, firm, or individual afore- said, or who receives or receipts for any money from other persons, to be transmitted to any such company, association, firm or individual aforesaid for a policy of insurance or any renewal thereof, although such policy of insurance is not signed by him or them as agent or representative of such company, association, firm, or individual, or who in anywise, directly or indirectly, makes or causes to be made any contract of insurance for or on account of such insurance company, association, firm or individual, shall be deemed to all intents and purposes an agent or representative of such com- pany, association, firm or individual. AGENTS' LICENSES — Companies must procure license for each individual agent, which expires October i. Penalty for failure to pay license fee, a fine of not more than double the amount of tax. ANNUAL STATEMENTS— Must be filed in the month of January. Penalty for making a false statement, a fine of $500 to $5000. ANTI-COINSURANCE — No prohibition of coinsurance clauses. See "Val- ued Policy." ANTI-COMPACT— No provision. ANTI-DISCRIMINATION— No provision. ATTORNEY — Service of legal process upon any agent of the company in the State shall be binding. CANCELLATION OF POLICY— No requirement as to notice to insured. CAPITAL REQUIREEX— Two hundred and fifty thousand dollars of assets invested in United States bonds, or other safe securities. COMMISSIONS TO NON-RESIDENTS— Commissions must be paid to resident agents. Division of commissions with non-resident is ground for revocation of company's and agent's license. DEPOSIT — Each company must deposit $10,000 in cash, or in bonds of the United States, of any State, of the District of Columbia, or of any city or county of Florida ; or in lieu thereof, an approved bond in the amount of $20,000 of a surety company licensed in Florida. Foreign companies must have $250,000 of assets invested in United States or State bonds, or other bankable interest-bearing stock issued in the United States, at their market value. 84 FIRE INSURANCE LAWS, TAXES AND FEES. DOMESTIC COMPANIES— Sec. 2756. "The capital stock of an insurance company incorporated in this State shall not be less than $50,000, to be divided into shares of not less than $10 nor more than $100 each, payable in lawful money of the United States." General requirements are same as for outside companies. EXAMINATIONS— Sec. 2757. "The State Treasurer, Comptroller and Attor- ney-General are hereby created a Board of Insurance Commissioners, whose duty it shall be to examine into the affairs of any insurance company doing business, or applying to do business, in this State." Examinations are at companies' expense. Penalty for refusing to permit examination, revoca- tion of license. FEES— (Sec. 8, Chapter 5597, approved June i, 1907.) Fire insurance com- panies pay license tax of $200 to State Treasurer (licenses expire October I, and the charge for a license issued after April i, and expiring October i, is $100) ; local agent or solicitor's tax, payable to State Treasurer, $5 (counties, cities and towns may tax agents one-half of this amount) ; trav- eling agent or solicitor, payable to State Treasurer, $25 (may also be taxed $5 for each county, city or town in which he does business)-; insurance ad- juster, who has not paid a license as agent or traveling agent, $10 ; for each insurance rate-maker or rate agent, traveling in the State, who makes, fixes or recommends the fixing or adjustment of rates in the State, each insur- ance company represented by him or whose rates are affected by his ser- vices, whether any such company is operating alone or as a member of any association or combination of companies, shall pay a license tax of $25. When licenses are issued after April i, fees are one-half of the amounts named. State Treasurer's Fees (for filing annual statement) — Sec. 2763. "For the services required to be rendered by the provisions of this sub- chapter, the State Treasurer shall receive a fee of $10, to be paid by the companies, associations, firms or individuals, for each statement made and accepted.'' A tax of $2 per $1000 of capital, but in no case to exceed $250, must be paid to the Secretary of State, on filing a certified copy of charter ; also a filing fee of $5 for filing charter, and $2 for amendment thereto. (These fees apply only to companies filing charters or amendments after June I, 1907.) FIRE DEPARTMENT TAX— No provision. FIRE MARSHAL— No provision. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— None re- quired. GENERAL PENALTES. — For violation of any provision of the insurance law, a fine of not over $1000, or imprisonment not exceeding six months, or both ; for failure to satisfy judgment, revocation of license; and company can not again do business until the judgment, fees and expenses are paid ; for doing business after revocation of license, a fine of not less than $1000 ; for transacting business without a license, a fine of not more than double the amount required for such license. FLORIDA. 85 IMPAIRMENT— No provision. INVESTMENTS PRESCRIBED— Each outside company must have $250,000 invested in United States or State bonds, or other bankable interest-bearing stock issued in the United States, at their market values. Domestic com- panies must have $25,000 so invested. LICENSED BROKERS— No provision. LIMIT ON A SINGLE RISK— No provision. LLOYDS — No special provision. MUTUAL COMPANIES— No special provision. PRELIMINARY DOCUMENTS— Company must file with the State Treas urer a copy of its charter and a sworn statement, showing the financial condition of the company. A certified copy of its charter must be filed with the Secretary of State, and a fee of $2 per $1000 of capital be paid to him, plus a filing fee of $5. Charter amendments must also be filed and fees of $2 per $1000 paid on increases of capital. PUBLICATION— Sec. 2762. "The State Treasurer * * * shall annually in the month of February publish, in some newspaper published at the capital, a list of all insurance companies, associations, firms or individuals authorized to do business in this State, showing in tabular form the assets, Uabilities and other essential data and information regarding the state- ment made and accepted." RECIPROCAL LAW— None. REINSURANCE — Law of 1903. Provides, "That no fire insurance company or association authorized to transact business in this State shall reinsure or enter into any contract to indemnify any fire insurance company or asso- ciation not authorized to transact business in this State against loss by fire to property located in this State." REINSURANCE RESERVE— No requirement. RESIDENT AGENTS — Law of 1903, provides that all policies issued against loss by fire to property located in the State by any fire insurance company or association authorized to transact business in the State shall be issued and countersigned by a local agent who is a resident in the State, regu- larly commissioned and licensed to transact a fire insurance business therein, and such local agent shall receive on each policy the full and usual com- mission allowed and paid by such company or association to its agents on business written or done by them. This section does not apply to policies of reinsurance issued to another licensed company, nor to policies of insur- ance on the rolling stock of railroad companies doing a general freight and passenger business. Companies must not request nor permit division of commissions, nor employ an agent who has divided or offered to divide commissions with a non-resident. Penalty for violation, revocation of license for at least one year. Companies are required to file with the State Treasurer yearly, on October i, a list of all their agents and solicitors in the State. SEMI-ANNUAL STATEMENTS— None required. 86 FIRE INSURANCE LAWS, TAXES AND FEES. STANDARD POLICY— None required. TAXES — Fire companies must pay to the State Treasurer on January i a tax of two per cent on gross premiums received from policyholders in the State. TAX STATEMENTS— Must be filed in January. (Included in Annual State- ment.) VALUED POLICY— Chap. 4677, Laws of 1899, Sec. i. "From and after the passage of this act, any individual, firm, corporation or association, insuring any building or structure in this State against loss or damage by fire or lightning, shall cause such building or structure to be examined by an agent of the insurer, and full description thereof to be made, and the insurable value thereof to be fixed by such agent and written in the policy ; in the absence of any change increasing the risk without the consent of the in- surers, in case of total loss the whole amount mentioned in the policy upon which the insurers receive a premium shall be paid, and in case of partial loss, the full amount of the partial loss shall be paid, but in no case shall the insurer be required to pay more than the amount upon which a pre- mium is paid." Chap. 5458, Laws of 1905, Sec. i. "That in the event of a total loss or destruction of any personal property on which the amount of the appraised or agreed loss shall be less than the total amount insured thereon, the insuring company or companies shall return to the insured the unearned premium for the excess of insurance over the appraised or agreed loss, to be paid at the same time and in the same manner as the loss shall be paid, and the said unearned premium shall be a just and legal claim against the said insurance company or companies." COUNTY TAXES AND FEES. ALACHUA— For each company, $2.75 for each agent, payable October i. BRADFORD— For each agent, $2.50, payable October i. BREVARD— For each agent, $2.75, payable October i. CLAY— For each company or agent, $2.75, payable October i. DADE— For each traveling agent, $5, payable October i. DE SOTO — For each company, $5. DUVAI^-For each company or solicitor, $2.75, payable October i. FRANKLIN— For each local agent, $2.75 ; for each traveling agent, $5.25. GADSDEN— For each company, $2.50, payable October i. HILLSBORO— For each agent and each company, $2.75, payable October i. JACKSON— For each company, $2.75, payable October i. JEFFERSON— For each company, $5, payable October i. LAKE— For each agent, $2.75, payable October i. LEE — For each agent, $2.50, payable October i. LEON— For each agent and each company, $2.75, payable October i. MADISON— For each company, $2.75, payable October i. MANATEE— For each agent, $2.75. MARION— For each agent, $2.75, payable October i. MONROE— For each agent, $2.75. payable October i / FLORIDA. 87 NASSAU — For each company, $2.25 ; per agent, $5.25, payable October i. ORANGE — For each company, $5. OSCEOLA — For each company, $2.50, payable October i, POLK — For each company, $5.25, payable October i. PUTNAM — For each agent, $2.75, payable October i ; license for two mem- bers of firm, $5.25. ST. LUCIE — For each agent, $2.75, payable October i. TAYLOR — For each agent, $2.50, payable August i. VOLUSIA — For each company, $2.50, payable October i. MUNICIPAL TAXES AND FEES. APALACHICOLA — For each agent, $2.75, payable October i. ARCADIA — For each company, $2.75, payable October i. BARTOW — For each agent, $2.75, payable October i. BRADENTOWN— For each company, $5.25. BROOKSVILLE— For each agent, $2.75. CLEARWATER — For each agent and each company, $2.75, payable October i. COCOA — For each agent $2.50, payable October i. DAYTONA — For each agent, $10, payable October i. DELAND — For each company, $2.50 for each agent, payable October i. FERNANDINA — For each company, $10.25 ; for each agent, $5.25, payable October i. FORT MYERS— For each agent, $2.50, payable October i. FORT PIERCE— For each agent, $2.75, payable October i. GAINESVILLE — For each company, $2.75 for each agent, payable October i. GREEN COVE SPRINGS— For each agent, $2.75, payable October i. HIGH SPRINGS— For each agent, $2.50, payable October i. JACKSONVILLE— For each company, $75; for each agent, $20, payable October i. JASPER — For each company, $3.25, payable October i. JENSEN— For each company, $2.75. KEY WEST — For each company, $5; for each agent, $5, payable October i. KISSIMMEE — For each company, $2.75, payable October i. LAKE CITY— For each company, $2.65, payable October i. LAKELAND — For each company, $5.25, payable October i. LEESBURG— For each company, $2.75, payable October i. LIVE OAK— For each company, $2.75. MADISON — For each company, $2.75, payable October i. MARIANNA — For each agent for each company represented, $2.50, payable October i. MIAMI — For each company, $2.50, payable October i. MONTICELLO— For each company, $2.75. OCALA— For each company, for each agent, $2.50, payable October i. ORLANDO— For each agent, $2.50; for traveling agent, $5. PALATKA— For each agent, $2.75, payable October i. 88 FIRE INSURANCE LAWS, TAXES AND FEES. PENSACOLA — For each fire company, $50; for each marine company, $25. PERRY — For each company, $10.25, payable August i. PLANT CITY— For each agent, $2.75, payable October i. PUNTA GORDA— For each company, $5, payable October i. QUINCY— For each company, $2.75, payable October i. ST. AUGUSTINE— For each agent, $20, payable October i. ST. LUCIE— For each agent, $2.75. ST. PETERSBURG — For each company, $2.50, payable November i. SANFORD — For each agent and each company, $5, payable October i. STARKE — For each company, $2.50, payable October i. TALLAHASSEE — For each agent and each company, $2.75. TAMPA — For each company, $50; for resident companies, $25, payable Oct. i. TARPON SPRINGS— For each company, $2.50, payable October i. TITUS VILLE — For each company or agent, $2.75, payable October i. WEST PALM BEACH— For each agent, $5.25 (each member of a firm), payable October i. GEORGIA. STATE REQUIREMENTS. AGENTS DEFINED — Sec. 9. "That any person who soUcits in behalf of any insurance company, or agent of the same, incorporated by the laws of this or any other State, or foreign government, or who takes or transmits, other than for himself, any application for insurance, or any policy of insurance to or from such company or agent of the same, or who advertises or other- wise gives notice that he will receive or transmit the same, or who shall receive or deliver a policy of insurance of any such company, or who shall examine, inspect any risk at any time, or receive or collect or transmit any premiums of insurance, or make or forward any diagram of any building or buildings, or do or perform any other act or thing in the making or consummating of any contract of insurance for or with any insurance com- pany other than for himself * * * shall be held to be the agent of the company for which the act is done or the risk is taken." Penalties for acting as agent, witliout a license, a sum equal to the State, county and municipal taxes and licenses required of insurance companies, and per- sonal liability for all contracts made; also punishable as a misdemeanor. AGENTS' LICENSES — Agents must procure licenses, and also certificate that the company is authorized to do business in the State. All licenses to agents expire March i. Applications for licenses must be made by officers of companies, under seal, by March i, annually. ANNUAL STATEMENTS— Must be filed within sixty days from January i. Penalty for non-compliance, forfeiture of license. A certified statement for registration must be filed with the Secretary of State annually before November i, upon form furnished by the Secretary. ANTI-COINSURANCE— (Dodson Law, 1895), Sec. i. "That from and after the passage of this act all insurance companies issuing policies on property in this State shall pay to their policyholders the full amount of loss sus- tained upon the property insured by them; provided, said amount of loss does not exceed the amount of insurance expressed in the policy, and that all stipulations in such policies to the contrary shall be null and void ; pro- vided that in cases of losses on stocks of goods and merchandise and other species of personal property changing in specifics and quantity by the usual customs of trade, only the actual value of the property at the time of loss may be recovered; provided the loss does not exceed the amount ex- pressed in the policy." ANTI-COMPACT LAW (approved October 21, 1891)— Sec. i. "From and after the passage of this act it shall be unlawful for any insurance com- pany or companies, authorized to do business in this State, or the agent or agents thereof, to make, maintain, or enter into any contract, agreement, 90 FIRE INSURANCE LAWS. TAXES AND FEES. pool, or other arrangement with any other insurance company or com- panies, licensed to do business in this State, or the agent or agents thereof, for the purpose thereof, or that may have tendency or effect of preventing or lessening competition in the business of insurance transacted in this State; and when it shall be made to appear to the Commissioner of Insur- ance that any company or companies, agent or agents, have entered into any such contract, agreement, pool, or other arrangement, thereupon said Commissioner shall revoke the license issued to such company or com- panies, and same shall not be reissued until the president or chief officer of such company or companies shall file an affidavit with said Commis- sioner, stating that all such contracts, agreements, pools, or other arrange- ments have been annulled and made void; provided that nothing in this act shall be so construed as to prevent any insurance company, legally authorized to transact business in this State, separately surveying, inspect- ing, or examining premises to be insured, by and with the consent of the owner, for the purpose of bringing about improvements in fire protection, so as to lessen the cost of insurance by reducing rates." Penalty for vio- lation, revocation of license. ANTI-DISCRIMINATION— No provision. ATTORNEY — ^A resident of the State must be appointed to accept service of legal process. Penalty for non-compliance, revocation of license. CANCELLATION OF POLICY— No requirement as to notice to insured. CAPITAL REQUIRED — Company must possess at least $100,000 capital. COMMISSIONS TO NON-RESIDENTS— No provision. DEPOSIT — Sec. 4. "Be it further enacted, that all fire, marine and inland insurance companies chartered by other States or foreign governments shall be required to deposit with the Treasurer of this State bonds of the United States, or bonds of this State, which, according to the acts and resolutions of the general assembly, are valid, or bonds of any county or municipality in this State which have been validated under the laws of this State, and which amount, according to their face value, to $10,000, which bonds shall be receipted for by the State Treasurer, and especially de- posited by him in the vaults of the treasury. * * *" Penalty for fail- ure to make good a reduction of deposit, revocation of license. DOMESTIC COMPANIES— Act 301, Sec. 2. "Any number of persons not less than five may form a company, but before receiving a certificate of incorporation under this act shall file a petition, in writing, addressed to the Secretary of State, in which petition shall be stated the name and residence of each of the persons desiring to form said corporation; the name of the insurance company they desire to have incorporated; the kind or kinds of insurance they propose to carry on; the amount of the proposed capital stock of the company; the number of shares of the capital stock each of the petitioners agrees to take; that they do in good faith intend to go forward without delay to raise the capital stock and organize said company; t request to be incorporated under the laws of this State; GEORGIA. 91 that they have given thirty days' notice of their intention to apply for said charter, by publication of said petition in the newspapers publishing the legal advertisements of the county, where the principal office of said com- pany is to be located, once a week for four weeks before the filing of said petition." Sec. 21. "The preceding sections of this act, in so far as they are applicable, be applied to the formation of mutual or co-operative fire companies, but applicants of this class of insurance shall not be required in their petition to set out the amount of the proposed capital stock or the number of shares of the same." EXAMINATIONS — Sec. 6. "It is the duty of the Insurance Commissioner to make examinations whenever he shall deem it expedient so to do. * * * All expenses to be paid by company." Penalty for refusing to permit examination, revocation of license. FEES — ^For filing certified copy of charter, or certificate of no change or amendments since last report, $20; for examination of annual statement, $20 ; for certificates of authority or license to agents, $3 each. Sec. 2059, which imposed these fees, was in 1909 amended by the addition of the fol- lowing : "Provided, however, that all fire insurance companies doing busi- ness in this State shall in lieu of such fees and charges, pay to the Insur- ance Commissioner one fee of $200, and upon paying such fee and having otherwise fully complied with the provisions of this article, such fire in- surance companies shall be entitled to receive from the Insurance Com- missioner certificates of authority for itself and its agents to transact busi- ness in this State." Fee for assessment company not operating in more than four counties, $25. For certificate of incorporation, domestic com- panies, $iao. Also (Sec. 12) every local insurance agent or firm, doing business in this State, shall pay a tax of $10 for each county in which they shall solicit business, and every traveling, special or general agent shall pay a tax of $50, which said agent must pay before he or they shall be author- ized to act as an agent for any of their companies. (See also Publication and Examinations. ) License fees are payable to the Comptroller-General Fee to Secretary of State for filing certified statement for registration, $1 for first return, and 50 cents for each subsequent annual return. FIRE DEPARTMENT TAX— Governed by reciprocal law. FIRE MARSHAI^No provision. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— None re- quired. IMPAIRMENT— None permitted. INVESTMENTS PRESCRIBED— Capital or minimum assets must be in- vested in bonds or stocks, estimated at their actual market value, or in mortgages on real estate worth double the amount loaned. See "Deposit." LICENSED BROKERS — No provision ; former statute authorizing licensing of brokers to deal with outside companies was repealed. LIMIT ON A SINGLE RISK— No provision. LLOYDS — No special provision. See "Miscellaneous." 92 FIRE INSURANCE LAWS, TAXES AND FEES. MISCELLANEOUS — Sec. i (approved December 14, 1893). "Be it enacted by the general assembly of Georgia, and it is hereby enacted by the author- ity of the same, that all laws and parts of laws regulating the business of insurance in this State by companies be, and the same are, hereby made applicable to individuals, associations and corporations in like business." Penalty for removal, by company, of a suit to a Federal court, without consent of other party to the suit, revocation of license, which shall not be renewed in less than two years. MUTUAL COMPANIES— See "Domestic Companies." PRELIMINARY DOCUMENTS— Company must file with the Insurance Commissioner a certified copy of its charter, or act of incorporation, and a verified statement showing its financial condition on December 31 pre- ceding. Certificate of compliance with laws of company's home State must be filed annually by March i. PUBLICATION — Semi-annual statements must be published in a newspaper of general circulation in the State. (Expense, about $20 in January and $5 in July. RECIPROCAL LAW— Ins. Laws, Sec. 13. "Be it further enacted, that when- ever the existing laws of any other State of the United States shall require of insurance companies chartered by this State, or of the agents thereof, any deposit of securities in such State for the protection of policyholders or otherwise, or any payment or penalties, certificates of authority, license fees or otherwise, greater than the amount required for such purposes from similar companies of other States by the then existing laws of this State, then, and in every such case, all companies of such State, establishing, or having heretofore established, an agency or agencies in this State, shall be, and are hereby, required to make the same deposit, for a like purpose, with the Insurance Commissioner of this State, and to pay to said Com- missioner for penalties, certificates of authority, license fees or otherwise, an amount equal to the amount of such charges imposed by the laws of such State upon companies of this State and the agents thereof." REINSURANCE— No prohibition of reinsurance in unlicensed companies REINSURANCE RESERVE— Fifty per cent of premium on all fire policies having less than one year to run, according to New York percentage table on longer risks, and entire first year's premium on marine and inland risks RESIDENT AGENTS-Act of December 24, 1896, Sec. i (as amended in 1901 ) . "That fire insurance companies not incorporated by the laws of the State of Georgia, but legally authorized to do business in this State through regularly commissioned and licensed agents located in this State, shall not make contracts of fire insurance on property herein save through agents of such companies regularly commissioned and licensed to write policies of insurance in Georgia ; provided, however, that this act shall not apply to property of railroad companies and other common carriers." Signing a blank policy to be filled out outside the State on property within the State is a misdemeanor. Affidavit of compliance required. Penalty for violation, revocation of license for twelve months. GEORGIA. 93 SEMI-ANNUAL STATEMENTS— Must be made to the Governor, accom- panied by a copy of the published statement, within sixty days from January and July i. Synopsis of statement to be printed in paper of general circula- tion. Penalty for non-compliance, revocation of license. STANDARD POLICY— Georgia has no standard policy. TAXES — One per cent upon gross premium receipts less premiums on can- celed policies, payable by July i. No deduction for reinsurance. This does not exempt real or personal property in the State from taxation, and ap- plies to brokers as well as to foreign and domestic companies. Penalty for non-compliance, $500. Tax is payable to State Treasurer. (All insurance companies are now exempt from the tax on capital levied by Sec. 2 of the general tax act passed in 1905.) "Every fire insurance company and life insurance company incorporated under the laws of this State and doing business on the legal reserve plan, shall be required to return for taxation all of its real estate as other real estate is returned, and all of the personal property owned by such company shall be returned as other personal prop- erty is returned for taxation, and the value of the personal property owned by it shall be ascertained in the following manner : From the total value of the assets held by the company both real and personal, shall be deducted the assessed value of all the real estate owned by the company in this State; the non-taxable bonds deposited by the company with the State Treasurer and the amount of the reserve or net value of its poHcies required by law to be held by the company for its policyholders and which belong to such policyholders ; the remainder shall be the value of the personal prop- erty owned by and taxable against such company." "Whenever any insurance company, doing business in this State, shall make it appear by proof satisfactory to the Insurance Commissioner that one-fourth in amount of its total assets are invested in any or all of the following securities or property, to wit: Bonds of this State, or of any county or municipality of this State, property situated in this State and taxable therein, loans secured by Hens on real estate situated in this State * * * then the premium tax levied by the first paragraph of this section shall be abated or reduced to one-half of one per centum upon the gross re- ceipts of such company, and if the amounts so invested by any such com- pany shall be as much as three-fourths of the total assets of such company, then said premium tax shall be abated or reduced to one-tenth of one per- centum upon such gross receipts of such company." TAX STATEMENTS— Must be filed on or before July i for the year ending April 30. VALUED POLICY— See Anti-Coinsurance. COUNTY TAXES AND FEES. Special, general and traveling agents are required to pay $50 to the tax collector of the county of the residence of agent, which gives them the right to do business throughout the State. This tax or fee is in addition to the fee 94 FIRE INSURANCE LAWS, TAXES AND FEES. charged companies under the act of October 24, 1887. "Occupation taxes, which are imposed upon agents, are a personal tax, and are payable, under the present statute, to the tax collector of the counties in which the agents do business." MUNICIPAL TAXES AND FEES. ABBEVILLE — For each agent, $10, payable upon commencing business. ACWORTH — For each agent, $5, payable January i. ADEL — For each agent, $5 per annum, from date of issue. ADRIAN — For each company, $5. ALBANY — For each company writing less than $500 of premiums, $25 ; $500 to $1000, $40; $1000 to $1500, $50; $1500 to $7500 at intetvals, $20, $30, $40. AMERICUS — For each company, $20, payable January lo. ARLINGTON — For each company, $10, payable in September. ASHBURN — For each company, $10 per annum. ATHENS — For each company, $25, and 1% per cent on net premiums, payable April I. ATLANTA — For each company, $50, payable July i ; for each company, one per cent on gross premiums, quarterly, January i, April i, July i and October i. For an insurance broker, $200 per annum. For each agent or member of an agency firm, and for each person who solicits insurance, $10. AUGUSTA— For each company, $100, payable January 15; also a tax of one and one-quarter per cent on gross premiums, payable quarterly, January i, April I, July i and October i. AUSTELL — For each company, $5, payable in January. BAINBRIDGE — For each company, $10, payable May i. BARNES VILLE — For each company, $ii, payable October i. BARTOW — ^For each company, $5, payable January i. BAXLEY — For each company, $5, payable April i. BLAKELY— For each company, $7.50, payable January i. BLUE RIDGE — For each company, $10, payable January i. BOSTON— For each company, $5, payable March i or September i. BRUNSWICK— For each company, $25, payable January i. BUFORD — For each company, $5, payable January i. BUENA VISTA— For each company, $5, payable January i. CAIRO— For each company or agent, $5, payable October i. CALHOUN — For each company, $5. CAMILLA — For each company, $10, payable January i CARLTON— For each agent, $10. CARROLLTON— For each company, $10 per annum, prorated quarterly. CARTERSVILLE— For each company (each agent), $10, payable Feb- ruary 15. CEDARTOWN— For each company, $10, payable on beginning business. COCHRAN— For each company, $10, payable September i. GEORGIA. 95 COLUMBUS — For each company, $50, payable by February i ; also 3 per cent on gross premiums, payable quarterly, in January, April, July and October, or annually in January. For each broker or firm, for each company in which he (or it) undertakes to place insurance out of the State, on property within the State, $75. For transient insurance solicitor, $75. COLQUITT — For each company, $5, payable January i. COMMERCE^For each company, $10 ; for each agent, $10 ; payable Septem- ber I. CONYERS— For each company, $5.25, payable January 15. CORDELE — For each company, $10, payable March i. COVINGTON— For each company, $10. CRAWFORDSVILLE— For each company, $2.50, payable September i. CUTHBERT — For each company, $16, payable January i. DALTON — For each company, $15. DARIEN^For each company, $15, payable January i. DAWSON— For each company, $11, payable January 15. DOUGLAS— For each company, $3, payable March i. DUBLIN— For each company, $10, payable January i. EASTMAN — For each company, $10. EATONTON— For each company, $10, payable September i. EDISON— For each company, $10, payable January i. ELBERTON— For each company, $10, payable February i. FAYETTEVLLE— For each agent, $5, payable August i. FORT GAINES— For each company, $11, payable May i. FORT VALLEY— For each company, $10; for each agent, $10, payable April I. FORSYTH— For each company, $5, payable January i. GAINESVILLE— For each company, $10.50, payable January i. GRANTVILLE— For each company, $2.50, payable January i. GREENSBORO— For each company, $2.50, payable January i. GRIFFIN— For each company (for any number of canvassers), $10; for each agent, $5, payable January i. HAMPTON— For each agent, $10, payable on beginning business. HARMONY GROVE— For each company, $5. HARTWELL— For each company, $5, payable April 30. HAWKINSVILLE— For each company, $10, payable on commencing business. HAZLEHURST— For each company or agent, $5, payable January i. HOGANSVILLE— For each company, $10, payable February i. JACKSON— For each company, $10 ; for each agent, $5. JEFFERSON— For each company, $5, payable January i. JESUP— For each company, $10 per annum, payable annually May i. JONESBORO— For each company, $10 ; for each agent, $5, payable January i. LA GRANGE— For each company, $10, payable January i. LAWRENCEVILLE— For each company or agent $10, payable January i. LITHONIA — For each company, $10. 96 FIRE INSURANCE LAWS, TAXES AND FEES. LOUISVILLE — For each company, $5, payable September i. LUMPKIN — For each company, $5, payable January i. MACON — For each company, $50, payable in January; also one and one- quarter per cent tax on gross premiums, payable quarterly, January i, April I, July i and October i. MADISON — For each company, $10. MARIETTA — For each company, $10, payable February i. MARSHALL VILLE — For each company, $5, payable January i. Mcdonough — For each company, $5, payable April i. McRAE — For each company, $5, payable January i. MEIGS — For each company, $5, payable February i. MILLEDGEVILLE — For each company, $10, payable January i ; also two and one-half per cent on premiums, payable monthly on first of month. MILLEN — For each company, $5, payable February i. MOLENA — For each company, $5, payable February i. MONROE — For each agent, $11, payable when issued. MONTEZUMA — For each agent, $10, payable January i. MONTICELLO — For each company, $10, payable February 10. MORGAN — For each agent, $10. MORGAN CITY — For each company, $5, payable January i. MOULTRIE— For each company, $15. NASHVILLE — For each company or agent, $5, payable January i. NEWNAN — For each company, $10 per annum. OCILLA — For each company, $5 ; for each non-resident agent, $10 ; payable February i (sixty per cent for six months.) OGLETHORPE— For each company, $5. PALMETTO — For each company, $5, payable March i. PAVO — For each company, $5. PELHAM— For each agent, $5. PERRY — For each company, $2.50, payable June i. QUITMAN — For each company, $10, payable August i. REYNOLDS— For each company, $10. RICHLAND — For each company, $5, payable January i. ROME — For each company, $25, payable April i to March 31. ROYSTON — For each company, $5, payable January i. RUTLEDGE — For each company, $5. SANDERSVILLE — For each company, $10.25, payable January i. SAVANNAH— For each fire company or for each agent or broker thereof, $200; for each marine company or for each agent or broker thereof, $100. An agent or broker must pay $200 for each company which he represents or to which he sends business, unless the tax is paid by the company itself. This includes brokers operating under the State law of December 24, 1894, authorizing them to deal with unlicensed companies. Every average or insurance adjuster for companies for which he is not the local insurance agent, $50. GEORGIA. »7 SENOIA — For each company, $5, payable February 15. SHELLMAN — For each company, $10. SOCIAL CIRCLE — For each company, $5, payable January i. SPARKS — For each company, $5, payable January i. SPARTA — For each company, $5, payable January i. STATESBORO — For each company, $5, payable December i. SYLVESTER — For each company, $10, payable January i. TALBOTTON — For each company, $2.50, payable January i. TENNILLE — For each company, $5, payable February i. THOM ASTON — For each company, $11, payable May i. THOMASVILLE— For each company, $25, payable March i. THOMSON — For each company, $15, payable March i. TIFTON — For each company, $10: for each agent, $10, payable February i. TOCCOA — For each company, $5.75, payable May 15. UNADILLA — For each company, $5 (for as many agents as desired). UNION POINT— For each company, $5. VALDOSTA — For each company, $25, payable June i. VILLA RICA — For each agent, $5, payable February i. WARRENTON — For each company, $10, payable March i. WAYCROSS — For each company, $15, payable January 15. WAYNESBORO — For each company, $10, payable October i. WEST POINT— For each company for each agent, $10. WINDER — For each company, $5, payable not later than July i. WRIGHTSVILLE— For each agent, $10. HAWAII. AGENTS DEFINED — Any person who negotiates for or places risks for any insurance company or in any way or manner aids in effecting insurance, is construed as being an agent for such company. AGENTS' LICENSES — Agents must procure licenses, which expire on the fifteenth day of April thereafter. Licenses renewed on presentation of previous year's license. Penalty for soliciting insurance without a license, a fine of $500 for the first offense, and an additional fine of $100 for each month during which such offense shall continue. Corporation or firm may act as agent. ANNUAL STATEMENTS— Must be filed on or before the fifteenth day of April, showing the total business done in the Territory during the year ending December 31, next preceding, also a statement showing the com- pany's condition as of December 31. ANTI-COINSURANCE— No prohibition of coinsurance clauses. ANTI-COMPACT— No provision. ANTI-DISCRIMINATION— No provision. ATTORNEY — A resident of the Territory must be authorized to accept service of process, and in event of his disqualification, service may be had upon the Insurance Commissioner. CANCELLATION OF POLICY— No provision. CAPITAL REQUIRED — Company must possess a paid-up and unimpaired capital or net surplus of not less than $100,000. COMMISSIONS TO NON-RESIDENTS— No provision. DEPOSIT— No provision. DOMESTIC COMPANIES— Chap. 159, Rev. Laws, Sec. 2612. "Any com- pany or corporation organized under the law of this Territory prior to October i, 1903, or under the provisions of this chapter for the purpose of engaging in insurance, must have a subscribed capital of not less than $100,000, of which $50,000 must be paid in in cash before the issuance by such organization of any policy of insurance under the provisions of this chapter." EXAMINATIONS— Chap. 159, Rev. Laws, Sec. 2616, provides for the Insur- ance Commissioner to make a detailed examination of all companies or cor- porations organized under the laws of Hawaii, at least once a year. (See "Miscellaneous.") FEES— Chap. 159, Rev. Laws, Sec. 2620. "The Commissioner shall require payment in advance of the following fees : For filing articles of incorpora- tion or certified copies of articles, by-laws, or other certificates required, $25 ; for issuing certificate of authority, or renewal thereof, $10 ; for filing annual statement of condition, $10; for filing statement of business in Territory, $10 ; for filing any other paper, $1 ; for furnishing copies of papers filed', per folio, 25 cents ; for certifying copies, $1 ; agents' licenses for each com- HAWAII. 99 pany represented, $2. All moneys collected under this chapter shall be paid into the treasury of the Territory as a government realization." FIRE DEPARTMENT TAX— No provision. FIRE MARSHAL— No provision. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Sec. 2619. "Every organization foreign to this territory, its agents and officers, shall always be required to make the same statements and answer the same in- quiries to the Insurance Commissioner and in case of default be subject to the same penalties and liabilities as domestic organizations doing the same kind of business, or any of the agents or officers thereof, are, or may be liable to, under the laws of this territory or the regulations of the In- surance Department." GENERAL PENALTIES— Violation of any of the sections of the insurance laws may result in revocation of license. After revocation, license shall not be renewed until penalty of $500 is paid. IMPAIRMENT— Chap. 159, Rev. Laws, Sec. 2616. "* * * If upon such examination, he (the Insurance Commissioner) shall find that the capital stock of such company or corporation is impaired, he shall order such im- pairment made good, or the capital reduced the amount of such impair- ment." Failure to make good or reduce the capital stock may result in revocation of license, and an application may be made by the Commis- sioner to any judge of a court to issue an order upon said company or cor- poration to show cause why its charter should not be revoked and a receiver appointed to wind up its affairs. During the time that its capital is im- paired 25 per cent or more, or is less than $100,000, a company shall cease writing insurance. See "Miscellaneous." INVESTMENTS PRESCRIBED— Capital and other funds must be invested in securities satisfactory to the Territorial Treasurer, who is ex-officio In- surance Commissioner. LICENSED BROKERS— Sec. 2609A. "Every person, firm or corporation who in this Territory procures, agrees to procure cr assist in procuring insurance for a person, firm or corporation of this Territory, or for a for- eign corporation doing business in this Territory, from any insurance com- pany, corporation or association not licensed to do business within this Territory, shall be guilty of a misdemeanor, and, upon conviction, be pun- ished by a fine not to exceed five hundred dollars for each offense ; pro- vided, however, that the Insurance Commissioner may issue a license to any person residing in this Territory, subject to revocation at any time, permitting the person named therein to procure policies of insurance on risks located in this Territory in insurance companies not authorized to transact business in this Territory, and for such license the Insurance Com- missioner shall collect for the Territory an annual fee of $25. Said license shall be valid until the fifteenth day of April of each year. Before the person named in such license shall procure any insurance in such com- panies on any such property, he shall in every case execute and file with 100 FIRE INSURANCE LAWS, TAXES AND FEES. the Insurance Commissioner an affidavit that he is unable to procure for a specified person, firm or corporation in a majority of the companies authorized to do business in the Territory the amount of insurance neces- sary to protect said property. * * *" Such broker must execute a bond for $2000 to secure faithful compliance with the law; must file on or before June i, annually, a complete report of business transacted in the preceding calendar year, and pay a tax of four per cent on gross less return premiums, to the Insurance Commissioner. A fine of $200 is the penalty for each refusal to disclose the true amount of premiums on insurance placed under th'.s law. LIMIT ON A SINGLE RISK— No provision. LLOYDS — No provision. MISCELLANEOUS — Sec. 2617. Provides that if the Insurance Commissioner has reason to believe that any insurance company or corporation organized outside of Hawaii has less than the paid-up unimpaired cash capital or net surplus required by law, he shall make such investigation or require such proof as shall be satisfactory to him concerning the financial condition of such organization. If such organization does not, within sixty days after demand, produce such proofs, and the certificate of the insurance officer of any State having an Insurance Department, that such organization has the required capital and surplus shall be accepted as satisfactory, the Commis- sioner shall revoke its license, and if any agent of such insurance corpora- tion shall solicit and agree to issue and deliver or shall issue or deliver any policy of the delinquent organization covering property in Hawaii, he shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be subject to a fine of $10 for the first and $50 for each subsequent offense. Chap. 159, Rev. Laws, Sec. 2622. "In the event of the total destruction of any insured building, on which the amount of the appraised or agreed loss shall be less than the total amount issued thereon, the fire insurance com- pany or companies shall return to the insured the unearned premiums on the policies involved in the loss for the excess of insurance over the appraised or agreed loss, to be paid at the same time and in the same manner as the loss shall be paid." MUTUAL COMPANIES— No special provision. PRELIMINARY DOCUMENTS— Copy of articles of incorporation and cer- tificate of the insurance official of its home State or country, stating the company's financial condition, and that it is authorized to operate in such State or country. No repetition of latter required, except in case of change in charter, capital stock or deposit. Penalty for soliciting insurance with- out having complied with the above requirements, a fine of not less than $100, nor more than $500. Power of attorney need be filed but once PUBLICATION— None required. RECIPROCAL LAW— None. REINSURANCE — No credit is allowed, in computing taxes on premiums, for reinsurance in unauthorized companies, nor for reinsurance in autliorized companies unless placed through or with local agents. HAWAII. REINSURANCE RESERVE— Fifty per cent on the amount premiums on all unexpired risks and policies. RESIDENT AGENTS— Chap. 159, Rev. Laws, Sec. 2610. "No insurance company or corporation licensed to do business in this Territory shall ac- cept any application for insurance, nor shall it write, issue or deliver any policy of insurance covering a risk located within this Territory except through a duly appointed agent of such insurance company or corporation, who is a bona fide resident, firm or corporation of this Territory, resident herein, and licensed as agent of such insurance company or corporation by the Commissioner to write and solicit insurance for such insurance com- pany, corporation or association." This section does not apply to the ac- ceptance of or the effecting of reinsurance. Penalty for violation, revoca- tion of license, which shall not be renewed until such organization has paid into the Treasury of the Territory the sum of $500 as a license fee. SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— No requirement. TAXES — Sec. 2621, Rev. Laws. "* * * * ^jj such insurance companies or corporations, except life insurance companies, shall pay to the Treas- urer, through the Insurance Commissioner, a tax of two per cent, on the gross premiums received from all risks located in, and from all business done within this Territory, during the year ending on the preceding 31st day of December, less return premiums, reinsurance in companies or cor- porations authorized to do business in this Territory when such reinsur- ance is placed through or with local agents ; * * * which taxes, when paid, shall be in settlement of all demands of any taxes or licenses or fees of every character imposed by the laws of the Territory, excepting property taxes, and the fees set forth in Sec. 2620, for conducting said business of insurance in said Territory." Taxes are due July i ; and any organization failing or refusing to render statement or pay tax for more than 30 days after the specified time, shall be liable to a penalty of $25 for each day of delinquency, and its license shall be revoked until such taxes and fine, if fine is imposed, are paid. TAX STATEMENTS— Must be filed on or before June i. VALUED POLICY— No provision. See "Miscellaneous." IDAHO. 5TATE REQUIREMENTS. AGENTS DEFINED— Law, March 14, 191 1, Sec. 36. "Any person who for compensation, or otherwise, solicits insurance on behalf of any company receiving applications for insurance of any kind whatsoever, or trans- mitting for a person other than himself an application for a policy of in- surance to or from such company, or offers or assumes to act in the nego- tiation of such insurance, or in any manner aids in the transaction of the business of an insurance company incorporated in this State or out of it shall be deemed an agent within the intents and purposes of this act." AGENTS' LICENSES — Each agent is required to obtain a license. All licenses expire annually March 31. Penalty for acting as agent without certificate of authority, fine not exceeding $100, or imprisonment not exceeding six months, or both. Companies must apply for licenses. ANNUAL STATEMENTS— Must be filed with Insurance Commissioner on or before March i. Mutual companies' statements must be filed by February i. ANTI-COINSURANCE — No prohibition of coinsurance clauses. ANTI-COMPACT— No provision. ANTI-DISCRIMINATION— Law of March 14, 191 1, Sec. 38, provides that no insurance company, its agents or sub-agents, or any other person, shall offer to pay or allow any rebate of premium payable on a policy. And, furthermore, no person shall receive any rebate on a policy. Penalty for violation, fine of not more than $200, or imprisonment for six months, or both. ATTORNEY — Law of March 14, 191 1, provides that the Insurance Commis- sioner must be appointed to accept service of legal process. In addition, a resident of the county of the State of Idaho in which company's principal place of business is located must be appointed attorney, and designations must be filed with the Clerk of the District Court in such county, with the Secretary of State and with the Insurance Commissioner. CANCELLATION OF POLICY— No requirement as to notice to insured. CAPITAL REQUIRED — Domestic company, $100,000 capital paid up ; for- eign company, $200,000 capital paid up (or $50,000 surplus, if a foreign mutual company). COMMISSIONS TO NON-RESIDENTS— Commissions must be received by resident agents. DEPOSIT— No requirement, except that foreign companies are required to have $200,000 on deposit in one of the United States. (See "Investments Prescribed.") DOMESTIC COMPANIES— Any number of persons may form an insur- ance company. They shall file a copy of the articles of incorporation with IDAHO. 103 the Insurance Commissioner, who shall commission the person named therein to open books for the subscription of stock, if found to be in accord- ance with law. After the capital has been paid in, the Insurance Commis- sioner shall examine the company, and if all legal requirements have been met, shall issue a license to commence business. The name of such com- pany must not be the same as another corporation transacting the same class of business in the State, or so nearly alike as to be calculated to deceive. EXAMINATIONS — The Commissioner of Insurance is authorized to examine a domestic or foreign company as often as he deems it expedient, at least once in five years ; but he may accept the certificate of the Insurance Com- missioner of any State who has recently examined the affairs of any for- eign company as evidence of the condition of the company. Cost of exam- ination to be paid by the company examined. License of company in unsound condition must be revoked. FEES — To Insurance Commissioner: For annual Hcense, $50; for filing annual statement, $50 (domestic mutual company, $10) ; for agents' cer- tificates (transferable), $3 each; for filing certified copies of articles of incorporation, $10; for examinations, all reasonable expenses; for filing designation of agent for service of process, $2; for each copy of cer- tificate of authority, agent or solicitor, $2 ; for affixing seal of office and certifying any paper, $1 ; for each copy of any paper on file 20 cents a folio. Fee to Secretary of State for filing copy of articles of incorpora- tion, same as required for filing original articles of incorporation ; for filing designation of attorney, $2 ; for certificate of incorporation, $3. County Recorder's fees for filing and indexing articles of incorporation, 20 cents per folio; filing designation of attorney and articles of incorporation, $1. FIRE DEPARTMENT TAX— No requirement. FIRE MARSHAI^No provision. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— None re- quired. IMPAIRMENT — Law of March 14, 191 1, Sec. 62. "Any insurance company transacting business within this State whose capital stock shall become impaired to the extent of twenty-five per cent thereof shall make good such impairment within sixty days by either an assessment upon the stock- holders or the reduction of its capital stock; provided that such capital stock shall in no case be less than $100,000. * * *" INVESTMENTS PRESCRIBED— Capital (or surplus of a mutual company) of a company organized outside of the State must be invested in bonds of the United States, or of Idaho, or in interest-paying bonds, when they are at or above par, of the State in which the company is located, or some other State, or in county, municipal or school district bonds in either or both of said States, or in notes or bonds secured by mortgages on unin- cumbered real estate in Idaho or the State in which the company is located. 104 FIRE INSURANCE LAWS, TAXES AND FEES. worth double the amount loaned thereon, such interest-bearing bonds, notes and bonds secured by mortgages to be worth in the aggregate $100,000. No real estate may be owned, except for the accommodation of its busi- ness, and such as is taken in payment of or as security for loans or debts, and the latter must be sold within five years. Time may be extended by the Insurance Commissioner. Loans may be made upon real or personal property, and investments ma>' be made in stocks, bonds or other securi- ties, but no loan may be made on stock of the corporation. LICENSED BROKERS— No provision. LIMIT ON A SINGLE RISK— Ten per centum of paid-up capital and sur- plus (net). For mutual companies, $1000, until $300,000 of insurance in force; $2000, when $300,000 to $1,000,000 of insurance in force; $3000, when $1,000,000 to $2,000,000 of insurance in force; no limit, when $2,000,000 or more of insurance in force, but no real property shall be insured for more than 75 per cent of its value. LLOYDS— Law of March 14, 191 1. "The making of contracts between indi- viduals, firms, or corporations of this State, or between such individuals, firms, or corporations of other States having no capital stock, providing indemnity among each other from casualty or other contingency, or from fire loss or other damage to their own property, shall not constitute the business of insurance and shall not be subject to the laws of this State relating to insurance. However, the attorney, agent, or other representa- tive acting for such individuals, firms or corporations, shall file with the Insurance Commissioner of this State a declaration in writing, verified by the oath of such attorney, agent or other representative, setting forth : (a) The name or title of the office through which such individuals, firms or corporations exchange such contracts, (b) A copy of the form of con- tract under or by which such indemnity is to be effected, (c) The location of the office or offices through which such contracts are to be issued, (d) That service of process may be had upon the Insurance Commissioner in this State in all suits arising out of such contracts. It is further provided that every attorney, agent, or other representative by or through whom are issued or negotiated any contracts for indemnity of the character referred to in this act, shall procure from the Insurance Commissioner annually a certificate of authority stating that all the requirements of this act which are applicable have been complied with, and, upon such compliance and the payment of a fee of $3 the Insurance Commissioner shall issue such certificate." MUTUAL COMPANIES— Law of March 14, 191 1, Sec. 68. "Twenty-five or more persons, citizens of this State may form a corporation to carry on the business of fire insurance on the mutual plan ; but no such corporation shall begin to do business until a guaranty fund of at least $25,000 has been pro- vided and deposited in cash or in such securities as are permitted by law in case of stock companies, with the Commissioner of Insurance, under the conditions named in this act, the same to be held as security for the pay- IDAHO. 105 ment of all losses and other policy liabilities of such companies. * * *" For- eign mutual fire insurance companies must possess assets of not less than $200,000, of which not less than $50,000 shall be net surplus. Foreign mutual fire insurance companies pay the same fees required of all other joint stock insurance companies doing business in Idaho. PRELIMINARY DOCUMENTS— Company must file with the Insurance Commissioner certified copy of by-laws and amendments, names and resi- dences of officers and directors, power of attorney to Insurance Commis- sioner, and a certified copy of its articles of incorporation. Insurance Com- missioner shall examine a company applying for admission, or may accept a certificate from the Insurance Commissioner of any State who has re- cently examined the company. Sec. 2792, Rev. Code of Idaho, which is stated to have not been repealed, provides that, in addition to the above-mentioned preliminary requirements, every corporation, before doing business in Idaho, is re- quired to file with the Secretary of State and the County Recorder of the County in the State in which is located the principal place of business of the corporation in Idaho, a copy of articles of incorporation duly certi- fied by the Secretary of State of the State where such corporation was organized. PUBLICATION— No requirement. RECIPROCAL LAW— None. REINSURANCE — Company may reinsure the whole or any part of any policy obligation in any solvent and responsible insurance company, but list must be furnished Insurance Commissioner giving name of company and amount reinsured. REINSURANCE RESERVE— Fifty per cent of the premiums on risks that have less than one year to run, and pro rata on risks that have more than one year to run. RESIDENT AGENTS— Law of March 14, 191 1, Sec. 31. "No foreign fire *" * * insurance company doing business in this State shall make, write, place, or cause to be made written, or placed any policy * * * or contract of insurance of any kind or character, or any general or float- ing policy upon * * * property * * * situated or located in this State, except after the said risk has been approved, in writing, by an agent who is resident of this State, legally commissioned and licensed to trans- act insurance business herein, who shall countersign all policies so issued and receive the commission when the premium is paid, to the end that the State may receive the tax required by law to be paid on the premium col- lected for insurance on all property located within this State." Penalty for violation, fine of $500, recoverable in an action at law, and any company neglecting or refusing to pay judgment shall have its certificate of author- ity revoked for at least one year. SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— None required. 106 FIRE INSURANCE LAWS, TAXES AND FEES. TAXES — Two per centum on premiums collected, less return premiums and cancellations, payable by April 15. Reinsuring companies authorized to transact business in the State may take credit for premiums received on account of reinsurance from authorized companies. Such premiums are to be reported by, and taxes paid thereon, by the parent company. This is in lieu of all taxes on personal property of company, and the shares of stock or assets therein, except taxes on real property. Tax is payable to the Insurance Commissioner. TAX STATEMENTS— Must be filed on or before March 15. Penalty for failure to make statement or pay tax for more than thirty days, $100 for each additional day, and revocation of license until payment of taxes and fine. VALUED POLICY — In the event of the destruction of any insured property on which the amount of the appraised or agreed loss shall be less than the total amount insured thereon, the company must return to the insured the premium for the extra insurance over the appraised or agreed loss, to be paid at the same time and in the same manner as the loss is paid. COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. REXBURG — For each agent, $16, payable quarterly. ILLINOIS. STATE REQUIREMENTS. AGENTS DEFINED — Sec. i g. "The term agent, or agents, under this section, shall include any acknowledged agent, surveyor or broker, or any person or persons who shall in any manner aid in transacting the business of any insurance company not incorporated by the laws of one of the United States." AGENTS' LICENSES — Agents must procure certificates of authority which expire annually January 31. Each firm or agency corporation is licensed as an individual, but when representing companies of other States the licensing is governed by reciprocal law. Penalty for placing business through an unauthorized agent, revocation of license for at least ninety days. ANNUAL STATEMENTS— Must be filed on or before January 31. Penalty for failure to make and file statement of investment, $500, and $500 addi- tional for each month company continues to do business in this State; for failure to file annual statement, $500 and $500 per month, as above. Pen- alty for making false statement, revocation of license. Penalty for adver- tising false statement, $500. ANTI-COINSURANCE— No restriction. ANTI-COMPACT — An anti-trust law is in effect in Illinois, which is held by the Secretary of State to apply to insurance companies. (A portion of this law, permitting organizations for the maintenance or increase of wages, was declared unconstitutional by the Supreme Court of Illinois, but the remainder of the law is in force). ANTI-DISCRIMINATION— No provision. ATTORNEY — A resident of the State must be appointed to accept service of legal process, and during any vacancy, service may be made upon the Insurance Superintendent. CANCELLATION OF POLICY— No requirement as to notice to insured. CAPITAL REQUIRED — Stock companies, $100,000 paid up. Companies which are neither joint stock nor purely mutual must have a cash surplus of $200,000. COMMISSIONS TO NON-RESIDENTS— No provision. DEPOSIT— Foreign companies are required to have $200,000 in Illinois, or in some other State, invested in stocks of the United States, or of the State of Illinois, in all cases to be equal to a stock producing six per cent per annum, or in bonds and mortgages of improved, unencumbered real estate in the State of Illinois, worth fifty per cent more than the amount loaned thereon. DOMESTIC COMPANIES— Thirteen or more persons may incorporate, by filing with the Superintendent a declaration containing a copy of the pro- 108 FIRE INSURANCE LAWS, TAXES AND FEES, posed charter. The latter must be examined and approved, and then an examination made as to bona fide payment of capital. Notice of intention to incorporate must be published once a week for at least four weeks in a newspaper in the county in which the company is to be located. EXAMINATIONS— Sec. 23, Laws of 1899. "It shall be the duty of the Insur- ance Superintendent, whenever he shall deem it expedient so to do in person, or by one or more persons, to be appointed by him for that pur- pose, not officers or agents of, or in any manner interested in, any insurance company doing business m this State, except as policyholders, to examine into the affairs of any insurance company incorporated in this State, or doing business by its agents in this State; and it shall be the duty of the officers or the agents of any such company doing business in this State to cause their books to be opened for the inspection of the Insurance Super- intendent, or the person or persons so appointed, and otherwise to facilitate such examinations so far as it may be in their power to do, and to pay all reasonable expenses incurred therein, and for that purpose the said Insur- ance Superintendent, or person or persons so appointed by him, shall have the power to examine, under oath, the officers and agents of any company relative to the business of said company, and whenever said Insurance Superintendent shall deem it for the best interest of the public so to do, he shall publish the result of said investigation in one or more papers in this State." Penalty for refusing to permit examination, or to answer Superintendent's inquiries, revocation of license. FEES — Sec. 27. "There shall be paid by every company, association, person or persons, or agent, to whom this act shall apply, the following fees: For filing the declaration or the certified copy of a charter herein required, the sum of $30; for filing the annual statement required, $10; for each certifi- cate of authority to agents of companies or associations not incorporated under the laws of this State, $2 (or more by action of reciprocal law) ; for each certificate of authority to agents of companies incorporated under the laws of this State, fifty cents; for every copy of paper filed in his office, the sum of twenty cents per folio, and for affixing the seal of said office to such copy and certifying the same, $1. And in case two or more companies shall combine and effect insurance under a joint policy, each and every company shall pay the fees provided herein, the same as if each company wrote separate and distinct policies." Fees payable to Insurance Commissioner. See "Reciprocal Law." FIRE DEPARTMENT TAX-Act of July i, 1895, as amended in 1901 and 1905. Sec. I. "All corporations, companies and associations not incor- porated under the laws of this State, and which are engaged in any city, town or village organized under any general or special law of this State in effecting fire insurance shall pay to the treasurer of the city, town or village for maintenance, use and benefit of the fire department thereof, a sum not exceeding two per cent of the gross receipts received by their ILLINOIS. 109 agency in such city, town or village. * * * Cities, towns and villages are hereby empowered to prescribe by ordinances the amount of tax or license fee to be fixed, not in excess of the above rate, and at the rate such corporations, companies and associations shall pay, upon the amount of all premiums, which during the year ending on every first day of July, shall have been received for any insurance effected or agreed to be effected m the city, town or village, by or with such corporation, companies or asso- ciations, respectively. Every person who shall act in any city, town or village as agent or otherwise for or on behalf of any such corporation, company or association, shall, on or before the 15th day of July of each and every year, render to the city, town or village clerk, a full, true and just account, verified by his oath, of all the premiums which during the year ending on every first day of July preceding such report, shall have been received by him or any other person for him in behalf of any such corporation, company or association; and shall specify in said report the amounts received for fire insurance. Such agent shall also pay to the treasurer of any such city, town or village at the time of rendering the aforesaid report, the amount of rates fixed by the ordinances of the said cities, towns or villages for which the companies, corporations or associa- tions represented by them are severally chargeable by virtue of this act, and the ordinance passed in pursuance thereof. If such account be not ren- dered on or before the day herein designated for that purpose, or if the said rates shall remain unpaid after that day, it shall be unlawful for any corporation, company or association so in default to transact any business of insurance in any such city, town or village until the said requisitions shall have been fully complied with ; but this provision shall not relieve any company, corporation or association from the payment of any risk that may be taken in violation hereof." Penalty for failure to make accounting and pay tax, a fine of $100, or imprisonment for six months, or both. FIRE MARSHAL — There is a State Fire Marshal, whose duty it is to investi- gate fires. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— "Foreign insurance companies shall be required to make and file their annual state- ments and evidences on the first day of January in each year, or within thirty days thereafter, made out for the year ending on the preceding 30th of September. The supplementary annual statements of their business and affairs in the United States, duly verified by the resident manager of such company, shall be filed in the month of January of each year, made out for the year ending the 31st day of December immediately preceding. As amended by act approved June 6, 1889, in force July i, 1889." Home office statements are not required to be filed unless the company desires to advertise the same. GENERAL PENALTIES— For transferring a cause to the United States Court, revocation of license, which can not be renewed for at least three years. For any violation of the insurance law not specifically provided for, $500 for each offense. 110 FIRE INSURANCE LAWS. TAXES AND FEES. IMPAIRMENT — Sec. 23 a, Laws of 1899. "And whenever it shall appear * * * from such examination that the assets of any company incorporated in this State are insufficient to justify the continuance in business of any such company, he may direct the officers thereof to. require the stockholders (or if a mutual company, the members thereof) to pay in the amount of such deficiency within such periods as he may designate, in such requisition ; or he may apply to the Circuit Court of the county in which the principal office of said company shall be located, for an order requiring them to show cause why the business of such company shall not be closed, and the court shall thereupon proceed to hear the allegations and proofs of the respect- ive parties. * * *" Sec. 236. "And whenever it shall appear to the said Insurance Superintendent, from the report of the person or persons appointed by him, that the affairs of any company not incorporated by the laws of this State, are in an unsound condition, he shall revoke the certifi- cates granted in behalf of such company, and shall cause a notification thereof to be published in a newspaper of general circulation published in the city of Springfield, and mail a copy thereof to each agent of the com- pany; and the agent or agents of such company, after such notice, shall be required to discontinue the issuing of any new policy and the renewal of any previously issued." Sec. 2.6 b, Laws of 1899. "When- ever it shall appear to the Insurance Superintendent, from an examina- tion made by him in the manner prescribed by law, that the capital stock of any joint stock company, organized pursuant to law, is impaired to an amount exceeding twenty-five per cent of such capital, and he shall be of the opinion that the interest of the public will not be prejudiced by permitting such company to continue business with a reduced capital, it shall be lawful for such company, with the permission of the said Insurance Superintendent, to reduce its capital stock and the par value of the shares thereof, to such amount as the Insurance Superintendent may under his hand and official seal certify to be proper, and he, as shall in his opinion, be justified by the assets and property of such company; provided, that no part of such assets and property shall be distributed to the stock- holders. * * * " Sec. 124. Foreign Companies. "And no agent shall be allowed to transact business for any such company, association or part- nership whose capital, deposited as aforesaid, is impaired to the extent of twenty per cent thereof, while such deficiency shall continue * * * " INVESTMENTS PRESCRIBED-Sec. 8, Act of March 11, 1869, amended June 19, 1891, and further amended in February, 1909. "That on and after July i, 1909, any fire insurance company organized under this act or incorporated under any law of this State, for the purpose of investing its capital, surplus and other funds, or any part thereof, may purchase and hold as collateral security or otherwise, and sell and convey any bonds or public stock issued or created by the United States or by this State, or by any of the other States of the United States, or the District of Columbia, or any or either of them, or by any of the incorporated cities, counties' ILLINOIS. Ill townships or other municipal corporations thereof, or, bonds authorized to be issued by any commission appointed by the Supreme Court of this State, or invest its said capital and surplus and other funds, or any part thereof, in bonds or notes secured by mortgages or trust deed on unin- cumbered real estate located within said States, or the District of Colum- bia, or either of them, worth at least double the sum invested or loaned; or lend on or purchase mortgage bonds of railroad companies organized under the laws of said States, or the District of Columbia, or either of them, or operated therein; or the capital stock, bonds, securities or evi- dences of indebtedness created by any corporation or corporations or- ganized under the laws of the United States, or of this or of any State, except the stock of mining companies and the stock of manufacturing com- panies, commonly known as "industrials:" Provided, that no loan shall be made or retained on any of the above-mentioned securities except the bonds or stocks issued or created by the United States, or of this State, exceeding ninety per centum of the market value thereof: And, pro- vided, further, that no loans shall be made by any company on its own stock. No investment or loan shall be made by any such insurance com- pany unless the same shall first have been authorized by the board of di- rectors, or by a committee thereof, charged with the duty of supervising such lots. No such company shall subscribe to or participate in any un- derwriting of the purchase or sale of securities or property, or enter into any transaction for such purchase or sale on account of said company jointly with any other person, firm or corporation, nor shall any such com- pany enter into any agreement to withhold from sale any of its property, but the disposition of its property shall be at all times within the control of the board of directors. This act shall apply to all investments of the funds of domestic fire insurance companies of every kind and character." Only such real estate as may be needed for the conduct of its business may be purchased by an Illinois company; and real estate acquired under foreclosure or on account of debts must be sold within five years, unless the time limit is extended by the Superintendent of Insurance. Foreign companies' deposits in the United States must consist of stocks of the United States or of Illinois, equal to a stock producing six per cent per annum — to be received at a rate not above par — or in bonds and mortgages on Illinois real estate worth fifty per cent more than the amount loaned thereon ; or in bonds, stocks or other securities of its own country, which shall not be valued above par nor above current market value. LICENSED BROKERS— Law of May 14, 1903, Sec. i. Provides that in con- sideration of the annual payment of $200, except in counties having less than 100,000 inhabitants, in which case the fee shall not exceed $25, the Superintendent of Insurance may issue a license revocable at any time to citizens of Illinois, permitting the party named in such license to act as agent to procure policies of fire insurance in unauthorized companies. The agent so licensed must execute an affidavit, which shall be filed in the In- 112 FIRE INSURANCE LAWS, TAXES AND FEES. surance Department within thirty days after the procuring of such insur- ance, to the effect that after diligent effort the agent has been unable to se- cure the amount of insurance required to protect the property described in such afiSdavit from regularly admitted companies. A separate record must be kept of all such transactions showing the amount of insurance placed, the gross premiums charged thereon, the company in which placed, the date and term of policy and the situation of the property insured ; this ac- count to be kept open at all times for the inspection of the Insurance Super- intendent. Before transacting business under this license the party shall execute and deliver a bond in the penal sum of $2,000 that the agent will faithfully comply with the above requirements and will pay to the Insur- ance Superintendent a sum equal to 2 per cent, upon the gross premiums received from policyholders upon all policies procured or issued by him during the preceding six months. In default of such payment the Insur- ance Superintendent may sue for the same in any court of record in Illinois. The Insurance Department rules that unlicensed companies writing Illi- nois risks through licensed brokers must file credentials and be licensed in their respective home States. LIMIT ON A SINGLE RISK— No requirement. LLOYDS — No special provision. MUTUAL COMPANIES— Law of May 14, 1903, Sec. i. * * * "Nor shall any company formed under this act, for the purpose of doing the busi- ness of fire or inland navigation insurance on the plan of mutual insurance, commence business until not less than $200,000 of insurance, in not less than 100 separate risks, no one of which, for the purpose of organization, shall exceed $5000, or be less than $500, shall have been subscribed, of which $10,000 shall have been paid in cash • each subscriber agreeing, in writing, to assume a liability to be named in the policy subject to call by the board of directors. Every mutual fire insurance company organized under this act shall charge and collect in advance on each of its policies a sum in cash not less than ten per cent of a premium note to be mentioned in the policy, which note shall be subject to call by the board of directors, and shall be for not less than the amount of the premium for the full term of the policy, according to the basis rate adopted by such company on the property covered by the policy, and the sum so collected in cash in advance shall stand as a credit on the amount of such note. No member shall be liable on anv such note after the expiration of the term for which the policy shall be writ- ten, except for liability incurred during said term. And it shall not be law- ful for any such company to issue any other kind of a policy. Provided, however, that nothing in this section shall be held to prohibit any such com- pany from issuing a policy for one year or less for a full cash premium according to the basis rate aforesaid." (Township mtituals may be organ- ized by nine to fifteen directors, and provision is also made for the forma- tion of county mutuals.) PRELIMINARY DOCUMENTS-Insurance Law, Sec. 112. "Application ILLINOIS. 113 for license to be filed with Insurance Superintendent— form of declara- tion." Sec. I. "It shall not be lawful for any insurance company, asso- ciation or partnership incorporated by, or organized under, the laws of any other State in the United States, or of any foreign government, for the purpose of insuring against loss or damage by fire, or against the risks of inland navigation or transportation, for the purpose of life insurance, or for the purpose of insuring persons against accidents, to take risks or to transact any business whatever, authorized by its charter, within this State, until it shall have complied with the following requirements, in addition to those already imposed by existing law : It shall first file with the Insur- ance Superintendent a written application for a license to do business in this State, duly signed by its president and secretary, with its corporate seal attached, which statement shall contain the following declaration: That it desires to transact the business of insurance in this State, that it will accept a license therefor according to the laws of this State, and that said license shall cease and terminate in case, and whenever it shall remove, or make application to remove, into any United States court any action or proceeding in any of the State courts of this State, upon any claim or cause of action arising out of any business transaction, in fact, done in this State ; any permission, consent, agreement, condition or provision incorporated in any contract, mortgage, note, bond, obligation or policy of insurance, authorizing or consenting to such removal, to the contrary notwithstand- ing." Foreign companies must file application and appointment of attorneys to be made, in pursuance of resolutions by board of directors or managers, and signed by the president and secretary of such board, or the officer cor- responding to such ; to be acknowledged before United States Consul, and appointment of attorney; also, certificate of compliance, certificate of de- posit, certified copy of charter or articles of association, certified to by the proper custodian of original; and duplicate of original appointment of United States trustees and United States managers, all to be acknowledged before United States Consul. Yearly certificates of compliance with laws of company's home State not required by statute. PUBLICATION — "And the said Superintendent shall also cause its annual statements, required to be filed by this act, to be published in two news- papers of general circulation, the one printed in the city of Chicago and the other printed in the city of Springfield, not less than fifteen days." Pub- lication fee, $80. Companies may advertise only actual, available assets, paid-up capital, etc., as allowed by the Illinois Insurance Department. Penalty for violation, $500 and costs; for second offense, $1000. RECIPROCAL LAW— Chap. 2, Sec. 29. "Whenever the existing or future laws of any State of the United States, or any other kingdom or country, shall require of insurance companies incorporated by or organized under the laws of this State, and having agencies in such other State, kingdom or country, any deposit or securities in such State, kingdom or country for the protection of policyholders, or otherwise, of any payment for taxes. 114 FIRE INSURANCE LAWS, TAXES AND FEES. fines, penalties, certificates of authority, license fees, or otherwise, greater than the amount required for such purposes from similar companies of other States by then existing laws of this State, then, and in every such case, all companies of such States, established, or having heretofore estab- lished, an agency or agencies in this State, shall be and are hereby required to make the same deposit for a like purpose with the Insurance Superin- tendent of this State, and to pay the Insurance Superintendent for taxes, fines, penalties, certificates of authority, license fees, and otherwise, an amount equal to the amount of such tharges and payments imposed by the laws of such State upon the companies of this State and the agents thereof; provided, that the payment required of such foreign companies shall in no case be less than required by this act." REINSURANCE — "That no fire insurance company authorized to do business in this State shall reinsure, dispose of by treaty, cede, pool, divide, or in any manner or form whatsoever reduce any portion of its risk or liability, covering property located in whole or in part in this State, in or with any company, association, person or persons whether incorporated or otherwise not authorized by law to do the business of fire insurance in this State." Sec. 2. "No fire insurance company authorized to do business in this State shall reinsure, or assume as a reinsuring company, or otherwise, in any manner or form whatsoever, the whole or any part of any risk or liability, covering property located, in whole or in part, in this State, of or for any insurance company, association, person or persons, whether incor- porated or not, not authorized by law to do fire insurance business in this State." Sec. 3. "No fire insurance company authorized to do business in this State shall reinsure or assume as a reinsuring company, or otherwise in any manner or form whatsoever, the whole or any part of any risk or liability, covering property located, in whole or in part, in this State, of any insurance company, association, person or persons whether incor- porated or not unless the risk or liability reinsured shall have been assumed in full accord with the provisions of the statutes of this State." Affidavit of home office officials that the law concerning reinsurances has been com- plied with, must be filed with Superintendent of Insurance by March. Penalty for violation, forfeiture of license. Reinsurance policies must be countersigned by resident agents. REINSURANCE RESERVE— Fifty per cent of unexpired premiums on one- year policies, pro rata on term policies. RESIDENT AGENTS— Sec. 261, Chap. 73, approved March 11. 1869. "It shall be unlawful for any insurance company, legally authorized to transact business in the State of Illinois, to write, place or cause to be written or placed, any policy or contract for indemnity for insurance upon property situated or located in the State of Illinois, except through legally author- ized agents in the State of Illinois, and the writing, placing, or causing to be placed, of any such policy of insurance is hereby declared to be a viola- tion of the law providing for the payment of taxes by foreign insurance ILLINOIS. lis companies doing business in the State of Illinois." Penalty for violation, revocation of license. SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— No requirement. 1 AXES — Reciprocal law applies since gross tax law has been declared uncon- stitutional. See "County Taxes and Fees." One-fifth of net receipts of all companies are taxed locally as personal property. All stock and mutual companies, individuals, firms, corporations, associations or aggregations of underwriters writing fire insurance, are required to pay, annually in February, in addition to other taxes required by law, not exceeding one- fourth of one per cent of gross premium receipts, to the Insurance Super- intendent, for the maintenance of the office of fire marshal. An excess of receipts over expenses will reduce the tax the following year. TAX STATEMENTS— As the gross tax law has been declared unconstitu- tional, the filing of tax statements is governed by the Law of 1869, sec. 30, quoted under "County Taxes and Fees." VALUED POLICY— No provision. COUNTY TAXES AND FEES. Law of i86g. Sec. 30. "Every agent of any insurance company, incor- porated by the authority of any other State or government, shall return to the proper officer of the county, town or municipality in which the agency is estab- Ushed, in the month of May, annually, the amount of the net receipts of such agency for the preceding year, which shall be entered on the tax Hst of the county, town and municipality, and subject to the same rate of taxation for all purposes — State, county, town and municipal— that other personal property is subject to at the place where located; said tax to be in lieu of all town and municipal licenses; and all laws and parts of laws inconsistent herewith are hereby repealed. Provided, that the provisions of this section shall not be con- strued to prohibit cities having an organized fire department from levying a tax or license fee, not exceeding two per cent, in accordance with the provisions of their respective charters, on the gross receipts of such agency, to be applied exclusively to the support of the fire department of such city. [As amended by act approved May 31, 1879; in force July i, 1879.]" The Supreme Court, in the case of National Fire vs. Hamberg County Treasurer, in April, 1905, held "net receipts" to mean "the gross receipts less operating expenses, not including fire losses, and does not mean profits." MUNICIPAL TAXES AND FEES. Every city having a fire department can impose a tax of two per cent on premiums. See "Fire Department Tax." CHICAGO— Fire insurance patrol, one and two-fifths per cent of city premi- ums and two per cent of Union Stock Yards' premiums. Fire depart- ment two per cent of premiums. The city levies a tax of $25 per annum 116 FIRE INSURANCE LAWS, TAXES AND FEES. on brokers, and the term "broker" is held to include parties operating under that head in merchandise, real estate, insurance or any other similar capacity. The license issued to the insurance broker and the one issued to the real estate or commission man is identically the same. Some years ago the Corporation Counsel's office gave an opinion to the effect that the regular agencies on the street, though not brokers under the local board classification, were nevertheless subject to the payment of this tax, if they desired the privilege of placing any business outside their own offices. It has been collected only in an intermittent way. The ordinance does not mention the term "insurance" at all, but under the opinion cited insurance agents acting otherwise than exclusively for the companies by which they are commissioned, are held to be brokers, and whenever called upon to do so by the City Collector, must pay the license fee. ROCKFORD— For each agent, $i, payable June i. INDIANA. STATE REQUIREMENTS. AGENTS DEFINED— R. S. 1894, Sec. 3457. "Any person who shall, directly or indirectly, receive or transmit money or other valuable thing to, or for, the use of such corporations, or who shall in any manner make, or cause to be made, any contract, or transact any business for, or on account of, any such foreign corporation, shall be deemed an agent of such corporation, and be subject to the provisions of this act relating to agents of foreign corporations." AGENTS' LICENSES — ^Agents must procure certificates of authority expiring January i. Supervising agents need but one. One license only is re- quired for a firm. Penalty for acting for unsound or unauthorized company, a fine of not less than $10 nor more than $100, and imprison- ment for not exceeding six months. ANNUAL STATEMENTS— Must be filed in January. ANTI-COINSURANCE— Law of 1901, Sec. i. "It shall be unlawful for any fire insurance company doing business in this State to issue any policy or contract of insurance covering property in this State which shall contain any clause or provision requiring the assured to take out or maintain a larger amount of insurance- than that expressed in such policy, nor in any way pro- viding that the assured shall be liable as coinsurer with the comjiany issuing the policy for any part of the loss or damage which may be caused by fire or lightning to the property described in such policy, and any such clause or provision shall be null and void and of no effect, except that it may be lawful for such insurance companies to issue, and it may be optional with the assured to accept a policy or contract of insurance containing a coinsur- ance clause or provision when a reduction in the rate for insurance on the property described in such policy is the consideration named, and when so accepted the coinsurance clause or provision shall be binding on the as- sured and the company ; provided, that the provisions of this act shall not apply to railroad or marine insurance." ANTI-COMPACT — In 1910 the superior court perpetually enjoined the fire insurance companies from maintaining a combination to enforce rates. ANTI-DISCRIMINATION— The giving or receiving of a rebate is for- bidden. ATTORNEY — A resident of the State must be appointed to accept service of legal process. CANCELLATION OF POLICY— No requirement as to notice to insured. CAPITAL REQUIRED — "No insurance company, agent or agents of any insurance company, incorporated by any other State, shall transact any busi- ness of insurance, unless such company is possessed of at least $200,000 of 118 FIRE INSURANCE LAWS, TAXES AND FEES. actual capital invested in the stocks or bonds of some one or more of the States of this Union, or of the United States, or bonds of some one or more of the counties, cities or towns of the United States, at the current market value thereof at date of such statement, or in bonds or mortgages of real estate worth double the amount for which the same is mortgaged, and free from any prior incumbrance, or unless such company is possessed of assets amounting to at least $2,000,000, and a net surplus over and above all liabilities of at least $450,000. Upon filing such statement annually in Jan- uary, certificate shall be granted, which shall be filed in the office of the clerk of the Circuit Court in the county in which agency is established." Mutual companies must have at least $100,000 in premium notes and $20,000 in cash. COMMISSIONS TO NON-RESIDENTS— No provision. DEPOSIT — Foreign companies must have at least $100,000 deposit in Indiana, or in some other State or Territory. (See "Investments Prescribed.") DOMESTIC COMPANIES— A domestic stock company must have from $100,000 to $500,000 of capital stock, which must be paid in within eigh- teen months ; but company may be licensed to begin business when one-half of the capital is paid in. Nine or more persons may form a stock company. EXAMINATIONS— "The Auditor of State shall examine or cause to be examined by some competent and disinterested person, every detail of the business of any special charter company transacting business of insurance in this State, whenever, in his judgment, such examination is required for the interest of the policyholders of such company, and, for the purpose of such examination, has power, either in person or by one or more competent and disinterested examiners by him commissioned in writing." Acts 1899, page 221 ; in force March 2, 1899. FEES — For examination of statements and evidence of investment, $5 ; accept- ing service as an attorney, $3 ; issuing certificate to agent, $3 each ; to clerk of court for filing certificate and statement, fifty cents; examination of companies, actual expenses incurred; certificate of authority to incor- porate, $2 ; certified copy of vote appointing Auditor as attorney, $5 ; for two copies of statement for publication, $2. Other fees regulated by re- ciprocal provisions. Fees are payable to Auditor of State. FIRE DEPARTMENT TAX— Governed by reciprocal law. FIRE MARSHAL— No provision. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— None required. GENERAL PENALTIES— For violations of the insurance law, not specifi- cally provided for, a fine of not over $1000, or imprisonment for not exceed- ing thirty days, or both. For beginning an action upon a policy in, or transferring an action to, a Federal Court, revocation of license. IMPAIRMENT— No special provision. INVESTMENTS PRESCRIBED— Laws of 1905. Sec. i. "Be it enacted by the General Assembly of the State of Indiana, That whenever any law INDIANA. 119 of this State, now or hereafter enacted, regulates the admission of insur- ance companies of other States or countries to do business of any kind of insurance in this State and fixes the amount of capital or assets required of such insurance companies to do such business in this State, then the amount of such capital or assets so required of such companies to do such business in this State shall be invested in the bonds of some one or more of the States of the United States or of the United States or in bonds of some one or more of the counties, cities or towns of this State or some other State of the United States, which have not exceeded the limit of tax levies allowed by law, or some foreign country in which such company is authorized to do business, at the current market value thereof at the date of admission of such company to do business in this State or in first mort- gage bonds or mortgages on real estate worth double the amount for which the same is mortgaged and free from prior incumbrances." Domestic companies may also invest in bonds of any county in Indiana issued for the improvement of highways. LICENSED BROKERS— No provision. LIMIT ON A SINGLE RISK— Ten per cent of actual paid-in capital. LLOYDS — No special provision. MUTUAL COMPANIES^Act of March 3, 1909, Sec. i : "When applications for not less than one million dollars of insurance shall have been received by any mutual fire insurance company organized pursuant to the laws of the State of Indiana, in which applications there shall be assumed not less than one hundred thousand dollars in liability expressed in such applications for such insurance or in bona fide premium notes, and on which application there has been received at least twenty thousand dollars in cash by such company and of all of which it shall be at the time pos- sessed, and proof of the same is furnished to the Auditor of State of the State of Indiana, and the books containing the same verified by the secre- tary of the company, and examined and approved by said Auditor of State, as evidenced by his certificate, then such company may issue poli- cies of insurance and renewals on the same for a term not exceeding seven years, against loss or damage by fire, lightning or tornado, upon any dwelling house or other buildings, merchandise or other property within the United States and the Dominion of Canada." Sec. 2. "Every person who shall become a member of such company shall either in the written application or in the policy, assume a liability of not more than seven times the amount of the annual cash premium named in the policy, and such liability may be expressed in the policy issued, or in lieu thereof, such applicant shall deposit his promissory note as a premium note, and in addition thereto shall pay the cash premium agreed upon and expressed in the policy, and such liability, or such premium note, shall be payable in whole or in part on any assessment when the directors may require the same. Whenever any such company now or hereafter or- ganized shall be possessed of not less than one hundred thousand dollars 120 FIRE INSURANCE LAWS, TAXES AND FEES. of net cash assets, it may accept a fixed cash premium in lieu of such lia- bihty expressed in the poHcy or of such premium note, but in such case the person so insured shall not be deemed a member nor entitled to par- ticipate in the accumulations of the company." Sec. 4. "Any mutual fire insurance company heretofore organized and doing business pursuant to the laws of the State of Indiana may without reorganization avail itself of, and be governed by, all of the provisions of this act, by the adoption by its board of directors of a resolution accepting the provisions of this act. A copy of such resolution, duly certified by the president and sec- retary of such company, shall be filed with the Auditor of State of the State of Indiana. All mutual fire insurance companies hereafter or- ganized pursuant to the laws of the State of Indiana shall be subject to all of the provisions of this act. Nothing in this act shall affect any contract of insurance heretofore made nor shall any of the provisions of this act in any wise affect farmers' mutual fire insurance companies now or hereafter organized pursuant to the laws of the State of Indiana." Approved March 14, 1895, Sec. i. "That any insurance company organized and doing business under the laws of this State on what is known as the assessment plan, and having more than 1000 members, and a reserve fund of not less than $100,000, is hereby author- izedj subject to the limitations hereinafter contained, to issue stock in shares of fifty dollars each, to an amount of not less than $100,000, nor more than $500,000, and to receive subscriptions therefor." Mutual com- panies of other States possessing $50,000 or more of cash assets, and at least $100,000 of premium notes, may be licensed to operate in Indiana. POLICY CONDITIONS— Sec. 214, Laws of 1899. "No such insurance company shall insert any condition, in any policy hereafter issued, requir- ing the insured to give notice forthwith, or within the period of time less than five days, of the loss of the insured property; nor shall any condition be inserted in such policy, requiring the insured to procure the certificate of the nearest justice of the peace. Mayor, judge, clergyman, or other offi- cial or person, of such loss, or the amount of such loss ; and any provision or condition contrary to the provisions of this section, or any condition in said policy inserted to avoid the provisions of this section, shall be void, and no condition or agreement not to sue for a period less than three years shall be valid." Sec. 212, Laws of 1899. "Whenever any loss shall occur of any property insured by any company authorized to take risks under this act, it shall be the duty of the agent, by whom the insurance was made, to retain in his possession all moneys belonging to such company, which may then be, or may thereafter come into, his possession, until such loss is adjusted and paid; provided, that if suit shall be commenced by the party insured, against such company, the agent may deposit :n court double the amount mentioned in the policy, to abide the event of the suit, or, if the party insured shall not commence suit within ninety davs after the agent shall have given written notice to such party that the loss will not be paid, INDIANA. 121 the agent may thereafter pay over to persons entitled, the moneys of said company; and if any person insured by such company, meeting with a loss, shall notify any other agent of such company thereof, it shall be the duty of such agent to retain moneys as hereinbefore required of the agent." PRELIMINARY DOCUMENTS— Company must file certified copy of its charter and verified copy of its statement. Foreign companies must file certified copy of charter and certificate of deposit. PUBLICATION — Annual statements must be published twice in two leading daily newspapers of the State having the largest circulation. Annual ex- pense, $24 for each paper; $48 for both. RECIPROCAL LAW— R. S. 1894, Sec. 4926. "When, by the laws of any other State, any taxes, fines, penalties, licenses, fees, deposits of money or securities, or other obligations or prohibitions are imposed upon insurance companies of this or other States, or their agents, greater than are required by the laws of this State, then the same obligations and prohibitions, of whatever kind, shall, in like manner for like purposes, be imposed upon all insurance companies of such States and their agents. All insurance com- panies of other nations, under this section, shall be held as of State where they have elected to make their deposit and established their principal agency in the United States." REINSURANCE — It is unlawful for domestic insurance companies, when retiring from business, to place, or cause to be placed, insurance on prop- erty in the State of Indiana, in companies not authorized to do business therein ; and it is held that this prohibition applies to companies not organ- ized in the State as well, when retiring from business. Company still con- tinuing to do business in Indiana may reinsure in any company, but the original company must pay taxes on the full amount of premiums. REINSURANCE RESERVE— No special provision. RESIDENT AGENTS— R. S. 1901, Sec. 4928. "That it shall be unlawful for any insurance company legally authorized to transact insurance business in the State of Indiana to write, place or cause to be written or placed any policy, or contract for indemnity for insurance upon property situated or located in the State of Indiana in or through any such legally authorized company, outside of the State of Indiana, and the writing, placing or causing to be written or placed any such policy of insurance is hereby declared to be a violation of the law providing for the payment of taxes by foreign insurance companies, doing business in the State of Indiana, as set out and provided in Sec. 8 of an act approved by the General Assembly of the State of Indiana, March 9, in the year 1873." For any violation of this law, license is subject to revocation for at least ninety days. SEMI-ANNUAL STATEMENTS— Not required. STANDARD POLICY— None required. TAXES — R. S. 1894, Sec. 8477. "Every insurance company not organized under the laws of this State, and doing business therein, shall in the months of January and July of each year, report to the Auditor of State, * * * 122 FIRE INSURANCE LAWS, TAXES AND FEES. the gross amounts of receipts received in the State of Indiana on account of insurance premiums for the six months last preceding, ending on the last day of December and June of each year next preceding, and shall at the time of making such report, pay into the treasury of the State the sum of $3, on every $100 of such receipts, less losses actually paid within the State; and any such insurance company failing or refusing for more than thirty days to render an accurate account of its premium receipts, as above pro- vided, and pay the required tax thereon, shall forfeit one hundred dollars for each additional day such report and payment shall be delayed, to be re- covered in an action in the name of the State of Indiana, on relation of the Auditor of State, in any court of competent jurisdiction, and it shall be the duty of the Auditor of State to revoke all authority of any such defaulting company to do business within this State." No credit is allowed for rein- surances. If a company pays out more money than it collects in premiums in the State, no taxes are charged. Taxes are payable to the Treasurer of the State of Indiana. TAX STATEMENTS— Must be filed in January and July. Penalty for neglect- ing to file statement and pay tax within thirty days, $100 per day for each additional day's delay. VALUED POLICY— No provision. COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. None. IOWA. STATE REQUIREMENTS. AGENTS DEFINED. — Sec. 1750. "The term, agent, used in the foregoing sec- tions of this chapter, shall include any other person who shall in any man- ner, directly or indirectly, transact the insurance business of an insurance company complying with the laws of this State. Any officer, agent or representative of an insurance company doing business in this State who may solicit insurance, procure applications, issue policies, adjust losses or transact the business generally of such companies, shall be held to be the agent of such insurance company with authority to transact all business within the scope of his employment, anything in the application, policy, contract, by-laws or articles of incorporation of such company to the con- trary notwithstanding." AGENTS' LICENSES — Companies must procure certificates of authority for their agents. Applications for licenses should be filed by company officers, under seal, when annual statement is filed. Certificates expire annually March i. ANNUAL STATEMENTS— Must be filed by Jan. 31. Penalty for making false statement, first offense, $500 ; second offense, $1000. ANTI-COINSURANCE— Sec. 1746 of the code was amended in 191 1 so as to permit the use of coinsurance clauses in policies covering individual properties valued at $25,000 or more. ANTI-COMPACT— Code of Iowa, 1897, Sec. 1754. "It shall be unlawful for two or more fire insurance companies doing business in this State, or for the officers, agents or employees of such companies, to make or enter into any combination or agreement relating to the rates to be charged for insurance, the amount of commission to be allowed agents for pro- curing same, or the manner of transacting the fire insurance business within this State ; and any such company, officer, agent or employee violating this provision shall be guilty of a misdemeanor, and on conviction thereof, shall pay a penalty of not less than $iao nor more than $500 for each offense, to be recovered in the name of the State, for the use of the permanent school fund." Penalty for violation, a fine of $100 to $500. Additional penalty for violation of this section by a company, revocation of license and refusal of permission to do business in the State for at least one year. (This meas- ure was declared valid by the Supreme Court of the United States.) ANTI-DISCRIMINATION— No provision. ATTORNEY — The Auditor of State must be empowered to accept service of legal process. CANCELLATION OF POLICY— Sec. 1728. "At any time after the maturity of a premium, assessment or instalment provided for in the policy, or any 124 FIRE INSURANCF. LAWS, TAXES AND FEES. note or contract for the payment thereof, or after the suspension, forfeiture or cancellation of any policy or contract of insurance, the insured may pay to the company the customary short rates and costs of action, if one has been commenced or judgment rendered thereon, and may then, if he so elect, have his policy and all contracts or obligations connected therewith, whether in judgment or otherwise, canceled, and they and each of them thereafter shall be void; and in case of suspension, forfeiture or cancellation of any policy or contract of insurance, the assured shall not be liable for any greater amount than the short rates earned at the date of such suspension, forfeiture or cancellation and the cost herein provided." Since the en- actment of Sec. 1728 (which refers to practically all companies other than life doing business in Iowa) the Standard Policy form was adopted. This contains the following clause : "This policy shall be canceled at any time at the request of the insured ; or by the company by giving five days' notice of such cancellation either by registered letter directed to the in- sured at his last known address, or by personal written notice. If this policy shall be canceled as hereinbefore provided, or becomes void or cease, the premium having been actually paid, the unearned portion shall be returned on surrender of this policy or last renewal, this company retaining the customary short rates; except that when this policy is can- celed by this company by giving notice it shall retain only the pro rata premium." Sec. 1729. "The Auditor of State shall prepare and publish a table of the short rates provided for in the two preceding sections, which, when published, shall be for the guidance of all companies covered in this chapter, and the rate to be given in the notice therein provided, and no greater sum than this fixed shall be demanded or collected. A copy of said short rates shall be printed on, or attached to, each policy." The follow- ing is the table prepared and promulgated under the above law : IOWA SHORT-RATE TABLE. Take the percentage indicated in scale opposite the number of days or months policy is to run on the premium at given rate, and the result will be the premium earned in case of cancellation. Periods exceeding 20 days, and not exceeding 25 days, to be charged at the rate of 25 days, and so on up to one year. 1 Day 2 per cent an'l prem. 2 Days 4 3 4 5 6 7 8 9 10 II . 5 . 6 • 7 . 8 • 9 • 9 .10 .10 .11 12 Days 12 per cent an'l pren 13 14 IS 16 17 18 19 20 25 30 •13 ■13 .14 .14 •IS .16 .16 • 17 •19 .20 IOWA. 126 35 Days 23 per cent an'l prem. 35 40 « 23 26 '• 45 it 27 50 " 28 (i 55 " 29 60 '* 30 i( 65 '' 33 " 70 ■' 36 '* 75 " 37 ** 80 it 38 '* 85 " 39 " 90 " or 3 mo. ... 40 " 105 ** 45 120 " or 4 mo. ... 50 135 (t 55 ISO " or 5 mo 60 it 165 (( 65 tt 180 " or 6 mo 70 " 195 '* 73 " 210 " or 7 mo.... 75 " 225 <( 78 ** 240 " or 8 mo.. . . 80 255 ct 83 (( 270 " or 9 mo. ... 85 28s 300 ti 88 " or 10 mo.. . go (> 315 " 93 " 330 " or II mo.. . 95 it 360 or 12 mo... 100 TWO YEARS. For 2mos. orless . 25% term prem. Over 2 mos. not ex. 4. ■ 30% term prem. ' 4 ' 6.. . 40% ' 6 ' 8. . . 50% • 8 ' 10. . . 60% ' 10 ' ' " 12.. . 70% * 12 ' 14. . . 75% ■ 14 ' " 16. . . 80% ■ 16 ' 18.. . 85% ' t8 ' " 20. . . 90% ' 20 ' ' " 22. . . 95% ' -72 ' .100% Over 12 mos. not ex. 16. . . 50% term prem. 15 " " 18.. • 70% 18 ■' 21.. • 75% 21 " 24. . . 80% 24 " 27. . 85% 27 ■' " 30. . ■ 90% 30 " 33- • . 95% 33 " .100% FOUR YEARS. For 4 mos. or less 25% term prem. Over 4 " not ex. 8. . . 30% 8 " 12. . . 40% 12 " " 16.. . 50% 16 " 20. . . 60% 20 " 24. . • 70% 24 " '• 28. . . 75% 28 " " 32. . . 80% 32 " " 36. . . 85% 36 " 40. . . 90% 40 " 44.. • 95% 44 " .100% FIVE YEARS For 5 mos. or less 25% term prem. Over 5 " not ex. ID. . . 30% " 10 " " 15- • • 40% " 15 " 20. . . 50% " 20 " " 25. . . 60% " 25 " " 30- . . 70% " 30 " " 35- • . 75% " 35 " 40. . . 80% " 40 " " 45- • . 85% " 45 " 50. . . 90% " 50 " " 55- ■ . 95% " 55 ' .100% SIX YEARS. For 6 mos. orless 25% term prem. Over 6 " not ex. 12... 30% 30% 12 " " 18. . . 40% 18 " " 24. . . 50% 24 " " 30. ■ . 60% 30 " " 36. . . 70% 36 " 42.. • 75% 42 " " 48. • . 80% 48 " " 54. • . 85% 54 " " 60. . . 90% 60 " " 66. . . 95% (56 " .100% THREE YEARS- For 3 mos. orless 25% term prem. Over 3 " not ex. 6. . " 6 " " 9- " 9 " " 12... 50% The foregoing Short Rate Table is printed upon the reverse side of the Standard PoHcy Form. CAPITAL REQUIRED— Of stock companies, $200,000; of mutual companies, 126 FIRE INSURANCE LAWS, TAXES AND FEES. $200,ocx) of net cash assets over all liabilities, including reserve. See "Domestic Companies." COMMISSIONS TO NON-RESIDENTS— No provision. DEPOSIT— None required. DOMESTIC COMPANIES— Act of April 4, 1907. Sec. i. "From and after the taking effect of this act, no insurance company shall be incorporated to transact business upon the stock plan, * * * with less than $100,- 000 capital, the entire amount of which shall be fully paid up in cash and invested as provided by law. * * *" Sec. 2. "The certificate of au- thority of any company heretofore organized and transacting business on the stock plan shall not be renewed after January i, 1910, unless said com- pany shall have, at said time, at least $100,000 of capital stock; at least $50,000 of which shall be paid up in cash and invested according to law. The remainder of said capital may be represented by stock notes payable to the company on demand of its board of directors, and said notes shall be deposited with the Auditor of State subject to his approval. But no increase of the capital stock of any company shall hereafter be made unless the amount of said increase is paid up in cash." Only the paid-up portion of capital may be advertised. Articles of incorporation must be certified as correct by the Attorney-General, and be filed with and approved by the Auditor of State, after being recorded in the Secretary of State's office. Stock notes must be certified by a clerk of the District Court as being those of responsible parties. Domestic fire insurance companies may write automobile and marine risks. EXAMINATIONS— Chap. 56, Acts of the thirtieth General Assembly, ap- proved March 17, 1904. Section i. "The Auditor of State may at any time he may deem it advisable, make an examination of or inquire into the affairs of any insurance company authorized or seeking to be authorized to transact business within this State, provided that such examination shall not be less frequent than once during each biennial period." Sec. 2. "When any company is being examined, the officers, employees or agents thereof shall produce for inspection all books, documents, papers or other information concerning the affairs of the company, and shall otherwise assist in such examination so far as they can do. The Auditor of State, or his legally authorized repre- sentative in charge of the examination, shall have authority to administer oaths and take testimony bearing upon the affairs of any company under examination." Sec. 3. "For the purpose of carrying into effect the pro- visions of this act, the Auditor of State is hereby authorized to appoint an insurance examiner, who shall also be a competent actuary, who shall receive for his services a salary of two thousand dollars per year, and who, while conducting examinations, shall possess all the powers conferred upon the Auditor of State for such purposes. Said examiner shall give bond to the State conditioned upon the faithful performance of his duties, in the sum of five thousand dollars, which bond shall be filed with and approved by IOWA. 127 the Auditor of State. The entire time of the examiner shall be under the control of the Auditor of State, and shall be employed as he may direct. The Auditor of State may, when in his judgment it is advisable, appoint assistants to aid in making examinations. Such assistants shall receive as compensation for their services not to exceed five dollars per day each. Said examiner and assistants shall receive no other or further compensation than as above provided, except that they and the Auditor of State shall receive actual and necessary traveling, hotel and other expenses while en- gaged in conducting examinations away from their respective places of residence. Such expenses, together with the compensation of the assist- ants, shall be paid by the Treasurer of State, upon warrants dtawn by the Auditor of State, bills for the same having first been approved by the Executive Council. Such bills shall be filed under oath of the party in- curring the expense and shall be approved by the person in charge of the examination. The salary of the examiner shall be paid as are salaries of other employees of the Auditor's office. All bills for expenses of any ex- amination, together with the compensation of the assistants, shall be charged to and paid by the companies examined, and upon failure or re- fusal of any company examined to pay such bill or bills, the same may be recovered in an action brought in the name of the State under the direction of the Executive Council, and the Auditor may also revoke the certificate of authority of such company to transact business within this State. All fees collected under the provisions of this chapter shall be paid to the Audi- tor of State and shall be by him turned into the State treasury as are other fees of his office." Sec. 4. "If upon investigation or examination, it shall appear that any company is insolvent or in an unsound condition, or is doing an illegal or unauthorized business, or that it has refused or neglected for more than thirty days to pay final judgment rendered against it in the courts of this State, the Auditor of State may suspend its authority to transact business within this State until it shall have complied in all re- spects with the laws applicable to such company or has paid such judgment, or he may revoke its certificate of authority to transact business within this State, and having revoked the certificate of any company organized under the laws of this State, he shall at once report the same to the Attorney- General, who shall apply to the district court or any judge thereof for the appointment of a receiver to close up the affairs of said company," * * * Sec. 7. "Should any company decline or refuse to submit to an examina- tion as in this act provided, the Auditor of State shall at once revoke its certificate of authority, and if such company is organized under the laws of this State, he shall report his action to the Attorney-General, who shall at once apply to the district court or a judge thereof for the appointment of a receiver to wind up the affairs of the company." Sec. 8. "Examination of insurance companies not located within this State shall only be made by order of the Executive Council, and at such time as it may direct." FEES — Filing charter (other than Iowa companies), $25; filing annual state- 128 FIRE INSURANCE LAWS, TAXES AND FEES. mcnt (other than Iowa companies), $20; for general certificate, $2; for general agent's certificate, $2; for two certificates for publication, $4; for each agent's certificate (each member of firm must have certificate), domes- tic companies, 50 cents ; outside companies, $2 ; for filing and examination of first application of any company and accompanying articles of incorpo- ration for organization in this State and the issuing of the permission to do business, $10; for filing annual statement and issuing renewal, domestic company, $3; copy of paper on file, 20c.; certifying same, $1. Examina- tions, per diem of assistant examiner and actual expenses. See "Recipro- cal Law." Fees are payable to Auditor of State. FIRE DEPARTMENT TAX— Governed by reciprocal law. FIRE MARSHAL — A State Fire Marshal investigates fires. