STATUTORY REQUIREMENTS.

SYNOPSES OF THE STATUTORY REQUIREMENTS OF THE VARIOUS STATES AND TERRITORIES.

In the following pages we present a brief synopses of the statutory requirements of each of the several States and Territories relating to Life Insurance. These have been corrected to April 1, but as some of the State Legislatures were in session at the time this portion of THE YEAR BOOK was put to press, any laws subsequently adopted affecting these requirements will be noted in an addenda. 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 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 different States and Territories.

ALABAMA.

SUPERVISING OFFICER, JOHN D. PURIFOY, AUDITOR OF STATE, MONTGOMERY. Preliminary Documents.-Copy of charter must be filed with Auditor; also copy of annual statement showing condition of the company December 31 preceding.

Attorney. All agents of company must be authorized to accept service of legal process. Every company must designate some place within the State as its principal office, and some person or agent residing in such place as an attorney to accept service of legal process.

Funds. The law specifies that “all insurance companies doing business in the State" must have $100,000 capital, paid up in cash. No provision for mutual life companies. Companies that shall invest in the State the net reserve upon policies issued upon the lives of citizens of Alabama shall be entitled to the rights and privileges accorded to State companies.

Deposit.-None required.

Valuation of Policies.-No provision.

Annual Statements.-To be filed January 10 or within thirty days thereafter, showing condition of company at close of preceding year. There must also be filed in July of each year with the Auditor a statement showing the gross premiums received, the amount paid for taxes and licenses in each county and the amount of funds invested in the State.

Agents.-Agents must procure certificates from Auditor and file same, together with copy of annual statement, with the Judge of Probate of the county wherein agent does business. Certificate to be renewed annually in July. Any person soliciting or otherwise transacting the business of insurance is held to be an agent of the company, not of the assured. Agent required to report in January of each year to the Assessor of the county in which he is located the amount of premiums taken, losses, expenditures and return premiums. Agents held responsible for payment of taxes.

Fees.-To Judge of Probate for filing certificate, $5.

Licenses.-Every company must pay to the Treasurer in January of each year $100 for a license to do business.

Taxes.-The following is the full text of the law approved February 20, 1893: All insurance companies, whether chartered or organized under any of the laws of this State, or of any other State or county, doing business in this State, either as a fire, fire and marine, or inland insurance company and every life insurance company doing business upon any plan, whether mutual, co-operative, assessment or otherwise, and every accident or guarantee company, and every other style or class of insurance company must, upon filing their annual statement, required by law, pay to the State Treasurer, upon the gross premiums received by them from their business, in this State, during the year ending on the 31st day of December next preceding, after deducting returned premiums on canceled policies and losses actually paid during said year in the State, a tax of one per cent, and 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 of insurancce in this State. That all property, real and personal, belonging to insurance companies doing business in this State, shall be assessed in the counties in which such property is situated for taxation at the same rate as other property. Sub-divisions 2 and 3 of section 454 of the Code of 1886, in so far as they relate to the taxation of insurance companies, and all laws in conflict with the provisions of this act, be, and the same are hereby repealed. When the facts can be established before a court of competent jurisdiction, that the license tax or the amount of same has been added to the amount of the premium to be paid on fire or life policies or that the rate of insurance has been raised, thereby imposing the payment of said license tax upon the insured, in evasion of the spirit and purpose contemplated in the act, the company so offending shall forfeit to the State the sum of $500, to be recovered in the circuit or city court having jurisdiction, on motion of the solicitor after ten days notice.

Penalties.-Agent doing business for an unauthorized company is liable to a fine not exceeding $1000, or imprisonment not exceeding six months. Agents are also liable for losses if business was placed in violation of law.

Miscellaneous Companies.-Fidelity or surety companies making official bonds are required to deposit $25.000 with the State Treasurer, and to comply with the laws relating to other State companies.

ARIZONA.

SUPERVISING Officer, W. M. CHRISTY, TERRITORIAL TREASURER, PHOENIX.

Preliminary Documents.-Company must file with the Territorial Treasurer a statement giving the name and location of the company, amount of capital stock, assets and net surplus, and receive from him a certificate of authority to do business.

Attorney.-Company must file a stipulation authorizing any agent in the Territory to accept service of legal process.

Funds.-No requirement.

Deposit.-None required.

Valuation of Policies.-No provision.

Annual Statements.-Annual statements must be filed with the Territorial Treasurer in the month of March of each year.

Agents.-Agents must obtain certificate of authority to do business from the Territorial Treasurer. Any person acting in any way for an insurance company is considered an agent of such company and subject to the regulations and penalties of the insurance act.

Fees. To the Territorial Treasurer: For filing statement, $5; issuing certificates of authority, $5; issuing certificate to agent, $2.

