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dollars nor shall such company do in California any other of such kinds of insurance except the third nor do the third without having in addition to such two hundred thousand dollars capital stock at least two hundred thousand dollars capital stock for such additional kind of insurance.

[Capital stock for marine insurance companies.] After January 1st, 1908, no company having a capital stock shall do in California any of said third kind of insurance without having a capital stock of at least two hundred thousand dollars nor shall any such company do in California any other of said kinds of insurance except the second nor do the second without having in addition to such two hundred thousand dollars capital stock at least two hundred thousand dollars capital stock for such additional kind of insurance.

[Capital stock for other insurance companies.] After January 1st, 1908, no company having a capital stock shall do in California any of the fourth or fifth or sixth or seventh or eighth or ninth or tenth or eleventh or twelfth or thirteenth of said kinds of insurance without having a capital stock of at least one hundred thousand dollars nor shall any such company do in California any other of said fourth or fifth or sixth or seventh or eighth or ninth or tenth or eleventh or twelfth or thirteenth kinds of insurance without having in addition to such one hundred thousand dollars capital stock at least fifty thousand dollars capital stock for each additional kind of insurance.

[Capital stock must be paid up.] Such capital stock required must be fully paid up before the doing of any such business in the state of California except that companies incorporated under the laws of California must have at least twenty-five per cent of their capital stock paid in previous to the issuance of any policies and the residue within twelve months of the filing of the certificate of incorporation.

The capital stock required must be exclusive of all liabilities for losses reported, expenses, taxes and re-insurance of all outstanding risks, as provided in section six hundred and two of the Political Code.

[Cash assets required.] Every company organized or formed under the laws of any other state or country as a mutual or as a joint stock and mutual company having a capital stock of not less than one hundred thousand dollars must have in lieu of such capital stock available cash assets of at least two hundred thousand dollars above all liabilities for losses reported, expenses, taxes, and re-insurance of all outstanding risks as provided in section six hundred and two of the Political Code.

History: Former section repealed and present enacted March 8, 1907,

Stats. and Amdts. 1907, p. 141 In effect immediately. $ 594a. FOREIGN COMPANIES, DEPOSIT OF SECURITIES. No insurance company organized or existing under the laws of any country outside of the United States shall transact any business of insurance in the state of California without first making deposit, and thereafter continuously maintaining such deposit except as hereinafter otherwise specially provided, so long as any such business transacted in this state remains in existence for any purpose whatever, either unmatured or matured but unsettled, and whether in controversy or not. Such deposit must be of securities which the law of California permits for the investment of the assets of such California insurance companies. Such deposits may be with the insurance commissioner or superintendent of insurance, or with the auditor, controller or general fiscal officer of any state in the United States in which said foreign company is authorized to do such insurance business, or a like amount held in trust for the purposes herein specified as provided for by the laws of that state.

The amount of the deposit must be equal to the minimum amount of the capital stock or available cash assets required by the preceding section.

Such deposit may for all purposes of the insurance laws of this state be treated as a part of the capital of the company making it.

[Deposits in other states.] If such deposit is not so maintained in the state of California, its exitsence in some other state of the United States shall be certified at least annually to the insurance commissioner of the state of California by the superintendent of insurance or commissioner of insurance or auditor, or controller, or general fiscal officer of the state in the United States wherein such deposit is so maintained, and also so certified oftener and whenever from time to time required by the insurance commissioner of the state of California, and such certificate shall show in detail of what such deposit consists.

The value of such securities so deposited must be equal to the value of interest-bearing bonds of the United States government, but none of such securities shall be estimated above the par value of the same nor above the market value. Such deposits must be for the benefit and security of all the policy-holders of the company in the United States. Such securities so deposited with the insurance commissioner of the state of California shall be by him specially deposited in the state treasury in packages marked with the name of the company from whom received, and so long as the company continues solvent it shall be permitted to collect the interest or dividends on the securities so deposited, and from time to time to withdraw such securities on depositing other securities in the stead of those to be withdrawn, such new securities to be of the character and value specified in this section,

[How securities withdrawn.] But none of such securities shall be withdrawn from the state treasury except upon the written order of the company making the deposit, which order must be indorsed by the insurance commissioner of the state of California or else such withdrawal must be had under the authority of some court of competent jurisdiction, which must be obtained if the insurance commissioner for any reason refuses to so indorse said order. Whenever such deposit has been made with the insurance commissioner of the state of California as provided in this section, said commissioner must issue to the company so depositing, a certificate under his official seal stating the items and amount of securities so deposited, and their value, to the best of his knowledge, information and belief, and in case of withdrawal and substitution, he shall issue suitable supplemental similar certificate. None of the provisions of this section shall affect the present statutes of California, either as to registered policies, or under what is known as the retaliatory law, or otherwise, either as to papers, bonds, or other securities.

History: Enacted March 8, 1907, Stats. and Amdts. 1907, p. 143.

In effect immediately. $ 595. GENERAL DUTIES OF COMMISSIONER. The insurance commissioner must receive all bonds and securities of persons engaged in the trans

action of insurance business in this state, and file and safely keep the same in his office, or deposit them as provided by law. He must examine and inspect the financial condition of every company engaged, or which desires to engage in the business of insurance and issue a certificate of authority to transact insurance business in this state to any company in a solvent condition which has fully compled with the laws of this state. He must 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. He must make, on or before the first day of August in each year, a report to the governor of the 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 verified statement, of the moneys and fees of office received by him, and for what purpose, and the printing of said report and all other printing required by the insurance department shall be exempt from the provisions of article twelve, chapter three, title one, part three of the Political Code.

