STATUTORY REQUIREMENTS SYNOPSIS OF THE STATUTORY REQUIREMENTS OF THE In the following pages will be found concise statements of the statutory requirements for the admission of stock casualty, surety, fidelity, and miscellaneous insurance companies other than fire and life, 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 on 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, INSURANCE COMMISSIONER, MONTGOMERY ADVERTISEMENTS, REGULATIONS GOVERNING.-Abstract of statement for publication in newspaper of general circulation. A uniform charge of $10 is made for publishing statement. This amount may be remitted direct to such paper or to Insurance Department and matter will have attention. Copy of paper containing statement must be filed in office of Insurance Commissioner within thirty days after license issues to company. Agent DefineD.-Any person who solicits insurance, or takes or transmits, other than for himself, any applications for insurance, or any policy of insurance, to the company, or in any way gives notice that he will receive or transmit the same, or receives or delivers a policy of insurance, or examines or inspects a risk, or receives, collects or transmits any premium, or does or performs any other act or thing in the making or consummating of any contract of insurance, other than for himself, or examines or adjusts, or aids in adjusting any loss, whether such acts shall be done at the request or instance or by the employment of such insurance company, or of or by any other person. Held to be agent of company and not the insured. AGENT'S LICENSE.-Fee for local agent, $3.50; general or special agent, $3.50. Each member of firm or corporation to have individual certificate. Date of expiration December 31 and renewable not later than January 31. By a ruling of the Insurance Department all general and special agents or managers of companies transacting business in Alabama, whether such agents reside in the State or not, are required to obtain an agent's license from the Department. Any agent or person shall be personally liable for the full amount of loss sustained on all contracts of insurance unlawfully made by or through him. ANNUAL STATEMENT.-Date for filing, on or before March 1 or as soon thereafter as Commissioner may require. The annual statement of a company of a foreign country shall only be required to embrace its business and condition in the United States. Fidelity and Surety Company. Required to file with the Insurance Commissioner a statement on or before March 1, or as soon thereafter as Insurance Commissioner may require. ATTORNEY FOR SERVICE.-Appoint Insurance Commissioner. Fidelity and Surety Company. File with the Insurance Commissioner a statement designating Insurance Commissioner agent thereof, upon whom service of process may be made. COMPANY DEFINED.-All corporations, associations, partnerships or individuals engaged directly or indirectly as principals in any business of insurance. COMPANY LICENSE.-Casualty Company: Annual fee, $101. Date of expiration, December 31; renewable on or before March 1. Fidelity and Surety Company. File with the Insurance Commissioner a statement as of December 31 of year preceding. Date of expiration, December 31; renewable March 1. COMPANY OF FOREIGN COUNTRY.-See "Annual Statement," "Deposit." Company organized under a foreign government shall have on deposit with the Treasurer of this State, or with the proper official of some State of the United States, at least $200,000, such deposit to be in exclusive trust for the benefit and security of all the company's policyholders and creditors in the United States, and may be made in bonds of this State or of the United States, or of some State of the United States, or other good securities satisfactory to the Insurance Commissioner, and such deposit shall be deemed for all purposes of the insurance law the capital of the company. Any admitted company of a foreign country may appoint trustees, citizens of the United States, and approved by the Insurance Commissioner, to hold funds in trust for the benefit of its policyholders and creditors in the United States. 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 for examination, actual expense incurred. Annual license fee, $101. Fidelity or Surety Company. The Governor may order an examination when he considers it in the interest of the public. FEES.-Filing copy of charter or deed of settlement and financial statement $101, and a similar amount with each annual statement; for each certificate of renewal to an agent, $3.50; $1 for copies of any paper on file with the Insurance Department, 10 cents per 100 words. $10 for permit from Secretary of State. FUNDS.-A company other than life, except miscellaneous company, casualty, surety, etc., to have an actual paid-up cash capital of not less than $100,000, of which at least $50,000 shall 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 said company is organized, reckoning the same at their current market value;; or in lieu of a cash capital stock such company shall have and maintain surplus above all liabilities, including reinsurance reserve of not less than $100,000. Fidelty and surety company to include the writing of strictly official surety bonds must have $250,000 capital and $100,000 on deposit with the proper official of home State, and $50,000 on deposit with the State of Alabama, and comply with the laws relating to other State companies. IMPAIRMENT OF CAPITAL.