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— None re- quired, except on application for admission to State. GENERAL PENALTIES— For any violation of the insurance law a fine of not more than $1000, or imprisonment for from thirty days to six months. For declaring a dividend, except from surplus profits, a domestic com- pany's charter may be forfeited. For doing business for any company which is operating unlawfully, a fine of $100 to $1000, or imprisonment for not exceeding one year, or both. IMPAIRMENT— See "Examinations." INVESTMENTS PRESCRIBED— Domestic companies may invest capital and funds in mortgage loans on property worth double the amount loaned thereon, exclusive of buildings, unless the latter are insured for the benefit of the company ; United States bonds or treasury notes, or Iowa State bonds, or bonds of any county or municipal corporation thereof, authorized by law; or they may loan upon the securities above mentioned. Surplus funds may be invested in or loaned upon stock or bonds or other evidences of indebtedness of any solvent dividend-paying corporation organized under the laws of Iowa or of the United States, worth at their market value ten per cent more than the amount loaned (company's own stock is excepted). LICENSED BROKERS— No provision. Sec. 1758. "No action shall be maintained in any court in the State upon any policy or contract of fire insurance issued upon any property situated in the State by any com- pany, association, partnership, individual or individuals that have not been authorized by the Auditor of State to transact such insurance busi- ness, unless it shall be shown that the insurer or insured, within six months after the issuing of such policy or contract of insurance, has paid into the State Treasury two and one-half per cent, of the gross premium paid or agreed to be paid for such policy or contract of insurance." LIMIT ON A SINGLE RISK — A company's net line on a single hazard must not exceed ten per cent of its paid-up capital. LLOYDS — No special provision. MUTUAL COMPANIES— (In igo6, the insurance law was so amended that after July 4, 1906, no mutual company can be organized under Chap. '4, IOWA. 129 Title IX). Law of April 13, 1907. Sec. 2. "Any association incorpo- rated under the laws of this State for the purpose of furnishing insurance as provided for in this chapter, doing business only within the county in which is situated the town or city named in its articles of incorporation as its principal place of business, or the counties contiguous thereto, shall, for the purposes of this chapter, be deemed a county mutual assessment asso- ciation; all other associations operating hereunder shall, for the purposes of this chapter, be deemed State mutual assessment associations." This law provides that a State mutual must have 125 applications representing, in classes i, 2 and 3, $250,000 each; class 4, $100,000. A county mutual must have appUcations for $50,000, representing at least fifty applicants. Mutual companies are required to report in January, and to maintain a reinsurance reserve ranging from ten per cent to fifty per cent of basis rates. PRELIMINARY DOCUMENTS— Company must file a copy of its charter and a verified statement showing financial standing and a copy of its last annual report. Foreign companies must file certificate of deposit ; certified copy of charter, copy of policy and appointment of Auditor as attorney to accept service of process. Certificate of compliance with laws of com- pany's home State must be filed annually with annual statement. PUBLICATION— Sec. 1737. "The Auditor of State shall annually, as soon as practicable after the first of March, publish in two newspapers of gen- eral publication, a statement made up from the annual report of every in- surance company of the character provided for in this chapter and doing business in this State whether organized under the laws of this or any other State, which statement shall contain a synopsis of the company's annual report and shall show that the company has in all respects complied with the laws of the State relating to insurance and is authorized to transact business in the State. One publication as above contemplated, shall be made at the seat of government, and in case of companies organized in this State and located elsewhere than in the city of Des Moines, the other shall be made in the county in which the home office of the company is located. The fee for each publication shall be six dollars ($6), which shall be paid to the Auditor of State at the time and in the manner pro- vided for in Section seventeen hundred and fifty-two (1752), Supplement to the Code and shall be by him paid to the papers making the publication upon receipt of a bill for same, together with an affidavit by the publisher or foreman showing that such publication has been properly made, the same to be filed within thirty days from the date of such publication." RECIPROCAL LAW— Sec. 1736. "When, by the laws of any other State, any taxes, fines, penalties, licenses, fees, deposits of money, securities or other obligations or prohibitions are imposed, or would be imposed, on insurance companies of this State doing or that might seek to do business in such other State, or upon their agents therein, so long as such laws con- tinue in force the same obligations and prohibitions of whatever kind shall 130 FIRE INSURANCE LAWS, TAXES AND FEES. be imposed upon all insurance companies of such other State doing busi- ness in this State or upon their agents here." REINSURANCE — No law prohibiting reinsurance in unauthorized companies, but such reinsurances are not credited. Consolidation, or the reinsurance of more than a fractional part of a company's risks, must be effected as prescribed in Chap. 58, Laws of thirtieth General Assembly. REINSURANCE RESERVE— Forty per cent of the premiums received on all unexpired risks. No credit is allowed for reinsurance in unlicensed companies. RESIDENT AGENTS— (Code of 1897). Sec. 1739. "No such company shall write, place, or cause to be written or placed, any policy or contract for in- surance upon property situated or located in this State except through its resident agent or agents." SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— A standard form of policy was adopted in 1907. Penalty for use of any other form, $50 to $100 for first offense; $100 to $200 for each subsequent offense, and company to be disqualified from doing business in Iowa until fines are paid. The Auditor of State rules that a tornado insurance rider may be attached to the standard fire policy. TAXES — Every insurance corporation not incorporated under the laws of Iowa shall pay into the State treasury as taxes two and one-half per cent of the gross premiums, less return premiums. Iowa companies must pay one per cent on gross premiums, less return premiums and losses actually paid. No deduction for reinsurance or fire department taxes. Taxes are payable to the Treasurer of State, according to bills rendered the com- panies by the Auditor of State. TAX STATEMENTS— Must be filed by Jan. 31. VALUED POLICY— Title IX., Chap. 4, Sec. 1742. "In any action brought in any court in this State on any policy of insurance for the loss of any building so insured, the amount stated in the policy shall be received as prima facie evidence of the insurable value of the property at the date of the policy, provided the insurance company or association issuing such policy may show the actual value of said property at date of policy, and any depreciation in the value thereof before the loss occurred, but the said insurance company or association shall be liable for the actual value of the property insured at the date of the loss, unless such value exceeds the amount stated in the policy." COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. None. KANSAS. STATE REQUIREMENTS. AGENTS DEFINED— G. S., Sec. 3382. "Any insurance company not or- ganized under the laws of this State may appoint one or more general agents in this State, with authority to appoint other agents of said com- pany in this State. A certified copy of such appointment shall be filed with the Superintendent of Insurance, and agents of such company, appointed by such general agents, shall be held to be the agents of such company, as fully, to all intents and purposes, as if they were appointed directly by the company." AGENTS' LICENSES — Each agent must obtain a license, which must be re- newed annually on or before March i. A license is required by each member of a firm. Penalty for doing business for an unauthorized com- pany, fine of $500. ANNUAL STATEMENTS— Must be filed on or before March i. Penalty for violation, fine of $500, and $500 additional for each month until filed. ANTI-COINSURANCE— No provision. ANTI-COMPACT— Chapter 257 (1899.) Sec. i. "That all arrangements, con- tracts, agreements, trusts, or combinations between persons or corporations, made with a view, or which tend to prevent, full and free competition in the importation, transportation, or sale of articles imported into this State, or in the product, manufacture, or sale of articles of domestic growth or product, or domestic raw material, or for the loan or use of money, or to fix attorneys' or doctors' fees, and all arrangements, contracts, agreements, trusts, or combinations between persons or corporations, designed or tend to advance, reduce, or control the price or the cost to the producer, or to the consumer, of any such product or articles, or to control the cost or rate of insurance, or which tend to advance or control the rate of interest for the loan or use of money to the borrower, or any other services, are hereby de- clared to be against public policy, unlawful and void." Penalty for viola- tion, fine of $500 to $1000. ANTI-DISCRIMINATION— The law relating to the regulation and control of rates prohibits discriminations. ATTORNEY — The Superintendent of Insurance must be empowered to accept service of legal process. CANCELLATION OF POLICY— No requirement as to notice to insured. CAPITAL REQUIRED— Paid-up, $100,000. See "Reciprocal Law." COMMISSIONS TO NON-RESIDENTS— The Insurance Department rules that resident agents cannot divide commissions with non-resident agents. DEPOSIT — None required, except that foreign companies must have $100,000 on deposit in one of the United States, invested in the securities listed under "Investments Prescribed," which see. 132 FIRE INSURANCE LAWS, TAXES AND FEES. DOMESTIC COMPANIES— G. S., Sec. 3388. "Hereafter, when any number of persons shall associate to form an insurance company for any other purpose than life insurance, and become incorporated in accordance with the provisions of chapter 23 of the General , Statutes of 1868, relating to private corporations, they shall publish a notice of such intention once in each week for at least four weeks, in a public newspaper in the county in which such insurance company is proposed to be located, before executing their charter, as in said act provided. Every such company, heretofore organized, shall file with the Superintendent of Insurance a copy of its charter, duly certified by the Secretary of State." EXAMINATIONS— G. S., Sec. 3370. "It shall be the duty of the Superin- tendent of Insurance, when he has reason to suspect the correctness of any statement of an insurance company, association, corporation, or beneficiary society doing business in this State, whether incorporated in this State or not, or that its affairs are in an unsound condition, or that it is transacting business in violation of the provisions of any of the insurance laws of this State, to make, or cause to be made by some person or persons by him appointed for that purpose, an examination into the affairs of such com- pany, association, corporation or beneficiary society; and it shall be the duty of its oificers or agents to submit their books and business to such examination and in every way facilitate the same." FEES — Domestic companies. Filing and examination of charter and issuing certificate of authority, $25 ; every other certificate required by law, 50c. ; filing annual statement, $10; copy of papers on file, loc. per folio; authority to agents, 50c. Other State and Foreign Companies — For filing and ex- amining the charter of any insurance company and issuing the certificate of authority thereupon, $55 ; for filing the annual statement, $50; for each license granted to agents, $2 ; for every copy of a paper filed in this office, the sum of 25c. per folio ; for affixing the seal of office and certifying to paper, $1 ; for accepting service of process, $3 ; for broker's license, $10. An additional annual payment of $50 is required for the benefit of the State school fund. Fees payable to Superintendent of Insurance. FIRE DEPARTMENT TAX— G. S., Sec. 3412. "Every fire insurance com- pany, corporation or association not incorporated by the laws of this State, doing business in any incorporated city of this State, having, or that may hereafter have, a regularly organized fire department, under the control of the Mayor and Council of said city, and having in serviceable condition for fire duty fire apparatus and necessary equipments belonging thereto to the value of $1000 or upward, shall return to the Superintendent of Insurance a just and true account, verified by oath, that the same is a true account of all premiums received from fire insurance business done in such incorpo- rated cities during the year ending December 31, or such portion thereof as they may have transacted such business in such cities. Such return must be made by said companies within sixty days after the thirty-first day of De- cember, each year." Sec. 3413. "Every fire insurance company aforesaid KANSAS. 133 shall, within sixty days after the thirty-first day of December of each year, deUver and pay to the Superintendent of Insurance the sum of $2 upon the $100, and at that rate upon the amount of all premiums written on fire and lightning within the limits of such incorporated city, during the year end- ing December 31, in each year, or for such portion of such period as said company shall have done business in said city." FIRE MARSHAL— No provision. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— None re- quired. IMPAIRMENT — Limit of impairment permitted, 20 per cent. INVESTMENTS PRESCRIBED— "It shall be lawful for any insurance com- pany incorporated under the laws of this State, for any purpose other than Hfe insurance, to invest its capital, and the funds accumulated in the course of its business, or any part thereof, in bonds and mortgages on real estate worth fifty per cent more than the sum loaned thereon over and above all incumbrances, exclusive of buildings, unless such buildings are insured and the policy transferred to said company; and also, in the stocks of this State, or stocks or treasury notes of the United States; and also, in the stocks and bonds of any county, school district, or incorporated city in this State, authorized to be issued by the Legislature ; and to lend the same, or any part thereof, on the security of such stocks or bonds, or treasury notes, or upon bonds and mortgages as aforesaid, and to change and reinvest the same as occasion may from time to time require; but any surplus money over and above the capital stock of any such insurance company may be invested in, or loaned upon, the pledge of the public stock or bonds of the United States, or any one of the States, or the stocks, bonds or other evi- dences of indebtedness of any solvent dividend-paying institution incor- porated under the laws of this State or of the United States; provided, always, that the current market value of such stocks, bonds or other evi- dences of indebtedness shall be at all times during the continuance of such loans at least twenty per cent more than the sum loaned thereon." LICENSED BROKERS — ^A broker may be licensed to deal with unauthorized companies, for a fee of $10 per annum. He must file a statement annually within ten days after January i, showing his transactions with unauthorized companies, and an affidavit that, after diligent effort, he had been unable to secure the amount of insurance required in regularly admitted com- panies during the year last past, and must pay a tax of two per cent on gross premiums received from policyholders upon policies procured from unauthorized companies. Placing an excess line in an unauthorized com- pany without complying with this law (Law of March 8, 1907) is punish- able by a fine of $50 to $300. LIMIT ON A SINGLE RISK— Net line for stock company, five per cent of paid-up capital ; for mutual company, ten per cent of face value of all pre- mium notes. LLOYDS — The law applies to individuals and partners, and to all companies 134 FIRE INSURANCE LAWS, TAXES AND FEES. and associations, whether incorporated or not, engaged in the business of insurance. MISCELLANEOUS — Policy provision voiding policy if insured premises be- come vacant is void if premises were occupied at time of loss. "Detached" risks must be at least 50 feet distant from contiguous risks. MUTUAL COMPANIES— G. S., Sec. 3480. "That any number of persons, not less than twenty-five, residing in this State, who collectively shall own prop- erty of not less than $50,000 in value, in one of the classes as hereinafter set forth, which they desire to have insured, may form an incorporated com- pany for the purpose of mutual insurance of its members against loss or damage by fire, lightning or tornado." Sec. 3482. "Such persons so desiring to incorporate shall file in the oifice of the Superintendent of Insurance a statement, signed by all the corporators, stating their purpose of forming a company for the transaction of the business of insurance, as expressed in the first section of this act, which statement shall also contain a copy of the charter adopted by them, made in accordance with the Statutes of 1868, and amendments thereunto, and a copy of the by-laws proposed to be adopted by them, and shall publish a notice of such intentions once in each week, for four consecutive weeks, in the official county paper published in the county in which the principal office of such company is proposed to be located." No policies shall be issued until applications in good faith have been re- ceived to the amount of at least $100,000, and premium notes have been received in advance. Provision is made for the establishment of reserve funds. Companies of other States licensed in their home States, and having guaranty funds of $100,000 or more, may be licensed in Kansas. PRELIMINARY DOCUMENTS— Company must file copy of by-laws, char- ter, last report and statement. PUBLICATION— No provision. RATE SCHEDULES TO BE FILED— Fire insurance companies are required to file general basis rate schedules with the Superintendent of Insurance, and to file local rate schedules with the Superintendent of Insurance and with their local agents, and these are to be open to the inspection of the public. The local rate schedules must conform to the general basis rate schedules. Companies and agents are required to observe these published rates, and departure therefrom is strictly prohibited and is subject to penalty. Companies and agents are prohibited from making any conces- sions in premiums, whether in rates, commissions or otherwise. The law contemplates that the policyholder must pay the full premium and rate. When the Superintendent of Insurance shall determine that any rate made by an insurance company in Kansas is excessive or unreasonably high, or that said rate is not adequate to the safety or soundness of the company granting the same, he is authorized to direct said company to publish and file a higher or a lower rate, which shall be commensurate with the char- acter of the risk, but in every case the rate shall be reasonable. RECIPROCAL LAW-G. S., Sec. 3380. "* * * Whenever the existing KANSAS. 135 or future laws of any other State or government shall require insurance companies organized under the laws of this State, applying to do business by agencies in such other State or government, or of the agents thereof, any deposit of security in such State for the protection of policyholders therein, or otherwise, or any payment for taxes, fines, penalties, certificates of au- thority, licenses, fees, or otherwise, greater than the amount required for such purposes from insurance companies of other States by the then exist- ing laws of this State, then, and in every case, all companies of such States or governments establishing agencies in this State shall make the same de- posit, for a like purpose, with the Superintendent of Insurance of this State, and pay to said Superintendent, for taxes, fines, penalties, certificates of authority, licenses, fees, or otherwise, an amount equal to the amount of such charges and payments imposed by laws of such other States or govern- ment upon the companies of this State and the agents thereof * * *." Insurance Laws of 1907, Chap. 223. "* * * Insurance companies of any other country. State or Territory shall not be permitted to transact busi- ness in Kansas, unless possessed of the amount of paid-up capital required by said country, State or Territory, of similar companies organized under the laws of this State, and unless said companies of any other country. State or Territory shall have complied with all other laws and requirements pre- scribed by said country. State or Territory of similar companies organized under the laws of this State." REINSURANCE — No prohibition of reinsurance in unauthorized companies, but the facilities of admitted companies must first be exhausted. Under the resident agents' law, reinsurance in admitted companies must be through resident agents. See "Resident Agents." Sec. 3440. "In con- sidering the liabilities of such a company, corporation or association, it shall not be credited with risks reinsured except for such risks as are reinsured in companies doing business in the United States, and which are or might, under the statutes of this State, be permitted to do business in this State." REINSURANCE RESERVE — Fifty per cent of the premiums on unexpired risks running one year or less, and pro rata on unexpired risks running more than one year. RESIDENT AGENTS— G. S., Sec. 3443. "Any fire insurance company au- thorized to do business by the Superintendent of Insurance is hereby pro- hibited from authorizing or allowing any person, agent, firm or corporation who is a non-resident of the State of Kansas, from issuing, or causing to be issued, any policy or policies of insurance on property located in the State of Kansas." The Insurance Department rules that resident agents cannot divide commissions with non-resident agents. SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— No provision. TAXES — All insurance companies of other States shall annually, on the first day of March, pay to the Superintendent of Insurance two per cent on gross premiums received; foreign companies pay four per cent on gross pre- 136 FIRE INSURANCE LAWS, TAXES AND FEES. miums. Deductions are permitted on account of return premiums on ac- count of cancellations, but not for reinsurance premiums. Brokers pay two per cent on gross premiums received for unlicensed companies. TAX STATEMENTS— Must be filed by January 15. Fire department tax statements must be filed by March i. Penalty for failing to file fire depart- ment tax statement, fine of $300. VALUED POLICY — G. S., Sec. 3407. "Whenever any policy of insurance shall be written to insure any improvements upon real property in this State against loss by fire, tornado or lightning, and the property insured shall be wholly destroyed, without criminal fault on the part of the insured or his assigns, the amount of insurance written in such policy shall be taken con- clusively to be the true value of the property insured, and the true amount of loss and measure of damages, and the payment of money as a premium for insurance shall be prima facie evidence that the party paying such in- surance is the owner of the property insured ; provided, that any insurance company may set up fraud in obtaining the policy as a defense to a suit thereon." Company or agent must examine the insured property, and the policy must contain a complete and correct description of same. No in- complete or erroneous description will be a defense in an action to collect a loss, if the property could be identified from the description by a person of "ordinary intelligence." COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. ARGENTINE— For each agent, $10 per annum, payable semi-annually, Janu- ary I and July i. ATCHISON — For each agent for each company represented, $40 per annum, payable semi-annually, January i and July i. BAXTER SPRINGS— For each agent, $5.50, payable annually, January i (or may be paid semi-annually). BELLEVILLE — For each company, $10 per annum, payable semi-annually, January and July. CHANUTE— For each company, $20 per annum, payable semi-annually, Janu- ary I and July i. CHERRYVALE— For each company or agent, $6 for six months, payable Jan- uary I and July i. CHETOPA — For each company, $3. CLAY CENTER— For each company, $10 per annum, payable semi-annually, July I and January i. CLYDE — For each company, $5, payable June i. COFFEYVILLE— For each company, $10. COLUMBUS— For each agent, $5 per annum, payable June 30 and Decem- ber 31. KANSAS. 137 CONCORDIA — For each company, $io per annum, payable semi-annually, January i and July i. COUNCIL GROVE — For each company, $2.50, payable January i. CYNTHIANA — For each company, $10, and two per cent of premiums. DODGE CITY— For each agent, $10, payable July i. EMPORIA — For each company, $15 per annum, payable January 1 and July i. ERIE — For each company, $5.50, payable in advance. EUREKA — 'For each company, $3; for each agent, $5, payable January i. FORT SCOTT — For each company, $25 per annum, payable January i and July I. GALENA — For each agent, $10; for each company, $10, payable semi-annu- ally, January i and July i. GIRARD — For each company, $5 annually, payable January and July. HOLTON — For each company, $10.50. HORTON — For each company, $10, payable semi-annually. HUMBOLDT — For ,each company, $3.25, payable December i each year. INDEPENDENCE — For each company, $10 per annum, payable $5 Jan- uary I, and $5 July i. lOLA — For each company, $10; for each agent, $5, payable semi-annually, January i and July i. JUNCTION CITY— For each agent, $10.25, payable July i. KANSAS CITY — For each company or agent, $10 per annum, payable semi- annually. KINGMAN — For each company, $2, payable July i. LAWRENCE — For each company, $20 per annum, payable semi-annually, January i and July i. LEAVENWORTH— For each company, $50, payable March i. McPHERSON— For each agent, $5.25, payable January i. MINNEAPOLIS — For each agent, $5 per year, payable semi-annually, January i and July i. NEODESHA— For each agent, $5 per annum, payable July i and January i. NEWTON — For each company, $10, payable July i. OLATHE — For each company, $5 per annum, payable semi-annually, Jan- uary I and July i. OSWEGO — For each agent, $5.50 per annum, payable semi-annually, Jan- uary I and July i. OTTAWA — For each company, $10 per annum, payable semi-annually, Jan- uary I and July i. PAOLA — For each company, $6 semi-annually, payable Jan. i and July i. PARSONS — For each company, $20.25 per annum, payable January i and July I. PEABODY— For each agent, $3, payable May i (each member of a firm pays $3). PITTSBURG — For each company, $20 per annum, payable semi-annually, January and July. 138 KANSAS. PRATT — For each company, $2. ROSEDALE — For each agent (real estate and insurance), $8.25. SALINA — For each company, $10 per annum, payable January i and July i. SCAMMON — For each company, $2.50. TOPEKA— For each agent, $100. WEIR — For each company, $5 ; for each agent, $5 ; payable semi-annually, January i and July i. WELLINGTON — For each company, $10, payable semi-annually. WICHITA — For each company, $20 per annum, payable January and July. WINFIELD — For each company, $2.50 semi-annually, January i and July i. KENTUCKY STATE REQUIREMENTS. AGENTS DEFINED— Sec. 633. "* * * Whoever solicits and receives applications for insurance on behalf of any insurance company, or transmits for any person other than himself an application for insurance, or a policy of insurance to, or from, such company, or advertises that he will receive or transmit the same, or who shall, in any manner, directly or indirectly, aid or assist in transacting the insurance business of any insurance company, shall be held to be an agent of such company within the meaning of this article, anything in the policy or application to the contrary notwithstand- ing." Penalty for acting as agent without a license, fine of $50 to $100 for each offense. AGENTS' LICENSES — Agents must procure licenses annually from the In- surance Commissioner, which expire one year from date of issue. Penalty for acting as agent without a license, fine of $50 to $100 for each offense. Each member of a firm, and each person who solicits insurance, or receives any part of a commission or benefit therefrom, must procure a license. Penalty for acting for an unauthorized company, a fine not exceeding $1000 for each offense. Any agent writing insurance in an unauthorized company becomes personally responsible for any loss under such policy, according to a decision of the Kentucky Appellate Court. ANNUAL STATEMENTS— Must be filed within one month after January 10. Time may be extended for not longer than 60 days by the Insurance Com- missioner, for good cause. Penalty for failure to file statement or reply to any inquiry, fine of $500, and $500 additional for every month's delay; also revocation of agents' licenses. Penalty for making false statement, imprisonment for two to ten years. ANTI-COINSURANCE — No express provision, although the valued policy law (which see) has been interpreted by the Court of Appeals as practically forbidding coinsurance provisions in policies on real estate. ANTI-COMPACT— No law prohibiting co-operation. ANTI-DISCRIMINATION— No provision. ATTORNEY — The Insurance Commissioner and all resident agents must be appointed attorney to accept service of legal process. CANCELLATION OF POLICY— No provision for notice to insured. CAPITAL REQUIRED — Companies of other States are required to have at least $150,000 of paid-up capital (or $150,000 of net assets, if a mutual company) ; domestic stock companies must have at least $50,000 capital. COMMISSIONS TO NON-RESIDENTS— No provision. DEPOSIT — Foreign companies must have $200,000 deposited in Kentucky or some other State in securities in which they are authorized to invest their capital stock by the laws of the respective States in which their deposits 140 FIRE INSURANCE LAWS, TAXES AND FEES. are made, or in which similar companies in Kentucky may, by law, invest their capital and accumulations. See "Investments Prescribed." DOMESTIC COMPANIES— Sec. 617. "Any number of persons, not less than thirteen, may associate to establish upon the stock or mutual plan a corporation * * * to insure against loss or damage to property by fire, lightning or tempest; or to insure against perils of the sea and other perils usually insured against by marine insurance, in- cluding risks of inland navigation and transportation; or to insure animals against injury * * *" Sec. 618. "Such persons shall execute articles of incorporation, which shall specify the proposed name of the corporation, which must not so closely resemble the name of an existing corporation as to be likely to mislead the public; the class of in- surance it proposes to transact, and on what business plan or principle ; the place in this State where its principal office or place of business is to be lo- cated, the number and amount of agreements for insurance, or, if on the stock plan, the amount of its capital stock, and the number of shares into which the same is divided ; the number of directors, and the time at which they are to be elected, and such other facts as may be necessary to explain and make manifest the objects and purposes of the corporation. The words, 'insurance company,' must be a part of the title of every such corporation, and also the word 'mutual' if it is organized upon the mutual principle." A single company cannot transact business upon both stock and mutual plans. Documents of a mutual company- must bear the word "mutual." Penalty for failure to begin business within one year from date of certifi- cate, forfeiture of charter. Sec. 684. "No stock company shall be incor- porated under this law with a smaller capital than $50,000, which stock shall be divided into shares of $10 each, nor shall any company on the plan of mutual insurance commence business in this State until agreement has been entered into for insurance with at least 200 applicants, the pre- mium on which shall amount to not less than $100,000, of which at least $50,000 shall have been made in cash, and notes of solvent parties, founded on actual and bona fide applications for assurance, shall have been received for the remainder. No one of the notes received as aforesaid shall amount to more than $500, and no two shall be given for the same risk, or be made by the same person or firm, except where the whole amount of such notes shall not exceed $500 ; nor shall any note be represented as cash capital un- less a policy be issued upon the same within thirty days after the organi- zation of the company, upon a risk which shall be for no shorter period than twelve months. Each of said notes shall be payable, in part or in whole, at any time when the directors shall deem the same requisite for the pay- ment of losses by fire and inland navigation, and such incidental expenses as may be necessary for transacting the business of said company. And no note shall be accepted as part of such capital stock unless the same shall be accompanied by a certificate of a justice of the peace of the precinct where the person making such note shall reside, that the person making the same is, in his opinion, pecuniarily responsible for the same, and no such note KENTUCKY. 141 shall be surrendered during the life of the policy for which it was given. Mutual fire insurance companies organized under this law, or any law of this State, may charge and collect in advance upon their policies a full an- nual premium in cash, but such policies shall not compel subscribers, in- sured or assured, to renew any policy nor pay a second or further annual or term premiiun. Any such company, in its by-laws, and in its policies, may fix, by a uniform rule, the contingent mutual liability of its members for the payment of losses and expenses, and such contingent liability, shall not be less than three nor more than five annual cash premiums, as written in the policy ; but such liability shall cease with the expiration of time for which a cash premium has been paid in advance, except for liability incurred dur- ing that time." EXAMINATIONS— Sec. 752. "Before granting certificates of authority to an insurance company to issue policies or make contracts of insurance, he shall be satisfied, by such examination and evidence as he sees fit to make and require, that such company is otherwise duly qualified under the laws of the Commonwealth to transact business therein. As often as once in four years he shall, personally or by his deputy or chief clerk, or by some competent person appointed by him for the purpose, visit each domestic insurance company and thoroughly inspect and examine its affairs, espe- cially as to financial condition and ability to fulfill its obligations, and whether it has complied with the laws. He shall also make an examination of any such company whenever he deems it prudent so to do, or upon the request of five or more of the stockholders, creditors, policyholders, or per- sons pecuniarily interested therein, who shall make affidavit of their belief, with specifications of their reasons therefor, that such company is in an un- sound condition. Whenever he deems it prudent for the protection of policyholders in this Commonwealth, he shall, in like manner, visit and ex- amine, or cause to be visited and examined, by some competent person he may appoint for that purpose, any foreign insurance company applying for admission, or already admitted, to do business by agencies in this Common- wealth." Expenses must be borne by the company. "Whoever, without justifiable cause, refuses to appear and testify, when so required, or ob- structs the Commissioner in the discharge of his duty, shall, for each offense, be punished by a fine not exceeding $1000, or by imprisonment not exceeding one year ; and if the directors, officers or agents of any foreign company shall refuse to appear and testify when so required, the Insurance Commissioner shall revoke the certificate of authority and license of such company and its agents." Penalty for obstruction of examination, fine of not over $1000, or imprisonment for not more than one year. FEES — For filing copy of charter or articles of incorporation or declaration of intention to form company, $30; annual statement, $25; license to each agent and certificate of seal of office, each, $3; for filing declaration of intention to form an insurance company, $30; any additional or supple- mental statements for the same year, $25 ; seal of office, $1 ; copies of any 142 FIRE INSURANCE LAWS, TAXES AND FEES. paper on file or deposit, per folio, 20c. ; for filing home office statement of foreign company, $25. Fees payable to Insurance Commissioner. Assess- ment or co-operative companies pay : For filing articles of incorporation, $10; for filing annual statement, $10; for any change of territory and filing papers and keeping records of same, $5. FIRE DEPARTMENT TAX— No provision. FIRE MARSHAL — Provision is made for investigation of fires. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— No express provision. Statements required by the Insurance Commissioner under dis- cretionary power vested in him. IMPAIRMENT — Sec. 695. "When the net assets of any company incorporated in this State do not amount to more than four-fifths of its paid-up capital, it may make good its capital to the original amount by assessment of its stock. * * * jf sm-h company shall not, within three months after notice from the Insurance Commissioner to that effect, make good its capi- tal as aforesaid, or reduce the same as allowed * * *^ its authority to transact new business shall cease." Penalty for failure of agent to notify persons insured by them of the suspension of the company, fine of $50 to $100 for each offense. Agents are forbidden to transact business for an outside company whose capital is impaired twenty per cent, while such deficiency shall continue, unless it shall be repaired within sixty days. INVESTMENTS PRESCRIBED— Sec. 625. "The capital stock and accumu- lations of all insurance corporations may be invested in bonds and mort- gages, lien notes or deeds of trust on unencumbered real estate, worth fifty per cent more than the sum loaned thereon, exclusive of buildings, unless such buildings are insured, and the policy transferred to said company, and continued in force so long as the loan continues, and, also, in the bonds of this State and of other States of the United States, or in the bonds of the United States, and, also in the bonds of any county, city, town, town- ship or school district, of this State or other States of the United States, authorized to be issued by the Legislature thereof, and also in the stocks of incorporated State banks and trust companies, and of National banks of this State and other States of the United States, and in the bonds of rail- roads of this State and other States of the United States, and in the bonds or stocks of any bridge, water, street railroad, traction, gas, or electric corporations of this State or of other States of the United States, which shall have a market value of not more than twenty per cent below par, and to lend the same, or any part thereof, on the security of such bonds and stocks, or of bonds and mortgages and deeds of trust as aforesaid ; and to change and reinvest the same as occasion may from time to time require ; and in all investments made upon mortgage securities the evidence of the debt and value of the property shall accompany the mortgage. No insur- ance company shall own more than one-third of the capital of any bank or corporation, nor invest in, nor loan on, the stocks and bonds, both included, of any one railroad company, more than one-seventh of its capital stock KENTUCKY. 143 and accumulated funds, nor in the aggregate shall the investment in and loan on all railroad property exceed one-half of its capital and accumulated funds, nor invest in nor loan on the stock and bonds, both included, of any one street railroad or traction corporation more than one-seventh of its own capital stock and accumulated funds, nor in the aggregate shall the invest- ment in and loan on all street railroad and traction property exceed one- half of its capital and accumulated funds, nor shall the loans on mortgage of real estate, exclusive of lien notes, exceed three-fourths of the capital and accumulated funds of any company organized under the laws of the Commonwealth. Insurance companies, chartered by this State, and now doing business, shall not be compelled to change any investment heretofore legally made." Company may own such real estate as is necessary for the convenient transaction of its business, and for not longer than 5 years, such as has been taken in payment of debts or under foreclosure. LICENSED BROKERS— Sec. 698. "The Insurance Commissioner, upon the payment of a fee of $25, may issue licenses to citizens of this Common- wealth, subject to revocation at any time, permitting the person named therein to procure policies of fire insurance on property in this Common- wealth in foreign insurance companies not authorized to transact business in this Commonwealth. Before the person named in such license shall procure any insurance in such companies on any property in this Commonwealth, he shall in every case execute and file with the Insurance Commissioner an affidavit that he is unable to procure, in companies ad- mitted to do business in the Commonwealth, the amount of insurance neces- sary to protect said property, and shall only procure insurance under such licenses after he has procured insurance in companies admitted to do busi- ness in this Commonwealth to the full amount which said companies are willing to write on said property. Each person so licensed shall keep a separate account of the business done under the license, a certified copy of which account he shall forthwith file with the Insurance Commissioner, showing the exact amount of such insurance placed for any person, firm or corporation, the gross premiums charged thereon ; the companies in which the same is placed ; the date of the policies, and the term thereof ; and also a report in the same detail, of all such policies canceled, and the gross return premium thereon ; and before receiving such license, shall execute and de- liver to the Insurance Commissioner a bond in the penal sum of $2000, with such sureties as the Commissioner shall approve, with a condition that he will faithfully comply with all the requirements of this section, and will file with the Insurance Commissioner, in July in each year, a sworn state- ment of the gross premiums charged for insurance procured and placed, and the gross return premiums on such insurance canceled under such license during the year ending on the thirtieth day of June last preceding, and, at the time of filing such statement, will pay into the Treasury of the Commonwealth a sum equal to four per centum of such gross premiums, less such return premiums so reported." 144 FIRE INSURANCE LAWS, TAXES AND FEES. LIMIT ON A SINGLE RISK— Must not exceed ten per cent on its paid-up capital and surplus. Sec. 687. "* * * if the directors allow to be in- sured on a single risk a larger sum than the law permits, they shall be liable for any loss thereon above the amount they might lawfully insure. If a company is under liability for losses equal to its net assets, and the president and directors, knowing it, make or assent to further insurance, they shall be personally liable for any loss under such insurance." LLOYDS — The word "company" used in the law is deiined to mean "any asso- ciation, individual, corporation, company, partnership or joint stock com- pany" engaged in the business of insurance. See "Taxes." MISCELLANEOUS — Policies of stock companies must show upon their face that they are stock policies. MUTUAL COMPANIES— See Domestic Companies. A mutual company of another State must have $150,000 of net assets. Companies are not per- mitted to transact business upon both stock and mutual plans ; and mutual companies' documents must bear the word "mutual." An assessment or co-operative company may be organized by twenty-five persons owning $50,000 worth of property. PRELIMINARY DOCUMENTS— Copy of charter and financial statement as of December 31 preceding, must be filed. Foreign companies must file copy of charter, certified to by custodian of original ; home office statement (also required and annually thereafter); certificate of deposit; original power of attorney to United States manager, authorizing him to act for the company in this country; resolutions of board of directors authorizing service of process upon Insurance Commissioner or upon any agent of the company in the State. (All original documents.) Certificate of com- pliance with laws of home State not required annually. Articles of incor- poration and certificate of deposit (of foreign company) need be filed but once. PUBLICATION — No requirement. Advertisements must, when they show a company's assets, show its liabilities "with equal conspicuousness" ; and when capital is advertised, only the paid-up portion shall be published. RECIPROCAL LAW— Art. IV., Sec. 637. "When by the laws of any other State any taxes, fines, penalties, deposits of money, or of securities, or other obligations, prohibitions or requirements, are imposed upon insurance com- panies organized or incorporated under any general or special law of this State, transacting business in such other State, or upon the agents of such insurance company, greater than those imposed upon similar companies by the laws of this State, or when such laws of other States shall require insurance companies of this Commonwealth to deposit money or security for the benefit or protection of citizens of such other States, or when the laws of any other State, or the officers thereof, shall prohibit companies of this Commonwealth from transacting business in said State without a special examination of said companies, or a computation of their liabilities by the officers of said State, the same taxes, fines, penalties, deposits. KENTUCKY. 146 examinations, obligations and requirements shall be imposed upon all in- surance companies doing business in this State, which are incorporated or organized under the laws of such State, and upon their agents. REINSURANCE — No restriction of reinsurance to authorized companies, but no credit is allowed for reinsurances in unauthorized companies. Rein- surances must be reported. REINSURANCE RESERVE— Fifty per cent of gross premiums received or receivable upon unexpired risks, running one year or less ; pro rata on risks for longer terms ; entire premium on marine risks. RESIDENT AGENTS— See "Taxes." SEMI-ANNUAL STATEMENTS— Not required. STANDARD POLICY— No requirement. TAXES — Law of March 15, 1906. Subdivision VI., Sec. i. "Every insurance company, other than life insurance companies and assessment casualty com- panies not organized under the laws of this State but writing policies or contracts of insurance on property located in this State, or doing business therein, shall on the thirty-first day of December of each year, or within thirty days thereafter, return to the Auditor of Public Accounts, for deposit in the Insurance Department, a statement made under oath of all pre- miums received for the twelve months preceding on policies or contracts of insurance written by the local resident agents, and shall give the amount of premiums received by each local agency, and the losses paid thereon, and shall at the same time pay into the State Treasury a tax of $2 upon each $100 of premiums received; and shall also make a statement in detail under oath of all premiums received for the twelve months preceding on policies or contracts of insurance covering property located in this State, written either at the home offices, branch offices, by brokers, or by non-resident agents or by reinsurance of companies not au- thorized to do business in Kentucky, and also make a statement in detail of the losses paid under such policies, and shall at the same time pay into the State Treasury a tax of $2 upon each $100 of premiums so received, if not paid within thirty days, a penalty of $5 additional of each $100 of the gross premium shall attach. Said statements of insurance written by other than authorized local agents duly licensed by the State of Kentucky shall show each policy written, its number, the assured, date, expiration, amount, rate and premium and the kind and location of the property insured." Sec. 2. "Any company or association as contemplated in this subdivision, failing or refusing to make such report and to furnish all data and information as required in sections of subdivision 5 and Section i of subdivision 6 of this article, shall be deemed guilty of a misdemeanor, and, on conviction, be fined not less than $100 nor more than $500 for each oflFense." Sec. 3. "That all mutual assessment companies, associations, individual firms, underwriters or Lloyds not organized under the laws of the State of Kentucky, but having resident members doing business therein, and who shall enter into contracts of 146 FIRE INSURANCE LAWS, TAXES AND FEES. insurance with each other, or into agreements to indemnify each other against losses by fire, Hghtning, wind storms or other casualties, for which there is no premium charged or collected at the time the insurance is made, shall be deemed to be doing an insurance business in this State, and shall annually on the first day of July, or within thirty days thereafter, pay into the Treasury as a license tax, a tax of $2 upon each $100 of assessment paid or collected in any one year ; each resident member shall be liable to the State for the license tax and all interests and penalties. Any person, company or association, as provided for in this section, that fails or refuses to make a report giving all the data and information necessary to determine the amount of revenue due, or that fails to make the necessary report as provided for in this section, or that fails to pay the tax due thereon, shall be deemed guilty of a misdemeanor and, upon conviction, be fined not less than $100 nor more than $500 for each offense. The Franklin Circuit Court is hereby given jurisdiction of any and all actions that may be brought under this section." Sec. 4. "That all persons, companies, associations or corporations residing or doing business in this Commonwealth that enter into any agreements with any insurance company, association, individual firm, underwriter, or Lloyd, not authorized to do business in this State by the Insurance Department thereof, whereby said person, company, asso- ciation or corporation shall enter into contracts of insurance with the said unauthorized association, individual firm, underwriter, or Lloyd, to in- demnify against losses by fire, lightning, windstorms or other casualties for which there is a premium charged or collected, the said person, com- pany, association or corporation shall, annually, on the first day of July, or within thirty days thereafter, return to the Auditor of Public Accounts for deposit in the Insurance Department, a statement under oath of all net premiums paid or charged for the twelve months preceding on policies or contracts of insurance taken by said person, company, association or cor- poration, and shall at the same time pay into the State Treasury a tax of $2 on each $100 of net premiums paid. Any person, company, association or corporation failing or refusing to make such report and to furnish all the data and information that may be required by the Insurance Commis- sioner to determine the amount due, shall be deemed guilty of a misde- meanor and, upon conviction, be fined not less than $100 nor more than $500 for each offense. The Franklin Circuit Court shall have jurisdiction of all prosecutions under this article." Fire marshal tax, one-third of one per cent on gross premiums. See "Tax Statements." Domestic companies pay an organization tax of one-tenth of one per cent on capital and on subsequent increases thereof. No credit on taxes for reinsurances in unauthorized companies. Penalty for acting for a company in default for taxes or fees, fine of $50 to $100, and imprisonment for 30 to 50 days. TAX STATEMENTS— Law of March 15, 1906. Subdivision IV. "Every insurance company, other than life insurance companies, and all fire insurance companies, not organized under the laws of this State, KENTUCKY. 147 but doing business therein, shall, on the thirty-first day of De- cember in each year, or within thirty days thereafter, return to the Auditor of Public Accounts, for deposit in the Insurance Department, a statement under oath, of all premiums received in this State, or out of this State, on business done in this State during the year ending on the thirty- first day of December last preceding or since the last returns were made, and shall give the name and location of, and the amount of premiums re- ceived by each agent, and losses paid at each agency, and shall at the same time, pay into the State Treasury a tax of two dollars upon each one hun- dred dollars of said premiums so ascertained, less returned premiums on canceled policies and reinsurance in companies having authority to transact business in this State, and upon payment file a statement thereof with the Secretary of State." Subdiv. V. Sec. i. "Any insurance company fail- ing or refusing for thirty days to return the statement required, under the oath of some principal officer or general agent or manager of the State, and to pay the tax required, shall forfeit $ioo for each offense, and it shall be the the duty of the Insurance Commissioner to revoke the authority of such company or its agents, and to publish such revocation in some newspaper of this Commonwealth." Sec. 2. "Any insurance company that has been authorized to transact business in this State shall continue to make the reports required herein as long as it col- lects any premiums as provided for herein, and shall pay taxes thereon, even after it has voluntarily ceased to write insurance in the State, or has withdrawn therefrom, or its license suspended or revoked by the Insurance Commissioner, and for failure to make report of the premiums collected and pay the taxes due thereon, shall be fined $500 for such offense." Sec. 3. "Any company or association, as contemplated in the preceding sections, faiUng or refusing to return the statement, or pay the taxes as herein required, shall be deemed guilty of a misdemeanor, and, on conviction, be fined $1000 for each offense. If any officer of any of the companies or associations mentioned in this article shall make any false statement in any report herein required, he shall be deemed guilty of per- jury, and, on conviction, be punished accordingly." Sec. 4. "The Frank- lin Circuit Court shall have jurisdiction of all prosecutions under this article." Sec. 5. "The Auditor of Public Accounts may, by action, sue for and recover, in the name of the Commonwealth of Kentucky, all taxes due the State under this article, and the Franklin Circuit Court shall have jurisdiction of such action." VALUED POLICY — Sec. 700. "That insurance companies that take fire or storm risks on real property in this Commonwealth shall, on all policies issued after this act takes effect (in case of total loss thereof by fire or storm), be liable for the full estimated value of the property insured, as the value thereof is fixed in the face of the policy ; and in cases of partial loss of the property insured, the liability of the company shall not exceed the actual loss of the party insured ; provided, that the estimated value of the 148 FIRE INSURANCE LAWS, TAXES AND FEES. property insured may be diminished to the extent of any depreciation in the value of the property occurring between the dates of the policy and the loss ; and, provided, further, that the insured shall be liable for any fraud he may practice in fixing the value of the property, if the company be misled thereby." COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. ADAIRVILLE — For each company, $2.50, payable January i, AUBURN — For each company, $5, payable January i. AUGUSTA— For each company, $5. BARDSTOWN— For each agent, $5. BEREA — For each company, $10. BOWLING GREEN— For each company, $25.50, payable May i. BURGIN — For each company, $10 per annum. CAMPBELLSVILLE — For each company, $10, upon commencing business. CARLISLE — For each company, $10, payable January i. CARROLLTON — For each company, $15; for each agent, $5, payable May i. CATLETTSBURG — For each company, $10, payable July i. CHERRY VALE — For each company, $12, payable semi-annually, January i, July I. CLINTON — For each company, $10; licenses expire March 10. COVINGTON — For each company, one and one-half per cent on net pre- miums of calendar year, payable before May i. CYNTHIANA — For each company, $15, payable January i. DANVILLE — For each company, $10. DAYTON — For each agent, $5, payable May i. DOVER — For each company, $5, payable January i. ELKTON — For each company, $8.50. EMINENCE — For each company, $10, payable January i. FALMOUTH — For each agent for each company, less than five, $5; five companies or more, $25. FLEMINGSBURG — For each company, $20, payable January i. FRANKFORT — For each company, $25 ; for each agency, $10 ; payable June r. FRANKLIN — For each company, $to, payable January i. FULTON — For each company, $5.50. GEORGETOWN — For each company, $12.50, payable January i. GLASGOW — For each company, $10.50, payable May 15. GREENVILLE — For each company, $5.75, payable in advance. HARRODSBURG — For each company, $10, payable January i. HARTFORD — For each non-resident agent, $25. HENDERSON — For each company, $10, payable May i. HICKMAN — For each company, $15.50. HODGENVILLE — For each company, $5, payable May i. KENTUCKY. 149 HOPKINSVILLE — For each company, $12.50, payable January i. JUNCTION CITY — For each company, $5.25, payable January i. LANCASTER — For each company, $5, payable January i. LA GRANGE — One per cent of premiums. LAWRENCEBURG— For each company, $5, payable July i. LEBANON — For each company, $10. LEXINGTON — On gross receipts, less than $1000, each company, $25 ; $1000- $2000, $50; $20oo-$40oo, $100; $4000-$6ooo, $150; $6ooo-$io,ooo, $200; over $10,000, $250. LIVERMORE — For each company, $5 ; for each agent, $5, payable July i. LOUISVILLE — Two and one-half per cent on premiums to Sinking Fund, payable February i. First year's license, $50 (or proportional part to January i ) . Also salvage corps. MADISONVILLE— For each company, $3.25. MAYFIELD — For each company (regardless of number of agents), $10. MAYSVILLE — For each company, $30.50, payable December 31. MIDDLESBORO — For each company, $10, payable July i. MIDWAY — For each company, $5, payable January i. MILLERSBURG — For each company, $5, payable January i. MOUNT STERLING— For each company, $15.50, payable January i. NEW CASTLE^For each company, $5. NEWPORT — Two and one-half per cent on gross premiums, in advance, based on previous year's business, payable May i. NICHOLASVILLE— For each agent, $6. OWENSBORO — On receipts, $1000 or less, $10; $iooo-$200o, $15; $2000- $3000, $25 ; over $3000, $35, payable May i. PADUCAH — For each company i per cent on premiums, minimum, $15. PARIS — For each company, $15. RICHMOND — For each company, $15, payable July i. RUSSELLVILLE — For each company, $10, payable January i. SHELBYVILLE — For each company, $15, payable July i. SOMERSET— For each company, $6. SPRINGFIELD— For each agent, $5.25, payable April i. STANFORD— For each company, $10. VERSAILLES— For each agency, $5, payable April i. WINCHESTER — For each company, $20.50, payable May I. LOUISIANA. STATE REQUIREMENTS. AGENTS DEFINED — Sec. 23. "Any person who solicits insurance for a con- sideration on behalf of any insurance company, or transmits for a person other than himself an application for, or a policy of insurance to, or from, such company, or offers or assumes to act in the negotiation of such insur- ance, shall be deemed an insurance agent within the intent of this act, should he receive from the company any compensation whatsoever, either for himself or for any other person, partnership or corporation, and shall thereby become liable to all the duties, requisitions, liabilities and penalties to which an agent of such company is subject." AGENTS' LICENSES— Act. 167, Laws of 1902, Sec. 4. "* * * That no person shall act as agent, solicitor or representative of any insurance com- pany, corporation or association, partnership or combination of persons incorporated, organized, associated or combined by virtue of the laws of this State or any other State of the United States or any foreign country, directly or indirectly taking risks or transacting any kind or form of insurance business in this State without being provided with a certificate of authority from the Secretary of State showing him to be duly authorized to act as such agent, representative or solicitor of duly authorized com- pany, corporation or association." Penalty for acting as agent without procuring certificate of authority, or acting as agent after certificate of authority has been revoked, a fine of not less than $100 nor more than $300, or imprisonment for not less than thirty days, nor more than ninety days upon conviction before a court of competent jurisdiction. Certificate shall continue in force until the thirty-first day of March next after its issue, unless revoked for cause. It is held that an agent must hold a certificate for each and every company in which he places a risk. An agency cor- poration is licensed as a firm, and a certificate is not needed for each officer or member of said firm. Applications for licenses must be made by com- pany officers, under seal, by March 31 of each year. ANNUAL STATEMENTS— Must be filed by February 28. See "Publication." Penalty for false advertisement of financial condition, $100 for first offense; $300 for each subsequent offense ; for making false reports or entries with intent to deceive, imprisonment for from one to three years. ANTI-COINSURANCE— An anti-coinsurance law passed in 1908 prohibits absolutely the use of the coinsurance or any similar clause in policies on immovable property, but specially permits its use in policies on movable property, requiring, however, that any policy containing such clause shall have stamped upon its face and back a statement to the effect that "this policy is issued subject to the conditions of the coinsurance clause at- tached hereto." LOUISIANA. 151 ANTI-COMPACT— Act no of 1900, Sec. i. "It shall be unlawful for any fire insurance company, association or partnership, doing a fire insurance business in this State, to enter into any combination or compact with other fire insurance companies, associations or partnerships, or to acquire or to allow their agents to enter into any combinations or compact with other fire insurance agents, companies, associations or partnerships for the pur- pose of governing, controlling or influencing the rates charged for insur- ance charged on property situated in this State." Companies may employ a common agent to "supervise and advise of defective structures or to sug- gest improvements to lessen fire hazards," but the purchase of rate books is deemed a violation of law. Affidavit of compliance must be filed an- nuall}' before December i. Penalty for violation, revocation of license for balance of its term and for one year thereafter. Premiums received after such revocation must be returned. A law permitting a fire prevention bureau was passed in 1904. This makes it lawful for the bureau to indi- cate on its advisory inspection reports the "basis cost of the risk to be assumed, and the relative measure which each defect bears to the fire hazard as a whole, and the consequent proportionate value of each improve- ment suggested to minimize the chances of fire, so that each assured may be correctly informed as to the relative importance of each defect found in his risk." Schedules of defects must be furnished propertyowners, gratis, on request. Foreign companies are forbidden to enter into agree- ments relative to the compensation of their agents. ANTI-REBATE — Sec. 5. "The payment of any commission, brokerage or re- bate on any business to any but the authorized agent or representatives of any company legally authorized to do business in this State is expressly prohibited. Any violation of this section will be punished by a fine of not less than $100 nor more than $250 for each separate offense." The Kaliski bill, which became a law in 1908, authorizes Louisiana agents to divide commissions with agents of other States. ATTORNEY — The Secretary of State must be authorized to accept service of legal process. CANCELLATION OF POLICY— The standard policy requires five days' notice to insured. CAPITAL REQUIRED — Stock companies must possess a paid-up capital of not less than $200,000. Mutual companies must have cash assets equal to $200,000. COMMISSIONS TO NON-RESIDENTS— Commissions must be paid to resident agents; but agents may divide their commissions with duly au- thorized agents in other States. DEPOSIT — Each company must deposit an individual or surety bond for $20,000 for the protection of Lousiana policyholders. Foreign companies must have $200,000 deposited in Louisiana or some other State. (No re- quirement as to nature of investments.) DOMESTIC COMPANIES — Any number of persons, not less than fifteen. 152 FIRE INSURANCE LAWS, TAXES AND FEES. citizens of the United States and residents of this State, may form an in- surance company on the stock plan, to insure fire, marine and river risks. A capital of $200,000 must be subscribed ,and fifty per cent of same paid in before commencement of business, and the whole capital must be paid in within one year from date of charter. Copy of charter must be filed, and company must be examined before it is licensed. No dividends shall be declared except from surplus profits, under penalty of $1000. EXAMINATIONS — Sec. 14. "As often as once in every three years, or oftener, if in the judgment of the Secretary of State there should arise a necessity, the Secretary of State may personally, or by his assistant, or by one or more competent persons appointed by him, and who are not officers of, or connected with, or interested in any insurance corporation doing business in this State, other than as policyholders, visit each insurance com- pany organized under the laws of this State, and thoroughly inspect and examine its affairs, especially as to its financial condition and ability to fulfil its obligations, and whether it has complied with the laws. He may also make an examination of any such company whenever he deems it pru- dent to do so upon the request of five or more of its stockholders, creditors, policyholders or persons pecuniarily interested therein, who shall make affidavit of their belief, with specifications of their reasons therefor, that such company is in an unsound condition. For the purposes aforesaid, the Secretary of State or his assistant, or the person or persons employed as aforesaid, making the examination, shall have free access to all the books and papers of an insurance company that relates to its business, and to the books and papers kept by any of its agents, and may summon and qualify as witnesses, under oath, and examine the directors, officers, agents and trus- tees of any such company, and any other person or persons, in relation to its affairs, transactions and conditions. If, after such an examination, he is of the opinion that the company is insolvent, or has exceeded its powers, or that its condition is such as to render its further proceedings dangerous, he shall at once call upon the board of directors to take such steps as may be necessary to restore the company to a solvent condition." Penalty for refusing to permit an examination, revocation of license. FEES — ^"For each and every certificate to any instrument of writing, or other- wise, where the seal of his office is affixed, one ($1) dollar. For recording, or copying, twenty-five (25) cents per hundred words. For examina- tion of charter of domestic company, twenty-five ($25) dollars. For each and every certificate of authority or compliance to a company or association, ten ($ro) dollars ; for each agent's certificate (a firm being considered as one), two ($2) dollars ; filing annual statement, fifteen ($15) dollars ; filing any additional paper required by law, twenty-five (25) cents. Every coin- pany organized under the laws of anv other State and admitted to transact business in this State, and each agent of every such company, shall pay the same fees to the Secretary of State of this State as are imposed, or would be required, by such other State of any similar companies incorporated by, or LOUISIANA. 153 organized under, the laws of this State, or upon the agents of any such com- panies transacting business in such other State. Foreign companies shall pay fees the same as imposed on such companies by the State where its de- posit of $200,000 in the United States has been made." FIRE DEPARTMENT TAX— Governed by reciprocal law. FIRE MARSHAL — Investigation of fires is provided for, and a tax of two- fifths of one per cent is levied on gross premiums to defray fire marshal's and State Insurance Rating Board's expenses. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— None re- quired. GENERAL PENALTY — For violations of law not specifically provided for, fine of $roo to $500. IMPAIRMENT — Sec. 8. "If it appears to the Secretary of State from any statement made to him, or from an examination made by him, or by any examiner appointed by him, that the capital stock of any insurance company organized under the laws of this State is impaired to the extent of twenty- five (25) per cent thereof, or that its assets are insufficient to justify its continuance in business, he shall determine the amount of each impairment or deficiency and issue a written requisition to the corporation to require its stockholders to make good the amount of the impairment, or deficiency, within such period as he may designate, not more than ninety (90) days from the service of such requisition. If the amount of any such impairment or deficiency shall not be made good within the time specified in such requi- sition the corporation shall be deemed insolvent, and may be proceeded against as an insolvent corporation by the Secretary of State." INSURANCE IN UNAUTHORIZED COMPANIES— Sec. 20. "* * * The Secretary of State, upon the annual payment of $20, may issue to any person, corporation, or partnership having property in this State, a cer- tificate of authority, subject to revocation at any time, permitting the per- son, corporation, or partnership named therein, to procure policies of insur^ ance on property, his own or their own, located in this State in companies which are not authorized to do business in this State. Whenever a person, corporation or partnership holding such certificate of authority shall procure any insurance under, or by virtue of, such certificate of authority, within thirty days from the date of applying for same, the said person, corporation or partnership shall report same to the Secretary of State with an affidavit setting forth that after diligent effort such person, corporation or partnership was unable to procure at current rates the full amount required to protect the property owned by such person, corpora- tion or partnership from the insurance companies duly authorized to transact business in this State. And that such person, corporation or part- nership has placed with companies not authorized to do business in this State only the amount necessary to complete the sum of insurance required to protect the property after securing all of the insurance obtainable at current rates from companies authorized to do business in this State. Each 154 FIRE INSURANCE LAWS, TAXES AND FEES. person, corporation or partnership holding such certificate of authority shall file in January of each year a sworn statement giving the names of companies in which such outside insurance has been placed, the number, the amount, and the expiration of each policy, and the gross premium charged therefor, and he shall pay a tax upon such gross premium (less return pre- mium) of three per centum. All insurance policies issued on property located in this State by companies that have not complied with the require- ments of the general insurance laws of the State shall be void, except such as shall have been secured as herein set forth. Insurance companies author- ized to do business in this State, may effect reinsurance in companies not authorized to do business in this State on the same terms and conditions as are set forth in this section relating to owners of property. Any person, corporation, partnership or company applying for authority under this sec- tion shall execute and deliver to the Secretary of State a bond for such amount as the Secretary of State shall fix with such securities as he shall approve of to guarantee the faithful observance of the provisions of this law. Should any company neglect or refuse to comply with the provisions of this section, it shall be the duty of the Secretary of State to revoke its license to do business in this State." INVESTMENTS PRESCRIBED— Domestic companies may invest their capital in bonds of the United States or of Louisiana, or in the legally authorized bonds of any levee or other board in Louisiana, or in the bonds of any city in Louisiana of more than 5000 inhabitants, or in the stock of any banking or other corporation organized imder the laws of Louisiana, or of the United States, provided that such stock shall be at a premium, or in first mortgages on real estate located in Louisiana, the market value of which shall be at least double the amount loaned thereon. No company may hold more than one-fourth of the capital stock of any corporation, nor shall it lend more than forty per cent of the sum of its capital on mortgages of real estate, nor more than five per cent of the sum of its capital in one mortgage. No domestic company may deal or trade in buying or selling goods, wares or merchandise except articles insured by it on which losses are claimed, and except in replacing, rebuilding or repairing insured prop- erty, as provided in its policies, nor discount commercial or other than first mortgage paper, nor engage in anybanking business whatsoever. A domes- tic company may hold and convey real estate for the convenient accommo- dation of its business to the extent of twenty-five per cent of its capital and net surplus, but all other real estate acquired in the course of business shall be sold and disposed of within five years after it shall have acquired title to same, but in the event of its interests suffering materially on account of such forced sale the time may be extended by procuring a certificate from the Secretary of State, and in case a company does marine or inland marine business it may also acquire and hold such real property within Louisiana, or upon or in its waters, which is and may be adapted to, or available for use in protecting, storing or caring for such vessels and appliances as are LOUISIANA. 165 or may be employed for assisting the same, and may manage and dispose of such real property as if it were an incorporate owner thereof. LICENSED BROKERS— No special provision. (See "Insurance in Unau- thorized Companies.") LIMIT ON A SINGLE RISK— Ten per cent of paid-up capital and net sur- plus. LLOYDS — Lloyds associations may be authorized to transact marine insur- ance but must deposit $100,000 in cash or securities with any bank or trust company of the United States, approved by the Secretary of State of Louisiana; must file a statement; present evidences of responsibility of underwriters and show that the organization does not write more than one- fifth of the aggregate of the subscription of the several underwriters or the amount to which they may become liable on any one risk. MISCELLANEOUS. — Companies must furnish blanks for proof of loss. Penalty is provided for not paying a loss within 60 days after receipt of proof of loss. See "Standard Policy." The payment to an adjuster of any compensation in excess of a regular salary or stipend is prohibited. MUTUAL COMPANIES — Sec. 16. "Every mutual company organized upon the mutual plan shall exhibit to the Secretary of State satisfactory evidence that it has entered into a bona fide agreement with a number of persons for insurance, the premiums on which insurance shall amount to not less than twenty-five thousand ($25,000.00) dollars, of which not less than ten thousand ($10,000.00) dollars shall have been paid in cash, and notes of solvent parties secured by ample collaterals shall have been received for the remainder. No company organized on the mutual plan shall transact any more than one kind of business." PRELIMINARY DOCUMENTS— Each corporation shall file with the Secre- tary of State a copy of its sworn financial statement ; a duly certified copy of charter ; a copy of one newspaper wherein said charter shall have been pub- lished, together with affidavit from publisher ; certified copy of any amend- ments to charter ; copy of minutes of any and all meetings of stockholders or directors, signed and attested to by secretary, during which the amend- ments were made ; any and all agreements for the consolidation of corpora- tions, together with copies from the minutes of any meetings of stockholders or directors authorizing or pertaining to the consolidation, dissolution or liquidation, duly signed and acknowledged ; agreement to abide by the laws of the State ; appointment of an agent in the State, for the transaction of business, who will be responsible for the State license tax. Certificate of compliance with laws of company's home State must be filed annually with annual statement; power of attorney to Secretary of State, and copy of charter, need be filed but once. PUBLICATION — Sec. 5. "That every person acting as agent of an insurance company not incorporated by the laws of this State, and doing fire, marine or river insurance within the city of New Orleans shall, during the month of January of each year, cause a full statement, under oath, of the business 156 FIRE INSURANCE LAWS, TAXES AND FEES. of the agency, to be published in the manner and form and for the term as specified in the preceding section ; and for the neglect or refusal so to do, shall forfeit and pay into the city treasury the sum of $1000 for each and every neglect or refusal. Whenever the parent or principal office of the agency shall publish an annual statement of its affairs, the time mentioned in the first part of this section for the publication of the affairs of the agency shall be so far changed as to correspond with the annual statement of the insurance company, and shall then be published, as aforesaid, within one month from the date of the publication." The report on an examina- tion may be published if the secretary deems it to be for the public interest. Abstracts must be published, for at least thirty days, in two newspapers, showing the business done in Louisiana. Companies doing business in New Orleans must publish their statements in two New Orleans daily newspapers. No charge is fixed by law for such publication, which must be attended to by the companies. RATE SCHEDULES TO BE FILED— By a law passed in 1910, a State In- surance Rating Board was created composed of the State Fire Marshal, who acts as secretary thereof, and two other members, citizens of the State, to be appointed by the Governor, one of whom shall be chairman of the Board. This Board shall have power to decide all questions required, authorized or permitted to be passed upon by the law mentioned. The law requires that not later than March i, 191 1, each company writing fire, tornado or windstorm insurance in Louisiana, shall file with the Secretary of the State Board, general basis schedules showing the rates of premium on all classes of risks insurable by such company in Louisiana, and all charges, credits, terms, privileges and conditions which in any wise affect such rates or the value of insurance on policies issued to the assured, together with the rate of commissions paid to all agents, brokers or other representatives in Louisiana. Any one or more of such companies is au- thorized to employ for the making of such schedules and rates and the filing of same, the services of such parties as they may deem advisable for such purpose. In addition to the general basis schedules, each company is required to file not later than March i, 191 1, specific rates for each risk or class of risks provided for and derived from its general basis schedules for each city, town or municipality in Louisiana, and specific rates for each risk or class of risks outside of the cities, towns or municipalities provided for and derived from its general basis schedules, together with the rate of commissions paid to all agents, brokers or other representatives in the State. In case of its being impossible to make inspections and secure the necessary information in order to file the specific rates, the Rating Board may extend the time for filing. No change may be made in the schedules or specific rates which may be filed except after thirty days' notice by mail to the Secretary of the Board, which notice shall plainly state the changes to be made; and the Board may, in its discretion, and for good cause, allow changes to be made upon notice for a shorter period than thirty days, LOUISIANA. 167 when the Board shall, after notice to parties concerned and a hearing, de- termine that any rate made by any company in Louisiana is excessive or unreasonably high, it is authorized to direct such company to publish and file a lower rate which shall be commensurate with the character of the risk, but in every case the rate shall be reasonable, and when the rate is so determined by the Board, unless set aside by judicial action, such Board rate shall be binding on the company, and it shall be unlawful for the company to collect a higher premium rate. The Board has power at its discretion to have prepared and to publish for the information of the public, specific schedules of fire, tornado and windstorm insurance rates which shall be by said Board determined reasonable for the maximum premium rate that can be charged by any company doing business in Louisiana, covering all of the risks on property located in Louisiana, or in any locality thereof. The Board shall also have power to alter, amend or revise such published specific schedules of reasonable rates, and to publish notice of such alteration, amendment or revision, but any company may revise its rates to confirm with any lower rate established by state Board applying to the same character of risks. Companies and agents must adhere to the filed schedules of rates and commissions, and re- bating of any description is prohibited. A company writing on any class of property on which there has been no rate fixed as provided in the law shall, within thirty days after writing such insurance, file a rate thereon with the Board. All schedules, etc., are open to the inspection of the public. The Board shall not make any rate, regulation, or order, without giving all licensed companies sixty days' notice thereof and an opportunity to be heard in respect to same, and the actions of the Board are subjected to judicial review. Violations of the law are punishable by fines of not less than $ioo or more than $300 for each offense, and in addition, discrimination may be punished by imprisonment for thirty to ninety days. A company violating the law will have its license revoked for three months for the first offense and for twelve months for a second offense. RECIPROCAL LAW— Act 105 of 1898, Art. II., Sec. 12. "When, by the laws of any other State, any taxes, fines, penalties, licenses, deposits or other obligations or prohibitions, additional to or in excess of those imposed by the laws of this State upon companies organized under the laws of other States, and their agents, or imposed on insurance companies of this State, and their agents, doing business in such State, the same taxes, fines, penal- ties, licenses, deposits and other obligations or prohibitions shall be imposed upon all insurance companies of such States, and their agents, doing business in this State, as long as such laws remain in force. Every com- pany organized under the laws of any other State and admitted to transact business in this State, and each agent of every company, shall pay the same fees to the Secretary of State as such other State may require of any similar companies incorporated by or organized under the laws of this 158 FIRE INSURANCE LAWS, TAXES AND FEES. State, or upon the agents of any such companies transacting business in such other State." REINSURANCE — Sec. 20. "Every insurance company doing business in this State may reinsure the whole or any part of any policy obligation, in any other insurance company authorized to do business in this State. The Secretary of State shall require every year from every insurance company doing business in this State, a certificate, sworn to before a commissioner of deeds for the State of Louisiana, to the effect that no part of the business written by such company in this State has been reinsured in whole or in part by any company, corporation, association or society not authorized to do business in this State, except as hereinafter provided. This certificate shall also contain a list of all the reinsurances during the year in authorized com- panies, showing the name and amount effected in each company." Rein- surance policies need not be countersigned by resident agents. REINSURANCE RESERVE— The reserve for reinsurance must be main- tained on policies written for one year or less, at one-half of the net pre- mium; policies written for two years, three-fourths of the premium re- served for the first year and one-fourth for the second year ; three-year poli- cies, first year five-sixths of the net premium, second year one-half the net premium, third year one-sixth the net premium ; policies written for a term of four years, first year seven-eighths, second year five-eighths, third year three-eighths, fourth year one-eighth of the net premium ; policies written for five years, first year nine-tenths, second year seven-tenths, third year one-half, fourth year three-tenths, fifth year one-tenth of the net premium, RESIDENT AGENTS— Act 167, Laws of 1902, Sec. i. "* * * That any insurance company, corporation or association authorized to do business in this State, is hereby prohibited from authorizing or allowing any person, agent, firm or corporation, who is a non-resident of the State of Louisiana, to issue or cause to be issued, any policy or policies, or contracts of insur- ance, or cover on any risk or property located in the State. * * *" Sec. 2. "* * * That any person, agent, firm or corporation authorized by the Secretary of State to act as an agent, solicitor or representative of any insurance company, corporation or association in the State of Louisiana is hereby prohibited from paying directly or indirectly any com- mission, compensation, brokerage or other valuable consideration on ac- count of any policy, policies or forms of contract covering on property located in the State of Louisiana * * * to any person, agent, firm, solicitor or representative not duly authorized by a certificate from the Secretary of State to act as such agent, solicitor or representative for a company, corporation or association duly authorized to do business in the State of Louisiana." The Secretary of State may revoke the certificate of authority of any person, agent, firm, corporation or association who, upon examination, may be found guilty of violating the above act. Affidavit that no Louisiana business has been written except by resident agents, must be filed annually. Reinsurance company must have one resident LOUISIANA. 159 agent to be responsible for State license. Act of July 8, 1908. Sec. i. "That it shall be lawful for any duly authorized agent or solicitor of an insurance company, which has complied with the laws of this State, to divide his commissions or compensations from the premiums collected on policies, or other forms of contracts of insurance, covering on property located in the State of Louisiana, with any agent or solicitor who has been duly authorized under the laws of other States to act as agent or solicitor in such other States ; provided that nothing herein shall be con- strued so as to permit companies to write business except through the duly authorized resident agents of this State." Sec. 8 of Act 171 of 1898 provides that, "Whenever any company negotiating insurance effects a reinsurance of any part thereof, otherwise than through licensed resident agents, the entire tax thereon shall be paid by the original insuring com- pany and the tax collector shall make no deduction on account of such reinsurance." RETURN OF PREMIUMS— Sec. 15. "Upon the adjustment and settlement of a loss under a policy of fire insurance, the assured shall be entitled to recover, in addition to the sum of the loss agreed upon, the return of the premium paid under the said specific policy on the excess between the sum of the amount insured and the sum of the amount ascertained to be due, with legal interest from the date of the payment of the premiums." SEMI-ANNUAL STATEMENTS— Not required. SPRINKLER INSURANCE — Sec. 13. "All insurance companies authorized to transact fire insurance business in this State, may, in addition to the business which they are now authorized by law to do, insure sprinklers, pumps and other apparatus for extinguishing fires, against damage; loss or injury resulting from accidental causes, other than fire; and may also in- sure any property which such companies are authorized to insure against loss or damage by fire, against damage, loss or injury by water or other- wise, resulting from the accidental breaking of, or injury to, such sprink- lers, pumps or other apparatus, arising from causes other than fire. Con- tracts of insurance of the kind provided for in this paragraph shall not be incorporated in any contract of insurance against loss or damage by firs, but shall be contained in separate and distinct policies." STANDARD POLICY— New York standard policy form is required to be used. A department ruling requires the following clause to be stamped upon each policy: "This contract of insurance is subject to be governed in all its parts by the provisions, terms, condition and stipulation of Act 135 of 1900, of Louisiana." A copy of the act of 1908 relating to furnish- ing blanks for proof of loss, etc., must be furnished to the insured, and is considered as a part of the contract. TAXES — Licenses. Sec. 9. "That each and every fire, marine and river insur- ance, guarantee, surety and indemnity company, society, corporation, asso- ciation, or other organization or firm, or individual, shall pay a separate and distinct license on said business for each company represented, and said 160 FIRE INSURANCE LAWS, TAXES AND FEES. license shall be based on the gross annual amount of premiums on all risks located in this State and upon risks located in other States or foreign coun- tries, upon which no license has been paid therein, as follows, to wit : First class — ^when said premiums are $300,000, the license shall be $4500; 2d class — ^premiums $280,000 or less than $300,000, license $4200 ; 3d class — premiums $270,000 and less than $280,000, license $4050; 4th class — premiums $260,000 and less than $270,000, license $3900 ; 5th class — ^pre- miums $250,000 and less than $260,000, license $3750 ; 6th class — premiums $240,000 and less than $250,000, license $3600 ; 7th class — premiums $230,- 000 and less than $240,000, license $3450; 8th class — ^premiums $220,000 and less than $230,000, license $3300; 9th class — ^premiums $210,000 and less than $220,000, license $3150; loth class — ^premiums $200,000 and less than $210,000, license $3000; nth class — ^premiums $190,000 and less than $200,000, license $2850 $190,000, license $2700 $180,000, license $2550 $170,000, license $2400 $160,000, license $2250 $150,000, license $2100 $140,000, license $1950 $130,000, license $1800 $120,000, license $1650 I2th class — premiums $180,000 and less than 13th class — ^premiums $170,000 and less than 14th class — ^premiums $160,000 and less than 15th class — premiums $150,000 and less than i6th class — ^premiums $140,000 and less than 17th class — ^premiums $130,000 and less than i8th class — ^premiums $120,000 and less than 19th class — ^premiums $110,000 and less than 20th class — ^premiums $100,000 and less than $110,000, license $1500; 21st class — ^premiums $90,000 and less than $100,- 000, license $1350; 22d class — ^premiums $80,000 and less than $90,000, license $1200 ; 23d class — premiums $70,000 and less than $80,000, license $1050 ; 24th class — premiums $60,000 and less than $70,000, license $900 ; 25th class — premiums $50,000 and less than $60,000, license $750; 26th class — premiums $40,000 and less than $50,000, license $600 ; 27th class — premiums $30,000 and less than $40,000, license $450; 28th class — ^pre- miums $20,000 and less than $30,000, license $300 ; 29th class — premiums $15,000 and less than $20,000, license $225; 30th class — ^premiums $15,000 or less, license $150." Return premiums and reinsurances in authorized companies may be deducted. For companies entering the State between January and July the license is computed upon the business done during the first two months, multiplied by six. Companies entering after July pay half-yearly license. Every municipal corporation in the State, where an agent is domiciled, has the right to demand the same amount of license as the State, but the city of New Orleans is the only municipal corporation that demands it. Sec. 30. "The State tax collectors authorized to collect licenses from insurance companies, corporations, associations or societies, in this State, shall require from each insurance company, corpora- tion, association or society applying for license, a certificate from the Secre- tary of State, showing that such company, corporation, association or so- ciety has, in all respects, complied with the laws of the State, and is legally authorized to be licensed to do business in this State." The license tax is LOUISIANA. 161 payable before March i, annually, to the State tax collector in the county in which the company's agent has his domicile. Under act 170, of 1898, all insurance companies are assessed directly upon all property owned by them in this State, except where six months' prior and continuous ownership can be shown in any holdings of national, State or municipal bonds, or stocks in any corporation whatever; in such case, such holdings are deducted from their assets or assessable property. The State tax on such property is six mills on the dollar. A tax of two-fifths of one per cent on gross premiums less return premiums and reinsurances in authorized companies is imposed to defray fire marshal's and State Insurance Rating Board's expenses. This is also payable to the State tax collector, with annual license fees. TAX STATEMENTS— Must be filed on or before February 28. VALUED POLICY — ^Act 135 of 1900, Sec. 2. "That whenever any policy of insurance against loss by fire, is hereafter written or renewed on property situated in this State, and the said property shall be totally destroyed with- out criminal fault upon the part of the insured or his assigns, the full amount of the insurance on the property so destroyed shall be paid by the insurer, and that when the said property shall be partially damaged, without criminal fault on the part of the insured or his assigns, the insurer shall pay to the insured such amount as will permit the insured to restore the damaged property to its original condition, provided that nothing herein shall be so construed as to prevent the insurer from replacing property par- tially damaged or totally destroyed at his own expense and without con- tribution on the part of the insured." Valued Policy law relates to immov- able property only (including sugar-house machinery). COUNTY TAXES AND FEES. LINCOLN PARISH— For each company, $10. RAPIDES PARISH— For each company, $5. TANGIPAHOA PARISH— For each company, $50. ST. MARY PARISH— For each agent, $5, payable in January. MUNICIPAL TAXES AND FEES. ABBEVILLE — For each company, on premiums of $15,000 or more, $30; for less than $15,000, $15. ALEXANDRIA — For each company, graded according to premiums, ranging from $40 for $2000 or more, and less than $4000 of premiums, to $200 for $15,000 or more of premiums; payable January i. BATON ROUGE— For each company, on receipts, less than $2500, $10; $25oo-$5000, $15 ; $5000 or more, $25, payable March i. BAYOU SARA— For each company, $5. CLINTON — For each company, $5, payable in January. CROWLEY — For each company, $10 (minimum). DONALDSONVILLE — For each company on premiums of $20,000 or more, $75; $10,000 to $20,000, $30; less than $10,000, $15; agent for each comoanv on oremiums of -Rev. Laws, 1905, Sec. 1635. "* * * Except as otherwise provided by law, the funds of every domestic company shall be invested in, or loaned upon, one or more of the following kinds of securities or property, and under the restrictions and conditions herein specified, viz. : i. Bonds or treasury notes of the United States, national bank notes or stock, interest bearing bonds at market value of this or any other State, or of any city, town, or county in this or any other State, or of the Dominion of Canada or any province thereof, having legal authority to issue the same, at market value, subject in every case to the same limita- tions and restrictions, according to the last assessment for taxation, which exist in this State upon issue of securities by such or like municipalities at the date of the investment. 2. Notes or bonds, approved by the Commis- sioner, secured by first mortgage on improved real estate in this or any other State, worth at least twice the amount loaned thereon, not including buildings unless insured by policies payable to and held by the security holder. 3. Stocks or bonds, at market value, approved by the Commis- sioner, upon which interest or dividends of not less than three per cent have been regularly paid for three years immediately preceding the invest- ment, of any public service corporation incorporated by or under the laws of the United States, or any State, or the Dominion of Canada, or any province thereof. * * * 5. Loans on pledge of any such securities, but not exceeding eighty per cent of the market value of any of those specified in subdivision 3 ; and in all loans reserving the right at any time to declare the indebtedness due and payable when in excess of such pro- portion or upon depreciation of security." Sec. 1615. "The real estate acquired or held by any domestic company for the convenience and accom- modation of its business shall not exceed in value twenty-five per cent of its cash assets ; nor shall any foreign company acquire or hold for like pur- poses real property in this State in greater proportion. All other real estate shall be disposed of within five years after title thereto is acquired, unless the company obtains a certificate from the Commissioner that its interests will be materially prejudiced by such sale, and extending the time to a date named, and then within the time so specified." Law of April 21, 1909. "Any domestic insurance company authorized to transact the business of fire insurance or fire and marine insurance, and lawfully trans- acting business in any foreign state or country, may invest its funds in the bonds or other equivalent obligations issued by the national government of such foreign state or country, and for the payment of which the faith and credit of such foreign state or country is pledged." LICENSES TO PLACE INSURANCE IN UNAUTHORIZED COM- PANIES — Persons may be licensed to procure policies of unau- thorized companies. Such persons must file a bond, as below, and render statements June 30 and December 31. Rev. Laws, 1905, Sec. 1649. "* * * He or they shall give bond to the Commissioner in such sum as he shall deem reasonable, with satisfactory resident sureties, conditioned that the obligors, on the expiration of a license to obtain such insurance, MINNESOTA. 211 shall pay to the Commissioner, for the use of the State, a tax of two per cent upon the gross premiums paid by such licensee." Failure to file affi- davit and statement, or making false statement, is punished by revocation of license, and constitutes a gross misdemeanor. LIMIT ON A SINGLE RISK— Rev. Laws, 1905, Sec. 1617. "* * * No fire company shall insure or reinsure in a single risk a larger sum than one- tenth of its net assets." Sec. 1637. "* * * if any of them (president and directors) insures or allows to be insured on a single risk a larger sum than is authorized by law, he shall be personally liable for any loss thereon above the amount which might lawfully be insured." "Net assets" shall mean that portion of the excess of the entire assets over its entire liabilities, exclusive of capital and inclusive of policy liability, available for the pay- ment of its obligations, including capital stock in this State, and including as assets deferred premiums on policies written within 3 months and actually in force, and in case of a mutual marine or fire and marine com- pany, its subscription funds and premium notes not more than 30 days past due and uncollected." LLOYDS — Act of 1895, Sec. 85 (as amended in 1905, by Chapter 130, S. F. No. 219). "Associations of individuals, citizens of the United States, whether organized within this State or elsewhere within the United States, formed upon the plan known as Lloyds, whereby each associate underwriter becomes liable for a proportionate part of the whole amount insured by a policy, may be authorized to transact insurance other than life in this State in such manner and on such terms as the Insurance Commissioner may direct, providing that if such organization shall be possessed of cash on hand and guaranteed subscriptions of the underwriters after deducting all jiabilities except reinsurance reserve of a sum not less than $50,000, and that the net cash on hand shall be equal to the rein- surance reserve calculated on a basis of fifty per cent of the premiums in force, and that evidence shall be furnished to the Insurance Commissioner that the underwriters are men of good financial standing, responsible for their obligations, and that the organization does not issue policies of insur- ance on any one risk in greater sums than one-fifth of the aggregate of the subscriptions of the several underwriters or the amount to which they may become liable, the Commissioner shall license them under similar require- ments as are made and prescribed in this act for the admission of foreign mutual fire insurance companies, so far as the same may reasonably apply. Said associations of individuals known as Lloyds are herein expressly au- thorized to transact insurance known as sprinkler leakage insurance." MISCELLANEOUS — Discrimination in premium rates between risks of the same class within the State, is prohibited. Immaterial misrepresentations do not void policies. Companies are forbidden to insure for more than the fair value of insured property. Removal of suits to Federal courts is prohibited. See "Guaranty Surplus and Special Reserve Funds." . MUTUAL COMPANIES — See "Domestic Companies." Mutual marine com- pany must have guarantee agreements amounting to at least $300,000. 212 FIRE INSURANCE LAWS, TAXES AND FEES. PRELIMINARY DOCUMENTS— Company must file certified copy of its charter and statement showing financial standing and business; foreign companies must file certified copy of charter; appointment of Insurance Commissioner for acceptance of service of process; financial statement; certified copy of deed of trust; certified copy of power of attorney to United States manager; certificate of compliance; certificate of deposit; accept- ance of provisions of the law. PUBLICATION — Annual statement must be published in a legal newspaper, in the place of the company's home office, if within the State, otherwise in each of the three most populous counties of the State, and in all cases at least three times, and in a daily newspaper conforming to the requirements of Sec. 5515, Rev. Laws of 1905, which will accept and publish such advertise- ment, at the rates prescribed by law for legal publications, if there be one, but if not, then in a weekly newspaper having a general circulation in the county of its publication. Publishers' affidavit must be filed. Statement for publication must be prepared by the Insurance Commissioner. Proof of publication must be filed with the Insurance Commissioner by May i, or the latter will have publication made at the company's expense. RECIPROCAL LAW— Rev. Laws, 1905, Sec. 1709. "Whenever by the laws of any other State or country, any taxes, fines, penalties, licenses, or fees, in addition to or in excess of those imposed by the laws of this State upon foreign insurance companies and their agents doing business in this State, are imposed on insurance companies of this State and their agents doing business in such State or country, or wherever any conditions precedent to the right to do business in such State are imposed by the laws thereof, beyond those imposed upon such foreign companies by the laws of this State, the same taxes, fines, penalties, licenses, fees and conditions prece- dent shall be imposed upon every similar company of such State or country and their agents doing or applying to do business in this State, so long as such foreign laws remain in force." The tax for support of salvage corps is payable absolutely, without regard to the provisions of this section. REINSURANCE— Rev. Laws, 1905 (as amended in 1907), Sec. 1617. "If any company other than life shall, directly or indirectly, eflFect the reinsur- ance of any risk taken by it, or any part thereof, it shall make a sworn report thereof to the Commissioner, at the time of filing its annual state- ment, or at such other time as he may request." Sec. 1708. "* * * Whenever it (a foreign company) effects reinsurance otherwise than through such (resident) agents, the entire tax thereon shall be paid by the original company, and no reduction shall be made on account of such rein- surance." REINSURANCE RESERVE— The reinsurance fund must be maintained at fifty per cent of the aggregate premiums on policies for one year or less, and pro rata on policies running more than one year, except upon inland and marine risks, upon which shall be charged fifty per cent of the amount of premiums written in such policies upon yearly risks and upon risks covering more than one passage not terminated, MINNESOTA. 213 and the full amount of premiums written in policies upon all other inland and marine risks not terminated. A company having less than $200,000 capital, and licensed in Minnesota to transact fire business only, must re- serve the full amount of premiums on marine and inland navigation and transportation risks. Mutual fire insurance companies with contingent liabilities must maintain a reinsurance fund of twenty-five per cent of the aggregate premiums on policies running one year or less and fifty per cent of the pro rata amount on policies running more than one year. RESIDENT AGENTS— Rev. Laws, 1905, Sec. 1708. "No foreign company shall make its insurance contracts upon lives, property or interests in this State except through lawfully constituted and licensed resident agents." SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— The use of a Standard Policy form is required. "Every company and every agent who shall wilfully make, issue or deliver a policy in violation of Sec. 1640 (which prescribes the use of the standard policy) shall be guilty of a gross misdemeanor; but every stipulation of such policy in favor of the insured shall, nevertheless, be binding upon the company issuing the same." Policy is not voided by unintentional mis- representation. No policy shall be issued for a longer term than five years. The Insurance Department has approved certain clauses for use in con- nection with the Standard Policy form. Tornado insurance rider must not be attached to a fire policy. TAXES — Two per cent of gross direct premiums received in the State, less return premiums on direct business, payable to State Treasurer on or before March i. In the case of a domestic company, this tax is in lieu of all other taxes, except taxes upon real property owned by it in the State; and in the case of a foreign company, it is in lieu of all other taxes except upon real or personal property owned by it in the State, a tax of two per cent on gross premiums for the support of a salvage corps in any city wherein such a corps is maintained, and a tax of one-quarter of one per cent to defray the expense attached to the Fire Marshal's office. No credit allowed for reinsurances, but no charge is made for reinsurance premiums received. See "Reciprocal Law." Penalty for refusal to pay taxes or fees, revocation of license. TAX STATEMENTS — Included in annual statements. VALUED POLICY— See "Anti-Coinsurance.' COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. DULUTH— Board of Fire Underwriters of the City of Duluth (fire patrol), two per cent on gross premiums. MINNEAPOLIS— Salvage Corps and Fire Patrol, two per cent on gross pre- miums. ST. CLOUD— For each company, $2. ST. PAUL — Fire Insurance Patrol, two per cent on gross premiums. MISSISSIPPI. STATE REQUIREMENTS. AGENTS DEFINED — Sec. 2615. "Every person who solicits insurance on behalf of any insurance company, or who takes or transmits other than for himself, an application for insurance, or a policy of insur- ance, to or from such company, or who advertises or otherwise gives notice that he will receive or transmit the same, or who shall receive or de- liver a policy of insurance of any such company, or who shall examine or inspect any risk, or receive, collect or transmit any premium of insurance, or make or forward a diagram of any building, or do or perform any other act or thing in the making or consummation of any contract of insurance for or with any such insurance company, other than for himself, or who shall examine into or adjust or aid in adjusting any loss for or on behalf of any such insurance company, whether any of such acts shall be done at the instance or request or by the employment of the insurance company, or of or by any broker or other person shall be held to be the agent of the company for which the act is done or the risk is taken as to all the duties and liabilities imposed by law." Penalty for knowingly procuring, by fraudulent representations, payment or obligation for payment of premium, fine of $100 to $500, or imprisonment for not more than one year. The agent is also personally liable for contracts unlawfully made. Penalty for soliciting, etc., without a license, fine of $200 to $500, or imprisonment one to two years, or both. AGENTS' LICENSES — Agents must procure certificates, renewable annually March i, from the Insurance Commissioner. Penalty for acting as agent without a license or for unauthorized company, fine of $100 to $500; for failure to exhibit license on demand, fine of $10. Applications for licenses must be made by company officers, under seal, before March i. See "Taxes." Each officer of an agency corporation, and each employee solicit- ing business for such corporation, must have a license. License required for each member of a firm. ANNUAL STATEMENTS— Must be filed by March i, under penalty of $100 for each day's neglect. Penalty for making false statement, $500 to $1000. ANTI-COINSURANCE— See "Valued Policy." ANTI-COMPACT — While the law formerly in force, which related to combi- nations of fire insurance companies for the purpose of fixing rates, was repealed, it was held by the State Auditor that the Act of March 12, 1900, which was a general law against trusts, combines, etc., included insurance companies. A law which went into effect October i, 1906, repealed the law of 1900, but virtually re-enacted it including a strict prohibition under a penalty of $200 to $5000 per day, of any combination or agreement to fix. MISSISSIPPI. 215 limit or regulate the price or premium to be paid in Mississippi for insuring property against loss or damage by fire, lightning, tornado, etc. ANTI-DISCRIMINATION— No provision. ATTORNEY — The Insurance Commissioner and some resident or residents of the State must be authorized to accept service of legal process. CANCELLATION OF POLICY— No requirement as to notice to insured. Mortgagee must be given ten days' notice. CAPITAL REQUIRED — An outside company must have at least $100,000 of actual capital. A domestic fire company must have at least $50,000, and a domestic marine company at least $25,000. Companies to insure mechanics' tools may be formed with $10,000 capital. COMMISSIONS TO NON-RESIDENTS— Payment of commissions to a non-resident agent by a resident agent, except on property of non-residents, is forbidden. See "Resident Agents." DEPOSIT— Foreign companies must have at least $100,000 deposited in som? State of the United States, invested as per "Investments Prescribed." DOMESTIC COMPANIES— Sec. 2578. "The proposed corporators, a major- ity of whom must be residents of the State and not less than ten, shall subscribe articles of association setting forth their intention to form a corporation; its proposed name must not so closely resemble the name of an existing corporation doing business under the laws of this State as to be likely to mislead the public, and must be approved by the Commissioner; the class or classes of insurance it proposes to transact and on what business plan or principle; the place within the State of its location, and, if on the stock plan, the amount of its capital stock. The words 'In- surance Company' must be a part of the title of any such corporation." After meeting and organization, certified copies of the articles of associa- tion, etc., must be submitted to the Insurance Commissioner for his ap- proval. On issuance of a certificate of approval the Commissioner shall collect a fee of $25. Capital must be paid in within twelve months, and no policies shall be issued until capital is all paid in. EXAMINATIONS — Commissioner may examine any company whenever he deems it prudent to do so, and shall examine each domestic company at least as often as once in two years. A "foreign" company shall only be examined when, upon request of the Commissioner of Mississippi, the In- surance Commissioner of the State of the domicile of such company shall refuse or fail to furnish the information called for. Penalty for refusal to exhibit books or papers, fine or imprisonment, or both. Chap. 69, Sec. 2564. "Before granting a certificate of authority to any insurance com- pany the Commissioner shall be satisfied by examination that it is qualified under the laws of the State to transact business therein, and as to its financial ability and condition as often as once in two years he shall per- sonally, or by deputy or agent, carefully examine the affairs of each domestic company." FEES — Each fire insurance company (except domestic companies paying ad yalrirpm taxes'! must nav a license fee of $200 (pro rated for portion of 216 FIRE INSURANCE LAWS, TAXES AND FEES. year, if issued after March i) ; marine company, $200. Fee for certificate of authority to each general or district agent or manager, $3 (including seal) ; for certificate of authority to each local or canvassing agent, $2 (in- cluding seal) ; filing and examining statement preliminary to admission, $20; filing and auditing annual statement, $10; for copy of annual state- ment and certificate thereto, $5 ; filing any other paper required by law, $1 ; for each certificate of examination, condition or qualification of company or association, $2; for each seal when required, $1; service of process upon ■ Insurance Commissioner as attorney, $2 ; for each examination of domestic company, $25 and actual expenses incurred ; for each examination of for- eign company, $25 per diem and actual expenses incurred ; for copy of any record paper, 10 cents per hundred words and $1 for certifying same; for organization certificate of domestic company, $25 ; for recording change of capital, $5 ; for filing copy of charter, $20 ; for license to deal with unau- thorized companies, $20 ; designation of Insurance Commissioner for serv- ice of process, $1. Fees payable to Insurance Commissioner. See "Taxes," See "Publication." FIRE DEPARTMENT TAX— No provision. FIRE MARSHAL — Provision is made for the investigation of fires of sus- picious origin, a tax of one-fifth of one per cent being levied on gross premiums to cover the expense of such investigations. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— None re- quired. GENERAL PENALTY — ^A company's license may be revoked for any viola- tion of law. For any violation of law not specifically provided for, a person may be fined not more than $500. IMPAIRMENT — None permitted under penalty of revocation of license. Impairment not exceeding twenty-five per cent may be made good within three months. INVESTMENTS PRESCRIBED— A domestic company may invest in real estate, at cost of not more than twenty-five per cent of its cash assets, for the convenient accommodation of its business. Capital may be invested by domestic companies in first mortgages on Mississippi real estate ; United States or State bonds not selling below par, or in loans secured by such bonds as collateral ; bonds or notes of any city, county or town of Missis- sippi, whose net indebtedness does not exceed six per cent of taxable values, or in any such bonds selling at a premium, or in loans secured by such bonds as collateral ; real estate, not exceeding twenty-five per cent of com- pany's net assets (except when taken under foreclosure, or for a debt) ; stocks of banks and trust companies which are worth a premium. A fire company must have $50,000 invested in the first three classes of securities before investing in others, and must not invest more than fifteen r per cent of its assets in such stocks. Accumulations of domestic compa- nies may be invested in United States, State, county or city bonds, and real estate mortgages. A license will be refused any company of any State or MISSISSIPPI. 217 country which prohibits the investment of assets other than capital in Mississippi State bonds. LICENSED BROKERS— Sec. 2609. "The Insurance Commissioner, upon the annual payment of a fee of $20, may issue licenses to citizens of this State, subject to revocation at any time, permitting the person named therein to act as agent to procure policies of fire insurance on property in this State in foreign insurance companies not authorized to transact business in this State. Before the person named in such license shall pro- cure any insurance in such companies on any property in this State he shall, in every case execute and file with the Commissioner an affidavit, which shall have force and effect for one year only from the date thereof, that he is unable to procure, in companies admitted to do business in this State, the amount of insurance necessary to protect said property, and shall only procure insurance under such license after he has procured insurance in companies admitted to do business in this State to the full amount which said companies are willing to write on said property; provided, that such licensed person shall not be required to file such an affidavit if one covering the same property has been filed within the twelve months next preceding, by any broker licensed as authorized by this chapter, nor to offer any portion of such insurance to any company which is not possessed of cash assets amount- ing to at least twenty-five thousand dollars, or one which has, within the preceding twelve months, been in an impaired condition. Each person so licensed shall keep a separate account of the business done under the license, a certified copy of which account he shall forthwith file with the Insurance Commissioner, showing the exact amount of such insurance placed for any person, firm or corporation, the gross premiums charged thereon, the companies in which the same is placed, the date of the policies and the term thereof, and also a report in the same detail of all such policies canceled, and the gross return premiums thereon, and before receiving such license shall execute and deliver to the said Com- missioner a bond in the penal sum of two thousand dollars, with such sureties as the Commissioner shall approve, with the condition that the licensee will faithfully comply with all the requirements of this section, and will file with the said Commissioner in January of each year a sworn state- ment of the gross premiums charged for insurance procured or placed and the gross return premiums on such insurance canceled under such license during the year ending on the 31st day of December next pre- ceding, and at the time of filing such statement will pay into the Treasury of the State a sum equal to four per cent of such gross premiums less such return so reported. The penalty for making a false statement shall be for- feiture of license, and a fine of not less than one hundred dollars and not more than five hundred dollars, or imprisonment for not more than one year, or both." LIMIT ON A SINGLE RISK— One-tenth of net assets. LLOYDS— Act of April 13, 1910. Sec. i. "That it shall be lawful for any 218 FIRE INSURANCE LAWS, TAXES AND FEES. corporation, partnership, individual, association or organization known as Lloyds, to solicit, sign, issue, deliver and to execute policies of insurance, contracts and guaranties against loss by fire, water, lightning or tornado; and to rate, inspect and classify risks, plants and buildings, and to adjust losses in this State when authority has been obtained from the Insurance Commissioner; and when all the laws as far as applicable relating to fire and marine insurance companies have been complied with. The taxes and fees are hereby fixed at the rate provided for stock, fire and marine insur- ance companies." Sec. 2. "The words fire and marine insurance company or fire and marine insurance corporation used in the insurance laws of Mississippi as far as applicable are defined to include all corporations, part- nerships, individuals, associations or organizations known as Lloyds engaged in placing, writing or soliciting any and all kinds of fire and marine insurance." Sec. 3. "All corporations, partnerships, individuals, associations or organizations known as Lloyds, engaged in the business of fire or marine insurance in this State, without first complying with all of the requirements of law as far as applicable relating to fire and marine insurance, shall be liable for all of the pains and penalties for any violation thereof, and shall be proceeded against as provided by the code chapter on insurance and the laws since enacted in relation thereto. Each and every stockholder, partner or subscriber to a contract of fire or marine insurance indemnity shall be deemed a local agent for the service of process, except in cases where an agent is named, in writing, to the Insurance Commis- sioner." Sec. 4. "That Sec. 2559, Code of 1906, be amended so as to read as follows: Sec. 2559. All indemnity or guarantee companies, all com- panies, corporations, partnership, associations, individuals and fraternal orders, whether domestic or foreign, transacting or to be admitted to trans- act, the business of insurance in this State^ are insurance companies within the meaning of this chapter, and shall be subject to the inspection and supervision of the Commissioner. Whenever he shall deem it proper he shall personally, or by deputy, or agent, make a careful examination of them. He shall have authority to administer oaths, to subpoena and examine under oath the assured, and the directors, officers, agents or trustees of such companies, and to compel the production for his examina- of all books and papers pertaining to their business or that of their agents. Provided, that this chapter, and the foregoing sections of this act, do not and shall not be construed to include or extend to individuals, partner- ships, associations or corporations, foreign or domestic, who seek to pro- vide indemnity among themselves from fire loss or other casualty by exchange of private contract for protection only and not for profit ; even though in the form of policies of insurance issued by such individuals, partnerships, associations or corporations ; and even though without actual capital ; and the payment by such subscribers of a sum or sums of money, by whatever name called, to the credit of such subscriber with such indi- vidual, partnership, association or corporation to cover his pro rata of MISSISSIPPI. 219 probable losses, attorneys' fees and expenses, and the making of such con- tracts of insurance to save money to such subscriber shall not be taken to be the making of such contracts for profit ; and the doing of the things set forth in this proviso shall not be construed as the doing of business of insurance in this State. Provided, further, that each subscriber making such inter-insurance contracts in this State, and also his attorney in fact, shall report, under oath, to the Insurance Commissioner the amount of such inter-insurance under such contract, and the agent or agency, resident or non-resident, employed by him in the msiking of such contract and the amount of the sum or sums of money so deposited by him remaining to his credit on the first day of February, and such sum so to the credit of such subscriber shall be taxable against the subscriber in this State at the resi- dence of the subscriber for State, county and municipal taxes, which shall be in lieu of other assessments for ad valorem taxes thereon. And said Commissioner shall certify to the tax assessor of each county and munici- pality the said amount so reported for entry on his assessment rolls; and compliance by individuals, partnerships, associations and corporations with this proviso shall constitute a compliance by them with the laws of this State. And, provided further^ that each attorney in fact employed in inter- changing such inter-insurance in this State shall pay a tax of $ioo per annum to the Insurance Commissioner and thereupon shall receive a certi- ficate from him authorizing such attorney in fact to effect the exchange of inter-insurance contracts among such subscribers and their co-sub- scribers, and the principals of such attorney in fact shall be liable for said tax ; and with the right of revocation of such certificate if said agency shall become insolvent." "Sec. 5. "That this act take effect and be in force from and after its passage." MISCELLANEOUS — Business shall be done in each company's proper cor- porate name, and policies shall be headed therewith. No policy shall con- tain any stipulation concerning the court or jurisdiction in which suit may be brought, nor any limitation of time for commencing suit to less than one year. Fire insurance companies may also transact sprinkler leakage insurance. Over-insurance and policies for longer than five years are prohibited. After a fire, the company must supply the insured with proof of loss blanks, and, after doing so, give him reasonable time in which to prepare proof. Companies must give prompt notice of fire losses to the Insurance Commissioner, and must not pay a loss in less than one week after a fire, without the Commissioner's permission. Mortgagee's interest is not invalidated by any act of mortgagor, if the former, on demand, pays the premium in case of neglect to do so by the mortgagor, and gives the company notice of any change of ownership or occupancy. Mortgagee is entitled to ten days' notice of cancellation. An adjuster for an unauthorized company acting for the latter in Mississippi shall be fined $200 to $500 or imprisoned six months to two years, or both. Penalty for removing a suit to a United States court, or for non-payment, within thirty days, of a judg- 220 FIRE INSURANCE LAWS, TAXES AND FEES. ment of a State court, revocation of license for three years. Sec. 2 of the Bulk-Sales Law of 1908 reads as follows : "That in case of the destruc- tion of a stock of merchandise by fire upon which there is insurance against such loss, the holder of such insurance policies shall, within five days after such loss, notify his creditors to whom he is indebted for merchandise, of his loss and the amount of insurance carried, and no policy or policies of insurance shall be transferred or assigned for ten days after such notice, nor shall any such insurance be paid for fifteen days next after the oc- currence of any such fire." Companies are forbidden to purchase or acquire stock, franchise, plant or equipment of any other competing cor- poration doing business in Mississippi. MUTUAL COMPANIES— No special provision. No mutual fire insurance companies can be admitted, PRELIMINARY DOCUMENTS— Company must file a copy of its charter, certificate of organization, and a verified financial statement. Foreign companies must file certificate of deposit and charter of company with the Insurance Commissioner. The Commissioner must certify to the clerk of Chancery Court of each and every county an abstract of each annual state- ment and a list of all companies authorized, at the expense of the companies. Every company must file a sworn declaration that it will not reinsure any Mississippi risk in an unauthorized company, except as provided in amend- ment to Sec. 2607. Certificate of compliance with laws of company's home State required annually, when applying for license ; charter and power of attorney to Insurance Commissioner for service of process need be filed but once. PUBLICATION — Statement must be published in one newspaper in the State ; cost of publication, $9, to be paid to publishers. Any advertisement showing assets must also exhibit liabilities, under penalty of $50 to $200. RECIPROCAL LAW— None. REINSURANCE — Sec. 2607. "Whenever an application for license, for re- newal of license or for admission to this State, is made by a company, whether of this State or another State of the United States, or of a foreign country, for the transaction of business of fire insurance herein, such com- pany shall, as one of the prerequisites of admission, file a sworn declaration signed by its president and secretary, or officers corresponding thereto, that it will not reinsure any risk or part thereof taken by it on any property located in Mississippi with any company not authorized to transact the business of fire insurance in this State; provided, that when all efforts have been exhausted and fail to place the entire line of needed reinsurance on any one risk in companies authorized to do business in this State which have representatives in the community authorized to bind such companies, at the same rate as offered by other solvent companies, the excess may be written in companies not thus authorized. In all such cases an affidiivit shall be filed by the company, or its agent, within one month from date of placing such reinsurance, with the Insurance Commissioner of this State, MISSISSIPPI. 221 giving complete list of the companies applied to for reinsurance, with the amounts accepted by each of those authorized to do business in the State, and a list also of the companies writing the excess herein provided for, with the amounts written by them respectively, and this affidavit shall be open for public inspection ; provided, further, that companies shall not be required to offer any portion of the needed reinsurance to any company which is, or has within the preceding twelve months been in an impaired condition. Reinsurance premiums paid to companies authorized to do business in Mississippi may be deducted from gross premiums in the semi- annual tax returns, when affidavits are furnished from such authorized reinsuring companies that the amounts so deducted are included in their own semi-annual tax returns, and are paid on by the authorized reinsuring company." Sec. 2608. "Every fire insurance company now or hereafter ad- mitted shall annually, and at such other times as the said Commissioner may require, in addition to all the terms now, by law, required of it, or its agents or managers, make a return to the Insurance Commissioner in such form and detail as may be prescribed by him of all reinsurance contracted for or effected by it directly or indirectly, upon property located in Mississippi, such return to be sworn to by its president and secretary, if a com- pany of any other State of the United States, and if a company of a for- eign country, by its president and secretary, or by officers corresponding thereto, as to reinsurance as aforesaid contracted for, or effected through the foreign office, and by the United States manager as to such reinsurance effected by the United States branch, and if any company, domestic or foreign, shall directly or indirectly reinsure any risk taken by it on any property located in Mississippi in any company not duly authorized to transact' business herein, except as hereinbefore provided, or if it shall refuse or neglect to make the returns required by this section, the said Commissioner shall revoke its authority to transact business in this State." See "Licensed Brokers." Reinsurance policies need not be countersigned by local agents. Penalty for violation, fine of $500. REINSURANCE RESERVE— "Actual unearned portion of the premiums written in its policies. Each company transacting a fire, marine, inland, * * * insurance business, * * * in this State, shall be required to set aside as a legal reserve to protect the holders of its policy contracts in this State the pro rata unearned portion of the premium paid for such contract, to be held until termination of such contracts." RESIDENT AGENTS— Sec. 2653. "Foreign fire insurance companies legally authorized to do business in this State through regularly commis- sioned and licensed agents located in this State, shall not make contracts of fire insurance on property herein, save through such resident agents as are regularly commissioned by them, and licensed to write policies of fire insurance in this State. No provision of this section is intended to do or shall apply to direct insurance covering the rolling stock of railroad cor- porations, or property in transit while in the possession or custody of rail- 222 FIRE INSURANCE LAWS, TAXES AND FEES. road corporations or other common carriers." Sec. 2654. "That it shall be unlawful for any agent of a fire insurance company to sign any blank policy of insurance, and any agent violating the provisions of this section shall be guilty of a misdemeanor, and, upon conviction thereof, shall be fined for each offense not less than $100 nor more than $200. It shall also be un- lawful for any person, agent, firm or corporation, licensed by the Insurance Commissioner, to act as a fire insurance agent in this State, to pay directly or indirectly any commission, brokerage or other valuable consideration on account of any policy or policies covering property in this State, to any person, agent, firm or corporation not duly licensed by the Insurance Com- missioner of this State as a fire insurance agent; provided, that insurance covering property within the State owned by non-residents and controlled by brokers or other agents duly licensed by other States, may be written, and for violation of this provision the Insurance Commissioner shall revoke such agent's license for all companies for not less than three nor more than six months for first ofifense, and for one year for second ofifense." Complaint filed by any citizen of Mississippi that any company authorized to do business in the State has violated any of the pro- visions of this act, shall be investigated by the Insurance Commissioner, who may, if necessary, repair to the head ofiSce of such company to further investigate the matter, provided that before making any examination which would require the Insurance Commissioner to go to a foreign State, the latter shall require the party or parties making complaint to file with him a good and sufficient bond to secure any expense or costs that may be necessary in making such examination. If upon examination the com- plaint is not substantiated, complainant shall be held responsible for any and all expenses incurred in making said examination, but in the event of the company being found guilty of violation of any of the provisions of this act, then the expenses incurred shall be borne by the company, and should said company refuse to pay the expenses of examination, upon presentation of bill, the Insurance Commissioner shall at once institute proceedings against said company for recovery of same, and for that pur- pose may attach any of the property of the said company to be found within the jurisdiction of the court before which such proceedings are heard. SEMI-ANNUAL STATEMENTS— See "Tax Statements." STANDARD POLICY— No provision. TAXES — Two per cent on gross, less return premiums and reinsurances in authorized companies. See "Reinsurance." "Domestic insurance com- panies shall not be required to pay a greater tax in the aggregate than is required to be paid by foreign insurance companies doing business in this State, except to the extent of their ad valorem tax over the privilege tax imposed upon such foreign companies. No privilege tax shall be paid by such domestic companies, and no tax collected on their premium receipts, but at the end of each calendar year, such companies shall make a sworn statement to the Insurance Commissioner of the total tax paid MISSISSIPPI. 223 during the year, including State, county and municipal, and if such amount be less than is required of foreign companies on the same amount of business, the said Commissioner shall then collect such part of the privilege tax of $200 imposed on foreign companies as will make the tax on the domestic company equal thereto." Agents procuring policies of unauthorized companies pay four per cent on gross, less return premiums. Fire marshal tax, one-fifth of one per cent on gross premiums, "to be collected by said Commissioner as other taxes on insurance companies are collected." Each license issued to a fire insurance corporation or as- sociation, or to any company or association of companies operating a distinct plant or agency in the State, $300 ; license to a marine company, $200. Each agent in cities of 2000 and over pays an annual privilege tax of $30; in cities of less than 2000, $15. Each member of a firm is hable for this tax. Incorporated agencies pay $100 per annum in cities of 3000 or over, or $50 in smaller cities. "No person who would otherwise be considered an agent shall be exempt from the privilege tax placed on insurance agents by this section by reason of the fact that he is a stock- holder or officer in an incorporated agency, or by reason of the fact that he represents such an agency." Each fire insurance adjuster must pay a privilege tax of $25, and no municipality shall levy any further privilege tax on said calling. No county or municipal authority shall levy a privilege tax on any insurance company or association, but, under the law, has the right to assess insurance agents fifty per cent of the privilege tax paid by the agent. The Yazoo-Mississippi Delta Levee Board also requires the payment of taxes as follows: $150 upon each fire or marine insurance company ; $100 for an incorporated insurance agency in a city of over 3000 inhabitants, and $50 for such an agency in a city of less than 3000 inhabi- tants ; $30 for a fire insurance agent in a city of 2000 or more inhabitants, and $15 for an agent in a city of less than 2000 inhabitants ; $25 for a fire insurance adjuster. The levee district consists of these counties : Desoto (part). Tunica, Coahoma, Sunflower, Tallahatchie (part), Quitman, Yazoo (part), Leflore and Holmes (part). TAX STATEMENTS — Sec. 2625. "Every general agent shall, within the first thirty days of January and July of each year, make a full and correct state- ment, under oath of himself and of the president, secretary or some officer at the home or head office of the company in this country, of the amount of gross receipts derived from the insurance business under this chapter ob- tained from residents of the State or on property located therein during the preceding six months, and shall, within the first fifteen days of February and August of each and every year pay to the Commissioner the tax here- inafter provided, upon the amount of such receipts returned." See "Licensed Brokers." VALUED POLICY— Sec. 2592. "No insurance company shall knowingly issue any fire insurance policy upon property within this State for an amount which, together with any existing insurance thereon, exceeds the fair value of the property, nor for a longer term 224 FIRE INSURANCE LAWS, TAXES AND FEES. than five years. When real property or buildings, household or kitchen furniture, insured against loss by fire and situated .within this State are totally destroyed by fire, the company shall not be permitted to deny that the property insured was worth, at the time of issuing the policy, the full value upon which the insurance was calculated'. And in case the policy contains a three-quarter valuation clause, the insurer shall not deny that the amount of the policy was but three-fourths the value at the date of its issuance, and a similar rule shall apply, it matters not what proportion the amount of insurance bears to valuation according to the terms of the policy ; but the measure of damages shall be the amount for which the property was insured. In case of partial loss or damage by fire to real property or buildings, the measure of damage shall be an amount equal to the damage done the property not to exceed the amount written in the policy." COUNTY TAXES AND FEES. GRENADA— For each agent, $30; payable May i. JACKSON— For each agent, $30. PONTOTOC— For each agent, $15; payable in May. PRENTISS— For each agent, $15. MUNICIPAL TAXES AND FEES. (Municipalities may assess in privilege taxes fifty per cent of State tax, but such tax can only be assessed by one municipality.) ABERDEEN— For each agent, $2.50. AMORY — For each agent, $5.50; license expires ApHl 30. BAY ST. LOUIS — For each agent, $12.50, payable first of month issued. BILOXI — For each agent, $15. BONNEVILLE— For each agent, $15. BROOKHAVEN — For each agent, $5 (required for each member of firm), payable September 30. BROOKSVILLE— For each agent, $7.50; payable May i. CANTON— For each agent, $12.50. CLARKSDALE — For each agent, $15 (license required for each member of firm). CLEVELAND— For each agent, $7.50. COFFEEVILLE — For each agent, $7.50, payable May i. COLUMBIA— For each agent, $3.75, payable May i. COLUMBUS— For each agent, $15. CORINTH— For each agent, $15, payable May i. CRYSTAL SPRINGS— For each agent, $10. DURANT— For each agent, $7.50, payable April i. Each member of a firm must procure a license. ELLISVILLE— For each agent, $28. FRIAR'S POINT— For each agent, $10, payable March i, GLOSTER — For each agent, $7.50, payable April i. GREENVILLE — For each agent, $30 ; for each incorporated agency, $100. GREENWOOD— For each agent, $15. MISSISSIPPI. 225 GRENADA — For each company, $ioo; for each agent, $15 ; payable May i. GULFPORT— For each agent, $15. HANDSBORO — For each agent, $2.50, payable November i. HATTIESBURG— For each agent, $15, payable May i. HAZLEHURST— For each agent, $5, payable March i. HINDS — For each agent, $30, payable July i. HOLLY SPRINGS— For each agent, $15 ; payable in May. INDIANOLA — Privilege tax, yi of State tax. ITTA BENA— For each agent, $5. JACKSON— For each agent, $15, payable July i. LAUREL — For each agency, $15, payable May i. LEXINGTON — For each agent, twenty-five per cent of State fee, payable May I. LOUISVILLE— For each agent, $15. LUMBERTON — For each agent, $12, payable March i. MACON — For each agent, $15, payable May i. McCOMB CITY— For each company, $100; for each agent, $15; payable June I. MERIDIAN — For each company, $50; for each agent, $15. MONROE — For each agent, $15 ; license expires March i. MOSS POINT— For each agent, $7.50, payable May i. NATCHEZ — For each agent, $20, payable September i to February i. NEWTON— For each company, $25; for each agent, $7.50, payable May i. OKALONA— For each agent, $7.50. OXFORD — For each company, $25 ; for each agent, $7.50. PASCAGOULA— For each agent, $15 per annum. PASS CHRISTIAN— For each agent, $5, payable May i. PONTOTOC— For each agent, $7.50; payable May i. PORT GIBSON— For each agent, $15 per annum. ROSEDALE— For each agent, $7.50, payable September i. SCRANTON— For each agent, $15, payable May i. STARKVILLE— For each agent, $15, payable in May. SUMMIT— For each agent, $10, payable March i. TUPELO— For each agent, $25. TUNICA For each agent, $5 license required for each member of firm; payable when starting business. UTICA— For each agent, $7.50, payable May i. VAIDEN — For each agent, twenty-five per cent of State fee. VICKSBURG — For each company or firm, $15, payable January i. WATER VALLEY— For each agent, $15, payable January i. WESSON— For each company, $12.50, payable May i. WEST POINT— For each agent, $12.50, payable annually on date of first license. WINONA— For each agent, $15. YAZOO CITY— For each agent, $12.50. MISSOURI. STATE REQUIREMENTS. AGENTS OF UNAUTHORIZED COMPANIES DEFINED— Sec. 7052. Any person or persons in this State who shall receipt for any money on account of or for any contract of insurance made by him or them, for any insurance company or association not at the time authorized to do business in this State, or who shall receive or receipt for any money from other persons, to be transmitted to any such insur- ance company or association, either in or out of this State, for a policy or policies of insurance issued by such company or association, or for any renewal thereof, although the same may not be required by him of them as agents, or who shall make or cause to be made, directly or indirectly, any contract of insurance for such company or association, shall be deemed, to all intents and purposes, an agent of such company or association, and shall be subject to all the provisions and regulations and liable to all the penalties provided and fixed by this chapter. * * *" AGENTS' LICENSES — Local agents and solicitors must have certified copies of company's authority to transact business as their agents. One license may be issued to a firm of two or more members. Reciprocal provision applies. Certificates expire annually February i. Penalty for acting as agent without authority, or for an unauthorized company, a fine of $10 to $100, or imprisonment for ten days to six months, or both. Incorporated agencies cannot be licensed as such. ANNUAL STATEMENTS— Must be filed during January. ANTI-COINSURANCE— Sec. 7022. "Whenever there is a partial destruc- tion or damage to property covered by insurance, it shall be the duty of the party writing the policies to pay the assured a sum of money equal to the damage done to the property, or repair the same to the extent of such damage, not exceeding the amount written in the policy, so that said property shall be in as good condition as before the fire, at the option of the insured." The insurance companies contend that this section is repealed by implication by the law of March 18, 191 1 (see "Anti-Discrim- ination" and "Rating Schedules to Be Filed"), but the Insurance Depart- ment is not convinced that this contention is correct. Sec. 7023. "No fire insurance policy which may be issued after this section takes effect shall contain any clause or provision requiring the assured to take out or main- tain a larger amount of insurance than that covered by such policy, nor in any way providing that the assured shall be liable as co-insurer with the company issuing the policy for any part of the loss or damage which may be occasioned by fire or lightning to the property covered by such policy, nor making provision for a reduction of such loss or damage, or any part MISSOURI. 227 thereof, by reason of the failure of the assured to take out or maintain other insurance on said property. And all clauses and provisions in fire policies, issued after the taking eflrect of this section, in contravention of the prohibitions in this section contained, shall be ab initio void and of no effect : Provided, that the provisions of this section shall not apply to policies issued upon personal property in cities which now contain or which may hereafter contain 100,000 inhabitants or more whenever the insured signs an agree- ment indorsed across the face of said policy to be exempt from the provi- sion thereof." ANTI-COMPACT — The Insurance Department considers that the sections quoted below may be, and probably are, repealed by the provisions of the law of March 18, 191 1. Sec. 10,299. "Any person who shall create, enter into, become a member of or participate in any pool, trust, agreement, combina- tion, confederation or understanding with any other person or persons to regulate, control, or fix the price of any article of manufacture, mech- anism, merchandise, commodity, convenience or repair, or any product of mining, or any article or thing whatsoever, of any class or kind bought and sold, or the price or premium to be paid for insuring property against loss or damage by fire, lightning or storm, or to maintain said price when so regulated or fixed, or shall enter into, become a member of or participate in any pool, trust, agreement, contract, combination, confederation or under- standing to fix or limit the amount [or] quantity of any article of manu- facture, mechanism [merchandise], commodity, convenience, repair, any product of mining, or any article or thing whatsoever, of any class or kind bought and sold, or the price or premium to be paid for insuring property against loss or damage by fire, lightning or storm, shall be deemed and adjudged guilty of a conspiracy in restraint of trade, and be punished as provided for in this act." Sec. 10,301. "All arrangements, contracts, agreements, combinations or understandings made, or entered into between any two or more persons, designed or made with a view to lessen, or which tend to lessen, lawful trade, or full and free competition in the importation, transportation, manufacture or sale in this State of any product, commodity or article, or thing bought and sold, of any class or kind whatsoever, including the price or premium to be paid for insuring property against loss or damage by fire, lightning or storm, and all arrange- ments, contracts, agreements, combinations or understandings made or entered into between any two or more persons which are designed or made with a view to increase, or which tend to increase, the market price of any product, commodity or article or thing of any class or kind whatsoever bought and sold, including the price or premium to be paid for insuring property against loss or damage by fire, lightning or storm, are hereby declared to be against public policy, unlawful and void; and any person or persons creating, entering into becoming a member of or participating in such arrangements, contracts, agreements, combinations or understandings shall be deemed 228 FIRE INSURANCE LAWS, TAXES AND FEES. and adjudged guilty of a conspiracy in restraint of trade, and punished as provided for in this act." (The word "person" is defined to include natural persons, partnerships, associations of persons and corporations.) Penalty for violation, $500 to $5000 fine, or by imprisonment for one year to five years, or both. A very comprehensive affidavit of compliance is required annually by the Secretary of State. In relation to the anti-trust law, the Secretary of State states that "in so far as the penalty section of the laws is concerned it appears to only apply to the State of Missouri, but so far as the general law applies to pools and trusts it seems to be extra-terri- torial. The law prescribes the form of the affidavit which the company is required to make and this office has no authority to accept an affidavit in form other than is prescribed by the statute." See "Anti-Discrimination" and "Rating Schedules to Be Filed." ANTI-DISCRIMINATION— Laws March 18, 191 1, Sec. 2. "All rates upon which premiums are based for insurance within the terms of this act shall be reasonable and just, and all unreasonable or unjust or discrim- inating rates are hereby prohibited and declared unlawful." See "Rating Schedules to Be Filed." ATTORNEY — The Superintendent of Insurance must be authorized to accept service of legal process. In the case of unauthorized companies, service may be made upon any person who solicits business for or otherwise acts in behalf of such company. CANCELLATION OF POLICY— No requirement as to notice to insured. CAPITAL REQUIRED — Company must possess paid-up capital of at least $200,000. COMMISSIONS TO NON-RESIDENTS— No provision. DEPOSIT — Foreign companies must have $200,000 on deposit in one of the United States, invested in securities as listed under "Investments Pre- scribed," which see. None required of American companies. DOMESTIC COMPANIES— Sec. 6995. "Any number of persons, not less than thirteen in number, a majority of whom shall be citizens of this State, may associate and form an incorporation, association or company for the following purposes, to wit : First, to make insurance on houses, buildings, merchandise, furniture and all kinds of property, against loss or damage by fire, lightning, hail and windstorm ; to make all kinds of insurance on auto- mobiles and all other cars and vehicles, ships, steamboats and other vessels and their freight and cargoes, and also on goods, merchandise, produce and all other kinds of property in the course of transportation, whether by land or water, and to lend money on bottomry and respondentia." EXAMINATIONS— Sec. 6889. "The Superintendent of the Insurance De- partment shall examine and inquire into all violations of the insurance laws of the State, and examine the financial condition, affairs and man- agement of any insurance company incorporated by or doing business in this State, and inquire into and investigate the business of insurance transacted in this State, and require any company, its officers, agents, em- MISSOURI. 229 ployees or attorneys, or other persons, to produce, and may examine all its assets, contracts, books and papers ; may compel the attendance before him, and may examine, under oath, its directors, officers, agents, employees, solic- itors, attorneys, or any other person, in reference to its condition, affairs, management or business, or any matter relating thereto ; may administer oaths or affirmations, and shall have power to summon and compel the attendance of witnesses, and to require and compel the production of rec- ords, books, papers, contracts or other documents by attachment, if neces- sary ; and shall have the right to punish for contempt, by fine or imprison- ment, or both, any person failing or refusing to obey any such summons or order of said Superintendent. The Superintendent may accept, in lieu of an examination by himself, or by his authority, a certificate of an examina- tion, accompanied by a statement of all the facts in the case made by the Insurance Commissioner or Superintendent of another State, of a com- pany organized under the laws of such State. * * * Any person testi- fying falsely in reference to any matter material to said investigation, examination or inquiry shall be deemed guilty of perjury, and in addition to the punishment for contempt, in refusing to attend or to answer, or to produce books and papers, any person who shall refuse to give such Super- intendent full and truthful information, and answer in writing to any in- quiry or question made in writing by said Superintendent in regard to the business of insurance carried on by such person, or to appear and testify under oath before such Superintendent in regard to the same, shall be deemed guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fint of not exceeding $500, or imprisonment not exceeding three months; and any director, officer, manager, agent or employee of any insurance company, or any other person, who shall make any false certificate or entry or memorandum upon any of the books or papers of any insurance company, or upon any statement or exhibit offered, filed or offered to be filed in the Insurance Department of the State, or used in the course of any examination, inquiry or investigation, with intent to deceive the Superintendent of the Insurance Department, or any person em- ployed or appointed by him to make any examination, inquiry or investi- gation, shall, upon conviction, be punished by a fine of not exceeding $1000, and by imprisonment not less than two months in the county or city jail, nor more than five years in the penitentiary." EXCESS INSURANCE IN UNLICENSED COMPANIES— Sec. 7045- "The Superintendent of Insurance, however, may issue to an agent who is regularly commissioned to represent one or more fire or fire and marine or storm insurance companies, authorized to do business in this State, a certificate of authority to place excess lines of insurance in companies not admitted to do business in this State: Provided, however, that the party desiring such excess of insurance shall first file an affidavit with the Super- intendent of Insurance that he has exhausted all the insurance obtainable from authorized companies." Sec. 7046. "Every agent so licensed 230 FIRE INSURANCE LAWS, TAXES AND FEES. shall report, under oath, to the Superintendent of Insurance on the first day of June and December of each year the amount of premiums obtained by him for such excess insurance, and shall pay the said Superintendent a tax of five per cent thereon ; and he shall also file an approved bond with the said Commissioner in the sum of $1000 for the faithful observance of the above provisions, and a prompt discharge of his duties therein." Prop- ertyowners may be licensed to deal with unauthorized companies on filing a reasonable bond for payment of two per cent tax on premiums, and pay- ing a fee of $10. Penalty for violations of the law, fine of $100. See also "Licensed Brokers." FEES — Filing declaration, required on organization of each company, $50; filing copy of charter and preliminary statement, $50; issuing license to company, $1; filing annual statement, $30; filing supplementary annual statement, $10; filing power of attorney and all other papers, $10; agents' or solicitors' license, $2; copies of papers on file, 20 cents per folio, and affixing seal, $1; broker's license, $10; license to place insurance in un- authorized companies, $10. Fees payable to Superintendent of Insurance. FIRE DEPARTMENT TAX— Governed by municipal provision. FIRE MARSHAL— No provision. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Must be filed when called for by the Superintendent. IMPAIRMENT— Sec. 7077. "If at any time the Superintendent of the Insur- ance Department shall ascertain that the capital stock or guarantee fund of any insurance company doing business in this State is impaired, or that its liabilities exceed its available assets, he may, either before or after revoking or suspending its license or authority to act, or before or after instituting proceedings against it, notify and require said company to make good its deficiency; for that purpose he may grant it a reasonable time within which to make good such impairment or deficiency, and may take such steps as shall seem to him best adapted to secure the interests of the policyholders and creditors of such company. * * *" INVESTMENTS PRESCRIBED— Domestic companies may invest their capital in treasury notes or bonds of the United States or of Missouri, or in funded bonds of any county or municipal township of Missouri, or bonds issued by any school district or drainage district of the State of Mis- souri, or in bonds and mortgages or deeds of trust on unincumbered real estate, situate in any of the States of the United States worth at least double the amount loaned thereon. The reserve and surplus funds may be invested in notes, secured by deed of trust on lands in any State of the United States (such real estate to be worth at least 50 per cent more than the amount loaned thereon) and in bonds of any county or municipality or drainage district in any State of the United States. LICENSED BROKERS-Sec. 7049. "Whoever for compensation acts or aids in any manner in negotiating contracts of insurance or reinsurance, MISSOURI. 231 or placing risks or effecting insurance or reinsurance for any person other than himself, and not being the appointed agent or ofificer of the company in which such insurance or reinsurance is effected, shall be deemed an insurance broker, and no person shall act as such insurance broker, save as provided in this section. Such certificate shall remain in force one year, unless revoked." Brokers may secure licenses to deal with authorized companies by paying an annual fee of $io. Penalty for violation, fine of $ioo. See "Excess Insurance in Unlicensed Companies." Brokers' licenses may be issued to natural persons only, under an opinion of the Attorney-General. LIMIT ON A SINGLE RISK— No provision. LLOYDS — Sec. 7041. "No individual or association of individuals, under any style or name, shall be permitted to do the business mentioned in this chapter within the State of Missouri, unless he or they shall first fully comply with all the provisions of the laws of this State governing the busi- ness of insurance. * * *" ^ ruling of the Insurance Department, based on the decision of the Supreme Court in case of State vs. Stone, 118 Mo., 388, requires a deposit of $200,000 to be made in the State by any Lloyds doing business therein. MISCELLANEOUS — Fire insurance companies may insure against loss by leakage of sprinklers or other fire extinguishing apparatus. For removing to, or instituting in, a Federal court, a suit brought by or against a citizen of Missouri, a company shall have its license revoked. Failure of com- pany to furnish insured with blank forms for proof of loss, etc., waives right to require such information. MUTUAL COMPANIES— Sec. 7009. "No company formed upon the mutual plan for the purpose of doing the fire and marine business designated in the first of the three classes of insurance named in Sec. 6995 shall, unless the company is to be formed with a guarantee fund, commence to do busi- ness until agreements have been entered into for insurance with at least 200 applicants, the premiums on which shall amount to not less than $100,000, of which thirty per cent at least, upon each and every premium, shall have been paid in cash, and until notes of solvent parties, founded on actual and bona fide applications for insurance, shall have been received for the remainder. No one of the premium notes received as aforesaid, nor afterward received by any mutual company, whether organized with or without a guarantee fund, shall amount to more than $500, and no two shall be given for the same risk or made by the same person or firm, except when the whole amount of such notes shall not exceed $500; nor shall any note be regarded or represented as forming a part of the pre- miums required of mutual companies on their organization, unless a policy be issued upon the same within thirty days after said company shall have received its certificate of authority from the Superintendent to do business and issue policies, upon a risk which shall not be for a shorter period than six years." Companies writing risks only in a single line of industry, may 232 FIRE INSURANCE LAWS, TAXES AND FEES. take notes for not more than five annual cash premiums, but such annual cash premium shall not exceed $500 each; and no policy shall be written for longer than five years. Provision is also made for the organization of county, farmers' and town mutual insurance companies. PENALTIES — For acting for an insolvent company, a fine of $50 to $500. Company transacting business without license is liable to fine of $250 for each offense, and court fees. For permitting a judgment to remain unpaid fifteen days, revocation of license, or suspension during default. Any per- son acting for company suspended is liable to fine of $500 for each offense. General penalty, a fine of $50 to $500. PRELIMINARY DOCUMENTS— Certified copy of charter, copy of last annual statement, copy of financial statement or supplementary statement, certificate from its resident State Department of the legality to do business, and certificate showing amount of capital stock fully paid up; certificate from Department that Missouri companies would be treated on same basis by that State; copy of appointment of company's general agent. Foreign companies must file copy of charter to be exei;uted at general or head office of the company under seal of that office, certified by State officer having custody of original; certificate of compliance; certificate of deposit; certificate of appointment of general agent, unless the United States manager shall act as general agent for this State; document executed under seal of head office, and signed by chief officer of the company, the president and secretary, showing the appointment of person designated by company as its manager in United States, with full authority and power to said man- ager set forth in appointment; appointment of Superintendent for ac- ceptance of process. Application for company's license must be signed by its president, secretary, general agent or manager, and must be filed before license can issue. Certificate of compliance with laws of companv's home State must be filed yearly with annual statement. PUBLICATION— No requirement. RATING SCHEDULES TO BE FILED— Laws 191 1, Sec. 4. "Every insur- ance company whose business is regulated by this act shall within thirty days after the taking effect of this act, file with the Superintendent gen- eral basis schedules, showing all charges and credits, terms, privileges, riders and conditions, which in any wise affect rates, or the cost of insur- ance on property located in this State, and shall also within ninety days after the taking effect of this act in addition to the general basis schedules above mentioned, file with the Superintendent specific rates for each risk, or class of risks, provided for and derived from the general basis schedules for each city, town or village in this State, and specific rates for each special risk, or class of risks, outside of the cities, towns or villages, provided for and derived from its general basis schedules : Provided, that where it is shown by any company that it has been impossible to make inspection and to secure the information necessary to enable it to file the specific rates herein referred to, the Superintendent may extend the time for filing the MISSOURI. 233 same beyond the limit fixed herein : Provided, further, that no company shall be required to file specific rates, for any city, town, village or county, in which it does not transact insurance business. Any one or more of such companies singly or jointly may employ for the making of such general basis schedules and rates and the filing of the same the services of such experts as it, or they, may deem advisable for such purpose. All general basis schedules and rates filed in accordance with the provisions of this act, shall be open to the inspection of the public and each agent shall have and exhibit, when called upon, all rates furnished by the companies he rep- resents relative to property upon which he is authorized to write insurance. No change shall be made in the general basis schedules or specific rates which have been filed in compliance with the requirements of this act, except after thirty days' notice by mail to the Superintendent, which notice shall plainly state the changes proposed to be made in the general basis schedules or specific rates thereunder in force and the time when such changes will go into effect: Provided, the said Superintendent may for good cause shown, allow changes to be made upon notice for a shorter period than that specified herein, either in particular instances or by gen- eral order applicable to special or peculiar circumstances or conditions. No insurance company whose business is regulated by this act shall engage, or participate in the insurance of any property against loss or damage specified herein unless its general basis schedules and specific rates there- under have been filed in accordance with the provisions of this act, except that any insurance company shall be permitted for a period of ninety days after the taking effect of this act, to write insurance under its schedules and rates in force at the time this act goes into effect. Any insurance company regulated by this act or its officers, agents or representatives may enter into any contract of insurance on property located in this state on which there has been no rate filed as provided for in this act, but such company shall within thirty days after entering into such contract, file with the Superintendent on such form or forms as shall be by him pre- scribed, a statement truly setting forth the description of such property, the rate thereon and such other information as the Superintendent shall require ; said statement when so filed shall constitute the specific rate on the property insured." Sec. 5. "The Superintendent shall not make any order affecting rates without giving all insurance companies doing busi- ness regulated by this act that may be affected thereby, or other persons known to the Superintendent to be interested, thirty days' notice by mail thereof and a full opportunity to appear and be heard in respect to the same. Any insurance company or other person interested in such order if dissatisfied therewith, shall have the right to bring action against the Superintendent to determine the legality of such order. Upon complaint made to the Superintendent of Insurance that any schedules or rates so filed as aforesaid are unreasonable, unjust or discriminatory, the Super- intendent is authorized to make an investigation for the purpose of determ- 234 FIRE INSURANCE LAWS, TAXES AND FEES. ining whether or not such schedules or rates are reasonable, just or non- discriminatory, and if he finds that such schedules or rates are unreason- able, unjust or discriminatory, he shall make a finding to that effect, and is further authorized to find what schedules and rates would be reasonable, just and non-discriminatory, and he is hereby authorized and empowered to direct said company to file new schedules or rates which shall not be in excess of the rates or schedules so found by him to be reasonable, just and non-discriminatory ; and every such company shall, within fifteen days, file and put in force and effect such new schedules or rates." Sec. 6. "No insurance company whose business is regulated by this act nor any officer, manager, agent or employee thereof, nor any broker shall charge or collect any premium for insurance herein regulated, other than at the rate shown by the schedules and rates filed in accordance with this act or in excess of the rates found by the Superintendent to be reasonable, just and non-dis- criminatory, and ordered to be put into force and effect by the company. No insurance company whose business is regulated by this act nor its officer, manager, agent or employee, nor any broker shall directly or indirectly by any special rate, tariff, rebate, credit, drawback or other device, charge, demand, collect or receive from any person or persons a greater, or less, or a different compensation for insurance regulated herein, than it charges, demands, collects or receives from any other person or persons, for like insurance on property of a like kind and hazard under similar circum- stances and conditions. The amount of premium expressed in any policy shall be the amount collected in each and every case. No rebate shall be allowed or given in any case. Penalty for violation, fine of $200 to $500, or imprisonment for thirty to ninety days, or both. Company, agent, or broker may also have license revoked for twelve months." RECIPROCAL LAW— Sec. 7033. "Whenever the laws of any other State of the United States or of any foreign country shall require of or impose upon companies not organized under the laws of such State or country any further or greater licenses, fees, taxes, deposits or securities, state- ments or certificates of authority, or require any other duties or acts or inflict any greater fines or penalties than are by the laws of Missouri im- posed or inflicted upon or required of companies not organized under the laws of this State, then it shall be the duty of the Superintendent of the Insurance Department of this State to require from every company of such other State or country transacting, or seeking to transact, the business of insurance in this State, the payment of all licenses, fees, taxes, fines or penalties, and the making of all deposits of securities, and statements, and the doing of all acts which, by the laws of the State or country in which said company was organized, are in excess of the licenses, fees, taxes, deposits, statements, fines, penalties, acts or duties required by the laws of this State of companies of other States." REINSURANCE — No express prohibition of reinsurance in unauthorized companies, but no credit is allowed on taxes for such reinsurances. MISSOURI. 235 REINSURANCE RESERVE — Fifty per cent of premium on unexpired risks having one year or less to run, and a pro rata of all term risks. Marine reserve, gross premiums on outstanding risks. Inland reserve, fifty per cent, as for fire. RESIDENT AGENTS — Sec. 7047. "Foreign companies admitted to do busi- ness in this State shall make contracts of insurance upon property or inter- est therein, only by lawfully constituted and licensed resident agents, who shall countersign all policies so issued. And any such company which shall violate any provision of this section shall suffer a revocation of its authority by the Superintendent of Insurance to do business in this State, in addition to the penalty prescribed in Sec. 7054, such revocation to be for the term of one year." SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY — No uniform form of fire policy has been approved or adopted by the State Insurance Department, owing to the fact that the con- stitutionality of the act of March 18, 1895, was challenged in the courts. The act was held constitutional, but not until after the date named in the section when the standard forms were to be submitted. Owing to the lame construction of the statute, no action in that regard has ever been taken. TAXES — Sec. 7098. "The property of all Insurance companies organized under the laws of this State shall be subject to taxation for State, county, municipal and school purposes, as provided in the general revenue laws of this State in regard to taxation and assessment of insurance companies. Every such company or association shall make returns, subject to the pro- visions of said laws: First, of all the real estate held or controlled by it; second, of the net value of all its other assets or values in excess of the legally required reserve necessary to reinsure its outstanding risks and of any unpaid policy claims, which net values shall be assessed and taxed as the property of individuals; provided, that the premium notes held by fire insurance companies organized on the mutual plan shall not be returned as assets ; and, provided, further, however, that nothing herein shall operate to exempt from such taxation the paid-up capital of such stock companies." Sec. 7099. "Every insurance company or association not organized under the laws of this State shall, as. hereinafter provided, annually pay a tax upon the premiums received, whether in cash or m notes, in this State, or on account of business done in this State, for insurance of life, property or interest in this State, at a rate of two per cent per annum in lieu of all other taxes except as in this article otherwise provided. * * * Pro- vided, that fire insurance companies shall be credited with premiums on reinsurance with companies authorized and licensed to transact business in Missouri, which reinsurance shall be reported by the company reinsuring such business ; but no credit shall be allowed any fire insurance company for reinsurance in companies not licensed to transact business in Missouri." Sec. 7104. "The agent or agents of any such insurance company doing in- 236 FIRE INSURANCE LAWS, TAXES AND FEES. surance business in any city in this State having a population of more than 100,000 inhabitants, in addition to the tax on premiums as above provided for against such companies, shall also pay to the collector of the said city, if said city shall so declare by ordinance, on or before the first day of February of each and every year, not more than the sum of $100 for the use of said city, which sum shall be considered in full for and in lieu of all taxes and licenses which said city may possess the power to impose on such agencies. *" Credit is allowed for reinsurance with companies authorized in Missouri, but not for return premiums on canceled policies. Under the resident agents' law agents pay a tax of five per cent on premiums obtained for "excess lines of insurance" (see Sec. 7046, R. S. Mo., 1909) ; and a two per cent tax is imposed on all insurance effected in unauthorized insurance companies (See Sec. 7048, R. S. Mo., 1909). The two per cent and reciprocal taxes are payable to the State Treasurer yearly before May I. Penalty for failure to pay taxes or fees, fine of $50. Company is liable to have its certificate revoked. The five per cent tax is payable June i and December i, to the Superintendent of Insurance. TAX STATEMENTS— Must be filed on or before March i. Taxes must be paid on or before May i to the State Treasurer. VALUED POLICY — Sec. 7020. "In all suits brought upon policies of insur- ance against loss or damage by fire hereafter issued or renewed, the defendant shall not be permitted to deny that the property insured thereby was worth at the time of the issuing of the policy the full amount insured therein on said property; and in case of total loss of the property insured, the measure of damage shall be the amount for which the same was insured, less whatever depreciation in value, below the amount for which the property is insured, the property may have sustained between the time of issuing the policy and the time of the loss, and the burden of proving such depreciation shall be upon the defendant; and in case of partial loss the measure of damage shall be that portion of the value of the whole property insured, ascertained in the manner hereinafter prescribed, which the part injured or destroyed bears to the whole property insured." Sec. 7021. "When fire insurance policies shall be hereafter issued or renewed by more than one company upon the same property, and suit shall be brought upon any one of said policies, the defendant shall not be permitted to deny that the property insured was worth the aggregate of the several amounts for which it was insured at the time the policy was issued or renewed thereon, unless wilful fraud or misrepresentation is shown on part of the insured in obtaining such additional insurance; and in such suit the measure of damage shall be as provided in the preceding section : Pro- vided, that whatever depreciation in value below the amount for which the property is insured may be shown, as provided in the preceding sec- tion, shall be deducted from the amount insured in each policy, in the proportion which the amount in each such policy bears to the aggregate of all the amounts so insured on such property. This and the preceding MISSOURI. 237 section shall apply only to real property insured. Any condition in any policy of insurance contrary to the provisions of this article shall be il- legal and void." A part of Sec. 7030 reads as follows: "No company shall take a risk on any property in this State at a ratio greater than three- fourths of tlie value of the property insured, and when taken, its value shall not be questioned in any proceeding." This was construed in the case of Gibson vs. Missouri Town Mutual Insurance Company, 82 Mo., App. 1. c. 521, as follows: "We interpret this statute to enjoin upon the insurance company not to take a risk at more than three-fourths of the value of the property insured, but that when the value is fixed and the risk taken on a given amount that sum cannot be questioned afterwards, though it should, in fact, be more than three-fourths of the value. So that the practical effect of the statute is to make a valued policy. It is practically the same, in this respect, as section 5897 of the general statute of 1889." (Sec. 5897 mentioned is Sec. 7020, above quoted, of R. S. of 1909.) WAIVER OF PROOFS OF LOSS.— Failure to furnish blank forms for proof of loss is construed as constituting a waiver of proofs. WARRANTIES — If not material to the risk, warranties in applications for fire insurance are considered as representations only. COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. ASH GROVE— For each agent, $4; payable March i. AURORA— For each company, $10.75. BETHANY— For each company, $10; for each agent, $10. BEVIER— For each agent, $5.25. BLOOMFIELD— For each company, $10; for each agent, $5. BOONVILLE— For each agent, $20.50. BOWLING GREEN— For each company, $5.50; for each agent, $5.50. BRECKENRIDGE— For each company, $1. BROOKFIELD— For each company, $5 per year ; for each agent, $15, payable July I. BRUNSWICK— For each company, $5 ; for each agent, $5. BUTLER— For each company, $11, payable annually. CALIFORNIA— For each agent, $10, payable January i. CAMERON— For each company, $5. CANTON— For each company, $3.50, payable first Monday in February. CAPE GIRARDEAU— For each company, $25; for each agent or firm, $50; payable July i or on commencing business. CARL JUNCTION— For each agent, $5. CARROLLTON— For each company, $5. CARTHAGE— For each agent or firm, $20.25. CARUTHERSVILLE— For each company, $7.50 ; for each agent, $5.50. CENTRALIA— For each agent, $1.50. 238 FIRE INSURANCE LAWS, TAXES AND FEES. CHILLI COTHE — For each company, $10.50, payable January i. CLARKSVILLE — For each company $8 annually, payable January i and July I. CLINTON — For each company, $15; agent or firm, $5 (also fee 50 cents). DE SOTO — For each company, $10.50, payable in advance. DEXTER — For each company, $2 ; for each agent, $5 , payable annually. EDINA — For each company, $2.50; for each agent $2.50; payable semi-an- nually January i and July i. ELDORADO SPRINGS— For each company, $5 ; for each agent or firm, $7.50; payable January i. ELSBERRY— For each company, $6. FARMINGTON — For each company, $5.50; for each agent or firm, $5.50, payable when taken out. FAYETTE — For each company, $5, payable June i. FLAT RIVER— For each company, $5.50. FREDERICKTOWN— For each company, $10.50, payable May i. FULTON— For each agent, $5.50. GALLATIN — For each company, $5, payable August i. GREENFIELD — For each company, $5 ; payable January i. GREENVILLE — For each agent, $3; payable July 11. HAMILTON — For each company, $2.50; for each agent, $3.50, payable March i. HANNIBAL — For each company, $25 ; for each agent, $15. Fees are payable semi-annually. HARRISONVILLE— For each company, $5, payable July 2. HIGGINSVILLE — For each company, $5.50, payable November i. HIGBEE — For each company, $5; for each agent, $5, payable May i. HOLDEN — For each company, $5.50; each agent, $10.50. HUMANSVILLE— For each company, $3.50. HUNTSVILLE — For each company $10.50; for each agent, $5; payable semi- annually, January i and July i. INDEPENDENCE— For each company, $10, payable semi-annually. JACKSON — For each company, $5. JEFFERSON CITY — For each company, $20.50; for each agent, $5.50 per annum. JOPLIN— For each agent, $60 per annum, payable quarterly, February, May, August and November. KANSAS CITY — For each company, $100 per annum for each agency, pay- able January 4. Fire Patrol assessment, i^ per cent of net premiums. KIRKSVILLE— For each company, $10 ; for each agent, $5 ; payable July i. KIRKWOOD— For each agent, $5.50. LA GRANGE — For each company, $3.50, payable February i. LAMAR— For each company, $15; for each agent, $3; payable January i and July I. LA PLATA— For each company, $2.50; for each agent, $10; payable June i. MISSOURI. 239 LATHROP — For each agent, $io per annum, payable upon commencing business. LIBERTY — For each company, $15; for each agent, $2.50; payable July i. LOUISL\NA — For each company, $10.50 for each agency, payable January i. MACON — For each company, $10.50, payable April i. MALDEN — For each company, $7.75 ; for each agent, $5.75. MARCELINE — For each company, $5 ; for each agent, 50 cents ; payable January i. MARSHALL — For each company, $10.50; for each agent or firm, $5, payable January i. MARSHFIELD — For each company, $4.50 ; for each agent, $4.50 per annum ; payable semi-annually. MARYVILLE — For each company, $15; for each agency, $3; payable Jan- uary I. ^MEMPHIS — For each company, $10.50 per annum, payable May i. MEXICO— For each company, $15.50; for each, $5.50. MOBERLY — For each company, $5 ; for each agent, $5, payable May i. MONETT — For each company, $10.25, payable January i, April i, July i, and October i. MONROE CITY— For each agency, $5. MONTGOMERY— For each agent, $5 ; payable June i. MOUND CITY— For each company, $10. MOUNTAIN GROVE— For each agent, $5 per annum. NEOSHO — For each company, $10 ; for each agent, $10. NEVADA — For each company, $5. NEW FRANKLIN — For each company, $5.50; payable January i. NEW MADRID — For each agent, $12, payable May i and November i. NORTH SPRINGFIELD— For each company, $15.50. ODESSA — For each company or agent, $6. OSCEOLA — For each company, $6; for each agent, $6; payable January i. PALMYRA— For each agent, $5. PERRY— For each agent, $5. PLATTSBURG— For each company, $8.25 ; for each agent, $10.75. PLATTSMOUTH— For each company $2. POPLAR BLUFF — For each agent, $10 ; for five companies or less, and $2 for each additional company. PLEASANT HILL — For each company or agent, $2.50, semi-annually ; pay- able January i and July i. RICH HILL — For each company, $10. RICHMOND— For each company, $25 ; for each agent, $5. ROLLA — For each company, $10, payable July i. ST. CHARLES— For each company, $15.50; for each agent, $5.50. ST. JOSEPH — For each company, $100. ST. LOUIS — For each company, $100; payable April i; Underwriters Sal- vage Corps, two per cent on net premiums. 240 FIRE INSURANCE LAWS. TAXES AND FEES. SAXISBURY— For each company, $5. SAVANNAH — For each company, $10.50; for each agent, $10.50; payable April I. SEDALIA — For each company, $25, payable June i. SENECA — For each company, $2.50; for each agent, $1, payable June i. SHELBINA — For each company, $5 ; payable July i. SLATER — For each company, $2.50, payable June i. SPRINGFIELD — For each company, $16; each agent, $21; payable May i. STANBERRY — For each company, $5 ; for each agent, $10. SWEET SPRINGS — For each company, $5.50; for each agent or agency, $5.50; payable June i. THAYER— For each agent, $5. TIPTON — For each agent, $6 per annum. TRENTON— For each agent, $11. TROY — For each company, $4, payable March i. VANDALIA — For each agent, for each company, $3.50, payable when issued. VERSAILLES— For each agent, $5. WARRENSBURG — For each company, $12 ; for each agent, $7. WASHINGTON — For each company, $5.50; for each agent, $5.50, payable July I. WEBB CITY — For each agency, $100 per annum, payable quarterly, January I, April I, July i and October i. WEBSTER GROVES— For each agent, $7, payable July i. WELLSVILLE — For each company, $2.50, payable April i. WESTMINSTER— For each agent, $10, payable May i. WEST PLAINS— For each company, $10. WILLOW SPRINGS— For each company, $6. WINDSOR — For each company, $4.25 ; for each agent, $4.25 ; payable April i. MONTANA. STATE REQUIREMENTS. AGENTS DEFINED— Sec. 4064 R.C. "* * * The term agent or agents used in this chapter includes an acknowledged agent or surveyor or any other person or persons who in any manner, directly or indirectly, transact or aid in transacting the insurance business of any insurance company not incor- porated by the laws of this State." Acting as agent of unauthorized company constitutes a felony. AGENTS' LICENSES — Agents must annually secure certificates of authority, which expire March 31. Applications for licenses must be made by com- pany's officers, under seal. Sub-agents must be licensed. One license is held to be sufficient in the case of a firm or company acting as agent. Act- ing for an unlicensed company is a felony. Licenses are transferable. ANNUAL STATEMENTS— Must be filed within sixty days from January i. Domestic mutual companies must report in January. ANTI-COINSURANCE— No provision. ANTI-COMPACT — No provision relating to insurance companies. ANTI-REBATE — ^A law of 1903 forbids the making of any discrimination or distinction in favor of individuals between insurants or property of the same class in the amount of premiums or rates charged for policies, or in benefits, etc., under penalty of fine not exceeding $500, and revocation of license for one year. ATTORNEY — Company must appoint an attorney in each county in which it has an agency established, to accept service of legal process. Appoint- ments of attorneys remain in force until revoked. Service may be made on Insurance Commissioner if not obtainable on attorney. CANCELLATION OF POLICY— No requirement as to notice to insured. CAPITAL REQUIRED — Company must possess at least $200,000 of capital, exclusive of deposits in other States for the special benefit of the insured therein. COMMISSIONS TO NON-RESIDENTS— Commissions must be received by resident agents. DEPOSIT — None required of American companies. Foreign companies must have at least $100,000 on deposit in one of the United States for the benefit of all United States policyholders. (Auditor must be satisfied as to value ; no law specifying character of securities.) DOMESTIC COMPANIES— (Sec. 4042 R.C). "When any number of per- sons associate themselves together for the purpose of forming an insurance corporation for any other purpose than life insurance, they shall publish a notice of such intention once a week for four consecutive weeks in a public newspaper in the county in which such insurance corporation is proposed to i be located ; and they shall also make articles of incorporation, as provided in 242 FIRE INSURANCE LAWS, TAXES AND FEES. Sec. 403 of this Code, and forward to the State Auditor, who shall submit the same to the Attorney-General for examination, and if it shall be found by the Attorney-General to be in accordance with the provisions of this chapter, and not in conflict with the Constitution and laws of the United States and this State, he shall make a certificate of the facts and return it to the State Auditor, who shall reject the name or title applied for by any persons, when he shall deem the same so similar to any one already appro- priated by any other company, as to be likely to mislead the public." Capi- tal must be not less than $200,000, nor more than $1,000,000. One-half, at least, must be paid in cash, and the remainder in secured notes. There must be not less than three, nor more than thirteen directors. A company can transact but one class of insurance. (Sec. 4074 R.C.). "It is unlawful for any corporation organized upon the mutual plan to do business and take risks upon the stock plan, or for a corporation organized as a stock corpora- tion to do business upon the plan of mutual insurance." EXAMINATIONS— -Act of February 13, 1909. Sec. 42. "The Commissioner of Insurance shall examine and inquire into, violations of insurance laws of this State, and for this purpose, or to see if the laws are obeyed, or to examine the financial condition, affairs and management of any insurance company, including surety companies, organized under the laws of this State, or any other State or Territory, or foreign country, he may visit, or cause to be visited by any competent person or persons he may appoint, the head office in this State or in the United States of any domestic or foreign insurance company applying for admission to, or already admitted, to do business in this State, and may for these purposes examine or investigate any company organized under the laws of Montana and any agency of any company doing business in this State." The expense of such examinations to be borne by the companies examined. FEES — For filing charter, examination of first papers and admission to State, $300 ; filing annual statement, $25 ; license to collect in any one year gross premiums amounting to $5000 or less, $125; license to collect premiums above $5000 in any one year, $20 per $1000 for each and every $iooo col- lected; for certificate of authority to each agent, $5 (transferable). Com- pany and agents' licenses expire March 31. Publication fee, $9. State fees are payable to State Auditor. FIRE DEPARTMENT TAX— No provision. FIRE MARSHAI^-Act of March 17, 191 1, creates office of State Fire Mar- shal and imposes tax of one-fourth of one per cent on gross premiums of fire insurance companies, less return premiums and cancellations, for main- tenance of department. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Must be filed by July i. IMPAIRMENT— Sec. 4062, R.C. "* * * No agent shall be allowed to transact business for any company whose capital is impaired by the liabilities, as stated in Sec. 3920 of this chapter, to the extent of 20 percent thereof while such deficiency shall continue." MONTANA. 243 INVESTMENTS PRESCRIBED— Domestic companies may invest their capital and accumulated funds in bonds and mortgages on unencumbered real estate in Montana, worth at least double the amount loaned thereon, or in stocks of Montana or stocks or treasury notes of the United States, or in stocks and bonds of any county or incorporated city in Montana, and may lend on the pledge of above securities, but the surplus money over and above the paid-up capital stock of any such company may be invested in or loaned upon the pledge of public stocks of the United States or any of the States, on stocks, bonds, or other evidences of indebtedness of any solvent dividend-paying institution incorporated under the laws of Montana or the United States, except its own stock, provided the current market value of such securities shall be at all times during the continuance of such loan at least twenty per cent more than the sum loaned thereon. No domestic company may purchase, hold or convey real estate except for the accommo- dation of its business. All other real estate acquired in the legitimate course of business shall be sold and conveyed within three years after the same shall have been declared by the State Auditor unnecessary for the company's business, but for sufficient cause time may be extended by said Auditor for such sale. LICENSED BROKERS— No provision. LIMIT ON A SINGLE RISK— Ten per cent of paid-up capital. No company shall "write on a risk within the corporate limits of any one city an amount representing more than the paid-up capital of the corporation, unless the excess shall be insured by the same in some other good and reliable com- pany or companies." LLOYDS — ^The law as to capital applies to (Sec. 4062, R. C.) "any insurance company, association or partnership, organized or associated for any of the purposes specified in this chapter." Sec. 4075, R.C. "Nothing in this chapter must be so construed as to prevent any number of persons, not ex- ceeding 200, from making mutual pledges, and giving valid obligations to each other, for their own insurance from loss by fire or death ; but such as- sociation of persons must in no case insure any property not owned and occupied by one of their number ; and no life except that of one of their own number ; nor are the provisions of this chapter applicable to such associa- tions or companies. But such associations or companies must not pay any salaries or compensation to officers, agents, or other employees, or receive premiums, or make dividends." MISCELLANEOUS — Fire and marine insurance companies may insure against loss or damage to motor vehicles resulting from accident, collision or marine and inland navigation and transportation perils; and to insure growing crops against loss or damage resulting from hail or the elements. MUTUAL COMPANIES— (Sec. 4045, R.C). "No corporation on the plan of mutual insurance shall commence business in this State, until agreements shall have been entered into for insurance with at least two hundred appli- cants, the premiums upon which shall amount to not less than $25,000, of 244 FIRE INSURANCE LAWS, TAXES AND FEES. which at least $5000 shall have been paid in cash, ^nd for the remainder of which, notes of solvent parties, founded upon actual and bona fide applica- tions for insurance, shall have been received ; no one of the notes received, as aforesaid, shall amount to more than $500, and no two thereof shall be given for the same risk, or made by the same person or firm, except when the whole amount of such notes does not exceed the sum of $500, nor shall any note be regarded or represented as capital stock unless a policy be issued upon the same within thirty days after the organization of the cor- poration taking the same, upon a risk which shall be for no shorter period than twelve months ; each of said notes shall be payable in whole or in part, at any time when the directors shall deem the same requisite for the pay- ment of losses by fire or inland navigation, and such incidental expenses as may be necessary for transacting the business of said corporation ; and no notes shall be accepted as a part of such capital stock, unless the same shall be sufficiently indorsed or secured, if security is required by the directors, and no such note shall be surrendered while the policy for which it was given continues in force." Provision is also made for the formation of mutual rural insurance companies. PRELIMINARY DOCUMENTS— Company must file with the Auditor a certified copy of the charter and a verified statement showing its financial condition. Company licenses expire March 31, annually. Certificates of compliance with laws of company's home State are filed annually. PUBLICATION — Sec. 4070, R.C. "It is the duty of every insurance corpora- tion or company of the kind authorized to do and doing business in this State, organized under the laws of this State, or of any other State, Ter- ritory or country, to publish once, annually, in two newspapers of general circulation, one of which is published at the capital of the State, and in case of corporations organized in the State, one of which is published in the county where the principal office is located, a certificate from the State Auditor that such company or corporation has in all respects complied with the laws of this State relating to insurance, and in addition thereto such notice shall contain a condensed statement of capital, assets, liabilities, in- come and expenditures." Unpaid capital or unavailable assets must not be advertised. Publication fee, $9, payable to the Auditor, who designates the publication as provided by law. RECIPROCAL LAW— Sec. 4069, R.C. "Whenever the existing or future laws of any other State or Territory of the United States require of insur- ance corporations, incorporated by, or organized under, the laws of this State, having agencies in such other State or Territory, or of the agents thereof, any deposit of securities in such State or Territory, or of the agents thereof, for the protection of policyholders or otherwise, or any payment for taxes, fines, penalties, certificates of authority, li- cense fees, or otherwise, greater than the amount required for such purposes from similar companies of other States and Territories by the existing laws of this State, then, and in every such case, all MONTANA. 245 companies of such States or Territories establishing, or having here- tofore established, any agency or agencies in this State, are required to make the same deposit for a like purpose with the Auditor of this State, and to pay said Auditor for taxes, fines, penalties, certificates of authority, license fees, or otherwise, an amount equal to the amount of such charges and pay- ments imposed upon or required by the laws of such State or Territory of the companies of this State or the agents thereof." REINSURANCE— Senate Bill 85, 1899, Sec. 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 the State, any risk or liability or any part thereof assumed by it, under any form of contract of insurance, covering property in this State, including any risk or liability under any general or floating policy, or any agreement, general, floating, or specific, to reinsure excess loss by one or more fires. No fire insurance company or association shall reinsure, or assume as a reinsuring company, or otherwise, in any manner or form whatsoever, the whole or any part of any risk or liability, covering prop- erty located in this State, of any insurance company or association not authorized to transact business in this State." Statements of reinsurances must be made annually and as much oftener as required by State Auditor. Penalty for violation, fine of $500; failure to pay a fine is punishable by revocation of license. REINSURANCE RESERVE — Fifty per cent of premiums on unexpired risks. Insurance Department rules that this percentage applies to risks having less than one year to run, and requires pro rata reserve on those for longer terms. RESIDENT AGENTS — Sec. 4036, R. C. "No fire insurance company or asso- ciation not incorporated under the laws of this State, authorized to transact business herein, shall make, write, place, or cause to be made, written or placed, any policy, duplicate policy, or contract of insurance of any kind or character, or any general floating policy, upon property situated or located in this State except after said risk has been approved, in writing, by an agent who is a resident of this State, regularly commissioned and licensed to transact insurance business herein, who shall countersign all policies so issued and receive the commission 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. Nothing in this act shall be construed to prevent any such insurance com- pany or association, authorized to transact business in this State, from issu- ing policies at its principal or department offices, covering property in this State, provided, that such policies are issued upon application procured and submitted to such company by agents who are residents of this State, and 246 FIRE INSURANCE LAWS, TAXES AND FEES. licensed to transact the business of insurance herein, and who shall keep a record of and countersign all policies so issued and receive the commis- sion thereon when paid." The license of an agent removing from the State becomes void, but may be transferred to another agent of the com- pany. Penalty for violation, revocation of license for ninety days. SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— None required to be used. TAXES — Fire marshal tax one- fourth of one per cent on gross premiums, less return premiums and cancellations. TAX STATEMENTS— Included in annual statements. VALUED POLICY— No provision. COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. ANACONDA — For each agent, $io; payable quarterly. BILLINGS — For each agency $4 per year; payable quarterly. Also tax of .013 on net premiums; payable November 30. BUTTE — For each agent, $2.50 per quarter; companies pay 31. i mills per $i of gross premiums less expenses ; payable after first Monday in March. GLENDIVE — For each agent, $10; payable quarterly. GREAT FALLS— For each agent, $3 quarterly. HAVRE — For each agent, $2.50 quarterly. KALISPELL — For each company, about .018 per cent on net premiums. LEWISTOWN — For each agent, $20 per annum ; payable quarterly. LIVINGSTON — For each agent or agency, $2 per quarter. MILES CITY — For each agent, $2, for each company. RED LODGE — For each agent, $4 per annum, payable quarterly. NEBRASKA. STATE REQUIREMENTS. AGENTS DEFINED— Sec. 27. "The term agent or agents used in the fore- going sections shall include an acknowledged agent or surveyor, or any other person or persons who shall in any manner, directly or indirectly, transact or aid in transacting the insurance business of any insurance com- pany not incorporated by the law of this State." AGENTS' LICENSES — Sec. 24. "It shall not be lawful for any agent or agents or individuals, to act for any insurance company or companies, transacting the business of insurance in this State, directly or indirectly, in taking risks or transacting business of insurance in this State, without first procuring from the Auditor of State a license granting him authority to so act for said company." Licenses expire February i. Penalty for act- ing for unauthorized company, fine of $50 to $100 for each policy offense. Agent is also responsible to the insured for any loss under a policy in an un- authorized company. The State Auditor construes the law as requiring that State and special agents and adjusters should be regularly appointed agents of the company or companies they represent, and licensed as agents by the Auditor. License required for each member of firm. ANNUAL STATEMENTS— Must be filed within thirty days from January i. ANTI-COINSURANCE — No prohibition of use of coinsurance clauses. ANTI-COMPACT — The anti-compact law of 1897 was, in September, 1901, declared unconstitutional by the Federal Court, and no appeal was taken within the legal time limit. ANTI-REBATE — The resident agents' law of 1909 is construed as prohibit- ing rebates or commissions to the insured. ATTORNEY — Law amended in 191 1 to provide that the Auditor of Public Accounts shall be given power of attorney to accept service of legal process. CANCELLATION OF POLICY— On demand of the insured, a company must cancel its policy and pay him or his representatives (Sec. 42) "the net amount of premium received by the company after deducting the actual compensation of the agent or solicitor for securing the issue of said policy, and also deducting the customary short-rate premium for the expired time of the full term for which said policy was issued or renewed, anything in the policy to the contrary notwithstanding." CAPITAL REQUIRED— Of other State and foreign companies, $200,000, exclusive of special deposits in other States. COMMISSIONS TO NON-RESIDENTS— Commissions must be received by resident agents, and the latter not be required to divide same with a non- resident, or with a resident of Nebraska who is not licensed as an agent. DEPOSIT — Chap. 43, Sec. 23. "It shall not be lawful for any insurance com- pany, association or partnership organized or associated for any of the pur- 248 FIRE INSURANCE LAWS, TAXES AND FEES. poses specified in this act, incorporated by or organized under the laws of any other State of the United States, or any foreign government, directly or indirectly, to take risks or transact any business of insurance in this State unless possessed of $200,000 of actual paid-up capital, exclusive of any assets of such company as shall be deposited in any other States or Ter- ritories for the special benefit or security of the insured therein. * * * Such statement shall also show, to the full satisfaction of the Auditor of State, that such company has deposited in some one of the United States or Territories a sum not less than $25,000 for the special benefit or security of the insured therein. * * *" DOMESTIC COMPANIES— Comp. Stat. 1899, Chap. 43, Sec. i. "That here- after, when any number of persons associate themselves together for the purpose of forming an insurance company, for any other purpose than life insurance, under the provisions of Chap. 25 of the Revision of 1866, and all acts amendatory and supplementary thereto, they shall publish a notice of such intention once in each week, for four weeks, in some public newspaper in the county in which such insurance company is proposed to be located ; and they shall also make a certificate under their hand, specifying the name assumed by such company and by which it shall be known, the ob- ject for which said company shall be formed, the amount of its capital stock, and the place where the principal office of said company shall be lo- cated, which certificate shall be acknowledged before and certified by some notary public or clerk of court of record, and forwarded to the Auditor of State, who shall submit the same to the Attorney-General of State for ex- amination, and if it shall be found by the Attorney-General of State to be in accordance with the provisions of this act, and not in conflict with the Constitution and laws of the United States and this State, he shall make certificate of the facts, and return it to the Auditor of State, who shall reject the name or title applied for by any company when he shall deem the same too similar to any one already appropriated by any other company, or likely to mislead the public." Sec. 2. "When the said certificate of the said company shall have received the approval of the Attorney of State and Auditor of State, the said company shall cause the same to be recorded as now required by law for recording articles of incorporation, and said per- sons when incorporated, and having in all respects complied with the pro- visions of this act, are hereby authorized to carry on the business of insur- ance, as named in such certificate of incorporation, and by the name and style provided therein, and shall be deemed a body corporate with suc- cession, they and their associates, successors and assigns, to have the same general corporate powers, and be subject to all the obligations and restric- tions of said chapter twenty-five of the Revision of 1866, and of such acts as may be amendatory or supplementary, except as may be herein otherwise provided." EXAMINATIONS— "It shall be the duty of the Auditor of the State, whenever he shall deem it expedient so to do, in his judg- NEBRASKA. 249 ment, to appoint one or more persons, not officers, agents, or stock- holders of any insurance company doing business in this State, to examine into the affairs and conditions of any insurance company incorporated and doing business in this State, or to make such examination himself; * * * and whenever it shall appear to the said Auditor from such examination that the assets and funds of any company incorporated in this State are reduced or impaired by the liabilities of said company, as described under the head of liabilities in the statement required by this act, more than twenty per cent below the paid-up capital stock re- quired by this act, he may direct the officers thereof to require the stock- holders to pay in the amount of such deficiency within such a period as he may designate in such requisition. * * * " Xhe Auditor is also au- thorized (Sec. 35) to examine other companies. FEES — Domestic companies organized or incorporated, for charter and filing papers, $50; annual statement, $20; agent's certificate, 50 cents; two cer- tificates for publication, $2 each; company's annual license, $2; copy of same, 50 cents. Foreign companies pay same fees as domestic, except agent's certificate, $2. Fees are payable to State Treasury. FIRE DEPARTMENT TAX— Cities and villages may levy and collect a license fee or tax on any occupation or business carried on within their limits, and may regulate the same by ordinance, and may appropriate money received as such fees or taxes to the support of fire departments or to other purposes. The tax on insurance companies specifically for the benefit of fire departments, levied under the law of 1895, however, was held invalid in the case of German-American Insurance Company vs. Min- den, 51 Neb., 870. FIRE MARSHAL — The Governor is constituted Fire Commissioner, with authority to appoint deputies and inspectors ; and chiefs of fire departments and other public officials are required to investigate fires. See "Taxes." FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Not re- quired. GENERAL PENALTY — Sec. 26. "Every insurance company organized under the laws of, or doing business in this State, shall conform to all the provisions of this act, applicable thereto, on or before the first day'of April, 1873; and when necessary, any existing company shall change its charter and by-laws so as to conform hereto, by a vote of a majority of its board of directors, and any president, secretary or other officer of any company organized under the laws of Nebraska, or any officer or person doing business or attempting to do business in this State for any insurance com- pany organized without this State, failing to comply with any of the re- quirements of this act, or violating any of the provisions thereof, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be fined in a sum not exceeding $1000, and be imprisoned in the county jail for a period of not less than thirty days, nor more than six months." Any company violating the law is liable to a fine of $100, and to revocation of license for one year. 250 FIRE INSURANCE LAWS, TAXES AND FEES. IMPAIRMENT — A company whose capital is impaired to the extent of twenty per cent must not continue business while such impairment exists. INVESTMENTS PRESCRIBED— Sec. 6. "It shall be lawful for any in- surance company organized under the act, or incorporated under any law of this State, to invest its capital and the funds accumulated in the course of its business, or any part thereof, in bonds and mortgages of unincum- bered real estate, within the State of Nebraska, worth double the sum loaned thereon, exclusive of buildings, unless such buildings are insured in some responsible company or companies and the policy or policies trans- ferred to said company, and also in stocks of this State or stocks or Treas- ury notes of the United States, in the stocks and bonds of any county or incorporated city in this State, which may have been therefore authorized to be issued by the legislature of this State, and to lend the same, or any part thereof, on the security of such stock, or bonds, or Treasury notes, or upon bonds and mortgages as aforesaid, and not otherwise; and to change and reinvest the same in like securities, as occasion may from time to time require ; but any surplus money over and above the paid up capital of any such company organized under this act or incorporated under any law of this State may be invested in or loaned upon the pledge of public stocks or bonds of the United States or of any one of the States, or stocks, bonds, or other evidences of indebtedness of any solvent, dividend-paying institu- tions incorporated under the laws of this State, or of the United States, except their own stock; provided, always, that the current market value of such stock, bonds, or other evidences of indebtedness shall be at all times, during the continuance of such laws, at least twenty per cent more than the sum loaned thereon." LICENSED BROKERS— Act of April 4, 1899, Sec. i. "The Insurance Commissioner or other officer having charge of the Insurance Depart- ment of Nebraska, in consideration of the yearly payment of $25 (the license revocable at any time), may issue to citizens of Nebraska, per- mitting and authorizing the person, party, or firm named in such license to act as agent to procure policies of fire insurance from any company, cor- poration, association, partnership or person that are not authorized to transact business in this State; provided, that before any insurance shall be secured under the provisions of this act or by authority of the license authorized to be issued as aforesaid, there shall be executed by the party licensed, and by the owner or manager of the property upon which insur- ance is desired, an affidavit in dupUcate, one of which shall be filed with the State Auditor or officer having charge of the Insurance Department, and the other to be filed in the office of the county clerk of the county or counties in which the property proposed to be insured is located, within thirty days after the securing of such insurance. Such affidavit shall set forth * * * that the party desiring such insurance is, after diligent effort, unable to procure the amount required to reasonably protect the property * * * from duly authorized companies. Each and every person be- NEBRASKA. 251 fore receiving such broker's license must file bond of $2500, con- ditioned that he shall comply with the law and pay a tax of three per cent on the gross amount of premiums charged policyholders. Broker must be authorized to accept service for companies dealt with. Penalty for vio- lation, fine of $100 and revocation of license for twelve months. Pplicies issued by unauthorized companies in contravention of this law are void. LIMIT ON A SINGLE RISK— Ten per cent of paid-up capital. LLOYDS — No provision ; previous law repealed. MISCELLANEOUS — Removal by a company of a suit to a Federal court will be punished by the revocation of its license. MUTUAL COMPANIES — No company on the plan of mutual insurance shall commence business until agreements have been entered into for insur- ance with at least 200 applicants. Company must have applications for in- surance involving $25,000 of premiums, at least $5,000 of which must be paid in cash. The word "Mutual" must form a part of the title. Farmers' mutuals and city and village mutuals are also provided for, the require- ments being less onerous than above. The provision relating to city and village companies is as follows: Sec. i. "Any number of persons, not less than one hundred, residing in this State, who own city or village real or personal property of not less than $100,000 in value, which they desire to have insured, may associate themselves together for the purpose of mu- tual insurance against loss by fire, lightning, tornado, cyclone, or wind storm, and form an incorporated company for such purpose, and issue policies. Such company shall embody the word 'Mutual' in its name." PRELIMINARY DOCUMENTS— Certified copy of charter and verified copy of financial statement and annual statement; copies of policy forms and application blanks; foreign companies must file certified copy of charter; copies of policy form and application blanks; agreement to do business only through resident agents; home office statement; affidavit that com- pany has not violated and will not violate law of 1909 concerning resident agents, etc. PUBLICATION — Copy of certificate of authority, including abstract of state- ment, must be published in two papers, one at capital and one elsewhere in the State. One publication of a domestic company must be in city where its head office is located. RECIPROCAL LAW — "Whenever the existing or future laws of any other State of the United States shall require of insurance companies incorpor- ated by or organized under the laws of this State, having agencies in such other State, or of the agents thereof, any deposit of securities in such State, for the protection of policyholders, or otherwise, or any payment for taxes, fines, penalties, certificates of authority, license fees, or otherwise, greater than the amount required for such purposes, from similar companies of other States, by the then existing laws of this State, then, and in every such case, all companies of such States establishing or having theretofore estab- lished an agency or agencies in this State, shall be and are hereby required 252 FIRE INSURANCE LAWS, TAXES AND FEES. to make the same deposit, for a like purpose, with the Auditor of this State, and to pay said Auditor for taxes, fines, penalties, certificates of authority, license fees, or otherwise, an amount equal to the amount of such charges and payments imposed upon or required by the laws of such State, of the companies of this State or the agents thereof." REINSURANCE — Law of 1899 bearing on this subject was declared uncon- stitutional. Licensed companies taking risks, paying regular commissions to licensed agents and reporting the total premium for taxation are per- mitted to cede a portion of the liability to unauthorized companies. Licensed companies are forbidden to assume liability on Nebraska property from any person or corporation not licensed to do business in Nebraska. REINSURANCE RESERVE— Forty per cent of premiums on unexpired risks. RESIDENT AGENTS— Act approved March 24, 1899, Sec. i. "Whenever an application is made by a company, corporation, association, partnership or person, whether of this State, another State, or from a foreign country, for authority or license to transact and do the business of fire * * * insurance within this State, such company, corporation, association, part- nership or person shall, as a prerequisite to being granted authority or license to transact such business of fire * * * insurance, in addition to the other conditions now required by law, first file with the State Auditor or Insurance Commissioner of the Insurance Department of this State, a sworn statement of return in such form and detail as shall be pre- scribed by the Auditor or Insurance Commissioner, signed by the presi- dent, vice-president, secretary, or manager, and in case of a foreign com- pany, corporation, association, partnership or person said sworn state- ment and return shall be signed by the authorized manager or trustee, resident in the United States, that it, they or he have not now and will not, directly or indirectly, by way of reinsurance or otherwise write any fire * * * insurance upon any property, person or risk in this State, in whole or in part, except under a policy which shall be regularly and duly countersigned by its legally authorized agent, resident within the county or State where such property * * * insured or to be insured is situated, * * * such agent having been duly licensed by the Auditor or State Insurance Commissioner." Penalty for violation, revocation of license of company, and agent to be fined $50 to $100. Law of April 3, 1909. Sec. i. "That any fire, fire and marine, tornado, * * * insurance company legally authorized to do business in this State is hereby prohibited from authorizing, allowing, or permitting any person or persons, partnership, association, corporation, or agent that is a non-resi- dent of the State of Nebraska to issue or cause to be issued, to sign or to countersign, or to deliver or to cause to be delivered any policy or policies of insurance or of reinsurance on any property, * * * located in the State of Nebraska, except through regularly commissioned and legally licensed agents of such companies resident within this State." Property of rail- NEBRASKA. 253 roads and common carriers is excepted, where such property is insured under a schedule covering in more than one State. Entire premiums on Nebraska business must be paid to resident agent. The State Auditor interprets Sec. 3 as prohibiting licensed resident agents from paying or giving, directly or indirectly, any commission, brokerage, rebate or other valuable consideration to any person or persons, partnership, association or corporation that is a non-resident of Nebraska or to any person or persons, partnership, association or corporation that is a resident of Ne- braska, but not legally authorized and licensed by the Auditor to act as an agent. Any division of commission with, or rebate of premium to, the assured, or to a non-resident of the State, or to a resident of the State not licensed by the department to act as an agent, or the countersigning of any policy or renewal in any other way than to regularly issue and duly record it and to collect the full premium thereon by a licensed agent will, in the judgment of the Auditor, be a violation of the act. Penalty for violation by agent, revocation of license for three months for first offense, and for one year for second offense ; for violation by company, revocation of license for three to six months, and for second offense, revocation for not less than one year. The Insurance Department does not hold that an authorized company cannot cede any portion of a risk taken in Nebraska, to any other company, authorized or unauthorized, if the original company reports same for taxation ; hence it would appear that resident agents can- not be required to countersign all reinsurance policies. SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— No requirement. TAXES— Under the Revenue law of 1903, Sec. 58, other State and foreign companies are taxed in the county, town, city, village and school district where the agent conducts business upon gross premiums received for insur- ance upon property in the State during the preceding year at the property rate ; Sec. 61 provides that domestic companies shall be taxed upon their net premiums, viz., gross, less return premiums and reinsurances through regularly authorized agents in the State. Agents must file statements, and are personally liable for the tax. This tax is in lieu of all others, except occupation taxes and those prescribed on real estate, etc., by the gen- eral revenue law. Personal taxes become due November i, and delin- quent December i. Other State and foreign companies are governed by reciprocal provision. In 1909, a tax of one-fourth of one percent on gross fire premiums (after deducting cancellations and reinsurances) on all busi- ness in Nebraska, was imposed in order to defray the expense of investi- gating fires ; payable annually in January to the State Treasurer, by all fire companies except farmers' mutual companies. TAX STATEMENTS— Must be filed on or before April i. See "Taxes." VALUED POLICY— Law of 1889, Sec. i. "Whenever any policy of insur- ance shall be written to insure any real property in this State against loss by fire, tornado or lightning, and the property insured shall be wholly 254 FIRE INSURANCE LAWS, TAXES AND FEES. destroyed without criminal fault on the part of the insured or his assigns, the amount of the insurance written in such policy shall be taken con- clusively to be the true value of the property insured, and the true amount of loss and measure of damages." COUNTY TAXES AND FEES. See "Taxes." MUNICIPAL TAXES AND FEES. See Fire Department Tax. AINS WORTH— For each company, $5; payable July i. ALBION — For each company, $5 ; payable about May i ; also tax at property rate on one-fifth of net premiums, payable October i. ALLIANCE — For each agent, $10, payable May i. ALMA — For each company, $5, payable August i. ASHLAND — For each company, $5; payable May i. AURORA — For each company, $5, payable May i ; also tax at property rate on one-fifth of total premiums, payable December i. BEATRICE — For each company, $10, payable May i. BLAIR — For each company, $5, payable June i. BLUE HILL — For each company, $5, payable May i. BROKEN BOW — For each company, $5 ; for each agency, $4, payable May i. CENTRAL CITY — For each company, $5 ; payable May i ; also tax at property rate on one-fifth of gross premiums, payable December i. CHADRON — For each company, $5, payable May i. COLUMBUS — For each company, $10; payable April 13. Gross premiums, less losses and cancellations, taxed as personal property. CREIGHTON — For each company, $5, payable May i. CRETE — For each company, $5, payable May i. DAVID CITY — For each company, $5, payable May i. EXETER — For each company, $5, payable May i. FAIRBURY — For each company, $5, payable May i. FAIRMONT — ^For each company, $5, payable May i. FALLS CITY — For each company, $2.50, payable May i. FREMONT— For each company, $5, payable May i. B'RIEND— For each agent, $5, payable July i. FULLERTON — For each company, $5, payable July i. GENEVA— For each company, $5, payable June i ; also tax at property rate on net premiums, payable November i. HARVARD— For each company, $3 (not enforced). HASTINGS — For each company, $5, payable April 14. HAVELOCK — For each company, $5, payable May i. HEBRON — For each company, $5, payable May i. HOLDREDGE — For each company, $5, payable May i. HUMBOLDT — For each company, $5, payable May i. NEBRASKA. 255 KEARNEY— For each company, $5. LEIGH — For each company, $5, payable first Tuesday in May. LEXINGTON— For each company, $5 ; for each agent, $5. LOUISVILLE— For each agent, $1. MADISON— For each company, $5, payable May i. MINDEN — For each company, $5, payable October i. McCOOK — For each company, $4, payable May i. NEBRASKA CITY— For each agent, $5, payable February. NELIGH— For each agent, $3, payable May i. NORFOLK— For each company, $5, payable May i; also tax on gross premiums, payable December i. NORTH BEND— For each company, $5 ; payable April 15. NORTH PLATTE— For each company, $5, payable May i. OAKLAND — For each company, $3. O'NEILL— For each company, $5. OSCEOLA— For each company, $5, payable May i. ORD — For each company, $5, payable May i. PAWNEE CITY— For each company, $5, payable May i. PLATTSMOUTH— For each company, $5. RED CLOUD— For each company, $5, payable May i. RISING CITY— For each company, $5, payable May i. SALEM— For each agent, $1. SCRIBNER— For each company, $5, payable May i. SEWARD — For each company, $5. ST. PAUL— For each company, $5, payable May i. SHELTON— For each company, $5, payable August i. SO. OMAHA— Nine mills on net premiums. STANTON— For each company, $5, payable first Tuesday in May. STROMSBURG— For each company, $5, payable May i. SUPERIOR— For each company, $5, payable May i. SUTTON— For each company, $5, payable May i. TECUMSEH— For each company, $5. TEKAMAH— For each company, $5, payable May i. WAHOO— For each company, $5. WAYNE— For each company, $5, payable May i. WEEPING WATER— For each company, $5.50, payable May i. WEST POINT— Fr each company $5, payable May i. WILBER— For each company, $5, payable June i. WYMORE— For each company, $5, payable first Tuesday after first Monday in April. YORK— For each company, $5, payable May i. NEVADA. STATE REQUIREMENTS. AGENTS DEFINED— No d-efinition. AGENTS' LICENSES — No license required. Any person falsely represent- ing himself to be the agent of an insurance company subjects himself to a fine of $500, or six months in jail, or both. Person acting for unauthorized company may be fined $500 for each offense. ANNUAL STATEMENTS— Must be filed on or before March i, showing condition of company December 31 preceding. Penalty for default, $100 for each day, and license may be suspended during default on notice by Controller. Penalty for making false statement, a fine of $500 to $5000, which may be imposed on the company or on the person making false oath. ANTI-COINSURANCE— No prohibition of coinsurance clauses. ANTI-COMPACT— No provision. ANTI-DISCRIMINATION— No provision. ATTORNEY — ^A citizen and resident of the State must be authorized to accept service of legal process. In the absence of such attorney, service upon the Controller shall be binding. CANCELLATION OF POLICY— No requirement as to notice to insured. CAPITAL REQUIRED — Company must possess paid-up, unimpaired capital of at least $200,000. COMMISSIONS TO NON-RESIDENTS— No provision. DEPOSIT — None required of American companies. Foreign companies must have a sum equal to $200,000 in gold coin in excess of liabilities on deposit in one of the United States for the benefit of all policyholders in the United States. DOMESTIC COMPANIES— Law of 1881, Sec. 2. "Corporations may be formed under the general laws of this State for the transaction of insurance business, but no such corporation shall be permitted to assume any risk as insurer unless the same shall have at least five directors, who shall be resi- dents and propertyowners in this State, and stockholders in the corpora- tion ; nor not until such corporation shall have a paid-up, unimpaired cash capital equal to $200,000 in United States gold coin, * * *" which shall be invested as specified below. Sec. 3. "The persons so associating, after having perfected such incorporation and filed their certificate of incorpora- tion and by-laws with the State Controller, as aforesaid, may open books to receive applications for membership and enter into agreements in manner hereinafter specified; but no company organized by this act shall do any business or take any risk or make any insurance in any county other than the one in which the company is organized ; which county shall be named and set one in which the company is organized; which county shall be named and set forth in the incorporation papers filed with the Secretary of State and NEVADA. 267 State Controller ; provided, that no insurance company organized as afore- said shall commence business until bona fide agreements shall have been entered into for insurance with at least twenty-five individuals covering property to be insured to the amount of not less than $50,000." EXAMINATIONS— Law of 1881, Sec. 9. "Upon the written representation of three citizens, and the belief of the Controller, that any company organ- ized outside of the State, and doing an insurance business in this State, has less than $200,000 paid-up, unimpaired cash capital, it shall be the duty of the Controller to make such investigation or require such proof as shall be satisfactory to him concerning the financial condition of such company; provided, however, the certificate of the insurance officer of any State hav- ing an Insurance Department, that such company has a paid-up, unim- paired cash capital equal to $200,000 in United States gold coin, shall be accepted by the Controller as satisfactory. If such company does not, within sixty days after demand of the Controller, produce such certificate, the Controller shall revoke his certificate of authority to such company to do business in this State, and in the meantime may withdraw or withhold his certificate of authority until such certificate is produced. If, after such withholding, refusal, withdrawal or revocation, such company, or any officer, agent, or other person, shall write, deliver, or agree to deliver, any policy in such company, such person so violating the provisions of this act shall be deemed guilty of a misdemeanor, and on conviction thereof shall be subject to the penalties provided in Sec. 5 of this act." FEES — Law of 1881, Sec. 14. "The Controller shall collect, for filing each power of attorney and issuing his certificate as required by this act, $5 ; for an annual license to each fire insurance company to transact business throughout the State, $100." Publication fee, $20. FIRE DEPARTMENT TAX— No provision. FIRE MARSHAI^No provision. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Not specifi- cally required by law, but called for by State Controller. GENERAL PENALTY— Sec. 18. "Any officer, agent or employee of any in- surance company or other person violating any of the provisions of this act, shall, on conviction thereof, be fined not less than $50, nor more than $300, and in default of payment of such fine shall be imprisoned in the county jail not less than ten days nor more than three months, except as otherwise specially provided in this act, and the Controller is authorized and directed to cause proceedings to be instituted in the name of the State of Nevada, in any court of competent jurisdiction, to enforce the provisions of this act." IMPAIRMENT — None permitted. License to be refused or revoked. Assess- ments may be levied upon stockholders to make good impairment. Penalty for doing business after notification to repair capital while company is un- licensed, fine of $500 for each offense, or imprisonment for not exceeding six months or until fine is paid. INVESTMENTS PRESCRIBED— Domestic companies may invest their capi- 258 FIRE INSURANCE LAWS, TAXES AND FEES. tal in bonds of Nevada or of the United States, or in bonds and mortgages on unencumbered real estate, the market value of which shall be at least double the amount loaned thereon, or in bonds of any city or county in Nevada, the issuance of which was duly authorized by law, or in bonds of any railroad, wagon road, ditch or canal corporation, provided that such bonds shall at no time be estimated as assets at more than their actual cash market value. Nothing in this act shall be construed to permit any com- pany investing in mining stock. Domestic companies are not allowed to loan any of their funds to stockholders, nor shall any stockholder be in- terested in any way in loan, pledge, security or property of any insurance company organized under the laws of Nevada, except as stockholder in said company. No domestic company shall hold or purchase real estate, except for the accommodation of its business. All other real estate acquired in satisfaction of debts legitimately contracted shall be sold or disposed of within five years after the title has been perfected in such company, but time of sale may be extended by the State Controller for sufficient cause. LICENSED BROKERS— Law of 1881, Sec. 15. "Any person who solicits in- surance, receives an application or order to write, renew or procure any policy, collect any premium, or who attempts as middleman to place any fire insurance in this State, when such person holds no authority as agent from any insurance company or general agent of such company, shall be deemed an insurance broker, and shall pay to the county where such busi- ness is conducted or attempted, in advance, a quarterly license of $15. * * *." Penalty for violation, fine of $25 to $50 for each offense. LIMIT ON A SINGLE RISK— None. LLOYDS — Law of 1881, Sec. 17. "The provisions of this act, under either term or designation of company, corporation, association, firm or indi- vidual in either case, or where either term or designation is used, shall ap- ply to any insurer, company, corporation, association, firm or individual engaged as insurers, or who may hereafter engage as insurers in this State, or who may engage in offering or affording indemnity against the casual- ties of fire or life." MUTUAL COMPANIES— Law of 1897, Sec. i. "Any number of persons, not less than ten, who shall be residents and householders in the county in which such company is formed, may associate themselves together and form an incorporated company for the purpose of mutual insurance of the prop- erty of its members against loss by fire ; which property to be insured shall belong to members of the company and embrace dwelling houses, bams, accompanying out-buildings and their contents, creameries, farm imple- ments, hay, grain, wool and other products, live stock, wagons, buggies, carriages, harness, household goods, wearing apparel, provisions, musical instruments, furniture and libraries being upon farms as farm property, or in dwellings, or in accompanying out-buildings." There must be at least twenty-five subscribers for at least $50,000 of insurance. PRELIMINARY DOCUMENTS— Company must file with the Controller a NEVADA. 259 certificate showing that it has a paid-up capital of $200,000. Certified copy of charter may also be required. Certificate of compliance with laws of company's home State required annually in January. PUBLICATION — Annual statements are required to be filed with Controller and published in a Nevada daily newspaper for one week prior to March i, copies to be filed with the several Assessors of the State. Advertising charge, $20. Penalty for non-compliance, $100 for each month published statement remains unfiled with Assessors. RECIPROCAL LAW— None. REINSURANCE— Law of March 6, 190 1, Sec. 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." Sec. 3. "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 reinsure excess loss by one or more fires." Sec. 4. "No fire insurance company or association shall reinsure, or assume as a reinsuring company, or otherwise, in any manner or form whatsoever, the whole or any part of any risk or liability, covering property located in this State, of any insurance company or association not author- ized to transact business in this State." Sec. 5. "At the time of the filing of the annual statement of every insurance company or association doing business in this State, with the State Controller, there shall be attached thereto the affidavit of the president, manager or chief executive officer in the United States that this act has not been violated." Penalty for viola- tion or non-compliance, $500 for each offense. REINSURANCE RESERVE — Company must maintain a reinsurance reserve equal to fifty per cent of the premiums on risks having less than one year to run, and pro rata on all risks of more than one year. RESIDENT AGENTS— Laws of March 6, 1901, Sec. i. "It shall be unlaw- ful for any insurance company or association, doing business in the State of Nevada, to write, place, or cause to be written or placed, any policy or contract for indemnity for insurance on property situated or located in the State of Nevada, except through or by the duly authorized agent or agents of such insurance company or association residing or doing business in this State ; provided, that this act shall not apply to direct insurance covering rolling stock of railroad corporations or property in transit while in the possession and custody of railroad corporations or other common carriers." Penalty for violation, $500 for each offense. SEMI-ANNUAL STATEMENTS— Not required. STANDARD POLICY— No provision. 260 FIRE INSURANCE LAWS, TAXES AND FEES. TAXES— No provision. TAX STATEMENTS — Copies of the published annual statement must be filed annually with the several assessors of the State of Nevada, under a penalty of $ioo for each month the statement remains unfiled. VALUED POLICY — ^A valued policy law was passed in 1901 over the Gov- ernor's veto, but was declared invalid by the Supreme Court. COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. CARSON — For each company, $1.50 quarterly, first day. RENO — For each agent whose commissions amount to $500 or less per annum, $7.50 per quarter ; for $500 to $ich30 of commissions per annum, $10 per quarter; for $1000 to $2000, $20 per quarter; for $2CXXD to $3000, $30 per quarter ; for $3000 or over, $40 per quarter ; payable quarterly, January, April, July, October. NEW HAMPSHIRE. STATE REQUIREHENTS. AGENTS DEFINED— No legal definition. AGENTS' LICENSES— Chap. 169, Public Statutes. Sec. 7, as amended by Chap. 61, Laws, 191 1. "The agents of such companies shall be residents of the State. No officer or agent thereof shall act or aid in any manner in the negotiation of any insurance with such company until he shall have procured from the Insurance Commissioner a license so to do. The license shall state in substance that the company is authorized to transact busi- ness in this State, and that the person named therein is the constituted agent of the company for that purpose. Nothing in this act shall be con- strued to prohibit the granting of brokers' licenses without regard to place of residence." Sec. 8. "Upon written notice from the company or its general agent, on blanks furnished for that purpose, of the appointment of a suitable person to act as its agent in this State, the Insurance Commissioner shall, if the facts warrant it, grant such license, which shall continue in force until the first day of April next, after its issue, and by renewal thereof before the first day of April of each year, until revoked by the Commissioner or until the appointment of the agent is revoked by written notice from the company or its general agent for New Hampshire to that effect, filed in the office of the Insurance Commissioner." License required for each member of firm. Applications for licenses must be made on Department's blanks. ANNUAL STATEMENTS— Must be filed on or before February i. For cause the Commissioner may extend time to a date not later than March i. ANTI-COINSURANCE — No law prohibiting the use of coinsurance clauses, except that they are not allowed to be used in policies on buildings. ANTI-COMPACT— Public Statutes, Chap, 169, Sec. 10. "If a licensed foreign insurance company shall enter into a contract or combination with other insurance companies for the purpose of controlling the rates to be charged for insurance upon property within the State, or shall make application for the removal of any action brought against it in the courts of this State to the United States courts, the Commissioner shall forthwith revoke its license and those of its agents ; and no renewal of the licenses shall be granted until after the expiration of three years from the date of such revocation." ANTI-DISCRIMINATION— No provision. ATTORNEY — The Insurance Commissioner must be authorized to accept serv- ice of legal process. CANCELLATION OF POLICY— Policies may be canceled at short rates by insured, or pro rata, on ten days' notice by the company. CAPITAL REQUIRED — Stock companies organized outside of the State must have at least $200,000 of paid-up capital. 262 FIRE INSURANCE LAWS. TAXES AND FEES. COMMISSIONS TO NON-RESIDENTS— No provision. See "Reciprocal Law." DEPOSIT — None required. A ruling of the Insurance Department requires foreign company to have $200,000 deposited in one of the United States. DOMESTIC COMPANIES — No insurance companies can be incorporated under the General Laws ; charter must be secured direct from the Legis- lature. Newly chartered domestic companies must be licensed by the In- surance Commissioner before transacting any business. All companies are under supervision of the Insurance Department. Members of mutual com- panies are not liable beyond the amount of their deposit notes. Not more than two agents are permitted to a domestic company in a single town, and each agent's territory must be defined. Such agency appointments must be recorded by town clerks. A domestic company must be examined on the written request of five or more policyholders. EXAMINATIONS— Chap. 168, Sec. 16. "The Commissioner shall make a per- sonal examination of the affairs of a domestic insurance company whenever thereto requested, in writing, by five or more policyholders of the company, setting forth probable grounds for a belief that the company is insolvent or that there is gross waste, misconduct, or negligence in the management of its affairs." Chap. 167, Sec. 10. "The Commissioner is authorized to examine into the condition and affairs of any domestic or foreign insurance company doing business, or proposing to do business, in the State, or to cause such examination to be made by some person not interested in the company, appointed by him, and to examine into the business transacted by any agent of the company in the State. He may require the company or agent to produce all books and papers and to answer in writing, under oath, all reasonable questions relating to the company or to the agency." FEES — Filing certified copy of charter and by-laws, $25 ; filing statement with application and each annual statement, $15 ; certificates of authority to com- panies, and annual renewals, $5 ; agents' license or certificate of authority (for each member of a firm) and annual renewals, $2; each service of process, $2 ; for copies of records on file, per page, 10 cents ; for certifi- cates, each $1. See "Reciprocal Law." Fees are payable to Insurance Commissioner. FIRE DEPARTMENT TAX— Governed by reciprocal provision. FIRE MARSHAI^Public Statutes, Chap. 115, Sec. 21, provides for the in- vestigation of all fires by municipal authorities. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Not re- quired. GENERAL PENALTY— Chap. 168, Sec. 18. "If any insurance company, do- mestic or foreign, or any officer or agent of any insurance company, shall violate any law of the State in relation to insurance for which no other penalty is specially prescribed, such company, officer, or agent shall be fined not exceeding $2000 for each offense." IMPAIRMENT— No permissible limit is fixed. If the Commissioner considers NEW HAMPSHIRE. 263 a company to be in unsound condition, he may revoke its, and its agents', licenses, by giving written notice and by publication; and in case it is a do- mestic company, may take steps looking to forfeiture of its charter. INVESTMENTS PRESCRIBED— Capital of stock companies must be in- vested in securities readily convertible into cash, one-half at least of which are not loans secured by real estate. Chap. 87, Laws of 191 1, Sec. i. "No insurance company organized under the laws of this State shall invest its funds in or loan them on its own stock or the stock of any other company carrying on the same kind of insurance business, or the stock of any corporation owning and holding stocks of any insurance company or com- panies carrying on the same kind of insurance business, the aggregate value of which shall exceed one-tenth of the paid-up capital of the corpora- tion so owning and holding them." Stock so held must be sold and dis- posed of within one year from the date this act takes effect. Time may be extended by the Insurance Commissioner. LICENSED BROKERS— Chap. 168, Laws 191 1, Sec. i. "That the Insurance Commissioner, upon the annual payment of a fee of $2 for the use of the State, may issue licenses to residents of the State, subject to revocation at any time, permitting the person named therein to procure policies of fire insurance on property in this State in foreign insurance companies not authorized to transact business in this State, but which are duly authorized to do business in some State having an Insurance Commissioner. All such licenses shall expire annually on the thirty-first day of March." Sec. 2. "Every such licensee shall on or before the tenth day of each month execute and file with the Insurance Commissioner a statement under oath cover- ing all insurance policies procured by him under his said license during the calendar month next preceding, giving the name of the company issu- ing each of said policies, the name and residence of the insured and the amount, term and premium of each policy and the kind of property insured thereby, and that he was unable to procure in companies admitted to do business in the State the amount of insurance necessary to protect said property. Provided, that such licensed person shall not offer any por- tion of such insurance to any company which is not possessed of cash assets amounting to at least $100,000, which shall be determined by the Insurance Commissioner, or one which has within the preceding twelve months been in an impaired condition. And no person, unless he shall be so licensed, shall act or aid in any manner in placing fire insurance on property other than his own in this State in any company which is not duly authorized to transact business in this State." Sec. 3. "Each person so licensed shall keep a separate account of the business done under the license, a certified copy of which account he shall forthwith file with the Insurance Com- missioners, showing the exact amount of such insurance placed for any person, firm or corporation, the gross premium charged thereon, the com- panies in which the same is placed, the date of the policies and the term thereof, and he shall also file a report in the same detail of all such policies 264 FIRE INSURANCE LAWS, TAXES AND FEES. canceled and the gross return premium thereon." Sec. 4. "He shall file with the Insurance Commissioner, in January of each year, a sworn state- ment of the gross premiums charged for insurance procured or placed, and the gross return premiums on such insurance canceled under such license during the year ending on the thirty-first day of December next preceding, and at the time of filing such statement shall pay to the State Treasurer a sum equal to two per cent of such gross premiums less such return premiums reported." Sec. 5. "The Insurance Commissioner shall have authority at all times to investigate any alleged violations of this act and should he find any to exist he shall report the same to the Attorney-General, who shall take proceedings to collect all fees and taxes which may be due from said licensee ; and any person violating or failing to comply with any of the provisions of this act shall be liable to pay a fine of not exceeding $100 for each violation thereof, and shall forfeit his license to do busi- ness under this act for a period of one year." Act of 1905, Chap. 29, Sec. i. "The Insurance Commissioner may license suitable persons as insurance brokers to place fire insurance risks with the agents of licensed foreign insurance companies on the payment of a fee of $10, said license to expire on the first day of April next after its issue. Any agent of such foreign insurance companies whose license fees as such agent amount to $10 may transact the business of broker without additional payment ; any such agent whose license fees so paid are less than $10 may be so licensed on payment of such sum as with the fees already paid will amount to $10." Sec. 2. "Companies issuing policies through their agents on applications from brokers shall be charged with the broker's knowledge of facts to the same extent as if he were their agent." Sec. 3. "No license fee shall be re- quired for salaried office clerks or bookkeepers of agents of foreign in- surance companies." LIMIT ON A SINGLE RISK— None. LLOYDS — No expression in the law appears to include a Lloyds or an Indi- vidual underwriter. MISCELLANEOUS — Chap. 167, Sec. 11. "Whenever a person makes com- plaint to the Commissioner that an insurance company charges an exces- sive rate for insurance, he shall hear the parties, and if it appear to him that the rate made is excessive he shall recommend the company to reduce it to a reasonable basis." Under Chap. 28, Laws of 191 1, provision is made for the establishment and maintenance of guaranty surplus and special reserve funds. MUTUAL COMPANIES— Chap. 169, Sec. 3. "No such mutual insurance company shall be licensed to do business in the State, unless it shall have $200,000 of cash assets invested as provided in the preceding section, nor unless its assets equal its outstanding liabilities, including reinsurance, to be estimated as in the case of joint stock insurance companies, and includ- ing also the amount of its guarantee capital." The above section applies to outside mutual companies. See also "Domestic Companies." NEW HAMPSHIRE.. 265 PRELIMINARY DOCUMENTS— Company must file certified copy of its charter and by-laws and verified statement. Certificate of compliance with laws of company's home State not required annually. Charter, by-laws and power of attorney need be filed but once. PUBLICATION— No provision. RECIPROCAL LAW — Chap. 131, Laws 191 1, Sec. i. "In all cases in which the laws of any other State of the United States now require and may here- after require that the insurance companies incorporated by the laws of other States shall deposit with some officer of the State in which such insurance company is incorporated stocks or other securities in trust or for the benefit of policyholders of such companies as a condition for doing business in such other States, the State Treasurer shall receive from any insurance company incorporated under the laws of this State stocks or other securities, in such amount as may be required by the laws of such other State or States, on deposit in trust for the benefit of the policyholders of such company." Chap. 54, Laws of 1891, Sec. i. "If any State shall by its laws deny any insurance company or citizen of this State any rights or privileges which are granted to insurance companies and citizens of that State, then this State shall in like manner deny to insur- ance companies and citizens of that State all such rights and privileges, and they shall be subject to all the restrictions and penalties as prescribed by that State to insurance companies and citizens of this State ; and if by the laws of any State the Insurance Commissioner or other official shall have power to revoke the license of any company of this State or foreign State for writing insurance upon any person or property of that State, other than through or by a citizen of that State, then the Insurance Commissioner of this State is empowered to revoke the license of any insurance company of that State or any foreign insurance company licensed to do business in this State, that shall write for or through any agent of that State, directly or indirectly, upon any person or property of this State, except the same be written through a duly authorized agent, who shall be a citizen of this State." A law of 1909 provides that if by the laws of any other State, agents, brokers or companies of New Hampshire are prohibited from re- ceiving commissions on policies of fire or casualty insurance written for them by agents or companies doing business in that State on persons or property residing or located therein, the agents, brokers, or companies resi- dent in that State shall not be paid any commission, brokerage or other compensation upon any policy written by them, by agents or companies doing business in New Hampshire. REINSURANCE— Chap. 180, Laws of 191 1. "No insurance company or surety company not incorporated under the laws of this State, authorized to transact business herein, shall make, write, place, or cause to be made, written, or placed, any policy or contract of insurance or suretyship effective in this State except by an agent who is a resident of this State, regularly commissioned and licensed to transact business herein, and 266 FIRE INSURANCE LAWS, TAXES AND FEES. no such company shall by its oflficers, agents, or managers, not residents of this State, write policies or contracts of insurance or suretyship effective within this State upon blanks previously countersigned by an agent in this State. Life insurance companies and mutual companies writing all policies at their home office are excepted." Sec. 2. "No such fire insurance com- pany or association shall reinsure, in any manner whatsover, 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 such fire insurance company or association shall reinsure, or assume as a reinsurance company, or otherwise, in any manner or form whatsoever, the whole or any part of any risk or liability, covering prop- erty located in this State, of any insurance company or association not authorized to transact business in this State, and the policy of reinsurance shall in all cases be written by a duly authorized agent residing in this State." REINSURANCE RESERVE— Fifty per cent of premiums on unexpired fire risks running one year or less from date of policy, a pro rata amount of all premiums on unexpired risks running more than one year and one hundred per cent of premiums on unexpired marine risks. RESIDENT AGENTS — ^Agents of other State and foreign companies must be residents of the State. See under "Reciprocal Law," Chap. 54 and law of 1909; also under "Reinsurance." (The resident agent requirement does not apply to insurance upon property or liabilities of railroads or trans- portation companies.) SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— A standard form of policy is prescribed, which may be changed by the Insurance Commissioner. Chapter 170 of the Public Statutes is required to be printed in every policy contract. It provides, among other things, that descriptions of property and statements concern- ing value and title are not warranties ; that a mistake or misrepresentation, unless fraudulent, does not void a policy unless the difference between the facts and the representations contributed to the loss, when the amount payable is reduced proportionately as the premium paid is to that which should have been paid ; that company is chargeable with agent's knowledge ; that charge or breach of condition shall not affect policy except during con- tinuance ; that the sum insured shall be taken to be the value of the insured's interest in buildings totally destroyed, unless over-insurance was fraudu- lently obtained; requires notice of fire within thirty days, and adjustment within fifteen days after notice and rebuilding to begin within twenty days after adjustment, if the company elects to repair or rebuild; provides that suit may be begun within six months after notice of fire, etc. TAXES— Chap. 169, Sec. 14. "Every such fire, marine, * * insurance company shall pay to the State Treasurer, within one month after receiving notice from the Insurance Commissioner of the amount thereof, a tax of two per cent upon the gross premiums received by it, less return premiums and re- NEW HAMPSHIRE. 267 insurance, when eflfected in authorized companies by the companies' li- censed resident agents or in companies organized under the laws of this State, upon business done within the State, during the year ending on the thirty-first day of the preceding December, as assessed by the Commissioner ; * * *." See "Reciprocal Law." TAX STATEMENTS— Must be filed by February i on special tax blanks fur- nished by the Insurance Commissioner. VALUED POLICY— Public Statutes, Chap. 170, Sec. 5. "If insured buildings are totally destroyed, the sum insured shall be taken to be the value of the insured's interest therein, as such interest is described in the policy, unless over-insurance thereon was fraudulently obtained ; if they are only partially destroyed, the insured shall be entitled to his actual damages, not exceeding the sum insured." The standard policy contains the following clause: "This company shall not be liable beyond the actual value of the insured property at the time any loss or damage happens, except on buildings totally destroyed, in which case the full amount of the limitation shall be paid." Penalty for neglect to pay final judgment, suspension of license until payment is made. COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. None". NEW JERSEY. STATE REQUIREMENTS. AGENTS DEFINED— No definition. AGENTS' LICENSES— Chap. 134, Laws of 1902, Sec. 63. "No officer or agent of any insurance company of another State or foreign country shall make, or procure to be made, or act or aid in any manner in the negotiation of any insurance with such company until he shall procure from the Com- missioner of Banking and Insurance a certificate of authority so to do, which shall state in substance that the company is authorized to do business in this State, and that the person named therein is the constituted agent of the company for the transaction of such business. Upon receipt of a certifi- cate by such company of its appointment of a suitable person to act as its agent in this State, said Commissioner shall, if the facts warrant it, grant such certificate, which shall continue in force until the first day of March next after its issue, and by the renewal thereof before the first day of March of each year, until revoked by said Commissioner for non-compliance with the laws, or until the appointment of such agent is revoked by written notice from the company to that effect, filed with the Commissioner of Banking and Insurance." Applications for licenses must be signed by company officers, or other representative authorized to appoint agents, and should be filed before expiration of old licenses. But one license is required for a firm, subject to reciprocal provision. Fee must accompany application. Chap. 278, Laws of 1911 : "i. Hereafter there shall be filed with the Com- missioner of Banking and Insurance on the fifteenth day of January and the fifteenth day of July in each and every year, a sworn statement by each insurance company authorized to do business in the State of New Jersey, and the agents thereof, setting forth the names and addresses of all brokers doing business through the said companies or agents thereof. 2. There shall be assigned by the Commissioner of Banking and Insurance to each agent applying for a license to do business in this State, a number, which number said agent shall have stamped or printed on each policy of insurance issued through him, together with his or her name inscribed on same." ANNUAL STATEMENTS— Must be filed in January, showing condition as of December 31 preceding. Time may be extended for good cause by the Commissioner. Statement of company of foreign country to embrace only condition and business in United States. Penalty for failing to file state- ment within time specified, $100 for each day's neglect, and company may be notified to cease doing new business while in default. ANTI-COINSURANCE— Chap. 134, Laws of 1902, Sec. 78. "No fire in- surance company doing business in this State may issue any policy or NEW JERSEY. 269 contract of insurance covering property in this State which shall contain any clause or provision requiring the assured to take out or maintain a larger amount of insurance than that expressed in such policy, nor in any way providing that the assured shall be liable as coinsurer with the com- pany issuing the policy for any part of the loss or damage which may be caused by fire or lightning to the property described in such policy, and any such clause or provision shall be null and void and of no effect, provided, that it may be optional with the assured to accept a policy or contract of insurance containing a coinsurance clause or provision when a reduction in the rate for insurance on the property described in such policy is the con- sideration named in such clause, and when so accepted the coinsurance clause or provision shall be binding on the assured." Under law of April 21, 1909, the "Standard Average or Pro Rata Distribution Clause" may be inserted in pohcies insuring property in more than one place. ANTI-COMPACT— No provision. (In November, 1909, the Court of Errors and Appeals issued an injunction restraining fire insurance companies and their agents from combining to fix rates, etc., in the territory previously covered by the Newark Fire Insurance Exchange.) ANTI-REBATE— Chap. 257, Laws of 1911. "i. No fire insurance company or association of fire underwriters or Lloyds in doing business in this State, and no officer, agent, sub-agent, solicitor or representative thereof, and no broker negotiating any fire insurance in this State, shall make any contract of fire insurance other than as plainly expressed in the policy issued thereon ; nor pay, allow or give, or offer to pay, allow or give, directly or indirectly, as inducement to insurance, any rebate, discount abatement or reduction of the premium named in any policy of fire insurance upon prop- erty located in this State, as therein expressed, or any special favor or advantage in the dividends or other benefits to accrue thereon, or any val- uable consideration or inducement whatever, not specified in the policy contract of insurance ; but commissions or other compensation may be paid by any fire insurance company or association of fire underwriters or Lloyds, licensed to do business in this State, to regularly appointed and licensed agents and sub-agents, and to brokers duly licensed by this State. 2. No owner of any property situate in this State nor the agent or representative of such owner shall receive or accept, directly or indirectly, any such rebate, discount, abatement or reduction of the premium payable on any policy of fire insurance upon such property, as therein expressed, or any special favor or advantage in the dividends or other benefits to accrue thereon, or any valuable consideration or inducement whatever, not specified in the policy contract of insurance; and provided further, that this act or any part thereof shall not apply to the repayment by any mutual fire insurance com- pany organized under the laws of this State of any portion of its profits or reserve funds to the holder or holders of a policy or policies of or m such company or companies in accordance with its contracts, policies and by-laws. 3. Nothing in this act shall be construed as prohibiting the per- 270 FIRE INSURANCE LAWS, TAXES AND FEES. f ormance of any contract Ijeretof ore or hereafter made, for the introduction of betterments or improvements for reducing the risk by fire on any prop- erty located in this State, and containing provisions for obtaining or guar- anteeing insurance against loss or damage by fire or water, for a specified time, at a fixed rate. 4. Whoever violates any provision of this act shall, for each and every offense, forfeit and pay the sum of $100, such penalty to be sued for and recovered, with costs, in an action on contract in the nature of an action for debt, in any court of competent jurisdiction in the county wherein the offense shall have been committed, or in any county wherein such offender may reside or be served with process by any person who shall sue for the same ; one-half of such penalty shall be for the benefit of the person prosecuting the suit, and the other half shall be paid to the State Treasurer, and in case the defendant in any suit shall not pay the amount recovered against him, it shall be lawful for such court in which such judgment has been obtained to issue its process against the body of the defendant and to cause him to be committed to the jail of the county until the judgment and costs are paid; the imprisonment, however, not to exceed thirty days from the date of such commitment. Any fire insurance agent, sub-agent or broker who violates any provision of this act shall also forfeit his license and be disqualified from acting as a fire insurance agent, sub-agent or broker for the period of one year thereafter. Nothing in this act shall be construed as prohibiting the performance of any contract heretofore or hereafter made for the introduction of automatic sprinklers for reducing the risk by fire on any property located in this State, and such contract may contain provisions for reducing the cost of insurance on such sprinkler protected property, by rebate or otherwise." ATTORNEY — The Commissioner of Banking and Insurance must be ap- pointed attorney on whom process may be served. CANCELLATION OF POLICY— Provided for in standard policy; five days* notice to insured is necessary. CAPITAL REQUIRED — A domestic stock company must have a paid-up capi- tal of at least $100,000, with $50,000 for every kind of insurance more than one which it is authorized to transact. Any company of another State or foreign government must possess an unimpaired capital not less than that required of domestic stock companies. See "Deposit." COMMISSIONS TO NON-RESIDENTS— Sec. 81 is construed as requiring commissions to be paid to resident agents. DEPOSIT — Domestic companies are required to deposit $50,000 in securities, and after commencing business may be required to make further deposit up to $100,000. Foreign companies are required to have a deposit of not less than $200,000 nor less than the capital required of a domestic company transacting the same kinds of business. Such deposit must be made in some State of the United States for the benefit of all policyholders in the United States. There is no specific requirement as to the character of the invest- ments to be deposited by foreign companies. NEW JERSEY. 271 DOMESTIC COMPANIES— Chap. 134, Laws of 1902, Sec. i (as amended by Chap. 68, Laws of 1907). "Ten or more persons may become a cor- poration for the purpose of making any of the following kinds of insur- ance, to wit: I, against loss or damage to property by fire, lightning or tempest on land; II, upon vessels, freights, goods, moneys, effects, bot- tomry and respondentia interests, and every insurance appertaining to or connected with marine and inland risks of transportation and navigation; * * * XII, against loss or damage by water to any goods or premises arising from the breakage or leakage of sprinklers, pumps or other appara- tus erected for extinguishing fires, and of water pipes, and against acci- dental injury to said sprinklers and other apparatus." Certificates of in- corporation must set forth name of the company, which shall contain the words "insurance company," and which title must not closely resemble that of an existing corporation ; also kind of business to be transacted, location of principal office, which must be within this State, amount of capital, number of shares, par value, and period of duration of the com- pany. Capital must be at least $100,000, if a stock company, and $50,000 additional for each kind of business transacted more than one, or $10,000 in notes if a mutual company. A stock company must deposit $50,000 with the Commissioner of Banking and Insurance, and after commencing busi- ness must make further deposits up to $100,000, if required by the Commissioner. EXAMINATIONS— Chap. 134, Laws of 1902, Sees. 56, 62, 72. "The Com- missioner of Banking and Insurance shall have the power whenever he deems the same expedient, to make or cause to be made an examination of the assets and liabilities, method of conducting business and all other affairs of every insurance company authorized to transact business in this State, and for the purpose of said examination may employ such person or persons to assist therein or conduct the same, as he may deem advisable, which examination may be conducted in any State or country in which the company examined is incorporated or has an office, agent or place of busi- ness. * * * Whenever any insurance company of this State shall become insolvent or shall suspend its ordinary business for want of funds to carry on the same, or whenever the Commissioner of Banking and In- surance shall ascertain, as the result of an examination, as authorized by this Act, or in any other manner, that any such insurance company is exceeding its powers, or violating the law, or that its condition or methods of business are such as to render the continuance of its operations haz- ardous to the public or to its policyholders; or in the case of any stock insurance company other than a life insurance company, that its assets, after charging it with an amount requisite for the reinsurance of all its outstanding risks and with its other liabilities, including capital stock up to the minimum amount required by this Act, amount to less than such minimum amount of capital stock; or, in the case of any mutual insurance company other than life, if the assets, less unsettled claims and other actual 272 FIRE INSURANCE LAWS, TAXES AND FEES. liabilities amount to less than the sum requisite for reinsurance, * * * said Commissioner may apply by bill of complaint to the Court of Chan- cery for an injunction to restrain such company from the transaction of further business and from disposing of any of its assets and for the ap- pointment of a receiver to wind up the said company ; upon being satisfied of the truth of the allegations in such bill of complaint, the Chancellor may thereupon grant an injimction as prayed for, but permit the directors of the company to continue its business for the purpose of fulfilling the existing obligations of such company, or, in his discretion, may appoint a receiver, * * *" Certificates to foreign company found to be in an unsound con- dition may be revoked. Expenses must be paid by company examined. FEES — For certificate of incorporation, 20 cents for each $1000 of authorized capital stock ; in no case to be less than $25 ; for certificate of amendment of same, $20; for all certificates not hereby provided for, $5; for filing certified copy of charter, $20; for filing annual statement, $20; for each certificate of authority to an agent of other than a domestic company, $2 ; for each license to an insurance broker, $10; license to procure insurance in unauthorized companies, $20 ; for certificate of qualification of company, $1 ; for service of legal process, $2 ; for each copy of any paper filed with the Commissioner, 8 cents a sheet; for certifying same, $1. Fees payable to Commissioner of Banking and Insurance. See "Reciprocal Law." FIRE DEPARTMENT TAX— Chap. 240, Laws 1885, Sec. i. "Each fire insurance company not organized under the laws of this State shall, on the first day of January and of July of each year, cause to be made to the treasurer of the duly incorporated firemen's relief association of each city, town or borough, township, or portion of a township, or fire district in which any projjerty may be situated on which such company may have taken an insurance risk, a true return in writing, verified by the oath of an officer of such company, showing the amount of all premiums received by such company during the six months next preceding the respective times above set for making of such returns, for insurance, by said company, against loss or injury by fire, upon property in such city, town, etc.; and such company shall, within one month after the respective times above provided for the making of said returns, pay to said treasurer the sum of $2 upon each $100, and at that rate upon the amount of all such premiums received or agreed to be paid as aforesaid within said six months." Penalty for non-compliance, revocation of license. Agents and brokers are also re- quired to make like returns on January i and July i, and to pay a two per cent tax within one month thereafter, which is credited on the company's account. Penalty for neglecting to make returns, or for making false re- turns, fine of $500 and revocation of license. [Note. — This tax is not additional to, but a part of the State tax mentioned under "Taxes "] FIRE MARSHAL— No provision. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Not re- quired to be filed, except on first application for admission to State. NEW JERSEY. 273 GENERAL PENALTY— A general penalty of $500 and costs is imposed for all violations of law except failure to file annual statement. IMPAIRMENT— The authority of a company of another State or foreign country may be revoked if its assets above its liabilities, exclusive of capital and inclusive of unearned premiums, are less than the required minimum amount of capital or net assets. (See "Examinations.") INVESTMENTS PRESCRIBED— Chap. 134, Laws of 1902, Sec. 16; amended by Chap. 73, Laws of 1907. "Any insurance company of this State, for the purpose of investing its capital, surplus and other funds, or any part thereof, may purchase or hold as collateral security or otherwise, and sell and convey any bonds or public stock issued or created by the United States, or by this State, or by any of the other States of the United States, or the District of Columbia, or by any of the incorporated cities, counties, townships or other municipal corporations thereof, or bonds authorized to be issued by any commission appointed by the Supreme Court of this State, or invest said capital, surplus and other funds, or any part thereof, in bonds or notes secured by mortgages or trust deeds on unen- cumbered real estate located within said States, or the District of Columbia, worth at least one-half more than the sum invested or loaned, or lend on or purchase mortgage bonds of railroad companies organized under the laws of said States, or the District of Columbia, or of the Dominion of Canada, or operated wholly or partly in such States or country; or the capital stock, bonds, securities or evidences of indebtedness created by any corporation of the United States or any State." Chap. 61, Laws of 1909. "Any insurance company of this State doing business in any foreign country may invest so much of its funds as are required to meet the obligations incurred in such foreign country and in conformity to the laws thereof, on the same kind of securities issued in such foreign country that such company is by law allowed to invest in this State, and subject to the limitations imposed by law in this State." Domestic companies may acquire real estate sufficient for the accommodation of their business only; that conveyed to them in satisfaction of debts previously contracted, or that purchased at sales upon judgments, decrees or mortgages obtained or made for such debts, must be sold or otherwise conveyed within five years from the date the company acquired title thereto. Time of sale may be extended by the Chancellor for sufficient cause. Foreign companies may acquire real estate in the same manner as domestic companies. LICENSED BROKERS— Chap. 134, Laws of 1902, Sec. 81, provides that the Commissioner of Banking and Insurance may license any person as a broker to negotiate contracts of fire insurance for others than himself for a compensation, by virtue of which license he may effect insurance with any qualified insurance company of New Jersey, or with agents resident and having a bona fide place of business in New Jersey of any company of another State or foreign country licensed to do busmess in New Jersey, but with no others. * * * por such license he shall pay a fee of $10, 274 FIRE INSURANCE LAWS, TAXES AND FEES. authorizing him thus to act until the thirty-first day of December then next, and on payment of a similar fee his license may be renewed from year to year. Special agents may be licensed to deal with unauthorized com- panies, as follows : Chapter 134, Laws of 1902, Sec. 82, provides that the Commissioner of Banking and Insurance may issue a license to any citizen of the State, revocable at any time, permitting the person named therein to procure fire insurance as agent on property in New Jersey in unauthorized companies, after filing an affidavit with said Commissioner to the effect that after diligent effort the agent has been unable to find insurance in author- ized companies to the full amount required on such property. Such licensed person shall not be required to offer any portion of such insurance to com- panies whose assets are less than $25,000, or to companies which have, within the preceding twelve months, been in an impaired condition. Each person so licensed shall keep a separate account of such business done under this license, which shall at all times be open to the inspection of said Com- missioner, or person employed by him to inspect the same; and to keep an exact account of each transaction, the amount insured, company accept- ing same, and gross premiums charged thereon, together with the date of policies and the term thereof. It is also necessary to file a bond with the Commissioner of Banking and Insurance in the penal sum of $3000 for a guarantee that the person so licensed will comply with all the requirements of this act, and will pay to said Commissioner, or where such policies cover risks in any city, town, borough, township or portion of township, or fire district in the State of New Jersey, which now has, or may hereafter have, a duly incorporated firemen's relief association, to the treasurer of such association, in January and July of each year, the sum of $3 for each $100 of gross premiums charged under such license during the preceding six months. LIMIT ON A SINGLE RISK— Ten per cent of net assets. Deductions of reinsurances in authorized companies are allowed, only net risks being considered. Fine for violation, $500. LLOYDS— Chap. 338, Laws of 1895; Chap. 105, Laws of 1896. "It shall and may be lawful for any number of individuals or firms to associate themselves together under what are known as Lloyds associations, to be composed of not less than twenty members each, possessing each in his individual right in value not less than $20,000 of personal property and real estate, situate within this State, above all incumbrances, for the purpose of underwriting and contracting and issuing policies of insurance, insuring property against direct loss or damage by fire or lightning, upon what is known as the Lloyds plan, and to adopt names for each of said associations, and such rules and regulations for the governance of the same as may be necessary for the carrying out of the purposes of the said Lloyds asso- ciations." Provision is made for change of name. Lloyds are subject to examination by the Insurance Department, and are, in general, subject to supervision in like manner as stock companies. Statements and a two pel NEW JERSEY. 275 cent tax on premiums are required in January. Penalty for any violation of act relating to Lloyds, fine of $500 and costs. MISCELLANEOUS — False or misleading advertisements are forbidden. Upon failure of appraisers for ten days to choose an umpire, either the insurer or the company may apply to the inferior Court of Common Pleas of the county in which the fire loss to be adjusted occurred, to appoint an umpire. Chap. 340, Laws of 1911, provides that failure of insured to fur- nish proofs of loss shall not be or considered a waiver of any rights accruing under the policy of insurance unless after said loss sixty days' notice in writing, that said company desires said proofs of loss, be furnished the person so insured. MUTUAL COMPANIES — May be organized by not less than ten persons, and begin business with $10,000 of notes. Other State mutual companies may be admitted if in possession of net cash assets equal to the capital re- quired of a stock company. See "Domestic Companies." PRELIMINARY DOCUMENTS— Company entering State must file certified copy of charter, verified statement showing that it has at least an amount of capital equal to that required of a domestic company of the same class (above liabilities), appointment of Commissioner of Banking and Insur- ance as attorney, upon whom process may be served. Certificate of com- pliance with laws of company's home State must be filed annually in January. PUBLICATION— Statements not required to be published except under recip- rocal provision. (See "Miscellaneous.") RECIPROCAL LAW— Chap. 134, Laws of 1902, Sec. 66; amended. Chap. 66, Laws of 1904. "When by the laws of any other State or foreign coun- try, or the rules, regulations, requirements or impositions thereof, or of any department or officer thereof, any taxes, fines, penalties, licenses, fees, deposits of moneys or of securities or other obligations, prohibitions or restrictions additional to, or in excess of, those imposed by the laws of this State upon insurance companies of such other State or foreign country or their agents, are imposed on insurance companies of this State doing business in such other State or foreign country, or upon their agents therein, so long as such laws, rules, regulations, requirements or imposi- tions continue in force, the same excess taxes, fines, penalties, licenses, fees, deposits, obligations, prohibitions and restrictions, of whatever kind, shall be imposed upon all such insurance companies of such other State or for- eign country doing business within this State, and upon their agents here ; and whenever pursuant to or under authority of the laws of any other State or foreign country, or the rules, regulations, requirements or imposi- tions thereof, or of any department or officer thereof, or otherwise, the government of any such other State or foreign country, or any department or officer thereof, shall refuse to accept as conclusive the certificate of the Commissioner of Banking and Insurance of this State as to the results of any examination he shall cause to be made of the assets and liabilities, 276 FIRE INSURANCE LAWS, TAXES AND FEES. method of conducting business and other affairs of any insurance company of this State, the said Commissioner of Banking and Insurance of this State shall refuse to accept as conclusive any and all similar certificates made in or by, or by any department or officer of, such State or foreign country where the acceptance of the certificate of the Commissioner of Banking and Insurance of this State is refused as aforesaid, concerning any and every insurance company thereof ; and if any insurance company of this State shall be refused or denied license, permission, privilege or authority to transact or to continue to transact its business in any other State or foreign country by reason of such refusal of conclusive acceptance of any such certificate of the Commissioner of Banking and Insurance of this State, or if any insurance company of this State authorized to transact its business in this State, after complying with all the laws, rules, regula- tions, requirements or impositions of any other State or foreign country, or of any department or officer thereof, over and above such as would be met and fulfilled by the conclusive acceptance of such certificate of the Commissioner of Banking and Insurance of this State, shall be refused or denied license, permission, privilege or authority to transact or to con- tinue to transact its business in any such other State or foreign country, then and in every such case every insurance company of every such other State or foreign country where any such insurance company of this State is refused or denied license, permission, privilege and authority to transact or to continue to transact its business as aforesaid, shall be refused and denied license, permission, privilege and authority to transact or to con- tinue to transact any business in this State, and any license or authority to it or them theretofore given shall be, by the Commission of Banking and Insurance of this State, revoked and annulled ; and whenever pursuant tc or under authority of the laws of any other State or foreign country, or the rules, regulations, requirements or impositions thereof, or of any de- partment or officer thereof, or otherwise, the government of any such other State or foreign country, or any department or officer thereof, shall refuse or deny license, permission, privilege and authority to any insurance com- pany of this State to transact or to continue to transact its business in such other State or foreign country, if it shall be determined by the Commis- sioner of Banking and Insurance of this State, whose determination there- upon shall be final and conclusive, that such refusal or denial of license, permission, privilege or authority as last aforesaid, is unreasonable or unfair, then the Commissioner of Banking and Insivrance of this State shall refuse or deny license, permission, privilege or authority to transact or to continue to transact any business in this State to each and every such com- pany of every such other State or foreign country where any such insurance company of this State is so refused or denied as last aforesaid, and any license or authority to it or them theretofore given shall be by the Com- missioner of Banking and Insurance of this date, revoked and annulled." REINSURANCE — Reinsurance of risks by admitted companies in those not NEW JERSEY. 277 licensed to do business in the State, while not expressly forbidden by the statutes, is held by the Commissioner of Banking and Insurance to be "clearly violative of the intent and spirit of such laws," i. e., those pro- hibiting, under penalty, the placing of insurance on New Jersey property in companies not legally qualified to operate in that State. REINSURANCE RESERVE — Fifty per cent of premiums on risks running one year or less, and pro rata for longer terms. RESIDENT AGENTS— Chap. 134, Laws of 1902, Sec. 80. "No fire insurance company of another State or foreign country may transact business in this State except through duly constituted and appointed agents resident herein, who shall maintain a bona fide duly operated business office in this State and shall issue and countersign all policies and contracts so issued. This section shall not apply to direct insurance covering the rolling stock of railroad corporations operating between different States or property received for shipment from one State to another while in the possession or custody of railroad corporations or other common carriers." SEMI-ANNUAL STATEMENTS— See "Fire Department Tax." STANDARD POLICY— A standard form of policy, similar to that of New York State, is required to be used. Penalty for violation, fine of $500 for each offense. TAXES — Chap. 134, Laws of 1902, Sec. 65, as amended by Chap. 11, Laws of 1906, provides that annually on or before the fifteenth day of February in each year, every fire insurance company shall pay to the Commissioner of Banking and Insurance a tax of two per centum on the gross amount of premiums received by such companies on business in this State for the preceding calendar year, including all premiums received from other com- panies for reinsurance of them, less return premiums and premiums paid for reinsurance in other companies of other States or foreign countries licensed to do business in this State. This tax is in lieu of all other franchise taxes. Domestic companies are taxed locally upon the full amount of their capital stock paid in and accumulated surplus, less the assessed value of the real estate owned, which is taxed where situated, and the assessment thereon is deducted from the assessment upon the capital stock and surplus. No premium or other franchise tax is imposed upon such companies. (See "Reciprocal Law" and "Fire Department Tax.") TAX STATEMENTS— Must be filed by February 15. See also "Fire De- partment Tax." VALUED POLICY— No requirement. COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. None, except to firemen's relief associations, which is a part of the State tax. NEWARK — Underwriters Protective Association (Salvage Corps), about three per cent on premiums. NEW MEXICO. TERRITORIAL REQUIREMENTS. AGENTS DEFINED— See "Agents' Licenses." AGENTS' LICENSES— Act of February 9, 1905. Sec. 15. "It shall be un- lawful for any person, company or corporation in this Territory either to procure, receive or forward applications for insurance in or to issue or to deliver policies for any company or companies not having complied with the provisions of this act, or to adjust any loss, or in any manner, either directly or indirectly to aid in the transaction of the business of insurance with any such company, unless duly authorized by such company and licensed by the Superintendent of Insurance, in conformity with the pro- visions of this act, and any person violating the provisions of this section shall be deemed guilty of a misdemeanor, and, upon conviction thereof, shall for each and every offense, be punished by a fine of $500 or imprison- ment for six months in the county jail, or both, in the discretion of the court." Companies must supply their agents with copies of their certifi- cates of authority, which expire on the last day of February. License re- quired for each member of a firm. Agency corporations are not recognized, and licenses must be secured by individuals who aid such corporations in the transaction of business. ANNUAL STATEMENTS— Must be filed on or before March i. Penalty for making false entry or statement, fine not exceeding $1000 and imprison- ment for from two months to five years. ANTI-COINSURANCE — No prohibition of use of coinsurance clauses. ANTI-COMPACT— Compiled Laws, 1897, Sec. 2138. * * * "That they shall not charge any higher rates than those charged on the first day of January, 1897." Penalty for violation, fine of $100 to $1000. ANTI-DISCRIMINATION— No provision ATTORNEY — The Superintendent of Insurance must be authorized to ac- cept service of process. CANCELLATION OF POLICY— Provision must be made in policy for cancellation and return of unearned premium. CAPITAL REQUIRED — Other State companies must have $200,000 capital. See "Domestic Companies." COMMISSIONS TO NON-RESIDENTS— Commissions must be received by resident agents. DEPOSIT— Compiled Laws, 1897, Sec. 2138. "No fire insurance company shall be permitted to do any business in this Territory until such company, in addition to other requirements of law, shall deposit with the Treasurer of this Territory the sum of not less than $10,000 in lawful money of the United States, or in bonds of the Territory of New Mexico, or some NEW MEXICO. 279 county or city thereof, of the par value of $10,000, in territorial or county, bonds, or real estate, which deposit shall be held for the benefit and security of the policyholders residing in the Territory of New Mexico, with the condition that said deposit shall not be surrendered to such company until all claims in this Territory shall have been satisfied." Penalty for non- compliance, fine of $100 to $iooo. Foreign companies must have at least $200,000 on deposit with the officials of some State or Territory. An un- derwriters agency must make deposit in the same manner as a company. DOMESTIC COMPANIES— Chap. 5, Laws of 1905, Sec. 26 (as amended in 1909) : "When any number of persons associate themselves for the pur- pose of forming an insurance company for any other purpose than life insurance or the insur2mce of titles to real estate, they shall publish a notice of such intention once in each week for four consecutive weeks in some newspaper in the county in which said insurance company is proposed to be located, and they shall also make a certificate under their hand speci- fying the name assumed by such company and by which it shall be known ; the object for which said company shall be formed ; the amount of capital stock and the place where the principal office of said company shall be located, which certificate shall be acknowledged before, and certified by some notary public or clerk of the court of record, and forwarded to the Superintendent of Insurance, who shall submit the same to the Attorney- General for examination, and if it shall be found by the Attorney-General to be in accordance with the provisions of this act and not in conflict with the Constitution and laws of the United States and this Territory he shall make a certificate of the facts and return it to the Superintendent of In- surance, who shall reject the name or title applied for by any company when he shall deem the same too similar to any one already appropriated by any other company or likely to mislead the public." Sec. 28. "No joint stock company shall be incorporated under the provisions of this act with a smaller paid-up cash capital as provided for in this act." No mutual insurance company shall do any business in the territory unless possessed of an actual paid-up cash guaranty fund of not less than $100,000. EXAMINATIONS— Act of Feb. 9, '05 (amended '09). Sec. 9. "The Superin- tendent may, with the consent of the Governor whenever he deems it prudent, visit and examine, or cause to be visited and examined by some competent person or persons he may appoint for that purpose, any insur- ance company applying for admission or already admitted to do business in this Territory. Such examination shall include a thorough inspec- tion and examination into its affairs, especially as to the financial conditions and ability of said company to fulfill its obligations to the policyholders and whether it has complied with the laws of this Territory and such company shall pay the proper charges incurred in such examination, in- cluding the expenses of the Superintendent or his deputies, and the ex- penses and compensation of his assistants employed therein. * * * The Suoerintendent mav also make an examination with the consent of the Gov- 280 FIRE INSURANCE LAWS, TAXES AND FEES. ernor, of any such company, upon the request of five or more of the stock- holders, creditors, policyholders or persons pecuniarily interested therein, who shall make affidavit of their belief, with specifications of their reasons therefor in writing that such company is in an unsound or insolvent condi- tion: Provided, That only the United States branches of all foreign companies in this Territory may be examined by said Superintendent." Penalty for refusing information, fine not exceeding $500 or imprison- ment not exceeding three months. FEES — Act of Feb. 9, '05 (amended '09). Sec. 11. "There shall be paid by every insurance company doing business in this Territory, to the Superintendent of Insurance the following fees, viz. : For filing the certified copy of articles of incorporation required by this act of the organization of each company, $50; for filing power of attorney and statement preliminary to admission, ; $50; for filing copy of its charter or deed of settlement and examination thereof, $50 ; for filing annual statements, $20 ; for certificate of authority to transact business in this Territory, $2; for each copy of certificate of authority for use of agents, $2; for each copy of any paper filed in his office, 20 cents ; for affixing the seal of his office and certifying any paper, $1." The Superintendent also receives $2 for each copy of process. See "Publication." See "Reciprocal Law." FIRE DEPARTMENT TAX— The fire department tax law of 1897 was repealed, and Sec. 13 of act of February 9, 1905, provided "that the treas- urer shall annually on the first day of August each year, pay to the treas- urer of the fire departments of every city, town or village in this Territory a sum of money equal to the amount received by such fire department under Sec. 2132 of the compiled laws of 1897 during the year 1904." A law passed in 1907 provided that fire companies that had been organized in cities since 1904 should thereafter share in the insurance fund with de- partments previously organized. The present plan is as follows : The "New Mexico Association of Firemen" receives $2000 on August i (in- stead of 10 per cent of receipts of the Insurance Department). The fol- lowing-named cities and towns receive on August i the respective sums named instead of the sums heretofore paid: Carlsbad, $600; Roswell, $600; Springer, $500; Santa Fe, $1200; Las Vegas, $800; East Las Vegas, $400 ; Alamogordo, $700 ; Albuquerque, $2250 ; Silver City, $600 ; Deming, $500 ; Socarro, $500 ; Las Cruces, $500 ; Tucumcari, $500 ; Raton, $1200 ; Clayton, $500 ; Artesia, $500 ; Gallup, $500. FIRE MARSHAI^None. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— None re- quired. GENERAL PENALTY— For any violation of the act of February 9, 1905, revocation of license, which latter shall not be renewed for six months thereafter. Penalty for any violation of the Compiled Laws of 1897, a fine not exceeding $1000, and imprisonment for from thirty days to six months. NEW MEXICO. 281 IMPAIRMENT — Certificate of unsound companies to be revoked INVESTMENTS PRESCRIBED— The capital and accumulated funds of a domestic company may be invested in bonds and mortgages on real estate in New Mexico worth at least double the amount loaned thereon, or in bonds of any railroad, transportation or other dividend-paying corporation or in bonds of any State or Territory, or in bonds or treasury notes of the United States, or in the stocks and bonds of any county or incorporated city in any State or Territory which may have been legally authorized to be issued by the legislature, or may lend the same or any part thereof on the security of any of the above, provided that the current market value of such securities shall be at all times during the continuance of such loan at least twenty per cent more than the amount loaned thereon. No domestic company shall purchase or hold real estate except such as may be necessary for the convenient accommodation of its business, and all other real estate acquired in the legitimate course of its business in satisfaction of debts legally contracted, shall be sold within three years after the date on which such company perfected its title thereto, but time may be extended for the sale by the Territorial Superintendent for sufficient cause. LICENSED BROKERS— No provision. LIMIT ON A SINGLE RISK— Ten percent of paid-up capital and surplus (net). (Companies are forbidden "to write on risk within the corporate limits of any one city an amount representing more than the paid-up capital of the company, unless the excess shall be insured by the same in some other good and reliable company or companies.") LLOYDS — Compiled Laws, 1897, Sec. 2137. "Nothing in this act shall be so construed as to prevent any number of persons, not exceeding 200, from making mutual pledges and giving valid obligations to each other for their own insurance from loss by fire or death ; but such associations or persons shall in no case insure any property not owned and specified by one of their own number ; nor shall the provisions of this act be applicable to such asso- ciations or companies ; provided, such associations or companies shall in no case pay any salary or compensation to officers, agents or other employees, and shall receive no premiums nor make any divisions." Chap. 5, Sec. 19, of Laws of 1905, as amended in 1909, defines "insurance company" as in- cluding "all corporations, associations, partnerships or individuals engaged as principals in the insurance business, excepting fraternal and benevolent orders or societies." MISCELLANEOUS — A company may operate under one additional title by designating such title and making an additional deposit of $io,coo. MUTUAL COMPANIES— See "Domestic Companies." Mutual companies are forbidden to write upon the "stock plan." PRELIMINARY DOCUMENTS— Act of February 9, 1905. Sec. 17. "No insurance company, not incorporated, or organized under the law of this Territory, shall transact any insurance business in this Territory, unless it shall first file in the office of the Superintendent of Insurance a duly 282 FIRE INSURANCE LAWS, TAXES AND FEES. certified copy of its charter, or articles of incorporatioHj or deed of settle- ment together with a statement, under oath, of the president and secretary, or other chief officers of said company, showing the condition of affairs of such company on the 31st day of December next preceding the date of such oath. The statement shall be in the same form and shall set forth the same particulars as the annual statement required by this act, and shall also, before permission is given to transact business and before the renewal of its certificate of authority, file a certificate signed by its presi- dent or chief officer to the effect that all the provisions of this act are ac- cepted by it as a part of the conditions of its right and authority to trans- act business in this Territory." Articles of incorporation, or charter, and power of attorney, need be filed but once. PUBLICATION — A statement of the financial condition of each fire insurance company shall be published annually in each county in which it is doing business. The law concerning publication of legal notices requires publica- tion in a newspaper printed in English and in one printed in Spanish, if such is published in the county (a paper printed in both English and Spanish is considered as Spanish), at least once annually in each county where company does business. Legal rate, 30 cents per 100 ems for first insertion, and 20 cents per 100 ems for each subsequent insertion. RECIPROCAL LAW— Compiled Laws, 1897, Sec. 2127. "Whenever the existing and future laws of any State or Territory of the United States shall require of insurance companies incorporated by or organized under the laws of this Territory, having agencies in such other State or Territory, or of the agents thereof, any deposit of securities in such State or Territory for the protection of policyholders or otherwise, or any payment for taxes, fines, penalties, certificates of authority, license fees or otherwise greater than the amount required for such purposes from similar companies of other States and Territories, by the then existing laws of this Territory, then, and in every such case, all companies of such States or Territories, es- tablishing, or having heretofore established, an agency or agencies in this Territory, shall be, and are hereby, required to make the same deposit for a like purpose with the Auditor of this Territory, and to pay said Auditor for taxes, fines, penalties, certificates of authority, Hcense fees, or otherwise, an amount equal to the amount of such charges and payments imposed upon, or required by, the laws of such State or Territory, of the companies of this Territory or the agents thereof." REINSURANCE— No express prohibition of reinsurance in unlicensed com- panies, but authorized companies are forbidden to reinsure New Mexico risks of unauthorized companies. Reinsurances must be reported. See "Resident Agents." REINSURANCE RESERVE-Fifty per cent of premiums on unexpired risks under one vear, and pro rata on all risks having more than one year to run RESIDENT AGENTS-Act of February 9, 1905. "No fire insurance com- pany or association not incorporated under the laws of this Territory, but NEW MEXICO. 283 legally authorized to transact 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 Territory except after the said risk has been approved, in writing, by an agent who is a resident of this Territory, regularly commissioned and licensed to transact insurance business herein, who shall countersign all policies so issued and receive the commission thereon when the premium is paid, to the end that the Territory may receive the taxes required by law to be paid on the pre- miums collected for insurance on all property located in the Territory." Reinsurance policies need not be countersigned by a resident agent. SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— No requirement. TAXES— Act of Feb. 9, '05 (amended '09) . Sec. 1 1. "* * * All insurance com- panies, partnerships or associations engaged in the transaction of the busi- ness of insurance in this Territory shall annually on or before the first day of February in each year, pay to the Superintendent of Insurance two per centum on the gross amount of premiums received, less returned premiums, within this Territory during the year ending the previous 31st day of December; and insurance companies shall be subject to no other taxation than herein provided, except upon real estate." TAX STATEMENTS— Must be filed on or before February i. VALUED POLICY— No provision. COUNTY TAXES AND FEES. COLFAX— For each company, $11, payable October i. OTERO — For each agent, $10, payable quarteriy, semi-annually or annually. TAOS — Three to three and one-half per cent. MUNICIPAL TAXES AND FEES, I^TON — For each agent, $11 per annum. ROSWELl^For each agency, $16, in quarteriy payments. SILVER CITY— For each agent, $3, payable quarteriy. NEW YORK. STATE REQUIREMENTS. AGENTS DEFINED— Ins. Law, Sec. 49 "* * * The term 'agent,' in this chapter, shall include an acknowledged agent or surveyor or any other person who shall in any manner aid in transacting the insurance business of any insurance corporation not incorporated by the laws of this State, and any broker whose business, in whole or in part, is to negotiate for and place risks, deliver the policies covering the same and collect pre- miums therefor." The term "agent," in Sec. 142, is defined as includ- ing an authorized agent or surveyor or any other person, partnership, asso- ciation or corporation who shall in any manner aid in transacting the insur- ance business of any underwriter, incorporated or unincorporated. The term "broker,'' in Sec. 142, is defined as including any person, partnership, association or corporation who for compensation acts or aids in any man- ner on behalf of the insured in negotiating contracts of insurance or plac- ing risks or procuring insurances, including surety bonds. A broker may be authorized to act as agent for an underwriter for the collection of premiums. AGENTS' LICENSES — Agents for foreign corporations are required to pro- cure annually, within 6 months after January i, a certificate of authority from the Superintendent of Insurance. Penalty for operating without license, $500 for first offense, and an additional $100 for each month of continued violation. Each person is named in a firm's certificate. Each solicitor for a corporate agency must be licensed. On and after January i, 1912, under Sec. 142, no person, partnership, association or corporation is permitted to act as agent for any underwriter, incorporated or unincorpo- rated, in the transaction of insurance business in New York, unless such underwriter shall have complied with the law, and every such agent shall annually, on January i or within six months thereafter, procure a cer- tificate of authority from the Superintendent of Insurance. No under- writer shall employ an agent who does not possess a certificate of author- ity, nor shall such underwriter pay any commission or other compensation to any person, partnership, association or corporation not a duly author- ized agent of such underwriter, for services in obtaining or placing insurance, unless such person, partnership, association or corporation shall have first procured from the Superintendent of Insurance a certificate of authority to act as broker to solicit such insurance. No person shall act as a broker without securing a certificate of authority, which must be renewed annually on January i, or within six months thereafter. A broker's certificate will only be issued to an applicant who makes insurance brokerage his principal business, or conducts such business in connection NEW YORK. 285 with a real estate agency or brokerage business, and is not a salaried employee of any person, partnership, association or corporation on whose property he receives or expects to receive application for insurance; and he must also state that he does not apply for a certificate for the sole pur- pose of securing commissions on insurance on his own property. Agents' or brokers' certificates may be revoked for at least one year for violation of law, and any violation of this law is also punishable by a fine of $500. ANNUAL STATEMENTS— ]\Iust be filed by February 15, showing condition as of December 31 preceding. Penalty for failure to make annual statement as required, $500, and $500 for each month the company remains in de- fault and continues to transact business. For making deceptive statements, $500 for first, and $1000 for each subsequent offense. In 1908, the In- surance Department began requiring brief quarterly statements. Capital statements are required to be filed in January by foreign companies. The Superintendent of Insurance is authorized by Sec. 46, to include in his reports companies' statements as audited and corrected by him. ANTI-COINSURANCE — No statute prohibiting use of coinsurance clauses. ANTI-COMPACT— No provision. ANTI-DISCRIMINATION— The giving or receiving of rebates is prohibited. ATTORNEY — The Superintendent of Insurance must be appointed attorney to accept service of legal process for foreign corporations. BROKERS' LICENSES— See "Agents' Licenses." CANCELLATION OF POLICY— Ins. Law, Sec. 122. "Any corporation, person, company or association transacting the business of fire insurance in this State shall cancel any policy of insurance upon the request of the in- sured or his legal representatives, and shall return to him or to such repre- sentative the amount of premium paid, less the customary short-rate pre- mium for the expired time of the full term of which the policy has been issued or renewed, notwithstanding anything in the policy to the contrary. Where the laws of any State permit corporations organized under its laws to cancel policies of insurance upon different terms than herein set forth, corporations organized under the laws of this State may cancel policies upon risks in any such State upon the same terms as are provided for corporations organized under its laws." CAPITAL REQUIRED — Companies must have at least $200,000 of paid-up capital. Under the provisions of Sec. 12 of the Insurance Law, no com- pany can be organized under the laws of New York State for the trans- action of fire or marine insurance with a smaller capital than $200,000, the same to be paid in in cash ; and a new company must have an initial surplus equal to at least fifty per cent of its capital stock. Insurance Law, Sec. 27. "A foreign insurance corporation incorporated by or existing under the government or laws of any country outside of the United States, and admit- ted to do business in this State, shall not transact any business of insurance in this State, unless it shall have within the United States, deposited with Insurance Departments or held in trust as hereinafter provided, not less 286 FIRE INSURANCE LAWS, TAXES AND FEES. than $500,000, if a fire insurance corporation, and not less than $200,000 if a life or casualty insurance corporation, invested in like manner as the capital of a similar domestic insurance corporation is required to be invested * * *." Capital statements must be filed annually in January. COMMISSIONS TO NON-RESIDENTS— No provision. DEPOSIT — Foreign companies of other countries transacting fire or marine insurance must deposit $200,000 with the New York Insurance De- partment in securities of the following classes: Ins. Law, Sec. 13. "Every deposit made with the Superintendent of Insurance by any domestic or foreign insurance corporation, shall be in the stocks or bonds of the United States or of this State, or in the bonds of a county or incor- porated city in this State, authorized to be issued by the legislature, not esti- mated above their par or their current market value. Such deposit may be made by an insurance corporation incorporated under the laws of another State of the United States in the stocks or bonds of such State or in the bonds of a county or incorporated city therein authorized to be issued by the legislature, not estimated above their par or their current market value ; provided that similar domestic insurance cor- porations doing business in such State are authorized by the laws thereof to deposit or hold as security therein for the benefit or security of their policyholders and creditors in such State like securities of this State. Such deposit may be made by an insurance corporation incorporated under the laws of a country outside of hte United States authorized to do business in this State in the stocks or bonds of such country or of any province or city therein, or, if any securities other than those above named are offered as a deposit, they may be accepted at such valuation and on such conditions as the Superintendent of Insurance may direct, provided that similar domestic insurance corporations doing business in such country outside of the United States are authorized by the laws thereof to deposit or hold as security therein for the benefit or security of their policyholders and credi- tors in such country the stocks or bonds of the United States, the stocks or bonds of this State or of any county or incorporated city in this State and securities of the same geeneral character as those which are offered for deposit in the Insurance Department; and provided, further, that if any country makes a deduction from the value of the securities deposited by similar domestic corporations, a similar deduc- tion shall be made from the securities deposited in the Insurance Depart- ment by corporations incorporated under the laws of such country. If the market value of any of the securities which have been deposited by any company shall decline below that at which they were deposited, the Super- intendent of Insurance shall call upon the company to make a further deposit, so that the market value of all securities deposited by any such company shall be equal to the amount which it is required to deposit." Sec. 2^ provides that in addition to the $200,000 required to be deposited NEW YORK. 287 with the Insurance Department, a company of another country must have at least $300,000 additional deposited with Insurance Departments or trustees within the United States. Sec. 28. "* * * A. foreign insurance corporation incorporated by or existing under the government or laws of any country outside of the United States, authorized to transact the business of fire insurance in this State, may be authorized to transact the business of ocean marine insur- ance, provided it makes an additional deposit with the Superintendent of Insurance of $200,000 in deposit securities, and files with the Insurance Department annually a separate financial statement for each class of busi- ness." Sec. 26 operates as a reciprocal provision against companies located in States requiring deposits from New York companies. See "Reciprocal Law." DOIMESTIC COMPANIES— Insurance Law, Sec. no. "Thirteen or more persons may become a corporation for the purpose of making insurances on dwelling houses, stores and all kinds of buildings and household furniture, and other property against loss or damage by fire, lightning, windstorms, tornadoes or earthquakes, and also against loss or damage by water to any goods or premises arising from the breakage or leakage of sprinklers, pumps or other apparatus, erected for extinguishing fires, and of water pipes, and against accidental injury to such sprinklers, pumps or other ap- paratus, and upon vessels, boats, cargoes, goods, merchandise, freights and other property against loss or damage by all or any of the risks of lake, river, canal and inland navigation and transportation, as well as by any or all of the risks specified in Sec. 150 of this chapter, in- cluding insurances upon automobiles, whether stationary or being operated under their own power, which shall include all or or any of the hazards of fire, explosion, transportation, collision, loss by legal liability or damage to property resulting from the maintenance and use of automobiles, and loss by burglary or theft or both, but shall not include insurances against loss by reason of bodily injury to the person, and to effect reinsurance of any risks taken by it, by filing in the office of the Superintendent of Insur- ance a declaration signed by all of them of their intention to form a cor- poration for the purpose of transacting the business of making any or all of such insurances, which shall comprise a copy of the charter proposed to be adopted by them, setting forth the name of the corporation, the place of location of its office, the mode in which its corporate powers are to be exercised and its directors elected, a majority of whom shall be citizens of this State, and if a stock corporation, the owner in his own right of at least $500 of the stock of the corporation, at its par value, the mode of filling vacancies in the office of director, the period for the commencement and termination of its fiscal year and the amount of capital to be employed in the transaction of its business ; provided that a corpora- tion including in its charter a provision to assume any of the risks of ocean 288 FIRE INSURANCE LAWS, TAXES AND FEES. marine insurance, as specified in Sec. 150 of this chapter, must have a capital, paid in in cash, of at least $400,000. No such declaration shall be filed unkss the person signing the same shall have previously published for at least two weeks successively a notice of their intention to form such a corporation in a public newspaper in the county where its office is to be located. Every such corporation shall be known as a fire insurance cor- poration." The name of a new company must not so closely resemble that of a company already authorized in the State as to be calculated to de- ceive. Town and county co-operative fire associations are now under the supervision of the Insurance Department. EXAMINATIONS— Ins. Law, Sec. 39. "The Superintendent of Insurance shall, as often as he deems it expedient, and if a domestic life insurance corporation, at least once in three years, or, if any other domestic insurance corporation, association, society or order, at least once in five years, examine into the affairs of any insurance corporation doing business in this State, and into the affairs of any corporation organized under any law of this State or having an office in this State, which corporation is engaged in or is claiming or advertising that it is engaged in organizing or receiving subscriptions for or disposing of stock of, or in any manner aiding or taking part in the formation or business of, an insurance corporation or corporations, or which is holding the capital stock of one or more insurance corporations for the purpose of controlling the management thereof as voting trustee or otherwise." Sec. 25. "The Superintendent of Insurance shall have the same supervision and make the same examination of the busi- ness and affairs of every foreign insurance corporation doing business in this State, as of domestic insurance corporations, doing the same kind of business, and of its assets, books, accounts and general condition. Every such foreign corporation and its agents and officers shall always be subject to and be required to make the same statements and answer the same in- quiries and be subject to the same examinations, and, in case of default therein, to the same penalties and liabilities as domestic insurance corpora- tions doing the same kind of business, or any of the agents or officers thereof, are or may be liable to under the laws of this State or the regula- tions of the Insurance Department. The Superintendent may, whenever he deems it necessary, either in person or by a proper person appointed by him, repair to the general office of such foreign corporation, wherever the same may be, and make an investigation and examination of its affairs and condition. He may cancel and revoke the certificate of any such foreign corporation refusing or unreasonably neglecting to comply with the provi- sions of this section, or to allow the examination herein provided for to be made, and prevent such corporation from further continuance in busi- ness in this State. A foreign insurance corporation may transact in this State only such kind of business as, under the laws of this State, a like domestic insurance corporation is authorized to transact." FEES— For filing declaration and certified copy of charter, $30; for filing an- NEW YORK. 289 nual report (foreign companies), $20; for each certificate of authority and certified copy thereof, and for each certificate of deposit, valuation or com- pliance, not exceeding $5 ; for each copy of paper on file, per folio, 10 cents ; for affixing official seal, $1 ; for each copy of process, $2. Foreign com- panies, certificate of compliance, $5; corporation certificate, $2. See "Re- ciprocal Law." See summary of Sec. 142, under "Agents' Licenses." License fees for agents of companies of other States are governed by the reciprocal law. License fee for agent of company of foreign country, $2. Brokers' license, $10 in city of first or second class, and $2 elsewhere. No fee is charged domestic companies for filing annual statements, or charter, and other State companies' fees are governed by the reciprocal pro- vision. Authority to remit all fees is vested in the Superintendent of In- surance, and they are remitted when like consideration is shown New York companies by other States. Fees are payable to the Superintendent of In- surance. The expense of an examination is borne by the company exam- ined, unless remitted by the Superintendent. FIRE DEPARTMENT TAX— Ins. Law, Sec. 133. "Except in the cities of New York and Buffalo there shall be paid to the treasurer of the fire de- partment of every city or village of this State, whether incorporated or unin- corporated, having a fire department, company or organization, for the use and benefit of such department, or to the treasurer of such fire department within the fire limits, as established by law, of an unincorporated village, and when no treasurer of a fire department exists, then to the treasurer or other fiscal officer of such city or village, or in case of an unincorporated village to the Supervisor of the town in which such village is situated who, for the purposes of this chapter, shall have the same powers as the treasurers of fire departments, on the first day of February of each year, by every person who shall act as agent for or on behalf of any foreign fire in- surance corporation, association or individuals which insure property against loss or injury by fire, the sum of $2 upon the $100, and at that rate upon the amount of all premiums which during the year or part of a year ending on the last preceding thirty-first day of December shall have been received by such agent or person, or received by any other person for him, for any insurance effected or procured by him as such agent or broker against loss or injury by fire upon property situate within the corporate limits of such city or village, or within the fire limits of such unincorporated village." A tax of two per cent must be paid by companies doing business in New York city to the trustees of the Exempt Firemen's Benevolent Fund. (See Chap. 378, Laws of 1897, as amended; sections 798-812 being a part of the charter of Greater New York.) Simi- lar tax in city of Buffalo is provided for in Chap. 105, Laws of 1891, Sec. 265. Sec. 134. "No person shall, as agent foi any such foreign insurance corporation, association or individuals, effect any insurance upon any property situate in any city or village of this State upon which the sums specified in the preceding section are required to be 290 FIRE INSURANCE LAWS, TAXES AND FEES. paid ; or as such agent procure such insurance to be effected, until he shall have executed and delivered to the officer to whom such account is to be ren- dered and such payments to be made, a bond to such fire department in the penal sum of $500, with such sureties as such treasurer, Supervisor or other fiscal officer shall approve, with a condition that he will annually render to such treasurer, Supervisor or other fiscal officer, on the first day of Febru- ary in each year, a just and true account, verified by his oath that the same is true, of all premiums which, during the year ending on the thirty-first day of December preceding such report, shall have been received by him or any other person for him, for any insurance against loss or injury by fire upon property situated in such city or village, which shall have been effected or procured by him to have been effected by any such corporation, association or individuals, and that he will annually, on the first day of February in each year, pay to such treasurer or Supervisor or other fiscal officer $2 upon every $100, and at that rate upon the amount of such pre- miums. Any such corporation, association or individual, having authority to transact business in this State, on filing a bond in the penal sum of $2500 with the Superintendent of Insurance that it will make its account and pay the sum so required to be paid, may effect such insurance in any city, town or village wherein it has no agent." Bond required in New York city, $1000. Penalty for violation, $200 for each offense. FIRE MARSHAL — There is a State Fire Marshal, who investigates fires, etc. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Must be filed by June 15, covering the preceding calendar year (there is no specific requirement in the law covering this point). GENERAL PENALTY— Sec. 53. "Any corporation or person violating any provisions of this chapter, except where such violation constitutes a felony, shall, in addition to any penalty otherwise prescribed for such violation, be guilty of a misdemeanor." See "Reciprocal Law." GUARANTY AND SPECIAL RESERVE FUNDS— Sec. 130. "Any do- mestic fire insurance corporation may create a guaranty surplus fund and a special reserve fund upon the adoption of a resolution by its board of di- rectors at a regular meeting, and upon filing with the superintendent of in- surance a copy thereof, declaring their desire and intention to create such funds and to do business under this and the two following sections. The superintendent shall thereupon make or cause to be made an examination of such corporation, and he shall make a certificate of the result thereof, which shall particularly set forth the amount of surplus funds held by it at the date of the examination, which, under the provisions of this section may be equally divided between and set apart to constitute guaranty surplus and special reserve funds, which certificate shall be recorded in the insurance department. Thereafter all policies and renewals of policies issued by such cor- poration shall have printed thereon by it a notice that they are issued under and in pursuance of this and the two following sections of this NEW YORK. 291 chapter referring to the same by the numbers of sections, and all such policies and renewals shall be subject to the provisions of such sections. After the passage and filing of such resolution, the corporation shall not make, declare or pay in any form any dividend upon its capital stock ex- ceeding seven per cent per annum thereon, and upon the surplus funds to be formed thereunder, until after its guaranty surplus fund and its special reserve fund shall have together accumulated to an amount equal to its capital stock; and until such funds shall together amount to a sum equal to its capital stock, the entire surplus profits of the corporation above such annual dividend of seven per cent shall be equally divided between and be set apart to constitute such guaranty surplus and special reserve funds, which funds shall be held and used as hereinafter provided and not otherwise. Any such corporation which shall declare or pay any dividend contrary to the provisions herein contained, shall be deemed to have forfeited its charter. In estimating the profits of any such corporation for the purpose of making a division thereof between the guaranty surplus fund and the special reserve fund, until such funds shall together amount to a sum equal to its capital stock, there shall be deducted from the gross assets of the corporation, including for this purpose the amount of the special re- serve fund, the sum of the following items : 1. The amount of all outstanding claims. 2. An amount sufficient to meet the liability of the corporation for the unearned premiums upon its unexpired policies, which shall be at least equal to the unearned premiums on policies having one year or less to run, and a pro rata proportion of the premiums received on the policies having more than one year to run, and shall be known as the reinsurance liability. 3. The amount of its guaranty surplus fund and its special reserve fund. 4. The amount of its capital. 5. Interest at the rate of seven per cent per annum upon the amount of its capital and of such funds for whatever time shall have elapsed since the last preceding cash dividend. The balance shall constitute the net surplus of the corporation subject to the equal division between the funds as herein provided. When the corporation shall notify the superintendent of insurance that it has ful- filled the requirements of this section, and that its guaranty surplus fund and its special reserve fund, taken together, equal its capital stock, he shall make an examination of the corporation and make a certificate of the result thereof; and thereafter such corporation may continue, out of any subsequent profits of its business, to add to such funds, either the whole or only a part thereof, but when any addition is made to the special reserve fund, an equal sum shall be carried to the guaranty surplus fund." (Funds, how invested.) Sec. 131. "Such guaranty surplus fund shall 292 FIRE INSURANCE LAWS, TAXES AND FEES. be held and invested by such corporation in the same manner as its capital stock and surplus accumulations, and shall be liable and applicable in the same manner as the capital of the corporation to the payment generally of its losses. Such special reserve fund, until it shall amount to a sum equal to one-half of the capital stock, shall be invested in the same manner as the capital of the corporation, and any additional sum added to such fund shall be invested in any securities in which the corporation is by law authorized to invest its capital or its surplus accumulations, and shall be deposited from time to time, as the same shall accumulate and be invested, with the super- intendent of insurance. Such special reserve fund shall be deemed a fund contributed by the stockholders to protect such corporation and its policyholders other than claimants for losses already existing or then occurred, in case of any extraordinary conflagration or conflagrations as hereinafter mentioned, and shall not be regarded as any part or portion of the assets of the corpora- tion so as to be liable for any claim for loss by fire or otherwise, except as herein provided." (Proceedings in case of extensive conflagrations.) Sec. 132. "When any extensive conflagration or conflagrations shall occur whereby the claims upon the corporation shall exceed the amount of its capital stock and of the guaranty surplus fund hereinbefore provided, the corporation shall notify the superintendent of insurance of the fact, who shall then make or cause to be made, an examination of the corporation, and shall issue his certificate in duplicate of the result, showing the amounts of capital, of guaranty surplus fund, of special reserve fund, of reinsurance liability, and all other assets. One of such certificates shall be given the corporation, and the other shall be recorded in the insurance department. Such special reserve fund shall be immediately held to protect all policyholders of the corporation other than such as are claimants upon it at the time, or such as become claimants in consequence of such conflagration or conflagrations. The amount of such special reserve fund, and an amount equal to the unearned premiums of such corporation, to be ascertained as hereinbefore provided, shall constitute the capital and assets of such corporation for the protection of policy-holders other than such claimants, and for the further conduct of its business. Such certificate of the superintendent shall be binding and conclusive upon all parties interested in the corporation, whether stock-holders, creditors or policyholders. Upon the payment to the claimants for losses or otherwise, existing at the time of or caused by such general conflagration or conflagrations, of an amount to which they are respectively entitled in proportion to their several claims, of the full sum of the capital of the corporation and of its guaranty surplus fund, and of its assets, except only such special reserve fund and an amount of its assets equal to the liability of the corporation for unearned premiums, as so certified by the superintendent, such corporation shall be forever discharged from any and all further liability to such claimants and to each of them. NEW YORK. 293 The superintendent shall, after issuing such certificate, upon the de- mand of the corporation, transfer to it all such securities as shall have been deposited with him by it as such special reserve fund. If the amount of such special reserve fund shall be less than fifty per cent of the full amount of the capital of the corporation, a requisition shall be issued by the superintendent upon the stockholders to make up the capital to that proportion of its full amount, in the manner now provided by law in the case of a corporation with impaired capital. Any capital so impaired shall be so made up to at least the sum of two hundred thousand dollars. If the corporation, after such requisition, shall fail to make up its capital to at least such amount as herein directed such special reserve fund shall be held as security and liable for all losses occurring upon policies of such corporation after such conflagration or conflagrations. If any amount greater than a sum equal to one-half of its capital stock shall by such corporation, under the two provisions of the two preceding sections, have been deposited with such superintendent, he shall retain of such securi- ties a sum equal to one-half of the amount he shall so hold thereof in excess of such one-half of the capital stock, and transfer the balance thereof to the corporation as herein provided. The amount so transferred to the corporation shall, from the time of such transfer, if not less than two hundred thousand dollars, constitute the capital stock of the corpora- tion for the further conduct of its business as hereinbefore provided. The sum so retained by the superintendent shall thenceforth constitute the special reserve fund of the corporation, to which additions may be made as herein provided, and shall be held in the same manner, for the same purposes and under the same conditions as the original special reserve fund of the corporation was held. The corporation shall in its annual statement to the Insurance Department set forth the amount of such special reserve fund and of its guaranty surplus fund. If in consequence of the payment of losses by fires, or of the expenses of the business, or of the interest payable under the provisions of this chapter to stockholders, or from any cause, the guaranty surplus fund shall be reduced in amount below the amount of the special reserve fund, the directors of the cor- poration shall have the right, at their option, at the time of making any division of the net profits as herein provided, to carry a larger sum to the guaranty surplus fund than to the special reserve fund; but this privilege shall cease when the two funds are made equal in amount. The policy registers, insurance maps, books of record and other books in actual use by the corporation in its business, are not to be con- sidered as assets, but shall be held by it for its use in the protection of its policyholders not claimants for losses at the time of such general con- flagration. If after the accumulation of such special reserve fund, it shall appear upon examination by the superintendent that the capital of the corporation has, in the absence of any such extensive conflagration, become impaired, he shall order a call upon the stockholders to make up 294 FIRE INSURANCE LAWS, TAXES AND FEES. such impairment, and the board of directors may either comply with such order and require the necessary payments of the stockholders, or, at their option, they may apply for that purpose so much of such special reserve fund as will make such impairment good. No corporation doing business under this and the two preceding sections shall insure any larger amount upon any single risk than is permitted by law to a corporation possessing the same amount of capital irrespective of the funds hereinbefore pro- vided for." IMPAIRMENT — Every insurance corporation whose assets and credits are not sufScient to reinsure its outstanding risks in a solvent insurance cor- poration, shall be deemed insolvent and may be proceeded against as an in- solvent corporation. Ins. Law, Sec. 41. "Whenever it appears to the Superintendent, from any statement made to him or from any examination made by him or by any examiner appointed by him, that the capital stock of any domestic insurance corporation, except a life insurance corpora- tion, is impaired to the extent of twenty-five per centum thereof or that its assets are insufficient to justify its continuance in business, he shall de- termine the amount of such impairment or deficiency, and issue a written requisition to the corporation to require its stockholders to make good the amount of the impairment or deficiency within such period as he may desig- nate, not less than thirty nor more than ninety days from the service of the requisition. * * * jf (.jje capital stock of any foreign insurance corpo- ration, except a life insurance corporation, doing business in this State is so found impaired, the Superintendent shall revoke the certificate of authority issued to such corporation, and shall cause a notice thereof to be published in the State paper for four weeks, and such corporation, its agent or agents, shall discontinue the issuing of any new policies within this State." Sec. 27. "A foreign insurance corporation incorporated by or existing under the government or laws of any country outside of the United States, and admitted to do business in this State, shall not trans- act any business of insurance in this State, unless it shall have within the the United States, deposited with Insurance Departments or held in trust as hereinafter provided, not less than $500,000, if a fire insurance cor- poration, and not less than $200,000, if a life or casualty insurance cor- poration, invested in like manner as the capital of a similar domestic insurance corporation is required to be invested. The capital of such foreign fire insurance corporation, doing fire insurance business in this State, or of any such company hereafter admitted to such business in this State, shall, for the purpose of this chapter, be the aggregate value of such sums or securities as such corporation shall have on deposit in the insurance department of this State, and of the other States of the United States, for the benefit of policyholders in any of such States or in the United States, and of all bonds and mortgages for money loaned on real estate in this State or in any State of the United States, if such loans shall be made in conformity with the laws of such State providing for the in- NEW YORK. 295 corporation of insurance companies therein and the investment of their capital, and of all other assets and property in the United States, in which lire insurance companies may invest vmder the provisions of Sees. 13 and 16, if such bonds and mortgages, assets and property shall be held in the United States by trustees, approved by the Superintendent of Insur- ance and citizens of the United States, or deposited with a trust company to be approved by him, for the general benefit and security of all its policy- holders in the United States after taking from such aggregate value the same deductions for losses, debts and liabilities in this and the other States of the United States, and for premiums upon risks therein not yet 'expired, as is authorized or required by the laws of this State, or the regulation of its Insurance Department with respect to fire insurance companies organized under the laws of this State." INVESTMENTS PRESCRIBED— Sec. 16. "The cash capital of every domestic insurance corporation required to have a capital, to the extent of the minimum capital required by law, shall be invested and kept invested in the stocks or bonds of the United States or of this State, not estimated above their current market value, or in the bonds of a county or incorpo- rated city in this State authorized to be issued by the legislature, not esti- mated above their par value or their current market value, or in bonds and mortgages on improved unencumbered real property in this State worth fifty per centum more than the amount loaned thereon. The cash capital of every foreign insurance corporation to the extent of the minimum capital required of a like domestic corporation shall be invested and kept invested in the same class of securities specified for domestic insurance corpora- tions, except that like securities of the home State or foreign country shall be recognized as legal investments for the amount of the minimum capital required. The residue of the capital and the surplus money and funds of every domestic insurance corporation over and above its capital, and the deposit that it may be required to make with the Superintendent, may be invested in or loaned on the pledge of any of the securities in which deposits are required to be invested, or in the public • stocks or bonds of any one of the United States, or in bonds and mortgages on im- proved unencumbered real property in the State worth fifty per centum more than the amount loaned thereon, or except as in this chapter otherwise provided, in the stocks, bonds or other evi- dence of indebtedness of any solvent institution incorporated under the laws of the United States or of any State thereof, or in such real estate as it is authorized by this chapter to hold; but no such funds shall be invested in or loaned on its own stock or the stock of any other insurance corporation carrying on the same kind of insurance business. Any domestic insurance corporation may, by the direction and consent of two-thirds of its board of directors, managers or finance com- mittee, invest, by loan or otherwise, any such surplus moneys or funds in the bonds issued by any city, county, town, village or school district of this 296 FIRE INSURANCE LAWS, TAXES AND FEES. State, pursuant to any law of this State. Any corporation organized under subdivision la. Sec. 170 of this chapter, for guaranteeing the validity and legality of bonds issued by any State, or by any city, county, town, village, school district, municipality, or other civil division of any State, may invest by loan or otherwise any of such surplus moneys or funds in the bonds which they are authorized to guarantee. Every such domestic corporation doing business in other States of the United States or in foreign countries may invest the funds required to meet its obligation incurred in such other States or foreign countries, and in conformity to the laws thereof, in the same kind of securities in such other States or foreign countries that such corporation is by law allowed to invest in in this State. * * * But nothing in this section shall be held to authorize one insurance corporation to obtain, by purchase or otherwise, the control of any other insurance corporation." Sec. 18. "* * * All bonds or other evidences of debt held by any life insurance corporation authorized to do business in this State shall, if amply secured and if not in default as to principal or interest, be valued as follows: If purchased at par, at the par value; if purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield meantime the effective rate of interest at which the purchase was made; provided that the pur- chase price shall in no case be taken at a higher figure than the actual market value at the time of purchase, and provided further that the Super- intendent of Insurance shall have full discretion in determining the method of calculating values according to the foregoing rule, and the values found by him in accordance with such method shall be final and binding; pro- vided, also, that any such corporation may return such bonds or other evidences of debt at their market value or their book value, but in no event at an aggregate value exceeding the aggregate of the values calculated according to the foregoing rule. The Superintendent of Insurance may, at any time, in his discretion, require any insurance corporation, other than a life insurance corporation, authorized to do business in this State to value its bonds or other evidences of debt in accordance with the foregoing rule. Companies are authorized to hold real estate requisite for its convenient ac- commodation and transaction of its business, and to take over real estate under foreclosure of mortgages or in settlement of debts; but the latter must be sold within five years after the acquirement of title." LICENSED BROKERS— Ins. Law, Sec. 137. "The Superintendent of Insur- ance, in consideration of the yearly payment of $200, except in counties having less than 100,000 inhabitants, in which case the fee shall not exceed $25, may issue to citizens, firms or corporations having places of business in this State, not exceeding 200 in number, a license, revocable at any time, permitting the party named in such license to act as agent to procure poli- cies of fire insurance from corporations, persons, partnerships and associa- tions which are not otherwise authorized to do business in this State." Affidavits that sufficient insurance can not be obtained in authorized com- NEW YORK. 297 panics must be executed by both insured and licensed agent, and such affidavits must be filed within thirty days with Superintendent of Insur- ance and Clerk of county in which insured property is located. Such agent shall file bond of $2000, conditioned that he will pay to the Volun- teer Firemen's Association, or where there is a fire patrol or salvage corps to its treasurer, a sum equal to three per cent of net premiums on policies procured under this license, in July and January of each year. Sec. 138. "The Superintendent of Insurance in his discretion may issue to any per- son, partnership, association or corporation complying with the require- ments of this section, a certificate permitting the holder thereof to issue policies of fire insurance within this State, upon applications made to it or them, under the conditions as set forth in Sec. 137 by agents licensed thereunder, but not otherwise. Such certificates shall be granted only upon the filing with the Superintendent of Insurance of an application therefor signed and acknowledged by the persons, partnership or the proper attor- neys or officers of the associations or corporations desiring same and such applications shall contain the name and address in each instance of the agent or agents through whom the applicant proposes to conduct the busi- ness herein permitted. Such certificate when granted shall specify that the insurer or insurers named therein may issue in this State policies of fire insurance through the agent or agents named in such certificates, upon the application of agents licensed under Sec. 137, but not otherwise. The sum of twenty-five dollars shall be paid to the Superintendent of Insurance for each certificate so issued and such certificate shall remain in force for the perod of one }'ear from the date thereof unless sooner revoked by the said Superintendent, provided, however, that whenever the holder of any such certificate desires to substitute the name of any new agent in place of the agent named in the certificate, the Superintendent may, if he approves of the change, issue a new certificate for the unexpired term of the original certificate in which shall appear the name of such agent so substituted. Any certificate granted under this section shall be revoked upon proof to the satisfaction of the said Superintendent that the holder thereof either directly or through any agent or attorney in fact has violated any pro- vision of this chapter, or is in such condition that the further transaction of business by it or them would be hazardous to the people of the State. Every policy issued in this State by any person, partnership, association or corporation to whom a certificate under this section shall be granted (a) shall be countersigned by the agent named in the certificate; and (b) shall contain the provisions of the standard policy provided for by Sec. 121 of this chapter, or an agreement that the policy so issued shall be subject to such provision and that any condition thereof inconsistent with or con- trary to the provisions of the standard policy shall be null and void; and (c) shall contain a further provision that service or a summons or other lee-al process relative to any claim under such policy may be made ori the agent issuing or countersigning the same and that such service shall be 298 FIRE INSURANCE LAWS, TAXES AND FEES. equivalent to the personal service within this State of such process on the persons, associations or corporations obligated thereupon; and (d) shall have printed in red ink upon the outside cover thereof, under the name of the corporation or association issuing the same, in plain type, the words : Surplus line insurance only; this company (person, partnership or asso- ciation, as the case may be) is not under the supervision of the New York State Insurance Department ; issued by agent, address The books and records of every agent within this State for such corporations, persons, partnerships and associations shall be open at all times to the inspection of the Superintendent of Insurance, and must show, first the exact amount of insurance written ; second, the gross premiums charged thereon; third, the date of the policy; fourth, the term thereof ; fifth, the location