to any of his representatives; the amount of all payments made on account or in consequence of injuries reported under such policies; the number and amount, separately, of all suits or actions against policy-holders under such policies which have been settled, either by payment or compromise; both of the above amounts to be ascertained as of date of the thirty-first day of August of the year in which the statement is made, and to include in the case of suits all payments made on account or in consequence of the injury from which the suit arose, whether prior to or later than the date at which the suit was brought. Each person shall thereupon reserve upon all said kind of policies, irrespective of the date at which the policies were issued, (1) for each suit or action pending, on injuries reported prior to eighteen months previous to the date of making the statement, whether such injuries were reported to the home office of the given company or to any of its representatives, and which is being defended for or on account of the holder of any such policy, the average cost thereof as shown by said experience, and (2) for injuries reported under such policies at any time within eighteen months, whether such injuries were reported to the home office of the given person or to any of his representatives, the average cost for each injured person as shown by said experience. From the sum so ascertained the person may deduct (1) the amount of all payments on said pending suits on injuries reported prior to eighteen months, including all payments made on account or in consequence of the injury from which the suit arose, whether prior to or later than the date at which the suit was brought, and (2) the amount of all payments made on account or in consequence of said injuries reported within eighteen months; both of the above amounts to be taken as of the date at which the statement is made. Any person who now issues, or shall hereafter issue, liability policies as aforesaid, and who shall not be engaged in liability underwriting for ten years, shall nevertheless, until such times as he may be able to state his experience of the period hereinbefore required, make and maintain a reserve upon all said kind of policies, irrespective of the date at which the policies were issued, determined as follows: (1) For each suit or action pending on injuries reported prior to eighteen months previous to the date of making the statement, whether such injuries were reported to the home office of the given company or to any of his representatives, and which is being defended for or on account of the holder of any such policy, the average cost thereof as shown by the average of said experience of all other persons stated as required by this section, and (2) for injuries reported under such policies at any time within eighteen months, whether such injuries were reported to the home office of the given person or to any of his representatives, the average cost for each injured person as shown by the average of said experience of all other companies stated as required by this section; which average costs for suits and for injured persons shall be furnished by the insurance commissioner to each such company on or before the first day of December, in each year. From the sum so ascertained each company may deduct (1) the amount of all payment [s] on said pending suits on injuries reported prior to eighteen months, including all payments made on account or in consequence of the injury from which the suit arose, whether prior to or later than the date at which the suit was brought, and (2) the amount of all payments made on account or in consequence of said injuries reported within eighteen months; both of the above amounts to be taken as of the date at which the statement is made. History: Enacted March 8, 1907, Stats. and Amdts. 1907, p. 151. § 603. INSOLVENT COMPANIES, NOTICE OF REVOCATION OF CERTIFICATE. Whenever the commissioner ascertains that any company engaged in the insurance business is insolvent within the meaning of this chapter, he must revoke the certificate of authority granted, and send by mail to such company, addressed to it at its principal place of business, or deliver to it, a notice of such revocation and cause a copy of such notice together with the proof of service to be filed in his office. History: Former section repealed and present enacted March 8, 1907, § 604. REPORT TO ATTORNEY-GENERAL. When the insurance commissioner ascertains that any insurance corporation is insolvent he must certify such fact to the attorney-general. Upon receipt of such certificate so made by the insurance commissioner, the attorney-general must commence an action against such company under the provisions of chapter five, title ten, part two of the Code of Civil Procedure. If on the trial of any such action it appears to the court that such company is insolvent, before causing judgment to be entered, the court may direct the corporation and the officers thereof to levy an assessment on the capital stock sufficient to enable the defendant corporation to pay its debts, and in such order shall give full directions as to the manner of levying such assessment and the amount thereof, and such assessment must be levied before judgment is entered. In all other respects the relief awarded against