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INSURANCE LAWS 
 
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OF THE 
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STATE OF. GEORGIA. 
 
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IN FORCE TO AUCU8T t 5 1 t 909 
 
ATLANTA, GA. C. P. BYRD, STATE PRINTER. 
1908. 
' . 
 
 ,.. 
 
 INSURANCE LAWS 
OF THE 
STATE OF GEORGIA 
IN FORCE TO AUCUST 15, 1909 
WM. A. WRIGHT,  
Comptroller-General, 
INSURANCE COMMISSIONER 
ATLANTA, GA. C. P. BYRD, STATE PRINTER . 
1908. 
 
  INSURANCE LAWS 
 
AN ACT 
 
TO PROVIDE, FOR LICENSING MUTUAL INSURANCE COMPANIES, INSURING AGAINST LOSS BY BURGLARY, ETC. 
No. 385. 
 
An Act to provide for the admission and license to do business in this State of any insurance company organized and incorporated on the mutual plan under th~ laws of this State or any other State of the United States, for the purpose of insuring against loss or damage resulting from burglary, robbery, or attempt thereat, and insuring against the loss of money and securities in course of transportation when shipped by registered mail, and for other purposes. 
 
Section 1. Be it enacted by the General Assembly Mutua!. 
 
aoffoGreesoar1"gdi,a,Ta'hnadt itanisyhmerseubryanenceactceodmbpyanthye oarugtahmo.rzietyd 
 
f~~tgesb 
aga.ms . 1lJ'o g.Iarys,edetc., 
 
' 
 
and m corporated on the mutual plan under the laws 1Wffi , 
 
of this State and any other State of the United States 
 
for the purpose of insuring against loss or damage 
 
resulting from burglary and robbery or attempt 
 
thereat, and insuring against the loss of money and 
 
securities in cburse of transportation when shipped 
 
by registered mail, shall be admitted and licensed to 
 
do business in this State as hereinafter pl'ovided. 
 
 4 
 
INSURANCE LAWS 
 
Oonditioll5. 
 
Sec. 2. Be it further enacted by the- authority 
aforesaid, That before any such company shall be permitted and licensed to transact business in this State it shall have in force :five hundred (500) or more policies on which the premiums shall have been paid in cash, or shall be evidenced by the written contracts of the policyholders, on which not less than one-fifth (1/ 5) of the amount shall have been paid in cash, and the cash and net face value of contracts for premiums on hand shall amount to a sum of not less than :fifty thousand ($50,000) dollars. The premium contracts so held shall constitute a part of the assets of the company. 
 
~~:~1e~Ieanc3py Sec. 3. Be it further enacted by the authority ~~~~~~ with aforesaid, That every such company, association or Commissioner. partnership shall :file in the office of the Commis- 
sioner of Insurance a certified copy of their charter or deed of settlement, together with a statement under oath of the president and vice-president and secretary of the company for which he or they may act, stating the name of the company and place where located, a detailed statement of its assets, showing the number of policyholders, aggregate amount of premium contracts, the amount of cash on hand, in bank or in the hand of agents, the amount of real estate and how the same is incumbered by mortgage, the numhe1 of shares of stock of every kind owned by the company, the par and market value of the same, amount loaned on bond . and mortgage, the amount loaned on other securities, stating the kind and the amount loaned on each and the estimated value of the whole amount of such securities, and any other assets or property of the company, also stating the indebtedness of the company, the amount of losses adjusted and unpaid, the amount incurred and in process of adjustment, the amount resisted by the company as illegal and fraudulent, and all other claims existing against the company; also a copy of the last annual report, if any,made under 
 
 INSURANCE LAWS 
 
5 
 
any Jaw of the State by which such company was 
 
incorporated; and no agent shall be .allowed to tran- 
 
sact business for any such company whose reinsur- 
 
ance reserve, as required in this Act, is impaired to Impaired . reserve. 
the extent of twenty per cent. thereof wh1le 
 
such deficiPncy shall continue. Nor shall it be law- 
 
ful for any agent or agents to act for any company Agents. 
 
or companies referred to in this, Act, directly or 
 
indirectly, in taking risks or transacting the business 
 
of burglary and robbery insurance or the insurance 
 
of the safe shipping. of money and securities by reg- 
 
istered mail in this State, without procuring from the 
 
Commissioner of Insurance a certificate of authority, 
 
stating that such company.has complied with all the 
 
requirements of this Act which apply to such com- 
 
panies, and the name of the attorney appointed to 
 
act for the company. 
 
