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effected, whenever required by the insurance commissioner so to do, shall produce for examination by him the policy or policies issued for such insurance, and disclose to him the true amount of the gross premiums agreed to be paid therefor, and upon refusal so to do shall forfeit to the state of California for each such refusal the sum of two hundred dollars to be recovered in a eivil action.

[Policies void, when.] All policies and insurance contracts issued without full compliance, by all parties concerned, with the laws of this state are null and void.

History: Former section repealed and present substituted therefor
March 8, 1907, Stats. and Amdts. 1907, p. 146. In effect immediately.

§ 596a. ATTORNEY-GENERAL TO EXAMINE DOCUMENTS. Before the insurance commissioner issues any certificate of authority or any other certificate or gives any permission or authority of any kind, based upon any written instrument or document or certified copy thereof, required by the statutes of the state of California, the commissioner shall submit such instrument, document or certified copy to the attorney-general of the state of California, who shall examine the same and return it to the commissioner with his certificate or opinion as to whether such instrument, document or certified copy is in accordance with the requirements of law, and such certificate or opinion of the attorney-general shall govern and control the commissioner, subject only to review by a court of competent jurisdiction, provided that neither the authority to nor bond of an agent or solicitor, nor the annual statements as to the condition and affairs need, but may, be so submitted (with the same effect) by the commissioner to the attorney-general.

History: Enacted March 8, 1907, Stats. and Amdts. 1907, p. 147.
In effect immediately.

$597. EXAMINATION OF AFFAIRS OF COMPANIES, WHEN. The commissioner, whenever he deems necessary, or whenever he is requested by verified petition, signed by twenty-five persons interested, either as stockholders, policy-holders, or creditors of any company engaged in insurance business in this state, showing that such company is insolvent under the laws of this state, must make an examination of the business and affairs relating to the insurance business of such company, and must make such an examination whenever any company is organized to do insurance business in this state, and before issuing a certificate of authority other than renewals to such company, and may make such examination whenever any company not organized under the laws of this state applies for a certificate to do insurance business in this state, and before issuing a certificate of authority to such company; and for such purposes shall have free access to all the books and papers of such company, and must thoroughly inspect and examine all its affairs, and ascertain its condition and ability to fulfil its engagements, and that it has complied with all the provisions of law applicable to its insurance transactions. [Inspection of books.] Such company must open its 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 person relative to the business of such company; and if he finds the books to have been carelessly or improperly kept or posted he must employ sworn

experts to re-write, post and balance the same at the expense of such company. Such examination must be conducted in the county where such company has its principal office, 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. Whenever the commissioner shall deem such examination necessary, the same must be at the expense of the company, such expense to be paid in advance, and if any such company refuses to pay such expenses in advance the insurance commissioner may refuse to issue any such certificate of authority and must revoke any existing certificate of authority authorizing such company to do business.

History: Former section repealed and present enacted in place thereof
March 8, 1907, Stats. and Amdts. 1907, p. 147. In effect immediately.

§ 597a. LIST OF POLICIES OF INSURANCE ISSUED BY INSURANCE COMPANIES TO BE FURNISHED THE INSURANCE COMMISSIONER. The commissioner has power to, and whenever he deems necessary may, in writing, require any company engaged in insurance business in the state of California, to furnish the commissioner, as of a date, past or present, to be designated by the commissioner, a full and complete list of all its policies of insurance on property or risks located within that portion of the state of California included within the territory described by the commissioner, and which policies had not by the terms thereof expired on the date designated by the commissioner.

Such list must show the number of the policy, the name in which the policy was issued, the amount for which it was issued, the nature and description of the property on which the policy was written or the nature of the risk assumed by the company, the location of the property and the residence of the insured, and the form or class of such policy as designated on the policy by the company. The commissioner shall require such

[List to be accompanied by forms of policies.] List to be accompanied by the several forms of policies so designated and classified by the company, and the forms of riders, if any, attached to each particular form of policy.

[Penalty for failure to furnish list and forms.] Any company which fails or neglects to furnish such lists and forms for the period of ten days from the date of the commissioner's request, shall forfeit its right to do business in this state, and the commissioner shall thereupon revoke, in the manner provided in section six hundred of this code, the certificate previously granted such company to do business in this state, and said company shall also be liable to a penalty in the sum of two thousand dollars, for the payment of which penalty suits may be instituted by the commissioner in the name of the people of the state of California, in a court of competent jurisdiction, to recover such penalty or accumulated penalties.

