Insurance laws of the State of Georgia, 1887-1888

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_GENERAL LIBRARY

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UNIVERSITY OF GEORGtA

L _MOORE P ~ R CHASE, 1936

IN FORCE r887...:S.

. ~

W. A. WRIGHT, Comptroller-General, Insurance Commissioner.

Jae. P. Harrison & Co., Printers, Atlanta, Ga.

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INSURANCE LAWS
OF THE
STATE OF GEOR.GIA,
IN FORCE r887-8. W. A. WRIGHT, Comptroller-General,
Insurance Commissioner.. Ja!, P. Harrison & Co., Printers, Atlanta, Ga.

INSURANCE LAWS.

AN ACT

To regulate the business of I nsurance in tlzs S tale, and for other purposes.

SECTION 1. Be it enacted by the G eneral Assembly CleormGpetnreorla-l

of the State of Georgia, That from and after th e passageshallbeln

.

.

suran ce

Of this Act, the Comptroller-Gene ral o f thts State shall be sq1oomnemr.is-

the Insurance Commissioner of this State, and shall be

charged with the execution of <lll t he laws of this State

regulating the business of insurance in the State o'f Geor-

gia.

SEC. 2. Be it further enacted, That it shall not be law- Home and

ful for any m. surance company chartered by tIu.s State, or sfourreaingcne.in-

other

States,

or

fore1 gn

government,

to

transact

an. y

bu

s-

cmoumsptab.ne1

es li-

iness

of

insurance

m .

t l11.s

S tate

.
Wit

h

o

u

t

fi rst

procun.ng

a Icnenssuerd"!nbcye

license from the I nsurance Comrnt.ss.wner of t h.ts S tate, sCioomnemr.is-

and before said commiss ioner shall issue such license,

such insurance company must full~ comply with iJ,ll of the

provisions of this Act, and fi le with said Insurance Com

missioner a statement under oath of its President and

Secretary, specifying: First. The name and locality of Annual rethe company. Second. The cond1. t1. 0n o f such com,pany dpiotirotonfcoofnon t he t h1. rty-fi rst day of D ccem b~r t11en next precea,.mg, company. exhibiting the following facts and itGms in the foll owing

form, namely: First. The amount of the capital stock

of the company and what part of the same has been paid Up in cash, and what part is in notes of the ,stockholders, and how such notes are secured. Second. The property

C)r assets held by the company, specifying:

1.
be1d

The val~e, or as nearas may be' of the real estate Contents
by such company; if encumbered' to wh'a.t am. oun, t orefpaonrnt.ual

4

INSURANCE LAWS.

2. The amount of cash on hand and deposited in banks to the credit of the company.
3 The amount of cash in the hands of agents and in the course of transmission.
4 The amount of loans secured by bonds and mort. gages on real estate.
5 The amount of other loans and how secured. 6. The amount of stocks of this State, of other States in the United States, and of any other stocks owned by the company, specifying the amount, number of shares and par and market value of each kind of stock. 7 The amount of interest actually due and unpaid. 8. The amount of premium notes on hand upon which policies have been issued. 9 The amount of any and all other assets, both real and personal, not covered by or included hereinbefore. Third. .The liabilities of the company, specifying: I. The amount of losses due and yet unpaid. 2. The amount of claims for losses resisted by the company.
3 The amount of losses not yet due, including those reported to the company, on which no action has yet been taken.
4 The amount of dividends declared and due and re maining unpaid.
5 The amount of dividends declared but not yet due. 6, The amount of money borrowed. 7 The amount of all other claims against the company. 8. The amount of reserve_{or re-insurance. Fourth. The income of the company during the preceding year, specifying : 1. The amount of the cash premiums received. 2. The amount of notes received for premiums. 3 The amount of interest money received. 4 The amount of income received from other sources. Fifth. The expenditure during the preceding year, specifying:

INSURANCE LAWS.

5

1. The amount of losses paid during the year. 2. The amount of dividends paid during the year. 3. The amount of expenses paid during the year, including fees and commissions to agents and officers of the
company. 4 The amount paid in taxes.

5 The amount of all other payments and expendi-

tures.

6. The greatest amount insured in any one risk and

the total amount of insurance outstanding.

7 A certified copy of the Act incorporating the com-

pany. !::-EC. 3

Be it further enacted,

That

no

insurance

'
Amomrt

of

company of whatever c1ass, except sue11 compames as sctaopciktarle-

have already teen chartered by this State, Masonic, Odd ~~~~da~~

Fe11ows, re1t.g1. 0us an d mu t ual at'd soct.ett.es an d co-opera- ffio_rree,ig'!nla-

tive or assessment life insurance companies, shall be al- f~~'t l'iie,

lowed

to transact any busm. ess o f

m. surance

m .

t h is

S tate,

accident, live stock

unless

.
possessed

of

at

least

one

hundred

thousand

dollarso ~a~n~d~~sJte:am

of actual cash capital paid up, or assets and invested in d'~ao~es,

bonds or stocks; estimated at their actual market valu~ at vested.

the date of the statement required by section second of

this Act, or in mortgages on real estate worth double the

amount for which the same is mortgaged. Upon filing

such statement, the Insurance Commissioner, when satis-

fied that it is correct, and that the 'company has fully

complied with the laws regulating the business of insur-

ance in this State, shall issue licenses to said company to

transact business this State. Said statement and licenses

must be renewed annually on the fir,;t day of January,

or within sixty days thereafter, and must show the condi-

tion of said company on the thirty-first day of the pre-

ceding December.

In addition to this statement above required, all com- ~~~e i~~~= panies, including co-operative or assessment life insurance- ~~r::~ {0ecompanies, doing business in this State, shall through their ~~kuea1emi chief officer, or agent residing in this State, make to the ~~att'.:"a~;~

Governor of this State semi annual statements on the first ernor.