 
 
Sec. 4. a f Ol'8Sa'ld, 
 
Be it further enacted by the authority 
'Illat any company permitted and 1I.Censed 
 
Business confliinneeds atondcertain 
 
to transact business in this State under this Act shall persons. 
 
confine its line of business to that stated in the first 
 
section of this Act, and shall confine its business in 
 
this State to banks, bankers, loan companies and 
 
county treasurers, and shall not issue any policy or 
 
policies to any persons, firms or corporations in this 
 
State other than banks, bankers, loan companies and 
 
county treasurers. Every such company shall set 
 
aside a re-insurance reserve of fifty per cent. of its Reserve. 
 
premiums, whether collected in cash or represented 
 
by obligations of the policyholders, as written in its 
 
policies ; this reinsurance reserve to be maintained 
 
so long as the risk is in force. 
 
Sec. 5. Be it further enacted by the authority Liability of aforesaid, That policyholders of any company per- policyholders. 
mitted to transact business in this State under this Act shall be held liable to pay the membership fee and premium on their insurance as paid or contracted to be paid at the time the policy is taken out 
 
 6 
 
INSURANCE LAws 
 
or the risk begins, and shall not be held liable for any other or further assessments or claims on the part of the company or its policyholders. The membership fee and premium agreed upon may be collected in cash at the time the policy is issued or evidenced by a written obligation of the policyholder as may be agreed upon by the company and the policyholder. Such payment or obligation shall be the limit of the liability of the policyholder to the company for premium on their insurance. 
 
Sec. 6. Be it further enacted by the authority 
 
aforesaid, r.J.'hat it shall not be lawful for any insur- 
 
. ance company, association or partnership incorpora- 
 
ted by or organized under the laws of any other 
 
State of the United States, for any of the purposes 
 
specified in this Act, directly or indirectly, to take 
 
risks or to transact any business of insurance in this 
 
State, by any agent or agents in this State, until it 
 
Shall appoint attorney. 
 
shall first appoint an attorney in this State on whom 
 
process of law can be served, and file in the office 
 
of the Insurance Commissioner a written instrument, 
 
duly signed and sealed, certifying such appointment, 
 
which shall continue until another attorney be .sub- 
 
Service of 
)IJ"Ocetll!. 
 
stituted; and any process issued by any court bf record in this State, and served upon such attorney by 
 
the proper officer of 'the county in which such attor- 
 
ney may reside or may be found, shall be deemed a 
 
sufficient service of process upon such company, but 
 
service of process upon such company may also be 
 
made in any other manner provided by law. 
 
Annual autements. 
 
Sec. 7. Be it further enacted by the authority aforesaid, That the statement and evidences of membership, assets and investments required by section three (3) of this Act, shall be renewed from year to year in such manner and form as may be required by said Insurance Commissioner, with an additional statement of the amount .of premiums received in this State during the preceding year, so long as such 
 
 I:NE?URANCE LAws 
 
7 
 
agent continues, and the said Insurance Commis- 
 
sioner, on being satisfied that the membership, assets, 
 
securities and investments remain secure, as herein- 
 
before mentioned, shall furnish a renewal of the cer- 
 
tificate as aforesaid, upon the payment to the State 
 
at the time of filing the-statement here provided for 
 
and a fee of $5.00 for each corporation, and $25.00 
 
for each foreign corporation. Any violation of any Penalty for 
 
of the provisions of this Act shall subject the party violation. 
 
violating the same to a penalty of not less than one 
 
hundred dollars ($100) or more than five hundred 
 
dollars ($500). 
 
 
 
Sec. 8. Be it further enacted by the authority aforesaid, That all laws and parts of laws be, and the same are, hereby repealed. 
 
Approved December 21, 1897. 
 
AN ACT 
 
To regulate the business of Insurance in this State, and for other Purposes. 
 
Section 1. Be it enacted by the General Assembly Comptrollerof the State of Georgia, That from and after the ~n~~=~ passage of this Act, the Comptroller-General of this commisaioner. 
State shall be the Ins-urance Commissioner of this State, and shall be charged with the execution of the laws of this State regulating the business of Insurance in the State of Georgia. 
 