[Liability for penalty upon bond filed by company.] Said company shall be liable for said penalty or penalties upon the bond filed by said company, pursuant to section six hundred and twenty-three of the Political Code. History: Enacted June 3, 1906, Stats. and Amdts. 1906, pp. 6, 7. In effect immediately.

Note: This enactment probably falls by the repeal of the article to which it was added by the extraordinary session of the legislature of 1906.

$598. POLICY-HOLDERS MAY PROCURE INFORMATION ABOUT POLICIES. Any person interested in, as owner, assignee, pledgee or payee, of any policy of insurance and desiring any information about such policy, may file with the insurance commissioner an affidavit showing that he is entitled to the benefits of the provisions of this section and apply to the insurance commissioner for his certificate of the facts or information desired. If the records of his office show the facts or information desired, the insurance commissioner shall prepare his certificate reciting such facts or information. If his records do not show the facts or information desired the insurance commissioner may deliver an order to the agent of the company, designated under section six hundred and sixteen of the Political Code, directing such company to state such information or facts in an affidavit and deliver such affidavit to him. [Company must make statement.] In such affidavit the company must make a full, true and correct statement of all the said facts and information in the possession of said company, whether such information be contained in the books, records, or papers in this state or in any other state or country. If such company neglects or refuses to make and deliver such affidavit to the insurance commissioner within ninety days from the date of the delivery of the said order by the commissioner to the said agent as herein provided, the commissioner must revoke the certificate of authority authorizing the company to do business in this state. Immediately after receiving any affidavit from any insurance company pursuant to the provisions of this section the commissioner must certify such affidavit to the person so applying for the information or facts. Such affidavit so certified by the insurance commissioner shall be delivered to the applicant by delivering it to him personally or by depositing the same in the United States post-office and prepaying the postage thereon.

[Lost policy, stay of rights.] If a loss has been sustained under any policy of insurance and such policy has been lost or destroyed all rights of every kind and nature and the time for the presentation of notice of loss and the time for the presentation of proof of loss are stayed from the date such interested person delivers to the commissioner the affidavit herein provided for and until five days after the date of the delivery by the insurance commissioner to such interested person of any affidavit furnished by any insurance company pursuant to the provisions of this section.

History: Former section repealed and present enacted in place thereof
March 8, 1907, Stats. and Amdts. 1907, p. 148. In effect immediately.

$599. MAY ISSUE SUBPOENAS. 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 may be served, obeyed, and enforced as provided in the Code of Civil Procedure for civil cases, and the commissioner may issue attachments and impose the same penalty which a court might impose for disobedience; and, in addition, the defaulting witness may be punished as provided in the Penal Code.

History: Former section repealed and present enacted in place thereof
March 8, 1907, Stats. and Amdts. 1907, p. 149. In effect immediately.

§ 600. RECORDS OF COMMISSIONER. 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 company visited or examined by him. History: Former section repealed and present enacted March 8, 1907, Stats. and Amdts. 1907, p. 149. In effect immediately.

§ 600a. RESTORATION OF AUTHORITY AFTER REVOCATION. If any insurance company (whose certificate of authority has been revoked by the insurance commissioner on the ground that such company is insolvent) within ninety days after the receipt of the notice of revocation, shall repair its capital to such an extent that such company is solvent within the provisions of section six hundred and two of the Political Code, then upon such fact being made to appear to the insurance commissioner, he may issue a new certificate of authority in the same manner and to the same effect as an original certificate of authority.

History: Enacted March 8, 1907, Stats. and Amdts. 1907, p. 149.
In effect immediately.

§ 601. EMPLOYMENT OF ACTUARY. The commissioner may employ an actuary to make the valuation of life policies [,] at a compensation of not exceeding one cent for each thousand dollars of insurance, to be paid by the company for which the valuation is made.

History: Former section repealed and present enacted March 8, 1907, Stats. and Amdts. 1907, p. 149, a re-enactment of former § 604. In effect immediately.

