Eligibility General duties of. SECTION 627. Statements to be based on gold coin values. 628. Salary. 629. Salary of Deputy, 32 Official bond. SEC. 594. No person is eligible to the office of Insurance Commissioner or Deputy who is an officer, agent, or employé of an insurance company. Stats. 1868, p. 336, Sec. 2. SEC. 595. The Insurance Commissioner must receive all bonds and securities of persons engaged in the transaction of insurance business in this State, and file and safely keep the same in his office, or deposit them as provided in this Article. He must examine and inspect the financial condition of all persons engaged or who desire to engage in the business of insurance; issue a certificate of authority to transact insurance business in this State to any persons in a solvent condition who have fully complied with the laws of this State; determine the sufficiency and validity of all bonds and other securities required to be given by persons engaged or to be engaged in insurance business, and cause the same to be renewed in case of the insufficiency or invalidity thereof, and perform all other duties imposed upon him by the laws regulating the business of insurance in this State, and enforce the execution of such laws; prepare and furnish on demand, to all persons engaged in the insurance business, blank forms for such statements or reports as may by law be required of them; make, on or before the first day of August in each year, a report to the Governor of this State, containing a tabular statement and synopsis of the reports which have been filed in his office, showing generally the condition of the insurance business and interests in this State, and other matters concerning insurance, and a detailed statement, verified by oath, of the money's and fees of office received by him, and for what purposes. Stats. 1868, p. 337, Sec. 4. insurance transacted SEC. 596. No person must transact insurance business Business of in this State without first procuring from the Insurance not to be Commissioner a certificate of authority, as in this Chapter without his provided; and all policies issued or renewed and all insurances taken before the issuing of such certificate are null and void. and Stats. 1868, p. 339, Sec. 9-modified. SEC. 597. The Commissioner, whenever necessary, or whenever he is requested by verified petition, signed by three persons interested, either as stockholders, policy holders, or creditors of any person engaged in insurance business, showing that such person is insolvent under the laws of this State, must make examination of the business and affairs relating to the insurance business of such person; and for such purpose has free access to all the books papers of such person, and must thoroughly inspect and examine all his affairs, and ascertain his condition and ability to fulfil his engagements, and whether he has complied with all the provisions of law applicable to his insurance transactions. Such person and his officers and agents must open his books and papers for the inspection of the Commissioner, and otherwise facilitate such examination; and the Commissioner may administer oaths and examine under oath any persons relative to the business of such person; and if he finds the books to have been carelessly or improperly kept or posted, he must employ sworn experts to rewrite, post, and balance the same at the expense of such person. Such examination must be conducted in the county where such person has his principal place of business, and must be private, unless the Commissioner deems it necessary to publish the result of such investigation, in which case he may publish the same in two of the public newspapers of this State, one of which must be published in the City of San Francisco. Stats. 1868, p. 337, Sec. 6. certificate. To examine companies, affairs of when. imposed if refuse. SEC. 598. The Commissioner may collect the sum of Fines five hundred dollars from any person engaged in the companies business of insurance for each refusal to give full and truthful information and response in writing to any May issue subpoenas. Proceedings on insolvency of compa nies; must require capital stock to be repaired, when. inquiry in writing by the Commissioner relating to the business of insurance as carried on by him; and for that purpose suits may be instituted by the Commissioner, in the name of the people of the State of California, in any Court of competent jurisdiction. Stats. 1868, p. 337, Secs. 5-10. SEC. 599. The Commissioner may issue subpoenas for witnesses to attend and testify before him on any subject touching insurance business or in aid of his duties, which must be served, obeyed, and enforced as provided in the Code of Civil Procedure for civil cases, the Commissioner to issue attachments and impose the penalty for disobedience; and, in addition, the defaulting witness. may be punished as provided in the Penal Code. Stats. 