CHAP. III. $100,000 to desire, in the stocks or bonds and mortgages or securities aforeDeposit of said. No company organized for the purposes mentioned in the be made first department shall commence business until they have deposintendent, ited with the superintendent of the insurance department of this with super may collect State the sum of one hundred thousand dollars in United States or New York State stocks, in all cases to be, or to be made to be, equal to stock producing six per cent per annum, and not to be received at a rate above their par value, or above their current market value, or in bonds and mortgages of the description and character above indicated, and no company organized for the purposes named in the second department shall commence business until they have deposited with the superintendent of the insurance department of this State at least the sum of one hundred thousand dollars, invested as hereinbefore provided for the investment of the capital of such company. The superintendent of the insurance department shall hold such securities as security for policy-holders in said companies, but, so long as any company so depositing shall continue solvent, may permit such company to collect the interest Companies or dividends on its securities so deposited, and, from time to time, interest on to withdraw any of such securities on depositing with the said superintendent such other securities of like value as those withdrawn, and of the same character, and to be received as those above menInvestment tioned. Any company incorporated by the laws of this State to of capital. transact the business embraced in the second department of section one with the amendments thereto of the act hereby amended, may invest its capital and the funds accumulated in the course of its business, or any part thereof, excepting the amount required to be deposited with the insurance department in the same manner as is permitted fire insurance companies, as provided in chapter four hundred and sixty-six of the laws of eighteen hundred and fifty-three, with the amendments thereto. And the amount required to be deposited with the insurance department may be invested in registered bonds of the United States, provided that such bonds shall not be received at a rate above their par value, and if the market value of such bonds deposited or of securities. ings; to be received at a sum not above five thousand dollars for each mortgage, and under regulations to be prescribed by the superintendent of the bank department. [See Laws of 1838, chap. 260, § 8; Laws of 1848, chap. 340, §§ 2 and 3, and Laws of 1851, chap. 164, § 10.] Under the provisions of the act "To revise the statutes of this State relating to banks, banking and trust companies," passed July 1, 1882, any interest-bearing stock of the State of New York or of the United States are receivable by the bank department. [See Laws of 1882, chap. 409, 88 67 and 71.] CHAP. III. fered for deposit shall at any time be less than par, the superintendent shall require an additional deposit equal in the aggregate to the sum required by law to be deposited with the superintendent. [As amended by Laws of 1853, chap. 551, § 1; by Laws of ✓ 1860, chap. 328, § 1, and by Laws of 1862, chap. 300, § 2, as modified by Laws of 1865, chap. 328, § 2; and as amended by Laws of 1881, chap. 560, § 1.] Ruggles v. Chapman, 59 N. Y. 163; People, ex rel. Stout, v. Chapman, 5 Hun, 222; Kitchen v. Conklin, 51 How. 308; Smyth v. Monroe, 84 N. Y. 354. tendent to certificates (See Laws of 1865, chap. 328, post, p. 77, and Laws of 1881. chap. 600, ante, p. 10.) § 7. Whenever the corporators shall have fully organized such Superincompany, and the said company have deposited with the said su- furnish perintendent the requisite amount of capital, it shall become his of deposit. duty to furnish the corporation with a certificate of such deposit, which, with a certified copy of the papers previously required When auunder this act, shall, when filed in the county clerk's office of the commence county where such company is to be located, be the authority to commence business and issue policies, and the same may be used in evidence for and against the corporation in all suits. thorized to business how in § 8. It shall be lawful for any company organized under this Funds, act, to invest its funds or accumulations in bonds and mortgages, vested. on unincumbered real estate within the State of New York, and also on unincumbered real estate located outside of said State, and within fifty miles of the city of New York, worth fifty per cent more than the sum so loaned thereon, or in stocks of the United States, stocks of this State, or of any incorporated city in this State, if at or above par, and any stocks created under the laws of this State, that shall be, at the time of such investment, at a market value in the city of New York, at or above par. [As amended by Laws of 1860, chap. 328, § 2; by Laws of 1862, chap. 300, 83; by Laws of 1866, chap. 525, § 1, and by Laws of 1868, chap. 318, § 1.] Attorney-General v. North America Life Ins. Co., 26 Hun, 294. (This act shall apply to all life insurance companies organized under any laws of this State. [Laws of 1868, chap. 318, § 2.]) (See Laws of 1875, chap. 423, post, p. 179.) § 9. No company organized under this act shall be permitted Purchase to purchase, hold or convey real estate, except for the purpose or in the manner herein set forth, to wit: 1. The building in which is contained its principal offices and the land upon which it stands; or of real estate. CHAP. III. estate. 2. Such as shall be requisite for its accommodation in the transaction of its business; or, 3. Such as shall have been acquired for the accommodation of its business previous to the passage hereof; or, 4. Such as shall have been mortgaged to it in good faith by way of security for loans previously contracted or for moneys due; or, 5. Such as shall have been conveyed to it in satisfaction of debts previously contracted in the course of its dealing; or, 6. Such as shall have been purchased at sales upon judgments, decrees or mortgages obtained or made for such debts. And it shall not be lawful for any company incorporated as aforesaid to purchase, hold or convey, real estate in any other case, Sale of real or for any other purpose. And all such real estate mortgaged and conveyed in satisfaction of debt or aquired by purchase at sale as aforesaid, shall be sold and disposed of within five years after such company shall have acquired title to the same unless the said company shall procure a certificate from the superintendent of the insurance department that the interest of the company will suffer materially by a forced sale of such real estate, in which event the time for the sale may be extended to such time as the said superintendent shall direct in said certificate. [As amended by Laws of 1875, chap. 170, § 1, and by Laws of 1876, chap. 357, §1.] Corporators, etc., to adopt seal, make by-laws, etc. (This act shall apply to all life insurance companies organized under the laws of this State. [Laws of 1876, chap. 357, § 2.) (See Laws of 1872, chap. 146, as amended by Laws of 1875, chap. 119, post, p.228; Laws of 1881, chap. 484, post, p. 133, and Laws of 1882, chap. 290, post, P.235.) 