-If the Insurance Commissioner is of the opinion, upon examination or other evidence, that a foreign insurance company is in an unsound condition, that its actual funds, exclusive of capital, are less than its liabilities, certificate of authority may be revoked. Fidelity and Surety Companies. The liabilities of such corporation must not exceed its available assets, but such liabilities must not be construed to include its capital stock, nor its contingent liabilities upon bonds or undertakings executed by it under the provisions of this article, but shall include its outstanding debts and a premium reserve equal to fifty percentum of the annual premiums of all outstanding risks in force. MISREPRESENTATION IN APPLICATION OR PROOF OF LOSS.-No written or oral misrep resentation, or warranty therein made, in the negotiation of a contract or policy of life insurance, or in the application therefor or proof of loss thereunder, shall defeat or void the policy, or prevent its attaching, unless such misrepresentation is made with actual intent to deceive, or unless the matter misrepresented increase the risk of loss. MUNICIPAL TAXES AND FEES.-In towns of 5000 or less $10 and $1 on each $100 of gross premiums less returns on cancellations received during preceding year on policies issued during said year to citizens of said towns or cities. In towns of 5000-10,000, $15 and $1 per $100 as above. In cities of 10,000-50,000, $20 and $1 per hundred as above. In cities of over 50,000, $50 and $1 per $100 as above. Tax statement to be filed with city executive on January 1, or within sixty days thereafter annually. PENALTIES.-For not making tax returns, $500, in addition to taxes; for not paying taxes within 60 days, $500; for not following summons to testify, $100 to $500; for not filing statements promptly and correctly, fine of $250 and forfeit of certificate for one year; for any violation not specifically provided for by law, a fine of not more than $500. Fidelity or surety company, or agent thereof, doing business without authority, fine not exceeding $1000. Reciprocal law. POLICY FORM OR PROVISIONS.-No company or agent thereof shall make any contract of insurance, nor agreement, as to policy contract, other than is plainly expressed in the policy issued thereon. All contracts of insurance, the application for which is taken within the State, shall be deemed to be made in this State. PRELIMINARY DOCUMENTS.-File with the Insurance Commissioner a certified copy of charter or deed of settlement, and a statement of financial condition and business on December 31 preceding. Designation of Insurance Commissioner, or his successor, as attorney for service of legal process. Certificate of valuation of policies. (Life and liability companies only.) Certificate of compliance with laws of home State. Certificate by proper officer of home State that capital stock is sufficient and that required deposits have been made. PUBLICATION.-Annual statement to be published in a daily or weekly newspaper of general circulation at company's expense and file copy of paper with Insurance Commissioner within thirty days from date of license. REBATES.-Prohibited. Reciprocal Law.-Same deposits, fees, etc., required of other States by this State, as such other State requires of company this State. REMOVAL OF SUITS.-From State to United States courts not allowed. Reserve for ReiNSURANCE, METHOD OF CALCULATION.-To determine the liability upon the contracts of an insurance company other than life, the Insurance Commissioner shall require such companies to charge as a liability for reinsurance of outstanding policies fifty per cent of the premiums received on policies or risks having not more than one year to run, and a pro rata of all premiums received on policies or risks having more than one year to run, and in the case of companies doing a liability insurance an additional reserve fund shall be charged, and known as "liability reserve," to an amount not less than $300 for each suit pending against such company's policyholders for which it may be liable in the lower court, and $700 additional when such suit is appealed by the defendant to higher court. The Insurance Commissioner shall allow to the credit of an insurance company, in the account of its financial condition, all such assets as are or can be made available for the payment of losses in Alabama. He shall not allow stockholders' obligations of any description as part of the assets or capital of any insurance company unless the same are secured by collateral satisfactory to the Insurance Commissioner. RESIDENT AGENT LAW.-Casualty company, yes. Surety company, yes. TAXES.-Corporations or associations engaged in the business of personal accident, surety, fidelity or employers' liability insurance, shall, on the first day of January of each year, pay to the Insurance Commissioner two per cent upon the gross amount of premium receipts from policyholders in this State. Reciprocal law. See also "Municipal Taxes." TAX STATEMENT.-Final date for filing March 1, unless excuse for longer time is acceptable to Insurance Commissioner. ALASKA. SUPERVISING OFFICER, CHARLES E. DAVIDSON, SECRETARY OF ALASKA, JUNEAU. CHAPTER THIRTY-SIX OF THE INSURANCE LAW. SEC. 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. SEC. 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 60 days after such service on the clerk. SEC. 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. SEC. 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. |