§ 602. WHAT CONSTITUTES INSOLVENCY. Whenever provisions for the liabilities of any company engaged in the business of fire, marine, or inland navigation insurance in this state, for losses reported, expenses, taxes and reinsurance of all outstanding risks, estimated at fifty per cent of the premiums received and receivable on all fire risks and marine time risks, at the full premiums received and receivable on all other marine risks, would so far impair its capital paid in as to reduce the same below two hundred thousand dollars, or below seventy-five per cent of said capital paid in, such company is insolvent; and in case of a company engaged in such insurance in this. state, on the mutual plan, if the available cash assets of such company shall not exceed its liabilities, as hereinbefore enumerated, in the full sum of two hundred thousand dollars, such company is insolvent; and wherever provision for the liabilities of any company engaged in the business of insuring any one against loss or damage resulting from accident to or injury suffered by an employee or other person for which the person insured may be liable, for losses reported, expenses, taxes, and reinsurance of all outstanding risks estimated as provided in section six hundred and twelve a of the Political Code would so far impair its capital paid in as to reduce the same below one hundred thousand dollars, or below seventy-five per cent of said capital paid in, such company is insolvent; and whenever provision for the liabilities of any company engaged in any kind of insurance business in this state, other than life, liability, and insurance of titles to real estate, provided for in section four hundred and twenty of the Civil Code of this state, for losses reported, expenses, taxes, and reinsurance of all outstanding risks, estimated at such rates as are accepted by the insurance authorities of the state of New York, would so far impair its

capital paid in as to reduce the same below one hundred thousand dollars, or below seventy-five per cent of said capital stock paid in, such company is insolvent; and in case of a company engaged in such insurance business in this state, on the mutual plan, if its available cash assets shall not exceed its liabilities, as herein before enumerated, in the full sum of one hundred thousand dollars, such company is insolvent. In the case of a company engaged in the business of life insurance, whenever its liabalities for losses reported, expenses, taxes, and reinsurance of all its outstanding risks written prior to January 1st, eighteen hundred and ninety-two, at the rates based upon the American Experience Table of Mortality with interest at the rate of four and one half per cent per annum, and reinsurance of all its outstanding risks written from and after the thirty-first day of December, eighteen hundred and ninety-one, up to and including the thirty-first day of December, nineteen hundred and seven, at rates based upon the Combined Experience or Actuaries Table of Mortality with interest at the rate of four per cent per annum, and reinsurance of all its outstanding risks written from and after December thirty-first, nineteen hundred and seven, at rates based upon the American Experience Table of Mortality with interest at the rate of three and one half per cent per annum, exceeds its assets such company is insolvent. In the case of a company engaged in the business of insurance of the title to real estate, whenever provision for its liability for losses reported, expenses, and taxes, would, after exhausting its surplus fund, so far impair its capital stock paid in as to reduce the same below one hundred thousand dollars, or below seventy-five per cent of said capital paid in, such company is insolvent.

March 8, 1907, Stats. and Amdts. 1907, p. 149. In effect immediately.

History: Former section repealed and present enacted in place thereof

§ 602a. HOW CONDITIONS OF COMPANY SHALL BE ESTIMATED. In estimating the condition of any company engaged in the business of liability insurance under the provisions of this article the insurance commissioner shall charge as liabilities all outstanding indebtedness of such company, and the premium reserve on policies in force, equal to the unearned portions of the gross premiums charged for covering risks, computed on each respective risk from the date of the issuance of the policy. There shall also be charged as a liability to each company engaged in the business of insuring any one against loss or damage resulting from accident to or injury suffered by an employee or other person for which the person insured may be liable, whether a natural person, a firm or a corporation organized under the laws of this or any other state or country, a further reserve as hereinafter provided.

[How reserve to be computed.] For the purpose of computing said reserve, each company which has been engaged in liability underwriting for ten years or more, shall, on or before the first day of October in each year, state in writing to the insurance commissioner its experience in the United States, under all forms of liability policies, each year separately according to the calendar years in which the policies were written, during a period of five years commencing ten years previous to the thirty-first day of December of the year in which the statement is made, in the following particulars, namely: The number of persons reported injured under all of the forms of liability policies, whether such injuries were reported to the home office of the given person or

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