the defendant company shall be the same as provided in said chapter five of the Code of Civil Procedure. Any receiver thereafter appointed to liquidate the affairs of such company, shall have full power to bring such actions as may be necessary for the purpose of recovering the amounts of the assessments levied as herein provided. In any action commenced pursuant to the provisions of this section the court shall have power to authorize the defendant insurance company, or the receiver appointed to liquidate the affairs of such company, to reinsure all or any part of the business theretofore written by such company. History: Former section repealed and present enacted March 8, 1907, § 604a. INSOLVENCY PROCEEDINGS. When the insurance commissioner shall have revoked the certificate of authority authorizing any insurance company, not a corporation, to do business on the ground that such company is insolvent, any person or persons may commence insolvency proceedings against such company. Such proceedings must be done, had, and taken in all respects as provided by the then existing insolvency laws of the state. History: Enacted March 8, 1907, Stats. and Amdts. 1907, p. 153. § 605. FEES TO BE PAID TO COMMISSIONER. The commissioner must require in advance, in United States gold coin, the following fees: 1. For filing the articles of incorporation or certified copies of articles or other certificates 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; 7. For filing any copy of any paper in this section mentioned or any amendment thereof, ten dollars; 8. For registering each policy, one dollar; . 9. For issuing each annual certificate of authority authorizing any insurance company to transact business in this state, ten dollars annually; 10. For issuing each annual license authorizing an agent to solicit any insurance business, one dollar; 11. For attaching the seal of office to any paper or document not herein specified, one dollar; 12. For issuing any other certificate, two dollars. History: Former section repealed and present enacted in place thereof § 606. ASSESSMENTS FOR DEFICIENCY IN SALARY AND EXPENSES. If the salary of the commissioner and the expenses of his office exceed 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 amount of premiums received or receivable from risks taken in this state, respectively, during the year ending on the thirty-first day of December next preceding the assessment. The commissioner must collect all fees and assessments, and pay monthly into the state treasury whatever amounts may be received and collected by him. If any insurance company neglects or refuses to pay the amount of any such assessments within ten days after demand thereof in writing by the insurance commissioner, the commissioner may revoke the certificate of authority previously granted and commence an action to recover such assessment. History: Former section repealed and present enacted in place thereof § 607. CERTIFICATES TO BE FILED IN OFFICE OF. The commissioner must cause every company, before engaging in the business of insurance, to file in his office as follows: 1. If incorporated under the laws of this state, a copy of the articles of incorporation certificate of any increase or diminution of the capital stock, certified by the secretary of state to be a copy of that which is filed in his office; 2. If incorporated under the laws of any other state or country, a copy of the articles of incorporation, if organized or formed under any law requiring articles to be filed, duly certified by the officer having the custody of such articles; or if not so organized, a copy of the law, charter, or deed of settlement under which the deed of organization is made, duly certified by the proper custodian thereof, or proved by affidavit to be a copy; also, a certificate under the hand and seal of the proper officer of such state or country having supervision of in surance business therein, that such corporation or company is organized under the laws of such state or country, with the amount of capital stock or assets required by this article. 3. If not incorporated, a certificate setting forth the nature and character of the business, the location of the principal office, the names of the persons and of those composing the company, firm, or association, the amount of actual capital employed or to be employed therein, and the names of all officers and persons by whom the business is or may be managed. The certificate must be verified by the affidavit of the chief officer, secretary, agent, or manager of the company; and if there are any written articles of agreement or company, a copy thereof must accompany such certificates; [Proviso.] Provided, however, when the number of persons composing such company shall exceed ten, such certificate need not state the names of any greater number of persons than ten, who shall be the largest owners; and if such company be formed out of the United States, the said certificate need not contain the names of any officers or managers other than those resident within the United States, nor any statement of capital not employed within the United States, and the affidavit must be made by the chief executive officer or manager in the United States. [Certified copy of changes.] When by any law, agreement, or other instrument, any