STATUTORY REQUIREMENTS

SYNOPSIS OF THE STATUTORY REQUIREMENTS OF THE
SEVERAL STATES AND TERRITORIES AS THEY
APPLY TO LEGAL RESERVE, OLD LINE
LIFE INSURANCE COMPANIES

OF OTHER STATES

In the following pages will be found concise statements of the statutory requirements for the admission of life insurance companies to do business in the respective States. In this brief form, the synopses are intended more as a hint than an actual guide, for it is not anticipated that any company in entering a State would be satisfied with anything less than the statutes themselves as their reliance as to conditions. Our summary, however, may be accepted as correct as far as it goes.

It has been our aim in preparing these synopses of the statutes to secure uniformity for all the States and to give the essential requirements in as brief a space as possible consistent with the statement of the facts. The synopsis for each State was sent to the supervising officer of such State and returned to us with his approval to date, or with such corrections as he deemed essential. We believe that the information given in this condensed form is as correct as it is possible to make it and will be sufficient to indicate to all interested the: statutory requirements of the several States and Territories.

ALABAMA.

SUPERVISING OFFICER, CYRUS B. BROWN, SECRETARY OF STATE AND EX-OFFICIO INSURANCE COMMISSIONER, MONTGOMERY.

ADVERTISEMENTS, REGULATIONS GOVERNING.-No provision.

AGENT DEFINED.-Held to be agent of company, not of the insured.

AGENT'S LICENSE.-Each agent, $3.50; general or special agent, same as local agent; date of expiration, December 31.

ANNUAL STATEMENT.-Final date for filing March 1, time extended on satisfactory reasons to Insurance Commissioner.

ANTI-DISCRIMINATION LAW.-No company or agent shall pay or allow, or offer to pay or allow, any rebate of premium; nor shall any particular policyholder of the same class be allowed any advantage in dividends or other benefits to accrue thereon, or any valuable consideration or inducement whatever, not specified in the policy contract. ATTORNEY FOR SERVICE.-Insurance Commissioner.

BOARD AND SPECIAL CONTRACTS, SALE OF STOCK WITH INSURANCE-Prohibited. COMPANY LICENSE.—Expires December 31. Annual license fee to be paid to Insurance Commissioner on or before March 1.

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DEPOSIT.-Deposits are held by the State Treasurer.

EXAMINATION.-The Insurance Commissioner may examine at his discretion, but may accept the sworn published statement made to and approved by the proper official of the company's home State. Fee, actual expense incurred.

FEES.-Annual fees for company's license, $10 and $10 to Secretary of State for permit. No other annual fees. For copy of any paper on file with the Insurance Commissioner ten cents per 100 words, and $1 for seal to certificates.

FUNDS.-Company to furnish sworn certificate that it has at least $100,000 in approved securities, consisting of bonds of State, or United States bonds or notes, or bonds secured by mortgages on real estate for double the amount on deposit with the proper official of some State.

GAIN AND LOSS EXHIBIT REQUIRED.-Incorporated in annual statement.

IMPAIRMENT OF CAPITAL.-When actual funds, exclusive of capital, are less than liabilities, Insurance Commissioner may revoke license.

INCONTESTABILITY.-No company shall contest a claim on the plea of fraud or irregularities in application after two annual premium payments have been made, but must pay the full amount of policy within sixty days after proofs of death have been received at the home office.

MISREPRESENTATION.-No misrepresentation, written or oral, in the negotiation of a contract or in the application or proofs of loss, shall defeat or void the policy unless such misrepresentation is made with actual intent to deceive, or unless the matter misrepresented increases the risk.

No officer, director or agent thereof, shall issue or circulate, or cause or permit to be issued or circulated, any estimate, illustration, circular or statement of any sort misrepresenting the terms of any policy issued by it or the benefits or advantages promised thereby, or in the dividends or share of surplus to be received thereon, or shall use any name or title of any policy or class of policies misrepresenting the true nature thereof. Nor shall any such company, agent or broker make any misrepresentation to any person insured in such company or in any other company for the purpose of inducing or tending to induce any person to lapse, forfeit or surrender his insurance.

