coast), which power of attorney shall authorize a citizen and resident of this state to make and accept service in any proceeding in any of the courts of justice of this state, or any of the United States courts herein. If any attorney of any insurance company, appointed under the provisions of this act, shall remove from the state or become disqualified in any manner from accepting service, and if any citizen or resident of this state shall have any claim by virtue of any insurance policy issued by any company not represented by attorney in this state, valid service may be made on such company by service upon the controller; provided, that in such case the controller shall immediately notify such company and the principal agent for the Pacific coast, inclosing a copy of the service, by mail, postpaid; and, provided further, that in such case no proceedings shall be had within forty days after such service on the controller.

1274. Controller's duties and powers-Violations of law and penalties. SEC. 9. Upon the written representation of three citizens, and the belief of the controller, that any company organized outside of this state and doing an insurance business in this state has less than two hundred thousand doilars paid up, unimpaired cash capital, it shall be the duty of the controller to make such investigation or require such proof as shall be satisfactory to him concerning the financial condition of such company; provided, however, the certificate of the insurance officer of any state having an insurance department, that such company has a paid up, unimpaired cash capital equal to two hundred thousand dollars in United States gold coin, shall be accepted by the controller as satisfactory. If such company does not, within sixty days after demand of the controller, produce such certificate, the controller shall revoke his certificate of authority to such company to do business in this state, and in the meantime may withdraw or withhold his certificate of authority until such certificate is produced. If, after such withholding, refusal, withdrawal or revocation, such company, or any officer, agent or other person, shall write, deliver or agree to deliver any policy in such company, such person so violating the provisions of this act shall be deemed guilty of a misdemeanor, and on conviction thereof shall be subject to the penalties provided in section 5 of this act.

1275. Companies to have deposit.

SEC. 10. No company not incorporated in the United States shall be permitted to transact an insurance business in this state, unless the same shall have deposited or invested for the benefit of its policy-holders in the United States, in at least one state, a sum equal to two hundred thousand dollars, in gold coin, in excess of its liabilities in the United States.

1276. Life companies to appoint agents-Licenses.

SEC. 11. Nothing in this act shall be construed to prevent any life insurance company having outstanding policies in this state from appointing agents to collect premiums thereon; provided, such company shall appoint an attorney, as provided in section 8 of this act, and pay five dollars for filing the power of attorney with the controller, and the controller shall issue his certificate authorizing the collection of premiums on outstanding policies. only, and no requirement of capital herein shall apply to mutual life insurance companies possessing assets amounting to one million dollars or more. 1277. Controller to estimate in determining liabilities.

SEC. 12. The controller shall, in determining the liabilities of any fire insurance company organized under the laws of this state, estimate and determine all debts and liabilities of such company, and shall calculate the reinsurance reserve for fire risks by taking fifty per centum of the premiums received on all unexpired risks having less than one year to run, and a pro

rata premium on all risks having more than one year to run, and such estimates shall be charged as a liability against such company. The controller shall accept the valuations made by the insurance officer of any state under whose authority any life insurance company is permitted to transact business in that state.

1278. Regulation of licenses.

SEC. 13. This act shall take effect on the first day of June, one thousand eight hundred and eighty-one, and all licenses issued by the controller shall expire on the thirty-first day of December of each year, and shall be issued pro rata for any period less than one year, and all companies having unexpired quarterly licenses shall have the full benefit thereof. Within thirty days after the first day of June, one thousand eight hundred and eighty-one, and within thirty days after the first day of January, one thousand eight hundred and eighty-two, and annually thereafter, each company doing or proposing to do an insurance business in this state shall apply to the controller for a license, and if he shall be satisfied that such company is qualified to do business under the provisions of this act, he shall issue the same, on the receipt in gold coin of the amount required herein, and the admission of any insurance company to do business in this state shall not be denied by the controller when it makes and tenders a full compliance with the provisions of this act.