Sec. 2. 
 
Be 
 
it 
 
further . 
 
enacted ' 
 
That 
 
it shall 
 
not 
 
be 
 
e~otgrnne.tlliSmIJdralflCore- 
 
lawful for any insurance company chartered by this ~~rb~es 
 
State or other Stat~s, or foreign government, to tran- }:=.e:ce~>.r 
 
sact any business of insurance in this State without Commiasiollet. 
 
first procuring a license from the Insurance Com- 
 
missioner of this State, and before said commissioner 
 
shall issue such license, such insurance company 
 
must fully comply with all the provisions of this Act, 
 
 8 
 
INSURANCE LAws 
 
and file with said Insurance Commissioner a state- 
 
ment, under oath of its President and Secretary, 
 
specifying : First. r;ehe name and locality of the 
 
Annual . ~Jl<lrt coippany. Second. .The condition of such company, ocfomcpoanndy1.hon of Dn the th1rty-first day 0:f December then next preced- 
 
ing, exhibiting the following facts and items in the 
 
following form, namely: First. The amount of 
 
capital stock of tpe 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 or assets held by 
 
the company, specifying: 
 
 
 
contents of 
 
1. The value, or as near as may be, of the real 
 
annual reJl(lrt. estate held by such company; if encumbered, to what 
 
.amount. 
 
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 
 
mortgages 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, num- 
 
ber of shares and par and market value of each kind 
 
of stock. 
 
7. The amount of interest actually due and un- 
 
paid. 
 
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 herein- 
 
b~oru. 
 
 
 
Third. The liabilities of the company, specifying: 
 
1. The amount of losses due and yet unpaid. 
 
2. The amount of claims for losses re.sisted by 
 
the company. 
 
 lNSURANCE LAws 
 
9 
 
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 remaining 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 for reinsurance. Fourth. The income of the company during the preceding year, specifying : 1. The amount of cash .premiums received. 2. The amount of notes received for premiums. 3. The amount of interest money received. 4. rrhe amount of income received from other sources. Fifth. rrhe expenditures during the preceding year, specifying: 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 commission to agents and officers of the company. 4. rrhe amount paid in taxes. . 5. The amount of all other payments and expenditures. 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 company. 
 
Sec. 3. Be it further enacted, That no insurance Amount of 
 
company 
 
of 
 
whatever 
 
class, 
 
except 
 
such 
 
c o m p a m. e s 
 
capital stock required of 
 
as have 
 
already bee.n 
 
chartered by 
 
thl.S 
 
State, 
 
Mason- 
 
home and foreign fi:e. rna- 
 
la.Cn, dOcdod-oFpeeJrlaOtW1vSe, 
 
roer1l'galsO.sUeSssmanednt llll1U'fetUma. 1sua1r'danScOeC lceot'lmeS- 
 
lrimfee,, amccliadnedn,t, live stock, and 
~team-boiler 
 
panies, shall be allowed to transact any business of ~~~~~~~~~. 
 
insurance in this State, unless possessed of at least i~~...:;, 
 
 10 
 
INSURANCE LAWS 
 
one hundred thousand dollars of actual cash capital 
 
paid up, or assets and invested in bond.s or stocks, 
 
estimated at their actual market value at 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 fil- 
 
ing such statement, the Insurance Commissioner, 
 
when satisfied that it is correct, and that the company 
 
has fully complied with the laws regulating .the busi- 
 
ness of insurance in this State, shall issue license to 
 
said company to transact business in this State. 
 
Said statement and license must be renewed annually 
 
on the first day of January, or within sixty days 
 
thereafter, and must show the condition of said com- 
 
pany on the thirty-first day of the preceding Decem- 
 
ber. 
 