of the property ; and sixth, the names of those licensed agents upon whose applications the insurance was issued. Nothing herein contained shall be held to prevent any agent licensed under the pro- visions of Sec. 137 from acting as the agent of any corporation, person, partnership or association to whom a certificate has been granted under this section." This act went into effect June 13, 191 1. LIMIT ON A SINGLE RISK — Sec. 24. "No domestic insurance corporation, nor any insurance corporation organized under the laws of any country out- side of the United States, doing business in this State, shall expose itself to any loss on any one risk or hazard to an amount exceeding ten per centum of its capital and surplus. No insurance corporation incorporated under the laws of any other State of the United States, doing business in this State, shall expose itself to any loss on any one risk or hazard within this State to an amount exceeding ten per centum of its capital and surplus. No por- tion of any such risk or hazard which shall have been reinsured in a cor- poration authorized to do insurance business in this State shall be included in determining the limitation of risk prescribed in this section. This section shall not apply to life insurance corporations, nor to marine insurance cor- porations authorized to do business in this State." See Sec. 149, under "Mutual Companies." Limit for assessment co-operative company, $7000 on one risk ; for advance premium co-operative, $5000. LLOYDS — Ins. Law, Sec. 9. "No corporation, nor any individual, as principal, shall transact the business of insiurance within this State without the certifi- cate of the Superintendent of Insurance, certifying under his hand and official seal that such corporation or individual has complied with all the requirements of law to be observed by such corporation or individual and that such corporation or individual is authorized to transact the business of insurance specified therein in this State. Such certificate shall be recorded in the office of the Superintendent in a book to be kept by him for that pur- pose. No corporation or individual shall transact in this State any insur- ance business not specified in the certificate of authority granted by the Superintendent. The Superintendent may refuse to issue any such certifi- NEW YORK. 299 cate to a domestic or foreign corporation, if, in his judgment, such refusal will best promote the interests of the people of the State. Nothing in this section contained shall apply to any insurance company organized prior to the first day of October, eighteen-hundred and ninety-two, under any gen- eral or special law of this State and carrying on business on said date, but every such corporation is hereby recognized as an existing corpora- tion and is hereby authorized to continue as such corporation and to continue such business until the legislature shall otherwise provide, subject to such of the provisions of this chapter as are made applicable to such cor- porations." Ins. Law, Sec. 54. "No person, partnership, or association of persons shall engage in the business of insurance in this State except as agent of a person or corporation authorized to do the business of insur- ance in the State, unless possessed of the capital required of an insurance corporation doing the same kind of business in the State and invested in the same manner ; nor unless he or they shall have made and deposited with the Superintendent of Insurance securities of the same amount required of an insurance corporation doing business in this State, nor unless the Super- intendent of Insurance shall have granted to him or them a certificate to the effect that he or they have complied with all the provisions of law which an insurance corporation doing business in this State is required to observe, and that the business of insurance specified therein may be safely intrusted to the person, partnership or association of persons to whom the certificate is granted. Every person, partnership or association receiving any such cer- tificate of authority shall be subject to the insurance laws of the State and to the jurisdiction and supervision of the Superintendent of Insurance in the same manner as if an insurance corporation authorized by the laws of the State to engage in the business of insurance specified in the certificate. No such person, partnership or association shall transact business under a corporate or fictitious name or under any name, style or title other than the true name of such person, or of the persons comprising such partner- ship or association." Sec. 300. "Notwithstanding the provisions of Sec. 54 of this chapter, persons, partnerships or associations which, on October I, 1892, were lawfully and actually engaged in the business of insurance as Lloyds or inter-insurers or individual underwriters, may, after January I, 191 1, continue to do the business of insurance in this State, provided that such persons, partnerships and associations shall comply with the pro- visions of this article, but not otherwise ; and such persons, partnerships and associations as may comply with and be licensed according to Sees. 304 and 305 of this article, may do such insurance business as is therein per- mitted. Any persons, partnerships, or associations which, after January i, 191 1, shall in this State engage in the business of insurance as Lloyds or inter-insurers, or represent or advertise that they are so engaged, without having been authorized so to do in accordance with the provisions of this article, and any agent, sub-agent, or representative of any such persons, partnerships, or associations not so authorized to do such business in this 300 FIRE INSURANCE LAWS, TAXES AND FEES. State, who shall after January i, 191 1, in any way represent any such unau- thorized persons, partnerships or associations, directly or indirectly, in en- gaging or attempting to engage in the business of insurance in this State, shall be guilty of a misdemeanor." Sec. 301. "Not later than August i, 1910, any persons, partnerships or associations claiming that they were lawfully and actually doing the business of insurance in this State as Lloyds or inter-insurers on October i, 1892, shall file with the Superintendent of Insurance on blanks furnished by him for that purpose, (a) an application for a certificate authorizing the continuance of such business after January I, 191 1, which application shall specify the kinds of insurance intended to be written after the last mentioned day; (b) a verified statement of the condition of such Lloyds or inter-insurers as of the first day of July, nine- teen hundred and ten; (c) an agreement, executed and duly acknowledged by each and every individual underwriter or inter-insurer or his attorney in fact duly authorized thereto, providing in substance that personal service of a summons or other legal process in an action against any such Lloyds or inter-insurers, if made upon a person specified in such agreement and resident in the State of New York, shall be equivalent to the personal ser- vice within this State of such summons or other process on each and every of such individual underwriters or inter-insurers ; and (d) such other mat- ters as the Superintendent of Insurance may prescribe. Thereafter, and not later than December i, 1910, the financial condition of and the methods of doing business by the persons, partnerships and associations so applying, shall be examined as provided in Sec. 39 of this chapter. Thereafter, the Superintendent of Insurance shall grant to such persons, partnerships and associations as shall have complied with the provisions of this article a certificate of authority to conduct the business of insurance in this State on and after January i, 191 1, which certificate shall be revocable or subject to suspension, if any of such persons, partnerships or associations fail to comply with any or all of the requirements of this chapter applicable there- to, or upon the happening of any event which on January i, 1911, would prohibit such persons, partnerships or associations from transacting busi- ness in this State as set forth in Sec. 302. Such certificate shall indicate the kinds of insurance which may be written by such persons, partnerships or associations, provided that the same are not other than those now or which may hereafter be specified in Sees, no and 150 of this chapter." Sec. 302. "No such persons, partnerships or associations, who claim that they were lawfully and actually doing the business of insurance in this State as Lloyds or inter-insurers on October i, 1892, shall, after January i, 191 1, engage in the business of insurance in this State as Lloyds or inter-insurers, (a) unless there shall be on file in the office of the Superintendent of Insurance a copy of the original articles of association, copartnership agreement or inter-insurance contract, together with all amendments thereto, accompanied by an affidavit, verified by an attorney in fact, to the effect that it is a true copy, and stating where the principal NEW YORK. 301 office of such persons, partnerships or associations so doing such business is located, the kinds of insurance in which it is engaged, or in which it lawfully claims the right to engage, the name, under which business is done and the names and postoffice addresses of all the underwriters, inter- insurers and attorneys in fact so doing business as Lloyds or inter-insurers, which affidavit shall be so verified not earlier than December 15, 1910; or (b) which shall change the name under which business is done, without first obtaining the written approval of the Superintendent of Insurance ; or (c) which shall establish branches under other or different names or titles; or (d) which shall have a name so similar to that of any other Lloyds or insurance corporation as in the opinion of the Superintendent of Insurance is calculated to deceive, and any existing Lloyds having such a name may be required to change same by the Superintendent of Insurance; or (e) which does not maintain at all times, in addition to all outstanding claims and other liabilities, a sum equal to the total unearned premiums on the policies in force, calculated on the gross sum without any deduction on any account, charged to the policyholder on each respective risk from the date of the policy; or (f) which shall not have its assets invested as prescribed by Sec. 16 of this chapter; or (g) unless each O'f the underwriters shall be worth in his own right not less than $20,000 above all liabilities ; such fact to be determined by the Superintendent of Insurance, and in determin- ing same he may take the signed reports of commercial agencies having upwards of 100,000 subscribers. No such persons, partnerships or associa- tions shall change the location of their principal office for the transaction of business without first filing with the Superintendent of Insurance the affidavit of an attorney in fact stating where such office is to be located, and in no event shall such office be located outside the State of New York. Every change in the underwriters, inter-insurers or attorneys in fact, made after the filing of the affidavit previously mentioned in this article, shall be reported to the Superintendent of Insurance by a written verified state- ment of an attorney in fact within twenty days after the same has been made, which affidavit shall be accompanied by an agreement, executed and duly acknowledged, and binding the new underwriter or underwriters, inter-insurer or inter-insurers to the original agreement between all the underwriters or inter-insurers required to be filed by Sec. 301 of this chapter, with regard to the service of process. The underwriters' liability shall not be included in the statements or reports of such persons, partner- ships or associations either as an asset or a liability and any deposit made by an underwriter with any such persons, partnerships or associations, if treated as an asset in any statement or report, shall also be charged as a liability." Sec. 303. "After January i, 1911, Sees. 6, 7, 9, 16, 20, 21, 22, 36, 39, 40, 44, 45, 46, 47, 48, 49, 53, 63 and 118 of this chapter are hereby, to the extent that they are now or hereafter may become applicable to corporations authorized to engage in the business of insurance in this State and specified in Sees, no and 150 of this chapter, made specifically appli- 302 FIRE INSURANCE LAWS. TAXES AND FEES. cable to any persons, partnerships or associations to which this article is applicable, provided that, where any of such sections imposes a duty on or prohibits an act by or in any way refers to the officers or directors of any such corporation ; such sections, when read in connection with this article, shall be deemed to mean respectively the duly authorized attorney in fact or attorneys in fact or the executive, underwriting or managing committee, of such persons, partnerships or associations, and provided, further, that where any of such sections refers to a corporation, the same, when read in connection with this article, shall be deemed to mean the persons, partner- ships or associations to which this article is applicable." Sec. 304 provides that on and after July i, 191 1, twenty-five or more persons, partnerships, associations or corporations may engage in fire or marine insurance as Lloyds or inter-insurers upon receiving a certificate of authority from the Superintendent of Insurance. The application for such certificate of authority shall be signed by the attorney-in-fact of the under- writers, and must set forth the name of the association, its location, the kinds of insurance to be written, a copy of the articles of the association or inter-insurance contract ; names and addresses of all underwriters or inter- insurers ; the appointment of one or more attorneys-in-fact upon whom legal process can be served, and who shall be residents of the State, and that a fund of at least $200,000 has been contributed by the subscribers as a guarantee fund for the policyholders and is in possession of the attorney or attorneys-in-fact, either in cash or invested in securities, as specified in Sec. 16. Such an association must at all times have sufficient funds above $200,000 to meet all its liabilities, including unearned premiums on policies in force ; must not change its name nor establish branches ; must have its assets either in cash or invested as prescribed by Sec. 16, and shall in gen- eral keep the Insurance Department advised of any changes in its location or organization. Service of process on the attorney or attorneys-in-fact shall be equivalent to personal service of such process on each underwriter in the State. Funds of such association shall not be subject to the claims of general creditors of any of the underwriters, other than policyholder creditors, until all policies under which any such underwriter is obligated have been terminated, and in that event the claims of such general creditors shall not be paid from such a fund or be a lien upon any part thereof be- yond an amount which, when paid, will leave intact and in the possession of such association an amount equal to the full unearned premiums on all policies in force, and in addition the sum of $200,000. Sec. 305 provides that on and after July i, 191 1, the Superintendent of Insurance may, in his discretion, issue certificates of authority to Lloyds or inter-insurance associations domiciled in other States to transact the kinds of insurance specified in Sees, no and 150. In general, the informa- tion required of an applicant for a license is similar to that which must be filed by a new domestic association under Sec. 304. In addition, a certifi- cate is required from the Insurance Department of its home State that it NEW YORK. 303 has and maintains at all times an amount equal to all outstanding claims and other liabilities plus the unearned premiums on all policies in force calculated on the gross amounts charged policyholders, and in addition the sum of $200,000 ; an agreement that such association will not transact any business in New York which a domestic association cannot do, and the appointment of the Superintendent of Insurance as attorney for such asso- ciation and its underwriters for New York State, upon whom legal process may be served. MISCELLANEOUS — ^Any person holding a policy of other than a domestic company must show such policy to the treasurer of the fire department on request, or he is liable to a fine of $100. Fire insurance companies are per- mitted to insure against damage by earthquake and sprinkler leakage. Marine companies may accept risks of transportation from point of ship- ment to destination. Foreign fire company may establish an ocean marine department by making an additional deposit. Marine companies may cover the same risks in connection with automobile insurance as may be covered by fire insurance companies, as set forth in Sec. no. See "Domestic Companies." MUTUAL COMPANIES — Sec. in: "No domestic mutual fire insurance corporation shall commence business, if located in the city of New York, as said city existed on the first day of October, eighteen hundred and ninety-two, or in the county of Kings, nor establish any agency for the transaction of business in either New York or Kings County, until agree- ments have been entered into for insurance with four hundred applicants, citizens of this State and freeholders, each owning real estate within this State of the value of at least five thousand dollars, the premiums on which insurance shall amount to two hundred thousand dollars, of which forty thousand dollars shall have been paid in cash, and notes, of solvent parties, founded on actual and bona fide applications for insurance, shall have been received for the remainder. No such corporation in any other county of the State shall commence business until agreements have been entered into for insurance with at least two hundred applicants, citizens of this State and freeholders, each owning real estate within this State to the value of at least two thousand five hundred dollars, the premiums on which insurance shall amount to one hundred thousand dollars, of which twenty thousand dollars shall have been paid in cash and notes of solvent parties, founded on actual and bona fide applications for insurance, shall have been received for the remainder. No one of such notes shall amount to more than five hundred dollars, no two shall be given for the same risk, or be made by the same person or firm, except where the whole amount of such notes shall not exceed five hundred dollars. No such note shall be represented as capital stock unless a policy be issued upon the same within thirty days after the organization of the corporation upon a risk located within this State, and such policy shall be for no shorter period than one vear. Such notes shall be called capital stock notes and shall be payable, 304 FIRE INSURANCE LAWS, TAXES AND FEES. in part or in whole, at any time when the directors shall deem the same requisite for the payment of losses and such incidental expenses as may be necessary for transacting the business of the corporation. The solvency of each of the makers of such notes shall be examined into by the Superin- tendent of Insurance, or by one or more competent and disinterested persons specially appointed by him for that purpose. No note shall be re- ceived as a capital stock note unless the maker thereof shall be approved by the Superintendent of Insurance, or by the person or persons appointed by him for that purpose, as being pecuniarily good and responsible for the same, and is also owner of real estate as required by this section, nor until such note has been finally approved by the Superintendent of Insurance. No such note shall be valid as a capital stock note, unless the corporators or officers of such corporation shall certify under oath that it is the bona fide property of the corporation. No domestic mutual fire insurance cor- poration transacting business with capital stock notes or deposit notes shall underwrite any property not located within this State, or reinsure policies written upon such property by other insurance corporations." A declaration and copy of charter and proof of publication of notice of in- tention to form a corporation must be filed with the Superintendent of Insurance, and then subscription books may be opened. Article IX of insurance law provides for the organization and opera- tion of co-operative and town insurance companies, which are mutual in character and which now are required to report to the State Insurance Department. Sec. 149. "Every mutual fire insurance company or association in- corporated under the laws of any other State of the United States may be permitted to do business in this State by the Superintendent of Insurance on filing with him the following: (o) A certified copy of its articles of incorporation or association and of its by-laws. (&) A consent, duly executed, appointing the Superintendent of Insurance to be the true and lawful attorney for such company or association in and for this State, upon whom all legal process in any action or proceeding against the com- pany or association may be served with the same effect as if it was a do- mestic company or association. Service upon such attorney shall thereafter be deemed service upon the company or association, (c) An agreement that it will pay the taxes provided for in section one hundred and forty-nine a of this chapter, and that it will furnish any further information as to its financial condition as the Superintendent of Insurance shall require, (d) And each such company shall pay to the Superintendent of Insurance the fees required by Sec. 6 of this chapter. Provided that no such certificate of authority shall be granted unless such company shall (a) have at least $5,000,000 of insurance in force in not less than 200 separate risks, and (&) shall have transacted a fire insurance business in its home State for at least ten years ; and (c) shall have had insurance in force in at least the amount of five million dollars in each of the five years immediately preceding its NEW YORK. 305 application for admission to do business in this State; and (d) shall have and maintain a reserve fimd equal to the total unearned premiums on the policies in force calculated on the gross sum without any deduction on any account charged to policyholders on each respective risk from the date of the issue of the policy; and (e) in addition to maintaining such unearned premium reserve fund, shall either keep on deposit for the benefit of all its policyholders with the Superintendent of Insurance of this State or with the Auditor, Comptroller or general fiscal officer of the State under the laws of which it is incorporated, the sum of two hundred thousand dollars, or shall have a surplus or other net assets of at least fifty thousand dollars, and in addition contingent assets of at least fifty thousand dollars in the form of the obligations of policyholders to pay such amount when law- fully assessed therefor; and (/) shall have net and contingent assets which, together with the unearned premium fund, shall equal one per centum of the total insurance in force; and (g) in the event that such company does not keep on deposit the sum of two hundred thousand dollars as in "e" aforesaid it shall provide in all policies issued by it that the policyholder is liable, in addition to the original premium paid, to assessment in an amount at least equal to one year's premiums ; provided, further, that no such com- pany shall be exposed to loss to an amount exceeding ten per centum of its actual net and contingent assets upon property not protected by auto- matic sprinklers situated within the boundaries of one city block or on one group of buildings composed of attached or adjacent buildings which have less than sixty feet of clear space at all points between such buildings and other buildings ; provided, further, that the certificate of authority granted by the Superintendent of Insurance pursuant to the provisions of this act to such insurance corporation to do business in this State shall not remain in force for a longer period than one year, and that whenever the condition of any such corporation to which a certificate of authority has been granted is such that it cannot meet all the requirements of this section the Superm- tendent of Insurance shall forthwith revoke such certificate. The deposit or the surplus of any such company so authorized to do business in this State, to the extent of the minimum amount thereof required by this sec- tion, shall be invested and kept invested in securities of the kind and charac- ter in which domestic or foreign companies are required to invest as mini- mum capital investments by section sixteen of this chapter, except that bonds and mortgages on real estate shall not be accepted as deposit securi- ties to be held by the Superintendent of Insurance of this State. Any such company so admitted to do business may in addition to insuring property against loss or damage by fire also insure any goods or premises against loss or damage by water caused by the breakage or leakage of sprinklers, pumps, water pipes, or plumbing and its fixtures, and against accidental injury from other cause than fire or lightning to such sprinklers, pumps, water pipes, plumbing and fixtures. PRELIMINARY DOCUMENTS— Company must file with the buperm- 306 FIRE INSURANCE LAWS, TAXES AND FEES. tendent of Insurance a certified copy of its charter, a verified statement showing the financial condition of the company as near as may be to date of appHcation. Company must obtain from the Superintendent a certificate authority to do business. Foreign companies must file certified copy of charter or deed of settlement, written appointment of Superintendent of In- surance as attorney, a certified copy of its statement, and an agreement not to transact, while authorized to operate in the State, any business which a similar domestic company is forbidden to transact. No agent shall transact business in the State for any foreign company without a certificate of authority from the Insurance Department, and until he has filed a copy of the Superintendent's certificate of authority in the office of the clerk of the county in which he resides, when representing a company operating for the first year in this State. See "Publication." See "Mutual Companies." PUBLICATION — Ins. Law, Sec. 31. "No agent of any foreign insurance cor- poration for the first year it is admitted to transact business in this State, shall transact any business of insurance in this State until he has filed in the office of the clerk of the county where he resides, a certified copy of the Superintendent's certificate of authority to do business, and until there has been published in a paper at Albany, in which notices by officers are author- ized by law to be published for four successive weeks after such filing, a copy of such certificate and of the statement required by this chapter to be filed in the office of the Superintendent and proof of such publication shall be filed in the office of the Superintendent within thirty days thereafter, by an affidavit of the publisher of the newspaper, his foreman or clerk." RATE-MAKING ASSOCIATIONS— Every rate-making association or bureau is subject to supervision by the Superintendent of Insurance, and shall be examined at least once each year. Discrimination between risks of essentially the same hazard is forbidden. Schedules of rates and other in- formation must be filed with Superintendent whenever required. "No such association or bureau, nor any two or more persons, associations or corpora- tions authorized to insure property against loss by fire within this State, acting in agreement, shall refuse to do business with, or pay commissions to any person who may be licensed by the Superintendent of Insurance as a fire insurance broker, upon the ground or for the reason that such broker will not agree to secure insurance only at the rates of premium fixed by such association or bureau." 'RECIPROCAL LAW— Ins. Law, Sec. 33. "If, by the existing or future laws of any State, an insurance corporation of this State having agencies in such other State, or the agents thereof, shall be required to make any deposit of securities in such other State for the protection of policyholders or otherwise, or to make payment for taxes, fines, penalties, certificates of authority, license fees or otherwise, greater than the amount required by this chapter from similar corpora- tions of such other State by the then existing laws of this State, then and NEW YORK. 307 in every such case, all insurance corporations of such State, established, or heretofore having established an agency in this State, shall be, and they are hereby, required to make the like deposit for the like purposes in the Insurance Department of this State, and to pay the Superintendent of Insurance for taxes, fines, penalties, certificates of authority, license fees and otherwise, an amount equal to the amount of such charges and pay- ments imposed by the laws of such other State upon the insurance cor- porations of this State and the agents thereof. * * *." REINSURANCE — Insurance Law, Sec. 22. "Every insurance corpora- tion doing business in this State may reinsure the whole or any part of any policy obligation in any other insurance corporation ; provided that if any domestic insurance corporation, other than a life insurance corporation, shall reinsure or determine to reinsure substantially all its risks, such rein- surance shall be submitted in advance to and have the approval of the Superintendent of Insurance. * * * . ^vhen a reinsurance agreement is made between other than life insurance corporations the parties to such agreement shall, upon the policies involved, compute their unearned premium fund as follows : The reinsuring or ceding corporation shall, upon the portion of its liability not reinsured, maintain a reserve to be computed in accordance with section 118 of the insurance law ; the corpora- tion assuming liability by reinsurance from the corporation issuing the original policy shall maintain a reserve equal to that which the reinsuring corporation would have been required to maintain upon the amount rein- sured had it retained the liability ceded by it. No credit of any kind shall be allowed or given either as a reduction of taxes or of liabilities, to any corporation transacting business in this State, for reinsurance made in corporations not authorized to issue policies in this State. The Superin- tendent of Insurance shall require schedules of reinsurance to be filed by each corporation at the time of making its annual report to the Depart- ment." (The amendment which changed the law to read as above given, went into effect July i, 1910.) REINSURANCE RESERVE— The unearned premium fund must be main- tained at fifty per cent of all premiums on unexpired fire risks having a year or less to run ; pro rata for all premiums on unexpired fire risks having more than one year to run ; the entire premium on unexpired marine (voyage) risks, and 50 per cent of all premiums on unexpired time marine risks. RESIDENT AGENTS— No provision. SEMI-ANNUAL STATEMENTS— In 1908, the Insurance Department began requiring brief quarterly statements. STANDARD POLICY— The New York standard policy form is required to be used. Violations of this statute are punishable by a fine of $25 to $100 for the first offense, and $100 to $250 for each subsequent offense. Sec. 121. "* * * After the first day of January, 191 1, such policy or contract may be printed, written or typewritten with any size of type on any size or shape of paper which shall have the 308 FIRE INSURANCE LAWS, TAXES AND FEES. written approval of the Superintendent of Insurance." Sec. 121. "* * * Two or more fire insurance corporations authorized to transact business in this State may issue a combination standard form of policy, using a distinctive title therefor, which title shall appear at the head of such policy, followed by the titles of the several corporations obli- gated thereupon, and which policy shall be executed by the officers of each of such corporations; provided, that before such corporation shall issue such combinajtion policy, they shall have received the express permission of the Superintendent of Insurance to issue the same, and the title of such proposed policy and the terms of the additional provisions thereof, hereby authorized, shall have been approved by him, which terms, in addition to the provisions of the standard policy and not inconsistent therewith, shall provide substantially under a separate title therein, to be known as 'Provisions Specially Applicable to this Combination Policy,' as follows: (A) That each corporation executing such policy shall be liable for the full amount of any loss or damage, according to the terms of the policy, or a specific percentage thereof; (B) That service of process, or of any notices required by the said policy upon any of the corporations exe- cuting the same, shall be deemed to be service upon all; and provided, further, that the unearned premium liability on each policy so issued shall be maintained by each of such corporations on the basis of the liability of each to the insured thereunder." TAXES — Foreign companies of other countries must pay to the Treasurer of the State, annually, on or before June i, as a franchise tax, a sum equal to one-half of one per cent on the gross premiums received for business done in the State during the preceding calendar year; domestic companies and Lloyds pay one per cent of premiums. The term "gross premiums" is meant to include, in addition to all other premiums, such premiums as are collected from policies subsequently canceled and from reinsurance. (Tax Law.) Sec. 187. "An annual State tax for the privilege of exercising corporate franchises or for carrying on business in their corporate or organized capacity within this State equal to one per centum on the gross amount of premiums received during the preceding calendar year for busi- ness done at any time in this State, which gross amount of premiums shall include all premiums received during such preceding calendar year on all policies, certificates, renewals, policies subsequently canceled, insurance and reinsurance during such preceding calendar year, and all premiums that are received during such preceding calendar year on all policies, certificates, renewals, policies subsequently canceled, insurance and rein- surance executed, issued or delivered in all years prior to such preceding calendar year, whether such premiums were in the form of money, notes, credits, or any other substitutej|^r money, shall be paid annually into the treasury of the State on or before the first day of June by the follow- ing corporations : I. Every domestic insurance corporation, incorporated, organized or formed under, by or pursuant to a general or special law ; NEW YORK. 309 2. Every insurance corporation, incorporated, organized or formed under, by or pursuant to the laws of any other State of the United States and doing business in this State, except a corporation doing a fire in- surance business or a marine insurance business ; 3. Every insurance corporation, incorporated, organized or formed under, by or pursuant to the laws of any State without the United States, or of any foreign country, except such a corporation doing a life, health or casualty insurance business, and doing business in this State ; but the tax on gross premiums of a corporation so incorporated, organized or formed and doing a fire or marine insurance business within the State shall be equal to five-tenths of one per centum. This section does not apply to a fraternal beneficiary society, order or association, a corporation for the insurance of domestic animals, a town or county cooperative insurance cor- poration, nor to any corporation subject to the supervision of or required by or in pursuance of law to report to the superintendent of banks ; but this section does apply to an individual, or partnership, or association of underwriters known as Lloyds in so far as corporations doing the same kind of insurance business are subject to its provisions. The taxes im- posed by this section shall be in addition to all other fees, licenses or taxes imposed by this or any other law, except that in assessing taxes under the reciprocal provisions of section thirty-four of the insurance law, credit shall be allowed for any taxes paid under this section. The term "insurance corporations" as used in this article, shall include a corpora- tion, association, joint-stock company or association, person, society, aggre- gation or partnership by whatever name known doing an insurance busi- ness in this State." Sec. 190. "Every corporation, company or associa- tion required by Sec. 187 * * * to pay to the State an annual tax equal to a percentage of its gross premiums * * * for the privilege of exercising its corporate franchise or carrying on its business in such corporate or or- ganized capacity, which shall own any of the bonds of the State of New York, shall have credited to it annually to apply upon or in lieu of the payment of such tax an amount equal to one per centum of the par value of all such bonds of the State, bearing interest at a rate not exceeding three per centum per annum, owned by such corporation, company or association and registered in its name, or registered in the name of a public department, a public officer or officers of this State, or of any other State, or of the United States, in trust for such corporation, company or associa- tion, on the thirtieth day of June prior to the date when such tax shall become due and payable; provided, however, that there shall m no case be credited to any such corporation, company or association an amount m excess of the amount due to the State from such corporation, company or association for taxes payable to the State under this chapter for the fiscal year for which such credit is given; and further provided that any such credit so allowed under this section shall not bear interest." In assess- ing taxes under reciprocal law, taxes as above will be credited. Com- 310 FIRE INSURANCE LAWS, TAXES AND FEES. panics must, on or before March i, make a return to the Comptroller of the State, showing the total amount of premiums received during the year end- ing December 31, preceding, on business done in the State. Real estate to be taxed where situated for State, city, town, county, village school and other local purposes. Taxes levied upon companies of other States are governed by reciprocal law. In collecting taxes under retaliatory pro- visions, from fire insurance corporations, the New York Insurance De- partment allows credit for the amount paid under Sec. 133. See "Fire Department Tax." Companies, associations and individuals not incor- porated in New York to insure marine risks, are taxed two per cent on marine premiums, under Sec. 34. Foreign marine companies are not allowed to deduct taxes paid under Sec. 187 of the tax law of New York, when paying tax due under Sec. 34. Credit is allowed for reinsurances in authorized companies, but no credit or deduction shall be allowed on account of such reinsurances where any part of the risk insured against is reinsured in a corporation authorized to effect insurances against fire or in the fire insurance branch of a corporation authorized to effect insur- ances against both marine and fire risks. Sec. 149-a. "Every mutual fire insurance company or association authorized to do business in this State pursuant to Sec. 149 of this chapter shall, in lieu of all other taxes on pre- miums, annually, on or before the first day of February of each year, pay a tax of one per centum on all gross premiums or assessments collected or received by it or them for such insurance upon property situate within this State during the preceding year ending the thirty-first day of December to the Superintendent of Insurance, except that any company so authorized to do business in this State which is incorporated under the laws of any other State, which taxes such company therein upon the gross premiums or assessments collected by it less that portion of said gross premiums or assessments returned on policies expired or canceled, shall not be required to pay under this section any different or higher rate, provided, however, that in no event shall such tax be less than three per centum of the net cost of insurance to the policyholder." TAX STATEMENTS— Must be filed with Comptroller by March i, annually See "Fire Department Tax." Mutual companies of other States, by February i, under penalty of $100 per day. VALUED POLICY— No provision. COUNTY TAXES AND FEES. None, except real estate taxes. MUNICIPAL TAXES AND FEES. None, except fire department taxes and those on real estate. ALBANY — Protective department, two per cent of premiums. BROOKLYN — Fire insurance patrol, one and one-half per cent of premiums. NEW YORK — Fire patrol, 1910, one and nine-tenths per cent of premiums. NORTH CAROLINA. STATE REQUIREMENTS. AGENTS DEFINED— Any citizen of the State who soHcits, aids or fills out any open policy, certificate or blank by which an unlicensed company effects insurance in the State is held to be an agent of the company and liable for taxes. AGENTS' LICENSES — Sec. 4706. "Every agent of any insurance company authorized to do business in this State shall be required to obtain annually from the Insurance Commissioner a certificate under the seal of his office, showing that the company for which he is agent is licensed to do business in this State, and that he is an agent of said company and duly authorized to do business for it, * * * and the said agent shall pay to the Insur- ance Commissioner the sum of $1 for the said certificate. There shall be no charge for the seal affixed to such certificate." Licenses expire April i. Penalty for neglecting to exhibit certificate, fine of $10 or imprisonment for ten days for each offense. Person acting as agent without a license is guilty of a misdemeanor, and may be fined $100 to $500 for each offense. License required for each member of firm, and for each officer or repre- sentative of an agency corporation. Applications for licenses must be made by company or by general agent in the State, or by any agent whose authority to do so is on file in the Insurance Department. ANNUAL STATEMENTS— Required to be filed annually on or before March i, showing condition as of December 31 preceding. Penalty for rendering untrue statement, revocation of license and $500 to $1000 fine. Person refusing to exhibit books, papers 01 accounts is guilty of a mis- demeanor. Penalty for failure to file staten'!"ni, $100 for each day's neg- lect; and license may be suspended during default. ANTI-COINSURANCE — No restriction as to use of coinsurance clauses. ANTI-COMPACT — No law forbidding combinations. ANTI-DISCRIMINATION— No provision. ATTORNEY — The Insurance Commissionei must be appointed attorney to accept service of legal process. CANCELLATION OF POLICY— "This policy shall be canceled at any time at the request of the insured, or by the company, by giving five days' notice of such cancellation." — Extract from Standard Policy. CAPITAL REQUIRED — Domestic fire insurance companies must have $50,- 000 capital, and stockholders' obligations will not be allowed unless amply secured. Companies of other States must have $100,000 capital. COMMISSIONS TO NON-RESIDENTS— Commissions are payable only to resident agents. Resident agents cannot divide commissions with non- residents, unless the latter are licensed as non-resident brokers. 312 FIRE INSURANCE LAWS, TAXES AND FEES. DEPOSIT — Required to be made in bonds of United States, North Carolina or cities or counties of North Carolina, or approved first mortgages on real estate situate in North Carolina as follows: Companies whose capital stock is $500,000 or less, $10,000; companies whose capital stock is more than $500,000 and not over $1,000,000^ $20,000; com- panies whose capital stock is in excess of $1,000,000, $25,000. Company may deposit a surety bond in some surety company licensed in North Carolina for like amount in lieu of the deposit of securities. Foreign companies are required to have at least $100,000 on deposit with one of the United States. (Nature of securities not specified.) DOMESTIC COMPANIES— Ins. Law, Sec. 4727. "The procedure for or- ganizing such a corporation shall be as follows : The proposed cor- porators, a majority of whom must be residents of the State, and not less than ten, shall subscribe articles of association setting forth their intention to form a corporation; its proposed name, which must not so closely re- semble the name of an existing corporation doing business under the laws of this State as to be likely to mislead the public and must be approved by the Insurance Commissioner; the class of insurance it proposes to transact and on what plan or principle; the place within the State of its location, and, if on the stock plan, the amount of its capital stock. The words 'in- surance company' must be a part of the title of any such corporation, and also the word 'mutual,' if it is organized upon the mutual principle. * * * The Insurance Commissioner, if it appear that the requirements of the law as herein have been complied with, shall certify the fact, and his approval of the certificate, by indorsement thereon. Such certificate shall thereupon be filed by said officers in the office of the Secretary of State, who, upon payment of $25, shall cause the certificate with the indorsement thereon to be recorded, and shall issue a certificate. * * *" EXAMINATIONS — Each domestic company must be examined as often as once in three years ; and the Commissioner is empowered to make an exam- ination of any such company whenever he deems it prudent to do so, or upon the request of five or more of the stockholders, creditors, policyhold- ers, or persons pecuniarily interested therein, who shall make affidavit of their belief, with specifications of their reasons therefor that company is in an unsound condition. Whenever he deems it prudent he shall also visit and examine or cause to be visited and examined any foreigpn insurance company applying for admission or already admitted to the State, and such company shall pay the proper charges incurred in such examination. Penalty for refusal to permit or facilitate examination, revocation of li- cense. A company may be examined on request of a citizen, but the latter must give bond for payment of expenses to be borne by such citizen, in case his charges are not sustained. FEES — License to each fire insurance company, $200; license to each domestic mutual insurance company, $50, annual fees, $10, including license issued to each general agent ($5), seal ($1), filing application for license ($1), and certificate of qualification and seal, known as State license ($3), NORTH CAROLINA. 313 license to each special or district agent or manager, non-resident broker or organizer, including seal, $3; license to each local or canvassing agent, $1, including seal (for each member of firm) ; filing and examining statement preliminary to admission, $20 ; filing and auditing annual statement, $10 ; filing any other paper required by law, $1 ; for each certificate of examin- ation, condition or qualification of company or association, $2; for each seal when required, $1 ; for making abstract of financial statement, $4 ; service of process upon Commissioner as attorney, $1 ; for each examina- tion of domestic company, $25, and for each examination of foreign com- pany, $50, for the State, and in addition, as fees to the Commissioner, for examination of any foreign company, $25 per diem, and all expenses, and for examining any domestic company, actual expenses incurred ; for copy of any record or paper, 10 cents per copy sheet and $1 for certifying same ; cost of publication, $9. Fees are payable to Insurance Commissioner. FIRE DEPARTMENT TAX— A fire department tax of one-half of one per cent is levied in each city and town having $1000 worth of fire-fight- ing apparatus, and enforcing . the building and inspection laws to the satisfaction of the Insurance Commissioner. No fire department tax is levied upon companies investing three-fourths of their capital in North Carolina or in North Carolina securities. FIRE MARSHAL — Insurance Law, Sec. 4818. "The Insurance Com- missioner and the chief of the fire department, or chief of police, where no chief of fire department, in cities and towns, and the sheriff of the county where such fire occurs outside of an incorporated city or town are hereby authorized to investigate the cause, origin and circumstances of every fire occurring in such cities or towns or counties in which property has been destroyed or damaged, and shall specially make investigation whether such fire was the result of carelessness or design. * * *" Sec. 4823. "Any expenses, including counsel, expenses of deputy, detectives and ofiicers, incurred by the Insurance Commissioner in the performance of the duties imposed upon him by the provisions of this act shall be defrayed by the fire insurance companies doing business in this State, and a tax of one- fifth of one per centum on the gross premium receipts of all such com- panies is hereby levied for this purpose, to be collected by said Insurance Commissioner as other taxes on insurance companies are collected." The Insurance Law, Sees. 481 5-4816, requires the authorities to appoint chiefs of fire departments in all towns where none exist, and town authorities are required to remunerate such chiefs. The latter act also as inspectors of buildings, where no such officers have been appointed. The law also re- quires the establishment of fire limits ; prescribes building regulations ; pro- vides for quarterly inspections of buildings within fire limits and annual inspections of others, and in the proper care of stoves, ashes, waste, etc. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Not re- quired. GENERAL PENALTIES— Ins. Law, Sec. 4703. "The authority of a foreign insurance company may be revoked if it shall violate or neglect to 314 FIRE INSURANCE LAWS, TAXES AND FEES. comply with any provision of law obligatory upon it * * *" Sec. 3,484. "For violation of any provision of this act, the penalty whereof is not especially provided for herein, the offender shall be punished by a fine of not more than $500." A company may be fined $10 for not reporting losses as they occur to the Insurance Commissioner. IMPAIRMENT— Ins. Law, Sec. 4733. "When the net assets of a com- pany do not amount to more than three-fourths of its original capital, it may make good its capital to the original amount by assessment of its stock. Shares on which such an assessment is not paid within sixty days after demand shall be forfeitable, and may be canceled by vote of the directors, and new shares issued to make up the deficiency. If such com- pany shall not within three months after notice from the Insurance Com- missioner to that effect make good its capital as aforesaid, or reduce the same as allowed, its authority to transact new business of insurance shall be revoked by said Commissioner." Sec. 4704. "The authority of a foreign company may be revoked if it shall violate or neglect to comply with any provision of law obligatory upon it, and whenever, in the opinion of the Insurance Commissioner, its condition is unsound, or its assets above its liabilities, as provided in Sec. (>•], are less than the amount of its original capital or required unimpaired funds." Sec. 4705 prescribes the method of computing reinsurance reserve. Mutual companies must assess to make good impairments. INVESTMENTS PRESCRIBED— The capital of domestic companies and the deposit required from foreign companies authorized to transact business in the State must be composed of bonds of the United States or of any of the States whose bonds do not sell at less than par, or in first mortgages on real estate in the State or in bonds or notes of any city, county or town of the State whose net indebtedness does not exceed five per cent of the last preceding valuation of the property therein for the purpose of taxation. Domestic companies may acquire and hold real estate for the convenient accommodation of their business at a cost not exceeding twenty-five per cent of their cash assets, but may hold real estate under the conditions of any mortgage owned or by purchase or set-off on execution upon judg- ment for debts due in the course of legitimate business. A company hav- ing more than $100,000 capital may, with the consent of the Insurance Commissioner, invest the balance over $100,000 in such safe manner as may be approved by the Commissioner. LICENSED BROKERS— Ins. Law, Sec. 4769. "The Insurance Commis- sioner, upon the annual payment of a fee of $20, may issue licenses to citizens of this State, subject to revocation at any time, permitting the per- son named therein to procure policies of fire insurance on property in this State in foreign insurance companies not authorized to transact business in this State. Before the person named in such a license shall procure any in- surance in such companies or on any property in this State, he shall, in every case, execute and file with the Insurance Commissioner an affidavit NORTH CAROLINA. 315 that he is unable to procure in companies admitted to do business in this State the amount of insurance necesspxy to protect said property, and shall only procure insurance under such license after he has procured insurance in companies admitted to do business in this State to the full amount which said companies are willing to write on said property; provided, that such licensed person shall not be required to oflfer any portion of such in- surance to any company which is not possessed of cash assets amounting to at least $25,000, or one which has, within the preceding twelve months, been in an impaired condition. Each person so licensed shall keep a sepa- rate account of the business done under the license, a certified copy of which account he shall forthwith file with the Insurance Commissioner, showing the exact amount of such insurance placed by any person, firm, or corporation, the gross premiums charged thereon, the companies in which the same is placed, the date of the policies and the terms thereof, and also a report in the same detail of all such policies canceled and the gross return premiums thereon, and before receiving such license shall execute and deliver to the treasurer a bond in the penal sum of $1000, with such sureties as the treasurer shall approve, with a condition that the licensee will faithfully comply with all the requirements of this section, and will file with the treasurer, in January of each year, a sworn statement of the gross pre- miums charged for insurance procured or placed, and the gross return pre- miums on such insurance canceled under such license during the year ending on the thirty-first day of December next preceding, and at the time of filing such statement will pay into the treasury of the State a sum equal to five per cent of such gross premiums, less such return premiums so re- reported." Brokers are held to be agents of the insurance companies whose policies they procure. Fraudulent representations made knowingly are punishable by fine of $100 to $500, or imprisonment for not exceeding one year. Brokers shall be personally liable for policies procured from un- licensed companies. Penalty for neglecting to file affidavits and statements required, forfeiture of license, and fine of $100 to $500, or by imprisonment for not more than one year, or both. Under Sec. 4769 brokers are per- mitted to insure mills in outside mutual companies upon filing papers with the Insurance Commissioner and paying license fees and taxes for each of such companies. By Sec. 4766, the resident agents' law, the Insurance Commissioner is authorized to license (fee $3) a non- resident as a broker, after receiving a proper application and an affidavit that such .non-resident will not, during the fiscal year, place, directly or indirectly, any fire insurance on property located in North Carolina except through a licensed resident agent. LIMIT ON A SINGLE RISK — Mutual companies, one-tenth of net assets; stock companies, 10 per cent of net assets ; insurance shall not be written in excess of fair value of property, nor for a longer term than seven years. LLOYDS — No specific provision. The term company is construed to include all corporations, associations, partnerships, or individuals engaged as prin- cipals in the business of insurance. 316 FIRE INSURANCE LAWS, TAXES AND FEES. MISCELLANEOUS— Ins. Law, Sec. 4756. "When buildings insured against loss by fire and situated within this State are totally destroyed by fire, the company shall not be liable beyond the actual cash value of the insured property at the time of the loss or damage ; and if it shall appear that the in- sured has paid premium on a sum in excess of said actual value, the assured shall be reimbursed the proportionate excess of premium paid on the dif- ference between the amount named in the policy and the ascertained value, with interest at six per centum per annum from the date of issue. Every insurance company transacting business in this State shall, upon receiving notice of loss by fire of property in North Carolina, on which it is liable under a policy of insurance, forthwith notify the Insurance Commissioner thereof, and no insurance upon any such property shall be paid by any company until one week after such notification.'" Every insurance com- pany is required to transact its business under its own corporate name. Domestic companies are forbidden to embody in their policies any stipula- tion concerning the court in which suits may be brought, nor shall they limit the time in which suit may be begun to less than one year after the cause of action accrues. A license shall be refused any company forbidden by the laws of its own State or country, or by its charter, from investing its assets other than capital in bonds of the State of North Carolina. Submission of a fire loss to arbitration constitutes a waiver of the right to rebuild. The following law was enacted in 1905 (Sec. 4768) : "That it shall be unlawful for any fire insurance company, association or partnership doing busi- ness in this State employing an agent who is employed by another fire insurance company, association of partnership, either directly or through any organization or association, to enter into, make or maintain any stipulation or agreement in restraint of or limiting the compensation which said agent may receive from any other fire insurance company, associa- tion or partnership." (Sec. 3491.) "The penalty for any violation of this act shall be a fine of not less than $250 nor more than $500 and the for- feiture of license to do business in this State for a period of twelve months thereafter." Blank proofs of loss, in duplicate, must be furnished to the in- sured, from whom a written statement of loss is required. The iron safe clause shall not apply in settling losses on buildings, furniture and fixtures. MUTUAL COMPANIES— Ins. Law, Sec. 4738. "No policy shall be is- sued by a purely mutual fire insurance company hereafter organized, nor by a mutual fire insurance company with a guarantee capital of less than $50,000, until not less than $200,000 of insurance, in not less than 200 sepa- rate risks upon property located in North Carolina has been subscribed for and entered on its books. But no policy shall be issued under this section until the president and the secretary of the company shall have certified under oath that each and every subscription for insurance in the list pre- sented to the Insurance Commissioner for approval is genuine, and made with an agreement with each and every subscriber for insurance that he will take the policies subscribed for by him within thirty days of the granting NORTH CAROLINA. 317 of a license to the company by the Insurance Commissioner to issue poHcdes. ' When members of an association are engaged in the same line of business only fifty . separate risks need be pledged. A false oath in connection with certificate is punishable as perjury. Com- panies may be formed to operate in not more than two counties with a minimum of $25,000 in risks, owned by not less than twenty-five adult residents of such counties. Mutual companies may be formed with a guaranty capital of from $25,000 to $200,000, upon which three and one- half per cent may be paid semi-annually, if earned. "The guaranty fund shall be applied to the payment of losses only when the company has ex- hausted its cash in hand, and the invested assets, exclusive of uncollected premiums, and when thus impaired, the directors may make good the whole or any part of it by assessments upon the contingent funds of the company at the date of such impairment." Provision is made for the reduction or abolition of guaranty funds. Penalty for guaranteeing a policyholder against assessment, fine of not exceeding $100 for each offense. Every mutual company must keep in its treasury at least one assessment sufficient to pay one average loss. PRELIMINARY DOCUMENTS— Company must file with the Insurance Commissioner a copy of its charter and a verified statement of its standing and financial condition on December 31 preceding; also an affidavit of the president of the company that it has not written policies upon property located in the State except through its regularly commissioned and licensed agents located in the State, or otherwise violated the insurance law during the preceding year. Foreign companies must also file a certified copy of charter or deed of settlement; certificate of deposit, and appointment of general agent. Certificate of compliance with laws of company's home State required with statement. Total fees on admission, in addition to license, $44 for all companies except fire, for which the total is $45, and only paid once (includes abstract and publication fees). PUBLICATION — An abstract of each annual statement must be published in one newspaper by the Insurance Commissioner at an expense to the respective companies of $9 each. When a company publishes its assets, it must also publish its liabilities, and any publication purporting to show capital must only show the amount paid up. Penalty for violation of latter requirement, fine of $50 to $200. RECIPROCAL LAW — Revisal, 1905, Sec. 4749. "When, by the laws of any other State or nation, any taxes, fines, penalties, licenses, fees, deposits of money or of securities, or other obligations or prohibitions are imposed upon insurance companies of this State doing business m such other State or nation or upon their agents therein, then, so long as such laws continue in force, the same taxes, fines, penalties, licenses, fees, deposits, obligations and prohibitions, of whatsoever kind, shall be imposed upon all such insur- ance companies of such other State or nation doing business within this State and upon their agents here. Nothing herein shall be held to repeal 318 FIRE INSURANCE LAWS. TAXES AND FEES. or reduce the license, fees, taxes and other obligations now imposed by the laws of this State or to go into effect with the companies of any other State or nation unless some company of this State is actually doing or seeking to do business in such State or nation. When an insurance company organ- ized under the laws of any State or country is prohibited by the laws of such State or country or by its charter from investing its assets other than capital stock in the bonds of this State, then and in such case the Insurance Commissioner is authorized and directed to refuse to grant a license to transact business in this State to such insurance company." REINSURANCE — Ins. Law, Sec. 4770. "Every fire insurance company now or hereafter admitted shall annually and at such other times as the Insurance Commissioner may require, in addition to all returns now by law required of it or its agents or managers, make a return to the Insurance Commissioner in such form and detail as may be prescribed by him of all reinsurance contracted for or effected by it, directly or indirectly, upon property located in North Carolina, * * * and if any foreign or domestic company shall, directly or indirectly, reinsure any risk taken by it on any property located in North Carolina in any company not duly author- ized to transact business herein, or if it shall refuse or neglect to make re- turms required by this act, the Insurance Commissioner shall revoke its authority to transact business in this State." Penalty for violation, fine of $500. Reinsurance policies need not be signed by resident agents. The Insurance Commissioner rules that admitted fire insurance companies can- not reinsure for or in unlicensed marine companies. REINSURANCE RESERVE— Insurance Law, Sec. 4704. "* * * The actual unearned portion of the premiums written in its policies." RESIDENT AGENTS— Ins. Law, Sec. 4746. "Foreign insurance com- panies, upon complying with the conditions set forth, applicable to such companies, may be admitted to transact in this State by constituted agents resident therein, any class of insurance authorized by the laws now or hereafter in force relative to the duties, obligations, prohibition, and penalties of insurance companies, and subject to all the laws applicable to the transaction of such business by foreign insurance companies and their agents." Agents are forbidden to sign blank policies, under a penalty of $100 to $200 for each offense. A condition of admission is that a "foreign" company "shall appoint as its agent or agents in the State some resident or residents thereof." Insurance Laws, Sec. 4764. "That foreign fire in- surance companies legally authorized to do business in this State through regularly commissioned and licensed agents located in this State, shall not make contracts of fire insurance on property herein save through such resi- dent agents as are regularly commissioned by them and licensed to write policies of fire insurance in this State. No provision of this section is in- tended to do or shall apply to direct insurance covering the rolling stock of railroad corporations or property in transit while in the pos- session and custody of railroad corporations or other common carriers." NORTH CAROLINA. 319 Insurance Laws, Sec. 4765, provides that "every fire insurance company authorized to do business in the State is hereby prohibited from authoriz- ing or allowing any person, agent, firm or corporation who is a non-resident of this State to issue or cause to be issued except through a licensed agent any policy of insurance on property located in this State." Sec. 4766. "Any person, agent, firm or corporation licensed by the Insurance Commissioner to act as a fire insurance agent in this State is hereby prohibited from paying directly or indirectly any commission, brokerage, or other valuable consideration on account of any policy covering property in this State, to any person, agent, firm or corporation who is non-resident of this State, or to any person, agent, firm or corporation not duly licensed by the Insurance Commissioner as a fire insurance agent." The law passed in 1905 allowed a resident agent to pay not exceeding five per centum of any premium to a licensed non-resident broker. Penalty for first violation, revocation of license for three to six months ; for second violation, revocation of license for one year. Every policy issued in North Carolina must be counter- signed by a licensed resident agent of the company issuing it. SEMI-ANNUAL STATEMENTS— See "Tax Statements." STANDARD POLICY— A standard form of policy similar to that of New York is prescribed for use by all fire insurance companies. Rules and by-laws are not a part of the contract unless incorporated in the policy. See "Miscellaneous." Penalty for violation, $50 to $200 for each offense, but policy will be binding upon the company. Standard policy in size to fit typewriter may be used. TAXES— Sec. 4719. "Every general agent shall, within the first thirty days of January and July of each year, make a full and correct statement, under oath, of the amount of the gross receipts derived from the insurance busi- ness under this act obtained from residents of the State or on property lo- cated therein during the preceding six months, and shall, within the first fifteen days of February and August of each and every year, pay to the In- surance Commissioner a tax of two and one-half per centum upon the amount of such gross receipts therein returned ; provided, that if any gen- eral agent shall exhibit to the Insurance Commissioner a sworn statement showing that at least one-quarter of the entire assets of his company, when his company has assets, are invested in and are maintained in any or all of the following securities or property, viz. : Bonds of this State or of any county, city or town of this State, or any property situate in this State and taxable therein, then the tax shall be one per centum upon the gross receipts aforesaid ; and if the amount invested shall be three-fourths of the total assets, the tax shall be one-quarter of one per centum." Insurance Law Sec. 5175- * * * "No county or corporation shall be allowed to im- pose an additional tax, license or fee upon insurance company or agent." A tax of one-fifth of one per cent on gross premiums is required to defray the expense of investigation of fires. A tax of five per cent on gross pre- miums on risks placed by licensed brokers in unauthorized companies is 320 FIRE INSURANCE LAWS, TAXES AND FEES. imposed. The Insurance Commissioner is authorized to require from any corporation, firm or individual doing business in the State a list of its in- surance carried, or an affidavit that it is in licensed companies. See "Fire Department Tax." TAX STATEMENTS— Must be filed within the first thirty days of January and July in each year. See "Taxes." Fire department tax statements must be filed annually, within sixty days after December 31, of all pre- miums received during the year in each town in which the tax is payable. Tax is payable within seventy-five days after December 31, to the Insur- ance Commissioner. VALUED POLICY— No provision. COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. None. NORTH DAKOTA. STATE REQUIREHENTS. AGENTS DEFINED— Law of 1903, Chap. 112, Sec. i. "Whoever solicits insurance on behalf of any insurance corporation or person desiring insur- ance of any kind, or transmits an application for a policy of insurance, other than for himself^ to or from any such corporation, or who makes any con- tract for insurance, or collects any premiums for insurance, or in any man- ner aids or assists in doing either, or in transacting any business of like nature for any insurance corporation, or advertising to do any such thing, shall be held to be an agent of such corporation to all intents and purposes, unless it can be shown that he receives no compensation for such services." Penalty for acting as agent without license, fine of $50 to $500 for each offense. AGENTS' LICENSES— Revised Code, Chap. 14, Sec. 3124. "No agent shall act for any insurance company, directly or indirectly, in taking risks or transacting the business of insurance without procuring from the Commis- sioner of Insurance a certificate of authority stating that such corporation or company has complied with all the requisites of this chapter." Certifi- cates must be renewed annually April i. License required for each member of firm or agency corporation as the department does not issue licenses in the name of any firm or corporation. Applications for licenses must be made by companies. ANNUAL STATEMENTS— Must be filed not later than March i each year for year ending December 31 preceding. Penalty for not filing statement required, $100 for each day's neglect; for wilfully making false state- ment, $500 to $1000. ANTI-COINSURANCE — No prohibition of use of coinsurance clauses. ANTI-COMPACT — No restriction upon co-operation. ANTI-DISCRIMINATION— No provision. ATTORNEY — The Commissioner of Insurance must be appointed attorney to accept service of legal process. CANCELLATION OF POLICY— Covered by standard policy form. Policies may be canceled on five days' notice, at short rates by insured or pro rata by company. CAPITAL REQUIRED — Company must possess actual cash capital to the amount of $100,000; exclusive of losses reported, taxes, expenses and re- insurance reserve. COMMISSIONS TO NON-RESIDENTS— Commissions must be paid to resident agents. DEPOSIT — None required. Foreign company must file certificates from offi- cials of three States (including that in which deposit is made) that a stipulated sum has been deposited in one of the United States. 322 FIRE INSURANCE LAWS, TAXES AND FEES. DOMESTIC COMPANIES— Revised Code, Chap. 14, Sec. 3087. "Any num- ber of persons, not less than seven, may form a corporation to carry on the business of insurance, either upon the stock or mutual plan, against loss or damage by fire, lightning, cyclone, tornado or hail, or the risks of inland navigation and transportation or to make insurance upon the lives of persons and every insurance pertaining thereto, and against accidental injuries, including the granting, purchasing and paying of annuities and indemnities, and to transact fidelity insurance and corporate suretyship. An insurance company incorporated under the provisions of this chapter shall have power to make insurance of any kind hereinbefore mentioned which shall have been expressed in its articles of incorporation." Revised Code, Chap. 14, Sec. 3088. "The articles of incorporation shall set forth in addi- tion to what is required to be set forth in Chap. 11, Sec. 2861, as follows: 'The name of the corporation ; the pin-pose for which it is founded ; the place where its principal business is to be transacted ; the term for which it is to exist ; the number of its directors or trustees, and names and residences of those who are to serve until their successors are elected and qualified; if there is a capital stock, its amount and the number of shares into which it is divided; the kind of insurance proposed to be made, and whether on the stock or mutual plan; the period for the commencement and ter- mination of its fiscal year, and the period for which it is incorporated, not to exceed thirty years, and shall be filed in the office of the Commissioner of Insurance.' " Minimum capital stock, $100,000, of which $25,000 must be paid in before company begins business, and the balance within twelve months after filing articles of incorporation; except that time may be extended not exceeding one year by the Commissioner for good cause. EXAMINATIONS— Revised Code, Chap. 14, Sec. 3125. "Before granting certificates of authority to an insurance company to issue policies or make contracts of insurance the Commissioner of Insurance shall be satisfied by such examination and evidence as he sees fit to make, and require that such company is duly qualified under the laws of the State to transact business therein. As often as once in two years he shall personally, or by his deputy or chief clerk, visit each domestic insurance company and thoroughly in- spect and examine its affairs, especially as to its financial condition and ability to fulfil its obligations, and whether it has complied with the law. He shall also make an examination of any such company whenever he deems it prudent to do so, or upon the request of five or more of the stockholders, creditors, policyholders or persons pecuniarily interested therein, who shall make affidavit of their belief, with specifications of their reasons therefor, that such company is in an unsound condition. Whenever he deems it prudent for the protection of the policyholders in this State he shall in like manner visit and examine, or cause to be visited or examined by some com- petent person appointed by him for that purpose, any foreign insurance company applying for admission, or already admitted, to do business by agencies in this State, and such company shall pay the proper charges in- NORTH DAKOTA. 323 curred in such examination, including the expense of the Commissioner or his deputy." FEES — For fihng declaration and charter, $25 ; for filing annual statement, $io; for each certificate of authority, $2 ; for each abstract for publication, $2 ; for each agents' license (only one individual to be included in each certifi- cate), $2; for each process served upon the Commissioner, $2; for copies of papers, 25 cents per folio, and for affixing seal thereto, $1 ; for official examinations each company shall pay the proper charges incurred in such examination, including the expense of the Commissioner and his deputy. Fees are payable to Commissioner of Insurance. FIRE DEPARTMENT TAX— A tax of two per centum on premiums received in cities and tovsrns having standard fire departments is imposed for the support of the latter, but this is included in the 2j/^ per cent tax on gross premiums. FIRE MARSHAL— No provision. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Must be filed by December i, covering the preceding calendar year. GENERAL PENALTIES — For offenses for which no penalty is specifically provided, $100 to $500. License is revoked on failure to pay judgment. IMPAIRMENT — Revised Code, Chap. 14, Sec. 3099. "Whenever it appears to the Commissioner of Insurance that the capital of a domestic company is impaired to the extent of one-fourth or more on the basis fixed in Sec. 3095, he shall notify the company that its capital is legally subject to be made good in the mode provided by Sec. 3100, and if such company shall not, within three months after such notice, satisfy him that it has fully repaired its capi- tal, or reduced its capital as provided in Sec. 3101, he shall institute pro- ceedings against it in accordance with Sec. 3128." Sec. 3128. "If the Com- missioner of Insurance is of the opinion upon examination or other evidence that a foreign insurance company is in an unsound condition, or if it has failed to comply with the law, or if it, its ofHcers or agents, refuse to sub- mit to examination, or to perform any legal obligation in relation thereto, or if a life insurance company, that its actual funds, exclusive of capital, are less than its liabilities, he shall revoke or suspend all certificates of authority granted to it or its agents, and shall cause notifications thereof to be pub- lished three times, once in each week for three successive weeks in some newspaper published at the seat of the Government, and no new business shall thereafter be done by it or its agents in this State while such default or disability continues, nor until its authority to do business is restored by the Commissioner. If upon examination he is of the opinion that any do- mestic insurance company is insolvent or has exceeded its powers or has failed to comply with any provisions of law, or that its condition is such as to render its further proceedings hazardous to the public or its policy- holders, he shall apply to the district court of the county in which the prin- cipal office of the company is located to issue an injunction restraining it, in whole or in part, from further proceeding with its business." 324 FIRE INSURANCE LAWS, TAXES AND FEES. INVESTMENTS PRESCRIBED— A domestic company may invest its capital and funds or any part thereof in bonds or treasury notes of the United States or in bonds of the State or in bonds of any county or incor- porated city in the State authorized to be issued by the legislative as- sembly, and may loan such capital and funds or any part thereof on the security of such bonds, notes or upon bonds or mortgages on improved unencumbered real estate within the State worth double the amount loaned thereon; but the surplus moneys over and above the capital stock of such insurance companies may be invested in or loaned upon the pledge of bonds of the United States or of any of the States, or stocks, bonds or other evidences of indebtedness of any solvent dividend-paying institution incorporated under the laws of the United States except its own stock, provided always that the market value of above evidences of indebtedness shall be at all times during the continuance of such loan at least ten per cent more than the amount loaned thereon. LICENSED BROKERS — Brokers are prohibited from transacting business without first procuring a license. LIMIT ON A SINGLE RISK— Ten per cent of paid-up capital, exclusive of any guaranty, surplus, or special reserve fund, unless the excess shall be reinsured in some other good reliable company. LLOYDS — No provision. The word "company" in the law is defined as in- cluding all corporations, associations, partnerships or individuals engaged as principals in the business of insurance. MUTUAL COMPANIES — Must have subscriptions for $200,000 or more of insurance (if a domestic company) upon one hundred risks. County mu- tuals may be formed by fifty persons in five adjoining counties, owning $50,000 of property which they desire to insure, or by twenty-five persons in one county, owning $25,000 of property. Other State mutuals must have at least $200,000 of insurance in force. PRELIMINARY DOCUMENTS— Company must file with the Commissioner of Insurance certified copy of its charter and by-laws, power of attorney to Commissioner of Insurance, and a statement showing its financial condition. PUBLICATION — ^Statements for publication made out on blanks furnished by the Commissioner of Insurance, together with the certificate of authority of the Commissioner, must be published at least three times in a newspaper of general circulation printed and published in each judicial district of the State in which the company has an agency. Commissioner of Insurance selects three newspapers in each judicial district, from which company selects one. Cost of publication, authorized rate for legal notices. A mutual company must publish statement once in county in which it does business. Proof of publication must be filed with the Insurance Commis- sioner within four months from the time of filing of annual statement. Approved bills, accompanied by publishers' affidavits, are sent to companies by the Insurance Department. RECIPROCAL LAW— Revised Code, Chap. 14, Sec. 3133. "Whenever the NORTH DAKOTA. 325 laws of any other State of the United States or foreign country shall re- quire of insurance companies incorporated under the laws of this State, or of the agent thereof, any deposits of securities in such State for the pro- tection of policyholders or otherwise, or any payment for taxes, fines, penal- ties, certificate of authority, license or fees greater than the amount re- quired for such purpose from similar companies of other States by the then existing laws of this State, then and in every such case, all insurance companies of such States establishing or having heretofore established an agency in this State, shall be and are hereby required to make the same de- posit for a like purpose with the State Treasurer of this State, and to pay to the Commissioner of Insurance an amount equal to the amount of such charges and payment imposed by the laws of such other States upon the companies of this State and the agents thereof." REINSURANCE— Act of February, 1901, Sec. 2. "No fire insurance com- pany or association shall reinsure, or assume as a reinsuring company, or otherwise, in any manner or form whatever, the whole or any part of any risk or liability, covering property located in this State, of any insurance company or association not authorized to transact business in this State." Tenalty for violation, $500 for each offense, and for failure to pay fine, license shall be revoked until payment is made. The Insurance Commis- sioner rules that the acceptance of reinsurance of risks on North Dakota property by authorized companies from those which are not authorized, is illegal, but that a licensed company may reinsure its excess lives in an unauthorized company for the reason that no credit is given an authorized company for reinsurance given off, in arriving at the amount of premium income for taxation, and the admitted company is held responsible. Com- panies are not required to report premiums received from other companies on account of reinsurance. REINSURANCE RESERVE— Must be maintained at forty per cent of unex- pired premiums. RESIDENT AGENTS— Act of February, 1901, Sec. i. "No insurance com- pany or association not incorporated under the laws of this State, author- ized to transact business therein, shall make, write, place or cause to be made, written or placed, any policy, duplicate policy or contract of insur- ance of any kind or character, or any general or floating policy, upon prop- erty situated or located in this State except after the said risk has been approved, in writing, by an agent who is a resident of this State, regularly commissioned and licensed to transact insurance business therein, who shall countersign all policies so issued and make a record of the same on books provided for that purpose and receive the commission 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 the State, and the agents be paid the commission thereon. Noth- ing in this act shall be construed to prevent any such insurance company or association, authorized to transact business in this State from issuing policies at its principal or department offices covering property in this 326 FIRE INSURANCE LAWS, TAXES AND FEES. State, provided that such policies are issued upon applications 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, no provision of this section is intended to or shall apply to direct insurance covering the rolling stock of railroad corporations or prop- erty in transit, while in the possession and custody of railroad corpora- tions or other common carriers, nor to the movable property of such com- mon carriers used or employed by them in their business as common car- riers of freight, merchandise or passengers." Penalty for violation, $500 for each offense, and for failure to pay fine, license shall be revoked until payment is made. SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— The use of a standard policy form similar to that of New York is required. Penalty for using other than standard form, $50 to $100 for first, and $100 to $250 for each subsequent offense. See "Valued Policy." Clause covering loss or damage by explosion, when fire does not ensue, cannot be attached to a fire policy, under a ruling of the Insurance Department. TAXES — ^Two and one-half per cent of the gross premiums received in the State during the preceding year, less return premiums and cancellations and reinsurance premiums received from admitted companies, to be paid before renewal of certificates. No local taxes. Tax is payable to Com- missioner of Insurance. TAX STATEMENTS— Must be filed by March i. Fire department tax returns are included in annual statements. VALUED POLICY — Law of 1907, Sec. i. "Whenever any policy of insur- ance shall be written to insure any real property in this State against loss by fire, and that property insured shall be destroyed without fraud on the part of the insured or his assigns, the amount stated of the insurance written in such policy shall be taken conclusively to be the true value of the property insured." Sec. 2. "All acts and parts of acts in conflict with the provisions of this act are hereby repealed." The Attorney-General holds that this law is constitutional; that it does not conflict with the Standard Policy law, simply making the amount stated in the policy con- clusive evidence of the value of the insured property ; that there is nothing in the law which prohibits the company from making an agreement with the insured that in case of loss he would accept a certain portion of the actual value of the property; and that it is lawful for a company to attach a three-fourths value clause to a policy, as this law simply makes the amount stated in the policy conclusive as to the value of the insured property. COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. None. OHIO.* STATE REQUIREMENTS. AGENTS DEFINED — Sec. 3644. "A person who solicits insurance and pro- cures the application therefor, shall be held to be the agent of the party, company or association thereafter issuing a policy upon such application or renewal thereof, anything in the application or policy to the contrary notwithstanding." AGENTS' LICENSES — ^Agents must procure licenses, which expire on the first day of March next after they are issued. Firms are licensed the same as individuals, and at equal cost. Corporations may be licensed as agents, but each officer and agent of the agency corporation transacting insur- ance, and also such corporation, must have separate license, for each of which separate fee is charged. ANNUAL STATEMENTS— Must be filed within thirty days after January i, showing the condition as of December 31 next preceding. ANTI-COINSURANCE — The anti-coinsurance law was repealed in 1902. This repeal does not affect the provisions of the valued policy law, which applies to insurance on buildings and structures, and requires, in event of total loss, payment in full of the amount named in the policy; or, in case of partial loss, the full amount of the partial loss. ANTI-COMPACT — Sec. 3659. "If any such company, association or partner- ship doing business within this State makes an application for a change of venue, or to remove any suit or action wherein such company has been sued by a citizen of this State, now pending, or hereafter commenced in any court of this State, to the United States District or Circuit Court, or to any Federal Court, or shall enter into any compact or combination with other in- surance companies, or shall require their agents to enter into any compact or combination with other insurance agents or companies, for the purpose of governing or controlling the rates charged for fire insurance on any property within the State, or for the purpose of governing or controlling the rates per centum or amount of commission or compensation to be al- lowed agents for procuring contracts for fire insurance on any property within the State (provided that nothing herein shall prohibit one or more of such companies from employing a common agent or agents to supervise and advise of defective structures, suggest improvements to lessen the fire hazard, and to advise as to the relative value of risks), the Superintendent of Insurance shall forthwith revoke and recall the license or authority to it to do or transact business within this State, and no renewal of authority shall be granted to it for three years after such revocation; and it shall thereafter be prohibited from transacting any business in this State until again duly licensed and authorized." •Sectional numbers are the same as Clement Bates' edition Revised Statutes. 328 FIRE INSURANCE LAWS, TAXES AND FEES. ANTI-REBATE — No fire insurance company doing business in Ohio, or any officer, agent, solicitor or representative thereof, shall pay, allow or give, or offer to pay, allow or give, directly or indirectly, as an inducement to purchase fire insurance, any rebate of premiums payable on the policies or any special favor or advantage or any benefit to accrue thereon, or any payment or contract for services of any kind, or any valuable consideration or inducement whatever not specified in the policy contract of insurance. The receipt of such gifts or emoluments is also prohibited. Penalty for violation, heavy fine or imprisonment. ATTORNEY — A stipulation must be filed with the Superintendent of Insur- ance by other than Ohio companies, providing that service of legal process upon any agent of the company in the State shall be valid. CANCELLATION OF POLICY— Policy form must contain provision iat cancellation "at any time, upon the written request of the person insured." Short rates may be retained by company on cancellation by insured of cash policy; and the holder of a mutual policy must pay his proportion of losses occurring before receipt of policy for cancellation before his note can be surrendered to him. CAPITAL REQUIRED — Stock company must have at least $100,000 paid-up capital. COMMISSIONS TO NON-RESIDENTS— No provision. DEPOSIT — Sec. 3660. "A company incorporated by or organized under the laws of a foreign government shall deposit with the Superintendent of In- surance, for the benefit and security of its policyholders residing in the United States, a sum not less than $100,000 in stocks or bonds of the United States, or the State of Ohio, or any municipality or county thereof, which shall not be received by the Superintendent at a rate above their par value. * * * " DOMESTIC COMPANIES— Sec. 3632. "The articles of incorporation of a company formed for the purpose of insurance, other than life insurance, must be forwarded to the Secretary of State, who shall submit the same to the Attorney-General for examination, and if found by him to be in ac- cordance with the provisions of this chapter, and not inconsistent with the constitution and laws of this State and of the United States, shall certify and deliver back the same to the Secretary, who may reject any name or title of any company applied for when he deems the same similar to one already appropriated, or likely to mislead the public." Sec. 3633. "Upon the approval of the articles by the Attorney-General and the Secre- tary of State, the Secretary shall cause the same to be recorded and copied in the same manner as is provided in the preceding chapter, and a copy thereof to be deposited with the Superintendent of Insurance, who shall withhold from the company the certificate of authority if its name is so similar to the name of any other company as to mislead the public." Sec. 3634. "Except as hereinafter provided, no joint stock insurance company shall be organized under this chapter, or permitted to do business in this OHIO. 329 State, with a less capital than $ioo,ocx5, which must be fully paid up before the company shall be entitled to transact business, except that but twenty- five per cent of the capital stock of a live stock company must be paid up before the same shall have the right to do business. * * * " EXAMINATIONS — Sec. 272. "The Superintendent may make, or cause to be made by some person by him for that purpose appointed, an examina- tion into the affairs of any insurance company doing business in this State, whether incorporated in this State or not; and such company, its officers and agents shall submit their books and business to such examination, and in every way facilitate the same. * * * * The actual expenses incurred by such examinations shall be paid by the State Treasurer on the warrant of the State Auditor upon the certificate of the Superintendent of Insurance; provided that, when any examination is made upon the demand of the company there- for, the expenses of the same shall be paid by the company; and pro- vided further, that, when, by the laws of any other State, district, terri- tory or nation, examinations of companies of this Statfe are required or permitted to be made by the Insurance Department or other authority of such State, district, territory or nation, at the expense of such com- panies, then the expenses of all examinations made by the Insurance Department of this State of all companies of such State, district, territory or nation shall be respectively charged to and collected from the com- pany so examined." A mutual fire association may be examined by an appointee of the Court of Common Pleas on application of three interested parties, in which case a refusal to permit examination is deemed contempt of court. FEES — For filing charter, $25; for filing annual statement, $20; for each cert tificate of authority or license to company, $2; for each agent's license (firms are treated as individuals), $2; copy of papers on file, 20 cents per folio; certifying same, $1; for agent's compliance (one for each county in which there is an agent) for publication, $1 ; for license to procure insur- ance in unauthorized companies, $10 ; for collection of interest on deposits of companies of foreign governments, $25 per $100,000. The foregoing fees are payable to the Superintendent of Insurance; county recorder's filing fee, 10 cents. Reciprocal provision. FIRE DEPARTMENT TAX— None. FIRE MARSHAL — A State fire marshal, with the co-operation of local authorities, investigates all fires. A tax for the support of this department is levied on domestic and foreign fire insurance companies See "Taxes." FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Required to be filed by January 31. GENERAL PENALTY — Sec. 288. "Any person who violates any of the pro- visions of this chapter, or of any insurance law of this State for the viola- tion of which no penalty is elsewhere provided, shall be fined not more than $1000 or imprisoned not more than six months, or both. Any cor- 330 FIRE INSURANCE LAWS, TAXES AND FEES. poration, company or association violating any of the provisions of this chapter, or of any insurance law of this State for the violation of which no penalty is elsewhere provided, shall be liable to a penalty of not more than $1000 nor less than $100, to be recovered by action in the name of the State, and on collection paid to the Superintendent of Insurance to be covered by him into the State Treasury." Penalty, publishing any but authorized statement, $1000 for each violation. IMPAIRMENT — Sec. 274. "When it appears to the Superintendent, from ex- amination, or otherwise, that the assets of any insurance company organ- ized under the laws of this State after deducting therefrom all liabilities, including reinsurance reserve or unearned premium fund computed ac- cording to the laws of this State, are reduced twenty per cent or more below the capital required by law, he shall require such company to restore such deficiency within such period as he designates in such requisi- tion. * * *" Sec. 277. "When it appears to the Superintendent of Insurance, from the report of the person appointed by him, or other satis- factory evidence, that the affairs of any company, partnership, or associa- tion, not organized under the laws of this State, are in an unsound condi- tion, he shall revoke the authority granted to such company to do business in this State. * * *" Sec. 275. "If upon examination, or otherwise, it appears to the Superintendent that the funds and assets (other than contin- gent liability) of any company organized on the plan of mutual insurance, after deducting therefrom a reinsurance reserve fund computed in accord- ance with the law, are less than its liabilities, such company shall be deemed to have impaired its capital, and when such impairment shall exceed twenty-five per cent of such reinsurance reserve fund, the Superintendent shall require such company to make an assessment as provided in Sec. • 3650 Revised Statutes, for the amount needed to pay its incurred losses and expenses, and to make good the reinsurance reserve fund required by law, upon its members liable to assessment therefor in proportion to their several liabilities, to be paid within such period as the Superintendent shall name in such requisition. In case such impairment is more than forty per cent of such reinsurance reserve fund, it shall be unlawful for such com- pany to issue any new policies or transact any new business until the Superintendent issues to such company a license authorizing it to resume business, or until the court has rendered its decision in the case as pro- vided in Sec. 276, Revised Statutes. In case such impairment is more than twenty-five per cent and less than forty per cent of such reinsurance reserve fund, and the officers of the company certify that such impairment will be restored, then it will be lawful for the company to continue busi- ness as before the issuing of the requisition, for the term of thirty days from the date thereof, and if at the expiration of the thirty days any portion of the impairment is not restored the company shall not issue any new policies or transact any new business until authorized by the Superinten- dent, or until the court has rendered its decision in the case as provided OHIO. 331 in Sec. 276, Revised Statutes; and the trustees or directors of such com- pany are hereby made personally liable for any losses which are sustained upon risks taken after the Superintendent of Insurance has issued his requisition for filling up the deficiency in the assets, and before such de- ficiency is made up, but nothing herein shall be so construed as to require any mutual fire insurance company to keep on hand any cash reinsurance reserve or funds invested in securities, other than their premium notes, when the premium notes amount in gross to three per centum of the amount at risk by the company." INVESTMENTS PRESCRIBED— Sec. 3637 provides that the capital of a domestic company must be invested in bonds of the United States, or of the State of Ohio, or of any municipality or county or township thereof, or in mortgages on unencumbered real estate within the State of Ohio, worth double the amount loaned thereon ; if the amount loaned shall exceed one- half the value of the land mortgaged, exclusive of structures thereon, such structures to be insured in an authorized fire insurance company other than the company making such loan in an amount not less than the differ- ence between one-half the value of such land, exclusive of structures and the amount loaned, and the policy assigned to the mortgagee. Also in the stock of any national bank located in the State of Ohio or in first mortgage bonds of railroads within the State of Ohio, upon which default in the pay- ment of the interest coupons has not been made within three years previous to the purchase thereof. The surplus accumulations of a domestic com- pany may be invested in or loaned upon the above-mentioned securities or upon mortgages upon unencumbered real estate within the State worth fifty per cent more than the sum loaned thereon, exclusive of buildings, unless such buildings are insured in some company authorized to do business in Ohio, and the policy transferred to the company making the investment, or in bonds of any State of the United States, or in stocks, bonds or other evidences of indebtedness of any solvent dividend-paying institution in- corporated under the laws of the State of Ohio, or of any other State, or of the United States, except its own stock, or in negotiable promissory notes, maturing in not more than six months from the date thereof, secured by collateral security through the transfer of any of the classes of securities above described, with absolute power of sale within twenty days after default in payment at maturity. Sec. 3639. "No company shall own more than one-fourth of the capital stock of any national bank, nor invest in, nor loan on the stocks and bonds, both included, of any railroad company, to an extent exceeding one-tenth of its own capital, nor in the aggregate shall the investment in and loan on all railroad property exceed one-fourth of its capital. Not more than one-half of its capital shall be loaned on mortgage of real estate, as above provided for the investment of capital, and not more than one-tenth of the capital actually existing of any company shall be invested in a single mortgage ; the current market value of all such stocks, bonds, or other evidences of indebtedness, as above mentioned, in which the 332 FIRE INSURANCE LAWS, TAXES AND FEES. accumulations or surplus money over and above the capital stock of any insurance company may be loaned or invested, shall be at all times during the continuance of such loan at least twenty per cent more than the sum loaned thereon ; and if any investment or loan be made in a manner not authorized by this chapter, the directors who make or authorize the same shall be personally liable to the stockholders for any loss occasioned thereby; but insurance companies organized under the laws of this State, now doing business, shall not be compelled to change any investment made in accordance with the acts heretofore passed regulating such companies." LICENSED BROKERS — Law of 1904: "The Superintendent of Insurance may issue licenses to citizens of this State, subject to revocation at any time, permitting the person named therein to procure fire, lightning, explosion, tornado or marine insurance, on property in this State, in insur- ance companies not authorized to transact business in this State. Each such license shall expire on the thirty-first day of March next after the year in which it is issued, and may be then renewed. For each such license and renewal, the Superintendent of Insurance shall collect $10, and such licenses and renewals shall be filed with the recorder and published annu- ally in the county where such agent's office is located in the same manner as is required of certificates of compliance by Sec. 284, Revised Statutes. Before the person named in such license shall procure any insurance in such companies on any such property, he shall in every case file with the Superintendent of Insurance his own affidavit and the affidavit of the per- son, or of the president or secretary of the corporation, owning the property on which the insurance is proposed to be placed, which shall have force and effect one year only from the date thereof, that such owner is unable to procure from companies authorized to do business in this State the amount of insurance necessary to protect said property. Each person so licensed shall keep a separate account of the business done under his license, a certified copy of which account he shall forthwith, on procuring or issuing any such policy, file with the Superintendent of Insurance, showing the amount of such insurance, the name of the owner, brief description and location of the property, gross premium charged, name of company in which the insurance is placed, date of policy and term thereof, and also a report in the same detail of all such policies canceled and gross return premiums thereon. Before receiving such license such per- sons shall execute and deliver to the Superintendent of Insurance a bond in the penal sum of $2000, payable to the State, with at least two sureties, or a duly licensed surety company, approved by the Superintendent, and conditioned that the licensee will faithfully comply with all the requirements of this law, and will annually file with the Super- intendent of Insurance, in January, a sworn statement of the gross pre- miums charged for insurance procured or placed, and the gross premiums on such insurance canceled under such license during the year ending on the thirty-first day of December last preceding, and at the time of filing OHIO. 333 such statement will pay to the Superintendent of Insurance an amount equal to five per cent of the balance of such gross premiums after deduct- ing such return premiums so reported." Residents of Ohio securing insur- ance from unlicensed companies or Lloyds, must report such transactions within lo days after July i, and pay a tax of 5 per cent, on the premiums paid for such insurance, under penalty of $100 to $500 for each offense; but this does not apply to members of inter-insurance associations made up of residents of Ohio. LIMIT ON A SINGLE RISK— No provision. LLOYDS — Sec. 289. "The provisions of this chapter shall apply to individuals and parties, and to all companies and associations, whether incorporated or not, now or hereafter engaged in the business of insurance ; and it is unlaw- ful for any company, corporation or association, whether organized in this State or elsewhere, either directly or indirectly, to engage in the business of insurance, or to enter into any contracts substantially amounting to in- surance, or in any manner to aid therein, in this State, or to engage in the business of guaranteeing against liability, loss or damage, unless the same is expressly authorized by the statutes of this State, and such statutes and all laws regulating the same and applicable thereto, have been com- plied with. * * *" Sec. 3656. "* * * Nor shall any company, asso- ciation or partnership organized under the laws of any other State, take risks or transact business of insurance in this State, directly or indirectly, unless possessed of the amount of actual capital required by similar com- panies formed under the provisions of this chapter, nor unless the capital stock of the company is paid up and invested as required by the laws of the State where it was organized. * * *" MISCELLANEOUS— Sec. 3691. "The cellar and foundation walls shall not be included or considered a part of the building or structure in settling losses, anything in the application or policy to the contrary notwithstand- ing." Concerning change of venue, see "Anti-Compact." MUTUAL COMPANIES — Foreign mutual companies must have actual cash assets of the same amount and description as is required of mutual fire insur- ance companies of Ohio after organization. Domestic mutual companies must have subscriptions for at least $500,000 of insurance on 200 risks, with $10,000 of cash premiums paid thereon by the subscribers, and each sub- scriber must assume a contingent liability of not less than three nor more than five annual premiums. Not less than ten residents of Ohio, or of an adjoining State, owning property in Ohio, may form a mutual fire associa- tion for their mutual protection, and such associations are exempt from the foregoing requirement. Mutual companies having not less than $200,000 of net assets may issue policies on the stock plan. All buildings insured by a mutual company are pledged to the company to secure the amount of the premium note or contingent liability. PRELIMINARY DOCUMENTS— Company must file with the Superin- tendent certified copy of its charter and by-laws, and a verified statement 334 FIRE INSURANCE LAWS, TAXES AND FEES. showing its financial condition; copies of policy contracts and specimens of literature ; copy of certificate of authority issued by its own State Depart- ment ; a waiver authorizing any agent to accept service of legal process, and an appointment of at least one agent; companies of foreign governments must also file a copy of its home office statement. PUBLICATION — Sec. 284 provides that the Superintendent of Insurance is required to annually issue to each insurance company and association which he finds should be authorized to do business in this State, upon its complying with the law and filing its annual statement, or as soon thereafter as the same can be done, his certificate reciting that it has in all respects complied with the laws of this State applicable to it and also the actual amount of paid-up capital, the aggregate amount of its assets and liabilities, together with its aggregate income and expenditures for the preceding year, as shown by the annual statement of the company or asso- ciation for that year, filed with and accepted by the Superintendent, which such certificate (as to fire companies) shall expire on March i next, after the date of its issue. Each such company and association not incorporated under the laws of the State of Ohio, shall file a copy of such certificate, duly certified by the Superintendent, with the recorder of each county in which it has an agency, before doing business in such county under authority of such certificate; and for filing same the recorder is entitled to a fee of 10 cents. Each such company and association not incorporated under the laws of the State of Ohio shall at least once a year, and before October i of each year, publish such certificate in every county where it has an agency, in a newspaper pubHshed and of general circulation in the county, and having the certificate of the Superintendent of eligibility to make such publication. Every such company and association not incorporated under the laws of the State of Ohio is required to file with the Superintendent of Insurance, on or before October i of each year, its report in writing under oath of its president or secretary, setting forth the counties in which such publications were made, the counties in which it had agencies at the time of such publications and the names of the newspapers in which the publications were made, and shall attach as an exhibit thereto a copy of the certificate so published. The charge of the newspapers for such publication is not made with or collected by the Superintendent of Insur- ance, but is attended to directly by the companies themselves. RECIPROCAL LAW— Sec. 282. "* * * When by the laws of any other State or nation, any taxes, fines, penalties, license fees, deposits of money, or of securities, certificates or other obligations or prohibitions are im- posed on insurance companies of this State, doing business in such State or nation, or upon their agents therein, so long as such laws continue in force, the same obligations and prohibitions, of whatever kind, shall be imposed upon all insurance companies of such other State or nation, doing business within this State, and upon their agents here." REINSURANCE— Sec. 2745a. "* * * And no fire insurance company OHIO. 335 or association authorized to do business in this State shall reinsure, dis- pose of, cede, pool, divide, or in any manner or form whatsoever, reduce any portion of its risk or liability, covering property located in whole or in part in this State, in or with any company, association, person or persons whatever, incorporated or otherwise, not authorized by law to do the busi- ness of fire insurance in this State, or to reinsure, or assume as a reinsuring company or otherwise, in any manner or form whatsoever, the whole or any part of any risk or liability, covering property located in whole or in part in this State, of or for any insurance company, association, person or persons, incorporated or otherwise, not authorized by law to do the business of fire insurance in this State. It shall be the duty of the Superintendent of Insurance of this State annually, and at such times as he may see fit, to require the president or other chief officer of each company or association, to file a statement under oath, showing the names of each fire insurance company, or association, with whom or for whom any liability for insurance or property located in whole or in part in this State has been reinsured, dis- posed of, ceded, pooled, divided, or in any manner or form whatsoever re- duced or increased." REINSURANCE RESERVE— Fifty per cent of the whole amount of pre- miums on unexpired risks and policies running one year or less from date of policy, and a pro rata amount of all premiums on unexpired risks and policies running more than one year from date of policy. (Full premiums on unexpired ocean marine risks). RESIDENT AGENTS— Sec. 2745a. "It shall be unlawful for any insurance company or agent legally authorized to transact insurance business in the State of Ohio to write, place or cause to be written or placed, any policy, renewal of policy, contract for insurance upon property situated or located in the State of Ohio, except through a legally authorized agent in the State of Ohio, who shall countersign all policies so issued and enter the payment of the premium upon his record, and the writing, renewal, placing or causing to be written or placed any policy of insurance in any other man- ner or form, is hereby declared to be a violation of the law providing for the payment of taxes by foreign insurance companies doing business in the State of Ohio, as set out and provided in Sec. 2745 of an act passed by the General Assembly of the State of Ohio, April 12, 1889." Penalty for vio- lation, revocation of license for ninety days, and until all taxes, penalties and expenses have been paid, and the company made complete recompliance with the law. SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— Ohio has no standard policy form. TAXES— The Superintendent of Insurance shall, in the month of November, annually, collect from each non-Ohio company an amount equal to two and one-half per cent of the balance of gross premiums of such company, after deducting return premiums paid for cancellations and considerations re- ceived from other companies for reinsurance in Ohio, as shown by its next 336 FIRE INSURANCE LAWS, TAXES AND FEES. preceding annual statement. Also, as to domestic and foreign companies, one-half of one per cent on gross premiums to cover the expense of the fire marshal's office. No credit is allowed of amounts paid for reinsurances in other companies. Reciprocal provision. Penalty for default in payment of taxes after a statement thereof has been made and mailed to such comt- pany, suspension of authority. Sec. 2745, as amended in 1902, provides that: "If the laws of any other State, Territory or nation authorize charges for the privilege of doing business therein, or taxes against any insurance companies, which are, or may be organized in this State, ex- ceeding the charges herein provided, the same shall be charged against all insurance companies of such State, Territory or nation, doing business in this State, in place of the charges herein provided." See "Reciprocal Law." TAX STATEMENTS — Other State and foreign companies are required in their annual statements to set forth the gross amount of premiums received in Ohio during the preceding calendar year without deductions for com- missions, return premiums, or considerations paid for reinsurance or any deductions whatever; and shall also therein set forth in separate items return premiums paid for cancellations and also considerations received from other companies for reinsurances in Ohio during such year. Penalty for making false statement or refusing to pay tax, revocation of license. VALUED POLICY — Sec. 3643. "Any person, company or association here- after insuring any building or structure against loss or damage by fire or lightning, by the renewal of a policy heretofore issued, or otherwise, shall cause such building or structure to be examined by an agent of the insurer, and a full description thereof to be made, and the insurable value thereof to be fixed by such agent; in the absence of any change increasing the risk without the consent of the insurers, and also of intentional fraud on the part of the insured, in case of total loss, the whole amount mentioned in the policy or renewal upon which the insurers receive a premium shall be paid ; and in case of a partial loss the full amount of the partial loss shall be paid ; and in case there are two or more policies upon the property, each policy shall contribute to the payment of the whole or the partial loss in proportion to the amount of insurance mentioned in each policy ; but in no case shall the insurer be required to pay more than the amount mentioned in its policy." COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. None. CINCINNATI — Salvage Corps assessment, i^ per cent. OKLAHOMA. STATE REQUIREMENTS. AGENTS DEFINED — Sec. 27. "Whoever, for compensation, not being the appointed agent or officer for the company in which such insurance or reinsurance is effected, negotiates contracts of insurance or reinsurance for a person other than himself, shall be an insurance broker, except as pro- vided in this Act. A person not a duly licensed insurance broker, who for compensation solicits insurance on behalf of any insurance company, or transmits for a person other than himself an application for a policy of insurance to or from such company, or offers or assumes to act in the ne- gotiating of such insurance, shall be an insurance agent within the intent of this Act, and shall thereby become liable to all the duties, requirements, liabilities and penalties to which an agent of such company is subject." Sec. 59. "Any person who shall solicit and procure an application for insurance shall, in all matters relating to such application for insurance, and the policy issued in consequence thereof, be regarded as the agent of the company issuing the policy and not the agent of the insured, and all provisions in the application and policy to the contrary are void and of no effect whatever." AGENTS' LICENSES — Each agency must procure a license which expires last day of February, annually. (One license covers a firm). Applications for licenses must be made by company officials, under seal. Penalty for acting as agent without a license, fine of $100 to $500 for each policy written. Agent is liable on policies written for unauthorized companies. Sec. 60. "No corporation or stock company shall act or be licensed to act as an agent or representative of any insurance company or association in soliciting, selling, delivering, writing or in any manner placing, or causing to be placed, any insurance policy or contract in this State." ANNUAL STATEMENTS— Must be filed on or before last day of February, annually, showing condition as of December 31 next preceding. Penalty for failure to file statement or answer inquiries, $500. Commissioner may extend time for good cause. ANTI-COINSURANCE— No statute prohibiting use of coinsurance clauses. ANTI-COMPACT — An anti-trust law was enacted in 1908, which may be construed as prohibiting co-operation between insurance companies and agents. The matter has been referred to the Attorney General for his opinion. Concerning the publication and use of rates prepared by an independent rater, the Attorney-General says : "If the act of the insurance companies were simply to obtain information from the rating book, which information they used as they were pleased, the use of the rating book would not be a violation of law. If insurance companies with or without 338 FIRE INSURANCE LAWS, TAXES AND FEES. an agreement restrict trade and insurance, with or without a rating book, the act is illegal, and, if knowingly done, is a crime." The Insurance Com- missioner states that in his opinion "a company should uniformly apply its schedule of rates without discrimination." ANTI-DISCRIMINATION — The Insurance Commissioner construes Sees. 8804 and 8805 of Snyder's Compiled Laws relating to monopoly as for- bidding insurance companies to discriminate in rates. ATTORNEY — The Insurance Commissioner of the State must be authorized to accept service of legal process. CANCELLATION OF POLICY— Sec. 40. "Any policy issued by companies authorized to do business in this State may be canceled at any time at the request of the insured; or by the company by giving five days' notice of such cancellation. If the policy shall be canceled as hereinbefore provided, or become void or cease, the premium having been actually paid, the unearned portion shall be returned on surrender of the policy or last renewal, the company retaining the customary short rate ; except that when the policy is canceled by the com- pany by giving notice, it shall retain only the pro rata premiums." CAPITAL REQUIRED — Company must possess at least $100,000 of paid-up or guaranty capital or surplus invested in such securities as domestic com- panies are allowed to invest in. COMMISSIONS TO NON-RESIDENTS.