6

day of January and J ul:y of each year, or within sixty days

thereafter, which statement shall contain a full and exact

report of their condition on the thirtieth day of June and

t hi rty-first day of D ece mber then next preceding said

statement to be made in accordance with the terms and

conditions set forth and requ'ired under the second sec-

tion of this Act, which shall be sworn to by the officer or Mpuubslitsbheed. agen t rnak'mg th e sa'me. Th at at t-h-e t'tme' of mak"tng such

report to the Governor, each company shall publish at its

own expense a dupiicate there-of in a: newspaper of gen-

P~n,altyfor
fathng to

eral

circulation

pu-bli sh e d

in

this

State.

Th'a_.t should any

amnankueas1emi one of su ch insurance companies fail or refus.e to make

statement said statement to the Governor, it shall, by ,such failure

or refusal, fo'rfeit its right to do business in this State

until the first of January of the next year, and on such

failure or refusal, the Insurance Commissioner shall re-

call and cancel the license of such delinquent company. ~~~~it r~: SEc. 4 Be it further enacted, That all fire, marine and
or fqourier1.egdn inland insurance corhp'anie, s chartered by . other States or
~[;;~ ~n".i foreign governments shall be required to depo~it with the
;~~~~~e in- Tteasurer of this State bonds of the United States, ot

companies. bonds of this State , which, according to the acts and resQ

lutions of the General Assembly, are valid, and whicll

amount, according to their face value, to twenty-fi,.;e

thousand dollars, which bonds shall be receipted for bjr
the State Treasurer, and especially deposited by him iii

the vaults of the Treasury, and whenever such company

ceases to do business in this State and has settled tip all

claims against it as hereinafter provided, said bonds shall
be delivered up to the proper party ori presentation ol

the Treasurer's receipt. While said bonds are so deposit

ed, the owner of the same shall, subject to the notices

hereinafter provided for or given, be entitled to collect the

coupons and use them. For the bonds so deposited the

faith of the State is pledged that they shall be returned to

the patties en tit led tci receive them, or disposed of as here

inafter provided.



.

to That whenever any loss insured against occurs, the in-
sured in order to secure his recover}' may give notice

INSURANCE LAWS.

. 7

e State Treasurer of th-e pendency of said loss and of the~~:~:. Ip~~

tasbhrnaollubnet

bcolauinmdedto

raefttaeirn,wshuibcj.heCttitmoethteheorSdteartoef

Treasurer the court

~Y~:dn~l\~~
T , to reas r.

any suit that may be brought for the recove ry of

trycthngloss

a sufficient

amount

to

pay

t

h

e

.
JU

d gmen.t

.
111

sa1'd

su in the event of recovery when such suit is ended, and

::C:unount is ascertained for which said party sued may be liable, is not paid in ten days, then said plaintiff may file an application with the Judge of the Superior Court of the county where the case was tried for a receiver to take charge of so many bonds as shall be necessary to satisfiy

the aforesaid judgment. When said receiver is appointed by the Judge, who WJ!en re-
shall always requt.re bond an d secun'tyof h1' m .orth e fa1.th-bceeat,vpepromina!yful performance of hI.S d uty, sa1'd State T reasurer, on h1' s eddu,tiaens.d !its application, shall deliver to him bonds sufficient in their market value, if in his custody; to satisfy said judgment. Said receiver's receipt shall be a complete discharge to said Treasurer and the State of Georgia. Then said receiver shall apply to the Judge of said Superior Court for an order of sale, and in pursuance of said order sell said bonds. After deducting such expenses and commissions as shall be allowed by said Judge, he shall pay oyer to the plaintiff, or his attorney, a sufficient amount to s.atisfy the said judgment, and if there remains a~y residue in the hands of such receiver, he shall pay over the same to the agent of the company, taking his receipt for the same, which shall be filed and recorded with th,e other papers in

the case. If there are conflicting claims, then the State Treasurer When-there
shall deliver over to the receivers, in the ordet of their f~:cgt~f~c:~ applications, the aforesaid bonds, and if there is any contest between .creditors which cannot be settled in this mode, then the party not receiving sufficient bonds through

the receiver appointed in his behalf may become a party to the other case and make known his claim to the other receiver by making affidavit of the claim and filing the sa~e with him, and then the receiver shall report such, claim to the Judge of the Superior Court appointing him,

8

INSURANCE LAWS.

who shall by order provide for a bill of inter pleader as

cases m. equtty.

10

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When a When any company desires to withdraw from the Stat
company
wishes to and will satisfy the commissioner that all suits pendin e
withdraw

from the against such party, and of which no notice bas been give g

State.

have been fully satisfied, or whenever no n::.

tice of claim has been given, and when rights

under existing policies have been satisfied and

released, as the provisions of this Act require, then

said Treasurer shall return to said party the bonds so

deposited upon order from said commissioner.

~~'Jsede- Whenever, by means of the provisions of this Act, the

rpeodsnieteedd,are amount of bonds so deposited are reduced, said Treasurer
'fh"!f1su~~fi- shall at once notify the Insurance Commissioner in
' ~~:~~~. writing, who shall give notice to the company depositing,

and require more bonds to be deposited, so as always to

maintain the original amount, and if the company so

notified by the Insurance Commissioner fails to comply

within thirty days, the. license to do business in this State

shall be revoked and said Insurance Commissioner

at the same time, give notice by publication in a

paper published at the capital of the fact of such failure

and revocation of license, the cost of which

shall be paid by the company failing to comply with

provisions of this Act; and when any company

made the deposit required by this Act has existing

icies on property of citizens of this State on which

losses have accrued, and which company wishes to

draw its deposits, before being allowed so to do said

pany shall take up and satisfy said policies and

notice of its intention to withdraw from the State, and

the fact that it has satisfied all losses and the claims

policy-holders above designated, which notice shall

published once a week for two months in a new~..,..,..,....,

to be designated by the Insurance Commissioner of

State, and at the expense of said company; and it

hereby provided that any claims of the citizens of

State must-whether for losses or on existing
I

INSURANCE LAWS.