All !nsurance companies re 
 
In addition to this statement above required, all 
 
quired to make semiannual 
 
companies, 
 
including 
 
co-operative 
 
or 
 
assessment 
 
life 
 
statements to the Governor. 
 
insurance companies doing business in this State, 
 
shall, through their chief officer or agent, residing in 
 
this State, make to the Governo:r of the State semi- 
 
annual statements on the first day of January and 
 
July 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 
 
the, thirty~first day of December then next preceding, 
 
said statement to be made in accordance with the 
 
terms and conditions set forth and required under 
 
the second section of this Act, which shall be sworn 
 
to by the officer or agent making the same. That at 
 
:M:ul!t be 'Published. 
 
the time of making such report to the Governor each company shall publish, at its own expense, a dupli- 
 
cat.e thereof in a newspaper of general circulation 
 
published in this State. That should any one of such 
 
insurance companies fail or refuse to make said state-  
 
Penalty for failure to . make semi annual statement. 
 
ment to the Governor, it shall, by such failure or refusal, forfeit its right to do business in this State until the first of January of the next year, and on such_ 
 
 INSURANCE LAws 
 
11 
 
failure or refusal the Insurance Commissioner shall recall and cancel the license of such delinquent company. 
 
Sec. 4. Be it further enacted, That all :fire, marine ~=t .:.:uired 
 
and inland insurance companies chartered by other ~,.:i'~;~lr;_ 
 
States or foreioo-n governments shall be required to lcaonmdpamie~ou~.rance deposit with the Treasurer of this State bonds of the 
 
United States, or bonds of this State, which, accord- 
 
ing to the acts and resolutions of the General Assem- 
 
bly, are valid, and which amount, according to their 
 
face value, to ten thousand dollars, which bonds shall 
 
be receipted for by the State Treasurer, and espe- 
 
cially deposited by him in the vaults of the treasury, 
 
and whenever such company ceases to do business in 
 
this State, and has settled up all claims against it, as 
 
hereinafter provided, said bonds shall be delivered 
 
up to the proper party on presentation of the Treas- 
 
urer's receipt. While said bonds are so deposited, 
 
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 parties entitled to reeeive 
 
them, or disposed of as hereinafter provided. 
 
theTm,hasturwedh,emn, evoerrdearntyo 
 
sleocssureinhs,luSr 
 
ed against recovery, m 
 
aoyccgui,Vrse,' 
 
where ICJ!~i 
OCCUI'II, liiSUred mar give 
 
notice to the State Treasurer of the pendency of said :fi~::...~. 
 
loss and of the amount claimed, after which time the 
 
State Treasurer shall be bound to retain, subject to 
 
the order of the court trying any suit that may be 
 
brought for the recovery of such loss, a sufficient 
 
amount to pay the judgment in said case, in the event 
 
of recovery; when such suit is ended, and the amount 
 
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 
 
satisfy the aforesaid judgment. 
 
 12 
 
INSURANCE LAWS 
 
When said receiver is appointed by the judge, who 
 
\Vben receiver 
m ay be appointed, and his duties. 
 
shall always require bond and security of him for the faithful performance of his duty, 1said State  
 
Treasurer, on his application, shall deliver to him 
 
bonds sufficient in their market value, if in his cus- 
 
tody to sntisfy said judgment. Said receiver's re- 
 
ceipts shall be a complete discharge to said Treas- 
 
urer 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 commis- 
 
sions as shall be allowed by said judge, he shall pay 
 
over to the plaintiff or his attorney a sufficient 
 
amount to satisfy the said judgment, and if there 
 
remains a:py residue in the hands of such receiver, 
 
he shall pay over the same to the agent of the com- 
 
pany, taking his receipts for the same, which shall 
 
be filed and recorded with the other papers in the 
 
case. 
 
If there are conflicting claims, then the State 
When there m Treasurer shall deliver over to the receivers, in the ~f~fn~~~ing order of their 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 hi.s 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 same with him, and then the receiver shall report such claim to the judge of the superior court appointing him, who shall by order provide for a bill of interpleader, as in cases of equity. 
 
when any company desires to withdraw from the 
 
pWahneyn WaIShceosm-1o 
 
State and will satisfy the  
 
Commissioner that 
 
all 
 
suits 
 
twhiethdSrtaawte. from pendinoo- against such party and of which no notice 
 
has been given, have been fully satisfied; or whenever 
 
no notice of claim has been given, and when rights 
 
under existing policies have been satisfied and re- 
 
leased, as the provisions of this Act require, then 
 
 INSURANCE LAws 
 
13 
 
said Treasurer shall return to said party the bonds 
 
so deposited upon order from said Commissioner. vVhenever, by means 0 f the prOVISIOnS 0 f th"IS ACt, cWtehpeoroeitebdonadres 
the amount 0 f bOndS SO depOSlted are redUCed, Sal"d ruerdeur ceshdalTl reas T reasurer sl1all at once not1.fy tl1e I nsurance Com- nanoctiefy cIonmsuprany. 
 
