Insurance § 622. The provision that no insurance company shall limit the time in which suit shall be brought on a policy to less than one year, a stipulation in an accident policy that no legal proceedings shall be brought to recover any sum hereby insured within ninety days after receipts of proof, nor at all unless commenced within one year after date of alleged accident, will be construed to give an assured 12 months after his right of action accrued, which would be a year after time for filing proof of loss, plus 90 days.-Heilig v. Aetna Life Ins. Co., 152 N. C. 358, 67 S. E. 927. Insurance § 622. Under an accident policy stipulating that an action must be brought within one year after the right of action accrued, infancy does not stop limitations, since, by suing on the contract, the infant affirms it, and therefore is bound by its terms.-Ibid.

696. Insurance as security for a loan by the company. Where an insurance company, as a condition for a loan by such company, of money upon mortgage or other security, requires that the borrower insure either his life or that of another, or his property, or the title to his property, with the company, and assign or cause to be assigned to it a policy of insurance as security for the loan, and agree to pay premiums thereon during the continuance of the loan, whether the premium is paid annually, semiannually, quarterly, or monthly, such premiums shall not be considered as interest on such loans, nor will any loan be rendered usurious by reason of any such requirements, where the rate of interest charged for the loan does not exceed the legal rate and where the premiums charged for the insurance do not exceed the premiums charged to other persons for similar policies who do not obtain loans.

C. S., s. 6291; 1915, c. 8; 1917, c. 61.

697. Companies must do business in own name. Every insurance company, foreign or domestic, must conduct its business in the state in, and the policies and contracts of insurance issued by it shall be headed or entitled only by, its proper or corporate

name.

C. S., s. 6292; Rev., s. 4811; 1899, c. 54, s. 18.

698. Publication of assets and liabilities; penalty for failure. When any company publishes its assets it must in the same connection and with equal conspicuousness publish its liabilities computed on the basis allowed for its annual statements; and any publications purporting to show its capital must exhibit only the amount of such capital as has been actually paid in cash. Any company or agent thereof violating the provisions of this section shall be punished by a fine of not less than fifty nor more than two hundred dollars.

C. S., s 6293; Rev., ss. 3492, 4812; 1899, c. 54, ss. 18,

96.

699. Liabilities and reserve fund determined. To determine the liability of an insurance company, other than life and real estate title insurance, upon its contracts, and thence the amount such company must hold as a reserve for reinsurance, the insurance commissioner shall take the actual unearned portion of the premiums written in its policies. In case of the insolvency of any company, the reserve on outstanding policies may, with the consent of the commissioner, be used for the reinsurance of its policies to the extent of their pro rata part thereof.

C. S., s. 6294; Rev., s. 4704; 1899, c. 54, s. 67; 1901, c. 391, s. 5; 1907, e. 1000, s. 4.

700. Revocation of license of foreign company; publication of notice. If the insurance commissioner is of the opinion, upon examination or other evidence, that a foreign insurance company is in an unsound condition, or, if a life insurance company, that its actual funds, exclusive of its capital, are less than its liabilities; or that it has failed to comply with the law, or if it, its officers or agents, refuse to submit to examination or to perform any legal obligation in relation thereto, or if any foreign insurance company applies to have removed from the superior court of any county of this state to the United States circuit or district court any action instituted against it, or institutes any action at law or suit in equity in a United States court against any citizen of this state, growing out of or in any way connected with any policy of insurance issued by such insurance company, he shall revoke or suspend all certificates of authority granted to it or its agents, and shall cause notifications thereof to be published in one or more newspapers published in this state; and no new business may thereafter be done by it or its agents in this state while such default or disability continues, or until its authority to do business is restored by the commissioner.

C. S., s. 6295; Rev., s. 4701; 1899, c. 54, s. 14; 1901, c. 176, s. 1. Insurance § 20. The Insurance Commissioner is not authorized to revoke the license of a foreign insurance company applying for a removal to the Federal Court of a suit brought against it by a former agent for services. -Pacific Mut. Ins. Co. v. Insurance Department, 144 N. C. 442, 57 S. E. 120.

Const. Law § 307. A state statute providing that the license of a foreign corporation shall be revoked for removing cases to the federal court is in violation of the United States Constitution and is therefore void.-Terral, Secretary of State of Arkansas, v. Burke Construction Co., 42 S. Ct. 188.

701. Revocation of license of domestic company; injunction and receiver. If, upon examination, the insurance commissioner is of the opinion that any domestic insurance company is insolvent,

or has exceeded its powers, or failed to comply with any provision of law, or that its condition is such as to render its further proceeding hazardous to the public or to its policyholders, he shall revoke its license, and, if he deems it necessary, shall apply to a judge of the superior court to issue an injunction restraining it in whole or in part from further proceeding with its business. The judge may issue the injunction forthwith, or upon notice and hearing thereon, and after a full hearing of the matter may dis solve or modify the injunction or make it permanent, and may make all orders and judgments needful in the matter, and may appoint agents or a receiver to take possession of the property and effects of the company and to settle its affairs, subject to such rules and orders as the court from time to time prescribes. C. S., s. 6296; Rev., s. 4702; 1899, c. 54, s. 14.