9

where no losses have o. ccurred-be fully settled before 'd deposits shall be w1thdrawn.

satSEC. S Be it further enaeted, That all life and ac- Life. oom-

dd

ent insurance United Stat

companie~ es, or fore

chartered by tgn governme

other Stat nt s, sh a11

es s h

of ow

~h~{rru~n-
1csaht e ocef,rItnifsi.-

the a certificate from t he offi cer h av.mg supervt.sl.on of

cbI nb:Ysauftrearnecde

Department m. t he S tate m. wh.tch t hey or elect to make t heu depostt, t hat t hey h

t h e are ave

CommiSsioner
wchhaerrteered bt haav.tetdhee-y

deposited not less than one hundred thousand dollars, in $1000',~.

such securities as may be deemed by such officers as

equivalent to cash, subject to his order, as a guarantee

fund for the security of policy-holders of said companies.

All such companies chartered by the State of Georgia

.

shall ,

before

doing

busm. ess

.
tn

t hI'S

S tate,

d epos1. t

w1. t h

t h e

scHhoomamllpeadnehi-efse

Insurance Commissioner of this State, or with some strong $1&J:OOo.

corporation which may be approved by him, one hundred

thousand dollars, in such securities as may be deemed by

him equivalent to cash, to be subj ect to his order as a

guarantee fund for the security of the policy-holders of

the company making such deposit; all interest and divi-

dends arising from such securities to be paid when due,

to the company so depositing them. Any such securities

as may be needed by the company may be taken from

said Insurance Commissioner or corporation at any time

by replacing them with other securities equally acceptable

to the Insurance Commissioner, whose certificate for the

same shall be furnished to the company.

SEC. 6. Be it further enac.te.d,, That it shall be the CInosmumrai:ns-ce

dUty o.f

t h e

I n.surance

Comm1sstoner,

whenever

he

shall

~io n er.may mvestlgate

deem I,t exped1ent so to do, and he is hereby empowered' othfeanayff8m:ir-s

either m per.son or by an expert examiner by him ap- scuomrapnacney.

pointed, to mvestigate the affairs of anv insurance com-

pany doing business in this State; to req~ire free access to

an books and papers of any company, or the agents

there.of; to summ~n and examine under oath, any person

in th1s State relattve to the affairs and condition of said

Company; for probable cause to visit at its principal

of&ce, wherever it may be, any Insurance Company not of the State in which the substantia~ requirements of this

10

INSURANCE LAWS.

Att, as to valuations of policies of life and accident in-
surance companies, and cakulations for the re-insurance reserve of fire, m.arine and inland insurance companies
are not i? force and doing business in this State, for t~
purpose of investigating its affairs and condition, and revoke its authority to do business in this State, U said company refuses to permit the examination. All e&. pense incurred in the investigatiop. of said eompani~ shall be paid by the companies so examined.

Insura_nce SEC. 7 Be it further enacted, That for every fire insu-

sCioomnemrslsh-all ranee compan;y domg b ustness m thI'S State, the Insurance

rcea-licnuslnart-e Commt.sst,oner shall calcu late, or ca. use to be calculated

saenrcveer~eo-r t he re-.msurance reserve fo. r u nexptred fi re nsks, by taking'

unexpired
fire risks. fifty per centum of the


premtum


received

on

all

"f
policies

that are written for a period of one year or less, and accord

ing to the New York per centage table for calculatint

re-insurance on all premiums received that have more than

one year to run, and in marine and inland insurance he

shall charge all the premiums receivec! on unexpired risltp

as a re-insurance reserve. Having charged against the

company the re-insurance reserve as above determined fot

fire, marine and inland insurance, and adding thereto

other debts and claims against the company. he shall,

case he finds the capital stock of the company

more thantweni:y per cent., give notice to said company

make good its whole capital stock within ninety days;

if this is not done, he shall require the company to cease

do new business within this State, and shall thereupon,

case the company is organized under authority of

State, immediately institute legal proceedings as neJreul....t

after required by the provisions of this Act.

Insurance Any such insurance compa,ny, receiving the ~g~f~~\!" notiCe of the Insurance Commissioner to make good ~~ffe~~~k- whole capital stock within ninety days, shall forthwith

when. upon its stockholders for such amounts as will make

capital equal to the amount fixed by the charter of

company.

In the case of companies chartered by other States oreign governments, the Insurance Commissioner of

INSURANCE LAWS.

II

\

hall accept calculations of the re-insurance reserve When Ins.

State s
st hnaed eabrey

the Insurance Commt.ssw nt:r of .t he chartered, when such cakulatrons

S tate m. wh 'tcl1 are made and

Com. shall aocep.t cal-
c~u:l3at~webn';sc

fhurnYft.sirhset doftoMtahrechIninsueraacnhceaCndomevmeirsysiyoenaerr. of this State by CQothmerrsI.ns.

ntt 0}wb' etehhl'eatentveeav'nefyrrotimhnesauInrnasenuxcraeamnccionemaCtpw_oamnnymt,niotsfos

itol1nee this

r sffha.ll a atrs State.

ho af is

ve reason a compainsolvent

When, Ins. Com. I S insolvent or frauduldently con-
ucted.

r fraudulently conducted, orthat its assets are not suffi-

~ent for c~rrying on business or during ailY non-compli-

ance with the provisions of this Act, he shall communi-

cate the fact to the Attorney-General, whose duty it shall

then become to apply to a Judge of the Superior Court of

this State for an order requiring said company to show

cause why their business should ridt be close'd, and the

judge shall thereupon hear the allegations and proofs of

the respective parties. If it appears to the satisfaction of

said judge that such company is insolvent, or that the in-
terests of the public so req'u~re, the said judge shall decree
a dissolution of such cbrporation and a: distrbufion of its

assets; but in case it shall appear to said judge that said

company is able and has complied with the provisions of

thi<~ Act, and that it is not insolvent, a decree shall be

entered annulling the action the Insurance Commis-

sioner in the premises, and authorizing the company to

resume business.