[Companies may surrender certificate; manner of.] Any insurance company may pay the fees and costs therefor and may surrender to the insurance commissioner its certificate of authority previously granted, and apply to withdraw from this state, such application to be in the form of a written instrument, duly executed, and accompanied with evidence of due authority for such execution, and such written instrument to be properly acknowledged. The commissioner, at the expense of the company, paid by it in advance, must make due publication of such application for withdrawal, daily, for the period of one week, in each of two daily newspapers of general circulation, the one published in the city of San Francisco, and the other in the city of Sacramento.

The commissioner must make such examination of the books of such company as may be necessary to ascertain that such company has no liabilities outstanding and not paid to residents of this state and no uncanceled policies in favor of residents of this state and if he finds that such company has no outstanding liabilities to residents of this state and no uncanceled policies in favor of the residents of this state, he shall cancel such certificate of authority. All such examinations must be at the expense of the company, and such expense must be paid in advance.

History: Former section repealed and present enacted in place thereof

March 8, 1907, Stats. and Amdts. 1907, p. 145. In effect immediately. § 595 [a]. DUTIES OF; SUITS BY; REVOCATION OF LICENSE. 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, and are in nowise in arrears to the state, or to any county or city of the state, for fees, licenses, taxes, or penalties accrued upon business previously transacted in the 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 moneys and fees of office received by him, and for what purpose.

[Surrender of certificates.] And whenever any insurance company, doing business in this state, shall voluntarily surrender to the insurance commissioner its certificate of authority previously granted, thereby withdrawing from business in this state, the commissioner must make due publication of such surrender and withdrawal daily for the period of one week, in each of two daily newspapers, the one published in the city of San Francisco, and the other in the city of Sacramento.

[Transfer of suits to federal court by insurance company-Revocation of license.] It is further enacted that if in any action hereafter commenced in the superior court of this state, by a citizen thereof, against a foreign corporation or company doing insurance business in this state, such corporation or company shall transfer, or cause to be transferred, remove, or cause to be removed, such action to the United States circuit court, the right of such corporation or company to transact insurance business in this state shall thereupon and thereby cease and determine; and the insurance commissioner shall immediately revoke the certificate of such corporation or company authorizing it to do business in this state, and publish such revocation daily, for the period of two weeks, in each of some two daily newspapers, the one published in the city of San Francisco, and the other in the city of Sacramento.

History: Amended Feb. 20, 1907, Stats. and Amdts. 1907, p. 13.
In effect immediately.

Note: By chapter 119, approved thirteen days later (Stats. and
Amdts. p. 141), the whole of Article XVI was repealed and a new
Article XVI substituted therefor. This is thought to carry down the above
amendment, but whether it does or not is for the court to decide, and for
that reason is retained in text until ruling by court.

CERTIFICATE TO DO BUSINESS. No company shall transact any insurance business in this state without first complying with all the provisions of the laws of this state and thereafter procuring from the insurance commissioner a certificate of authority and continuing to comply with the laws of this state, provided that insurance in companies not authorized to

Stats. and Amdts.-3

$ 596.

transact business in this state may be placed upon the terms and conditions in this section hereafter set forth.

Such certificate of authority shall expire on the first day of July after it is issued unless sooner revoked, and must be renewed annually.

No certificate of authority shall be granted or renewed to any company in arrears to the state, or to any county or city of the state, for fees, licenses, taxes, assessments, fines or penalties accrued upon business previously transacted in the state nor while the company is otherwise in default for failure to comply with any of the laws of this state regarding the government and control by the state, of such company and all such authorizations and certificates of authority heretofore granted shall expire on July 1st, 1907.

[License to procure insurance in companies not authorized to do business.] The insurance commissioner may issue a license to any citizen of this state, subject to revocation at any time, permitting the person named therein to procure policies of insurance on risks located in this state for companies not authorized to transact business in this state, and for such license the irsurance commissioner shall collect a fee of fifty dollars for each such license and renewal thereof and each such license and renewal shall expire on the first day of July unless sooner revoked.

[Affidavit required.] Before the person named in such license shall procure any insurance in such company he shall in every case execute and file with the insurance commissioner an affidavit that he is unable to procure, for a specified person, firm or corporation, in a majority of the companies authorized to do business in this state the amount of insurance necessary.

[Account of business.] Every person so licensed shall keep a separate account of the business done under said license, open at all times to the inspection of the insurance commissioner, and shall file a certified copy thereof forthwith with the insurance commissioner, showing the exact amount and character of such insurance placed for any person, firm or corporation, the gross premiums charged thereon, the companies in which the same is placed, the dates of the policies and the terms thereof, the location of the insured property and also a report in the same detail of all such policies canceled and the gross return thereon.

[Bond of licensee.] Before receiving such license the person licensed shall execute and deliver to the insurance commissioner a bond to the people of the state of California in the penal sum of twenty thousand dollars, with such sureties as the commissioner shall approve, conditioned that the licensee will faithfully comply with all the requirements of this section, and will file with the insurance commissioner on or before the first day of March of each year, a sworn statement of the gross premiums charged for insurance procured or placed, and the gross return premiums on such insurance canceled under such license during the year ending on the thirty-first day of December last preceding, and will pay to the insurance commissioner of the state of California, for the use and benefit of said state, an amount equal to four per cent of such gross premiums less such return premiums so reported, and in default of the payment of any sum imposed by this section, the said insurance commissioner may sue for same in any court of record in this state.

[Examination of policies issued by licensee.] Any person, firm, company or corporation for whom such insurance as herein specified shall have been

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