change is made in respect to the particulars set forth in any certificate hereinabove mentioned, a certified copy of such law, agreement, or other instrument must be filed by such insurance company with the insurance commissioner. History: Former section repealed and present enacted in place thereof § 608. ACTIONS NOT TO BE TRANSFERRED TO UNITED STATES COURT. If any foreign insurance company doing business in this state shall transfer or cause to be transferred to the United States circuit court from any court of this state having jurisdiction of the subject-matter, any action or special proceeding arising or growing out of any business previously transacted in this state, then the insurance commissioner shall have the power and it shall be his duty upon receiving a certified copy of the record showing the facts hereinabove set forth to immediately revoke the certificate of authority authorizing such company to transact insurance business in this state. History: Former section repealed and present enacted March 8, 1907, Stats. and Amdts. 1907, p. 155, a substantial re-enactment of a similar provision in former § 595. In effect immediately. CONSTITUTIONALITY: Our supreme court never passed upon the constitutionality of former § 595, which contained substantially the same provision as is found in the present § 608. But the supreme court of the United States, in a decision handed down May 14, 1906, passed upon § 631 Kentucky Statutes, which, among other things, has identically the same provision as is contained in the above section, holding, by a divided court, that a state may, by statute, provide that where a foreign insurance company shall remove an action commenced against it in a state court to a federal court, the license of such corpora The tion to do business in the state shall there- "A state has the right to prohibit a foreign corporation from doing business within its borders unless such prohibition is so conditioned as to violate some provision of the federal constitution. . . .Having the power to prevent a foreign insurance company from doing business at all within the state, we think the state can enact a statute such as is above set forth. . . . The state may compel the foreign corporation to abstain from the federal courts or to cease to do business within the state. It gives the company the option. This is justifiable because the complainant (company) has no constitutional right to do business in that state. That state has authority at any time to declare that it shall not do business there. This is the whole point of the case, and, without reference to the injustice, the prejudice, the wrong that is alleged to exist, must determine the question. No right of the complainant (company) under the laws or constitution of the United States, by its exclusion from the state, is infringed, and that is what the state now accomplishes. There is nothing, therefore, that will justify the interference of this court. . . . The effect of the statute is simply to place foreign insurance companies upon a par with domes tic ones doing business in Kentucky See, also, cases 12 Cent. Dig. tit. "Corporations," § 2506; 13 Cent. Dig. tit. "Courts," § 796. § 609. MAY DETERMINE NAME OF NEW CORPORATION. The commissioner must require the name under which any company hereafter proposes to be formed or organized under the laws of this state, for the transaction of insurance business, to be submitted to him before the commencement of such business; and he may reject any name or title so submitted when the same is an interference with or too similar to one already appropriated, or likely to mislead the public in any respect; and in such case a name not liable to such objection must be chosen. History: Former section repealed and present section enacted in place thereof March 8, 1907, Stats. and Amdts. 1907, p. 155. In effect immediately. § 610. STATEMENTS TO BE MADE BY INSURANCE COMPANIES. HOW VERIFIED. The commissioner must require statements and reports to be verified as follows: (1) If it be made by a corporation organized under the laws of this state, by the oaths of any two of the executive officers thereof; (2) If it be made by an individual or firm, by the oath of such individual or member of the firm; (3) If made by a foreign insurance company, or person, by the oath of the principal executive officer thereof, or manager residing within the United States. History: Former section repealed and present enacted March 8, 1907, § 611. ANNUAL STATEMENT BY INSURANCE COMPANIES OF BUSINESS DONE IN STATE. All companies doing business in this state must make and file with the insurance commissioner, on or before the first day of March of each year statements, which must exhibit the condition and affairs of every such company, on the thirty-first day of December then next preceding, which statements, as adjusted by the commissioner upon a proper examination of the same, must be published by such company daily, for the period of one week, in some newspaper published in the city where the principal office in this state is located. History: Former section repealed and present enacted March 8, 1907, § 612. WHAT STATEMENT MUST SHOW. Such statement, if made by other than life insurance companies, must show: [Capital.] First-The amount of the capital stock of the company. |