Licenses. No provision.

Taxes. Upon filing the annual statement, a verified statement must also be submitted, showing the total premium receipts collected within the Territory for the period lapsing since the filing of the previous statement. Such statement must be published in at least one news. paper in the Territory; thereupon the Treasurer will levy a tax of one and one-half per cent

upon such premium receipts, which shall be paid to the Treasurer before certificate of authority can be renewed. This tax to be in lieu of all other taxes or licenses.

Penalties.-Any person violating the provisions of the insurance law shall, upon conviction,

be fined in any sum not exceeding $1000.

Miscellaneous Companies.—No provision for companies other than life and fire.

ARKANSAS.

SUPERVISING OFFICER, C. B. MILLS, AUDITOR AND INSURANCE COMMISSIONner,

LITTLE ROCK.

Preliminary Documents.--Copy of charter must be filed with the State Auditor; also statement showing the condition of the company at the close of the preceding year. In accordance with the act approved March 6, 1891, all insurance companies doing business in the State must give a bond in the sum of $20,000, with three sureties to be approved by the Auditor of State, conditioned for the prompt payment of all claims arising under policies issued by them. Two of the sureties must be residents of the State, or a bond executed by a guarantee or trustee company located in and doing business in the State, when approved by the Secretary of State, will be accepted in lieu of individual bonds. In all actions arising under policies the bondsmen of the company may be made parties to the suit, and judgments rendered against them may be enforced as other judgments are enforced.

Attorney.-Company must file a stipulation designating the Auditor, or some person appointed by him, as its attorney to accept service of legal process.

Funds.-Company must have assets equal to the net value of all policies in force.
Deposit.-None required.

Valuation of Policies.--The standard of valuation is the American Experience Table of Mortality and interest at four and one-half per cent. Valuation to be made annually unless certificate is furnished from the Insurance Commissioner of the State in which the company was organized, that the company is solvent on the above basis.

Annual Statements.-Annual statements showing the condition of the company on December 31, preceding, must be filed with the Auditor of the State on January 1 of each year, or within sixty days thereafter.

Agents.-Agents must obtain certificates from Auditor.

Fees.-Filing charter, $15; filing annual statement or certificates of Commissioners, $10; issuing certificate of authority, $2; copy of papers on file, 20 cents per folio; certifying same and affixing seal, $1; valuing policies, not exceeding three cents for each $1000 of insurance. Licenses. No provision.

Taxes. At the time of filing annual statement with the Auditor a report must also be filed showing the amount of premiums received in the State during the year ending December 31 preceding, and, after deducting losses and commissions therefrom, a tax of two and one-half per cent must be paid into the State Treasury. Municipal licenses and taxes are prohibited.

Penalties.--Company neglecting to file statement as required forfeits $100 for each day's neglect. Any person transacting business without a license shall forfeit to the school fund $500, and shall be deemed guilty of a misdemeanor, and on conviction fined $500. Any officer or agent who shall make false statements or representations for the purpose of obtaining business shall be deemed guilty of a felony, and on conviction, sentenced to the penitentiary for not less than three or more than ten years. Any person acting for a company that has not filed the bond as above set forth shall be deemed guilty of a misdemeanor and fined not less than $20 or more than $100.

Miscellaneous Companies.-No provision for companies other than life and fire.

CALIFORNIA.

SUPERVISING OFFICER, J. N. E. WILSON, INSURANCE COMMISSIONER, SAN FRANCISCO. Preliminary Documents.—Company must file with the Insurance Commissioner a certified copy of its charter and a certificate from the proper State official showing that it is duly organ

ized and possessed of the assets required by this State; also a statement of its condition on December 31 preceding.

Attorney.--An agent of the company must be appointed attorney to accept service of legal

process.

Funds.-Every company must possess available cash assets over and above all liabilities amounting to at least $200,000.

Deposit-None required.

Valuation of Policies.-Valuation will be made upon the basis of the Actuaries' Table, with interest at four per cent. Policies may be registered with the Insurance Commissioner, and the reserve on the same deposited with him.

Annual Statements.—Annual statement must be filed on or before the 10th day of March each year, showing the condition of the company on December 31 preceding. Statement to be published one week in a daily newspaper published in the city where its principal office is located. All companies or persons engaged in the business of life insurance must file with the Commisssoner, on or before January 15 of each year, a statement verified by the oath of the principal officer or manager residing in the city, showing the amount of business done in the State during the year ending on December 31 preceding.

Agents.-Agents must procure certificate of authority from the Commissioner. If any life insurance solicitor shall have been in the employ of any other company within twelve months, he shall show by written evidence that all moneys he had received for such company had been paid to it or its general agent. An agent to collect premiums due from residents of the State may receive certificate of authority for this sole business.