1279. Licenses and fees from insurance companies.

SEC. 14. The controller shall collect for filing each power of attorney and issuing his certificate, as required by this act, five dollars; for an annual license to each fire insurance company to transact business throughout this state, one hundred dollars; for an annual license to each life insurance company, cooperative insurance association or mutual benefit society, to transact business throughout this state, one hundred dollars; for an annual license to each life and accident insurance company, to transact business throughout this state, one hundred dollars; for an annual license to each casualty and surety company to transact business throughout this state, twenty dollars; provided, however, that nothing contained in this act shall be construed to apply to any charitable secret society, organized in this state, or working under or being subordinate to a supreme lodge of a secret society, organized under the laws of another state, or to prevent the same from issuing benefits to its members. For examining the financial condition of any company or association organized in this state, the just and legitimate expenses of such examination which shall be paid by the said company, and the controller shall revoke or refuse his certificate of authority to any company neglecting or refusing to pay such expenses. All fines and penalties recovered under the provisions of this act shall be paid into the state school fund, and all licenses, fees and other collections by the controller shall be paid into the general fund of the state; provided, the controller shall be allowed the just and legitimate expenses of the examination herein before mentioned. As amended, Stats. 1899, 107; 1901, 131.

1280. Liability of persons acting for companies in any capacity.

SEC. 15. Any person who solicits insurance, receives an application or order to write, renew or procure any policy, collects any premium, or who attempts as middleman to place any fire insurance in this state when such person holds no authority as agent from any insurance company or general agent of such company, shall be deemed an insurance broker, and shall pay to the county where such business is conducted or attempted, in advance, a quarterly license of fifteen dollars, and the license collector of the county shall collect the same. If such broker shall neglect or refuse to procure such license he shall be deemed guilty of a misdemeanor, and, upon convic

tion thereof, shall be fined not less than twenty-five dollars, nor more than fifty dollars for each offense, and in default of payment of the fine shall be imprisoned in the county jail not more than twenty-five days.

1281. Controller can require copies of charters and deeds.

SEC. 16. The controller may, at any time, require any insurance company doing business in this state to file in his office an authenticated copy of the certificate of incorporation, copy of the law, charter or deed of settlement under which its organization or formation was effected and its business is conducted; provided, however, that no company shall be required to file more than one such copy in this state.

1282. Application of term "Company," and other terms.

SEC. 17. The provisions of this act under either term or designation of company, corporation, association, firm or individual in either case, or where either term or designation is used, shall apply to any insurer, company, corporation, association, firm or individual engaged as insurers, or who may hereafter engage as insurers in this state, or who may engage in offering or affording indemnity against the casualties of fire or life.

1283. Fines and penalties.

SEC. 18. Any officer, agent or employee of any insurance company or other person violating any of the provisions of this act, shall, on conviction thereof, be fined not less than fifty dollars nor more than three hundred dollars, and in default of payment of such fine shall be imprisoned in the county jail not less than ten days nor more than three months, except as otherwise specially provided in this act, and the controller is authorized and directed to cause proceedings to be instituted in the name of the State of Nevada, in any court of competent jurisdiction, to enforce the provisions of this act.

1284. Unearned premiums to be returned in certain cases.

SEC. 19. In the event of the total destruction of any insured property on which the amount of the appraised or agreed loss shall be less than the total amount insured thereon, the insuring company or companies, shall return to the insured the unearned premium for the excess of insurance over the appraised, or agreed loss, to be paid at the same time and in the same manner as the loss shall be paid.

See Gerhauser v. North British Ins. Co., 7 Nev. 174.

Part payment and risk accepted binds company. Cooper v. Pacific Mutual Co., 7 Nev. 116.

An Act to provide for the incorporation of mutual fire insurance companies and to define their powers and duties.

1285. Formation of mutual fire insurance companies.

SECTION 1. Any number of persons, not less than ten, who shall be residents and householders in the State of Nevada, may associate themselves together and form an incorporated company for the purpose of mutual insurance of the property of its members against loss by fire; which property to be insured shall belong to the members of the company, and embrace dwelling houses, barns, accompanying out-buildings and their contents, creameries, farm implements, hay, grain, wool and other products, live stock, wagons, buggies, carriages, harness, household goods, wearing apparel, provisions, musical instruments, furniture, and libraries being upon farms as farm property or in dwellings, or in accompanying outbuildings. As amended, Stats.

1901, 110.

1286. Certificate to be filed.

SEC. 2. Such corporation shall be formed under the laws of Nevada, governing the formation of corporations and the certificate of incorporation together with its by-laws shall be filed with the state controller.

See note following sec. 1218.