MUNICIPAL TAXES AND FEES.-See Taxes.

NON-FORFEITURE.-No provision.

PENALTIES.-Whoever, without justifiable cause, neglects, upon due summons, to appear and testify before the Insurance Commissioner or his deputy, or any person appointed by him as provided by law, and whoever obstructs the Insurance Department in an examination, shall be guilty of a misdemeanor, and punished by a fine of from $100 to $500. Company refusing to submit to examination forfeits license. For failure to properly file tax statements, $500, within sixty days from date of delinquency, and forfeiture of right to do business until tax and penalty is paid. For failure to properly file annual statement, $250 and forfeiture of license until penalty is paid. Any company willfully making a false annual or other statement required of it by law, and persons making oath to and subscribing the same, punished by a fine of not less than $500 nor exceeding $1000, and any person making oath to such false statement shall be deemed guilty of perjury and punished under the criminal law of the State. Company or agent, directly or indirectly, violating anti-rebate or anti-discrimination laws, held guilty of misdemeanor, and upon conviction fined from $100 to $500 for first offense and not less than $250 for each subsequent offense. For acting as agent of foreign unlicensed company, a fine of from $100 to $500, or imprisonment for thirty days, or both.

PENSIONS AND POLITICAL CONTRIBUTIONS.-No provision.

POLICY FORM OR PROVISIONS.-If application is taken in this State, policy is considered an Alabama contract. No company or agent shall make any contract of insurance, or agreement as to policy contract, other than is plainly expressed in the policy issued. Policy must bear in bold letters on its face a plain description of the policy, so fully defining its character, including dividend periods and other peculiarities, that the holder thereof shall not be liable to mistake the nature thereof.

PUBLICATION.-Annual statement to be published in one daily or weekly paper one time, the company to attend to matter of publication. File copy of paper with Insurance Commissioner within thirty days from date of issue of license.

REBATES.-Prohibited under penalty of from $100 to $500 fine.

RECIPROCAL LAW.-Yes.

REMOVAL OF SUITS.-Not permitted.

RESIDENT AGENT LAW.-Yes.

SALARIES OF Officers, Limit.—No provision.
SEMI-ANNUAL STATEMENT.-None required.

STATEMENTS BY Insured, Deemed Representations or Warranties.-No provision.
SURPLUS DISTRIBUTION.-No provision.

TAXES.-State tax, two per cent on gross premiums collected in State. Final date for payment to the Insurance Commissioner March 1. No other State taxes. Company subject to local taxes.

TAX STATEMENT.-No provision.

VALUATION.-Yearly, on Actuaries' or American Experience Table, interest four per cent. Valuation by company's home State accepted, if made on either of above standards. Fee, no provision.

ALASKA

SUPERVISING OFFICER, CHARLES E. DAVIDSON, SECRETARY OF STATE, JUNEAU. CHAPTER THIRTY-SIX OF THE INSURANCE Law.

SECTION 360.-No company, corporation, or association, or firm, or individual shall be permitted to transact a life, fire or marine insurance business in the District until he or it has filed in the office of the Secretary of the District a certificate by the Secretary of State or other proper officer of some State of the United States, setting forth that the said company, corporation, association, firm or individual has been qualified to carry on the business of insurance in such State in accordance with the laws thereof.