Fees. For filing charter, $30; annual statement, $20; other papers, $5; license to solicitors or agents, $1; special agent of life insurance companies to collect renewal premiums, $20; copies of papers, 25 cents per folio; certification, $1; valuation of policies, three cents for each $1000 of insurance value. Expenses of the office of the Commissioner, not covered by fees collected, to be assessed among the companies, proportionate to the amount of premiums received. Reciprocal legislation.

Licenses.-See Fees.

Taxes.-Taxes provided for under reciprocal provision of the statute.

Penalties.--For failing to file statement as required, $100 and $200 for each month the company does business without filing such statement. For failing to answer fully and truthfully written inquiries of the Commissioner, $500. For issuing a policy in the State without specifying that it is so issued, $100.

Miscellaneous Companies.-No special legislation regarding companies other than life and fire.

Municipal License.--San Francisco is authorized by statute to collect for licenses from life insurance companies. The ordinance provides that each agent shall pay for each company represented by him the following sums: Those doing business to the amount of $50,000 or over per quarter, $100 per quarter; $25,000 and less than $50,000, $75 per quarter; $10,000 and less than $25,000, $50 per quarter; less than $10,000, $25 per quarter. Reciprocal provisions.

CANADA.

SUPERVISING OFFICER, WILLIAM FITZGERALD, SUPERINTENDENT OF INSURANCE, OTTAWA.

Preliminary Documents.-Company must file certified copy of its charter and a statement showing its condition December 31 preceding.

Attorney. An agent of the company at its head office in Canada must be appointed to accept service of legal process.

Deposits.-Companies are required to deposit $50,000 with the Minister of Finance, and to make additional deposits as required sufficient to equal the reinsurance reserve upon policies in force in Canada; or to place such sum in the hands of trustees in Canada for the benefit of Canadian policyholders, under a trust deed to be approved by the Minister.

Valuation of Policies.-Policies are valued by Institute of Actuaries', of Great Britain, H. M. Table of Mortality, with interest at four and one-half per cent.

Annual Statements.-Each company must file annually, on or before March 1, a statement showing its condition at the usual balancing day of such company; policies to be valued every five years.

Agents. No provision regarding agents.

Fees.-The expenses of the office of the Superintendent of Insurance to be paid by an assessment made pro rata upon the companies upon gross premiums received; for valuing policies, three cents for each policy.

Licenses. Each company must obtain a license from the Minister of Finance, to be renewed on April 1 of each year; notice of the same to be published in The Canada Gazette and one newspaper in the place where the chief agency of the company is established; publication to be continued for four weeks; like notice to be given for three calendar months when the company proposes to cease business in Canada.

Taxes. No provision for taxation.

Penalties. For neglect to file annual statement, a penalty of $500 for each violation, and an additional penalty of $100 for each month during which the company is in default is provided. Any person acting in any manner in behalf of an unlicensed company incurs a penalty of not less than $20 nor more than $50 for the first offense, and for the second offense imprisonment without the option of a fine.

COLORADO.

SUPERVISING OFFICER, F. M. GOODYKOONTZ, SUPERINTENDENT OF INSURANCE, DENver.

Preliminary Documents.—Company must file a certified copy of its charter with a statement showing its condition on December 31 preceding.

Attorney.-Superintendent of Insurance must be appointed attorney for the company to accept service of legal process.

Funds.-Company must have a capital of $200,000, or an equal amount of net surplus. Deposits.-None required.

Valuation of Policies.-Policies are valued by Actuaries' Experience Table, with interest at four per cent.

Annual Statements.-Annual statements must be filed on or before March 1 of each year, showing the condition of the company on December 31 preceding.

Agents.-Agents and solicitors are required to secure certificates from the Superintendent. Discrimination.—Company prohibited from making any discrimination or exception, either as to rates, dividends or terms. All conditions of the contract must be specified in the policy.

Fees. For filing charter, $25; if the capital of the company exceeds $250,000, 10 cents for each additional $1000; filing power of attorney and preliminary statement, $50; annual statement, $50; certificate of authority, $5; each copy of same, $2; if these fees do not meet the expenses of the office, the Superintendent is authorized to assess pro rala to make up the deficiency.

Licenses. See Agents.

Taxes.-A tax of two per cent on net premiums is imposed, to be paid to Superintendent of Insurance.

Penalties.-Licenses will be revoked on failure to pay fees. For refusal to answer questions on examination or for false answers to such questions, or for making false entries in the books, the offender is subject to a fine or imprisonment, or both, in the discretion of the court. Doing business for an unlicensed company, $500 for each offense. Violation of antirebate law, $250 fine and revocation of license of agent.

Miscellaneous Companies.-Companies other than life or fire, required to have a capital of not less than $100,000, and in other respects must conform to the requirements as above.