SEC. 8. Be it further enacted, That the Instirance Com- Ins Com'r Sil'lSS'lOner sh a11, as soon as practt.cable, in each alternate svchuaallaullteecoanfle-t year calculate or cause to he calculated, the. net value, on wpohleicni.cs-
the 31st day of D ecember of the previous year, of all the

policies in force on that day in each life insurance com-

pany doing business in this State, chartered by this State,

and of every other life insurance company doing business

in this State, that shall fail to furnish him, as hereinafter

P.rovided, a certificate of the Insurance Commissioner of

the State, hy whose authodty the company was organized,

br by the State in which it may elect to have its policies val?~d ~nd its deposit made, giving the net value of all

policies In force in the company on the 31St day of Decem-

12

INSURANCE LAWS.

her of the preceding year, which calculation of the net value of each policy shall be based upon the American experience or actuaries' table of mortality, and four per cent. interest per annum; provided, that where any life company shall have a cash capital of not less than one hundred thousand dollars, fully paid up and safely in. vested, the re~erve to provide for the liabilities on all pol. icies of such company, not participating in the profits of the company, shall be computed by the American or actuaries' table of mortality, with interest at not less than three nor more than six per cent. per annum, in the discretion of the commissioner, and with reference to the rates of pn::miums charged by such company. The net value of a policy at any time shall be taken to be the single net premium which will at that time effect the insurance, less the value at that time of the future net pn!miumscalled for hy the table of mortality and rate of interest desig. nated. Where a In case it is found that any life company doing business g~~~a~~!~ in this State has not on hand the net value of all its poligdaalrdsaoffeltey-. c1. es 1.11 force a fter otl1er d eb ts o f t he company an d c1a1ms against it; exclusive of capital stock, have been provided for, it shall be the duty of the Insurance Commissioner to publish the fact that the then existing condition of the affair_s of the company is below the standard of legal safe. ty established by this State, and he shall require the com. pany at once to cease doing new business; and it is hereby made the duty of the Insurance Commissioner, after having determiued as above the amount of the net value of all policies in force, to see that the company has that amount in safe legal securities after all debts and claims against it, exclusive of capital stock, have been provided
for. When val- He shall accept the valuations made by the Insurance ~a;~~nby Commissioner of the State under whose authority a ~f:,:~rs of insurance company is chartered, when such ~~~lr~e have been made on the basis mentioned above; nr~victe.rt. accepted. the company shall furnish to the Insurance C
of this State, on or before the first day of March in

INSURANCE LAWS.

d every alternate year, a certificate from the Insurance

~cn~~t~disosinontheer

of such State, setting forth dates designated above, of

the value, cal. all the policies

in force in the company on the previous 31st of Decem-

ber, and stating tha~ aft:r all the o~her debts of t?e com-

pan, y and claims agamst tt the company had in safe

astecthuan.ttt.tetsmaenwaemreopurnotvtedqeuda1fotro,

the net value of all its policies in force, and that said

company is entitled to do business in its own State; and every company doing busin~ss in the Stat~ during :he

year for which the statement 1s made, that fails to furmsh

promptly the certificate aforesaid, shall be required to

make full detailed lists of policies and securities held or

owned by the company to the Insurance Commissioner

of this State, and shall be liable for all charges and ex-

penses consequent upon not having furnished said certifi-

cat e. It shall be the duty of the commissioner, after he has When Ins
notified a life insurance company chartered by this State ~~t!f{~ak~
to cease doing new business until the net value of its poli- i~\~:i'i~n cies in force is equal to that called for by the standard of~~~c~~~rs
safety established by the State, at once to cause a rigid pany.

examination into the affairs of such company. In case it

shall appear that there is no fraud, or gross incompetency

or wrecklessness shown to exist in the management, he

may, upon publishing the facts in the case, permit such

company to continue its business for one year; provided

there is in his opinion reason to believe that the compa-

ny may be able to re-establish the legal net value of all its

"

policies in force. At the end of the year named above,

he may renew the permission, in case, on examination, he

is satisfied that the company is likely to retrieve its affairs.

Whenever the Insurance Commissioner shall have reason

to believe that any insurance company of this State is in-

solvent or fraudulently conducted, or that its assets are not su~cient for conducting the business of the company

or dunng any non-compliance with the provisions of this

INSURANCE LAWS.

Act, his duty shall be as prescribed in section 7 of this

Act.

Defining SEC. 9 Be it further enacted, That any person who so-

who are insurance

licits in behalfof any in.suranc:e

company, or agent of the

agents. same, incorporated by the laws of this or any other State

or foreign government, or who takes or transmits, othe;

than for himsdf, any application for insurance, or any

policy of insur~nce to~or from such company, or agent of

the same, or who advertise~ or ot:herwise gives..notice that he will receive or tra~smit the sa(\'le, or who shall receiv~

or deliver a policy of insurance of any such company, or

who shall examine, inspect _any risk at any time, or re-

ceive or collect, or transmit any premiut.ns of insurance,

or make or forward any diagram of any bu_ilding or build.

ings, or do or perform any other act or thing in the mak-

ing or consummating of any contract of insurance for 01 with any such insurance company other than for himself,

or who shall examine into or adjust or aid in adjusting

any loss for or in behalf of any such .company, whether

any of such acts shall be done at the instance or request,

or by the employment of such insurance company, or o,f or by any broker or other person, shall be held to be th~

agent of the company for which the act is done or the

.risk is ta,ken.