— Licensed agents may divide com- missions with licensed agents or brokers of other States. DEPOSIT — None required. Foreign company must have $200,000 on deposit in some State for the benefit of United States policyholders. DOMESTIC COMPANIES— Sec. 3. "Ten or more persons may form a cor- poration for the purpose of making any of the following kinds of in- surance, to wit: (i) Against loss or damage to property by fire, hail, lightning, or tempest on land, or explosion of natural gas. (2) Upon vessels, freights, goods, moneys, effects, bottomry and respondentia in- terests, and every insurance appertaining to or connected with marine and inland risks of transportation and navigation." The incorporators shall file in the office of the Insurance Commissioner a certificate of organiza- tion, signed and sworn to by the president, secretary, and a majority of the directors, stating their intention to form a corporation and setting forth the name of the company, its location, the kind or kinds of insurance to be transacted, whether the company is to be stock or mutual, and, if stock the amount of capital, and the period limited for the duration of the company; also any other particulars necessary to make manifest the purposes of the corporation. Domestic company must have at least $50,000 of capital, guaranty capital, or surplus. EXAMINATIONS — Domestic companies must be examined at least once in each three years or upon the request of five or more persons pecuniarily interested therein who charge that the company is in unsound condition. Outside companies may be examined at the discretion of the Insurance OKLAHOMA. 339 Commissioner. Companies examined must bear the expenses of such ex- ammation. If a domestic company is found to be unsound or its condition or management is such as to render its further proceeding hazardous to the pubHc, its policyholders or its creditors, the Commissioner shall apply through the Attorney General for an injunction to restrain it from trans- acting further business. If an outside company is found to be in a similar condition the Commissioner shall revoke or suspend all certificates of authority granted to it or its agents and shall cause notification thereof to be published in newspapers of general circulation, and the company shall transact no new business until its authority is restored by the Commis- sioner. If, however, the ground for revocation or suspension relates to some matter other than the financial condition or soundness of the com- pany or a deficiency in its assets, he shall notify the company not less than ten days before revoking its authority to do business, and shall specify the particulars of the supposed violation. FEES — For filing the declaration or the certified copy of charter herein re- quired, $30 ; for filing annual statement, reciprocal ; domestic mutual com- panies, $5 ; for each certificate of authority to agents of companies not in- corporated under the laws of this State, $3 ; for each certificate to agents of domestic companies, 50 cents ; for each copy of paper on file, per folio, 20 cents ; affixing seal, $1 ; appointment of attorney for service, $3 ; for examinations, expenses thereof ; for service of process, $3 ; for appraisal of property for each mortgage deposited, $5 ; license tax, domestic com- panies, $10; other companies, $100; to be paid annually. Fees are col- lected by Insurance Commissioner and paid to the State Treasurer. FIRE DEPARTMENT TAX— Governed by reciprocal law. FIRE MARSHAL — Provision is made for a State Fire Marshal to investigate fires, etc. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Sec. 21. "* * * The annual statement of a company of a foreign country shall em- brace only its business and condition in the United States, and shall be sub- scribed and sworn to by its resident manager or principal representative in charge of its American business." GENERAL PENALTY^ — In cases where no specific penalty is prescribed, a violation of or non-compliance with law is punishable by a fine of $50 to $500. IMPAIRMENT — When a domestic company's capital is found to be impaired, the Insurance Commissioner shall notify the company to make good the deficiency within ninety days, and if such deficiency is not repaired or the capital reduced as provided by law, he shall institute proceedings against the company. If the capital of an outside company is found to be impaired its authority to do business must be revoked. See "Examinations." INVESTMENTS PRESCRIBED— A domestic company may invest 75 per- cent of its assets in public funds of the United States or the District of Columbia, or of any State or Territory of the United States; bonds or 340 FIRE INSURANCE LAWS, TAXES AND FEES. notes of any county, city, town, school or water district in Oklahoma or of any other State of the United States; mortgage bonds of railroad corporations (under certain restrictions) ; loans upon improved and unen- cumbered real property in any State, not exceeding 50 percent of market value ; loans upon collateral securities not exceeding 90 percent of market value thereof ; and such domestic companies doing business in other States or in foreign companies may invest funds required to meet obligations incurred therein in conformity to the laws thereof in the kind of securi- ties that such corporation is allowed to invest in in that State. The remain- ing 25 percent of its assets may be invested in such classes of securities, not prohibited by law, as may be approved by the Insurance Commissioner. Real estate requisite for the convenient accommodation of the company's business may be held, and such other real estate as is taken in payment of debts, etc., may be held not exceeding five years (the Insurance Com- missioner may extend the time for good cause). Sec. 38. "No domestic insurance company shall invest any of its funds in any unincorporated business or enterprise nor in the stocks or evidence of indebtedness of any corporation, the owners or holders of which stock or evidence of indebtedness may in any event be or become liable on account thereof to any assessment except for taxes, nor shall any such insurance company invest any of its funds in nor loan upon its own stock or in or upon the stock of any other insurance company, nor shall the stock of any such company be sold to, owned or controlled by any other corporation. No such company shall invest in, acquire or hold directly or indirectly, more than ten per centum of the capital stock of any corporation, nor shall more than ten per centum of its surplus be invested in or loaned upon the stock of any one corporation. No such company shall subscribe to or participate in any underwriting of the purchase or sale of securities or property, or enter into any transaction for such pur- chase or sale on account of said company jointly with any other person, firm or corporation ; nor shall any such corporation enter into any agree- ment to withhold from sale any of its property but the disposition of its property shall be at all times within the control of its board of directors." LICENSED BROKERS— No provision. LIMIT ON A SINGLE RISK— Ten per cent of capital stock and surplus. For inter-insurance associations, 10 percent of premium income at time of writing the risk. LLOYDS — General Ins. Law. Sec. i. "That in this Act, unless the context otherwise requires, "company" or "insurance company" shall include all corporations, associations, partnerships or individuals engaged as prin- cipals in the insurance business, except fraternal and benevolent orders and societies." Sec. 39. "* * * Individuals, firms, corporations or associa- tions of this State may insure one another against loss or damage by fire, lightning and tornado under the plan of reciprocal or inter-insurance, when engagements have been entered into for insurance, of not less than five OKLAHOMA. 341 hundred thousand dollars on not less than five hundred separate risks in this State, to be bound simuhaneously upon the filing of their sworn state- ment, and the paid premiums on the said five hundred risks shall amount to not less than twenty-five thousand dollars, and if the said premiums do not amount to twenty-five thousand dollars, the insurers shall deposit either in cash or its equivalent such an amount as shall be necessary to make up the difference between the amount of premiimis so received and the re- quired amount of twenty-five thousand dollars, which deposit shall remain as a guaranty fund until the premium income shall amount to the requisite twenty-five thousand dollars; provided, further, that the said insurers shall not carry net on any single risk an amount in excess of ten per centum of the premium income at the time of writing the risk. In all other respects the said insurers shall comply with all the requirements of the laws of this State applicable to joint stock companies of this State engaged in the busi- ness of fire, lightning and tornado insurance; provided, that this section shall in no wise apply to farmers' mutual insurance companies ; and pro- vided, further, that no individual or individuals as such shall engage in the business of insurance in this State as principals, except as expressly permitted by this section." MISCELLANEOUS — Company licenses expire last day of February. Art. 2, Chap. 21, Laws of 1909. Sec. i. "No insurance company shall, knowingly, issue any fire insurance policy upon property within this State for an amount which, with any existing insurance thereon, exceeds the fair value of the property, nor for a longer term than five years." MUTUAL COMPANIES — A mutual company may be organized by not less than 1000 persons to insure dwellings, barns, farm property, county school houses, churches and contents and live stock against loss by fire, lightning, windstorms and hail. Annual statements must be filed yearly before the last day of February. PRELIMINARY DOCUMENTS— Company must file with the Commissioner a copy of its charter and a verified statement of its condition, and obtain certificate to do business. See also "Domestic Companies." Certificate of compliance with laws of company's home State not usually required annually. PUBLICATION — None required. Any advertisement showing assets must show liabilities with equal conspicuousness. RECIPROCAL LAW — Sec. 32. "Whenever the existing or future laws of any State of the United States require of insurance companies incorporated by or organized under the laws of this State, and having agencies in such other States, or the agents thereof, any deposit of securities in such State for the protection of policyholders, or impose any other requirements, provisions, restrictions, prohibitions, examinations or conditions greater than required for similar purposes from similar companies of other States by the then existing laws of this State, then and in every such case all companies of such States establishing or having heretofore established an 342 FIRE INSURANCE LAWS, TAXES AND FEES. agency or agencies in this State, shall be and are hereby required to make the same deposit and comply with such provisions, restrictions, prohibi- tions, examinations and conditions for like purpose in this State and pay to the Insurance Commissioner of this State the taxes, fines, penalties, license fees, or otherwise an amount equal to the amount of such charges and payments imposed by the laws of such State upon the companies of this State and the agents thereof." REINSURANCE — Authorized companies are not expressly prohibited from reinsuring in unlicensed companies, but no credit is allowed, in reserve or taxes, for such reinsurances. All reinsurances must be reported. In the form of "Agreement and Application for License" is included an agree- ment "not to reinsure any business written in the State of Oklahoma in a company not licensed to transact business in said State." REINSURANCE RESERVE— "One-half of the amount of all premiums on risks not terminated." RESIDENT AGENTS — "Foreign companies admitted to do business in this State shall make contracts of insurance upon lives,- property, or interests herein, only through lawfully constituted and licensed resident agents. Provided, this section shall not apply to direct insurance covering the roll- ing stock of railroad corporations, or property received for shipment from one State to another while in the possession or custody of railroad cor- porations or other common carriers." SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— New York Standard form of policy is legalized for use in Oklahoma in writing mercantile risks, if the words "Oklahoma Standard Policy" are printed on the back of each policy. All other forms to be used in Oklahoma must be approved by the Insurance Commissioner. A form of tornado policy adopted by the companies has been approved by the Commissioner. TAXES — Sec. 22. "Each and every foreign insurance company doing busi- ness in this State under the provisions of this Act shall, annually, on or before the last day of February, report under oath of the President or Secretary or other chief officer of such company to the Insurance Com- missioner, the total amount of gross premiums received in this State within the twelve months next preceding the first of January, or since the last return of such premiums were made by such company ; and shall, at the same time, pay to the Insurance Commissioner an entrance fee as pro- vided by Article XIX of the Constitution of the State of Oklahoma, and an annual tax of two per centum on all premiums collected in this State, after all cancellations and dividends to policy holders are deducted and an annual tax of three dollars on each local agent, and such other fees as may be paid to said Insurance Commissioner, which taxes shall be in lieu of all other taxes or fees and the taxes and fees of any subdivision or municipality of the State. Any company failing to make such returns and payments promptly and correctly shall forfeit and pay to the Insurance OKLAHOMA. 343 Commissioner, in addition to the amount of said taxes, the sum of five hundred dollars ; and the company so failing or neglecting for sixty days shall thereafter be debarred from transacting any business of insurance in this State, until said taxes and penalties are fully paid, and the Insurance Commissioner shall revoke the certificate of authority granted to the agent, or agents of that company to transact business in this State." See "Reci- procal Law." No credit is allowed for reinsurances in unauthorized com- panies. A tax of one-fourth of one per cent on gross premium receipts is levied to defray the expenses of the State Fire Marshal's office, payable in February to the Insurance Commissioner. TAX STATEMENTS — Must be filed with Insurance Commissioner on or be- fore last day of February, under penalty of $500. VALUED POLICY— Chapter 53, Laws of 1893, Sec. 3807. "Measure of In- demnit} — If there is no valuation in the policy, the measure of indemnity in an insurance against fire is the full amount stated in the policy, but the effect of a valuation in a policy of fire insurance is the same as in a pohcy of marine insarance." COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. The Attorney-General has ruled that occupation taxes levied by towns do not apply to foreign companies, but only to domestic companies.) CHICKASHA— For each agent, $5, payable January i. DAVIS— For each agent, $10. DUNCAN— For each agent, $10. KING FISHER— For each agent, $5.50. GUTHRIE— For each agent, $6, payable February i. IDABEI^-For each agent, $1 per month. MARIETTA— For each agent, $5, payable October i. OKLAHOAIA CITY— For each agent, $5. OKMULGEE— For each agent, $25, payable May i. PAUL'S VALLEY— For each agent, $5. SULPHUR— For each agent, $5. t-i . 1 t7»k WEATHERFORD— For each agency, $12 per annum, payable quarterly, Jr-eD- ruary i. May i, August i, and November i. WYNNEWOOD— For each agent, $5. OREGON.* STATE REQUIREMENTS. AGENTS DEFINED— The word "agent" is construed to apply to a person, firm or corporation. "Any person who solicits insurance, receives an appli- cation or order to write, renew or procure any policy, collect any premium, or who attempts, as middleman, to place any fire insurance in this State shall be deemed an insurance ayent, and shall comply with the provisions herein." AGENTS' LICENSES — Sec. 4639. "Every insurance company licensed to transact a fire insurance business in this State and lawfully doing such business therein, may, in respect thereof, establish agencies in this Stat^ to consist of but one agent for each city, town or village in the State to represent each title registered, as hereinbefore provided, and additional agencies as hereinafter provided, and the name of every agent appointed in accordance with the provisions of this section shall be filed with the Insur- ance Commissioner immediately upon the making of such appointment by any such company. The Insurance Commissioner shall thereupon issue to each such agent a certificate setting forth that such agent is entitled to act for the company appointing him for the balance of the current year ending December 31 following the date of such appointment. Every such agent now representing any such company, or who may hereafter be appointed to represent any such company, shall be relicensed during the month of De- cember in each year for the ensuing calendar year upon proper application to the Insurance Commissioner by the company appointing him. The fee fixed for issuing such certificate shall be $1.00 and shall be paid to the In- surance Commissioner; provided, that the certificate issued to an estab- lished agency of any company in any city, town or village in the State may be transferred by the Insurance Commissioner upon proper application of any such company, without exacting further fees." Sec. 4640: "Any insurance company or association may appoint additional agents in any city, town or village of this State by paying in advance to the county wherein such additional agent is appointed a quarterly license of $100 for every such additional agent so appointed, and the proper officer of the county, upon receiving payment for such license, shall issue his receipt therefor, and the Insurance Commissioner, upon presentation to him of such receipt by the licensee, shall issue to such licensee a certificate setting forth that such additional agent is entitled to act for the company appointing him. The application for the license, and the license, shall designate the name of the city, town or village for which he is appointed, and such agent must be a resident thereof and shall maintain his office there; provided, that in * Section numbers are from Bellinger and Cotton's Code. 1903. OREGON. 345 cities containing a population of 40,000 or more inhabitants, any insurance company or association may appoint two agents under the provisions of Sec. 4639." Penalty for acting without license, fine of not less than $500 for each offense, or imprisonment for not less than fifty days. ANNUAL STATEMENTS— Must be filed on or before March i, and must be sworn to by resident agent. Person making false sworn statement is guilty of perjury and may be imprisoned for from one to three years. Penalty for making false entries on books or papers, imprisonment for from one to three years. ANTI-COINSURANCE — No law prohibiting use of coinsurance clauses. ANTI-COMPACT — Act of February 24, 1909. Sec. 14, as amended in 1911. "If any company, corporation, association, or partnership, engaged in the business of casualty insurance, marine insurance, plate glass insurance, suretyship or fire insurance within the State of Oregon, shall enter into any compact or combination, or shall require or allow, with knowledge thereof, their agents, in Oregon, to enter into any such contract, trust, or combination with other insurance agents, or companies, or other agents or companies, for the purpose of governing or controlling the rates charged for casualty insurance, marine insurance, plate glass insurance, or surety bonds, or fire insurance within this State, or for the purpose of discrim- inating against any company or its agent by reason of its affiliation or non-affiliation with any board or association of casualty insurance com- panies, marine insurance companies, plate glass insurance companies, surety companies, or fire insurance companies, managers, or agents, or for any other purpose detrimental to the public good, the Insurance Commissioner shall forthwith revoke and cancel the license of such company or companies to transact or conduct that class of casualty insurance, marine insurance, plate glass insurance, surety or fire insurance business in this State, the rates for which were governed or controlled by such compact or combination, and such authority to do that class of casualty insurance, marine insurance, plate glass insur- ance, surety or fire insurance business in this State, shall be withheld for the term of one year; provided, that this section shall not prohibit any general agents in Oregon of such casualty insurance association or com- panies, marine insurance association or companies, plate glass insurance association or companies, surety association or companies, or fire insurance association or companies from establishing or maintaining bureaus, which bureaus shall be maintained only for the purpose of ascertaining fair and equitable rates upon the insurable property in Oregon, and for casualty insurance, marine insurance, plate glass insurance and surety bonds, and for any other purpose for the public good. In case such bureaus are main- tained, those agents or others, who shall be in charge thereof, shall, upon application, sell their rates, rules, and other information to any person who may desire to purchase them, and shall charge therefor only a reasonable and fair compensation." 346 FIRE INSURANCE LAWS, TAXES AND FEES. ANTI-REBATE — Policy must show the actual premium paid, together with a correct statement of the amount of risk covered, otherwise the insurance shall be decreased so that the company shall be liable to the insured for only such proportion of the expressed amount as the actual premium bears to the expressed premium. Penalty for violation, fine of not over $500 and revocation of license. ATTORNEY — Sec. 4634. "* * * Every foreign fire, fire and marine, marine, life, hfe and accident, plate glass, casualty, and steam boiler insur- ance company now doing business in this State, or that may hereafter do business in this State, shall within sixty (60) days after the passage of this act, and on or before renewal or issuing of a license, appoint a resident general agent on whom legal service, if any necessary may be made and to whom all other agents of the company in the State shall make repwrt, not less frequently than once a month, of business transacted." In case of disqualification, service may be made upon the Commissioner. CANCELLATION OF POLICY— No provision. CAPITAL REQUIRED — Company of another State must have an unimpaired cash capital of at least $200,000; domestic company, $100,000. Penalty for advertising capital greater than amount paid up, fine of $500. Marine company must have capital and surplus of $300,000. COMMISSIONS TO NON-RESIDENTS— No provision. DEPOSIT — Sec. 4617. "Every foreign corporation or company before en- gaging in the business of fire insurance, directly or indirectly, or assuming any such fire insurance risk within this State shall deposit with the Depart- ment of Insurance as follows: If its paid-up capital and unimpaired surplus aggregate $200,000 or more and it shall have a certificate of au- thority from the Insurance Commission of the State of New York to do business in the State of New York, $25,000, in the same manner as pro- vided for express companies above, or in case of companies foreign to the United States, a like certificate from the proper authority of any other State having an insurance department, showing authority to do business in said State, and a certificate showing a deposit by such company of not less than two hundred thousand dollars in cash or approved securities, for the security of the policyholders of such company in the United States, in some State having an insurance department; provided, that any such foreign fire insurance company having paid-up capital stock and unim- paired surplus in the amount of $200,000 or more, and have a certificate of authority from the Insurance Commission of the State of New York to do business in the State of New York, or having the certificates above provided for in case of companies foreign to the United States may, at its option, deposit with the Department of Insurance, instead of the amount required above, a corporate surety bond payable to the State of Oregon and conditioned upon the faithful performance of all contracts within this State, executed by an entered, or domestic surety company; such bond to be approved by the Insurance Commissioner, and shall be the OREGON. 347 same amount as above required to be deposited, said bond or deposit of $25,000 shall be accepted in lieu of the deposit of $50,000, wherever the same is now required by any section of the Statutes of Oregon. Provided, further, that a company having a paid-up capital stock of $200,000, or more, and not having a certificate of authority from the Commissioner of New York to do business in the State of New York, may deposit with the Department of Insurance $50,000, as provided for express companies above, and the Commissioner shall issue a license to said company, and said company shall comply with all the other laws of the State relating to insurance." The provisions referred to as relating to express com- panies are as follows: "Such deposit shall be made in interest-bearing bonds of the United States, or the bonds of the State of Oregon, or any municipal, school district, or county bonds issued by authority of law in the State of Oregon, the market value of which is at or above par or bonds or notes secured by first mortgage upon unincumbered real estate within the State of Oregon of the value of double the amount loaned thereon, or money of the United States, and shall be safely kept for the benefit and security of persons transacting business with such corporation or associations in this State for claims and demands arising out of said business, and shall be held and considered specially pledged for such se- curity for such claims and demands; provided, that any such corporation may change the character of its deposit at any time by depositing other securities of the kinds and description in this section authorized to be de- posited. All interest accruing from the United States or otherwise on such securities shall be paid, as the same may accrue, to the corporation or association to whom they belong, and the State of Oregon shall be held responsible for the safety of all deposits made under the provisions of this act. It is provided, however, that in lieu of the deposit hereinbefore re- quired any such foreign corporation or company may make an investment in real estate within the State of Oregon of the value of not less than one hundred thousand dollars ($100,000), provided such investment shall be approved by the State Treasurer. The title to said real estate shall remain in said express company and be unimpaired during all the times that the company is taking advantage of the provisions of this act. The corpora- tion shall pay taxes upon such real estate in the county where the same is situated, in the same manner and to the same extent as an individual, and the real estate shall be held liable therefor. When any corporation or as- sociation having made such deposit or investment in real estate shall desire to cease business in this State and withdraw its capital, it may do so by first giving six months' public notice of such intention by continuous pub- lication in three (3) weekly newspapers published in and of general cir- culation in the State, and if no claims shall be filed against such corpora- tion or association within said six months, the deposit may be withdrawn and the real property may be sold ; real estate held by any corporation or association under the provisions of this act may be sold at any time, pro- 348 FIRE INSURANCE LAWS, TAXES AND FEES. vided the corporation or association shall substitute other real estate there- for of the value herein prescribed." DOMESTIC COMPANIES— Sec. 4610. "Corporations may be formed under the general laws of the State for the transaction of insurance business, but no such corporation hereafter organized shall be permitted to assume any risk tmless the same shall have at least five directors, who shall be resi- dents and propertyowners in this State and stockholders in the corporation; nor until such corporation shall have a paid-up, unimpaired cash capital equal to $100,000 in United States gold coin, * * *." EXAMINATIONS — Sec. 4619. "The Insurance Commissioner is hereby authorized, and may upon the receipt of a written request, signed by three citizens of this State, or whenever from any cause he shall deem it neces- sary, to make a thorough examination of the books, accounts, securities and all property belonging to any company incorporated under the laws of this State, and if he does not find capital paid up to the amount of $50,000, or if he shall find the capital impaired, he shall give notice to such company to immediately repair its capital, and shall refuse or revoke his certificate of authority to such company to do business in this State ; and if any com- pany shall refuse to permit such examination, the Insurance Commissioner shall refuse or revoke his certificate of authoiity to such company." Penalty for continuing business after the certificate has been revoked, fine of $500 for each offense. Sec. 4623. "Upon written representation of three citizens, and the belief of the Commissioner that any company organized outside of this State, and doing an insurance business in this State, has less than $200,000 paid-up, unimpaired cash capital, it shall be the duty of the Com- missioner to make such investigation or require such proof as shall be satisfactory to him concerning the financial condition of the company ;" but the Commissioner shall accept the certificate of a company's home State Insurance Department that its capital is unimpaired. For examining the financial condition of any company or association organized in this State, the just and legitimate expense of such examination shall be paid by the said company, and the Commissioner shall revoke or refuse his certificate of authority to any company neglecting or refusing to pay such expense, or to furnish any information to said Commissioner authorized by this act. By a law of 191 1, the Insurance Commissioner is authorized to examine domestic companies as often as he deems it expedient, and at least once in three years, and is also authorized to investigate concerns promoting or holding the stock of insurance companies for the purpose of controlling the management thereof. FEES — Certificate to each agent, $1 ; annual license, $150; filing power of attor- ney, $5; issuing certificate of authority, $5; filing statement of mutual company, $10 ; filing title, $5 ; filing annual statement of Oregon business, $5; for certificate of authority to attorney of inter-insurers, $15; for certificate of deposit (to treasurer), $10; for custody of bonds (to treasurer), one-eighth of one per cent; for each additional agent OREGON. 349 beyond one in each city or village of less than 40,000 inhabitants, or be- yond two in cities of 40,000 or over, $100 quarterly to county treasurer ; for examinations, "just and legitimate expense." Except in cases indicated, fees are payable to Insurance Commissioner. FIRE DEPARTMENT TAX— No provision. FIRE MARSHAL — No provision for special investigation of fires. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— None re- quired. GENERAL PENALTY — Sec. 4642. "If any insurance company or asso- ciation, doing business in this State, shall violate any of the provisions of this act, the Insurance Commissioner shall forthwith revoke its license and those of its agents, and no renewal of the license or licenses shall be granted until after the expiration of one year from the final date of revocation." Sec. 4646. "Any officer, agent or employee of any insur- ance company, or other person, violating any of the provisions of this act, shall, on conviction thereof, be fined not less than $100 nor more than $500, and in default of payment of such fine shall be imprisoned in the county jail not less than ten days nor more than six months, except as other- wise specially provided in this act, and the Commissioner is authorized and directed to cause proceedings to be instituted in the name of the State of Oregon, in any court of competent jurisdiction, to enforce the provisions of this act." IMPAIRMENT— Any impairment of capital will be followed by revocation or refusal of license. INVESTMENTS PRESCRIBED— Sec. 4610. "Corporations may be formed under the general laws of this State for the transaction of insurance business, * * * such corporation shall have a paid-up unimpaired cash capital equal to $100,000 in United States Gold Coin, which shall be in- vested in this State by any such corporation now organized, or to be organized, in State or United States bonds, bonds or notes secured by first mortgage upon first-class, otherwise improved, unincumbered real estate, the market value of which shall be at least double the amount invested in or loaned thereon, bonds of any city, county or school district in this State, the issuance of which has been duly authorized by law ; provided, that such bonds or securities shall at no time be estimated as assets of such corporation at more than their actual cash value, and nothing in this act shall be construed to permit any investment in mining stock, pro- vided, however, such corporation shall not hold or convey real estate, excepting for the purposes and in the manner herein set forth, to wit; such as shall be necessary for its convenient accommodation in the trans- action of its business, or such as may have been conveyed or mortgaged to it in good faith by way of security for loans, or for debts or money due in its legitimate business, or such as have been purchased at sales upon judgments or mortgages obtained or made for such debts; and to the extent and for the purpose hereinbefore recited, such corporation is hereby 350 FIRE INSURANCE LAWS, TAXES AND FEES. authorized to hold, purchase, and convey real estate, and may invest a part of its capital therefor." Loans to stockholders will not be admitted as assets of a domestic company. LICENSED BROKERS — Sec. 4635. "Any person who solicits insurance, re- ceives an application or order to write, renew or procure any policy, collect any premium, or who attempts as middleman to place any fire insurance in this State, when such person holds no authority as agent from any insur- ance company or general agent of such company, shall be deemed an in- surance broker, and shall pay to the county where such business is con- ducted or attempted, in advance, a quarterly license of $15, and the sheriff of the county shall collect the same. If such broker shall refuse or neglect to procure such license, he shall be deemed guilty of a misdemeanor, and, upon conviction thereof, shall be fined not less than $100 nor more than $500 for each offense, and in default of payment of the fine shall be im- prisoned in the county jail not less than fifty days." LIMIT ON A SINGLE RISK— Domestic mutual companies, $1000 for first $300,000, $2000 when risks amount to $500,000, and $1000 for each addi- tional $500,000 of insurance in force thereafter. LLOYDS — Sec. 4645. "The provisions of this act under either term or desig- nation of company, corporation, association, firm or individual, in either case, or where either term or designation is used, shall apply to any insurer, company, corporation, association, firm or individual engaged as insurers, or who may hereafter engage as insurers in this State, or who may engage in offering or affording indemnity against the casualties of fire or life." All such are forbidden to transact insurance in Oregon without a license. In 1911 a law was enacted providing that the making of contracts between individuals, firms or corporations to provide indemnity among each other from fire loss or other damage to their own property, shall constitute the business of insurance, but shall not be subject to the insurance laws except as provided in the Act of 191 1. This provides for the filing of certain information and the securing annually of a certificate of authority by the attorney, agent or other representative who acts for those exchanging indemnity. MISCELLANEOUS — A company on entering the State shall register the title under which it proposes to do business ; but it may also register one addi- tional "title" and operate thereunder on making the regular deposit of $50,000 and securing a certificate of authority. No association, firm or in- dividual will be permitted to transact insurance business on terms more favorable than are prescribed for stock companies. Sec. 4669. "That every contract or policy of fire insurance to be made, issued, or offered to be issued, in this State shall contain, in addition to requirements now imposed by law, a true and cor- rect statement of the consideration or premium upon which the contract or policy is written, and shall likewise contain a true and correct statement of the risk of amount covered. If the assured does not pay, as premium or OREGON. 351 consideration, the amount expressed in the poHcy, then the insurance, or amount covered shall be decreased, so that the insurance company shall be liable to the assured for only such proportion of the expressed amount as the actual premium bears to the expressed premium ; provided, that this section shall not prohibit any insurance agent or broker from withhold- ing to his own use from premium expressed in the policy a reasonable commission or compensation for services rendered in writing for negotiat- ing said policy or contract of insurance. If any insurance company or agent shall write any contract or policy of fire insurance which shall not contain a true and correct statement of premium and risk as above pro- vided, such company or agent shall be liable to a fine of not less than one hundred dollars ($ioo) nor more than five hundred dollars ($500) ; such fine to be collected by an action instituted by the Insurance Commissioner. And in case such offending agent or company shall fail or neglect to pay the assessed fine within thirty days from the time it is regularly declared due and payable it shall be the duty of the Commissioner forthwith to revoke the license of the offending company or agent to do business in this State and to withhold the same for the period of one year. * * *" MUTUAL COAIPANIES — Sec. 4649. "Any number of persons, not less than fifty, may form an association or corporation for the purpose of mutual protection of its members against loss by fire.and any such asso- ciation or corporation that is conducted for the purpose of mutual pro- tection and relief of its members only and not for profit, shall be exempt from all other insurance laws of this State, and shall be granted power to make contracts for insurance with any person or corporation in the State of Oregon or elsewhere ; provided, that no policy or certificate of insurance shall be issued to any other than a member of such association or corpora- tion." Sec. 4650. "No mutual insurance company hereafter organized shall transact any business until it has received subscriptions for insurance in the sum of $300,000, divided among at least 300 subscribers; and the subscribers for such insurance must be residents of the State, and the property to be insured must be located in Oregon ; provided, that any foreign mutual insurance corporation may be admitted to do business in this State upon the same conditions and subject to the same restrictions as mutual insurance companies organized under the Laws of the State of Oregon, when it shall appear to the Insurance Commissioner of this State from a certificate of the Insurance Commissioner of the State in which such foreign mutual insurance corporation is organized, that such foreign mutual insurance company seeking to do business in this State has admis- sible cash assets of at least one hundred and fifty thousand dollars, shall have accumulated from its underwriting business and earnings, surplus admissible assets of not less than fifty thousand dollars, and at least five hundred members and $4,000,000 of insurance in force * * *." PRELIMINARY DOCUMENTS — Company must file with the Insurance Commissioner a certificate of the proper insurance officer of some State 352 FIRE INSURANCE LAWS, TAXES AND FEES. having an insurance depaitment, certifying that it possesses paid-up unim- paired cash capital of at least $2CX5,ooo, and is duly organized to do an in- surance business, also file copy of charter or articles of incorporation and register title under which it proposes to write fire insurance. See "Miscel- laneous." Certificate of compliance with laws of company's home State not required annually. Application for certificate and license. Insurance Department certificate of capital^ power of attorney and appointment of resident general agent, copy of charter or articles of incorporation, and applications for agents' certificates, are required but once, unless there is a change in the attorney or agents. PUBLICATION— Sec. 4634. "* * * Immediately upon filing this annual statement with the Insurance Commissioner, every fire, marine, fire and marine, * * * insurance company, * * * doing business in the State of Oregon, shall publish once each year in two newspapers of general circula- tion, and published in the State, west of the Cascade Range of Mountains, and in two newspapers of general circulation and published in the State, east of the Cascade Range of Mountains, a full synopsis of its general an- nual financial statement showing the conditions of its business and setting forth its resources and liabilities." RATING BUREAU — ^The laws of Oregon relating to insurance now provide against compacts or combinations by any companies, corporations, associa- tions or partnerships engaged in the business of fire insurance in the State, but permit the general agents of authorized companies in Oregon to main- tain and establish a Surveyor's Bureau for the purpose of ascertaining fair and equitable rates on the insurable property in Oregon. RECIPROCAL LAW— None. REINSURANCE — ^Admitted companies may reinsure, outside of the State, risks in the State, in companies not authorized to do business in the State. See "Resident Agents." REINSURANCE RESERVE — Forty per cent of gross premiums on all unex- pired risks. RESIDENT AGENTS— Sec. 4636. It shall be unlawful for any insurance company or association doing business in the State of Oregon to write, place, or cause to be written or placed, any policy or contract for indem- nity for insurance on property situated or located in the State of Oregon, except through or by the duly authorized agent or agents for such insur- ance company or association residing and doing business in this State. * * * " Rolling stock of raikoads and property in transit are excepted. Affidavits of executive officers that the provisions of this section have not been violated are required with annual statements. It is held that all policies, including reinsurance, issued on Oregon risks by admitted com- panies, must be written or placed through a resident agent. A resident agent and attorney for service, to furnish annual statement of Oregon busi- ness and to whom other agents in the State report, must be appointed SEMI-ANNUAL STATEMENTS— None required. OREGON. 353 STANDARD POLICY— A standard form of policy is prescribed by law. TAXES — Before April i, the Insurance Commissioner must mail statement of the amount of tax charged against a company to its general agent, which amount such company shall, within fifteen days thereafter, pay to the Insurance Commissioner at his office as a tax of two per cent upon its net premium. "Net premiums" are total gross premiums received less return premiums, losses paid in this State and premiums paid for reinsurance to domestic or entered companies of Oregon. Failure to make statement or pay tax is punishable by a fine of $io per day for each day's delay beyond the time specified. Commissioner may revoke company's license for such default. Real estate is taxable locally. TAX STATEMENTS— Must be filed on or before March i. See "Taxes." VALUED POLICY — Sec. 4626. "That the amount of insurance written in a policy of insurance on all buildings insured after the passage of this act shall be taken and deemed the true value of the property at the time of the loss, and the amount of the loss sustained, and shall be the measure of damage, unless the insurance was procured by the fraud of the insured, or the loss was caused by the criminal act of the insured. It shall be lawful for any insurance company liable to pay losses occasioned by fire to rebuild any structure or building, wholly or partially destroyed, of the same style and materials, and of equal value with the one so wholly or partially destroyed, but they shall make their election so to do within thirty days' notice of loss. In case there is a partial destruction of the property insured, no greater amount shall be collected than the damages sustained." COUNTY TAXES AND FEES. See "Agents' Licenses." MUNICIPAL TAXES AND FEES PORTLAND — For each company, $10 quarterly, payable January i, April i, July I and October i. ROSEBURG — For each company, $10 per annum, payable January i and July I. SALEM — For each company, $18 per annum. PENNSYLVANIA. STATE REQUIREflENTS. AGENTS DEFINED— Law of June i, 191 1, Sec. 14. " * * * Any person soliciting risks, forwarding premiums or countersigning or delivering poli- cies shall be deemed to be the agent of the company within the meaning of this section." Sec. 22. "A person not a duly licensed insurance broker who for compensation solicits insurance on behalf of any insurance com- pany, or transmits for a person other than himself an application for or a policy of insurance to or from such company, or ofifers or assumes to act in the negotiation of such insurance, shall be an insurance agent within the intent of this act, and shall thereby become liable to all the duties, require- ments, liabilities and penalties to which an agent of such company is sub- ject." AGENTS' LICENSES — 'Law of June i, 191 1, Sec. 14. "Companies to which certificates of authority are issued, as provided in the preceding section, shall, from time to time, certify to the Insurance Commissioner the names of agents who may be either individuals, partnerships, or corporations, appointed by them to solicit risks in this State ; and no such agent, either individual, partnership or corporation, shall transact business until he, they, or it has procured from the Commissioner a certificate, showing that the company has complied with the requirements of this act, and that the per- son, either individual, partnership or corporation named in said certificate, has been duly appointed its agent ; provided, that in case a license is issued to a partnership or corporation every officer and every soliciting employee of such partnership or corporation shall be required to have an individual license under said act of Assembly, and shall be subject to all penalties and other provisions of said act; provided further, as to corporations, this section shall not apply to any which are engaged in any business other than insurance and real estate." Licenses expire March 31, annually. Penalty for acting for unauthorized company, fine of $300 to $1000 for first offense, and a like fine and imprisonment not exceeding one year for second offense or either or both at option of court. Agent for unauthorized company is personally liable on all contracts. Companies certify names of agents to the Commissioner. ANNUAL STATEMENTS— Must be filed on or before March i, showing condition and business for year ending December 31 preceding. Penalty for non-compliance, $100 for each day's neglect, and suspension of license on notification by Commissioner. ANTI-COINSURANCE— No prohibition of use of coinsurance clauses ANTI COMPACT— No prohibition of co-operation. ANTI-REBATE— Law of 1909 (as amended). Sec. i. "No insurance com- PENNSYLVANIA. 355 pany organized under the laws of, or doing business in this Commonwealth, or any officer, agent, solicitor, or representative thereof, or any insurance broker, shall pay, allow or give, or offer to pay, allow or give, directly or indirectly, as inducement to insurance, nor shall any person knowingly receive, as such inducement to insurance, any rebate of premiums payable on the policy, or any special favor or advantage in the dividends or other benefits to accrue thereon, or any paid employment or contract for services of any kind, or any special advantage in date of policy or age of issue, not exceeding six months from the date of the application, or any valu- able consideration or inducement whatever, not specified in the policy contract of insurance, or give, sell or purchase, or offer to give, sell or purchase, as inducements to insurance or in connection therewith, any stock, bonds or other securities of such insurance company or other in- surance company, or any dividends or profits to accrue thereon, except as hereinafter provided. * * *." Sec. 2. "Any insurance company, its officers, solicitors or agents, any insurance broker, or any person violating the provision of this act shall be guilty of a misdemeanor, and, upon conviction thereof, the offender or offenders shall be sentenced to pay a fine of $500 on each and every violation, and shall also be disqualified from acting as an insurance agent or broker for the period of three years thereafter ; and the fine or fines shall be collected as fines are now by law collectible, one-half to be paid to the informer, and one-half to the county treasurer, for the benefit of the common school-fund in the county where the offense was committed." ATTORNEY — The Insurance Commissioner must be appointed attorney for service of legal process. CANCELLATION OF POLICY— No provision. CAPITAL REQUIRED — Company must have capital of at least $100,000 to transact either fire or inland marine insurance, or $200,000 to transact both classes of insurance, or $400,000 for fire, inland and ocean marine. Other State companies must have $200,000 capital or $400,000 to do fire, inland and ocean marine. COMMISSIONS TO NON-RESIDENTS— Commissions must be received by resident agents. DEPOSIT — A foreign company must have $200,000 on deposit in one of the United States, or $400,000 to do fire, inland and ocean marine business. DOMESTIC COMPANIES — Joint stock companies may be organized by ten or more citizens. A mutual company must incorporate the word "mutual" in its title. EXAMINATIONS — The Insurance Commissioner is vested with authority to examine domestic and foreign companies whenever he deems it necessary and expedient, and is also authorized to examine any corporation engaged in organizing or selling stocks of an insurance company or companies, or which is holding the stock of one or more insurance companies for the pur- pose of controlling the management thereof, and may suspend the certifi- 356 FIRE INSURANCE LAWS, TAXES AND FEES. cates of companies found to be in unsatisfactory condition. Domestic companies must be examined at least once in three years. FEES — For filing certified copy of charter (once only) , $25 ; for filing statement (annually), $20; for each certificate of authority to company or agent (of other than domestic company) and certified copy thereof, $2 annually (license required by each member of a firm) ; for each copy of any paper on file per folio, 20 cents ; for affixing official seal, $1 ; for each insurance broker's license, $10 for individual and $25 for firm or corporation, annu- ally; for license to deal with unauthorized companies $100, annually; for service of process $2, for any other certificate $2. Fees are payable to the Insurance Commissioner. Law of April 4, 1873, Sec. 7. " * * * 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 shall be annually assessed by the Commissioner, in just proportion, upon all the insurance companies doing business in this State, and the Commissioner is empowered to collect such assessments and pay the same into the State Treasury." See "Reciprocal Law." FIRE DEPARTMENT TAX— No provision. Fire patrol corporations are authorized to be organized in first-class cities, and a tax not to exceed two per cent of net premium receipts in such cities may be levied upon all organizations and agencies transacting fire insurance business therein. Statements and payments to be made semi-annually. Penalty for failure to make return within thirty days, $100 for each month of default. FIRE MARSHAL — Law of June 3, 191 1, provides for the establishment of a State Fire Marshal's department. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Not re- quired. IMPAIRMENT — ^Impairment of twenty per cent of capital or more must be made good within sixty days. INVESTMENTS PRESCRIBED— Law of June i, 191 1, Sec. 16. "The cap- ital of any fire or fire and marine insurance company of this Commonwealth shall be invested only as follows : First, in such real estate as it is authorized by this act to hold ; second, in bonds of the United States or District of Columbia or of any State or Territory of the United States or Canada ; third, in the legally authorized bonds or notes of any city, county, town- ship, municipality, school or water district of this Commonwealth, or of any other State or Territory of the United States or Canada ; fourth, in the bonds or notes of any solvent railroad or street railway corporation upon which no default in interest has been made ; fifth, in ground rents and loans upon improved and unincumbered real estate; provided, that no loan on such real estate shall exceed sixty-six and two-thirds per centum of the fair market value thereof at the time of making such loan." Sec. 17. "Anr money over and above the capital of any such insurance company may be invested in the securities above enumerated or in the stock or other evi- dence of indebtedness of any solvent dividend-paying corporation created PENNSYLVANIA. 357 under the laws of this Commonwealth, or of any other State of the United States, or loaned upon the pledge of the same except its own stock or the stock of any other insurance company transacting like classes of business ; provided, the current market value of such securities shall be at least twenty per centum more than the sum loaned thereon, but no such insurance company shall invest any of its funds in any unincorporated business or enterprise, nor in the stocks or evidence of indebtedness of any corporation, the owners or holders of which stock or evidence of indebtedness may in any event be or become liable on account thereof to any assessment except for taxes. Not more than one-fifth of its capital shall be invested in a single mortgage, nor shall any of its funds be loaned on personal security. If any investment or loan is made in a manner not authorized by this act the officers and directors making or authorizing the same shall be personally liable for any loss occasioned thereby." No domestic company shall purchase, hold or convey real estate except such as shall have been mortgaged to it in good faith, conveyed in satisfaction of debts, purchased at sales upon judgments, decrees or mortgages, etc., and any real estate so acquired which has been held for a period of more than five years from the date of purchase, receipt or acquisition, must be sold and disposed of within six months. Time may be extended by the Insurance Commissioner. A company may own real estate sufficient for the convenient accommodation of its business. LICENSED BROKERS— Law of June i, 191 1, Sec. 19. "An insur- ance broker is a person, not an officer or agent of the company interested, who for compensation, acts or aids in any manner in obtaining insurance for a person other than himself." Provision is made for licensing brokers, and brokers' licenses may be issued to firms or incorporated agencies. No person shall act as an insurance broker without having obtained a license, under a penalty of $300. Law of June i, 191 1, Sec. 27. "The Insurance Commissioner may issue a license revocable at any time permitting the person, firm or corporation named in such license to act as a broker to procure policies of fire or marine insurance from companies and associa- tions not authorized to do business in this Commonwealth. Before any fire or marine insurance shall be procured under or by virtue of said license, there shall be executed and filed with the Insurance Commissioner by the licensed broker and also by the party desiring the insurance, an affidavit which shall have force and effect for one year only from date thereof setting forth that the party desiring insurance is, after diligent effort, unable to procure the amount required to protect the property owned or controlled or entrusted to him from fire or marine insurance corporations —mutual insurance corporations or associations excepted— duly authorized to transact business in this Commonwealth. * * *." Sec. 28. "Each party receiving such license shall before transacting any business there- under execute and deliver to the Insurance Commissioner a bond in the penal sum of $1000, with such sureties as the Commissioner may approve, conditioned that said broker will faithfully comply with all requirements 358 FIRE INSURANCE LAWS, TAXES AND FEES. of the preceding section of this act and will pay to the Insurance Commis- sioner in January of each year a tax of three per centum upon the gross premiums named in the policies delivered to the policyholders and upon all policies procured by him in accordance with the preceding section during the year. Deductions shall be allowed for net premiums returned on ix>licies canceled. * * *." Penalty for dealing with unauthorized companies without a license, $300 to $1000 for the first offense, and for a subsequent offense, a like fine and not exceeding one year's imprisonment, or either, or both. See "Resident Agents." LIMIT ON A SINGLE RISK— None. LLOYDS— Law of February 4, 1870, Sec. i. "Be it enacted, etc.. That it shall be unlawful for any person, partnership, or association to issue, sign, seal or in any manner execute any policy of insurance, contract or guaranty against loss by fire or lightning, without authority expressly conferred by a charter of incorporation, given according to law; and every such policy, contract or guaranty hereafter made, executed or issued, shall be void." Sec. 2. "* * * Provided, that nothing herein contained shall apply to any insurance company authorized by the laws of any other State to issue policies and effect insurance against. loss by fire or lightning, which shall have complied with the laws of this Commonwealth with respect to foreign insurance companies." Penalty for violation, fine of not more than $200. The Supreme Court has held that a policy issued in contravention of this act is void. A Lloyds or inter-insurance association cannot legally be licensed in Pennsylvania. MISCELLANEOUS — Two or more joint stock fire insurance companies au- thorized to transact business in Pennsylvania may issue a combination policy. Under a law passed June i, 1911, the Insurance Commissioner is given authority to take charge of insolvent domestic insurance corpora- tions. MUTUAL COMPANIES — ^AU mutual companies are under supervision of the Insurance Department. See "Domestic Companies." A mutual com- pany of another State may be licensed to transact fire insurance when it possesses a net surplus over reinsurance reserve and all other liabilities of not less than $100,000. A mutual company writing inland and ocean marine insurance must have at least $250,000 surplus. PRELIMINARY DOCUMENTS— Company must file with the Commis- sioner a certified copy of its charter; verified statement showing its con- dition and affairs; copies of forms of all policies it proposes to issue in the State, and appointment of Insurance Commissioner as attorney. Pen- alty for doing business without a license, $500 for each month, and no certificate will be granted until such fine is paid. Foreign companies must file certified copy of charter and certificate of deposit. Certificate of compli- ance with laws of home State is not required annually. Copy of charter and certificate of deposit need be filed but once, but any amendment of charter must be filed. PENNSYLVANIA. 359 PUBLICATION — No publication of statements required. RECIPROCAL LAW— Law of June i, 1911, Sec. 30. "If, by the laws of any other State, any taxes, fines, penalties, licenses, fees, or other obligations or prohibitions additional to or in excess of those imposed by the laws of this Commonwealth upon insurance companies of other States and their agents, are imposed on insurance companies of this Commonwealth and their agents doing business in such State, like obligations and prohibitions shall be imposed uj>on all insurance companies of such -State doing business in this Commonwealth, so long as such laws remain in force." REINSURANCE— Law of May 8, 1899, Sec. 2. "No fire insurance com- pany 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 con- tract 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 reinsure excess loss by one or more fires. No fire insurance company or association shall reinsure or assume, as a reinsuring company or otherwise, in any manner or form whatsoever, the whole or any part of any risk or liability, covering property located in this State, of any insurance company or association not authorized to transact business in this State." Sec. 4. "Every fire insurance company or association shall annually, and at such other times as the Insurance Commissioner may re- quire, in addition to all returns now by law required of it or its agents or managers, make a return to the Insurance Commissioner, in such form and detail as may be prescribed by him, of all insurance or cessions of risk, or liability contracted for or affected by it, whether by issue of policy, entry on bordereau, 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 company by the oath of its managers in the United States, as to such reinsurance or cessions eflFected through 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, wherever located, as to reinsurance or cessions, as aforesaid, con- tracted for, or effected through, the foreign office. The refusal of any such company or association to make the returns herein required shall be pre- sumptive 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 im- posed by this act." Penalty for each wilful violation, $500; for non-pay- 360 FIRE INSURANCE LAWS, TAXES AND FEES. ment of fine within thirty days, revocation of license, to continue at least one year. REINSURANCE RESERVE— Law of June i, 1911, Sec. 7, provides that for fire insurance companies the Insurance Commissioner shall charge fifty per centum of the premiums received on all unexpired risks that have one year or less 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 insurance he shall charge fifty per cent on the premiums written on yearly risks and all the premiums received on all other marine and inland unexpired risks ; on perpetual business the deposits received, less a surrender charge of not exceeding ten per cent thereof, as a reinsurance reserve. RESIDENT AGENTS— Law of May 8, 1899, Sec. i. "No fire insurance com- pany or association not incorporated under the laws of this State, author- ized to do business herein, shall make, write or place, or cause to be made, written or placed, any policy or duplicate policy or contract 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 been ap- proved in writing by an agent who is a resident of this State, regularly commissioned and licensed, to transact insurance business herein, who shall countersign all policies and receive the commission thereon, when the pre- mium is paid. * * * " Railroad rolling stock and property in transit are excepted. A ruling of the Insurance Department is to the effect that it is unnecessary to have reinsurance policies written and countersigned by a resident agent, as the original policy has been so issued. Penalty, same as under "Reinsurance." SEMI-ANNUAL STATEMENTS— See "Tax Statements." Also "Fire De- partment Tax." STANDARD POLICY— A standard form of policy was prescribed, but the Supreme Court has declared the act bearing upon the matter unconstitu- tional. TAXES— Companies of other States and countries are taxed on gross pre- miums received in State, two per cent, allowing deductions for return premiums and reinsurance premiums, where the reinsurance is placed in companies authorized to transact business in Pennsylvania. Domestic companies pay eight mills on the dollar of gross premiums; ten per cent added for thirty days' delay in payment. Licensed brokers pay three per cent on gross premiums on risks placed with unauthorized companies. Penalty for neglect to pay tax, non-renewal of certificate until paid. Taxes must be paid into the State Treasury. TAX STATEMENTS— Must be filed semi-annually by July 31 and January 31, by domestic companies; by other companies, annually on or before March i. See "Reinsurance." Credit is given for reinsurance in author- ized companies. VALUED POLICY— No requirement. PENNSYLVANIA. 361 COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. Law of June i, 191 1. Sec. 29. "* * * It shall be unlawful for any city, county, or municipality to impose or collect any license- fee or tax upon insurance companies or their agents, or insurance brokers, authorized to tran- sact business under this act." PHILADELPHIA — Fire Insurance Patrol, one per cent of net premiums, payable semi-annually. PHILIPPINE ISLANDS. The publishers were advised by the Executive Secretary of the Govern- ment of the Philippine Islands that, under the laws of the Philippine Islands, insurance companies are not obliged to and do not file reports showing their business transactions. They are required to pay an internal revenue tax upon their business and the Bureau of Internal Revenue has access to the agents' books ; but upon application to the Collector of Internal Revenue, he raises the point that the information thus obtained is confidential and cannot, of course, be given out without the consent of the parties concerned. He further states that he has applied to various agents here and found in every case that they were unwilling that the information should be given out from Manila. There is a tax of one per cent on insurance premiums. No tax on rein- surance. Original writing company pays tax. "The Corporation Law" provides for the organization and supervision of corporations and contains a chapter relating to domestic insurance corporations, as follows : "Sec. 147. Corporations formed or organized to save any person or per- sons, or other corporation, harmless from loss, damage or liability arising from any unknown or future or contingent event, or to indemnify or to compensate any person or persons or other corporation for any such loss, damage, or liabil- ity, or to guarantee the contractual obligations or debts of others, shall be known as insurance corporations for the purposes of this Act. "Sec. 148. No insurance corporation shall be permitted to file articles of incorporation with the Chief of the Division of Archives, Patents, Copyrights and Trade-Marks of the Executive Bureau or to receive his certificate of in- corporation unless such articles show, under oath of the incorporators, that the capital stock of such corporation is not less than 500,000 pesos, that 50 per centum of the whole stock has been actually subscribed, and that 50 per centum of the subscription has been actually paid in cash into the treasury of the cor- poration. "The whole subscribed capital stock of any fire or fire and marine insur- ance corporation must be fully paid up in cash within one year after filing its articles of incorporation, and for a failure to have its subscribed capital stock paid up within the time prescribed the corporation shall not be permitted to take any new risks of any kind or character. "Any officer, official, or director of the corporation taking or authorizing the taking of any risk for the corporation in violation of the terms of this section shall be punished by imprisonment for not less than one year nor more than five years, and by a fine of not less than loco nor more than 5000 pesos. "Sec. 149. No insurance corporation shall loan any of its money or deposits except upon the security of unencumbered improved real estate in cities and PHILIPPINE ISLANDS. 363 centers of population of municipalities in the Philippine Islands, or on actually cultivated real estate in the Philippine Islands when the value of such real es- tate is at least loo per centum more than the amount to be loaned, or upon the security of first mortgages on real estate not otherwise encumbered transferred to it as collateral security when the value of the real estate described in the mortgage is loo per centum more than the amount of the mortgage with inter- est accrued, or upon bonds or other evidence of debt of the Government of the United States or of the Philippine Islands or of the city of Manila or of municipalities in the Philippine Islands authorized by law to issue bonds. Pro- vided however, that a life insurance corporation may loan its money upon the security of a policy to an amount not exceeding the cash value of the policy. "Sec. 150. No loan by any insurance corporation on the security of real estate shall be made unless the title to such real estate shall have been first reg- istered in accordance with the Land Registration Act. "Sec. 151. Insurance corporations may purchase, hold, own and convey real and personal property as follows : "(i) The lot with the building thereon in which the corporation conducts and carries on its business, which shall not exceed in value 100,000 pesos, or such additional sum as may be fixed by the affirmative vote of the stockholders rep- resenting two-thirds of the subscribed capital stock ; "(2) Such property, real and personal, as may have been mortgaged, pledged or conveyed to it in good faith in trust for its benefit by reason of money loaned by it in pursuance of the regular business of the corporation, and such real or personal property as may have been purchased by it at sales under pledges, mortgages or deeds of trust for its benefit on account of money loaned by it, and such real and personal property as may have been conveyed to it by borrow- ers in satisfaction and discharge of loans made by the corporation to them. Provided, however, that any real estate purchased by said corporation in pay- ment or by reason of any loan made by said corporation shall be sold by the corporation within five years after the title thereto has been vested in it ; "(3) Bonds and other evidences of debt of the Government of the United States or of the Philippine Islands, or of the City of Manila, or of any munici- pality in the Philippine Islands authorized by law to issue bonds, at the reasona- ble market value thereof, and such other securities as may be approved by the Secretary of Finance and Justice. "Sec. 152. No insurance corporation shall declare any dividend except from the profits of the transaction of the corporate business, and then only after retaining unimpaired the entire subscribed capital stock, a sum sufficient to pay all expenses incurred by the corporation, inclusive of taxes, and a sum suf- ficient to pay all losses reported or in the course of settlement. "Sec. 153. No fire or marine insurance corporation shall insure on any one risk to an amount more than one-tenth of its capital stock paid in and intact at the time of taking the risk without reinsuring the excess." A foreign corporation is required to obtain a license from the Chief of the Division of Archives, Patents, Copyrights and Trade-Marks of the Executive 364 FIRE INSURANCE LAWS, TAXES AND FEES. Bureau upon the order of the Secretary of Commerce and PoUce. No order for a Hcense shall be issued except upon the statement under oath of the man- aging agent of the corporation, showing, to the satisfaction of the Secretary, that the corporation is solvent and in sound financial condition, and setting forth the resources and liabilities of the corporation within sixty days of the date of presenting the statement. An attorney residing in the Philippine Islands must be authorized to accept service in legal proceedings, and in the absence of such attorney, service may be made upon the Secretary of Commerce and Police. The fee payable to the Chief of the Division of Archives, etc., for issuance of a license is 50 pesos. Acting for an unlicensed corporation is punishable by im- prisonment for not less than six months nor more than two years, or by a fine of not less than 200 pesos nor more than 1000 pesos, or both. A company found to be insolvent or in such condition that its continuance in business would in- volve probable loss to those transacting business with it, is liable to have its license revoked. In general, foreign corporations are bound by the laws and regulations applicable to domestic corporations' regulations of the same class, and must possess a capital actually paid up equal to the amount of paid-up capital required of domestic corporations. PORTO RICO. Foreign corporations are required to file certified copies of their charters, together with verified statements, certificates of consent to be sued, and appoint- ments of agents and written consent of agents, and to pay a tax of 15 cents on each $1000 of capitaHzation, but in no event to be less than $25, nor more than $500. The fee for recording the charter is 20 cents for each one hundred words. For filing and recording a certificate of consent to be sued and appoint- ment of agent, $5. For obtaining certificate of registration, $3. For filing certificates of increase or of decrease in capital stock, $5, in addition to the fee provided for the increase of stock. In addition, companies are required to pay to the Treasurer of Porto Rico an annual Hcense fee of $25, and they are required to pay an annual tax of one per cent on all property owned by them in Porto Rico. In addition to the foregoing, insurance conipanies pay an annual tax of three per cent of the gross amount of all premiums or dues collected in Porte Rico; also "a special stamp tax, to be paid by the affixture of internal revenue stamps, as follows: For each bond or obligation of the nature of indemnity for loss, damage or liability, * * * ; half of one cent on each $1 or frac- tional part thereof of the amount of premium charged, * * * ; for each policy of insurance or other instrument, by whatsoever name it may be called, by which insurance is made or renewed upon property of any description against peril by sea or by fire or lightning, or other peril, half of one cent on each $1 of the amount of premium charged." All corporations doing business in Porto Rico are required to file an annual report in the oflSce of the Secretary of Porto Rico at San Juan during the month of January, showing their condition up to the first day of January of each year. They are also required to file an annual report in the office of the Treasurer of Porto Rico during the month of January showing their finan- cial condition as of January i. In certain municipalities a tax or fee is imposed upon an insurance com- pany having its office there, or upon an agent for an insurance company. The laws of Porto Rico do not permit the formation of domestic insurance companies. MUNICIPAL TAXES AND FEES. SAN JUAN — A tax or fee is imposed upon both companies and agents. RHOD E IS LAND. STATE REQUIREMENTS. AGENTS DEFINED — Chap. 220, Sec. 10. "Every person who acts or aids in any manner in negotiating contracts of insurance or reinsurance, or plac- ing risks, or effecting insurance or reinsurance for any person other than himself, and receiving compensation therefor, and every person who shall so far represent any insurance company, established in any other State or coun- try, as to receive or transmit proposals for insurance, or to receive for deliv- ery policies founded on proposals forwarded from this State, or otherwise to procure insurance to be effected by such company for persons residing in this State, shall be deemed and taken to be acting as agent for and under- taking to make insurance as agent for and in behalf of such company, and shall be subject to the restrictions and liable to the penalties herein made applicable to agents of such companies." Chap. 39, Sec. 9. "Every person who acts or aids in any manner in negotiating contracts of insurance or re- insurance, or placing risks or effecting insurance or reinsurance, for any person other than himself, and receiving compensation therefor, in any insurance company not incorporated under the authority of this State, and who is accountable to any agent in this State of such insurance company for premiums received, shall be known and designated as a sub-agent. AGENTS' LICENSES — Chap. 220, Sec. 18. "No person shall act as agent of any insurance company until such company and such agent shall have com- plied with all the requirements of the laws of this State relating to such companies and their agents, nor until he has received from the Insurance Commissioner a license stating that such insurance company has complied with all the requirements of this State relating to the qualifications of such agents to do business in this State, which license shall contain the date of its issue, the name of the agent, the name of the company for which he is agent, the place of his business and his residence, and that said license will expire on the first day of April then next succeeding, unless revoked by the In- surance Commissioner. * * *" Penalty for violation, fine of $1000. Each agent must file a bond for at least $200 with the general treasurer. Agents of foreign companies in any town are not permitted to establish a branch office in any other town in the State. Applications for license should be filed by company or general agent by April i. Every agent of a fire insurance company must be licensed as a general agent. All em- ployees of an agency working on a commission basis are required to be licensed. ANNUAL STATEMENTS— Must be filed on or before the first day of Feb- ruary, showing condition as of December 31 preceding. Penalty for viola- tion, see "General Penalty." Penalty for refusing or neglecting to answer interrogatories concerning statement for thirty days, fine of $1000. RHODE ISLAND. 367 ANTI-COINSURANCE — No statute forbidding use of coinsurance clauses. ANTI-COMPACT— No prohibition of co-operation. ANTI-DISCRIMINATION— No provision. ATTORNEY — Insurance Commissioner must be appointed attorney to accept service of legal process. CANCELLATION OF POLICY— Provided for by standard policy. Five days' notice required. CAPITAL REQUIRED — Company must possess a paid-in capital of at least $100,000. CO^NIMISSIONS TO NON-RESIDENTS— No provision. See "Licensed Brokers." DEPOSIT REQUIRED — Companies of foreign countries are required to deposit $200,000 with Insurance Commissioner of Rhode Island or the proper officer of some other State, prior to admission, in securities which shall be, at all times, at or above par. (Chap. 220, Sec. 8.) DOMESTIC COMPANIES — The general requirements are same as for other companies. Provision is made for the optional establishment of guaranty surplus and special reserve funds. Premiums of domestic companies not taxed in other States are taxed two per cent in Rhode Island. EXAMINATIONS — Chap. 219, Sec. 2. "The Insurance Commissioner shall, whenever requested by the Governor, visit any insurance company incor- porated in this State, and shall have free access to its vaults and all its books and papers, and shall, if he deem it expedient, thoroughly inspect and ex- amine all the affairs of such company and make all such inquiries as may in his opinion be necessary to ascertain the condition of such company and its ability to fulfil all its engagements, and whether it has complied with the provisions of law applicable to its transactions." Sec. 3. "The Insur- ance Commissioner may summon and examine under oath all directors, officers and other agents of such insurance company, and such other wit- nesses as he may think proper in relation to the affairs, transaction and con- dition of the same, and any such director, officer, agent or other person who shall refuse without justifiable cause to appear and testify whenever there- unto required as aforesaid, or who shall in any way obstruct said Com- missioner in the discharge of his duties as prescribed in this chapter, shall be fined not exceeding $5000 or be imprisoned not exceeding two years, and in case the person so refusing or obstructing as aforesaid be a director, officer or agent of such company, such company may be proceeded against as hereinafter provided." Chap. 220, Sec. 23. "The Insurance Commis- sioner, either personally or by a committee appointed by him, consisting of one or more persons not directors, officers or agents of any life, fire, marine, or fire and marine insurance company, doing business in this State, may at any time examine into the affairs of any life, fire, marine, fire and marine, casualty or any other insurance company, incorporated by, or doing business in, this State. * * * All the expenses of an examination made under the provisions of this section shall be approved by and paid to the 368 FIRE INSURANCE LAWS, TAXES AND FEES. Commissioner by the company examined." Certificates of agents of insol- vent or fraudulent companies shall be revoked. FEES — For filing copy of its charter or deed of settlement, $30; for filing state- ment preliminary to admission, $20; for filing annual statement, $20; for general agent's (or firm's) certificate, $2; for each broker's license, $10; for each service of process, $2; for publication of advance abstracts, $1. For examinations, actual expenses incurred. See "Retaliatory Law." Fees are payable to the Insurance Commissioner. FIRE DEPARTMENT TAX— No provision. See "Retaliatory Law." FIRE MARSHAL — Provision for investigation of fires by local authorities. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— No provision. GENERAL PENALTY — Chap. 220^ Sec. 17. "If any insurance company, co- operative or otherwise, shall make insurance without complying with the provisions of this chapter, the contract shall be valid, but every person acting within this State as agent of such company within the meaning of Sec. 10 of this chapter, respecting the effecting of any insurance, shall be fined not less than $300, nor more than $1000." IMPAIRMENT— Chap. 220, Sec. 23. " * * * Whenever it shall appear to the Insurance Commissioner, from the statements, or from any examination of the affairs of any life, fire, marine, fire and marine, casualty, or other in- surance company, not incorporated under the authority of this State, that such company is insolvent, or is conducting its business fraudulently, or re- fuses or neglects to comply with the laws of the State relating to insurance companies, it shall be the duty of said Commissioner to revoke the certifi- cate of authority issued to the agent or agents of any such company * * *." INVESTMENTS PRESCRIBED— No provision. LICENSED BROKERS — Chap. 221, Laws 1909. "Whoever, for compensa- tion, acts or aids in any manner in negotiating contracts of insurance or reinsurance, or placing risks, or effecting insurance or reinsurance for a person other than himself, and not being the appointed agent or officer of the company, in which such insurance or reinsurance is effected, shall be deemed an insurance broker." Licenses are issued to brokers (including non-residents), which are renewable annually. LIMIT ON A SINGLE RISK— One-tenth of the amount of paid-in capital. LLOYDS — Chap. 220, Sec. 2. "The general provisions of law relating to the duties, obligations, prohibitions or penalties which appertain to insurance companies not incorporated under the authority of this State, and defining the powers and duties of the Insurance Commissioner in reference thereto, shall be and they are applicable to all corporations, companies and associa- tions, not incorporated under the authority of this State, and to all partner- ships and individuals doing, as principals or otherwise, in this State, any insurance business of any name, kind or description whatsoever." MISCELLANEOUS — If the charter, by-laws or contracts of any foreign com- pany contain a provision that no action shall be brought against the com- pany in any court of competent jurisdiction in Rhode Island, the licenses of RHODE ISLAND. 369 such company and its agents shall be revoked. There is a safety fund law somewhat similar to that of New York, which see. MUTUAL COMPANIES— See "Domestic Companies." Mutual companies may decline to receive premium notes, provided policyholders are made liable by the policy contract up to twenty times the cash premium paid. PRELIMINARY DOCUMENTS— Company must file with the Commis- sioner a certified copy of its charter, a verified statement showing the con- dition and affairs of the company, copy of examination by home State authorities, power of attorney appointing the Insurance Commissioner attorney to accept service of process and a certificate of the appointment of a general agent of the company for Rhode Island. Certificate of compli- ance with laws of home State required annually, with annual statement, or as soon as possible thereafter. PUBLICATION— Not required. REINSURANCE — No express prohibition of reinsurance in unauthorized companies, and the attorney-general construes the law as not forbidding such transactions. See "Resident Agents." REINSURANCE RESERVE— One-half of premiums received on policies having less than one year to run from the date of policy, and pro rata of those for longer terms. RESIDENT AGENTS— Chap. 220, Sec. 6. "Foreign companies admitted to do business in Rhode Island shall make contracts of insurance only through lawfully constituted and licensed resident agents." Penalty for violation, $100 to $500 for each offense. RETALIATORY LAW— Chap. 219, Sec. 23. "Whenever by the laws of any other State of the United States any fees, charges, taxes, deposits of money or of securities or other obligations or prohibitions are imposed on insur- ance companies incorporated or organized under the laws of this State, or on the agents of such insurance companies so long as such laws continue in force, the like fees, charges, taxes, deposits and obligations shall be im- • posed on all insurance companies doing business in this State which are incorporated or organized under the laws of such other State, and on their agents." SEMI-ANNUAL STATEMENTS— Not required. STANDARD POLICY— A standard form of policy similar to the New York form is required to be used, under penalty of $50 to $200; but any policy issued will be held to be valid as against the company issuing it. Under a law passed in 191 1, a company may, with the written approval of the Insurance Commissioner, vary the arrangement of the conditions and pro^ visions of the Standard policy. TAXES— A tax of two per cent is collected on the amount of gross premiums actually collected" during the calendar year, after deducting reinsurance and return premiums, except in cases where the reinsuring company is not admitted Reinsurance effected in unadmitted companies is not allowed to be deducted. Tax is payable to the general treasurer on first Monday 370 FIRE INSURANCE LAWS, TAXES AND FEES. in April by domestic companies, and during the month of January by the agents of companies of other States. See "Retaliatory Law." TAX STATEMENTS — Must be filed in January with the general treasurer. Penalty for failure to make return, or for filing false statement, fine not exceeding $1000; and suit shall be begun on delinquent agent's bond to recover tax. Statements are filed by agents. VALUED POLICY— No provision. COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. None. PROVIDENCE — Protective Department, ij4 per cent on premiums. SOUTH CAROLINA. STATE REQUIREMENTS. AGENTS DEFINED— Act of 1883, Sec. 6. "Any person who solicits insut- ance in behalf of any insurance company not organized under, or incor- porated by, the laws of this State, or who takes or transmits other than for himself any application for insurance or any policy of insurance to, or from, such company, or who advertises or otherwise gives notice that he will receive or transmit the same, or who shall receive or deliver a policy of insurance of any such company, or who shall examine and inspect any risk, or receive, collect or transmit any premium of insurance, or make or forward any diagram of any building or buildings, or do or perform any other act or thing in making, or the consummating of, any contract of in- surance for, or with, any such company, other than for himself, or who shall examine into and adjust, or aid in adjusting, any loss for, or in behalf of, any such insurance company, whether any such acts shall be done at the instance or request, or by the employment of, such insurance company, shall be held to be acting as the agent of the company for which this act is done or risk is taken." The Insurance Commissioner has ruled that under Sec. 1810, of the insurance laws, an agent who brokers a policy with another agent, is the agent of the company whose policy he delivers. AGENTS' LICENSES — E^ch agent must procure from the Insurance Com- missioner a license for which the charge is fifty cents. Each solicitor, if not a member of a firm, must have a license. Licenses expire March 31, annually. Penalty for acting as agent without a license, fine of not over $100, or imprisonment for not more than 30 days. ANNUAL STATEMENTS— Must be filed by March 31, showing condition as of December 31 preceding. Penalty for failure to file annual statement, revocation of authority. ANTI-COINSURANCE — No statute forbidding use of coinsurance clauses. ANTI-COMPACT — Law of March 7, 1899, Sec. i. "It shall be unlawful for any fire insurance company, association or partnership, doing a fire insur- ance business in this State, to enter into any combination or compact with other fire insurance companies, associations or partnerships, or to require or allow their agents to enter into any compact or combination with other insurance agents, companies, associations or partnerships for the purpose of governing or controlling the rates charged for fire insurance, charged on any property in this State; provided, that nothing herein shall prohibit one or more such companies from employing a common agent or agents to supervise and advise of defect of structures or suggest improvements to lessen fire hazards." Sec. 2 provides for filing affidavit on the first day of March of each year to the effect that neither company nor agents have 372 FIRE INSURANCE LAWS, TAXES AND FEES. entered a compact as forbidden in Sec. i. Any evasion, such as agreement upon one person, or a number of persons, to make rates for the agreeing parties, or the purchase of rate books, is deemed a violation. Penalty for violation, fine of $500 and revocation of license for three years. This law is modified by Sections 8, 9 and 1 1 of the law of February 24, 1904, which read as follows : Sec. 8. "That no insurance company shall be permitted to do business in this State, which shall be a member of any association, whose purpose is to establish, fix or maintain excessive or unreasonable rates or charges for insurance: Provided, however, that it shall be lawful for such insurance companies to be member of any association, the purpose and object of which is to secure the proper inspection of risks, the classification of risks, the maintenance of uniform and reasonable rates and the prevention of dis- crimination in charges between parties dealing with such insurance com- panies in this State. Sec. 9. That upon the complaint of one or more citizens of this State, that any insurance company is discriminating in rates between citizens of this State on risks similar in character, the Insurance Commissioner shall forthwith summon said company to appear before him, and if it shall be shown that said company has charged for any risk so complained of an amount in excess of the rates charged other persons on other risks of the same class, this discrimination in rates to the prejudice of any citizen of this State, the Insurance Commissioner shall order said company to make due correction in the rate immediately, refunding such excess as may have been charged, together with interest thereon from the date of its payment until the same is refunded to the citizen thus charged ; and if any such company shall fail to make this correction within thirty days after notice and the making of such order, the Insurance Commissioner, on proof thereof, shall revoke the license of the said company : Provided, that no rate on any fire insurance risk in this State shall exceed the rate on similar risks in adjoining States, nor shall any rate be charged or maintained on property in this State after a full hearing before the Insurance Commissioner, shall be shown to be greater than rates charged in adjoining States on risks of like character and similar circumstances. Nothing in this act contained shall prevent factory mutual insurance companies or associations from insuring, inspecting and adjusting factory property in this State. Sec. ir. All laws and parts of laws in conflict with this act are hereby repealed, and this act shall take effect and be of force from and after its passage and approval." ANTI-DISCRIMINATION— There is a law prohibiting discrimination in rates between risks of the same class. ATTORNEY — The Insurance Commissioner must be authorized to accept service of legal process. CANCELLATION OF POLICY— No provision. CAPITAL REQUIREEV— Company must possess at least $100,000 of surplus SOUTH CAROLINA. 373 or capital, or shall file a certificate that it has deposited with some State official securities worth $100,000, and shall deposit with the Insurance Commissioner of South Carolina securities worth $10,000, or a surety com- pany bond for that sum, in the discretion of the Insurance Commissioner. Penalty for violation, fine of $500 to $1000. COMMISSIONS TO NON-RESIDENTS— Commissions must be received by resident agents. DEPOSIT — Ins. Laws, Sec. 13. "Before licensing any insurance company to do business in this State, the Insurance Commissioner shall require each such company to deposit with him an approved bond or approved securities, in the discretion of the Commissioner, as follows: * * * each fire * * * insurance company, $10,000. * * * if a bond be given, it shall be con- ditioned to pay any judgment entered up against any such company in any court of competent jurisdiction in this State, and such judgment shall be a lien upon the bond or securities. In case a bond is given, the judg- ment creditor shall have the right to bring suit on said bond for satisfaction of the judgment in the county in which the judgment is received." See "Capital Required." DOMESTIC COMPANIES— Two or more persons may organize a corpora- tion after twenty per cent of capital is paid in, by filing articles of in- corporation with the Secretary of State and a copy of same with the register of the county in which located. EXAMINATIONS — Sec. 10. "* * * He (the Commissioner) shall have au- thority to examine into the conditions of any company doing business in this State, and shall have power to summon witnesses and take testimony as he may deem fit and proper for the protection of the public interests of the State. At least once in two years, and whenever he determines it to be prudent, he shall, personally or by deputy, visit each domestic com- pany and thoroughly inspect and examine its affairs, determine and fix the value of its assets and test and declare its ability to fulfill its obliga- tions and maintain its solvency according to proper standards. When he determines it to be prudent for the protection of the policyholders in this State, he shall in Hke manner visit and examine, or cause to be visited and examined by some competent person or persons whom he may appoint for that purpose, any foreign company applying for admission or already admitted to do business in this State, and such company shall pay the rea- sonable cost for such examination. FEES— Annual license fee, payable to the Insurance Commissioner on or be- fore March 31, $140 for company writing fire insurance, includmg marme and inland transportation, lightning and sprinkler damage; $115 for com- pany writing marine insurance exclusively, including inland transportation. FIRE DEPARTMENT TAX— Act of March 7, 1910, imposes a tax of one per cent on all premiums written in cities or towns having regularly organ- ized fire departments, with equipment valued at $1,000 or more, upon com- panies of other States or counties. Tax is payable within sixty days after 374 FIRE INSURANCE LAWS, TAXES AND FEES. December 31, yearly, to the Insurance Commissioner. Penalty for failure to pay tax revocation of license. FIRE MARSHAL — Investigation of fires is provided for. See "Taxes." FOREIGN COMPANIES' HOME OFFICE STATEMENTS— None re- quired. GENERAL PENALTY — For violation of insurance law, or disobedience of a lawful order of the Insurance Commissioner, fine of $100, or imprison- ment not exceeding 30 days. IMPAIRMENT — Sec. 11. "If the Commissioner is of opinion, upon exam- ination or other evidence, that a company is in an unsound condition, that it has failed to comply with the law or with the provisions of its charter, or that its condition is such as to render its proceedings hazardous to the public or to its policyholders, or that its funds, if it is a life insurance com- pany, are less than its liabilities, exclusive of its capital, or if its officers or agents refuse to submit to examination or to perform any legal obliga- tion relative thereto, he shall revoke, or suspend all certificates of author- ity granted to said company, its officers or agents, and shall cause notices thereof to be published in a newspaper of general circulation in this State, and no new business shall thereafter be done by its agents in this State while such default or disability continues, nor until its authority to do busi- ness is restored by the Commissioner." INVESTMENTS PRESCRIBED— See "Taxes." LICENSED BROKERS— No provision. LIMIT ON A SINGLE RISK— No provision. LLOYDS — Same conditions apply as those relating to corporations. MUTUAL COMPANIES— Sec. 18. "Any foreign mutual fire insurance com- pany maintaining no agents, writing no business except on property of its members and doing business without profit, may be admitted to do business in this State on the following terms : It shall file with the Insurance Com- missioner a satisfactory statement of its condition and such other informa- tion as he shall require; a copy of its charter and amendments thereto; certificate of compliance with the laws of its home State, and the appoint- ment of the Insurance Commissioner of South Carolina as its attorney to accept service. It shall pay an annual department license fee of twenty- five dollars and the additional license fee now provided by law on the actual cost of insurance." PRELIMINARY DOCUMENTS— Company must file with the Insurance Commissioner a certified copy of its charter, certified copy of resolution ap- pointing attorney, and a verified statement showing its financial condition ; foreign companies must also file certificate of deposit. Copy of charter and copy of certificate of compliance with home insurance laws need be filed but once. PUBLICATION— No requirement. RECIPROCAL LAW— None. REINSURANCE— Sec. 5 of the Law of Feb. 9, 1900 (Resident Agents) pro- SOUTH CAROLINA. 375 vides that "the provisions of this act shall not be construed so as to pre- vent any policy, duplicate policy, or contract for reinsurance from being written or placed in any fire insurance company or association which has no agent resident in this State." All reinsurances must be reported an- nually (or oftener, as required). Penalty for violation, fine of $500. Re- insurances of South Carolina risks by unauthorized companies in author- ized companies are not permitted. REINSURANCE RESERVE— No provision. RESIDENT AGENTS— Act approved Feb. 9, 1900, Sec. i. "No fire insur- ance company or association not incorporated under the laws of this State, authorized to transact business herein, shall make, write, place or cause to be made, written or placed, any policy, duplicate policy, or contract of in- surance 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 been approved in writing, by an agent who is a resident of this State, who shall countersign all policies so issued, and receive the commission 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 any property located in this State * * *." Railroad rolling stock and property in transit are excepted. Penalty for violation, $500 for each offense. SEMI-ANNUAL STATEMENTS— See "Tax Statements." STANDARD POLICY — The New York Standard form is required to be used. TAXES — Sec. 14. "In addition to the annual Hcense fees now provided by law, the Commissioner shall require each foreign company of any class and all like classes of business not incorporated under the laws of the State of South Carolina, except benevolent institutions operating under the Grand Lodge System, to pay semi-annually to the In- surance Commissioner, as an additional and graduated license fee for a license, to be delivered by him to such company or corporation, an amount equal to two per centum on the total premiums, i. e., total income or total receipts from this State, less any dividend credits thereon, as the case may be, with such company, as collected from citizens of, or residents in, this State, during the six months immediately preceding the 30th day of June and 31st day of December of each year. * * * Provided, That if the executive officer of the company shall file with the Insurance Commissioner a sworn statement, showing that at least one-fourth of the reserve on all policies issued in South Carolina are maintained in, and invested in any or all of the following securities, or property, to wit : bonds of this State, or of any county, city or town of this State, or first mortgage bonds on real esitate in this State, or first mortgage bonds of solvent domestic corpora- tions, where property is situate entirely within this State, or any property situate in this State and taxable therein; then the additional license fee shall be one and three-fourths per centum upon the receipts ; if the investment be one-half of said reserve, the additional license fee shall be one and one-half per centum; if the investment therein be three-fourths 376 FIRE INSURANCE LAWS, TAXES AND FEES. of said reserve, the additional license fee shall be one and one-fourth per centum, and if the entire reserve be so invested then the additional license fee shall be one per centum : Provided, further, that the one-half of the said additional license fee, under the terms of said section allotted to the counties, respectively, shall be and is hereby appropriated to ordinary county purposes, and no additional county tax or license fee shall be levied on such companies. At the close of the semi-iannual period, or as soon thereafter as possible, the Insurance Commissioner shall furnish the State Treasurer a statement showing the amount of gross premiums collected by each company in each of the several counties of the State, and the amount of additional license fees collected thereon ; and the State Treasurer shall pay unto the County Treasurer of each county one-half of the additional license fee collected, as aforesaid, on the gross premiums collected by each insurance company in that county. Provided that nothing in this Act or any other Act, shall be construed as preventing any municipality from levy- ing and collecting license fees or taxes in accordance with its ordinances." The tax levied by Sec. 14 is collected upon net premiums. There is a tax of one-tenth of one per cent upon gross premium receipts, for the mainte- nance of the work of investigating incendiary fires, this tax payable quar- terly to the Insurance Commissioner. See "Fire Department Tax." TAX STATEMENTS— Sec. 14. "* * * The returns of the premiums collected shall be made within thirty days after the 30th day of June and the 31st day of December, and if the returns are not so made, the Insurance Com- missioner may suspend the license of the company until such returns are made." VALUED POLICY— Law of Feb. 28, 1896, Sec. i. "That hereafter no fire insurance company or individuals writing fire insurance policies, doing busi- ness within this State, shall issue policies for more than the amount of the value of the property to be insured, the value of the prop- erty to be insured and the amount of insurance to be fixed by the insurer and insured, at or before the time of issuing said policies, and in case of total loss by fire, the insured shall be entitled to recover the full amount of insurance, and a proportionate amount in case of partial loss ; provided, two or more policies written upon the same property shall be deemed and held to be contributive insurance, and if the aggregate sum of all such insurance exceeds the insurable value of the property as agreed by the insurers and insured, in the event of a total or partial loss, each com- pany shall only be liable for its pro rata share of said insurance." After sixty day.'? the insurer is estopped from denying the truth of any statement in the application for insurance, except for fraud. This act does not apply to insurance on chattel or personal property or builders' risks. Penalty for violation, withdrawal of license for three years. COUNTY TAXES AND FEES. The amount of gross premiums collected in each county by each company SOUTH CAROLINA. 377 is reported by the Insurance Commissioner to the State Treasurer, and one-half of the tax collected on such premiums will be paid by the State Treasurer to the respective County Treasurers. MUNICIPAL TAXES AND FEES. ABBEVILLE — For each company, $5, payable November i. AIKEN — For each company having one agency, on $500 or less of premiums, $2.50 ; $500-$i200, $5 ; $i200-$2000, $7.50 ; $2000 and over, $10. Per day for other than those paying annual license, $2.50. Also tax of 10 mills, payable October 15 to March i. ALLENDALE— For each company, $2.50; for each agent, $2.50, payable No- vember I. ANDERSON — For each company, ten per cent on first $100 of premiums and one per cent on each additional $100 of premiums or majority fraction thereof ; for solicitor or special agent or adjuster thereof, unconnected with regular licensed local agency, or whose business does not pass through local agency, $50. BAMBERG — For each agent, $10, payable August i. BARNWELL— For each agency, $5, payable September 15. BATESBURG— For each company, $5, payable January i. BEAUFORT— For each company, $2, payable in January. BENNETTSVILLE— For each company, $5, payable by July i. BLACKSBURG— For each agent, $5, payable June i. CAMDEN— For each company, $50, payable May i. CHARLESTON— On premium receipts: $1000, $50; $2000, $100; $3CXX), $150; $10 for each additional $1000 or fractional part, payable in January; also at real estate tax rate on premiums, payable in January, April, July and October. Marine companies pay $50; $75 ; $100, and, $5 respectively, on each $1000 of premium receipts, or fractional part. CHERAW— For each agent, $5, payable April i. CHESTER— For each company, $10, payable November i ; also 10 mills on $1 of premiums, payable by December 31. COLUMBIA- On premiums: $1000, $30; for each additional $100 or frac- tion $1 50 payable on or before February 15 ; also 18 mills on gross premiums, payable December 31 ; for each solicitor unconnected with regu- lar licensed local agency of company, or whose busmess does not pass through said local agent, $30; for each transient solicitor or agent, $20 per week. CONWAY— For each company, $10, payable October i. DARLINGTON— For each company, $10; payable January 15. DILLON— For each company, $10; for each agent, $3, payable September i. DUE WEST— For each agent, $3. EASLEY— For each company, $5; for each agent, for each company repre- sented, $5, payable April i. 1,1 T 1 .. EDGEFIELD-For each agent, $3; for each company, $2.50,, payable July 15. 378 FIRE INSURANCE LAWS, TAXES AND FEES. FLORENCE — For each agent, $5 for one company, and $2.50 for each addi- tional company, payable June 10. FORT MILL — For each company, $2.50, payable January i. GAFFNEY — For each company or agent, $25. GEORGETOWN — For each company, $10 for first $1000 or less of premiums, and $5 for each additional $1000 or fractional part; for each agency, $10, payable by April i. GREENVILLE — For each company, $30 for $500 or less of premiums ; $35 for $500 to $1000; $40 for $1000 to $1500; $45 for over $1500, payable January i. GREENWOOD— For each company, $5. GREER — For each company, $5, minimum, $300 to $500 of premiums, $10; $500 to $1000, $15 ; over $1000, $20. JOHNSTON — For each agency, $5, payable January i. KERSHAW — For each company or agent, $12.50, payable February i. LANCASTER — For each company, $10, payable January i. LAURENS — For each agent, $5, due January i ; also tax of eighty cents per $100 on premiums, payable in February. LEXINGTON — For each company or agent, $2.50. MANNING — For each company, $10 per annum, payable January 15, and i per cent on premiums, payable November 15. MARION — For each agency, $15, payable April 30; for each company, one- half of one per cent on gross premiums, payable October 15. MAYESVILLE— For each agent, $5, payable January i. MULLINS — For each company, $2.50, payable August i. NEWBERRY — For each company, $10, payable January i ; also ioj4 mills on gross premiums, due October 15. NINETY-SIX — For each company, $5, payable June i. ORANGEBURG— For each company, $15. PENDLETON — For each agent, $5, payable January i. ROCK HILL — For each company, $10, payable February 15. SENECA — For each company, $5 ; for each agent, $5, payable May i. SPARTANBURG — For each company, $30, payable October 21. ST. GEORGE— For each company, $5. ST. MATTHEWS— For each company, $5, payable October i. SUMMERVILLE — For each company, $10, payable June i. SUMTER— For each company, $25 ; for each agent or broker for each com- pany to which he sends business, $20, unless company pays a license fee ; payable January i. TIMMONSVILLE — For each company, $10; payable January i. UNION — For each company, $15, payable in May. WALHALLA — For each company, $5, payable February i. WALTERBORO— For each company, $25, payable annually November i. WESTMINSTER— For each company, $5, payable annually May i. WINNSBORO — For each company, $5, payable July i. YORKVILLE — For each company, $10, due November 15. SOUTH DAKOTA. STATE REQUIREMENTS. AGENTS DEFINED— No statutory definition. AGENTS' LICENSES — Agents must procure licenses, which expire March i, and must be renewed annually after approval of company's statement. Each member of an agency firm must have a license. One license only is required for an agency corporation. Penalty for acting as agent with- out license, $500 for each offense. Penalty for representing an unauthor- ized company, fine not exceeding $100 or two months' imprisonment, or both, for each offense. ANNUAL STATEMENTS— Must be filed on January i, or within two months thereafter, showing condition and business for year ending on preceding December 31. Penalty for neglecting to file statement, suspension of busi- ness on notification by Commissioner, and $100 for each week's delay. ANTI-COINSURANCE — Coinsurance by a reduced rate average clause is in- cluded among clauses which are permitted to be used in connection with the Standard Policy, on request. Application, signed by applicant, and clause, signed by agent, to be attached to policy. ANTI-COMPACT — Law of 1903. "Sec. i. Any combination, agreement, confederation, compact or understanding made and entered into either directly or indirectly by or between two or more fire insurance companies insuring property against loss or damage by fire and loss or damage from the elements, transacting business within this State, or between officers, agents or employees of any such companies relating to the rates to be charged for insurance, regulating and fixing the minimum price or premium to be paid for insuring property located within this State, the amount of commission to be allowed agents for procuring insurance or the manner of transacting the business of fire or other casualty insurance within this State, is hereby declared to be unlawful and any such company, officer or agent violating this provision shall be deemed guilty of a misdemeanor and on conviction thereof in any court having jurisdiction shall pay a penalty of not less than $100 nor more than $500 for each offense, to be recovered for the use of the general fund of the State, and any such company, cor- poration or association so offending shall not be permitted to transact business within this State." Affidavit of compliance required annually on or before July i. ANTI-DISCRIMINATION— No provision. ATTORNEY — The Commissioner of Insurance must be named as attorney to accept service of legal process. CANCELLATION OF POLICY — Five days' notice of cancellation must be given by the company. Company may retain short rates, when policy is 380 FIRE INSURANCE LAWS. TAXES AND FEES. canceled by insured, in accordance with table adopted by the Minnesota and Dakota Fire Underwriters' Union ; if canceled by company, the latter may retain only pro rata earned premium. CAPITAL REQUIRED— Of other State companies, at least $100,000; of domestic companies, at least $100,000. COMMISSIONS TO NON-RESIDENTS— No provision. DEPOSIT — None required of outside companies; domestic stock companies must deposit 50 per cent of capital with the Commissioner of Insurance. DOMESTIC COMPANIES— Insurance Laws, Sec. 578. "Any number of persons, not less than seven, may associate, form and incorporate a company for the following purposes, to wit : To make insurance upon dwelling houses, stores, and all kinds of buildings, and upon household furniture and other property, against loss or damage by fire, lightning, cyclone, tornado or hail, and the risks of inland navigation and transporta- tion. Any and all insurance companies incorporated under the provisions of this act which shall, in a declaration and charter provided to be filed, have expressed an intention to make insurance against loss or damage by the risks of inland navigation or transportation shall have power to make in- surance upon vessels, boats, cargoes, goods, merchandise, freights and other property, against loss or damage by all or any of the risks of lake, river, canal and inland navigation and transportation." Each director must own $500 of stock. See "Deposit." EXAMINATIONS— Insurance Laws, Sec. 603. "It shall be the duty of the State Commissioner of Insurance whenever he shall deem it expedient to do so, m person or by one or more persons appointed by him for that purpose, not officers or agents of, or in any manner interested in, any insurance com- pany doing business in this State, except as policyholders, to examine into the affairs of any company incorporated under any law of this State, or companies of other States or Territories, or any foreign companies doing business by their agents in this State ; it shall be the duty of the officers or agents of any such company doing business in this State to cause their books to be opened for inspection of the Commissioner or persons so appointed, and to otherwise facilitate such examination so far as it may be in their power to do, and pay all reasonable expenses in- curred therein, in no case to exceed $10 per diem. And for that purpose the said Commissioner, or person or persons appointed by him, shall have the power to examine under oath, the officers and agents of any such company, relative to the business of said company. And whenever the said Commissioner of Insurance shall deem it for the best interests of the public so to do he shall publish the result of such investigation in two newspapers in this State." Penalty for making false statement, revocation of license. License of company found to be in unsound condition shall be revoked. FEES— For filing declaration or certified copy of charter, $25; for filing annual statement, $25 ; for each certificate of authority, $2 ; certificate for SOUTH DAKOTA. 