10. The corporators or the trustees or directors, as the case may be, of any company organized under this act, shall have power to adopt a seal, and to make such by-laws, not inconsistent with this act or the Constitution and laws of this State, as may be deemed necessary for the management of its affairs; and suits at Suits at law law may be maintained by any corporation formed under this act, maintained. against any of its members or stockholders, for any cause relating to the business of such company; also, suits at law may be prosecuted and maintaiued by any member or stockholder against such corporation for losses which may have accrued, if payment is withheld more than two months, on all risks, after such losses shall have been due. may be Companies formed, to People v. Security Life Insurance and Annuity Co., 78 N. Y. 123; S. C., 7 Abb. N. C. 198. § 11. All companies formed under this act shall be deemed and be bodies taken to be bodies corporate and politic, in fact and in name, and and politic, shall be subject to all the provisions of the Revised Statutes in rela corporate tion to corporations, so far as the same are applicable, except in regard to annual statements and other matters herein otherwise specially provided for. Fisher v. World Mutual Life Ins. Co., 47 How. 451; Matter of Security Life Ins. and Annuity Co., II Hun, 96; S. C., 71 N. Y. 222; 15 Abb. Pr. (N. S.) 369. CHAP. III. annually 12. It shall be the duty of the president or vice-president and Statement, under oath, secretary or actuary, or a majority of the trustees of each com- to be made pany organized under the laws of this State, annually, on the first to superinday of January, or within sixty days thereafter, to prepare, under oath, and deposit in the office of the superintendent of the insurance department of the State, a statement, showing: 1. The number of policies issued during the year. 2. The amount of insurance effected thereby. 3. Amount of premiums received during the year. 4. Amount of interest and all other receipts, specifying the items. 5. Amount of losses paid during the year. 6. Amount of losses unpaid. 7. Amount of expenses. 8. Whole number of policies in force. 9. Amount of liabilities or risks thereon, and of all other liabilities. 10. Amount of capital stock. 11. Amount of accumulation, specifying whether received upon life insurance, annuities, or how otherwise: 12. Amount of assets and manner in which they are invested, specifying what amount in real estate, on bond and mortgage, stocks, loans on stocks, premium notes, credits or other securities. 13. Amount of dividend unpaid. 14. A tabular statement of the policies in force for the whole term of life, showing how many thereof for each age of life, and for what amount of risk, were issued or in force during the first year of the existence of the company, during the second year, and so on up to the time of making such statement. 15. A tabular statement of the policies in force for a shorter period than the whole term of life, showing how many thereof for each age of life, and for what amount of risk, were issued or continued in force during the first year of the company's existence, during the second year, and so on up to the time of making such statement. tendent. Contents of statement. CHAP. III. to be fur nished with The superintendent of the insurance department shall cause to be prepared, and furnished to every company to which this act shall apply, printed forms of the statements herein required; and statements. he may make such changes from time to time, in the form of the Forms may same, as shall seem to him best adapted to elicit from said combe changed printed forms of by the sup- panies a true exhibit of their condition in respect to the several points hereinbefore enumerated. erintend ent. tendent to information in state printing in his annual report. Superintendent to make valu Case v. People, 6 Abb. N. C. 151; S. C., 14 Hun, 503. (See Laws of 1865, chap. 328. post, p. 77.) Superin- § 13. It shall be the duty of the superintendent of the insurance arrange department to arrange the information contained in the statements contained required in the last section in a tabular form, or in abstracts, and ments, for to prepare the same for printing in his annual report to the legislature. It shall also be the duty of the said superintendent, at least once in every five years, and annually in his discretion, to make valuations of all the outstanding policies, additions thereto, unations. paid dividends and all other obligations of every American life insurance company transacting business in this State; and for the purposes of such valuations, and for making special examinations under the seventeenth section of this act, and for valuing registered life and other policies under chapter seven hundred and eight of the Laws of eighteen hundred and sixty-seven, the rate be four and of interest assumed shall be four and a-half per cent per annum, and the rate of mortality shall be that established by the American experience table, in which table the expectation of life and the numbers of living and dying at each age from ten to by Ameri- ninety-five out of one hundred thousand persons living at age ten, are as stated in the schedule hereto annexed. Rate of interest to a half per cent per annum, and the rate of mortality to be that established can experience table. Standards of interest and mor tality may be varied in special cases. When su ent may accept valuation of The superintendent may, in his discretion, vary the above standards of interest and mortality, in cases of companies from foreign countries, and in particular cases of invalid lives or other extra hazards. The superintendent may also, in his discretion, value policies in groups, use approximate averages for fractions of a year and otherwise, and calculate values by the net, the actual or the gross premiums or otherwise, deducting, in cases of gross valuations, from the gross value of future premiums, one-sixth thereof, for future expenses and contingencies. The superintendent may, in his discretion, accept the valuation perintend of the department of insurance of any other State in place of the valuation required in this act, provided the insurance officer of insurance such State does not refuse to accept, as sufficient and valid for all department purposes, the certificate of valuation of the insurance department of other States. |