Agents- Any person who ~hall do or ,per{or!ll any of the acts .Of
of ~~ti;~Y for things me~tioned for any insurance ~ompany or agent
:~lt~~Ay. said company.without such company having first receive~ a certificate .of authority from the Insurance Comm~
sioner of this St~te, as requiJ,"ed by l;1w, shall be guilty of.
a misdemeanor, and on conviction in any .court of co~

petent jurisqiction, shall b.e punished as provided by sec

tion 43 10 of the Code of Georgia, and sh<J.ll also pay

i I
I

sum equal to the State, cou~ty and municipal taxes licenses required to be paid by insurance C?mpanies

lly doing bu.siness in this State; and it is hereby

the duty of ,the Insurance Commissioner to .see that violators of the prov~sions of .this section are oros~:cul~"~1:

Any person who shall do any of the acts mcuo.aUlll""''l'l. in this se~tion shall also be personally liable to the

lNsURANeE LAws.

15

of any policy of insurance in respect of which such

act

W as

done
'

for

any

loss


covered
,

by

the same;





provided, ~hen ad-
JUSters are

that the penalties provtded for. tn t?1s sect10n shall n.ot not liable.

ly to adjusters of unauthonzed msurance compantes
fap~ whom citizens of this State have purchased insur-
roce for themselves, as prov1'ded for m t h.1s sectw n, wheQ.

aner the person or per.<;ons purchasing said insurance shall emv mediately notify the I nsur~nce Commt.sst.oner, .gt.v.mg
~he names and locality of each company .in which they

have policies, and at the same time pay to said Insurance

Commissioner the same license fees and taxes for e<\ch

company as are now or may hereafter be required of fire

insurance compan ies authorized to .do business by the

laws of this State. And when the license fees for any

company have been paid in any one year by any person

or persons who have purchased insu.ra,nce from said com-

pany, then and in that case any person or persons .pur-

chasing insurance from said company, thereafter shall

not be liable for the license fees of said company during

the said year, but only for such taxes on premiums as

may be required from time to time of insurance com-

panies authorized to do business in this State.

SEc. 10. Be it further .enacted, That any insurance Shall file

company not m. corporated or organt.zed un der the laws of Cwoitmh 'Irnas.

thIS

State,

destnng

to

transact

busm. ess

.
tn

this

Sta te, aptotworenreoyf.

shall file with the Insurance Commissioner of this State

a written instrument or power of:attorney, duly signed and

sealed, appointing and authorizing some person, who

shall be a resident of this State, to acknowledge or re-

ceive service of process, and upon whom process may be

served for and in behalf of such company in all proceed-

ings that may be instituted against such company in any

court of this State, or any court of the United

States in this State, and consenting .that service of pro-

cas upon any agent or attorney appointed under the pro-
vilaions of this section shall b.:: taken and h~ld to be as

valid as if served upon the company; and such instrument

aball further provide that the authority of such attorney

lhall continue until .revocation of his appointment is

16

INSURANCE LAWS.

made by such company by filing a similar instrument with

said Insurance Commissioner, whereby another person

shall be appointed as such attorney; provided, however

that the provisions of this section shall not be construed

to alter or amend the laws now of force in this State rela.

tive to bringing suits and serving process on foreign cor-

porations doing business in this State.

When Ins. If an attorney so appointed shall absent himself from

Capopmo'irnmt aaynth1' s State, or h"1s usua1 p1ac,e of b usm. ess or abode or shall

attorney.



'

secrete h1mself, so that process may not be served upon

him, or shall have become disqualified from any cause

whatever, or shall die, the Insurance Commissioner shall

immediately appoint an attorney for service for such com-

pany, of which appointment notice in writing shall be

immediately given by said Insurance Commissioner to such

appointee, <J.nd also be sent to the company by mail or to

its general agent or manager, which appojntment shall be

as valid as if made by the company, and shall continue in

force until such absent agent or attorney shall return and

give to said Insurance Commissioner written notice there

of, or until the company shall have made another appoint-

ment in the manner above prescribed. Service of process

as aforesaid issued by any such court as aforesaid, upon

any such attorney appointed by the company, or by the

insurance commissioner, shall be valid and binding,

be deemed personal service upon such company so

as it shall have any obligations or liabilities

in this State, although such company may have

drawn, been excluded from, or ceased to clo business

this State. If any company shall fail, neglect or refuse

appoint and maintain within this State such attorney

agent, it shall forfeit the right to do or continue

in this State.

SEc. 11. Be it further enacted, That no person

act as an agent in this State of any insurance company

this or any other State or foreign government, doing

business in any manner, until said company has fully

plied with the provisions of this Act, and received

the Insurance Commissioner certificates of authority

INSURANCE LAWS.

I7

. If an d its agents to transact business in this State. The

tfetsees of

the Insurance Commissio'ner shall

be

as

follo.ws:

Feescof , Ins. om r

For filing certified copy of charter, $zo.oo ; for examma-

tJ.On of an nual statement, $zo .oo, and for certificates of uthority or license to agents $3.00 each, onefifth of

a hich shall be paid to the commission er in full compen-

:tion for services in executing the provisions of this act.

In addition to the payment of the above fees, each of the

said companies shall make a report to the commissioner

on the first day of May of each year, or within sixty days

thereafter, under oath of the president or secretary there-

of showing the entire amount of premium receipts of eve~ character and description (deductin g returned pre-

miums on cancelled policies) of said companies in this

State during the year or fractional part of the year end-

ing the 30th day of Ap ril nex t preceding, whether said

premiums wer~ received in money or in notes, credits or

any substitute for money, to be taxed as may be provided

by law from time to time.