1867-8, p. 339, Sec. 10-modified. SEC. 600. Whenever the Commissioner ascertains that any person engaged in the insurance business is insolvent within the meaning of this Chapter, he must revoke the certificate granted, and send by mail to such person, addressed to him at his principal place of business, or deliver to him personally, notice of such revocation, and cause notice thereof to be filed in his office and also to be published daily for four weeks in some newspaper published in the City of San Francisco. He must require such person, after receiving notice of the revocation, or after the first publication thereof, to discontinue the issuing of any new policies and the renewal of any previously issued; and in such cases must require the person or the manager or agent. of the business to repair the capital thereof within such period as he may designate in such requisition by assessment upon the stockholders for such amounts as will make the capital equal to the amount of the paid up capital, exclusive of assets needed to pay all ascertained liabilities for losses. reported, for expenses and taxes, and exclusive of the entire premiums received for outstanding risks. Stats. 1868, p. 338, Sec. 8. he in ings when done. this is not SEC. 601. In case any person, upon the requisition of Proceedthe Commissioner, fails to make up the deficiency of the capital in accordance with the requirements of this Chapter, or to comply in all respects with the laws of this State, the Commissioner must communicate the fact to the Attorney General, who must commence an action in the name of the people of this State, in the District Court of the Judicial District where the person in question is located or has his principal office, against such person, and apply for an order requiring cause to be shown why the business should not be closed; and the Court must thereupon hear the allegations and proofs of the respective parties as in other cases. If it appears to the satisfaction of the Court that such person is insolvent, or that the interests of the public so require, the Court must decree a dissolution of such corporation, and a winding up of its affairs and a distribution of the effects of such person; but otherwise, the Court must enter a decree annulling the act of the Commissioner in the premises, and authorizing such person to resume business. But the Commissioner must not be held liable for damages, if he has acted in good faith. In the event of any additional losses occurring upon new risks taken after the expiration of the period limited by the Commissioner in the requisition, and before the deficiency has been filled up, the Directors of any company, corporation, or association. are individually liable to the extent thereof. Stats. 1868, p. 339, Sec. 8. constitutes SEC. 602. Whenever the liabilities of any person What engaged in the insurance business, for losses reported, insolvency. expenses, taxes, and reinsurance of all outstanding risks, estimated at fifty per cent of the premiums received on fire risks and marine time risks, at the full premiums on all other marine risks, and at rates for life risks based upon the rate of mortality as established by the American Experience Life Table, and the rate of interest assumed to be four and one half per cent per annum, and such rates for accidental and other kinds of insurance as are gene Must keep a record. May employ actuary, when. Fees to be paid to Commissioner. Assessments for deficiency in salary and expenses. rally accepted by the Superintendent of the Insurance Department of the State of New York, would impair his capital stock already paid in to an extent exceeding twenty per cent, such person is insolvent. Stats. 1868, p. 338, Sec. 7. SEC. 603. The Commissioner must keep and preserve in a permanent form a full record of his proceedings, including a concise statement of the condition of each person visited or examined by him. Stats. 1868, p. 341, Sec. 16. SEC. 604. The Commissioner may employ an actuary to make the valuation of life policies, at the compensation of not exceeding three cents for each thousand dollars of insurance, to be paid by the person or corporation for which the valuation is made. Stats. 1870, p. 860, Sec. 1. SEC. 605. The Commissioner must require in advance, in United States gold coin, the following fees: 1. For filing the articles of incorporation or certified copy of articles or other certificate required to be filed in his office, thirty dollars; 2. For filing the annual statement required to be filed, twenty dollars; 3. For filing any other papers required by this Chapter to be filed, five dollars; 4. For furnishing copies of papers filed in his office, twenty cents per folio; 5. For certifying copies, one dollar each; 6. For each certificate issued as provided in section six hundred and nineteen, the sum of five dollars. Stats. 1868, p. 340, Sec. 13. SEC. 606. If the salary of the Commissioner and the expenses of his office exceeds the fees and charges collected by him, such excess must be annually assessed by the Commissioner upon all persons or corporations engaged in the business of insurance in this State, and they are severally liable therefor, pro rata, according to the |