1287. When to commence business.

SEC. 3. The persons so associating, after having perfected such incorporation and filed their certificate of incorporation and by-laws with the state controller as aforesaid, may open books to receive applications for membership and enter into agreements in the manner hereinafter specified; but no company organized by this act shall do any business or take any risks or make any insurance in any state other than the State of Nevada, and no insurance company organized as aforesaid shall commence business until bona fide agreements shall have been entered into for insurance with at least twenty-five individuals, covering property to be insured to the amount of not less than fifty thousand ($50,000) dollars. As amended, Stats. 1901, 110. 1288. To hold real estate in certain cases-Sale of.

SEC. 4. No company formed under this act shall purchase or hold real estate except

First-Such as shall be necessary for its immediate accommodation in transacting business; or

Second-Such as shall have been conveyed or mortgaged to the company in good faith by way of security for debts; or

Third-Such as shall have been conveyed to the company in satisfaction of debts; or

Fourth-Such as shall have been purchased at sale upon judgments, decrees or mortgages in favor of such company or held or owned by it; and all real estate obtained by virtue of any provision of this section, except that mentioned in the first subdivision, shall be sold or disposed of within five years after the title has been perfected in such company unless the company shall procure a certificate from the state controller that the interest of said company will materially suffer by forced sale, in which event the sale may be postponed for such period as the said controller shall direct in said certificate-not to exceed ten years in all.

1289. Articles of incorporation and by-laws.

SEC. 5. In addition to the foregoing provisions it shall be the duty of the corporators or any company organized under the provisions of this act to declare, in its articles of incorporation and by-laws, the mode and manner in which the incorporate power given under and by virtue of this act are to be exercised; the qualification of membership; the mode and manner of electing trustees, who shall all be residents of the State of Nevada; the filling of

vacancies; the county or counties in which the business of the company is to be conducted and confined (if less than the entire state), and may prescribe therein the liabilities of the members to be assessed toward defraying the losses and expenses of the company and the mode and manner of collecting such assessments. As amended, Stats. 1901, 110.

1290. Investigation and certification.

SEC. 6. The articles of incorporation and by-laws required to be filed by the corporation shall be examined by the attorney-general, and if found to be in accordance with the requirements of this act, he shall certify the same to the state controller, and the state controller may appoint three disinterested persons, all of whom shall be residents of the State of Nevada, who shall certify under oath that the corporation has received and is in actual possession of the premiums or engagements of insurance (as the case may be) to the full extent required in this act; provided, however, the state controller may make such examination personally or by his deputy. When satisfied that all the provisions of this act have been fully complied with, it shall be the duty of the state controller to certify such facts to the officers of the corporation, which certificate, upon being filed by them in the county clerk's office, in the county in which the principal place of business of such company is located, shall be authority to receive additional members, issue policies and transact any and all business provided by in its articles of incorporation and by-laws. As amended, Stats. 1901, 111.

1291. May make by-laws.

SEC. 7. The directors of any company organized under this act shall have power to make such by-laws, not inconsistent with the constitution and laws of this state, as may be deemed necessary for the government of its officers and members and the conduct of its affairs.

1292. To make a statement annually to controller-What to show.

SEC. 8. It shall be the duty of the president and secretary of each company organized under this act, annually on the first day of January, or within one month thereafter, to prepare under oath and deposit with the state controller a statement of the condition of such company on the 31st day of December then next preceding, exhibiting the following facts, to wit:

First-The number of members on the last day of December of the previous year, the number of members added during the year, the number of members who have withdrawn or whose policies have been canceled during the year, and the number of members belonging to the company.

Second-The amount of property at risk December 31st of previous year, the amounts of risks added during the year, the number of risks canceled, withdrawn or terminated during the year, and the net amount at risk by the company.

Third-The amount of premium or deposit notes in force, the amount of cash premiums (or assessments) actually on hand, the amount of outstanding assessments not canceled, the nature and amount of all other resources, and the total amount of resources.

Fourth-The claims for losses due and payable, the claims for losses not matured, the claims for losses resisted, the nature and amount of all other claims, due or accrued, and the total amount of liabilities.

Fifth-The amount of premiums or deposit notes taken during the year, the amount of cash premiums received during the year, the amount collected on assessments which were levied during the year, the amount collected during the year on assessments which were levied in previous years, the amount received from membership or policy fees or from other sources constituting an expense to the insured, the amount received from percentage on