SEC. 12. Be it further enacted, That whenever the ex- Where
isting laws of any other State of the United States shall ~t~~!s rerequt.re of m. surance compam.es chart ered by tht"s S tat e, eqruidreeploasrigt-s and having age ncies in such other State or of the agents ~!re~his

thereof, any deposit of securities in such Stat e fo r the

protection of policy holders or otherwise, or any pay-

ment or penalties, certificates of a uthority, license fees .or

otherwise, greater than the amounts required for such

purposes from similar companies of other States by the

then existing laws of this State, then , and in every such

case, all companies of such States establishing or having

heretofore established an agen cy, or agencies, in this

State, shall be and are hereby required to make the same

deposit, for a like purpose, with the Insurance Commis-

sioner of this State, and to pay to said commissioner for

penalties, certificates of authority, license fees, or other-

wise, an amount equal to the amount of su ch charges im-

posed by the laws of such State upon companies of this

State and the agents thereof.

2

18

INSURANCE LAWS.

Asse ss ment or

SEc. I 3 Be it further enacted, That it shall not be law-

co-operative com-

ful for any corporation or association organized under the

panies. laws of this or other S tates of the United States for the

purpo:se of furni shing l~fe indemnity or insurance upon

the assessment plan by tts agents, to do any business in

this State until such corporat ion or association shall

deposit with the Insurance Commissioner of this State
a certified copy of its charter or articles of incorporation'
. a copy of its statement of business for the year endin~

the 31st day of the next preceding December, sworn to

by the president or secretary or like officers thereof - sett ing forth the number and amount of certificates olI

membership or policies in force and a detailed account of

its expenditures, income, assets and liabilities, and also

a certificate sworn to by the president and secretary or

like officers thereof, setting forth that it has paid and has

the ability to pay its certificates or policies to the full

limit named therein; that its certificates or policies are

payable only to beneficiaries having a legal insurable

interest in the life of the member or insured ; that an

ordinary assessment upon its members is sufficient to pay

its maximum certificate of membership or policy, there-

tofore or thereafter to be issued, to the full amount or

limit named therein; a certificate from the Insuran~

Commissioner or other like officer charged with the duty

of executing or enforcing the execution of the

Jaws of its home State, certifying that it is legally t:u~uiiCiol.:

to do business in said home state ; a copy

application for membership or insurance, and of

form thereof, if more than one form used; a copy of

constitution and by-laws and of each and every i:iu<uu.:Luq

thereof, which must show that all indemnities to

ciaries are in the main provided for by assessments

all surviving members. And whtnever said ~~""..'""'

shall fail to pay a valid claim to the full limit named

any policy issued by them to any resident of this the Insurance Commissioner shall revoke their au

to do business in this State.

SEC. 14. Be it further enacted, That after auth

INSURANCE LAWS.

19

such corporat.ion o. r a.ssociation to do busin~ss i.n .this AhogwenItt.-sState, as provtded Ill thts Act, the Insurance Commtsston censed.

r shall issue licenses to agent-s thereof, to be designated

bte~ertehoef,

corporation or authorizing

assoct.atw. n, or them to act

a as

genera1 agent such agents

during the year for which said company is licensed; but

such licenses must be renewed annually. SEC. 15 Be it furth er enacted, That any agent, physi- Securing .
dan, or oth er person w ho shall k nowmg1y secure, or cause pp~orfsicoiness on to be secured, a certt"ficate o f memb ersh"tp on any person wthtethirout without hts k now1edge or consent, or by any means o f lmo v. ledge misrepresentation, fals e, fraudulent or un t rue statements,

be instrumental in securing a certificate of membership on any aged or infirm person, or in restoring to member-

ship any person not in an insurable condition , shall be

deemed guilty of a misdemeanor, and upon conviction

thereof shall be fined in a sum not less than one hundred

dollars, nor more than one thousand dollars, or be impris-

oned in a county jail not less than thirty days, nor more

than one year, or bot h, in the discretion of the court, and said certificate or renewal so secured shall be absolutely

void.
SEC. 16. Be it further enacted, That every corporation Annual or associatiOn wh"te'n may b e d 01 ng b usm ess 111 t h"IS State -stahtoewmveenrit-s
under the provisions of _this Act, shall, on or before the first fied, etc.

day of March in each year after it commences to do busi

ness in the State, make and file with the Insurance Com .

missioner of the State a report of its affairs and opera-

tions during the year ending the 31st day of December next preceding. Such annual reports shall be made upon

blank forms to be provided and furnished by the Insurance Commissioner, and shall be verified under the oath of the

president or secretary, or other like officers, and shall be published, or the substance thereof, in the annual report of

said Insurance Commissioner.

SEC. 17. Be it further e nacted, That there shall be paid Fees and to the I nsurance Commt.ss.wner by each corporati.On or taxes. association when it is authorized to do business in this

State under the provisions of this Act, the same fees as

20

INSURANCE LAWS.

required by section eleven of this Act, together with all

such subsequent fees as are prescribed under said section

eleven. In addition to the foregoing fees, every such cor-

poration or association shall, on or before the first qay of

July of each year, report un der oath of its president and

secretary or other like officers, to the Insurance Commis-

sioner the gross amou nt received on business done in this

State during the year end ing th_e 30th o f April next preced-

ing, and shall at the same time pay into the treasury of this

State a tax of one dollar upon each one hundred dollars of

such gross amounts so received by said associatio_n or cor-

poration. Provided, h owever, that if such corporation or

association should at any time be the owner of any real or

personal property si-t uated in this State, such property

shall not be exempt from taxation . by reason of the pro-

visions ofthis section.