381 agent of domestic company, $2; copies of papers on file, 20 cents per folio; affixing seal, $1 ; for examinations, actual expenses incurred, not to exceed $io per diem; for service of legal process, $2. See "Reciprocal Law." Fees are payable to Commissioner of Insurance, and are turned into the insurance fund in the State Treasury. FIRE DEPARTMENT TAX— State pays two and one-half per cent for for- eign companies and one per cent for domestic companies and foreign mutual companies on all premiums received in cities and towns having duly organized fire departments to the town treasurers for the support of the Fire Departments. See "Taxes." FIRE MARSHAL — Provision is made for investigation of fires by the Insur- ance Commissioner and his assistant. See "Taxes." FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Insurance Laws, Sec. 593. "* * * foreign insurance companies shall trjinsmit their statements of business other than that taken in the United States prior to the following first day of May" (covering preceding calendar year). GENERAL PENALTY — Penalty for any violation of provisions of Chap. 69, Laws of 1885, $500, and $100 additional for each month's delay in filing such affidavits and statements as are required of agents. IMPAIRMENT— Insurance Laws, Sec. 599. "* * * No agent shall be allowed to transact business for any such company whose capital is impaired to the extent of twenty per cent thereof while such deficiency con- tinues." Sec. 604. "And whenever it shall appear to said Commissioner of Insurance from such examination, that the condition of any such com- pany incorporated in this State is not such as to justify the continuance in business of any such company, he may direct the officers thereof to require the stockholders to pay in the amount of such deficiency within such a period as he may designate in such requisition, or he shall communicate the fact to the State's Attorney, whose duty it shall be to apply to the circuit court of the county in which the principal office of the company shall be located, for an order requiring them to show cause why the business of such company shall not be closed." Impaired companies may reduce their capital to an amount not less than the minimum required by law. License of company in unsound condition must be revoked. INVESTMENTS PRESCRIBED— Sect. 583. "* * * Twenty per cent of the first one hundred thousand dollars of capital stock and ten per cent of any amount in excess of one hundred thousand dollars for which said com- pany may be capitalized must be cash on hand, the remaining amount of said capital must be invested in United States bonds. State, municipal or school bonds, or loans upon unincumbered real property worth at least double the amount loaned thereon; fifty per cent of such loans shall be on South Dakota real estate. The said investments or loans shall be submitted to the governor. State treasurer and auditor of this State for their ap- proval, and if approved, an amount equal to fifty per cent of the entire 382 FIRE INSURANCE LAWS. TAXES AND FEES. capital shall be deposited with the Commissioner of Insurance for the State of South Dakota." Sec. 586. "It shall not be lawful for any insurance company organized under the laws of this State to invest its capital and the funds accumulated in the course of its business, or any part thereof, except in bonds or mortgages on unincumbered real estate worth double the sum loaned thereon, exclusive of buildings, unless such buildings are insured and the policies transferred to the company, at least (50 per cent) fifty per cent of such loans must be on South Dakota real estate, and also such real estate as shall be requisite for its convenient accommodation in the transaction of its business, and also in the bonds of the State, or stocks or treasury notes of the United States ; and also the bank stock of national banks, and also in the stock and bonds of any county or incorporated city in the State authorized to be issued by the legislature, or in such other securities as may be approved by the Commissioner of Insurance, and such company shall be authorized to loan the same or any part thereof on the security of such stocks, or bonds, or treasury notes, or upon bonds or mortgages or securities as aforesaid and to change and reinvest the same in like securities as occasion may from time to time require ; but the surplus money over and above the capital stock of such insurance company, incor- porated under any law of this State, may be invested in or loaned upon the pledge of public stocks or bonds of the United States, or of any of the States, stocks, bonds or other evidences of indebtedness of any solvent dividend-paying institution, incorporated under the laws of this State or the United States, except their own stock, provided, always, that the market value of such stocks, bonds or evidence of indebtedness shall be, at all times during the continuance of such loan, at least ten per cent more than the amount loaned thereon." No domestic company may pur- chase or hold real estate other than that required for the convenient accom- modation of its business, except that acquired in satisfaction for debts legally contracted. LICENSED BROKERS— No provision. LIMIT ON A SINGLE RISK— Ten per cent of paid-up capital, net. LLOYDS — No provision. MISCELLANEOUS— Political Code, Chap. 210, Laws 1909, Sec. 14, as amended in 191 1. "It shall be unlawful for any person, company or cor- poration in this State, either to procure, receive or forward applications for insurance in or to issue or deliver policies in any company or companies not having been legally authorized to do business in this State, and any person, company, or corporation violating the provisions of this act shall be deemed guilty of a misdemeanor and upon conviction thereof shall for each and every offense be punished by a fine not to exceed $100 or imprisonment for not to exceed thirty days in the county jail or both such fine and imprisonment. And any person, firm or corporation, who shall have solicited and placed insurance in any insurance company not author- ized to do business in this State, shall, in the event of the failure of such SOUTH DAKOTA. 383 company to pay any loss or claim under the policy so issued, be liable to the insured for the amount thereof to the extent that such company would have been liable had it been authorized to do business in this State." A law passed in 191 1 provides that every fire insurance company doing busi- ness in the State, which fails to pay any loss incurred within sixty days after proofs of loss have been filed, shall be liable to a penalty of ten per cent in excess of the actual amount of loss. MUTUAL COMPANIES— Provision is made for the organization of State, county and township mutual insurance companies. A State mutual may be incorporated by twenty-five residents collectively owning $50,000 of personal property and $50,000 of real estate; a county mutual may be formed by twenty-five residents of five adjoining counties, collectively owning $25,000 worth of property; and a township mutual may be incor- porated by twenty-five residents of not exceeding twenty-five adjoining townships, who collectively own $25,000 worth of property. A company must have subscriptions for 200 separate risks aggregating at least $200,- 000 before beginning business. Church, mutual fire and tornado insurance companies are not required to be licensed by or report to the Insurance Commissioner. PRELIMINARY DOCUMENTS— Company must file with the Commis- sioner of Insurance a copy of its charter and by-laws, an anti-compact af- fidavit, copy of a recent examination, copy of appointment of resident agent, and a statement showing its financial condition. PUBLICATION— Statement must be published at least three times in a news- paper printed and published in each judicial district in which the company shall have policies issued, and proof of publication filed with the commis- sioner. Statements for publication to be made on blanks furnished by the Commissioner of Insurance. The legal cost of such publication is fixed at legal rate ($1.75 per square). Length of statement 10 inches, set in non- pareil type, cost $7.50. Affidavit of publication must specify that the amount charged for such publication inures to the benefit of the pub- lisher solely. RECIPROCALLAW— Sec. 671. "When by the laws of any State or Terri- tory any taxes, fines, penalties, licenses, fees, deposits of moneys or se- curities, or capital requirements, or other obligations, or prohibitions are imposed or would be imposed on insurance companies of this State doing, or that might seek to do, business in such State or Territory, or upon their agents therein, so long as such laws continue in force, the same obligations and prohibitions, of whatever kind, shall be imposed upon all insurance companies of such State or Territory doing business withm this State or upon their agents here." REINSURANCE— No prohibition of reinsurance in unauthorized companies. REINSURANCE RESERVE— Domestic stock companies are required to maintain a reserve of 40 per cent of all premiums in force, and domestic 384 FIRE INSURANCE LAWS, TAXES AND FEES. mutual companies a reserve of 25 per cent of annual premiums and 50 per cent of the pro rata on those running more than one year. RESIDENT AGENTS— Insurance Laws, Sec. 667. "No corporation trans- acting the business of fire insurance in this State, nor incorporated under the laws of this State, shall write or cause to be written any policy of insurance on property located in this State, except through a duly author- ized agent of such corporation who shall reside within the State and who shall be licensed by the Commissioner of Insurance according to law." SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— A new standard form of policy was adopted by the legislature in 1909, following in general the New York standard form. Penalty for violation of law, $50 to $100 for first offense, and $150 to $300 for each subsequent offense. The Attorney-General rules that a tor- nado insurance rider may not be attached to the standard fire insurance policy. TAXES — Insurance Laws, Sec. 675. "Every fire insurance company doing business in this State except companies organized under the laws of this State, and foreign mutual companies, shall, at the time of making the annual statement, pay into the State Treasury as taxes two and one-half per cent of the gross amount of premiums received in this State during the pre- ceding year, taking duplicate receipts therefor, one of which shall be filed with the Commissioner of Insurance, and upon the filing of such receipt, and not until then, shall the Commissioner of Insurance issue the annual cer- tificate as provided by law, and the said sum of two and one-half per cent shall be in full of all such taxes from such insurance company. Provided, that all companies organized under the laws of this State and all foreign mutual companies transacting business therein, shall, at the time of mak- ing the annual statement, pay into the State Treasury as such taxes one per cent of the gross amount of premiums received in this State during the preceding year upon policies issued on property in any city, town or village having an organized fire department as provided in Art. 5, Chap. 16, Political Code of 1903. Provided that nothing herein contained shall be construed so as to exempt the corporate stock or property within this State of any fire insurance company from the provisions of the general revenue laws of the State now in force." No deductions from gross premiums are allowed for amounts paid to unauthorized companies for reinsurance in reporting premiums for taxation. The Fire Marshal Law of 1907, Sec. 8, provides that each fire insurance company shall annually, on January i, pay to the Insurance Commissioner, "in addition to the taxes now required by law to be paid by such companies, one-half of one per cent of the gross premium receipts of such companies on all business done in South Dakota the year next preceding." TAX STATEMENTS — Included in annual statements. Must be filed by March i. VALUED POLICY— Law of 1903. "Whenever any policy of insurance shall SOUTH DAKOTA. 385 be written to insure any real property in this State including structures on land owned by another than the insured, against loss by fire, tornado or lightning, and that property insured shall be wholly destroyed without criminal fault on the part of the insured or his assigns, the amount of the insurance within such policy shall be taken conclusively to be the true value of the property insured, and the true amount of loss and measure of damages." COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. None. TENNESSEE. STATE REQUIREMENTS. AGENTS DEFINED— Laws of 1907, Chap. 442. "That any person who shall solicit an application for insurance shall, in all matters relating to such application, and the policy issued in consequence thereof, be regarded as an agent of the company issuing the policy and not the agent of the in- sured, and all provisions in the application and policy to the contrary are void and of no effect whatever. Provided, this act shall not apply to licensed fire insurance brokers." AGENTS' LICENSES— Chap. 160, Sec. 31, Acts of 1895. "That it shall not be lawful for any person or persons to act as agent or solicit risks, or in any way, directly or indirectly, to transact the business of insurance for, and in behalf of, any company, whether organized under, and incorporated by the laws of this State or not, without obtaining a certificate of authority from the Insurance Commissioner of the State so to do, which certificate shall state that said company has fully complied with all the requirements of this act applicable to such company." Licenses expire December 31, and must be renewed annually. Agents are personally liable for risks placed in un- authorized companies. Penalties for violation, fine of $50 to $100. Pen- alty for acting for unauthorized company, fine of $100 to $200, or imprison- ment for not over thirty days, or both. Each member of a firm must have a license, as must also each solicitor, for each company represented. Every corporation which acts as an insurance agent must be licensed for each company it represents, and also each of its solicitors. Applications for license not required to be made by company officials, under seal. ANNUAL STATEMENTS— Must be filed on or before February i, covering the preceding year ending December 31. For good cause the time may be extended to March i. Penalty for neglect to file statement, $100 for each day, and license may be suspended, upon notice, during default. Penalty for wilfully making false statement, $500 to $1000 ; and person making oath to such statement is guilty of perjury. A statement concerning capital, etc., must be filed annually, on or before July i, with the Secretary of State. ANTI-COINSURANCE— Chapter 447, Acts of 1909. Sec. i. "All cor- porations, firms or individuals doing a fire insurance business in this State shall, with respect to policies issued from and after the passage of this Act on buildings or property in this State, other than stocks of goods and merchandise and other species of personal property changing in specific and quantity by the usual custom of trade, be bound to pay the full amount of the policy in the event of a total loss of such buildings or property; and provided further, that the provisions of this section shall not be applicable to policies containing a TENNESSEE. 387 co-insurance clause as authorized hereinafter; and provided further, that the insurer shall have the right to stipulate in the policy the insurable value of the property insured and that any policy containing such stipu- lation shall be avoided if at the time of the loss the whole amount of in- surance on such property shall be in excess of such stipulated insurable value." Sec. 2. "It shall be lawful for corporations, firms or individuals doing a fire insurance business in the State to contract with the assured, in respect of insurance on stocks of goods and merchandise and other species of personal property changing in specifics and quantity by the usual custom of trade, that in the event of loss the insurer shall not be liable for an amount greater than three-fourths of the actual cash value of the property covered by each item of the policy at the time of such loss, and that in the case of other insurance, and whether the policies are concurrent or not, the insurer shall be liable only for its pro rata proportion of such three- fourths value, and in no event for an amount greater than the sum insured by the policy ; provided, however, that such contract shall not be binding on the assured unless its presence in the policy is indicated by the words 'Three-fourths value Contract,' printed or stamped in capital letters, and in red ink, across the face of the policy." Sec. 3. "It shall be lawful for corporations, firms or individuals doing a fire insurance busi- ness in this State to contract with the assured that the assured shall during the life of such contract, maintain insurance upon the property insured to the extent of an agreed proportion of the actual cash value of the property at the time that a fire occurs, and that the assured, if he shall fail to do so, shall be a co-insurer to the extent that his insurance then in force is less than the amount of such agreed proportion, and to that extent shall, as such co-insurer bear his part of any loss ; provided, however, that the acceptance of such contract shall be optional with the assured, which will be conclusively presumed if its presence in the policy is indicated by the words 'Co-insurance Contract' printed or stamped in capital letters, and in red ink across the face of the policy." ANTI-COMPACT— Chap. 479, Acts of 1905. Sec. i. "That it shall be un- lawful for any two or more fire insurance companies doing business in Tennessee, or any two or more agents, or representatives of fire insur- ance companies doing business in Tennessee, to enter into any contract, compact or agreement looking to the maintaining of any specific rates to be charged for insurance on any property located in this State. Provided, that this act shall not be so construed as to prohibit the formation of asso- ciations of fire insurance agents in any city, town or county in this State for the purpose of minimizing expenses by the employment of joint inspectors or experts for preparing rating schedules and designating im- provements, with a view to the reduction of the cost of insurance; pro- vided, that all rates which may be suggested through such associations shall be advisory only, and not binding on any member thereof; provided, further, that if any board of agents, or agent or company attempt to impose 388 FIRE INSURANCE LAWS, TAXES AND FEES. any fine upon any agent or company who shall refuse to write at any rate other than that fixed by such board shall be guilty of a misdemeanor and subject to a fine not less than $50." Sec. 2. "That it shall be un- lawful for any one or more agents, or association of fire insurance agents in any city, town or county of this State to impose any penalty upon any agent because of any rate which may be charged for insurance by said agent or any member of said association." Sec. 3. "That any fire in- surance company doing business in Tennessee found guilty of a violation of Sec. I of this act shall be subject to a penalty in a sum of not less than $100 nor exceeding $1000, * * * and in addition the company so offending shall be subject to the revocation of its license to do business in this State, in the discretion of the Insurance Commissioner." Sec. 4. "That any agent or officer of any association of agents violating the pro- visions of Sec. 2 of this act shall be guilty of a misdemeanor and shall, upon conviction, be fined not less than $100 nor more than $500." The Insurance Commissioner, upon complaint of any citizen of the State, or upon his own initiative, may make investigations as to violations of this act. ANTI-DISCRIMINATION— No provision. ATTORNEY — The Insurance Commissioner must be authorized to accept service of legal process. Companies not licensed in the State, but doing business through licensed brokers, must agree to appoint an attorney in any county in which a loss claimant resides who wishes to begin suit, or in the county where the loss occurs. CANCELLATION OF POLICY— No law on this subject. CAPITAL REQUIRED — Company must possess at least $100,000 capital or surplus above all liabilities, which must be certified to be well invested by the Insurance Commissioner of the State in which the company was or- ganized. COMMISSIONS TO NON-RESIDENTS— Commissions must be received by resident agents. DEPOSIT— None required, except that companies of foreign countries must have at least $200,000 deposited with the proper official of one of the United States. (Nature of securities not specified ) DOMESTIC COMPANIES— Chap. 160, Sec. 13, Acts of 1895. " * * * Insurance companies other than life, chartered by the laws of this State, shall not be allowed to transact business in this State unless possessed of at least $50,000 paid-up actual cash capital ; or in lieu of cash capital, a surplus, above all liabilities, including reinsurance reserve, of not less than $50,000; it being understood that this section does not apply to companies organized under the laws of this State prior to the passage of this act, and actually engaged in the transaction of insurance business." EXAMINATIONS— A domestic company must be examined at least once in three years, and also upon request of five or more stockholders or persons pecuniarily interested therein, with affidavit of their belief, and reasons therefor, that the company is in unsound condition. Other State and for- TENNESSEE 389 eign companies may be examined when the Commissioner deems it ad- visable. "Any insurance company examined under the provisions of this act shall pay the proper charges incurred in such examination, including the expenses of the Insurance Commissioner, or his deputy, and the expenses and compensation of his assistants employed therein ; the compensation of no expert for examining the books or business of any local company shall exceed $io per day." Mutual companies may be examined on the re- quest of five members, or two directors, or the president or the secretary. If a "foreign" company is found to be in unsound condition, its license may be revoked. Domestic companies may be restrained by an injunction, should this be deemed necessary by the court. Penalty for obstructing examination, fine of not more than $500. FEES — For each company filing copy of charter or deed of settlement and financial statement, $30; for each statement, $15; for certificate or renewal thereof to an insurance agent (license required for each member of a firm, or agency), $2; for each seal of office, with certificate, $1; for copies of papers on file, 20 cents per folio ; for filing copy of charter and other pre- liminary papers, assessment mutual companies, $15 ; for filing annual state- ment, assessment mutual companies, $10. Reciprocal provision. Examina- tions, proper charges; no expert to receive over $10 per day. The forego- ing fees are payable to the Insurance Commissioner. On admission, a stock company files a certified copy of articles of incorporation with the Secretary of State and pays him a fee of $20, also paying him a privilege tax of $50 on authorized capital stock of $50,000 or less ; $100 on $50,000 to $100,000; $150 on $100,000 to $200,000; $200 on $200,000 to $300,000; $250 on $300,000 to $400,000 ; $300 on $400,000 to $500,000 ; 400 on $500,- 000 to $750,000; $500 on $750,000 to $1,000,000; $750 on $1,000,000 to $2,000,000; $1000 on $2,000,000 to $5,000,000, and $1500 on $5,000,000 or more of authorized capital stock. Domestic companies pay one-tenth of one per cent authorized capital stock. Credit is allowed, however, for the amount of fees paid to the Insurance Commissioner upon entering the State to do business. An annual tax upon authorized capital stock is pay- able to the Secretary of State as follows: $5 on capital of $25,000 or less; $10 on $25,000 to $50,000; $20 on $50,000 to $100,000; $30 on $100,000 to $250,000; $50 on $250,000 to $500,000; $100 on $500,000 to $1,000,000; $150 on $1,000,000 or more. FIRE DEPARTMENT TAX— Governed by Reciprocal Law. FIRE MARSHAL^-Provision is made for investigation of fires by the Insur- ance Commissioner. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— None re- quired. GENERAL PENALTY— Chap. 160, Sec. 12. "That the authority of a foreign insurance company may be revoked if it shall violate or neglect to comply with any provision of law obligatory upon it * * *." Chap. 160, Sec. 36. "That for violation of any provision of this act, the penalty 390 FIRE INSURANCE LAWS, TAXES AND FEES. whereof is not specifically provided herein, the offender shall be pun- ished by a fine of not more than five hundred ($500) dollars." IMPAIRMENT— Chap. 160, Sec. 6. "That whenever it appears to the Insur- ance Commissioner that the capital stock of a domestic insurance company is impaired to the extent of twenty per cent or more, he shall notify the company that its capital is legally subject to be made good; and if such company shall not, within sixty days after such notice, satisfy him that it has fully repaired its capital, or reduced its capital, as provided by law, he shall institute proceedings against it in accordance with the preceding section." See "General Penalty." INVESTMENTS PRESCRIBED— Capital and surplus funds must be invested in "good available securities." LICENSED BROKERS— Chap. 160, Sec. 41. "That none but bona fide residents of this State, of good moral character and competent business qualifications, shall be licensed as insurance brokers. * * *" Brokers must take oath to deal justly and uprightly and not attempt to deceive customers as to standing of companies. They must file copies of the charters and statements of companies which they intend to do business with, and pay the same fees required of regularly authorized companies. Brokers must file tax statements, verified by company officials, and failure to file such statement, or to pay a loss judgment, or the insolvency of the company, forfeits its right to do business through the broker. Broker must file bond of $1000 to secure payment of taxes. Penalty for acting as broker without license, or otherwise violating the law relating to brokers, fine of not less than $100, or imprisonment for not less than thirty days, or both. LIMIT ON A SINGLE RISK— None. LLOYDS — Chap. 160, Sec. 15. "That associations of individuals, citizens of the United States, whether organized within the State or elsewhere within the United States, formed upon the plan known as Lloyds, whereby each as- sociate underwriter becomes liable for a proportionate part of the whole amount insured bypolicy,maybe authorized to transact insurance other than life in this State, in like manner and upon the same terms and conditions as are required of, and imposed upon, insurance companies of the United States or one of the United States ; provided, however, that all such Lloyds, whether organized within this State or elsewhere in the United States, not having an actual paid-up cash capital, shall make the same deposit and upon the same terms and conditions as is required by Sec. 10 (that company must have deposit of $200,000 with some State of the United States) of foreign insurance companies incorporated, or associated under, the laws of any government or State other than the United States or one of the United States." Chap. 160, Sec. i. "When consistent with the context, and not obviously used in a different sense, the term 'company' or 'insurance com- pany,' as herein used, includes all corporations, associations, partnerships, or individuals engaged as principals in the business of insurance." TENNESSEE. 391 MISCELLANEOUS — No misrepresentation shall be deemed material unless made with actual intent to deceive, or unless the matter represented increase the risk of loss. A penalty of twenty-five per cent on the liability on a loss may be imposed for non-payment within sixty days, if refusal to pay is made in bad faith; while a policyholder bringing suit for such penalty, and not in good faith, shall, in case of non-recovery from the company, be liable to a similar penalty. MUTUAL COMPANIES — Chap. 463, Acts 1907, provides for the organiza- tion and operation of county mutual fire insurance companies. Such a company is required to have bona fide applications by not less than twenty-five citizens for not less than $50,000 of insurance, not more than $1000 of any one risk being subject to one fire, before it can be licensed to do business. Such company cannot do business outside of the county of its domicile until it has $300,000 of insurance in force. The premium liability of policyholders in county mutuals is unlimited. Chap. 461, Acts of 1907, provides for the organization and operation of State mutual fire insurance companies. Before a license is issued to a State mutual fire insurance company, it is required to have bona fide applications for not less than $250- 000 of insurance. A State mutual may limit the premium liability of the policyholder to the cash annual premium and in addition an equal amount as a contingent premium. Both the cash and the contingent premium are required to be plainly written in the policy. In lieu of the amount of bona fide applications a State mutual fire insurance company may be organized with a paid up guaranty capital of not less than $25,000. The guaranty capital is required to be retired when the surplus earnings of the company are equal to the amount of guaranty capital, provided the company has at all times either $25,000 of guaranty capital, or an equal amount in net surplus. Chap. 462, Acts 1907, provides for the admission and regula- tion of mutual fire insurance companies of other States. Before such com- pany can be licensed to do business in Tennessee it is required to have and maintain in admitted assets over and above liabilities, including rein- surance reserve, not less than $50,000, and in addition it must have and maintain contingent assets of not less than $150,000, or, in lieu of the above, must have and maintain a net cash surplus of not less than $100,000. Such a company is required to file copy of charter, financial statement, power of attorney and appoint agents as stock companies are required to do. PRELIMINARY DOCUMENTS— Company must file a certified copy of charter, a certificate of the Insurance Commissioner of the State where lo- cated, to the effect that it has authority to do the character of business in such State it desires to do in Tennessee (required annually, with annual statement), and a verified statement showing its condition December 31 preceding. Company must also file a copy of its charter with the Secretary of State. Certificate of deposit. Power of attorney, executed at home office, on Department blank, authorizing Commissioner of Tennessee to acknowledge service of process. Certified copy of deed of trust and ap- 392 FIRE INSURANCE LAWS, TAXES AND FEES. pointment of United States trustees. Certified copy of power of attorney to United States managers. PUBLICATION — None obligatory. When assets are published, liabilities must be made equally conspicuous ; and no capital except that paid up shall be advertised. Penalty for violation, $ioo to $500. RECIPROCAL LAW— Chap. 160, Sec. 20. "That whenever the existing or future laws of any other State of the United States shall require insurance companies incorporated by, or organized under, the laws of this State, or the agent thereof, any deposit of securities in such State for the protection of policyholders, or otherwise, greater than the amount required for similar companies of other States by the then existing laws of this Stale, then in every such case all companies of such States establishing, or having hereto- fore established, an agency or agencies, in this State, shall be, and are hereby required, to make the same deposit for a like purpose with the Treasurer of the State, and to pay into the treasury of this State the taxes, fines, penalties, license fees, or otherwise, an amount equal to the amoimt of such charges and payments imposed by law of such State upon com- panies of this State and the agents thereof." REINSURANCE — No prohibition of reinsurance in unauthorized companies, but if a licensed company reinsures in an unlicensed company, the licensed company must pay tax on the full amount of premiums received, less premiums returned to policyholders, no deductions whatever being allowed on account of reinsurance. If, however, an authorized company reinsures in other authorized companies, it is permitted to deduct from gross premiums, return premiums to policyholders and also the amount paid to authorized companies for reinsurance premiums. REINSURANCE RESERVE — Fifty per cent of premiums received on risks having not more than one year to run, and pro rata on those for longer terms. RESIDENT AGENTS— Chap. 430, Sec. i. "That no fire, fire and marine or marine insurance companies or associations not incorporated under the laws of this State, authorized to transact business herein, shall make, write, or cause to be made, written or placed, any policy, duplicate policy or contract of insurance of any kind or character of any general or floating policy upon property situated or located in this State, except after said risk has been approved in writing, or by a local agent who is a resident of this State, regularly commissioned and licensed to transact insurance business herein, who shall countersign all policies so issued or contracts of insurance, and receive full commission thereon when the premium is paid. * * *" Rail- road rolling stock and property in transit are excepted. An affidavit that the resident agents' law has not been violated must be filed before com- pany's license will be renewed. Penalty for violation, revocation of author- ity for at least one year. SEMI-ANNUAL STATEMENTS— See "Taxes." STANDARD POLICY— None. TAXES — Chap. 160, Sec. 19. "That each and every foreign insurance company TENNESSEE. 393 doing business under the provisions of this act shall, in January and July of each year, report, under oath of the president and secretary, or other chief officer of such company, to the Insurance Commissioner, the total amount of gross premiums received in this State within the six months next preceding the first of January and July, or since the last return of such premiums were made by such company, and shall, at the same time, pay into the treasury of the State the sum of two dollars and fifty ($2.50) cents upon each $100 of said gross premiums so ascertained, which shall be in lieu of all other taxes." Deductions for return premiums and reinsurance premiums paid to authorized companies are allowed. Ori- ginal writing companies are held responsible for all business written. Penalty for failure to make prompt and correct returns and pay- ments, $500; for sixty days' failure, revocation of license until taxes and penalties are fully paid. Licensed brokers must pay the same tax on gross premiums as do authorized companies, and in the same manner and time. Each agent, including each member of an agency or firm, must pay $10 yearly in lieu of all other privilege taxes. Tax is for calendar year. Agents beginning business before April i pay $10; betweea April i and July i, $7.50; between July i and October i, $5; after October i, $2.50. Companies of other States and countries which have ceased transacting new business in Tennessee, are required to pay taxes as long as any renewal premiums are received on business in the State. The insured is required to pay the tax on premiums paid directly to unauthorized companies (held not to apply to contracts made outside of the State) . A tax of one-half of one per cent on premium receipts of fire insurance companies is levied to cover expense of investigating fires. Chapter 541, Acts of 1907, prescribes that the 2>^ per cent tax on premiums shall be paid direct to the Insurance Commissioner, and shall be in lieu of all other privilege taxes. TAX STATEMENTS— To be filed in January and July. Reports to Secretary of State are due July i. VALUED POLICY— See "Anti-Coinsurance." COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. CENTERVILLE— For each agent, $10. CLINTON— For each agent, $10. DECHARD— For each agent, $5. DYERSBURG — For each agent, $10. KNOXVILLE— For each agent, $10. MEMPHIS— Salvage Corps, i>4 per cent on net premiums. MURFREESBORO— For each agent, $5. NASHVILLE— For each agent, $10. NEWPORT— For each agent, $10. TEXAS. STATE REQUIREMENTS. AGENTS DEFINED— Chap. 17, Sec. 294. "Any person who soHcits insurance on behalf of any insurance company, whether incorporated under the laws of this or any other State or foreign government, or who takes or transmits other than for himself any application for insurance, or any policy of insurance, to or from such company, or who advertises or otherwise gives notice that he will receive or transmit the same, or shall receive or deliver a policy of insurance of any such company, or who shall examine or inspect any risk, or receive or collect or transmit any premium of insurance, or make or forward any diagram of any building or buildings, or do or perform any other act or thing in the making or consummating of any contract of insurance for or with any such insurance company other than for himself or who shall examine into or adjust or aid in adjusting any loss for or on behalf of any such insurance company, whether any of such acts shall be done at the instance or request or by the employment of such insurance company, or of or by any broker or other person, shall be held to be the agent of the company for which the act is done or the risk is taken, so far as relates to all the liabilities, duties, requirements and pen- alties set forth in this act; provided, that the provisions of this act shall not apply to citizens of this State who arbitrate in the adjustment of losses between the insurers and the assured, nor to the adjustment of particular or general average losses of vessels or cargoes by marine adjusters who have paid an occupation tax of two hundred dollars for the year in which the adjustment is made; provided, further, that the pro- vision of this act shall not apply to practicing attorneys-at-law in the State of Texas acting in the regular transaction of their business as such attor- neys-at-law, and who are not local agents nor acting as adjusters for any insurance company." For definition of "general agent" see "Taxes." AGENTS' LICENSES — Agents must procure licenses, which expire on the last day of February i. License required for each member of firm. Acting for unlicensed company renders agent personally liable for the same taxes as are paid by admitted companies, and to the holder of any policy issued through him by such company for any loss sustained thereunder, and to be fined $500 for the first, and $1000 for each subsequent offense, with imprisonment as an alternative, or both. Penalty for doing business without license, fine of $500 to $1000, and imprisonment for three to six months. Applications for licenses must be made by company officers, under seal, when agents are appointed. No license will be issued to an agency corporation. All agents' licenses are issued only to individuals. ANNUAL STATEMENTS— Must be filed within sixty days after January i. showing condition as of December 31 preceding. Domestic companies TEXAS. 395 must file statements "annually^ after the first day of January of each year, and before the renewal of its authority to transact business." Printers' and county mutual companies must report by last day of February. ANTI-COINSURANCE — The use of coinsurance clause prohibited except on request of insured and at a reduced rate. ANTI-COMPACT — Chap. 19, Sec. 357, is an anti-trust measure. ANTI-DISCRIMINATION— The State Insurance Board Law prohibits the giving or receiving of rebates. Discrimination is also forbidden. ATTORNEY — A resident of the State must be appointed to accept service of legal process. CANCELLATION OF POLICY— No provision. CAPITAL REQUIRED— A foreign company must possess at least $100,000 of actual capital, safely invested. Provision is made for domestic mutual companies, without capital. COMMISSIONS TO NON-RESIDENTS— Commissions must be received by resident agents. DEPOSIT — Chap. 7, Sec. 159. "Every fire insurance company not organized under the laws of this State applying for a certificate of authority to transact any kind of insurance in this State shall, before ob- taining such certificate, file with the Commissioner of Insurance and Bank- ing, a bond, with good and sufficient surety or sureties to be approved by the Commissioner of Insurance and Banking, payable to the Commissioner of Insurance and Banking, and his successors in office, in a sum equal to 25 per cent of its premiums collected from citizens or upon property in this State during the preceding calendar year, as shown by its annual report for such year; provided, however, the bond in no case shall ex- ceed fifty thousand dollars, nor be less than ten thousand dollars, con- ditioned that said company will pay all its lawful obligations to citizens of this State. Such bonds shall be subject to successive suits by citizens of this State so long as any part of the same shall not be exhausted and the same shall be kept in force unimpaired until all claims of citizens of this State arising out of obligations of said company have been fully satisfied." Sec. 160. "Such bonds shall provide that in the event the com- pany shall become insolvent or cease to transact business in this State at any time when it has outstanding policies of insurance in favor of citizens of this State, or upon property in this State, the Commissioner of Insur- ance and Banking shall have the power, after having given ten days- notice to the officers of such company or any receiver in charge of its property and afifairs, to contract with any other insurance company trans- acting business in this State for the assumption and reinsurance by it of all the insurance risks outstanding in this State of such company which is insolvent or which has ceased to transact business in this State, which contract shall also provide for the assumption by such reinsuring com- pany of all outstanding and unsatisfied lawful claims then outstanding against such company which has become insolvent or ceased to transact 396 FIRE INSURANCE LAWS, TAXES AND FEES. business in this State, and in the event of the Commissioner making any such contract, and if the same shall be approved as reasonable by the At- torney General and the Governor of this State the reinsuring company shall be entitled to recover from the makers of such bond the amount of the premium or compensation so agreed upon for such reinsurance." Sec. i6l. "Any company desiring to do so may at its option, in lieu of giving the bond required by this section, deposit securities of any kind in which it may law- fully invest its funds with the State Treasurer of this State upon such terms and conditions as will in all respects afford the same protection and indemnity as is herein provided for to be afforded by said bond." Sec. 162. "Every fire insurance company not organized under the laws of this State which shall hold a certificate of authority to transact any kind of insurance business in this State, when this act takes effect, shall within ninety days thereafter comply with the requirements of Sec. i of this act, as to companies hereafter obtaining certificates of authority, and it shall be the duty of the Commissioner of Insurance and Banking to revoke the certificate of authority failing to so comply within such period." Sec. 163. "Every fire insurance company not organized under the laws of this State, hereafter issuing or causing or authorizing to be issued any policy of insurance other than life insurance, shall first have filed with the Commissioner of Insurance and Banking during the calendar year in which such policy may issue or authorize or cause to be issued a bond of good and sufficient sureties to be approved by such Commissioner in a sum not less than ten thousand dollars, conditioned for the payment of all lawful obligations to citizens of this State arising out of any policies or contracts issued by such fire insurance company, which such bond shall be subject to successive suits by citizens of this State so long as any part of the same shall not be adjusted and so long as there remains outstanding any such obligations or contracts of such fire insurance company. Any person violating the provisions of this section shall be deemed guilty of a misdemeanor, and upon conviction shall be punished by a fine of not less than one hundred nor more than five hundred dollars or by imprisonment in the county jail for not less than three nor more than twelve months, or by both such fine and imprisonment. This act shall not apply to any person, firm or corporation or association doing an interinsurance, cooperative or reciprocal business." DOMESTIC COMPANIES— Chap. 3, Sec. 49. "Any number of persons de- siring to form a company for the purpose of transacting insurance business shall adopt and sign articles of incorporation and submit the same to the Attorney-General, and if said articles shall be found by him to be in accord- ance with the laws of this State, and of the United States, he shall attach thereto his certificate to that effect, whereupon such articles shall be deposited with the Commissioner of Insurance." Sec. 50. "Such articles shall contain the name of the company, and the name selected shall not be so similar to that of any other insurance company as to be likely to mis- TEXAS. 397 lead the public, the locality of the principal business office of such company, the kind of insurance business which the company proposes to engage in, the amount of its capital stock, which shall in no case be less than $100,000." There must be from seven to thirteen directors. Domestic companies are governed by the laws relating to companies in general, when not incon- sistent with the particular provisions regulating the former. EXAMINATIONS — Sec. 37. "The Commissioner of Insurance and Banking for the purpose of examination authorized by law, has power, either in per- son or by one or more examiners by him commissioned in writing, * * * to visit, at its principal office, wherever situated, any insurance company doing business in this State, for the purpose of investigating its affairs and conditions, and shall revoke the certificate of authority of any such company in this State refusing to permit such examination." License of company may be revoked or modified for any non-compliance with law. Domestic mutual companies must be examined annually. FEES — Every copy of paper on file, 15 cents per 100 words, in English; in other languages, 25 cents ; translations, 30 cents ; for filing declaration or certified copy of charter, $25; for filing annual statement, $20; for certifi- cate of authority, $1 (for company, no charge for agents' licenses); for affixing certificate and seal, $1; for certificate not provided for, 50 cents; for official examination, actual expenses incurred and $10 per day, not to exceed $250; for two certificates of compliance (for publication), $1; licensed brokers, $25 ; for filing annual statement of printers' or county mutual company, $5. Fees payable to the Insurance Commissioner. Reci- procal Law. (See "Taxes.") FIRE DEPARTMENT TAX— No provision. FIRE MARSHAL — Provision is made for the investigation of fires. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— General law provides that home office statement must be filed by all companies. GENERAL PENALTIES— Chap. 17, Sec. 293. "If any person shall violate any provision of the laws of this State regulating the business of life, fire or marine insurance, he shall be punished by fine of not less than $500, nor more than $1000." Penalty for non-payment of final judgment longer than thirty days, revocation of license until execution is satisfied. IMPAIRMENT— If the capital stock of a company is impaired to the extent of twenty per cent, the company must make good its whole capital stock within sixty days , or cease to do business in the State. The Commissioner may permit the reduction of capital of domestic companies, under restric- tions, to an amount not less than $100,000. INVESTMENTS PRESCRIBED— The capital stock of a company shall con- sist in lawful money of the United States, or in bonds of Texas or .any county or incorporated town or city thereof, or stock of any national bank, or in first mortgages on real estate in Texas, worth double the amount loaned thereon. Surplus funds may be invested in or loaned upon the pledge of public stocks or bonds of the United States, or any of the States, 398 FIRE INSURANCE LAWS, TAXES AND FEES. or stocks and bonds or other evidences of indebtedness of any solvent dividend-paying corporation, or in bills of exchange or other commercial notes or bills, except its own stock, provided, always, that the current market value of such evidences of indebtedness shall at all times during the continuance of such loans be at least twenty per cent more than the sum loaned thereon. Mutual companies may invest in mortgages, bonds of State of Texas, or of any county, city, town or school district in Texas. Domestic companies may hold only such real estate as is requisite for the convenient accommodation of their business, and such other real estate as is acquired under foreclosure or in satisfaction of debts. LICENSED BROKERS — A regularly licensed agent of one or more com- panies may be authorized to place excess lines in unauthorized companies, after the party desiring such excess insurance has filed an affidavit that the capacity of the authorized companies has been exhausted. A fee of $25 is charged for this license, and the agent must file a bond for $1000, and must report gross premiums received for such excess insurance semi- annually, on January 31 and July 31, and pay a tax of five per cent thereon. LIMIT ON A SINGLE RISK— Ten per cent of paid-up capital (except on cotton in bales and grain) net, after reinsurance in authorized companies. LLOYDS — No specific provision. Law applies to "any person" in any manner transacting business connected with insurance. The Insurance Commis- sioner declines to issue licenses to Lloyds or inter-insurance associations. MISCELLANEOUS— No suit under a policy must be taken to a United States court. Penalty for violation, forfeiture of license and non-renewal of same for three years. No fire insurance company is permitted to transact life or health insurance. Companies issuing joint policies must each pay taxes and comply with all requirements of the law. Immaterial misrepresentations do not void policies. Company licenses expire on last day of February. License shall be revoked on failure to pay judgment within 30 days after notice of issuance thereof. MUTUAL COMPANIES— May be organized by seven or more residents of the State. Company must secure 100 applicants, each owning real estate worth $1000; and the first assessment or premium must amount to at least $10,000. Charters are issued by Secretary of State, upon examination by Insurance Commissioner, and his certification as to correctness of notes and applications. No other State company without an authorized capital will be admitted. PRELIMINARY DOCUMENTS— Company must file certified copy of charter with all amendments, name and residence of each of its officers, directors and members, certificate of compliance, a schedule of Texas agents, an attested copy of its last annual statement, a certificate of deposit, and an affidavit of compliance with resident agents' law Certificate of compliance with laws of company's home State required annually, within sixty days after January i. PUBLICATION— Certificates of authority must be published annually, TEXAS. 399 within thirty days after issuance, for three successive weeks in two news- papers printed in the State; evidence of publication must be filed with Commissioner. RATING SCHEDULES TO BE FILED— A law passed in September, 1910, and which went into effect 90 days after the adjournment of the session of the legislature at which it was enacted, repealed the State Rating Board Law of 1909, and provides in substance as follows : The law applies to all companies writing policies of fire insurance ; creates a State Insurance Board of three members and confers upon the board full authority to regulate the writing of fire insurance in the State, making it the duty of the board to collect and maintain a classified record of the fire losses in the State to be used in determining equitable rates, etc. The board is to prescribe, fix, form and regulate the rates of fire insurance, and to make and prescribe the general basis schedules, together with rules and regulations for applying the same to specific risks for the purpose of deter- mining the maximum rates at which insurance companies may write insur- ance in the State ; also, to alter, revise, prepare and lower such rates, and to alter, prepare and lower the general basis schedules or any part thereof. The board may also employ inspectors and other employees. The law provides that the general basis schedules shall be compiled and promulgated as soon as practicable after the law takes effect, and after the general basis schedules are promulgated it shall be the duty of the fire insurance com- panies to apply such schedules to the specific risks in the State, and thus obtain maximum insurance rates on such risks. The companies may em- ploy a common agent to apply the schedules, under contract, subject to the approval of the board, but the maximum rates must be approved by the board before going into effect. A company may write insurance at a lower rate than the maximum, but must file a copy of such reduction with the State Insurance Board, and the latter shall file a certified copy of such state- ment of the reduced rate with the county or city clerk of the locality where such reduction is made. The law also provides for the promulgation of uniform policies of insurance by the board, and prohibits the co-insurance clause except on request of insured, and such clause is then only permitted to be used in consideration of a reduced rate. Provision is made for hear- ings on complaints of policyholders, citizens or insurance companies, in re- lation to any order, rate or rule made by the board, and also for appeal to the courts. Rebates are prohibited, but profit-sharing policies may be is- sued provided that the profit-sharing is uniform, and is specified on the face of the policy. The substance of the fire marshal law of Minnesota is included in this law, and the fire marshal is a member of the State Insur- ance Board. Purely mutual and purely profit-sharing or co-operative com- panies, and inter-insurance and reciprocal exchanges, are exempted from the provisions of the law. Provision is made for the collection of $25,000 from the insurance companies, to be paid to the Commissioner of Insurance and Banking, in order to reimburse the State for the expense of the State Insurance Board. 400 FIRE INSURANCE LAWS, TAXES AND FEES. RECIPROCAL LAW — Chap. 5, Sec. 122. "Whenever the existing or future laws of any other State of the United States shall require of life or health insurance companies incorporated by this State any deposit of securities in such other State before transacting insurance business therein, then and in every such case all insurance companies of such State shall, before doing any insurance business in this State, be required to make the same deposit of securities with the Treasurer of this State." This section is held to refer to life and health insurance companies only. REINSURANCE — Reinsurance of Texas risks in companies not authorized in that State, is prohibited. Schedules of reinsurances must be filed an- nually. In December, 1910, the Insurance Commissioner stated that, in his judgment, all reinsurance contracts made by authorized companies should be countersigned by a resident agent. REINSURANCE RESERVE— Chap. 2, Sec. 16, Par. 7. "For every company doing fire insurance business in this State, he shall calculate the reinsur- ance reserve for unexpired fire risks by taking fifty per cent, of the premiums received on all unexpired risks that have less than one year to run, and a pro rata of all premiums received on risks that have more than one year to run, provided, that when the reinsurance reserve, cal- culated as above, is less than forty per cent of ail the premiums received during the year, the reinsurance reserve in this case shall be the whole of the premiums received on all of its unexpired risks." The reserve of Texas companies when declaring dividends shall be computed by taking forty per cent of premiums on all unexpired fire risks, and one hundred per cent of marine and inland premiums in force. Mutual companies must deposit an initial reserve of $6000 with State Treasurer, and add thereto five per cent of subsequent premiums. RESIDENT AGENTS— Laws of 1903, Sec. i. "Any fire, fire and marine, marine, tornado * * * insurance company legally authorized to do business in this State is hereby prohibited from authorizing or allowing any person, agent, firm or corporation that is a non-resident of the State of Texas to issue or cause to be issued, to sign or countersign, or to deliver or cause to be delivered, any policy or policies of insurance on property * * * located in the State of Texas, except through regularly commissioned and licensed agents of such companies in Texas ; provided, however, that this act shall not apply to property owned by railroad com- panies or other common carriers; and provided further, that upon oath made in writing by any person, that he can not procure insurance on prop- erty through such agents in Texas, it shall be lawful for any insurance com- pany not having an agent in Texas to insure property of any person upon application of said person, upon his filing said oath with the County Clerk of the county in which such person resides. Sec. 300. That before a certificate or license to any fire, fire and marine, marine, tornado * * * insurance company is issued authorizing it to transact business in this State, the In- surance Commissioner shall require in every case, in addition to the other TEXAS. 401 requirements already made and provided by the law that each and all such insurance companies herein mentioned shall file with him an affidavit that it has not violated any provision of this act. Sec. 301. That any person, agent, firm or corporation licensed by the Commissioner of Insurance to act as a fire and marine, marine, tornado * * * insurance agent in the State of Texas, is hereby prohibited from paying, directly or indirectly, any commission, brokerage, or other valuable consideration on account of any policy or policies covering property, person or persons, in the State of Texas, to any person, persons, agent, firm or corporation that is a non-resi- dent of the State of Texas, or to any person or persons, agent, firm or cor- poration not duly licensed by the Commissioner of Insurance of the State of Texas as a fire, fire and marine, marine, tornado * * * insurance agent." Sec. 302. That whenever the Commissioner of Insurance shall have or receive notice or information of any violation of any of the provisions of this act, he shall immediately investigate or cause to be investigated such violation, and if a fire, fire and marine, marine, tornado * * * insurance company has violated any of such provisions aforesaid, he shall immediately revoke his license for not less than three months, nor more than six months, for the first oflfense, and for each offense thereafter for not less than one year, and if any person, agent, firm or corporation licensed by the Com- missioner of Insurance as a fire, fire and marine, marine, tornado * * * insurance agent shall violate or cause to be violated any of the provisions of this act, he shall for the first offense have his license revoked for all companies for which he has been licensed, for not less than three months, and for the second offense he shall have his license revoked for all com- panies for which he is licensed, and shall not thereafter be licensed for any company for one year from date of such revocation. Sec. 303. For the purpose of enforcing the provisions of this act, the Commissioner of In- surance is hereby authorized and it is made his duty, at the expense of the company investigated, to examine at the head office, located within the United States of America, all books, records and papers of such company and also any officers or employees thereof under oath as to violations of this act, and he is further hereby empowered to examine any person or persons, administer oaths and send for papers and records and failure or refusal upon the part of any fire, fire and marine, marine, tornado * * ♦ insurance company, person or persons, agent, firm or corporations, licensed to do business in the State of Texas to appear before the Commissioner of Insurance when requested to do so or to produce records and papers, or answer under oath, shall subject such fire, fire and marine, marine, tornado * * * insurance company, person, or persons, agent, firm, corporation to the penalties of this act." SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY — The State Insurance Board law provides for the establishment of uniform policies and prescribes the standard forms, clauses and endorsements to be used in connection therewith. 402 FIRE INSURANCE LAWS, TAXES AND FEES. TAXES— Act of March 25, 191 1. "Every insurance company transacting the business of fire, marine, marine inland * * * insurance within this State, * * * at the time of fiUng its annual statement, shall report to the Commissioner of Insurance and Banking the gross amount of premiums received in the State upon property, and from persons residing in the State during the preceding year, and each of such companies shall pay an annual tax upon such gross premium receipts as follows : Shall pay a tax of two and six-tenths per cent, provided that any company doing two or more kinds of insurance business herein referred to, shall pay the tax herein levied upon the gross premiums received from each of said kinds of busi- ness; and the gross premiums receipts where referred to in this act are understood to be the premium receipts reported to the Commissioner of Insurance and Banking by the insurance companies upon the sworn state- ment of two principal officers of such companies, less return premiums paid policyholders, and the premiums paid for reinsurance in companies author- ized to do business in this State. Upon receipt by him of sworn statements, showing the gross premium receipts by such companies, the Commissioner shall certify to the State Treasurer the amount of taxes due by each com- pany, which tax shall be paid to the State Treasurer for the use of the State on or before the first of March following, and the receipt of the Treasurer shall be evidence of the payment of such taxes, and no insurance company shall receive a permit to do business in this State until such taxes are paid. If any such insurance company shall have as much as one- fourth of its entire assets, as shown by said sworn statement, invested in any or all of the following securities : Real estate in the State of Texas ; bonds of this State or of any county, incorporated city or town of this State, or other property in this State in which by law such companies may invest their funds, then the annual tax of any such company shall be one per cent of its said gross premium receipts ; and if any such company shall invest as afore- said as much as one-half of its assets, then the annual tax of such companies shall be one-half of one per cent of its gross premium receipts, as above de- fined; and provided, further, that no occupation tax shall be levied on insurance companies herein subjected to a gross premium receipt tax, by any county, city or town; * * * fhe taxes aforesaid shall constitute all taxes and license fees collectible under the laws of this State against any such insurance companies, and no other occupation or other taxes shall be levied on or collected from any insurance company by any county, city or town, but this act shall not be construed to prohibit the levy and collection of State, county and municipal taxes upon the real and per- sonal property of such companies. * * * " Mutual companies are ex- empt from this tax. An aggregate tax of $25,000 (maximum) is payable yearly by fire insurance companies, pro rata, according to premium receipts, to cover the expenses of the State Insurance Board, in addition to the tax above described. Occupation taxes are collected as follows: Chap. 17, Sec. 313. "From TEXAS. 403 each and every person acting as general adjuster of losses, or agents of life, fire, marine and accident insurance companies, who may transact any business as such in this State, an annual occupation tax of $50. By general agent, as used in this law, is meant any person or firm, representative of any insurance company in this State, or who may exer- cise a general supervision over the business of such insurance company in this State, or over the local agency thereof in this State, or any sub- division thereof; provided, that when such a general agent acts as a local agent he shall pay an additional tax as local agent, as hereinafter provided." Domestic mutual companies pay one-half of one per cent on gross premiums received ; no other tax. No franchise tax is levied upon printers and county mutual companies. Chap, 4, Sec. 89. "Insurance companies incorporated under the laws of this State shall hereafter be required to render for State, county and municipal taxation all of their real estate as other real estate is rendered, and all of the personal property of such insurance companies shall be valued as other property is valued for assessment in this State in the following manner : From the total valuation of its assets shall be de- ducted the reserve, being the amount of the debts of insurance companies by reason of their outstanding policies in gross, and from the remainder shall be deducted the assessed value of all real estate owned by the com- pany and the remainder shall be the assessed taxable value of its personal property. Home insurance companies shall not be required to pay any occupation or gross receipt tax." TAX STATEMENTS— Must be filed before March i. See "Taxes." VALUED POLICY— Chap. 7, Sec. 158. "A fire insurance policy, in case of a total loss by fire of property insured, shall be held and considered to be a liquidated demand against the company for the full amount of such poli- cies; provided, that the provisions of this article shall not apply to personal property." COUNTY TAXES AND FEES. None. ("See Municipal Taxes and Fees.") MUNICIPAL TAXES AND FEES. (In July, 1908, the Commissioner of Insurance and Banking wrote that an act taking effect January i, 1908, "repealed the law, as it formerly existed taxing certain occupations, including under this head local msur- ance agents ; but the law was allowed to stand with regard to the occupation tax upon general adjusters or agents of life, fire, marine and accident insurance companies and they continue to pay an occupation tax of $50 per year * * * There is no municipal tax imposed upon local fire insurance agents. There is the State occupation tax against general agents named above, but no State or local tax upon local agents and no local tax upon general agents.") UTAH. STATE REQUIREMENTS. AGENTS DEFINED— Ins. Code, 1909, Sec. 22. "* * * Any person who shall solicit and procure an application for insurance, other than fire insurance, shall, in any controversy between parties to the contract, or between the parties to the contract and the beneficiary, if any, be held to be the com- pany's agent, whatever conditions or stipulations may be contained in the policy or contract." AGENTS' LICENSES — Agents must procure licenses, which expire annually March i. Penalty for acting as agent without a license or for representing an unlicensed company, for each offense, fine of $100 or imprisonment for two months, or both. Licenses are issued to firms and corporations, one license covering all members and regular employees who work on salary. ANNUAL STATEMENTS— Must be filed by March i, showing condition as of December 31 next preceding. Penalty for violation, revocation of license. ANTI-COINSURANCE — No prohibition of use of coinsurance clauses. ANTI-COMPACT— No law forbidding co-operation. ANTI-DISCRIMINATION— No provision. ATTORNEY — A resident of the State must be appointed to accept service of legal process, and a new power of attorney must be filed with Insurance Commissioner annually before March i. CANCELLATION OF POLICY— No provision. CAPITAL REQUIRED— Ins. Code 1909, Sec. 26. "No joint stock fire in- surance company shall be permitted to do any business in this State, unless it is possessed of an actual paid-up cash capital and surplus as follows: ( I ) Companies with territory not limited to Utah, a capital of not less than $200,000, and a net surplus over all liabilities of not less than $100,000, or a capital and net surplus over all liabilities aggregating $300,000. (2) Companies, the business of which is limited to Utah only, a capital of not less than $50,000, and a net surplus over all liabilities of not less than $50,- 000. (3) No mutual or mutual assessment fire insurance company shall be permitted to do any business in this State unless it is possessed of cash assets as follows : (4) Companies with territory not limited to Utah, cash assets of not less than $100,000. Companies whose business is limited to Utah only, cash assets of not less than $25,000, such assets to be net after deducting all liabilities other than reinsurance reserve. Companies with a guaranty fund shall be required to have the same capital and surplus as that required of joint stock companies. No mutual or mutual assess- ment fire insurance company, shall receive a certificate of authority to do business in this State until it has filed with the Insurance Commissioner a UTAH. 405 satisfactory bond, to be approved of by the Insurance Commissioner, ex- ecuted by at least two resident freeholders of this State or by a surety company authorized to do business in this State, in the penal sum of $iO,- ooo for the use and benefit of the policyholders of such company in this State, who, in any action against such company, may make such sureties or surety company defendants to the suit, and a judgment shall be rendered against them as shall be proper. If the total annual premiums of such company in this State should exceed $10,000, then the bond shall be in- creased to an amount equal to such premiums. If the insurance company so desires, it may, in lieu of such bond, deposit with the Commissioner of Insurance bonds or securities of the kind mentioned in paragraph (i), Sec. 27, of this Act, equal in value to the amount of such bond, the value thereof to be determined by said Commissioner. In the event of a policyholder of this State recovering judgment against such company, the Court shall make such decree for the sale of such securities to satisfy the same as may be just and proper. COMMISSIONS TO NON-RESIDENTS— Commissions must be received by resident agents. DEPOSIT — Sec. 26. "* * * No insurance company not organized under the laws of a State, Territory or district of the United States, shall be ad- mitted or permitted to do any business in this Sate, until, beside complying with the Insurance Laws of this State, it has made a deposit with the Commissioner of Insurance of this State, or with the duly authorized officer of some other State of the United States, of a sum of not less than the capital or capital and surplus or guaranty or surplus fund required of like companies under this Act. Such deposit must be an exclusive trust for the benefit and security of all the company's policyholders and creditors in the United States and may be made in the securities, but subject to the limitations specified in Sec. 27 of this Act; and such deposit shall be deemed for all purposes of the insurance laws, the capital or capital and surplus or guaranty or surplus fund of the company making it. Foreign companies must have at least $200,000 on deposit with the proper official in one State or Territory of the United States. DOMESTIC COMPANIES— Ins. Code 1909, Sec. 31. "Any number of per- sons not less than five, at least one of whom shall be a resident of this State, may associate to establish a joint stock insurance company. * * * The Secretary of State shall not issue a certificate of incorporation to any insurance company unless it shall appear by affidavit that the sub- scribed capital and net surplus or guaranty fund when required by this Act shall have been paid as required by Sec. 26 of this Act." Duplication of corporate names is prohibited. EXAMINATIONS— Ins. Code, 1909- Sec. 15. "The Commissioner of In- surance shall examine and inquire into violations of the insurance laws of this State, and for this purpose, or to see if the laws are obeyed, or to examine the financial condition, affairs and management of any company, iOS FIRE INSURANCE LAWS, TAXES AND FEES. he may visit or cause to be visited by any competent person or persons he may appoint, the head office in the United States of any domestic or foreign insurance company, applying for admission to or already admitted to do business in this State, and may for this purpose examine or investigate any company organized under the laws of Utah, and any agency of any company doing business in this State; provided, that the written consent of the State Board of Examiners must be obtained to all examinations, inquiries, or investigations made beyond the borders of the State of Utah. The cost of such examinations, when made beyond the borders of the State of Utah, shall be paid by the company examined, and shall include the reasonable expenses of the Commissioner, and assistants employed therein, whose services are paid for by the Department, and the compen- sation and reasonable expenses of his assistants employed therein whose services are not paid by the Department. * * * The Com- missioner may also examine companies upon the request of five or more of the policyholders, representing at least $100,000 insurance in force, who shall make affidavit of their belief, with specifications of their reasons therefor in writing, showing reasonable grounds for such belief, that such company is in an unsound or insolvent condition, provided that only the United States branches of companies incorporated in foreign countries shall be examined by said Commissioner." Penalty for obstructing an examination, fine not exceeding $500 or imprisonment not exceeding three months, or both. FEES — There shall be paid by every insurance company doing business in the State, to the Commissioner of Insurance, the following fees : For filing statement preliminary to admission (foreign companies), $50; for filing certified copy of acceptance by foreign companies of the provisions of the Constitution of the State of Utah, $3; for filing any power of at- torney, $1 ; for filing articles of incorporation and by-laws of foreign com- panies and examination thereof, $25 ; for filing amendments to articles of incorporation and by-laws of foreign companies, and examination of, $5 ; for filing annual statement, $50; for certificate of authority to transact business in this State, $5 (certificates expire last day of February) ; for each copy of certificate of authority for use of agents and solicitors, $2 ; for preparing synopsis of annual statement for publication and certifying the same, $5 ; for each copy of any paper filed in his office, per folio, 20 cents ; for affixing the seal of his office and certifying any paper, $1 ; for license to deal with unauthorized companies, $50 ; for examinations outside of Utah, expenses thereof. FIRE DEPARTMENT TAX— Under a law passed in 191 1 a tax of one per cent is levied on the premiums collected by fire insurance companies in cities having fire departments of a prescribed efficiency. FIRE MARSHAL — No law providing for investigation of fires. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— None re- quired. UTAH. 407 GENERAL PENALTIES— Ins. Code 1909, Sec. 16. "When the Commissioner of Insurance deems it to the interest of the pubhc, he may pubhsh the result of any examination or investigation in a daily newspaper pub- lished in and of general circulation in the State. If the Commissioner finds, upon examination, hearing or other evidence, that any foreign or domestic insurance company is in an unsound or insolvent condtion or has failed to comply with the law or with the provisions of its charter, or that its condition is, or its methods are, such as to render its operation hazardous to the public or its policyholders, or that its actual assets, ex- clusive of its capital, are less than its liabilities, or if its ofificers or agents refuse to submit to examination or to perform any legal obligation relative thereto, or refuse on behalf of the company to pay the examination charges, he shall suspend or revoke all certificates of authority granted to said insurance company, and its ofificers or agents, and shall cause notice thereof to be published in one or more daily newspapers, which shall have a general State circulation, and no new business shall thereafter be done by it or its agent in this State, while such default or disability continues, nor until its authority to do business is restored. Before suspending or re- voking the certificate of authority of any such company, the Commissioner shall, unless it is insolvent or its capital impaired, grant it fifteen days in which to show cause why such action should not be taken. Any foreign or domestic insurance company whose certificate of authority has been sus- pended or revoked by the Commissioner, may, within fifteen days there- after, appeal from said order to the District Court of the district in which its principal place of business is located, which Court, upon filing the proper petition, shall cause the record and orders of the Commissioner to be brought before it, and upon a hearing of the case by the Court de novo, the Court shall either confirm or revoke the order of the Commis- sioner, as the law and the facts of the case may warrant." In general any violation of the insurance law is a misdemeanor. IMPAIRMENT — None permitted. See "General Penalties." INVESTMENTS PRESCRIBED— Ins. Code, 1909, Sec. 27. "(i) No in- surance company shall transact business in this State unless it is possessed of the actual amount of capital or guaranty or surplus funds as required in Sec. 26 of this Act, in cash or invested in bonds or public stock issued or created by the United States, or by this State, or by any other State of the United States, or the District of Columbia, or any or either of them, or by any of the incorporated cities, counties, townships, or other municipal corporation thereof; or in bonds or notes secured by mortgages or trust deeds on unencumbered real estate located within said States or the District of Columbia, or either of them, worth at least fifty per cent more than the sum invested or loaned hereon. (2) Domestic insurance companies hereafter organized may, after complying with the provisions of this Act, invest their additional surplus or other funds, in such securities as are named in paragraph ( i ) hereof ; or may loan upon. 408 FIRE INSURANCE LAWS, TAXES AND FEES. or purchase real estate or mortgage bonds of railroad companies organized under the laws of said State, or the District of Columbia, or either .of them, or operated therein, or the capital stock, bonds, securities or evidences of indebtedness created by any corporation or corporations created under the Laws of the United States, or of this or any other State, except the stock of mining companies ; provided, that no loan shall be made or retained on any of the above-mentioned securities, except the bonds or stocks issued or created by the United States, or this State, exceeding ninety per centum of the market value thereof; and provided, further, that no loan shall be made by any company on its own stock." LICENSED BROKERS — ^An agent may be licensed to procure policies in un- authorized companies by paying yearly fee of $50 (license expires March I ) , filing bond of $2000 and statements of business done, and paying 4 per cent tax on premiums. LIMIT ON A SINGLE RISK— Ten per cent, of paid-up capital and surplus (net). A mutual company's limit is 5 per cent of net premium income in preceding year. LLOYDS — Ins. Code, 1909, Sec. 2. "That in this Act, unless the context otherwise requires, "Company" or "Insurance Company" shall include all corporations, associations, partnerships, or individuals engaged as prin- cipals in the insurance business, excepting fraternal and benevolent orders and societies." MUTUAL COMPANIES— Ins. Code, 1909, Sec. 62. "Twenty-five or more persons, citizens of this State, may form a corporation to carry on the business of insurance on the mutual plan or fire insurance upon the assess- ment plan. The Secretary of State shall not issue a certificate of incorpor- ation to any such insurance company organized on the mutual or the assess- ment plan unless it shall appear by affidavit of at least three of the in- corporators that a guaranty or equivalent fund shall have been provided, as required by Section 26 of this Act, and until the Commissioner shall have approved the same." The word "Mutual" must be embodied in the title. County mutuals may be organized by 25 residents owning $50,000 of property. PRELIMINARY DOCUMENTS— Company must file with the Insurance Commissioner a copy of its last annual statement showing the condition of the company, also certified copies of its articles of incorporation and by- laws and certificate of incorporation, coupled with an acceptance of the pro- visions of the Ins. Code of the State. Penalty for doing business in Utah without authority, fine of $100. Certificate of incorporation and by-laws, and acceptance of constitution, are filed but once. PUBLICATION — ^A statement prepared by the Commissioner of Insurance, together with a copy of certificate of compliance, must be pub- lished annually within thirty days after issuance of certificate of authority, at least four times, in newspaper published at the capital, at the company's expense. UTAH. 409 RECIPROCAL LAW— None. REINSURANCE — Ins. Code, 1909, Sec. 56. "Every insurance company doing business in this State may reinsure the whole or any part of any policy ob- ligation in any other insurance company. When the reinsurance is made by any other than a life insurance company, the company so re- ducing its direct amount at risk shall, for the purpose of computing its unearned premium fund, deduct from the original or policy premium on said direct amount at risk, the net sum actually paid for reinsuring such risk. The company taking over or acquiring the risk, through reinsurance, shall enter in premium in force at any time the premiums actually received for risks thus acquired through reinsurance, the unearned premium to be computed by the company ceding the risk upon the balance of policy premium in force after deducting the sum actually paid as a premium consideration for the risk so ceded. The company taking over such reinsurance shall compute its unearned premitim fund on account thereof upon the basis of the ac- tual amount of net premium so received and in force at the time of such computation. But this provision shall not apply to a company that re- duces by insurance its direct liability to the holders of its policies as a step preliminary to its permanent or final retirement from the business. Said retiring company shall then be credited in reduction of its outstanding policy liability with the original or poky premium reinsured, irrespectiev of the net sum actually paid for such reinsurance, and the company taking over such outstanding risks shall be charged with an unearned premium fund on the original or policy premium on said risks, as the same appear in the outstanding policies of the retiring company. No credit of any kind shall be allowed or given, either as a reduction of taxes or of lia- bilities, to any company transacting business in this State for reinsurance made in companies not authorized to issue policies n this State." Sched- ules of insurance may be required at any time by the Commissioner of Insurance. REINSURANCE RESERVE— "The amount required to safely reinsure all outstanding risks." RESIDENT AGENTS— Insurance Code, 1909, Sec. 34. "No insurance company or association (other than life) not incorporated under the laws of this State, shall make, write or place any policy or contract of insurance of any kind or character binding in law upon any person or property situated or located in this State, except after the said risk has been approved by an agent resident of this State, regularly commissioned and licensed to transact insurance business in Utah for said company, who shall countersign all policies so issued and receive their commission thereon, and also to the end that the State may receive the taxes required by law to be paid on the premiums collected for insurance written herein. This section shall not apply to reinsurance policies nor insurance cover- ing the rolling stock of railroad corporations, where such railroad line lies 410 FIRE INSURANCE LAWS, TAXES AND FEES. partially within and partially without the State of Utah, or to property in transit while in the possession and custody of common carriers." Refusal to submit to examination to ascertain possible violations of above section will be deemed conclusive evidence of violation. Penalty for violation, $300 for each offense; for non-payment of judgment for thirty days, revo- cation of license for one year. SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— No provision. TAXES — Ins. Code, 1909, Sec. 17. "* * * All insurance companies engaged in the transaction of business of insurance in this State shall annually, on or before the first day of March in each year, pay to the Commissioner of Insurance 1^4 per cent of the gross amount of premiums received less the amount of all premiums returned, within this State during the year ending the previous 31st day of December; provided, that if any insurance com- pany shall have paid a property tax during said year, it shall be entitled to deduct from the tax therein provided the amount of such proi>erty tax paid for general State purposes." Sec. 18. "The taxes and fees, as pro- vided herein, shall be in lieu of all other taxes, licenses and fees of every kind and character by the State or any subdivision or village, town or municipality thereof." TAX STATEMENTS— Must be filed before March i. See "Taxes." VALUED POLICY— No law of this character. COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. None. VERMONT. STATE REQUIREMENTS. AGENTS DEFINED-No statutory definition. AGENTS' LICENSES— Agents must procure licenses, which are renewable annually on April i. Agents may act as brokers if license fees amount to $io. Penalty for acting for unauthorized company, $ioo to $1000; for acting as agent for a company which is not liable for such agent's aets, not less than $7. Applications for licenses need not be signed, under seal, by company officials. Each member of firm who solicits insurance and each person soliciting for an agency corporation is required to have a license. ANNUAL STATEMENTS— Domestic mutual fire companies' statements must be filed by August 15 for the year ending July 31 preceding; other fire insurance companies must file their statr-iients in January covering the preceding calendar year. ANTI-COINSURANCE — No prohibition of use of coinsurance clauses. ANTI-COMPACT— No law forbidding co-operation. ANTI-DISCRIMIXATIOX—Xo provision. ATTORNEY — The Secretary of State must be authorized to accept service of legal process. In case of non-compliance with the provisions of the law, service may be had on any agent. Penalty for transacting business without having appointed the Secretary of State as attorney, fine of $100 to $1000. CANCELLATION OF POLICY— No requirement as to notice to insured. CAPITAL REQUIRED — Company must possess an unimpaired capital of $100,000, at least one-half of which must be invested in cash securities other than mortgages. COMMISSIONS TO NON-RESIDENTS— Commissions must be received by resident agents. DEPOSIT— None required. DOMESTIC COMPANIES— Chap. 203, P. S., Sec. 4760. "No domestic stock fire insurance company or corporation shall be hereafter organized with a less capital stock than $100,000 paid in cash." Sec. 4756. "No domestic insurance company or association shall issue policies until, upon examina- tion of said commissioners or their deputy, it is found to have complied with the laws of this State, and obtained from said commissioners a certi- ficate stating that fact and authorizing it to issue policies." EXAMINATIONS — Chap. 203, Sec. 4803. "At least once in each five years and whenever the Insurance Commissioners determine it to be prudent, they shall personally, or by their deputy or examiner, visit each domestic insurance company, and thoroughly inspect and examine its affairs to ascertain its financial condition, its ability to fulfil its obligations, and 412 FIRE INSURANCE LAWS, TAXES AND FEES. whether it has complied with the provisions of law. When they determine it to be prudent for the protection of policyholders in this State, they shall in like manner visit and examine, or cause to be visited or examined, by some competent person or persons whom they may appoint for that purpose, any foreign insurance company applying for admission, or already admitted to do business by agencies in this State, and such company shall pay the proper charges incurred in such examination, including the expenses of the Commissioners or their deputy, and the expenses and compensation of their assistants employed therein. Such examinations shall include a computa- tion of the reinsurance reserve." FEES — For each company license, $5; for each license or renewal to agents (one for each member of firm), $2; for each broker's license, $10, if issued between April i and September 30, and $5 if issued between October i and March 31; filing annual statement, $20; for filing charter on admis- sion (reciprocal), $30; for each service of process, $1. It is not optional with the department to reduce or remit any of above fees, which are pay- able to the Insurance Commissioners. FIRE DEPARTMENT TAX— Governed by reciprocal law. FIRE MARSHAL — No provision for investigation of fires. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— None re- quired. GENERAL PENALTY— Chap. 203, Sec. 4766. "When the Insurance Com- missioners believe that an insurance company organized under the laws of this or any other State, or an officer or agent thereof, or any other person, has violated the law relating to insurance, or has not complied with its requirements, they shall forthwith report the fact with any information they have relating thereto to any State's Attorney, who shall, if in his judgment it is advisable so to do, prosecute therefor; and the offender shall be fined not more than $2000 and cost of prosecution." Penalty for not paying judgment within thirty days, revocation of license; company or agent issuing policy after suspension may be fined not more than $200. IMPAIRMENT— Chap. 203, Sec. 4766. "* * * But the Insurance Com- missioners may, in their discretion, license a company to do business whose impairment of capital does not exceed twenty per cent of the above rule." INVESTMENTS PRESCRIBED— Capital of foreign companies must be in securities readily available into cash, not less than one-half of which is invested in cash securities other than mortgages on real estate. Capital of domestic companies, surplus funds and other assets, shall be invested in such securities as are permitted by law to savings banks, savings institutions and trust companies, but such funds shall not be invested in or loaned upon its own stock or the stock of any other insurance company. Real estate convenient for the accommodation of its business may be held at a cost not exceeding twenty-five per cent of its available cash assets and not otherwise, but may hold real estate acquired under the conditions of any VERMONT. 413 mortgage owned by it or by purchase or set-off on execution upon judgment for debts due it in the course of its legitimate business. LICENSED BROKERS— Chap. 203, Sec. 4812. "A person may be licensed by the Commissioners as an insurance broker to negotiate contracts of insurance, and to effect insurance for others than himself for a compen- sation, and by virtue thereof he may place risks or effect insurance with a domestic insurance company, or with the agents of a foreign insurance company licensed to do business in this State, but with no other ; and such license may be renewed from year to year, ending on the first day of April. For each license or renewal thereof such broker shall pay the Commissioners ten dollars." Licenses under this section are issued to responsible parties irrespective of place of residence, but all business written by such brokers must be placed through resident agents. Chap. 203, Sec. 4815. "The In- surance Commissioners may issue a Hcense to any person or resident of this State, permitting the person named therein to procure policies of fire insurance on property in this State in foreign insurance companies not authorized to transact business in this State. * * *." Such brokers pay a tax of three per cent on gross premiums less return premiums, upon filing their annual statements in January. Quarterly statements are also required. LIMIT ON A SINGLE RISK— No restriction. LLOYDS — No provision. Law applies to companies and copartnerships. MISCELLANEOUS— Chap. 203, Sec. 4779- "It shall be the duty of every fire insurance company or association transacting business m this State to report to the Insurance Commissioners, within ten days after the adjustment of every loss, the amount of all policies issued by said company on the property destroyed or damaged, the amount paid or payable on account of such loss, and such other information relat- ing to the matter as the Insurance Commissioners may require." A clause in a policy hmiting the time of commencement of an action there- under to less than twelve months, or making an award by appraisers a condition precedent to a suit, is null and void. Companies are liable for the acts of their agents as between them and the insured; and this must be stated in their policies if not specified in their articles of incorporation. MUTUAL COMPANIES-Chap. 203, Sec. 4766. "A foreign mutual or co- operative insurance company, association or society shall not do business in this State, unless it has assets amounting to $100,000, invested in secur- ities readily convertible into cash, not less than one-half of which is invested in cash securities other than mortgages of real estate, nor unless it has such assets equal to its outstanding liabilities, including reinsurance, to be esti- mated as in the case of joint stock insurance companies, and including the guarantee capital as a liability, nor until the laws of this State relating to insurance companies of other States have been complied with. Do- mestic mutual companies must file before August 15, annually, state- ments covering the year ending with the 31st of July precedmg. Such 414 FIRE INSURANCE LAWS, TAXES AND FEES. companies need not keep a cash reinsurance reserve or funds invested in securities other than their premium notes, when the latter amount in gross to three per cent of the amount at risk. In any year when the assess- ments required to pay losses and expenses would not equal five per cent of its premium notes, a company may assess up to five per cent and carry any available balance to surplus account for the payment of future fire losses and expenses as limited by law, such surplus shall at no time be made to exceed ten per cent of the face of the premium notes at such time in force, and any year when the fire losses and expenses of any company accumu- lating a surplus in this manner shall exceed the amount of a three per cent assessment such excess may be taken from the surplus and used in payment of losses and expenses. PRELIMINARY DOCUMENTS— Company must file with the Secretary of State a certified copy of its charter and by-laws, and a verified statement showing its financial condition, also power of attorney to Secretary of State, authorizing him to accept service of process. Foreign companies must also file certificates of deposit. Penalty for doing business for unauthorized company, fine of $ioo to $1000. Certificate of compliance vvrith laws of company's home State not required annually. PUBLICATION— No provision. RECIPROCAL LAW— Chap. 203, Sec. 4824. "If another State or country imposes or requires of a domestic insurance company or its agents doing business therein taxes, fees, fines, penalties^ deposits, obligations or pro- hibitions exceeding those imposed by this State upon, or required of, for- eign insurance companies doing business herein, an insurance company organized under the laws of such other State or country, and its agents doing business in this State, shall be subject to taxes, fees, fines, penalties, deposits, obligations or prohibitions similar to those so imposed in such other State or country, and the same shall be imposed, required and en- forced as like taxes, fees, fines, penalties, deposits, obligations and pro- hibitions are under the laws of this State." REINSURANCE — No express prohibition of reinsurance in unauthorized companies. REINSURANCE RESERVE — Fifty per cent of premiums, less return pre- miums and reinsurance, on outstanding term fire risks, ninety-five per cent of premiums on perpetual risks, and one hundred per cent of ocean marine premiums, excepting on time hull risks, which may be computed at fifty per cent. See "Mutual Companies." RESIDENT AGENTS— Chap. 203, Sec. 4764. "If the Commissioners are satisfied with such copies and statements, and that the company has com- plied with the provisions of this title, they shall grant a license authorizing it to do insurance business by lawfully constituted and licensed resident agents only. * * * This shall not be construed to prohibit residents of this State from procuring insurance at the home office of any foreign company." Chap. 203, Sec. 4776. "Every fire insurance policy written VERMONT. 415 in a foreign fire insurance company, licensed to do business in this State, upon property located in the State, shall be countersigned by a duly authorized agent of the company insuring the property, who is a resident of the State." Chap. 203, Sec. 4817. "A fire or casualty in- surance company authorized to do business in the State shall not author- ize or allow any person, agent, firm or corporation who is a non-resident of the State to issue or cause to be issued any policy or policies of insur- ance on property located in this State." Sec. 4818. "A person, agent, firm or corporation licensed by the Insurance Commissioners to act as a fire or casualty agent in this State shall not pay, directly or indirectly, any com- mission, brokerage or other valuable consideration on account of any policy or policies covering property in the State, to any person, agent, firm or corporation who is a non-resident of this State, or to any person, agent, firm or corporation not duly licensed by the Insurance Commissioners as a fire or casualty insurance agent." Penalty for violation, revocation of license for three to six months for first offense, and for not less than one year for each subsequent offense. SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— None prescribed. TAXES — A two per cent tax on premiums received and assessments collected on business in the State is imposed; but in determining the amount of taxes to be assessed, there shall be deducted from the full amount of premiums and assessments the unused balance of notes taken for premiums on open policies; all sums paid for return premiums on canceled poHcies; dividends paid to poHcyholders ; and the sums actually paid to other in- surance companies incorporated by this State, or to the agents within this State of foreign companies, for reinsurance on risks for which a tax on the premiums would be due had no reinsurance been effected. Divi- dends in scrip or otherwise, in stock, mutual or mixed companies must not be considered return premiums. Taxes are payable in February to the State Treasurer. Penalty for failure to pay tax, revocation of li- cense. There is a franchise tax of $10 for the first $50,000 of capital or deposit and $5 extra for each additional $50,000 or part thereof, but the whole not to exceed $50, payable in February to the State Treasurer. Li- censed brokers must pay a tax of three per cent on gross premiums less return premiums. Penalty for failure to pay tax, revocation of license. TAX STATEMENTS — Statement for license, taxes and premium must be filed before March i. VALUED POLICY— No provision. COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES None. VIRGINIA. STATE REQUIREMENTS. AGENTS DEFINED — Any person soliciting or procuring applications for any insurance company is held to be an agent. AGENTS' LICENSES — License must be procured by agent. Penalty for soliciting without a license not less than $io nor more than $ioo. Licenses expire July 15, annually. Agency corporations are not licensed; each soliciting member or employee must obtain a license. ANNUAL STATEMENTS— Must be filed with Commissioner of Insurance by February 15, showing actual condition of company on the last day of the preceding year. Time may be extended sixty days for good cause. Penalty for failure to make report, fine of not less than $100 nor exceed- ing $1000 for each failure. Penalty for filing a false report, imprisonment for two to ten years. ANTI-COINSURANCE — No law forbidding use of coinsurance clauses. See "Miscellaneous," Act of March 9, 1906. ANTI-COMPACT — The Wharton anti-compact measure was repealed in 1902. See "Miscellaneous." ANTI-DISCRIMINATION— No provision. ATTORNEY — A citizen of the State and a resident of Richmond must be appointed attorney to accept service of legal process. In the absence of such an attorney, process may be served on the Commissioner of Insur- ance. CANCELLATION OF POLICY— No provision for notice to insured. CAPITAL REQUIRED— See "Deposit." No express provision as to amount of capital, but the latter must be stated under oath. Minimum capital stock of a domestic company, which must all be paid in, shall not be less than $25,000, nor less than one-tenth of its maximum capital stock. COMMISSIONS TO NON-RESIDENTS— No provision. DEPOSIT— Act of March 9, 1906, Sec. 14. "Unless otherwise provided in this chapter, every insurance company shall, by an agent employed to superintend or manage the business of such company in this State, or through some authorized officer, deliver under oath to the Treasurer of this State a statement of the amount of capital stock of said company, un- less it be a mutual company, and deposit with him bonds of the United States, or of the State of Virginia, or of the cities or counties of this State, to an amount equal to five per centum on the said capital stock, or not less than ten thousand nor more than fifty thousand dollars, and the Treas- urer shall thereupon give the agent a receipt for the same; provided, that the cash value of the securities so deposited need not be more than fifty thousand dollars, nor shall it be less than ten thousand dollars, and no VIRGINIA. 417 single bond so deposited shall exceed in amount the sum of ten thousand dollars ; if a mutual company, it shall make a deposit of not less than ten thousand dollars nor more than fifty thousand dollars, the exact amount to be determined by the State Corporation Commission, as may seem equitable upon comparison with the deposit required by stock companies." Mutual companies paying losses wholly from assessments are exempt, but the law applies to all other fire insurance companies, domestic and foreign. DOMESTIC COMPANIES— Must be incorporated by State Corporation Commission. EXAMINATIONS — All insurance companies are subject to the inspection and supervision of the State Corporation Commission, through the Bureau of Insurance, which may examine a company whenever the Commission deems it necessary. Before making an examination, the Commission shall, through the Bureau of Insurance, first inquire of the Insurance Depart- ment of the company's home State; and if a favorable report is received, further examination may be dispensed with. If a company is found to be in unsatisfactory condition, its license may, after a hearing, be refused, revoked or suspended. FEES — A State license fee of $200 is payable annually into the State Treasury, but the Auditor of Public Accounts shall not receive same until the Commissioner of Insurance has notified him he can receive it (see Taxes) ; licenses expire April 30; if license is taken out after May i the fee is pro rata for the first year to April 30, and for companies licensed in 1910 the charge is pro rata from January i, 1911, to April 30, 1911. State Treasurer's fee for handling and safekeeping of deposits, one- twentieth of one per cent of their face value, payable in January. An- nual registration fee : For maximum capital of $15,000 or less, $5 ; $15,000 to $50,000, $10 ; $50,000 to $100,000, $15 ; $100,000 to $300,000, $20; over $300,000, $25. Fee on admission, mutual companies, $50. Entrance fee payable into the Treasury of the State of Virginia once only, viz. : when company enters the State : Where the maximum capital stock is $50,000 and under, $30; over $50,000 and not in excess of $1,000,000, 60 cents for each $1000 or fraction thereof ; over $1,000,000 and not in excess of $10,- 000,000, $1000 ; and advancing by $10,000,000 stages, each increase in fee $250, up to $90,000,000 ($3000) ; over $90,000,000, $5000. Foreign cor- porations without capital stock shall pay $50. The amount to which a company is authorized by the terms of its charter to increase its capital stock is considered its maximum capital stock. $5 to State Corpora- tion Commission, payable once only, when company enters the State; to Secretary of Commonwealth, 20 cents per 100 words for recording charter and $1 for recording power of attorney ; for certificate of any document, $1 ; for issuing each and every license or certificate of authority or renewal, $5 (to Insurance Commissioner) ; for broker's license, $100 (to Insurance Commissioner) ; for agent's license, $1 (to Insurance Commissioner). FIRE DEPARTMENT TAX— The Supreme Court has declared a tax of i 418 FIRE INSURANCE LAWS, TAXES AND FEES. per cent on premium collections for the benefit of disabled firemen to be un- constitutional. FIRE MARSHAL — The Commissioner of Insurance is required to investi- gate fires which may be brought to his attention by official report, or other- wise, provided that when an examination is made on the application of any fire insurance company, the necessary expenses attending the same shall be paid by such company. He may inspect any building or premises except dwellings, and require owner to remedy dangerous conditions. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Not re- quired. GENERAL PENALTY — Sec. 574. "Any person who engages in or exercises any business, employment or profession without a license, if a license be required by law, or in any manner violates the license or revenue laws of this State, if no specific fine is imposed for such violation, shall pay a fine of not less than, $30, nor more than $1000 for each offense." Any company failing to pay taxes, fees or charges due, shall cease business in the State; and any agent or employee of a company in default, who shall transact business for such company while it is in default, shall be liable to a fine of $50 to $200, and to imprisonment for thirty to fifty days. Any violation of the Act of March 9, 1906, for which no penalty is prescribed, is punish- able by a fine of $20 to $200. IMPAIRMENT — No fixed limit of impairment permitted. INVESTMENTS PRESCRIBED— No provision. LICENSED BROKERS— Act of February 19, 1904. Sec. 83. "No person shall, without a license, act as insurance broker. Every person who shall solicit for compensation, directly or indirectly, to be derived therefrom any fire, marine, life or other insurance, either on account of any person desiring to effect any such insurance, or on account of any insurance company, except the duly authorized agent (or a clerk actually employed in his office) of any insurance company licensed to do business in this State, shall be deemed an insurance broker." Sec. 84. "An insurance broker shall pay the sum of $100 for the privilege of transacting such business." Penalty for acting as broker without license, $50 to $500 for each offense. LIMIT ON A SINGLE RISK— Ten per cent of the capital and surplus; mutual companies, five per cent of cash assets. Any excess must be re- insured in an authorized company. Assessment mutual companies are exempt. Penalty for violation, revocation of license. LLOYDS— Act of March 9, 1906, Chap. 2, Sec. i. "The words 'insurance company' or 'insurance companies' as used in this act shall be held to mean and include any association, society, company, corporation, joint stock company, individual partnership, trustee, or receiver engaged in the business of assuming insurance risks upon persons or property in this State, except fraternal benefit orders, associations or societies, as defined and regulated in Chapter 5 of this act. * * *" MISCELLANEOUS— Act of March 9, 1906, Sec. 30. "That in all cases VIRGINIA. 419 where policies of insurance have been issued or are hereafter issued by fire insurance companies doing business in this State containing a pro- vision that in case of loss by fire or otherwise, less tnan the amount stated on the face of the policy upon which the premium is paid, or only a certain portion of the value of the property at the time of the loss, shall be paid under the provisions of said policy, and the amount ascertained to be due in accordance with the provisions of the policy after the loss occurs, shall be less than the amount upon which the premium was paid it shall be the duty of the company that issued said policies to refund to, and said com- pany is hereby required to refund to the policyholder or holders the pre- mium paid on the amount which constitutes the difference between the amount stated on the policy upon which the premium was paid and the amount paid thereunder, with interest thereon from the time of payment of such premium; but this section shall not apply to cases in which there is a partial loss by fire and the policy is continued in force as to the residue of the amount named in the policy." Any provision inserted in a policy for the purpose of providing against the enforcement of this section shall be void. No policy provision is binding upon the insured unless printed in type as large as, or larger than, long primer ten point type, or written upon the policy with pen and ink or typewriter. No answer of insured in an application will bar recovery unless proved to have been wilfully false or fraudulently made, or that it was material. The arbitrators and umpire selected to appraise a loss must be citizens and actual residents of Virginia, unless otherwise agreed between the parties. Chap. 680, Acts 1899-1900, Sec. I. "* * * That it shall be unlawful for any fire insurance company, association, or partnership authorized to do business in this State to enter into any compact or combination with other fire insurance companies, associations, or partnerships to make or require their agents or employees to enter into any compact, agreement, or pledge for the purpose of governing or controlling the commissions or compensation paid said agents." Penalty for violation, fine of $250 to $500, and revocation of license. No provision limiting the time in which suit may be brought under a policy, to less than one year after loss shall be valid. The Commissioner of Insurance is required to investigate com- plaints as to excessive rates for insurance. MUTUAL COMPANIES — Domestic mutual companies may be incorporated under the act of May 21, 1903. PRELIMINARY DOCUMENTS— Company must make required deposit and, through its agent in Virginia, must give bond, with two or inore sureties, or a guaranty company authorized to do business in Virginia, of not less than $1000 nor more than $5000, conditioned to make returns and pay taxes as required by law; said bond to be approved by the Com- missioner of Insurance. Must also file with State Corporation Commis- sion two certified copies, and with the Commissioner of Insurance one cer- tified copy, of charter; triplicate power of attorney, resolution of board 420 FIRE INSURANCE LAWS, TAXES AND FEES. of directors that service upon its attorney (or the Commissioner of Insurance) shall be valid service upon the company, and certificate of Auditor of Public Accounts showing payment of charter fee. Copies of charters, powers of attorney, and bond to pay taxes, need be filed but once. PUBLICATION— None required. RECIPROCAL LAW— Act of March 9, 1906, Sec. 48. "If, by the existing or future laws of any State an insurance corporation of this State having agencies in such other State, or the agents thereof, shall be required to make any deposit of securities in such other State for the protection of policyholders or otherwise, or to make payment for taxes, fines, penalties, certificates of authority, license fees or otherwise, greater than the amount required by this chapter from similar corporations of such other State by the then existing laws of this State, then and in every such case, all insur- ance corporations of such State established or heretofore having estab- lished an agency or agencies in this State, shall be, and they are hereby, required to make the like deposit for the like purposes with the Treasurer of this State, and to pay the Commissioner of Insurance for taxes, fines, penalties, certificates of authority, license fees and otherwise, an amount equal to the amount of such charges and payments imposed by the laws of such other State upon the insurance corporations of this State and the agents thereof." REINSURANCE — No restriction, except that, when the risk reinsured is in excess of ten per cent of the capital and surplus of the company, the excess must be reinsured in an authorized company. REINSURANCE RESERVE— No provision. RESIDENT AGENTS— Act of March 9, 1906, Sec. 34. "That fire * * * insurance companies not incorporated by the laws of the State of Vir- ginia, but legally authorized to do business in this State, shall not make contracts of insurance on * * * property herein save through regularly constituted agents of such companies residing in the State of Virginia; provided, however, that this act shall not apply to railroad com- panies and other common carriers engaged in interstate commerce; and the writing, placing, or causing to be written or placed, any policy of fire * * * insurance in contravention of this section is hereby declared to be a violation of the laws of this State providing for the payment of taxes by foreign and alien insurance companies permitted to do business in Virginia." Affidavit of compliance must be filed annually. Penalty for violation, $100 to $500 for each offense, and revocation of license for ninety days, and until all taxes and penalties have been paid SEMI-ANNUAL STATEMENTS— Not required. STANDARD POLICY— None prescribed. See "Miscellaneous." Policy of a mutual company must have attached or printed copy of its by-laws and regulations. TAXES— Sec. 23. "* * * Every such person, partnership, company or corpora- VIRGINIA. 