702. Revocation of license for violation of law or impaired assets. 1. The authority of a domestic or foreign insurance company may be revoked if it violates or neglects 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, exclusive of capital and inclusive of reserve or unearned premiums estimated as provided by this chapter, are less than the amount of its original capital or required unimpaired funds.

2. If the insurance commissioner is satisfied at any time that any statements made by any company licensed under this chapter are untrue, or if a general agent fails or refuses to obey the provisions of this chapter, the insurance commissioner may revoke and cancel such license.

An insurance company violating any provision of this chapter, or refusing to submit to the examination provided for in section 6277 of this chapter (686 herein), when requested, forfeits its right to do business in this state for twelve months thereafter, and the insurance commissioner shall immediately revoke the license issued to such insurance company to do business in this state.

C. S., s. 6297; Rev., ss. 4703, 4705; 1899, c. 54, ss. 66, 75, 112; 1901, c. 391, s. 5.

703. Agents and adjusters must procure license. Every agent or adjuster of any insurance company authorized to do business in this state shall be required to obtain annually from the insurance commissioner a license under the seal of his office, showing that the company for which he is agent or proposes to adjust is licensed to do business in this state, and that he is an agent of

such company and duly authorized to do business for it. And every such agent or adjuster, on demand, shall exhibit his license to any officer or to any person from whom he shall solicit in

surance.

C. S., s. 6298; Rev., s. 4706; 1899, c. 54, s. 81; 1901, c. 391, s. 7; 1903, c. 438, s. 8, c. 774; 1915, c. 109, s. 7, c. 166, s. 1.

704. Application for license. Before a license is issued to an insurance agent or adjuster in this state, the agent or adjuster and the company for which he desires to act shall apply for the license on forms to be prescribed by the insurance commissioner; and before he issues a license to such agent or adjuster, the insurance commissioner shall satisfy himself that the person apply. ing for license as an agent or adjuster is a person of good moral character, that he intends to hold himself out in good faith as an insurance agent or adjuster, and has sufficient knowledge of the business proposed to be done, that he has not wilfully violated any of the insurance laws of this state, and that he is a proper person for such position.

C. S., s. 6299; 1913, c. 79, s. 1; 1915, c. 109, ss. 6, 7, c. 166, s. 7.

705. Power of commissioner to revoke license. When the insurance commissioner is satisfied that any insurance agent or adjuster licensed by this state has wilfully violated any of the insurance laws of this state, or has wilfully overinsured property of any of the citizens of the state, or has wilfully misrepresented any policy of insurance, or has dealt unjustly with or wilfully deceived any citizen of this state in regard to any insurance policies, or has failed or refused to pay over to the company which he represents, or has represented, any money or property in the hands of such agent or adjuster belonging to the company, when demanded, or has in any other way become unfit for such position, the commissioner may revoke, and it shall be his duty to revoke, the license of such agent or adjuster for all the companies which he represents in this state for such length of time as he may decide, not exceeding one year. The insurance commissioner shall give to the agent or adjuster ten days notice of the revocation of such license, and shall give the reasons therefor; and the agent or adjuster shall have the right to have such revocation reviewed by any judge of the superior court of Wake county upon appeal. For the purpose of investigation under this section, the insurance commissioner shall have all the powers conferred upon him by section 6431 of this chapter (Consolidated Statutes). C. S., s. 6300; 1913, c. 79, ss. 2, 3; 1915, c. 166, s. 7.

706. Non-resident agents forbidden; exception. No non-resident of the state shall be licensed to do business in the state, except as a special agent or organizer, and then only when he reports his business for record as North Carolina business to some general or district agent of his company in the state, or having territory within the state.

C. S., s. 6301; Rev., s. 4707; 1899, c. 54, s. 108; 1903, c. 438, s. 11.

ART. 4. DEPOSIT OF SECURITIES.

707. Deposits held in trust by commissioner or treasurer. 1. Deposits by domestic company. The insurance commissioner or the treasurer, in their official capactiy, shall take and hold in trust deposits made by any domestic insurance company for the purpose of complying with the laws of any other state to enable the company to do business in that state. The company making the deposit is entitled to the income thereof, and may, from time to time, with the consent of the insurance commissioner or treasurer, and when not forbidden by the law under which the deposit was made, change in whole or in part the securities which compose the deposit for other solvent securities of equal par value. Upon request of any domestic insurance company such officer may return to the company the whole or any portion of the securities of the company held by him on deposit, when he is satisfied that they are subject to no liability and are not required to be longer held by any provision of law or purpose of the original deposit.

2. Deposits by foreign company. The commissioner or treasurer may return to the trustees or other representatives authorized for that purpose any deposit made by a foreign insurance company, when it appears that the company has ceased to do business in the state and is under no obligation to policyholders or other persons in the state for whose benefit the deposit was made.

3. Action to enforce or terminate the trust. An insurance company which has made a deposit in this state pursuant to this chapter, or its trustees or resident managers in the United States, or the insurance commissioner, or any creditor of the company, may at any time bring an action in the superior court of Wake county against the state and other parties properly joined therein, to enforce, administer, or terminate the trust created by the deposit. The process in this action shall be served on the officer of