Failure to SEC. 18. Be it further enacted , That if such corporation ~;~o~t~~al or association shall at any time fail or refuse to make the ~le~':.~t; . annual report, or t o pay the tax on the gross amount re-

ceived, as hereinbefore provided, the Insurance Commis-

sioner shall forthwith suspend or revoke all authority to \

Sl.JCh corporation or association and all its agents to do

business in this State, and shall publish such revocation

in some newspaper published in this State, and may pro-

ceed to collect whatever sum of money may be due or

owing on account of such tax by suit or action, in the

name of the State of Georgia, against such corporation

or association,

Fraternal, secret or

SEC. 19. Be it further enacted, That nothing in this Act

industrial societies.

contained shall

apply

to

or

be

construed

to

require any

fraternal or secret or industrial societies, or other associa-

tions exempt by law, now organized or to be organized in

this State, to pay any license fee or tax, or to make or file

reports with the Insurance Commissioner, or to prevent

the same from doing business in this State when the

mqney, benefit, charity or relief is payable by the grand or

supreme body of the same, and is derived from assess

ments on subordinate lodges, councils or other bodies or

their members.

INSURANCE LAWS.

21

SEC. 20. Be it further enacted, That any corporation, idelity

.

.

Insurance

now or hereafter organized under the laws of

th1s

State, -require-:?
ments,

for the purpose of transacting the bu si nes!" -_,f fid elity in- acmapq1utna1,t eotcf

surance, shall be licensed to transact business upon com-

pliance with all the requirements in this Act, prescribed

with reference to life insurance companies organized un-

der the laws of this State, so far as the same may be ap-

plicable to such fidelity insurance company; any fidelity

insurance company incorporated and organized under the

laws of any other State of the United States or foreign

governments, and which has a paid up capital of not less

than two hundred and fifty thousand dollars, may be li-

censed to transact business in this State upon compli-

ance with all the requiremen ts prescribed by this Ac t, so

far as the same may b e applicable for license to foreign

life insurance companies to transact business in this State.

SEC. 21. Be it further e nact ed,- That all live stock and aLnivde sstteoacmk steam boiler insurance companies chartered by this State qhUoipree-r-reor other States of t he United States, or foreign govern-ments, etc.

ments, and doing business in this State, shall be subject

to all the requiremer ts of this Act in relation to life in-

surance companies, except the requirements in relation to

valuation of policies,

SEC. 22. Be it further enacted, That the Insurance oaths Ins. C~ommiSSIOner and sueh person or persons as may be Cadommi'nr ismteary

appointed by him to make inspections, ;ue hereby author-

ized to administer any and all oaths to parties and wit-

nesses, as required under the provisions o f this Act.

SEC. 23. Be it further enacted by th e authority afore-

said, That all laws and parts of laws in conflict with this

act be, and the same are, hereby repealed.

22

INSURANCE LAWS.

AN ACT

Defining a contract of fidelity insurance, to provide for incorporated fidelity insurance companies and other companies doing a fidelity insurance business in this . State, becoming sureties on bonds required by law to be taken; and to make said companies liable on such bonds as individuals are on all of said bonds, and for other purposes in that behalf.

SECTION 1. Be it ~nacted by the General Assembly of

Georgia, That from and after the passage of this Act, that

the contract of fidelity insurance contemplated by this

Act, is one whereby a fid elity insurance company or such

other corporation or company as may be doing a fidelity

insurance business in this State for a stipulated sum of

money or premium, insures against loss, caused by the

defalcation, default, neglect or dishonesty of a trustee,

officer of the la~, officers of court, agents or other em-

ployees, and such other persons as may be required to

give bond, or guarantees the performance of all such bonds

or other obligations in favor of the insured, as individu-

als now do under the law who sign the bonds of all such

persons as sureties.

Amount of SEC. 2. Be it further enacted That any fidelity insurance

Cft)/ital qutred .

re-

company

or

sueh

other

corporati.On

or company

as

may

do

fidelity insurance business in this State, incorporated and

organized under the laws of this State or any other State

oftp.e United States or any foreign State, for the purpose

of transacting business of fidelity insurance, which has a

paid-up capital of not less than two hundred and fifty

thousand dollars, and which shall have complied with all re

quirements of law for license to and the transaction of

bul)iness by such companies in this State, may upon proper

proof thereof, and upon production of evidence of solvency

and credit satisfactory to the judge, head of department

or other officer or officers in this State authorized to ap-

prove and accept bonds, be accepted as surety li pon the

bond of any person, company or corporation required by

INSURANCE LAWS.

23

the laws of this State to execute bonds in lieu of any surety or sureties as now required by law, any such fidelity insurance company or other companies in this State, doing a fidelity insurance business, may be released from its liability on such bonds, on the same terms and conditions as are by law prescribed for the release of individ. uals. It being the true intent and meaning of the provisions of this Act, to enable the companies and corporations doing a fidelity insurance business, to become the surety on all such bonds required by law to be taken, with all the rights and subject to all the liabilites of individ-
uals. SEC. 3 Be it further enacted, That any fidelity insu- Est opped
sance company or such other corporation or company as fmrogmoodrepnoy- may be doing a fidelity insurance business in this State, rtoateexepcouwteer. which shall execute any bond as surety under the provisions of this Act, shall be estopped in any proceeding to enforce the liability which it shall have assumed or incurred to deny its corporate power to execute such instrument or assume such liability.
SEC. 4 Be it further enacted, That in the event any How sued such fidelity insurance company, or other corporation or ~~:r!:.~':"e~~ company doing a fidelity insurance business in this State, vice. shall become surety on any of the bonds or obligations mentioned in this Act, snch corporation or company shall be subject to be sued on such bonds or obligation in the county of the residence of the principal in such bond or obligation, and service may be perfected on said corporation or company as is prescribed for service on fire insurance companies doing business in this State. Provided, that said companies before beginning business in this State or signing any bond shall obtain a license from the Comptroller-General, which license shall be revoked if said companies, as to any bond, as to business in this State, shall begin a suit in the United States courts or remove or caused to be removed any suit thereto.
SEC. 5 Be it further enacted, That all laws and parts of ~aws in conflict with this Act be, and the same are hereby repealed.
Approved October 22, 1887.