SECTION 361.-No insurance company, corporation, association, firm or individual shall be permitted to transact a life, fire or marine insurance business in the District until it shall have filed with the clerk of each division of the District Court a power of attorney which shall set forth that such company is a corporation or duly organized insurer (naming the principal place of business of the company and principal place of business for the Pacific Coast), which power of attorney shall authorize a citizen and resident of the District to receive and accept service in any proceeding in a Court of Justice of the District. If any attorney of any insurance company appointed under the provisions of this section shall remove from the District or become disqualified in any manner from accepting service, and if any citizen or resident of the District shall have any claim by virtue of any insurance policy issued by any such company not represented by attorney in the District, valid service may be made on such company by service on the clerk of the District Court or any division thereof: Provided, In such case the clerk of the District Court shall immediately notify such company and the principal agent for the Pacific Coast, inclosing a copy of the service by mail, postpaid: And provided further, In such case no proceedings shall be had within sixty days after such service on the clerk.

SECTION 362.-All orders or secret societies, such as Masons, Odd Fellows, Druids, Knights of Pythias, Ancient Order of United Workmen, Modern Woodmen of America and other benevolent, fraternal or co-operative societies associated or incorporated for the sole purpose of mutual protection and relief of its members only, and for the payment of stipulated sums of money to the families of deceased members, or for property of its members only destroyed by fire, are hereby declared not to be fire or insurance companies in the sense and meaning of this chapter, and they are exempt from the provisions hereof.

SECTION 363.-The provisions of this chapter, under either term or designation of company, corporation, association, firm, or individual in either case, where either term

or designation is used, shall apply to any insurer, company or corporation, association, firm or individual, engaged as an insurer or who may hereafter engage as insurers in the District, or who may engage in offering or affording indemnity against the casualties of fire or life.

SECTION 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 one hundred nor more than five hundred dollars, and in default of payment of such fine shall be imprisoned not less than ten days nor more than six months.

SECTION 365.-The secretary of the District shall collect 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.

ARIZONA.

SUPERVISING OFFICER, W. N. BRIDGES, SUPERINTENDENT OF INSURANCE, PHOENIX. ADVERTISEMENTS, REGULATIONS GOVERNING.-All advertisements must only show those assets actually held for the protection of policyholders, and must correspond with last statement to the Department.

AGENT DEFINED.-"Agent" or "Insurance Agent" 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 known as a recording or policy writing agent, and to discharge such other duties as may be vested in or required of the agent of the company.

AGENT'S LICENSE.-Obtain a certificate of authority from the Superintendent of Insurance. Fee for local agents, $2; general or special agent, $2; expiration of license, March 31.

ANNUAL STATEMENT.-Filed on or before March 1 with the Superintendent of In

surance.

ANTI-DISCRIMINATION LAW.-Prohibited.

ATTORNEY FOR SERVICE.—Each and every member of the Corporation Commission. BOARD AND SPECIAL CONTRACTS, SALE OF STOCK WITH INSURANCE.-No provision. COMPANY LICENSE.-Expires March 31.

DEPOSIT.-None required.

EXAMINATION.-Corporation Commission may at any time examine into the affairs of any insurance company.

FEES.-Payable to Corporation Commission. Filing statement, $25; issuing certificate of authority, $50; filing charter or articles of incorporation, $25; filing amended articles of incorporation, $10; each renewal certificate of authority, $30; copy of papers per folio, 20 cents; filing miscellaneous papers, $1 each; agent's license, $2.

Funds. Not less than $100,000 fully paid capital stock, and if company writes accident and health lines $150,000. If liability is also written $350,000.

GAIN AND LOSS EXHIBIT REQUIRED.-Incorporated in annual statement.

IMPAIRMENT OF CAPITAL.-Any impairment amounting to 20 per cent must be remedied within ninety days.

INCONTESTABILITY.-After three years.
MISREPRESENTATION.-Prohibited.

MUNICIPAL TAXES AND FEES.-None.

NON-FORFEITURE.—After three years' premiums have been paid.

PENALTIES.-Agent placing risks with unauthorized companies $500, and $100 for every month practice is continued. Fraudulent advertising by a company, $250 for first offense, $500 for each subsequent offense. Failure to file statement and pay taxes after time specified, $25 per day. A company or agent violating the insurance act is liable to prosecution.