421 tion shall also pay into the StateTreasury on or before the fifteenth day of March of each year a tax of one and three-fourths per centum upon the gross amount of all assessments, premiums, dues and fees collected or re- ceived, or obligations taken therefor without any deduction for dividends paid, or deduction on any other account except for premiums returned upon canceled policies derived from business in this State during each year end- ing the thirty-first of December on policies, contracts, or agreements for fire, marine, * * * insurance, * * * provided, however, that fire insurance companies chartered by and doing business solely in this State, which are purely mutual associations^ not designed to accumulate profit for the benefit of stockholders or members thereof, or to pay dividends to them * * * shall pay a sum equal to one per centum upon the gross amount of all assessments, premiums, dues and fees collected or received or obliga- tions taken therefor, without any deduction for dividends paid, premiums returned, or deduction on any other account, derived from business in this State during each year, ending the 31st day of December: provided, how- ever, that fire insurance companies doing business in the stock or legal reserve (not mutual) plan, whose gross premium receipts, less return premiums, upon canceled policies on all business done by them shall not exceed one hundred thousand dollars during the preceding year, ending the 31st day of December, shall pay a sum equal to one and one-quarter per centum upon the gross amount of all assessments, premiums, dues and fees collected or received or obligation taken therefor without any deduc- tion for dividends paid, premiums returned or deductions on any other account except for premiums returned upon canceled policies." Sec. 26. "The real and personal property of every insurance company or corporation, life, fire, marine, * * * shall be listed and assessed on the land and property books of the commissioners of the revenue in the same manner as other real and personal property is assessed, and there shall be a tax of twenty cents on every hundred dollars of the assessed value of the real estate and tangible personal property, and a tax of twenty-five cents on every hundred dollars of the assessed value of the intangible personal property of every such company or corporation, the proceeds of which shall be applied to the support of the government, and a further tax of ten cents on every hundred dollars of the assessed value of all the real estate and personal property of such company or corporation, which shall be applied to the support of the public free schools of this State; and a further special tax of five cents on every hundred dollars of the assessed value of the real estate and tangible personal property of every such company or corporation, which shall be applied to the payment of pensions." Credit is given for premiums returned on canceled policies. No other deduction is allowable. No charges made upon local mutual companies operating in not more than four contiguous counties, or in more than four counties if the population of such territory does not exceed 100,000. Tax is due on or before March i. The act of March 9, 1906, concerning the 422 FIRE INSURANCE LAWS, TAXES AND FEES. Bureau of Insurance, provides that the expense of maintaining said Bureau shall be assessed upon all insurance companies (except fraternal societies) doing business in Virginia, in proportion to their respective gross premium receipts in that State. This tax is payable within thirty days after notice from the Commissioner of Insurance. TAX STATEMENTS— Must be filed by March i, showing business of the preceding calendar year. Penalty for failing to report, $50 per day; for failure to pay tax, revocation of license and addition of 10 per cent to amount of tax. See "Taxes." The act of March 9, 1906 (as amended March 15, 1908) assessing the expenses of the Bureau of Insurance upon the insurance companies, provides that such companies shall annually report, on or before February 15, upon forms to be furnished by the Com- missioner of Insurance, the amount of their gross premiums during the preceding calendar year. VALUED POLICY— No statutory requirement. COUNTY TAXES AND FEES. PATRICK — For each company, $15. MUNICIPAL TAXES AND FEES. ABINGDON — For each company, $20.75, payable May i. ALEXANDRIA — For each company, $50, payable June i ; for each assistant or soliciting agent, $12.50 ; for each person soliciting for companies having no agencies in Alexandria, $50 for each company so represented. Also fee for issuing license, 50 cents. ASHLAND — For each company, $5, payable May i. BEDFORD CITY— For each company, $13, payable May i. BLACKSTONE — For each company, $10.75, payable May i. BOYKINS — For each agent, $2.50, payable January i. BRISTOL — For each company, $10.75, payable May i. BUCHANAN — For each company, $4.25, payable May 1. BUENA VISTA — For each company, $10.75, payable May i. CAPE CHARLES CITY — For each company, $15.50, payable May i. CHARLOTTESVILLE— For each agent, $30, payable May i. CHASE CITY — For each company, $5, payable May i. CHATHAM — For each company, $10.75, payable May i. CHRISTIANSBURG — For each company, $10, payable May i. CLARKSVILLE — For each company. $5, payable May i. CLIFTON FORGE — For each company, $12.50, payable May i. COVINGTON — For each company, $20.50, payable May i. CREWE— For each agent for first company, $5; for two companies, $7.50; for three companies, $10 ; for all over three companies, $20; payable May i. CULPEPER— For each company, $15.50, payable May i. VIRGINIA. 423 DANVILLE — For each company, $50.50, payable May i. EAST RADFORD— For each agency, $15. EMPORIA — For each company, $10, payable May i. FARMVILLE — For each company, $25.75, payable May i. FRANKLIN — For each company, $5, payable July i. FREDERICKSBURG — For each company, $50; for each solicitor, $50; pay- able May I. FRONT ROYAI^For each company, $5.25, payable July i. GATE CITY— For each agent, $5.75, payable May i. GORDONSVILLE — For each company, $10, payable July 30. HAMPTON — For each company, $20.50, payable May i. HARRISONBURG — For each company, $30, payable May i. KEYSVILLE— For each agent, $3, payable in May. LAWRENCEVILLE— For each company, $5.75 ; for each agent, $5.75 ; pay- able May I. LEESBURG — For each agent, $10 ; for each company, $5. LEXINGTON — For each company, $15.50, payable May i. LURAY — For each company, $5.25, payable May i. LYNCHBURG— For each company, $75.75, payable May i. MANASSAS— For each company, $5, payable May i. MANCHESTER— For each company, $15. MARTINSVILLE— For each company, $25.75. NEWPORT NEWS— For each company, $25, and 5 per cent on gross pre- miums, payable May i. NORFOLK — For first agent of fire company, $200 ; $50 for each additional agent; for first agent of marine company, $100; $25 for each additional agent, payable in May ; for each insurance broker, $200. ONANCOCK— For each company, $5, payable in May. ORANGE— For each company, $5.25, payable May i. PETERSBURG — For each agency of each company. $125, payable May i, and quarterly tax of $1.40 per $100 of gross premiums. POCAHONTAS— For each company, $5.75, payable May i. PORTSMOUTH— For each agent, $100, payable May i. PULASKI— For each company, $10. RADFORD— For each company on each agent, $15.75, payable May i. RICHMOND— For each person or corporation engaged in the business of fire insurance, $40 ; for each broker or person soliciting insurance not employed all his time by regular agent, $25 ; payable May i. ROANOKE — For each company, $40. ROCKY MOUNT— For each company, $10, payable May i. SALEM— For each company, $15.50, payable May i. SMITHFIELD— For each company, $10, payable July i. SOUTH BOSTON— For each company, $10.40, payable May i. STAUNTON— For each agent, $30.75; payable May i. STRASBURG— For each agent, $10.50, payable May i. 424 FIRE INSURANCE LAWS, TAXES AND FEES. STUART — For each company, $io. SUFFOLK — For each company, $20.50, payable July i. TAZEWELL — ^For each company, $10, payable May i. WARRENTON— For each agent, $10, payable June i. WAVERLY — For each company, $2.50, payable May i. WAYNESBORO— For each company, $10, payable May i. WEST POINT — For each agent, $5 for each company represented, payable May I. WILLIAMSBURG — For each company, $5.50, payable May i. WINCHESTER — For each company, $50, payable May i, and one and one- half per cent on gross premiums, payable quarterly. WOODSTOCK— For each company, $5, payable May i. WYTHEVILLE — For each company, $5; for each agent, $5. WASHINGTON. STATE REQUIREMENTS. AGENTS DEFINED — Insurance Laws, March lo, 191 1, Sec. i. "* * * is a person, co-partnership, corporation, attorney, board or committee duly appointed and authorized by an insurance company to solicit applications for insurance, to be known as a soliciting agent, or to solicit applications and effect insurance in the name of the company, to be Icnown as a record- ing or policy-writing agent, and to discharge such other duties as may be vested in or required of the agent by the company." AGENTS' LICENSES — Agents must make application for license on blanks furnished by the Insurance Commissioner, which application must be ap- proved by a company to be represented. Licenses expire annually April I. A license issued to a firm or agency corporation permits each member of the firm or officer of the corporation to solicit or effect insurance, but the names of such members or officers shall be specified and appear in the license; 191 1 licenses are extended to April i, 1912. ANNUAL STATEMENTS— Must be filed on or before February 15, show- ing condition as of December 31 preceding. Penalty for non-compliance within thirty days, $25 for each additional day of delinquency. Alien com- panies must file capital statements in February. ANTI-COINSURANCE— No provision. ANTI-COMPACT — Insurance Code, Sec. 32. "If any insurance company authorized to transact business in this State, or any agent or representative thereof, shall, either within or outside of this State, directly or indirectly, enter into any contract, understanding, or combination, with any other in- surance company, or any agent or representatives thereof, for the purpose of controlling the rates to be charged for insuring any risk, or class or classes of risks, in this State, the Commissioner shall forthwith revoke its license, and those of its agents, and no renewal of the licenses shall be granted until after the expiration of three years from the date of final revocation." See "Rating Schedules to be Filed." ANTI-REBATE— Insurance Code, Sec. 33. "No insurance company, by it- self or any other party, and no licensed insurance agent, solicitor, or broker, personally or by any other party, shall offer, promise, allow, give, set off, or pay, directly or indirectly, any rebate of, or part of, the premium pay- able on the policy, or on any policy, or agent's commission thereon, or earnings, profit, dividends, or other benefit founded, arising, accruing or to accrue thereon, or therefrom, or any other valuable consideration or induce- ment to or for insurance, on any risk in this State now or hereafter to be written, which is not specified in the policy contract of insurance ; nor shall any such company, agent, solicitor, or broker, personally or otherwise, offer, 426 FIRE INSURANCE LAWS, TAXES AND FEES. promise, give, sell, or purchase any stocks, bonds, securities, or property, or any dividends or profits accruing or to accrue thereon, or other thing of value whatsoever as inducement to insurance or in connection therewith which is not specified in the policy. The license of any insurance company, agent, solicitor, or broker who violates the provisions of this section shall be revoked and no license shall be issued to such company, agent, solicitor, or broker within one year from the date of the revocation of the license. No insured person or party shall receive or accept, directly or indirectly, any rebate of premium or part thereof, or agent's, solicitor's, or broker's commission thereon payable on the policy, or on any policy of insurance, or any favor or advantage or share in the dividend or other benefit to accrue thereon, or any valuable consideration or inducement, not specified in the policy contract of insurance ; the amount of the insurance whereon the in- sured has received or accepted, either directly or indirectly, any rebate of the premium or agent's, solicitor's, or broker's commission thereon, shall be reduced in such proportion as the amount or value of such rebate, com- mission, dividend, or other consideration so received by the insured, bears to the total premium on such policy, and any such insured shall be liable, in addition to having the insurance reduced, to a fine of not more than two hundred dollars. No person shall be excused from testifying, or from producing any books, papers, contracts, agreements, or documents at the trial of any person charged with violating any provision of this act, on the ground that such testimony or evidence may tend to incriminate himself, but no person shall be prosecuted for any act concerning which he shall be compelled so to testify or produce evidence, documentary or otherwise, except for perjury committed in so testifying. * * *" ATTORNEY — The Insurance Commissioner must be appointed to accept service of legal process. CANCELLATION OF POLICY— Policies may be canceled upon five days' notice. Members of mutual companies may withdraw on five days' notice, but cannot escape statutory liability for losses prior to cancellation. CAPITAL REQUIRED — Company must have unimpaired capital or net assets of at least $200,000 to transact fire and inland marine insurance, with $100,- 000 additional if ocean marine insurance is written, and $50,000 additional if team and vehicle (including automobile) insurance is written; also a surplus of at least $50,000. COMMISSIONS TO NON-RESIDENTS— Commissions must be paid to residents of the State who are licensed as agents. DEPOSIT — Foreign companies must have $200,000 deposited in some State for the benefit of United States policyholders, invested as required of capital of domestic companies. Domestic company must deposit with State Treasurer funds and securities to the amount of its minimum capi- tal, but deposits in other States may be credited. Deposits of other State companies are governed by reciprocal provision. DOMESTIC COMPANIES— Insurance Code, Sec. 84. "* * * No stock WASHINGTON. 427 insurance company shall make insurance in this State under class i of section 83 of this act, without having capital stock of at least $200,000, of which not less than one-half must be paid in in cash or like securities authorized by this act, and the remainder, in cash or like securities, paid within one year after the company is incorporated, and a surplus of not less than $50,000. * * *" Not less than the respective numbers named of citizens of the United States, two-thirds of whom must be residents in Washington, may incorporate domestic companies as follows : Stock, five ; mutual, ten ; Lloyds, twenty ; inter-insurers, twenty-five. Duly acknowl- edged articles of incorporation must be filed with the Secretary of State, the Insurance Commissioner and the Auditor of the county in which principal office is located. Number of trustees or directors, five to eleven. Name must not closely resemble that of another company. Expense of incorpo- ration and organization, including placing of stock, must not exceed 7J4 per cent of par value of stock sold. Stockholders are liable for debts, beyond par value, up to 100 per cent of par value. EXAMINATIONS — Each domestic company must be examined at least once each year and whenever the Commissioner deems it prudent. Outside com- panies may be examined whenever the Commissioner deems it advisable. Penalty for refusing to permit examination, revocation of license. Penalty for failure to obey subpoena or refusal to be examined as a witness and give evidence, same as though subpoena had been issued by a court having jurisdiction in equity and common law. See "Impairment." FEES — For filing articles of incorporation or certified copies of articles, etc., $25; for filing amended articles of incorporation, etc., $10; for issuing certificate of authority or renewal, $10; for filing annual statement of con- dition and business in the State, $20 ; for filing any other papers, $1 ; for furnishing copies of papers on file, 20 cents per folio ; affixing seal, $1 ; for each agent's or solicitor's license (one to firm), $2; for each broker's Hcense, $100; for each agent's license to deal with unauthorized companies, $100; for examinations, witness fees and mileage; for service of process on Commissioner, $2. Foreign mutual companies pay same fees as stock companies. Domestic mutual companies pay : For filing articles of incor- poration, $10; for annual license, $10; for filing annual statement, $10; for each agent's certificate, $2 ; other fees same as for stock companies. Fees payable to Insurance Commissioner. FIRE DEPARTMENT TAX— No provision. FIRE MARSHAL — No provision for the investigation of fires. FOREIGN COMPANIES' HOME OFFICE STATEMENTS-Not re- quired. . GENERAL PENALTY— Sec. 102. "Any company or person who knowmgly violates any provision of this act for which no penalty is provided, shall be deemed guilty of a misdemeanor and shall be punished as provided by law." ... J IMPAIRMENT— If upon examination the Commissioner finds a company to 428 FIRE INSURANCE LAWS, TAXES AND FEES. be in unsound condition, he shall revoke or suspend all certificates of authority and licenses granted to such insurance company, its officers or agents. If the capital of a domestic company is impaired it shall be noti- fied to make good the impairment with cash or investments or by reducing its stock not below statutory requirements within ninety days, and if im- pairment is not so made good, the company shall be deemed insolvent. Trustees, directors and officers of a company are liable for losses accruing upon new risks taken after the expiration of such time and before the deficiency is made good. Provision is made for the Insurance Commis- sioner to liquidate delinquent companies. INVESTMENTS PRESCRIBED— The minimum capital of a domestic com- pany shall be invested in legally issued bonds, warrants and securities of the United States or the District of Columbia or any State of the United States, or any county, incorporated city or incorporated school district in Washington, or in bonds and mortgages on improved real estate in Wash- ington not exceeding fifty per cent of market value of the property and the residue of the capital and surplus and funds of a domestic company over the minimum capital and the deposit required may be invested in similar securities or in municipal bonds of irrigation district bonds, or on mortgages on improved real estate in the United States or any securities of any solvent corporation incorporated under the laws of the United States or of any State thereof under certain restrictions. A domestic company must not invest in or loan upon its own stock or the stock of any other in- surance company or of any oil or mining company or of any fish, fruit or vegetable canning company, nor in the stock of any corporation whose stockholders may be liable in excess of the par value of the stock. The capital of a company of another State or a foreign country to the extent of the minimum capital required of a like domestic company shall be invested in the same class of securities specified for domestic companies, except that the securities of the home State or country of such company may be recognized as legal investments for amount of the minimum capital re- quired. A domestic company may own its home-office b'uilding under cer- tain conditions. No single loan nor investment shall be in excess of ten per cent of paid-up capital and surplus. Securities must be interest or dividend paying. LICENSED BROKERS — Insurance Code, Sec. loo. "Any person or party who solicits fire, marine, casualty, liability, or surety business to be placed in an insurance company other than represented by him shall be deemed and considered as transacting a brokerage business and shall be required to procure a broker's license ; provided, that nothing in this act shall be con- sidered as prohibiting an exchange of business between duly licensed re- cording agents." Broker so licensed shall deal only with admitted com- panies. Provision is made in section 75 for the licensing of brokers or agents to deal with unauthorized companies upon filing a bond for $500 to $2000 to comply with the law. Such broker or agent must file a statement WASHINGTON. 429 on or before February 15 yearly, showing business transacted in the pre-, ceding year, and shall pay to the State Treasurer through the Commis^. sioner's office by March i the same tax that is required of domestic com- panies. Affidavits are required of the licensed agent and the parties for whom he procures insurance. Penalty for failing to file statement and to. pay taxes, $25 for each day of delinquency and for any violation of the law the license shall be revoked and no license shall be issued to such agent for at least one year, nor until all taxes and fines are paid. LIMIT ON A SINGLE RISK— Ten per cent of paid-up capital in the United States, on a single risk, or a single block in the congested district of any city or town. Limit for other State mutual company, ten per cent of sur- plus assets, unless protected by simuhaneous reinsurance. The capital of an alien company is interpreted as being the aggregate value of such sums or securities as the company may have on deposit with the Department of Washington and of other States of the United States for the benefit of policyholders in the United States, excepting such sums as are held by other States for the special protection of policyholders in such States, and of all mortgage loans legally made, and of all other assets and property legally invested if such mortgage, assets and property shall be held in the United States by trustees or citizens of the United States or deposited with a trust company for the benefit of all policyholders in the United States; after making deductions for liabilities, including unearned premiums as re- quired in Washington. LLOYDS — Provision is made for the formation of Lloyds associations to consist of not .less than twenty citizens of the United States, two- thirds of them residents of Washington, each of whom must be worth not less than $20,cxx). Such association to transact fire and inland marine in- surance, must have at least $150,000 of unimpaired assets, of which not less than $75,000 must be in cash and securities such as domestic companies may invest their funds in. Such association must deposit not less than two- thirds of its assets with the State Treasurer. Policies of a Lloyds must have the name and address of each underwriter printed on the back. MISCELLANEOUS — Joint policies may be issued by two or more companies, but the names of the companies must appear thereon, and such companies shall be jointly and severally liable thereon. No policy shall be issued re- quiring such contract to be construed according to the laws of any State or country or depriving the courts of Washington of the jurisdiction of action against such company to a period of less than one year from the time when the cause of the action accrues. Misrepresentation does not avoid a policy unless made with intent to deceive. Overinsurance and policies for longer than five years are prohibited. No policy fee not specified in the policy shall be collected. MUTUAL COMPANIES — See "Domestic Companies." The articles of in- corporation must state the minimum and maximum Hability of members (two to six times the premium usually charged by solvent stock companies 430 FIRE INSURANCE LAWS, TAXES AND FEES. for similar risks, or, if not known, premiums according to "Dean" or "Uni- versal Mercantile" schedules), and other customary details. If on cash premium plan, must have applications, for not exceeding $2000 each, aggregating $500,000, with at least $8000 in premiums and $6000 surplus. Provision is also made for assessment and class mutual companies. Sec. 88. "No alien or foreign mutual insurance company shall be licensed to make insurance in this State until it shall have accumulated from its under- writing business and earnings surplus assets of not less than $100,000, and shall have a reinsurance reserve computed on a pro rata basis." PRELIMINARY DOCUMENTS— Company must file copy of charter, or articles of incorporation, and by-laws, with amendments and duly certified statement. If not incorporated, a certificate stating nature of business, location of principal office, names of members and officers of association, and amount of capital stock therein employed. Certificate of compliance with laws of company's home State is expected to accompany annual state- ment. PUBLICATION— None required. RATING SCHEDULES TO BE FILED— Insurance Code, Sec. 73. "Every fire insurance company before it shall receive a license to transact the busi- ness of making insurance as an insurer in this State, must file in the office of the Insurance Commissioner a copy of its rating schedules. Every such company and its agents shall observe said rating schedules and shall not deviate therefrom in making insurance until amended or corrected rating schedules shall have been filed in the office of the Insurance Commissioner. Any company which shall make fire insurance in this State according to the advisory rates, or a stated deviation therefrom, furnished by a rating bureau as provided in the following section, may receive a license to transact the business of making fire insurance in this State, without filing a rating schedule, by filing written notice in the office of the Insurance Commis- sioner of its adoption of such advisory rates, stating the deviation there- from, if any, at which it will make insurance, which deviation, if any, shall be uniformly applied to all purchasers of insurance from such company in this State." Sec. 74. "Any person or persons or co-partnership, resident within this State, or a domestic corporation, may organize or maintain a rating bureau, for the purpose of inspecting and surveying the various municipahties and fire hazards in this State, and the means and facilities for preventing, confining, and extinguishing fires, for the purpose of esti- mating fair and equitable rates for insurance, and to furnish to municipali- ties, owners of property, insurance companies, agents, solicitors, or brokers information and advice as to measures to be adopted for the reduction of fire hazards on property within this State, and lessening the cost of insur- ance thereon. The business of conducting a rating bureau in this State is public service in character and shall be conducted without profit to any party, except that fair and reasonable compensation shall be paid for all services actually rendered, and necessary to the business. Every rating WASHINGTON. 431 bureau shall, before publishing or furnishing any rates, file in the office of the Insurance Commissioner its rating schedules, and shall not deviate there- from until amended or corrected rating schedules shall have been filed in the office of the Insurance Commissioner. The services of such rating bureau shall be available, equally and ratably in proportion to the service rendered, to any and all insurance companies, agents, brokers, and propertyowners. Elach rating bureau shall keep an accurate and complete record of all work performed by it, which record must show all receipts and disbursements, and be open at all times to the inspection and examination of the Com- missioner, his deputy, or examiner. No rating bureau operating under the provisions of this act shall, directly or indirectly, examine, stamp, or pass upon any "daily report" of policies issued by any company on property located within this State. Any person or party who knowingly violates any provision of this or the preceding section shall be punished by a fine of not less than fifty dollars nor more than five hundred dollars." RECIPROCAL LAW— Sec. 47. "If, by the laws of any other State, any taxes, fines, penalties, licenses, fees, deposits, or other obligations or pro- hibitions, in the aggregate, additional to or in excess of those imposed by the laws of this State, upon foreign insurance companies and their agents and solicitors, are imposed on insurance companies of this State and their agents doing business in such State, like obligations and prohibitions shall be imposed upon all insurance companies of such State and their agents doing business in this State, so long as such laws remain in force." REINSURANCE — No prohibition of reinsurance in unauthorized companies, except those of foreign countries not admitted to nor having a deposit in the United States ; and this prohibition does not extend to marine risks. Rein- surances must be reported annually. REINSURANCE RESERVE— Pro rata of the amount received for premiums on all unexpired risks. RESIDENT AGENTS— Sec. 36. "It shall be unlawful for any insurance company admitted to do business in this State to write, place or cause to be written or placed, any policy of insurance covering risks located in this State, except through or by a duly authorized licensed agent of such com- pany residing and doing business in this State; provided, that where the insured calls at the principal office of the company and requests a policy, the risk may be covered and the policy procured through the duly authorized agent in the territory wherein risk is located." SEMI-ANNUAL STATEMENTS— None required. STANDARD POLICY— From January i, 1912, New York Standard form is prescribed. . „ ^ , TAXES— A tax of two and one-quarter per cent on all premiums collected or contracted for, less return premiums and reinsurance premiums paid to admitted companies, is payable to the State Treasurer through the Insur- ance Commissioner's office. If fifty per cent or more of a company's assets is invested in bonds or warrants of the State of Washington or of any 432 FIRE INSURANCE LAWS, TAXES AND FEES. county, city or district in that State, or in taxable property, or first mort- gages upon improved real estate in that State, the tax on premiums shall be but one per cent. Taxes are due March i. TAX STATEMENTS— Included in annual statements. VALUED POLICY — Insurance Code, Sec. 10514. "Whenever any policy of insurance shall be hereafter written or renewed insuring real property or any building or structure erected thereon or connected therewith, and the property insured shall be wholly destroyed, without criminal fault on the part of the insured, or his assigns, the amount of insurance written in such policy shall be taken conclusively to be the true value of the property when insured, and the true amount of the loss and measure of damages when destroyed. In case there is a partial destruction of the property insured, no greater amount shall be collected than the injury sustained ; provided, that the insurer shall have the option to repair, rebuild or replace the property lost or damaged with other of like kind and quality if he gives notice of his intention so to do within twenty days after the receipt of notice of loss ; provided, such insurer shall, within thirty days from receipt of notice above, commence such rebuilding or replacing and shall diligently prosecute the same to completion, and shall pay to the insured the reason- able rental value of the premises with the buildings thereon from the date of loss to the date of such completion." COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. i None. ^A^EST VIRGINIA. STATE REQUIREMENTS. AGENTS DEFINED— No statutory definition. AGENTS' LICENSES— Chap. 34, Sec. 56. "* * * No person shall act as agent of any insurance company, corporation, association, partnership or combination of persons incorporated, organized, associated, or combined under or by virtue of the laws of this or any other State of the United States or any foreign country, directly or indirectly taking risks or trans- acting any kind or form of insurance business in this State, without procur- ing from the Insurance Commissioner a certificate of authority, stating that such company, corporation, association, partnership, or combination of persons, has complied with all the laws of this State relative to such com- panies, corporations, associations, partnerships, or combinations of persons, which certificate shall continue in force until the first of March next after its issue unless revoked for cause." Penalty for violation, fine not ex- ceeding $1000. Agent acting for an unlicensed company becomes per- sonally liable for all contracts made by or through him on behalf of such company. Applications for licenses should be made by company officials under seal. License required for each member of an agency firm. ANNUAL STATEMENTS— Must be filed in January, showing condition as of December 31 preceding. ANTI-COINSURANCE — No prohibition of use of coinsurance clauses. ANTI-COMPACT — No law forbidding co-operation. ANTI-DISCRIMINATION— No provision. ATTORNEY — The Auditor of State must be empowered to accept service of legal process. CANCELLATION OF POLICY— At least five days' notice to insured is required. CAPITAL REQUIRED — Company must possess at least $100,000 of actual capital, invested in approved securities. A mutual company having $100,- 000 of available cash assets may be licensed. COMMISSIONS TO NON-RESIDENTS— Commissions must be received by resident agents. DEPOSIT None required. Foreign company must have $200,000 on deposit in some State in assets, in which domestic companies are permitted to in- vest. See "Investments Prescribed." DOMESTIC COMPANIES — Five or more persons may form a company by signing and acknowledging agreement, and paying in ten per cent of capi- tal. Agreement and certificate of payment of ten per cent of capital must be filed with the Secretary of State. Company must be examined and licensed by the Insurance Commissioner, and no company will be licensed until at least $100,000 has been paid in. 434 FIRE INSURANCE LAWS, TAXES AND FEES. EXAMINATIONS— Code, Chap. 34, Sec. 3. "The Insurance Commissioner may from time to time examine the methods of business of any company, corporation, association, partnership, or combination of persons doing any kind or form of insurance business in this State and may require them to answer such questions as he may think necessary for the purpose of such inquiry; and if in his opinion any such company, corporation, association, partnership or combination of persons is doing business in an illegal, im- proper or unjust manner, or failing to adjust and pay losses and obligations when they become due, excepting claims to which there is a substantial defense, he may order it to discontinue such illegal or improper method of doing business and may order it to adjust and pay its losses and obligations as they become due." If a company fails to obey such an order within ten days, the Commissioner may apply for an injunction or a receiver. (The Auditor of State is Insurance Commissioner.) FEES — For receiving and filing annual statements, $10; for certificate of authority (one for each member of firm), $5; for examinations, expenses incurred; for Auditor's services as attorney, $10 per annum (payable July I ) ; for license to company, $10 ; for certificate of condition or copy of report, $5 ; for filing any additional paper required by law, 25 cents. Fees payable to Insurance Commissioner. FIRE DEPARTMENT TAX— No provision. FIRE MARSHAL — The State Fire Marshal has charge of the investigation of all fires causing damage exceeding $50, and all fires of unknown origin. See "Taxes." FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Chap. 34, Sec. 42, relating to companies of foreign countries, provides that "every such insurance company shall, before admission to do business in this State, furnish to the Insurance Commissioner a copy * * * of its annual report made in the country where it was organized, * * * and it shall furnish annually * * * a statement of its affairs in the United States * * *." GENERAL PENALTY — For offenses for which no specific penalty is pro- vided, a fine not exceeding $500. IMPAIRMENT — No specific limit permitted. Domestic stock company must make good any impairment ascertained to exist. Sec. 39. (Mutual com- pany.) "If the assets, less the unsettled claims and other absolute liabili- ties amount to less than the sum requisite for reinsurance, he (the Insur- ance Commissioner) shall call upon it to make up such deficiency within such reasonable time as he shall fix." On failure of company to comply with such requirement, he shall apply for an injunction to restrain it from doing further business, and shall revoke its license. INVESTMENTS PRESCRIBED— The capital of a domestic company or the deposit required of a foreign company may be invested in stocks or bonds of some one or more of the States of the United States, or in the bonds of the United States, or in bonds secured by mortgage or deed of trust on WEST VIRGINIA. 435 real estate, worth double the amount loaned thereon, free from any prior incumbrance, and having undoubted title. LICENSED BROKERS— No provision. See "Agents' Licenses." LIMIT ON A SINGLE RISK— Chap. 34, Sec. 46. "No such insurance com- pany shall insure against loss by fire or inland navigation nor expose itself to any such loss by any one risk, for any greater amount in proportion to its capital than companies which are organized under the laws of this State." LLOYDS — Chap. 34, Sec. 76. "Whenever the word company is used in this act it shall be held to include corporations, associations, partnerships or individuals." MUTUAL COMPANIES — Provision is made for organization of farmers and other mutual companies. Policy must specify amount of insured's li- ability. Mutual companies must report to the Auditor. PRELIMINARY DOCUMENTS— Company must file with the Insurance Commissioner a copy of its charter or articles of association, and a statement showing its financial condition and obtain a certificate of authority to do business in the State. PUBLICATION— Not required. RECIPROCAL LAW — No provision, except that mutual companies of West Virginia must be permitted to do business in any State in which a mutual company seeking admission to West Virginia is located. REINSURANCE — Chap. 16, Acts 1901, Sec. 2. "Every life or other insur- ance company which shall, in any manner whatsoever, accept the whole or any part of a risk on property located in this State, and shall transfer in any manner whatsoever to any company not authorized to transact business in this State, any risk or liability assumed by said first named company, or any part thereof, shall be liable to the penalty provided for under Sec. 7 of this act." Penalty for violation, $100 to $500; penalty for non-payment of fine within thirty days, revocation of license for one year, and until judgment is paid. Reinsurance policies need not be signed by resident agents. All reinsurances must be reported annually. REINSURANCE RESERVE — Fifty per cent of premiums on fire risks not perpetual, and ninety-five per cent on perpetual risks ; 100 per cent of ocean marine premiums, and forty per cent of time hull premiums. RESIDENT AGENTS— Chap. 16, Acts 1901, Sec. i. "That no fire or other insurance company or association not incorporated under the laws of this State, authorized to transact business herein, shall make, write, place, or cause to be made, written or placed, any policy, duplicate policy, or contract of insurance of any kind or character, or a general or floating policy upon property situated or located in this State, or upon life, except after the said risk has been approved in writing by an agent who is a resident in this State, regularly commissioned and licensed to transact insurance business herein, who shall countersign all policies so issued, and receive the com- mission 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 436 FIRE INSURANCE LAWS, TAXES AND FEES. insurance on all property located in this State, and that no person shall pay or forward any premiums, applications for insurance, or in any manner secure, help or aid in the placing of any fire or other insurance, or effect any contract of insurance upon real or personal property, or upon life within this State, 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." Sec. 6, excepts railroad property and prop- erty in transit. Penalty for violation, $ioo to $500, and non-payment of judgment for thirty days is punishable by revocation of license for one year and until such judgment has been paid. SEMI-ANNUAL STATEMENTS— None required, except tax statements in Wheeling. STANDARD POLICY— New York form is prescribed to be used, "with such changes and additions as the Insurance Commissioner may deem proper." TAXES — ^A tax of two per cent is levied upon the gross premiums collected in the State, less premiums returnable for cancellation, by fire insurance com- panies, payable March i. A bond may be required to secure the payment of the tax. Property of companies is taxed as is other property. Taxes payable to Insurance Commissioner. The law creating the office of fire marshal provides for a tax of one-half of one per cent on gross premiums received in West Virginia during the preceding year, payable into the State Treasury on or before March i, annually, for the maintenance of the office. TAX STATEMENTS— State, must be filed by Januarj' 31. City of Wheel- ing, must be filed by January 15 and July 15, for the periods or six months next preceding those months, respectively. VALUED POLICY— Chap. 33, Acts of 1899. "All fire insurance companies doing business in this State shall be liable, in case of total loss by fire or otherwise, as stated in the policy on any real estate insured, for the whole amount of insurance stated in the policy of insurance upon said real estate ; and in case of partial loss by fire or otherwise, as aforesaid, of the real es- tate insured, the basis upon which said loss shall be computed, shall be the amount stated in the policy of insurance effected upon said real estate, and the insured shall have the right to enforce his claim for said loss in any court having jurisdiction." This law was understood to have been re- pealed in 1907, but the Auditor of State wrote, in July, 1908, that "the valued policy law of 1899 is still on our statute books, no change having been made in the provisions of the same." In 1909, we were advised that the question as to whether or not the law of 1899 is in force, had been sub- mitted to the attorney-general for his opinion, and that he held that the law of 1899 is still in effect. COUNTY TAXES AND FEES. RANDOLPH — On premiums, one-half per cent. WEST VIRGINIA. 437 MUNICIPAL TAXES AND FEES. BLUEFIELD — For each company, $10.50, payable July i. CHARLESTON — For each company or agent $10.50, payable July i. CHARLESTOWN — For each company, $12.50, payable June 30. HUNTINGTON— For each company, $5, payable July i. MARTINSBURG — For each company, $20, payable January i. PARKERSBURG — For each company, $5.50, payable July i. WHEELING — On gross premiums, one-half per cent, payable July 15 and January 15. See "Tax Statements." WISCONSIN. STATE REQUIREMENTS. AGENTS DEFINED— Sec. 1977, Statutes of 1898 (as amended in 1905). "Every person or member of a firm or corporation who solicits insur- ance on behalf of any insurance corporation or person desiring insurance of any kind, or transmits an application for a policy of insurance, other than for himself, to or from any such corporation, or who makes any con- tract for insurance, or collects any premium for insurance, or in any man- ner aids or assists in doing either, or in transacting any business of like nature for any insurance corporation, or advertises to do any such thing, shall be held to be an agent of such corporation to all intents and purposes, unless it can be shown that he receives no compensation for such services. This section shall not apply to agents of licensed fraternal beneficiary so- cieties, or mutual fire insurance companies of this State, except those or- ganized under Sees. 1896, 1897 and 1898." AGENTS' LICENSES — Agents of companies required to pay any tax or li- cense fee to the State must procure from the insurance corporation licenses which expire January 31 in each year. Chap. 290, laws of 1909. Sec. 1976. "No person, officer or broker, agent or sub-agent of any insurance corporation of any kind required to pay * * * any tax or license fee to the State, shall act or aid in any manner in transacting the business of or with such corporation in placing risks or in collecting any premiums or assessments or effecting insurance therein, without first procuring from the insurance corporation a certificate of authority; nor shall any such person, officer, broker, agent or sub-agent, after such certificate shall have expired, or after revocation by the Commissioner of Insurance of such certificate or of the license of such corporation and until a new certificate or license shall have been issued to him, do or perform any such act for or in behalf of any insurance corporation." Chap. 116, laws of 1909. Sec. 2. "No such certificate shall be issued by any other than the officers or resident agent of such corporation signing the policies of insurance issued by it or a person duly authorized thereto in writing by such officers or resident agent, after a copy of such authority has been filed in the office of the Commissioner of Insurance; nor unless the same shall be in such form as prescribed by the Commissioner of Insurance and numbered con- secutively as issued by the person authorized thereto, and a statement or statements of the names and residences of all persons to whom such cer- tificates are issued on any day, in such form as prescribed by the Com- missioner, together with the fees provided for certificates to agents by Sec. 1972, shall be mailed to said Commissioner on the day such certificates are issued." Sec. 3. "* * * All certificates hereafter issued shall expire WISCONSIN. 439 annually upon the expiration of the license of the company issuing the same, unless previously revoked, pursuant to law." The Insurance Depart- ment does not license agency corporations. Licenses are issued only to individuals, and each member of a firm must be licensed. Sec. 1976. "5. No person shall be required to hold such certificate of authority from more than one company for the purpose of acting as agent and receiving com- missions for transacting the kind or kinds of insurance authorized by such certificate for any other company in co-operation with any person holding such certificate of authority for such other company. This sub-section shall not applj- to life insurance." Every person violating the provisions of this section shall be guilty of a misdemeanor and be punished by a fine of not more than $500 for each offense. ANNUAL STATEMENTS— Must be filed in January, showing condition as of preceding December 31. Time may be extended for due cause, upon re- quest, not longer than sixty days. ANTI-COINSURANCE— Sec. 19430, Statutes of 1898. "No fire insurance company doing business in this State shall issue any policy containing any provision limiting the amount to be paid in case of loss below the actual cash value of the property, if within the amount of the insurance for which premium is paid, and no such company shall require the use of any so- called coinsurance clause or rider to be attached', or made a part of, any policy except at the option of the insured, and every such company shall give to every applicant for insurance the rate of premium demanded with and without such clause or rider. * * *" Penalty for violation, revo- cation of license, or, if a domestic company, forfeiture of charter. ANTI-COMPACT— Sec. 194b, Statutes of 1898. "No fire, fire and marine, or marine and inland insurance company or association, its agents or repre- sentative doing business in this State, shall, either directly or indirectly, enter into any contract, agreement, combination or compact with any other such company or companies, or its or their agents or representatives, for the purpose of establishing and maintaining a fixed schedule or schedule of rates; provided, that in cities and villages it shall be lawful for the local board of underwriters, incorporated under the statutes of this State, and in case of the non-existence of such board therein, for an association of the local agents, in such city or village, to, from time to time, establish and maintain rates therein, and for them and such companies represented by them to enter into any lawful contract or agreement to so establish and maintain rates so made ; all such schedules shall at all reasonable times be open to the inspection of the insured or any person applying for insur- ance. * * *" Penalty for violation, $500 and revocation of license. ANTI-REBATE— Sec. 19550. "2. a. No * * * insurance company or any agent thereof shall make any contract or agreement as to such con- tract other than as plainly expressed in the policy issued pursuant thereto. * * * b. No insurance company or any officer, agent, director or employee thereof, doing business in this State, shall pay, * * * allow or give 440 FIRE INSURANCE LAWS, TAXES AND FEES. or oifer to pay, * * * allow or give, nor shall any person receive, any rebate of premium payable on the policy, or any special favor or advantage whatever in the dividends or other benefits to accrue thereon, or any valu- able consideration or inducement whatever not specified in the policy, c. No person shall as agent receive any compensation for effecting insur- ance upon his own property, life or other risk, unless during the twelve months preceding, as the agent for the company assuming such risk, he shall have effected other insurance therein, the premium on which shall exceed the premium on the insurance so effected on his own risk. d. This section shall not prevent the payment of the whole or any part of any commission to a domestic corporation, except that no commission shall be so paid where any officer, employee or stockholder of such corporation shall be interested in the property or risk, the insurance on which produces such commission, otherwise than as an agent authorized under section 1976. e. Any agent may pay the whole or any part of his commissions to : ( i ) An agent other than a life agent, holding a certificate of authority under sec- tion 1976 for writing the kind of insurance for which such commissions are paid. (2) A non-resident insurance agent, or any insurance company authorized in this State, as to insurance upon property owned by non-resi- dents or located wholly outside of this State. (3) A non-resident agent of the fidelity or surety company paying such commissions. Except as aforesaid, no agent shall pay the whole or any part of the commissions upon any policy to any other person, f . Provided, that any company may make distribution of savings, earnings or surplus to any class of policy- holders, without having specified such dividends or distribution in the policy, where a schedule is first filed with the Commissioner of Insurance, h. Provided, that the furnishing of information, advice or service by any company, officer, agent, director or employee thereof, with regard to any risk or for the purpose of reducing the loss or liability to loss, shall not be a violation of this section. 3. No * * * insurance company or any agent thereof shall at the time of soliciting insurance or issuing a policy, or at any time in consideration of or in connection with a policy issued or proposed to be issued, make or offer to make any contract or agreement whatever for any deduction from any premium or any addition to any dividend or other benefit whatever, on account of services rendered or to be rendered by the applicant for the policy or any person interested therein, either as an advisor of the company or as a member of an advisory or similar board or body or in any other capacity or manner whatever ; nor contract for, sell or offer for sale any stock of such * * * insurance company or any stocks, bonds or other certificates representing any interest or property in any organized company or corporation which shall at the time be under any contract or agreement whatever with such * * * insurance company, or own or control any of the stock thereof, or in any case where any part of the stocks, bonds or certificates of indebtedness of such company or corporation shall be owned or held by such * * * in- WISCONSIN. 441 surance company. No person shall so contract with any such company or agent thereof, or receive any such favor, privilege or advantage whatever, within the meaning of this act. 4 a. Notwithstanding any violation of this section the policy shall be valid, but the insured, having knowingly and wilfully violated any provision of this section, shall be entitled to re- cover from the company only such proportion of the amount otherwise payable under the policy or contract of insurance as the amount of the premium or premiums which have become payable, according to the terms of the policy, deducting any rebate and the value of any special favor or advantage or consideration or inducement in violation of this section, bears to the amount of such premium or premiums, b. Any company, officer, director, agent or employee thereof violating this section and any other person knowingly and wilfully * * * violating this section shall be , punished by a fine of not less than fifty dollars, nor more than three hun- dred dollars, or by imprisonment in the county jail for a term not exceed- ing six months, or by both such fine and imprisonment." Sub-sections 5 and 5m provide a further penalty in the revocation of the agent's license, which may not be renewed for from six months to three years, as ordered by the Commissioner. Self -incriminating testimony is required under an immunity provision. The State does not attempt to regulate rates for fire insurance, and companies may vary rates from board rates or between diflferent applicants for insurance. Sec. 1943/ of the statute is repealed. ATTORNEY — The Insurance Commissioner must be empowered to accept service of legal process. In his absence, service may be made on any agent of the company. CANCELLATION OF POLICY— Sec. 1941-52, Statutes of 1898. "This policy shall be canceled at any time at the request of the insured, or by the company, by giving five days' notice of such cancellation, unless during a time in which the hazard shall be increased solely by the act of God, and in such case, and during such time of such increase of hazard, the company shall not cancel this policy, except upon sixty days' notice of such cancella- tion, without the consent of the assured. If this policy be canceled as here- inbefore provided, or become void or cease, the premium having been actually paid, the unearned portion shall be returned on surrender of this policy or last renewal, this company retaining the customary short rate; except that when this policy is canceled by this company, by giving notice it shall retain only the pro rata premium." Sec. 1946^, Statutes of 1898. "Any company, association or corporation transacting the business of insuring property against loss or damage from any cause shall, except as is other- wise provided by any provision applicable to any class of insurance com- panies, cancel any policy at any time, by request of the party insured, or his assignee, and return to said party the amount of premium paid, less the cus- tomary short-rate premium for the expired portion of the full term the policy has been issued." Mutual policies may be terminated on notice and payment of proportion of their existing claims. 442 FIRE INSURANCE LAWS, TAXES AND FEES. CAPITAL REQUIRED — Stock company must possess at least $100,000 of actual cash capital, and, upon beginning business, a surplus of at least 25 per cent of capital. Company writing both fire and marine insurance must have at least $150,000 capital. Mutual companies of other States must conform to the standard of solvency of Wisconsin companies. Lloyds must comply with the requirements of foreign companies. COMMISSIONS TO NON-RESIDENTS— Commissions must be received by resident agents and can only be divided between agents of the same com- pany licensed in Wisconsin. An agent cannot receive a commission upon his own insurance unless in the preceding year he has written more pre- miums upon the property of others than upon his own. DEPOSIT — None required of American companies. If a foreign company does not have at least $200,000 invested in bonds of the United States or of the States of New York or Wisconsin, such bonds to produce at least the average current rate of interest on such securities or in bonds or mortgages on unincumbered real estate worth fifty per cent more than the amount loaned thereon, and deposited with the proper official of one of the United States, it must deposit $50,000 invested in securities listed above, except bonds of the State of New York, in Wisconsin. DOMESTIC COMPANIES— No new company, either stock or mutual, can be organized except under the general law, which follows : Section 1806. "Subject to the conditions and in the manner prescribed by law, a cor- poration may be organized by fifteen or more residents of this State to transact the business of insurance and the articles thereof may be amended, in the manner provided in chapter 86 of the statutes, except that such articles and amendments shall be filed in the office of the Commissioner of Insurance, and shall be submitted to and approved by the Attorney General before filing." Chapter 86 is the general law for the organization of cor- porations. The fee is $25 for a corporation with a capital stock of not over $25,000 and one dollar for each additional $1000 of capital stock. Fire companies may insure against loss or damage to property on land, by fire, lightning, hail, tempest or explosion. A company may be organized to write both fire and marine insurance. The limitation upon the term of duration of domestic corporations has been removed. Fire companies may write windstorm and sprinkler leakage risks and automobile insurance. EXAMINATIONS — Whenever it is deemed expedient by the Commissioner, or whenever written charges are made by a responsible person against a company, the Commissioner is empowered and instructed to make an ex- amination into such company's affairs. He may also examine a company when he has information that it has violated the resident agents' law. Com- missioner shall revoke license of company found to be in unsound con- dition. FEES — For filing first declaration or statement with certified copy of charter $25 ; for filing annual statement, $25 ; for each certificate of authority issued to agent (one for each member of firm, and one for each company repre- WISCONSIN. 443 sented by an agent), $i ; for copies of papers on file, lo cents per folio ; affixing seal, 50 cents ; for service of process, $2 ; for examina- tions, actual expenses, and compensation to persons other than officers and employees of the State ; for examinations respecting violations of resident agents' law, $10 per day and expenses. Domestic mutual companies, ex- cept those organized prior to 1909 under Sees. 1896, 1897 and 1898, are exempt from the charter, annual statement and agency fees noted above. Each company guaranteeing a joint policy must pay full fees. Fees pay- able to Insurance Commissioner. Reciprocal provision. FIRE DEPARTMENT TAX— A tax of two per cent of all premiums received in cities or villages or towns having fire departments fulfilling standard conditions, must be paid on February i for the preceding year ending January i to the treasurer of such cities or villages or towns, by every underwriter who shall effect any fire insurance and by every person who shall act as agent for any fire insurance corporation or underwriter there- in. "And no person shall, in any such city, village or town, as underwriter, agent or otherwise, effect or agree to effect, or procure to be effected any insurance upon which the above duty is required to be paid until he shall have executed and delivered to such treasurer a bond in the sum of one thousand dollars with such sureties as such treasurer shall approve, con- ditioned that he will render to such treasurer on the first day of each February a just and true account, verified by his affidavit, of all premiums which, during the year ending on the first day of January preceding such report, shall have been received by him or any other person for him, or agreed to be paid for any insurance against loss or injury by fire in any such city, village or town which shall have been effected or agreed to be eflfected by him, and that he will on the first day of each February, pay to the said treasurer two per centum upon the full amount of such premiums. Every person who shall effect or agree to effect any fire in- surance in any such city, village or town without having executed and de- livered such bond or who shall wilfully omit to pay such duty shall, for each offense, forfeit one hundred dollars, which shall be paid into the treasury for' the support and maintenance of such fire department. In case the fire department of such city, village, or town be a voluntary de- partment or part paid, or either, having a treasurer or treasurers, all moneys received or collected by virtue of this section shall be paid to the treasurer of such department for the support and maintenance thereof exclusively " The method of payment of fire department dues is changed by Sec 1926m which is made to stand in lieu of the requirement of a bond, =4tement and payment by the agent, provided the tax is actually paid by the company The Commissioner is required to certify to companies be- fore November i a list of cities, etc., entitled to fire department dues, and the companies are required to file a statement and make payment of the .ame to the Commissioner with the annual report. The Commissioner orders the amounts collected for each city, etc., transmitted to it on or be- 444 FIRE INSoHANCE LAWS, TAXES AND FEES. fore May i, with a statement of the companies paying same. Fire patrols may be established in any city by an incorporated board of underwriters. Meetings of the latter may be attended by any person doing a fire insur- ance business, and each corporation represented is entitled to one vote. The year's expenses shall be levied on February i, on the receipts for the year ending January i preceding, but the assessments in any one year shall not exceed two per cent of premiums received. Penalty for failure to report business written fifteen days after notice, $50, and $50 for each additional day thereafter. FIRE MARSHAI^-A State fire marshal investigates fires. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Are re- quired to file home office statement. GENERAL PENALTIES — For neglecting to pay fees and obtain a license, or for violation of, or non-compliance with, any provision of law, or for re- moving a suit to a United States court, or for not making good an impair- ment when required, the Commissioner must revoke a company's license. For misrepresentation as to assets, capital, surplus or risks, $500 for first offense and $1000 for each subsequent offense. Sec. 19550. 5. "Any cor- poration violating any of the provisions of the laws of this State relating to insurance shall, where no other penalty is prescribed, be punished by a fine of not more than $5000, and any person violating any of the provisions of the laws of this State relating to insurance shall, where no other penalty is prescribed, be punished by a fine of not more than $1000, or by imprison- ment in the county jail not exceeding one year, or by both such fine and imprisonment." GUARANTY AND SPECIAL RESERVE FUNDS— Statutes of 1898, Sees. 1909-1914, provide for the establishment and maintenance of guaranty and special reserve funds in substantially the manner prescribed by the law of New York upon the same subject, which see. IMPAIRMENT — Limit permitted, domestic companies, twenty-five per cent; other companies, twenty per cent. INVESTMENTS PRESCRIBED— Sec. 1903. i. "Any domestic insurance corporation, where no other provision is made by law, may invest its capital as follows : a. In any bonds or notes secured on improved, unencumbered real estate within this State worth at least fifty per centum more than the sum loaned thereon, exclusive of buildings unless such buildings are kept insured to an amount which together with one-half the value of the land shall equal or exceed the loan, and the policy or policies of insurance there- on be assigned to and held by said corporation as collateral to such loan. b. Any lawfully authorized bonds or other evidence of indebtedness of the United States, or of any State of the United States, c. In the bonds or other evidences of indebtedness of any county, city, town, village, or school district of any State or territory of the United States or of the District of Columbia, d. In the first mortgage bonds of any railroad or other public service corporation of any of the States in which said insurance corporation WISCONSIN. 445 shall be doing business at the time of such investment. 2. Any other funds of such corporation may be invested : a. In like bonds or evidences of in- debtedness, or b. In the stocks and bonds or other evidences of indebtedness of any solvent dividend-paying corporation of any State in which said in- surance corporation shall be doing business at the time ol such investment, except stock in its own corporation or in any other insurance corporation. c. Upon the collateral security of any of the foregoing securities, provided that the market value of such securities shall, during the continuance of any such loan, be at least ten per centum more than the sum loaned thereon. 3. No such company shall invest in, acquire or hold, directl> or indirectly, more than ten per centum of the capital stock of any corporation, nor shall more than ten per centum of its admitted assets be invested in the stock or securities of any one corporation." Foreign companies are re- quired to invest their deposits in bonds of the United States or of Wis- consin or of New York; such bonds to be received by the treasurer at their par or current market value, or in bonds and mortgages on unin- cumbered real estate, worth fifty per cent more than the amount loaned thereon. No domestic company shall purchase or hold real estate except such as may be necessary for the convenient accommodation of its busi- ness, which shall not be in excess of twenty per cent of assets, and all other real estate acquired in satisfaction of legal debts shall be sold within five years from the date of the company's title thereto, but for sufficient cause the time of sale may be extended by the Insurance Commissioner. LICENSED BROKERS— Chapter 87, Laws of 191 1, provides for the licensing of agents to procure fire insurance policies in corporations not authorized to do business in the State, in consideration of a yearly fee of $15, or of $50 in a city having more than 100,000 inhabitants. Such licenses expire January 31, and are revokable at any time. The law re- quires the execution of an affidavit by the agent to the effect that he has been, after diligent effort, unable to procure the amount of insurance re- quired to protect the property described from authorized companies. Such agent must keep records of his business and yearly, on or before February I, file a report with the Insurance Commissioner and pay a tax of two per cent on the premiums collected. A bond of $icoo is required from such agent. . .j j\ LIMIT ON A SINGLE RISK— All companies (except as otherwise provided) ten per cent (net) of admitted assets. Mutual companies, three times average policy or one-eighth of one per cent of insurance in force. Local city and village mutual companies, $1500 ($3000 under certain speafied conditions) ; town companies, $3500 on certain specified classes. LLOYDS— Sec. 1945^, Statutes 1898. "Persons and corporations of this State may unite with themselves or with persons and corporations of adjoining States in making and entering into agreements to indemnify each other for any losses arising from fire to their manufacturing plants or the stock, manufactured or unmanufactured, on hand, on such terms, in such man- 446 FIRE INSURANCE LAWS, TAXES AND FEES. ner, in such proportions and amounts, and during such time as may be agreed upon between them in writing; and for the purpose of the con- venient transaction of such business and the speedy payment of losses in- curred therein, they may appoint an agent or attorney to act for them, or each of them, in the said business, and may pay in and accumulate a fund for the payment of such losses and of the expenses of the business. Before making any such agreement they shall appoint, by writing, filed with the Commissioner of Insurance, an agent or attorney, resident of this State, on whom all process or papers concerning or growing out of the said business may be served, and service on such agent shall be equivalent to personal service on all such persons and corporations. They shall at all times main- tain an office in some city of over 10,000 inhabitants in this State, and all such business shall be transacted at such office. Each person and corpora- tion so making or signing any such contract shall be severally, but not jointly, liable thereon for their proportionate amount of the indemnity in such contract stated, and shall not be liable otherwise or for any greater sum." Sec. 1915, Statutes of 1898. " * * * Lloyds, individual under- writers and fire associations, other than stock or mutual corporations, may be admitted by complying in all respects with the laws applicable to fire insurance corporations organized under the laws of any foreign govern- ment." Sec. 1978, Statutes of 1898. "No corporation, association, partner- ship or individual shall do any business of insurance of any kind or make any guaranty, contract or pledge for the payment of annuities or endow- ments or money to the families or representatives of any policy or certifi- cateholder, or the like, in this State, or with any resident of this State, ex- cept according to the conditions and restrictions of these statutes. And the term 'insurance corporation,' as used in this chapter, may be taken to em- brace every corporation, association, partnership or individual engaging in any such business." Marine insurance may be transacted by a Lloyds having not less than twenty-five subscribers, of whom a majority must at all times be citizens of the State. Each underwriter must pay in at least $500. A license fee of two per cent of gross premiums is charged. MISCELLANEOUS — Provision is made for the creation and maintenance of "guaranty surplus" and "special reserve" funds. In joint policies guaran- teed by two or more companies, the severalty of the contract may be ex- pressed in the heading of the policy. Copy of application or representa- tions of insured must be attached to policies. Insurance Commissioner is not permitted to receive any gift, payment for extra services or for pur- poses of legislation, or anything beyond the statutory payment from a company which he has examined. License of company failing to pay final judgment for sixty days shall not be renewed while judgment remains unpaid. Penalty for company continuing business thereafter, $1000; penalty for violation by agent, $100 to $500. Commissioner may take charge of delinquent domestic companies. MUTUAL COMPANIES— See "Domestic Companies," also "Capital Re- WISCONSIN. 447 quired." Town insurance companies may be organized by twenty-five or more persons residing in the same town, or in adjoining towns, not ex- ceedmg thirty in number, except in counties containing a larger number, when all towns may be included, owning at least $25,000 worth of insur- able property. They are not required to use the standard policy form. Other classes of mutual companies must be organized under general law. Sec. 1896, et seq. See "Domestic Companies." Titles (and policies) must contain the word "mutual." Mutual companies of other States governed by reciprocal provision. Directors failing for thirty days to endeavor to collect assessments, by suit if necessary, become individually liable, and are also liable on policies issued in excess of amount allowed by law to be written on a single risk. They are also liable on policies written upon property in any State in which company is not licensed to operate. PRELIMINARYDOCUMENTS— Company must file with the Commis- sioner a certified copy of its charter and a verified statement showing its financial condition at date of application, and a copy of its last annual re- port; also a stipulation that it will not remove to a United States court any suit begun in a State court. An examination must precede admission. Foreign companies must file copy of charter duly certified by secretary, certificate of deposit, certificate of compliance, copies of printed matter issued by the company, and copy of policy form. Certificate of compliance with laws of company's home State not required annually. Inter-insurers may be admitted on filing authority to Commissioner to accept service of process, and an examination as in other cases. PUBLICATION — Publication by company not required, except that when a company applies for admission to the State a notice of its application shall be published, at its expense, at least once weekly for three successive weeks in two newspapers to be designated by the Commissioner. Misleading advertisements forbidden; foreign companies may only advertise United States assets. Capital advertised must be paid up. RECIPROCAL LAW— Sec. 1221, Statutes of 1898. "Whenever the laws of any other State of the United States shall require of life, fire, accident or inland navigation insurance companies organized under the laws of this State and doing business in such other State any deposit of securities for the protection of their policyholders or otherwise, or any payment of taxes, fines, penalties, certificates of authority, license fees or otherwise, greater than the amount required by the laws of this State for the same purposes from similar companies organized under the law of such other State, and doing business in this State, then all such companies of such other States doing business within this State shall make the same deposit with the State Treasurer, and shall pay him the same sum for taxes, fines, penalties, certifi- cates of authority, license fee or otherwise, as a condition to the issue of a license to them as is required to be paid by the laws of such other State." REINSURANCE— Par. 42. (Chap. 190, Sec. 2, Laws of 1899.) "No fire 448 FIRE INSURANCE LAWS, TAXES AND FEES. 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 of 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 reinsure excess loss by one or more fires. No fire insurance company or association shall reinsure, or assume as a reinsuring company, or otherwise, in any manner or form whatsoever, the whole or any part of any risk or liability, covering property located in this State, of any insurance company or association not authorized to transact business in this State." Annual returns must be made of all reinsurances, in whatever way effected, under penalty of pre- sumption that it is guilty of violation of law. Penalty for violation, $500 for each offense; penalty for non-payment of fine within sixty days after judg- ment, revocation of license for one year and until fine is paid. Par. 11. (Chap. 394, Law of 1903, Sec. i.) "It shall be lawful for and any fire insur- ance company or association authorized to transact business in the State of Wisconsin, is hereby fully authorized and empowered to reinsure the whole or any part of any fire insurance risk taken by it on any property situated in the State of Wisconsin, in any responsible company or companies, whose capital stock and surplus shall equal or exceed one hundred thousand dollars. Provided, any fire insurance company or reinsurance company licensed to do business in the State of Wisconsin shall, on retiring from business before the expiration of its policies or contracts, file with the Insurance Commissioner a written notice of such intention together with a sworn statement of its outstanding liabilities or obligations under such policies or contracts, and shall reinsure such liabilities or obligations in a company authorized to do business in this State. All laws, acts and parts of acts, whether general or special, contravening or conflicting with the provision of this act, are hereby repealed." Under date of October 18, 1907, the Attorney-General of Wisconsin rendered the following opinion upon the question of reinsurance : "The former chapter ( 190) appears to conflict with the latter (394) in so far as reinsurance is authorized "in * * * any responsible company or companies, whose capital stock and surplus shall equal or exceed $100,000," such companies being required upon retiring from the State to reinsure their outstanding obligations in a company "authorized to do business in this State." In so far as Sec. 2, Chap. 190, laws of 1899 prohibits reinsurance in a company not author- ized to do business in this State it would appear to be in conflict with that provision of Chap. 394, laws of 1903, authorizing such reinsurance in a responsible company having the required capitalization, and would be WISCONSIN. 449 repealed thereby. Consequently I feel constrained to hold, as my opinion, that a fire insurance company authorized to do business in this State may be permitted to reinsure any portion of its risks in a responsible company which may not be authorized to do business in this State, but whose capital stock and surplus equal or exceed $100,000." The signing of policies is governed entirely by the law quoted below, under "Resident Ageijts." Reinsurance policies need not be signed by resident agents. REINSURANCE RESERVE— One-half of the premiums on all unterminated fire risks, and the whole premiums on unexpired marine risks. RESIDENT AGENTS — Sec. 1919a. "i. No policy of insurance shall be is- sued or delivered in this State by any company, except through an agent who shall be a resident of this State and hold a certificate of authority under Sec. 1976, for the kind of insurance effected by such policy. 2. In case of fire insurance, the agent shall countersign and enter the policy in a permanent record to be kept by him for that purpose. Such agent shall be paid the commission on the policy. 3. The books of every person trans- acting or purporting to transact the business of an insurance agent shall at all times be open to the inspection of the Commissioner of Insurance, his deputy or examiners, and a refusal to permit such inspection shall be prima facie evidence of a violation of this section. 4. This section shall not pre- vent any insurance placed in violation thereof taking effect. 5. Any com- pany or person soliciting or placing insurance without complying with this section shall, in addition to other penalties provided by law, be liable per- sonally upon such policy or contract of insurance to the same extent as the company issuing the same. 6. This section shall not apply to : (a) Poli- cies issued directly from the home office of any company organized under the laws of this State, (b) Policies covering property in transit while in the possession or custody of any common carrier, or the rolling stock or other property of any common carrier used and employed by it as a com- mon carrier of freight or passengers, (c) Policies issued directly, by any mutual company or any association doing business on the inter-insurance or reciprocal plan, on which no commissions are paid, except to a home office manager or an attorney in fact for such company or association, as specifically authorized by the insured." Penalty for violation, revocation of license for from six months to three years. Sec. 19191:. "Nothmg contained in Chapter 190, Laws of Wisconsin for the year 1899, shall be construed as preventing any insurance company which has lawfully issued a policy of insurance upon property within this State, from reinsuring said risk or any portion thereof, in any authorized company without having said policy of reinsurance signed by a local agent in this State." SEMI-ANNUAL STATEMENTS— None required, except for fire patrol pur- STANDARD POLICY— A standard form of policy, varying slightly from the New York form, is prescribed to be used by all except local mutual com- panies Lightning losses are covered by the standard policy, as amended 450 FIRE INSURANCE LAWS, TAXES AND FEES. in 1907. Penalty for violation, $50 to $100 for first offense, and $100 to $250 for each subsequent offense. See "Miscellaneous." Inter-insurance associations need not use standard policy form, but contract must contain in substance the provisions of the standard policy. TAXES — Sec. 1219, Statutes of 1898 (as amended in 1909). i. "Every com- pany transacting the business of insurance against fire, or by the risk of inland navigation and transportation, shall pay to the State on or before the thirty-first day of January in each year, a tax of two per centum on the amount of the gross premiums received for direct insurance, less re- turn premiums and cancellations on direct insurance, by such company during the preceding year, in this State. Direct insurance shall include all insurance other than reinsurance. In case any company shall discon- tinue business in this State and reinsure the whole or a part of its risks without making payment of this tax, the company accepting such rein- surance shall pay the tax; and if several companies shall make such re- insurance the tax shall be apportioned between such companies in propor- portion to the original premiums upon the business, in this State, so re- insured by each such company. Upon the payment of the tax herein provided, such company may be licensed to transact its business until the last day of January in the ensuing year, unless sooner revoked or for- feited according to law." 2. Excepting domestic mutual insurance com- panies included in sections 1220 or 1220a and companies heretofore or- ganized under sections 1896 to 1900, inclusive, no domestic mutual in- surance company shall be required to pay any taxes, fees, or charges to the State by reason of this or any other section of the statutes now in force or hereafter enacted unless the same shall, by specific reference to this section, expressly include such company." Section 1219m. "Any company not authorized to do business in this State, which shall insure any property situated in this State against fire or the risk of inland navi- gation or transportation, shall pay to this State a tax upon the gross premiums paid to such company on such insurance computed at the rate per centum prescribed by section 12 19, and on default of any such com- pany in the payment of such tax before the first day of March next suc- ceeding, the owner of such property shall pay such tax. Every person paying more than one hundred dollars premiums to any one such company in any year shall report the same in writing by mail to the Commissioner of Insurance before the first day of March next succeeding, and if such re- port be not made and such tax remains unpaid for sixty days after the said first day of March, the tax shall be increased by one-tenth for every month during which such tax remains unpaid after the expiration of said sixty days." Fire marshal tax, three-eighths of one per cent on gross premiums less return premiums, payable through Insurance Commissioner. TAX STATEMENTS — For computation of license fee (annual statement), by January 31; for fire department taxes, February i; for support of fire patrols, April i and October i. WISCONSIN. 451 VALUED POLICY— Sec. 1943, Statutes of 1898. "Whenever any policy of insurance shall be written to insure any real property, and the property insured shall be wholly destroyed, without criminal fault on the part of the insured or his assigns, the amount of the insurance written in such policy shall be taken conclusively to be the true value of the property when in- sured, and the true amount of loss and measure of damages when de- stroyed. COUNTY TAXES AND FEES. None. nUNICIPAL TAXES AND FEES. See "Fire Department Tax." JANES VILLE— Two per cent of premiums, payable February i, of which one per cent is for fire police patrol, and one per cent is for the State fire- men's pension fund. MILWAUKEE— Fire insurance patrol, two per cent of net premiums; fire department, two per cent of net premiums. Every agent must, annually, on or before February 10, file his name and address with the treasurer of the fire department. WYOMING. STATE REQUIREMENTS. AGENTS DEFINED— Insurance Laws, Sec. 26. "* * * The term agent or agents used in the foregoing section shall include an acknowl- edged agent or surveyor, or any other person or persons, who shall in any manner, directly or indirectly, transact or aid in transacting the insur- ance business of any insurance company not corporated by the laws of this State. The provisions of the foregoing section relative to foreign companies shall apply to all such companies, partnerships, associations or individuals, whether incorporated or not. * * *" AGENTS' LICENSES — Agents must procure licenses, which expire annually on December 31. Agents must give bond for $500 in fire department towns. Agency corporation will be licensed, but names of members form- ing same must be filed. ANNUAL STATEMENTS— Must be filed within sixty days after January i, showing condition as to previous December 31. ANTI-COINSURANCE — No law prohibiting use of coinsurance clauses. ANTI-COMPACT— No statute forbidding co-operation. ANTI-DISCRIMINATION— No provision. ATTORNEY — The Insurance Commissioner must be appointed attorney to accept service of legal process. A resident of each county in which com- pany does business must also be authorized to accept service. CANCELLATION OF POLICY— No provision for notice to insured. CAPITAL REQUIRED — Company must possess an actual paid-up capital of at least $300,000, exclusive of special deposits. COMMISSIONS TO NON-RESIDENTS— No provision. DEPOSIT — None required. Foreign company must have $100,000 on de- posit with the proper official of one of the States or Territories of the United States. (Character of securities not specified.) DOMESTIC COMPANIES — Any number of persons may form a company by publishing notice of intention once a week for four weeks in county of location, and certifying name, object, amount of capital stock and location of principal office, to the Insurance Commissioner, who shall submit certificate to the Attorney-General for approval. When approved, certificate must be recorded, as are articles of incorporation. Capital must be not less than $300,000, nor more than $1,000,000. There shall be five to twenty-one directors. EXAMINATIONS — May be made whenever deemed expedient by the Com- missioner. Failure to pay expenses of examination will be punished by termination of business in the State. Insurance Law, Sec. 21. "The State Insurance Commissioner is hereby authorized and empowered to address WYOMING. 453 any inquiries to any insurance company in relation to its doings and con- ditions, or any other matter connected with its transactions, which he may deem necessary for the public good, or for a proper discharge of his duties, and it shall be the duty of any company so addressed to promptly reply in writing thereto." (R. S., 1899, Sec. 83.) Sec. 28. "It shall be the duty of the Insurance Commissioner, whenever he shall deem it ex- pedient to do so, in his judgment, to appoint one or more persons, not officers, agents or stockholders of any insurance company doing business in this State, to examine into the affairs and condition of any insurance company incorporated or doing business in this State, or to make such examination himself, and it shall be the duty of the officers or agents of such company or companies to cause their books to be opened for the inspection of the Insurance Commissioner or the person or persons appointed, and otherwise facilitate such examination so far as may be in their power so to do, and for the purpose of arriving at the truth in such cases, the Insurance Commissioner, or the person or persons so appointed by him, shall have power to examine, under oath, the officers or agents of any company or others, if necessary, relative to the business and condition of the said company; and whenever the Insurance Commissioner shall deem it best for the interests of the public so to do, he shall publish the result of such investigation in one or more papers of this State. * * * " FEES — For filing examination of application and issuing certificate, $50; for filing annual statement, $25; for filing acceptance of State constitution, $2.50; for every certificate of authority for agents, $1; for every copy of paper on file, 15 cents per folio; for certifying same on affixing seal, 50 cents ; for examinations, necessary expenses ; for publication of condensed statement, $12. Fees are payable to Insurance Commissioner. FIRE DEPARTMENT TAX— On January i and July i each year a tax of one per cent on premiums received in cities or towns containing fire de- partments must be paid to the city or town treasurer for the support of fire departments. Agents in such towns must give bonds for $500 to secure prompt and accurate returns and payments. Penalty for any viola- tion, fine of not more than $1000, or imprisonment for not longer than six months, or both. (This tax has never been paid, the law being re- garded as unconstitutional). FIRE MARSHAL — No provision for investigation of fires. FOREIGN COMPANIES' HOME OFFICE STATEMENTS— Not required. GENERAL PENALTIES— Sec. 50 provides for revocation of license for any violation of or non-compliance with the law. Sec. 27 provides a penalty of not exceeding $1000 fine, and imprisonment for thirty days to six months, for any violation of or non-compliance with law. License of company in unsound condition to be revoked. IMPAIRMENT— Limit of impairment permitted, twenty per cent. A larger impairment must be made good or business must cease. 454 FIRE INSURANCE LAWS, TAXES AND FEES. INVESTMENTS PRESCRIBED— The capital and accumulated funds of a domestic company may be invested in bonds and mortgages on unincum- bered real estate in Wyoming, worth double the amount loaned thereon, or in the stocks of Wyoming, or in the stocks or treasury notes of the United States, or in the stocks and bonds of any county or incorporated city in Wyoming, which may have been authorized to be issued by the Legisla- ture, or may lend the same, or any part thereof, on the security of such stocks, bonds or mortgages as aforesaid, and any surplus moneys over and above the capital stock may be invested in or loaned upon the pledge of public stocks of the United States, or of any one of the States, or upon the stocks, bonds or other evidences of indebtedness of any solvent dividend- paying institution incorporated under the laws of Wyoming or of the United States, except its own stock, provided that the current market value of such securities shall be, at all times, during the continuance of such loan, at least twenty per cent more than the sum loaned thereon. No domestic company shall purchase or hold real estate except such as shall be necessary for the convenient accommodation of its business, and all other real estate acquired in satisfaction of legitimate debts shall be sold or conveyed within three years after the company shall have perfected title thereto ; time of sale may be extended for sufficient cause by the Insurance Commissioner. LICENSED BROKERS— No provision. LIMIT ON A SINGLE RISK— Ten per cent of paid-up capital. LLOYDS — Insurance Law, Sec. 42. "Any insurance company, association or partnership organized for any of the purposes specified in this chapter, incorporated by or organized under the laws of any other State or the United States, or any foreign government, violating the provisions of this chapter, shall forfeit the sum of $500 to the State of Wyoming for each and every offense. * * *" MISCELLANEOUS— Sec. 37. "It shall not be lawful for any company organized upon the mutual plan to do business and take risks upon the stock plan; neither for a company organized as a stock company to do business upon the plan of a mutual insurance company." MUTUAL COMPANIES — Must not commence business with less than 200 members subscribing $25,000 of premiums, of which $5000 must be paid in cash, and the remainder in notes of solvent parties for not more than $500 each, and no two made by the same person or firm (unless the total is not more than $500). Notes shall be held until accumulation of profits aggregates amount of cash capital required of stock companies, except those given for policies subsequently terminated. The word "mutual" must be embodied in the title of a mutual company. Mutual associations not organized for profit and insuring only members may be organized by 200 persons. PRELIMINARY DOCUMENTS— Company must file with the Auditor, who is ex-officio the Insurance Commissioner, a certified copy of its WYOMING. 455 charter and a verified statement, showing its financial condition, an instru- ment accepting the State constitution, and an appointment of the State Auditor as an attorney for service. Foreign companies must also file a certificate of deposit and certified copy of power of attorney of United States manager. On receiving certificate to do business the same must be published in two newspapers of general circulation, one of which must be published at the capital. PUBLICATION — Statement must be published, once annually, in two news- papers of general circulation, one of which shall be published at the capital. Copies of same must be sent to State Auditor. In advertisements show- ing capital and assets, only cash capital and assets may be published. In addition, the Insurance Commissioner shall cause a condensed summary of the annual statement, showing capital, assets, liabilities, income, expendi- tures and business done in the State, to be published in a daily newspaper of general circulation in the State for six successive days, or in a weekly newspaper for six successive weeks, at the expense of the company; (fee, $12.) RECIPROCAL LAW — Insurance Laws, Sec. 33. "Whenever the existing or future laws of any other State or Territory of the United States shall require of insurance companies incorporated by or organized under the laws of this State, having agencies in such other State or Territory, or of the agents thereof, any deposit of securities in such State or Territory for the protection of policyholders, or otherwise, in any payment for taxes, fines, penalties, certificates of authority, license fees, or otherwise, greater than the amount required for such purposes from similar companies of other States or Territories, by then existing laws of this State, then, and in every such case, all companies of such States or Territories establishing or having theretofore established an agency or agencies in this State, shall be and are hereby required to make the same deposit for a like pur- pose with the Insurance Commissioner of this State, and to pay said In- surance Commissioner for taxes, fines, penalties, certificates of authority, license fees, or otherwise, an amount equal to the amount of such charges and payments imposed upon or required by the laws of such State or Ter- ritory of the companies of this State, or the agents thereof." (R. S., 1899, Sec. 3179.) REINSURANCE — No prohibition of reinsurance in unauthorized companies. REINSURANCE RESERVE — Fifty per cent of premiums on all unexpired risks under one year, and pro rata on those running more than one year. RESIDENT AGENTS— Law of 1903. No fire insurance company or cor- poration of another State or foreign country shall transact business in Wyoming except through duly constituted and appointed agents, resident therein, who shall maintain a bona fide, duly operated business office in the State, and shall issue and countersign all policies and contracts so issued. This statute does not apply to direct insurance covering the rolling stock of railroad corporations, operating between different States, or property re- 456 FIRE INSURANCE LAWS, TAXES AND FEES. ceived for shipment from one State to another, while in the possession or custody of railroad corporations or other common carriers. Violation of this statute may result in revocation and annulment of license, at the dis- cretion of the Auditor of State. SEMI-ANNUAL STATEMENTS— Not required, except for fire department taxes STANDARD POLICY— None prescribed. TAXES — Revised Statutes, Sec. 3788 (as amended). "There is hereby im- posed and levied upon each and every insurance company transacting the business of insurance within this State a tax of two and one-half per centum per annum upon the gross premiums received by it for insurance within this State from the beginning until the close of the calendar year ending on the thirty-first day of December at midnight, as disclosed by the annual report made by said company to the Insurance Commissioner, as now required by law. * * * Insurance companies shall be subject to no other taxation under the laws of this State than that imposed by this section, except taxes on real estate or personal property owned or held in trust by them, and such fees as are now or shall be hereafter im- posed as a condition precedent to the transaction of business within this State." Tax is payable by March 30 to the Insurance Commissioner. Penalty for violation, revocation of license. TAX STATEMENTS— Fire department tax statements must be filed July I and January i, showing business for (Sec. 43) "the year or part of a year ending on the next preceding first day of July or January." State taxes based on annual statement, which see. VALUED POLICY— No requirement. COUNTY TAXES AND FEES. None. MUNICIPAL TAXES AND FEES. None. UNITED STATES. TAX UPON CORPORATIONS. An Act of Congress, which was approved August 5, 1909, imposes a special excise tax upon insurance companies, measured by their net income over and above $5000 as follows : Section 38. "That every corporation, joint stock company or association, organized for profit and having a capital stock represented by shares, and every insurance company, now or hereafter organized under the laws of the United States or of any State or Territory of the United States or under the Acts of Congress applicable to Alaska or the District of Columbia, or now or hereafter organized under the laws of any foreign country and engaged in business in any State or Territory of the United States or in Alaska or in the District of Colum- bia, shall be subject to pay annually a special excise tax with respect to the carrying on or doing business by such corporation, joint stock company or asso- ciation, or insurance company, equivalent to one percentum upon the entire net income over and above five thousand dollars received by it from all sources during such year, exclusive of amounts received by it as dividends upon stock of other corporations, joint stock companies or associations, or insurance com- panies, subject to the tax hereby imposed ; or if organized under the laws of any foreign country, upon the amount of net income over and above five thousand dollars received by it from business transacted and capital invested within the United States and its Territories, Alaska, and the District of Columbia during such year, exclusive of amounts so received by it as dividends upon stock of other corporations, joint stock companies or associations, or insurance com- panies, subject to the tax hereby imposed : Provided, however, That nothing in this section contained shall apply to labor, agricultural or horticultural organi- zations, or to fraternal beneficiary societies, orders, or associations operating under the lodge system, and providing for the payment of life, sick, accident and other benefits to the members of such societies, orders or associations, and dependents of such members, nor to domestic building and loan associations, organized and operated exclusively for the mutual benefit of their members, nor to any corporation or association organized and operated exclusively for religious, charitable, or educational purposes, no part of the net income of which inures to the benefit of any private stockholder or individual. "Second. Such net income shall be ascertained by deducting from the gross amount of the income of such corporation, joint stock company or asso- ciation, or insurance company, received within the year from all sources, (first) all the ordinary and necessary expenses actually paid within the year out of in- come in the maintenance and operation of its business and properties, including all charges such as rentals or franchise payments, required to be made as a condition to the continued use or possession of property; (second) all losses 458 FIRE INSURANCE LAWS, TAXES AND FEES. actually sustained within the year and not compensated by insurance or other- wise, including a reasonable allowance for depreciation of property, if any, and in the case of insurance companies the sums other than dividends, paid within the year on policy and annuity contracts and the net addition, if any, required by law to be made within the year to reserve funds ; (third) interest actually paid within the year on its bonded or other indebtedness to an amount of such bonded and other indebtedness not exceeding the paid-up capital stock of such corporation, joint stock company or association, or insurance company, out- standing at the close of the year, and in the case of a bank, banking association or trust company, all interest actually paid by it within the year on deposits; (fourth) all sums paid by it within the year for taxes imposed under the au- thority of the United States or of any State or Territory thereof, or imposed by the government of any foreign country as a condition to carrying on business therein; (fifth) all amounts received by it within the year as dividends upon stock of other corporations, joint stock companies or associations, or insurance companies, subject to the tax hereby imposed : Provided, That in the case of a corporation, joint stock company or association, or insurance company, organ- ized under the laws of a foreign country, such net income shall be ascertained by deducting from the gross amount of its income received within the year from business transacted and capital invested within the United States and any of its Territories, Alaska, and the District of Columbia, (first) all the ordinary and necessary expenses actually paid within the year out of earnings in the main- tenance and operation of its business and property within the United States and its Territories, Alaska, and the District of Columbia, including all charges such as rentals or franchise payments required to be made as a condition to the con- tinued use or possession of property; (second) all losses actually sustained within the year in business conducted by it within the United States or its Territories, Alaska, or the District of Columbia not compensated by insurance or otherwise, including a reasonable allowance for depreciation of property, if any, and in the case of insurance companies the sums other than dividends, paid within the year on policy and annuity contracts and the net addition, if any, required by law to be made within the year to reserve funds ; (third) interest actually paid within the year on its bonded or other indebtedness to an amount of such bonded and other indebtedness, not exceeding the proportion of its paid-up capital stock outstanding at the close of the year which the gross amount of its income for the year from business transacted and capital invested within the United States and any of its Territories, Alaska, and the District of Columbia bears to the gross amount of its income derived from all sources within and without the United States; (fourth) the sums paid by it within the year for taxes imposed under the authority of the United States or of any State or Territory thereof; (fifth) all amounts received by it within the year as divi- dends upon stock of other corporations, joint stock companies or associations and insurance companies, subject to the tax hereby imposed. In the case of as- sessment insurance companies the actual deposit of sums with State or Terri- torial officers, pursuant to law, as additions to guaranty or reserve funds shall be treated as being payments required by law to reserve funds. UNITED STATES. 459 "Third. There shall be deducted from the amount of the net income of each of such corporations, joint stock companies or associations, or insurance companies, ascertained as provided in the foregoing paragraphs of this section, the sum of five thousand dollars, and said tax shall be computed upon the re- mainder of said net income of such corporation, joint stock company or asso- ciation, or insurance company, for the year ending December thirty-first, nine- teen hundred and nine, and for each calendar year thereafter ; and on or before the first day of March, nineteen hundred and ten, and the first day of March in each year thereafter, a true and accurate return under oath or affirmation of its president, vice-president, or other principal officer, and its treasurer or assistant treasurer, shall be made by each of the corporations, joint stock companies or associations, and insurance companies, subject to the tax imposed by this sec- tion, to the collector of internal revenue for the district in which such corpora- tion, joint stock company or association, or insurance company, has its principal place of business, or, in the case of a corporation, joint stock company or asso- ciation, or insurance company, organized under the laws of a foreign country, in the place where its principal business is carried on within the United States, in such form as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe, setting forth, (first) the total amount of the paid-up capital stock of such corporation, joint stock company or associa- tion, or insurance company, outstanding at the close of the year; (second) the total amount of the bonded and other indebtedness of such corporation, joint stock company or association, or insurance company at the close of the year ; (third) the gross amount of the income of such corporation, joint stock com- pany or association, or insurance company, received during such year from all sources, and if organized under the laws of a foreign country the gross amount of its income received within the year from business transacted and capital in- vested within the United States and any of its Territories, Alaska, and the Dis- trict of Columbia; also the amount received by such corporation, joint stock company or association, or insurance company, within the year by way of divi- dends upon stock of other corporations, joint stock companies or associations, or insurance companies, subject to the tax imposed by this section ; (fourth) the total amount of all the ordinary and necessary expenses actually paid out of earnings in the maintenance and operation of the business and properties of such corporation, joint stock company or association, or insurance company, within the year, stating separately all charges such as rentals or franchise pay- ments required to be made as a condition to the continued use or possession of property, and if organized under the laws of a foreign country the amount so paid in the maintenance and operation of its business within the United States and its Territories, Alaska, and the District of Columbia; (fifth) the total amount of all losses actually sustained during the year and not compensated by insurance or otherwise, stating separately any amounts allowed for depreciation of property, and in the case of insurance companies the sums other than divi- dends paid 'within the year on policy and annuity contracts and the net addi- tion, if any, required by law to be made within the year to reserve funds ; and in 460 FIRE INSURANCE LAWS, TAXES AND FEES. the case of a corporation, joint stock company or association, or insurance com- pany, organized under the laws of a foreign country, all losses actually sustained by it during the year in business conducted by it within the United States or its Territories, Alaska, and the District of Columbia, not compensated by insurance or otherwise, stating separately any amounts allowed for depreciation of prop- erty, and in the case of insurance companies the sums other than dividends, paid within the year on policy and annuity contracts and the net addition, if any, required by law to be made within the year to reserve fund; (sixth) the amount of interest actually paid within the year on its bonded or other indebted- ness to an amount of such bonded and other indebtedness not exceeding the paid-up capital stock of such corporation, joint stock company or association, or insurance company, outstanding at the close of the year, and in the case of a bank, banking association or trust company, stating separately all interest paid by it within the year on deposits; or in case of a corporation, joint stock com- pany or association, or insurance company, organized under the laws of a for- eign country, interest so paid on its bonded or other indebtedness to an amount of such bonded and other indebtedness not exceeding the proportion of its paid- up capital stock outstanding at the close of the year, which the gross amount of its income for the year from business transacted and capital invested within the United States and any of its Territories, Alaska, and the District of Colum- bia, bears to the gross amount of its income derived from all sources within and without the United States; (seventh) the amount paid by it within the year for taxes imposed under the authority of the United States or any State or Terri- tory thereof, and separately the amount so paid by it for taxes imposed by the government of any foreign country as a condition to carrying on business therein; (eighth) the net income of such corporation, joint stock company or association, or insurance company, after making the deductions in this section authorized. All such returns shall as received be transmitted forthwith by the collector to the Commissioner of Internal Revenue. "Fourth. Whenever evidence shall be procured before the Commissioner of Internal Revenue which in the opinion of the Commissioner justifies the be- lief that the return made by any corporation, joint stock company or association, or insurance company, is incorrect, or whenever any collector shall report to the Commissioner of Internal Revenue that any corporation, joint stock company or association, or insurance company, has failed to make a return as required by law, the Commissioner of Internal Revenue may require from the corporation, joint stock company or association, or insurance company, making such return, such further information with reference to its capital, income, losses and ex- penditures as he may deem expedient ; and the Commissioner of Internal Rev- enue, for the purpose of ascertaining the correctness of such return or for the purpose of making a return where none has been made, is hereby authorized, by any regularly appointed revenue agent specially designated by him for the purpose, to examine any books and papers bearing upon the matters required to be included in the return of such corporation, joint stock company or associa- tion, or insurance company, and to require the attendance of any officer or em- UNITED STATES. 461 ployee of such corporation, joint stock company or association, or insurance company, and to take his testimony with reference to the matter required by law to be included in such return, with power to administer oaths to such person or persons ; and the Commissioner of Internal Revenue may also invoke the aid of any court of the United States having jurisdiction to require the attendance of such officers or employees and the production of such books and papers. Upon the information so acquired the Commissioner of Internal Revenue may amend any return or make a return where none has been made. All proceedings taken by the Commissioner of Internal Revenue under the provisions of this section shall be subject to the approval of the Secretary of the Treasury. "Fifth. All returns shall be retained by the Commissioner of Internal Rev- enue, who shall make assessments thereon ; and in case of any return made with false or fraudulent intent, he shall add one hundred per centum of such tax, and in case of a refusal or neglect to make a return or to verify the same as aforesaid he shall add fifty per centum of such tax. In case of neglect occa- sioned by the sickness or absence of an officer of such corporation, joint stock company or association, or insurance company, required to make said return, or for other sufficient reason, the collector may allow such further time for making and delivering such return as he may deem necessary, not exceeding thirty days. The amount so added to the tax shall be collected at the same time and in the same manner as the tax originally assessed unless the refusal, neglect, or falsity is discovered after the date for payment of said taxes, in which case the amount so added shall be paid by the delinquent corporation, joint stock company or as- sociation, or insurance company, immediately upon notice given by the collector. All assessments shall be made and the several corporations, joint stock com- panies or associations, or insurance companies, shall be notified of the amount for which they are respectively liable on or before the first day of June of each successive year, and said assessments shall be paid on or before the thirtieth day of June, except in cases of refusal or neglect to make such return, and in cases of false or fraudulent returns, in which cases the Commissioner of In- ternal Revenue shall, upon the discovery thereof, at any time within three years after said return is due, make a return upon information obtained as above pro- vided for, and the assessment made by the Commissioner of Internal Revenue thereon shall be paid by such corporation, joint stock company or association, or insurance company, immediately upon notification of the amount of such assess- ment ; and to any sum or sums due and unpaid after the thirtieth day of June in any year, and for ten days after notice and demand thereof by the collector, there shall be added the sum of five per centum on the amount of tax unpaid and in- terest at the rate of one per centum per month upon said tax from the time the same becomes due. ., , . "Sixth When the assessment shall be made, as provided m this section, the returns together with any corrections thereof which may have been made by the Commissioner, shall be filed in the office of the Commissioner of Internal Revenue and shall constitute public records and be open to inspection as such. "Seventh It shall be unlawful for any collector, deputy collector, agent. 462 FIRE INSURANCE LAWS, TAXES AND FEES. clerk, or other officer or employee of the United States to divulge or make known in any manner whatever not provided by law to any person any informa- tion obtained by him in the discharge of his official duty, or to divulge or make known in any manner not provided by law any document received, evidence taken, or report made under this section except upon the special direction of the President; and any offense against the foregoing provision shall be a misde- meanor and be punished by a fine not exceeding one thousand dollars, or by imprisonment not exceeding one year, or both, at the discretion of the court. "Eighth. If any of the corporations, joint stock companies or associations, or insurance companies, aforesaid, shall refuse or neglect to make a return at the time or times hereinbefore specified in each year, or shall render a false or fraudulent return, such corporation, joint stock company or association, or in- surance company, shall be liable to a penalty of not less than one thousand dollars and not exceeding ten thousand dollars. "Any person authorized by law to make, render, sign, or verify any return who makes any false or fraudulent return, or statement, with intent to defeat or evade the assessment required by this section to be made, shall be guilty of a misdemeanor, and shall be fined not exceeding one thousand dollars or be im- prisoned not exceeding one year, or both, at the discretion of the court, with the costs of prosecution. "All laws relating to the collection, remission, and refund of internal rev- enue taxes, so far as applicable to and not inconsistent with the provisions of this section, are hereby extended and made applicable to the tax imposed by this section. "Jurisdiction is hereby conferred upon the circuit and district courts of the United States for the district within which any person summoned under this section to appear to testify or to produce books, as aforesaid, shall reside, to compel such attendance, production of books, and testimony by appropriate process." ADDENDA. 463 ADDENDA. CONNECTICUT. ANNUAL STATEMENTS— Must be filed annually by February lo. CAPITAL REQUIRED — A fire insurance company must have at least $200,- CXX3 of paid-up capital. DELAWARE. REINSURANCE — Section 12 of Chapter 99, volume 22, as shown on page 78, should be amended so as to include the qualification that transactions prohibited in that section are forbidden "except upon the written consent of the Insurance Commissioner." FLORIDA. ANTI-COMPACT — Companies are forbidden to combine to limit the com- mission an agent may receive from any other company. IDAHO. ANNUAL STATEMENTS— Mutual companies have until March i to file annual statements. ATTORNEY — The requirement that a resident of the county in which com- pany's principal place of business in Idaho is located must be appointed attorney seems to have been nullified by the law of March 14, 191 1, pro- viding for the appointment of the Insurance Commissioner as attorney. Three copies of the power of attorney are required. DEPOSIT — Domestic company must deposit at least $100,000 in cash or securities with Insurance Commissioner, and a company of another State or foreign country must have a like sum deposited in Idaho or with the duly authorized officer of some other State for the benefit of all United . States policyholders or creditors. FEES — Secretary of State's fees (substitute for those mentioned on page 103) : Upon entry, when authorized capital stock does not exceed $100,- 000, $40; on capital stock exceeding $100,000 and not over $500,000, $60; on capital stock exceeding $500,000 and not over $1,000,000, $100; on authorized capital stock exceeding $1,000,000, $150. For filing power of attorney or legal agent, $2; certificate of qualification, $3. County Re- corder's fees (substitute for those mentioned on page 103) : For record- ing and certifying articles of incorporation, per folio, 20 cents; filing articles, 50 cents ; filing power of attorney or legal agent, 50 cents. IOWA. REINSURANCE— Section 171 1 provides that a company may cause itself to be insured "in companies, only authorized to do business in this State," against any loss or risk it may have incurred in the course of its business. Date Due 1 t Library Burea u Cat. No. 1137 K F 1108 A7? S7t^ Author Vol. Spectator ccanpany. New York Title pire insurance laws , taxes '^^^ and fees ; containing a digest . . . Date Boirowef's Name i.,miWSMm.. !