24

INSURANCE LAWS.

TAXATION.

BASIS AND RATE-RETURN AND COLLECTION.

Tax of one TAX ACT OF 1887.-All home and foreign insurance pperermceiunmt osn. compantes d om g b usm ess 111 t h"ts State sha11 pay one

per cent. on all premiums in money, or otherwise, received

by them.

Payment- 829. Payments must be made in the funds in which bow made. t axes may be pat"d a t t he State treasury, free of any ex-

pense to the State.

879 If any corporation, company, person, agency, or
Itonsi.ssCuoemfi'.r m stttutton, w h o are requtred to rna ke t hetr returns to the fdae.liangqauiennstt I nsurance Commt.ss.wner, shallfat"1 to return t11e t axable tcioornpso.ra- propert-y or sp ect"fics, or pay annua11y t he taxes for wh"tch

they are liable to the State Treasurer, the Insurance

Commissioner shall issue against them an execution for

the amount of taxes due according t o law, together with

the costs and penalties.

Defaultta.x 882. The penalty or default tax on foreign insurance otinoncosrpora- compames sh all b e fi ve h un d red do11ars.

Where no 884. When there is no return by which to assess the i~~~r~dmr tax, the Insurance Commissioner shall, from the best into assess. formation he can procure, assess in hi<> discretion,

Fi. fa.

885. The executions issued by the Insurance Commis-

~g~~!~;- sioner against any company shall be directed to all and sin-

ehdo.w direct- gu1ar t he sh en"ffs an d -oth er 1aw fu1 offi cers of t h"ts S tate,

with directions to levy the same on the property of the

corporation or company, with power to issue and serve

garnishments upon the debtors of the corporation.

Fi. fas. vs. 886. The executions against agents of foreign institufao~:reenitgsno.f ttons, as a foresat"d , sh a11 be agam st t h e p nnctpa1 agent or compames. h"ts successor, an d sh all auth on.ze the officer to levy on all

the property of the agency, to seize its money, notes or

other effects.

28 50. Insurance companies shall pay damage when, [The

several insurance companies of this State, and foreign in-

surance companies doing business in this State, in all

cases when a loss occurs and they refuse to pay the same

INSURANC,E LAWS.
within sixty days after a demand shall have been made by the holder of the policy on which said loss occurred, shall be liable to pay the holder of said policy, in addition to the loss, not more than twenty-five per cent. on the liability of said company for said loss; also, all reasonable attorney's fees for the prosecution of the case against said company: Provided, it shall be made to appear to the jury trying the same that the refusal of the company to pay said loss was in bad faith.]
An Act to amend Section 3408 of the Code of Georgia with reference to the venue of suits against Insurance Companies having more than one place of business in this State, and for other purposes.
SECTION 1. Be it enacted by the General Assembly of the State of Georgia, That from and after the passage of this act, section 3408 of the Code of Georgia to be, and the same is hereby amended by atlding in the seventh line thereof, between the words 'business'' and ''was," the words "or in any county where such agency or place of doing business,'' so that said section, as amended, will read a!> follows, towit: Whenever any person may have any claims or demand upon any insurance company having agencies, or more than one place of business, it shall be lawful for such person or persons to institute suit against said insurance company within the county where the principal office of such com pany is located, or in any county where said insurance company may have an agency, or place of doing business, or in any county where such agency or place of doing business was located at the time the cause of action accrued, 9r the contract was made, dut of which said cause of action arose.

INSURANCE LAWS.

An Act to prescribe the manner and mode of making returns by Insurance Companies, and for other purposes.

Returns of SECTION 1. Be it further enacted by the General Assem-

premiums for taxa-

bly of the State of Georgia, That from and

after

the first

tion must give name

of May, 1882, insurance companies doing business in

this

of agent.

State, in making their returns to the Comptroller. Ge neral

for purposes of taxation, shall give the name of each agent

acting for such company, and post-office address of same;

the aggregate amount of risks underwritten in this State

during the tax year hereinafter provided; the amount of

premiums received, and the losses paid and unpaid by

agencies.

Returns SEC. 2. Be it further enacted by the authority afore-

mmaudset bbey sa1u:1, That t he returns prov1'd ed for m. t 11e prececj m' g sec-

.July 1, and tax paid.


tton

shall

be

made

by

the

.
pres1dent

or some other

duly

authorized officer of the company, duly sworn to, and

shall be forwarded to the Comptroller-General on or be-

fore July Ist of each year; and at time of making such re .

turns the amount of tax due by said company upon prem-

ium receipts or otherwise shall be forwarded to the

Treasurer o(this State.

Return_s SEC. .3 Be it further enacted by the authority aforemMaadye1nstomto sal'd, That t he returns herem. before requ1.red to be made April 30th. to the Comptro11er-Genera1 shall embrace a p en.od of t1. me

commencing May Ist, and ending with April 30th, next

preceding the date of the return made, and companies

Company making the same must notify the Comptroller-General of

mCoumstpn-oGteifny. o:fficer or agent m thI'S State agamst whom 1ega1 process

oatft(n\ranmeye of sha11 1. ssue m. case 1. t becomes necessary for t he Comptro1-

waghaommstpro-ler to Issue ji. fa. agam- st sal'd compames for any v101atton

cess must



issue. of the laws in this State governing msurance companies,

or for the non-payment of taxes due by them.

SEC. 4 Be it further enac ted by the authority aforesaid,

That all laws and parts of laws in conflict with this Act be,

and the same are hereby repealed.

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