missioner 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 Insur- 
 
ance Commissioner fails to comply within thirty days, 
 
the license to do business in this State shall be re- 
 
voked and said Insurance Commissioner shall, at the 
 
same time, give notice by publication in a newspaper 
 
published at the capital of the fact o'f such failure and 
 
revocation of license, the cost of which publication 
 
shall be paid by the company failing to comply with 
 
the provisions of this Act; and when any company 
 
having made the deposit required by this Act has 
 
existing policies on property of citizens of this State 
 
on which no losses have accrued, and which company 
 
wishes to withdraw its deposits, before being allowed 
 
to do so, said company shall take up and satisfy said 
 
policies and give notice: of its intention to withdraw 
 
from the State, and of the fact that it has satisfied all 
 
losses and the claims of the policyholders above des- 
 
ignated, .which notice shall be published once a week 
 
for two month's in a newspaper to be designated by 
 
the Insurance Commissioner of the State, and at the 
 
expense of said company;. and it is hereby provided 
 
that any claims of the citizens of this State must- 
 
whether for losses or on existing policies where no 
 
losses have occurred-be fully settled before said 
 
deposits shall be withdrawn. 
 
. 
 
Sec. 5. Be it further enacted, That all life and accident insurance companies chartered by other States of the United States, or foreign governments, shall show by a certificate from the officer having supervision of the insurance department in the State in which they are chartered, or elect to make their 
 
 14 
 
INSURA-NCE LAWS 
 
~11 %~~~ies deposit, that they have deposited not less than one ~:~~.:;.~t: c~m- hundred thousand dollars, in such securities as may 
 
~~~~:d ~~::;e be deemed by such officer as equivalent to cash, sub- 
 
~lte~ave de- ject to his order as a guarantee fund for the security 
 
$loo,ooo. 
 
of policy-holders of said companies. 
 
All such companies charter~d by the State of 
 
llome life Georgia shall, before doing business in this State, 
 
companies shan deposit. 
 
deposit with the Insurance Commissioner of this 
 
State, or with some strong 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 subject to his order as a guarantee fund 
 
for the security of the policy-holders of the company 
 
making such deposit; all interest and dividends aris- 
 
ing 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 cer- 
 
tificate for the same shall be furnished to the com- 
 
pany. 
 
Sec. 6. Be it further enacted, That it shall be the 
 
~'::'~~i:foner duty of the Insurance Commissioner, whenever he 
 
mthaey 
 
inv~tigate affaus of 
 
caonmy piannsyu.rance 
 
shall deem it expedient so to do and he is empowered either in person or by' an expert 
' 
 
hereby exami- 
 
 
 
ner by him appointed, to investigate the affairs of 
 
any insurance company doing business in this State; 
 
to require free access to all books and papers of any 
 
company, or the agents thereof; to summon and ex- 
 
amine under oath any person in this State relative 
 
to the affairs and condition of said company; for 
 
probable cause to visit at its principal office wher- 
 
ever it mar be, any insurance company not of the 
 
State in which the substantial requirements of this 
 
Act, as to valuations of policies of life and accident 
 
insurance companies, and calculations for the rein- 
 
surance reserve of fire, marine and inland insurance 
 
companies, are not in force and doing business in 
 
 INSU RANCE LAWS 
 
15 
 
this State, for the purpose of investigating its affairs and condition, and revoke its authority to do business in this State if said company refuses to permit the examination. All expense incurred in the investigation of said companies shall be paid by the companies so examined. 
 
Sec. 7. Be it further enacted, That for every :fire 
 
insurance company doing business in this State, the Insurance Commi.SSIOner shall calculate, or cause t 0 
 
Insurance Com missioner shall calculate re-in 
 
be calculated, the reinsurance reserve for unexpired ~~;a~~~x;i=e 
 
:fire risks, by taking :fifty per centum of the premium fire risks. 
 
received on all policies that are written for the period 
 
of one year or less, and according to the New York 
 
percentage table for calculating reinsurance on all 
 
premiums received that have more than one year to 
 
run, and in marine and inland insurance he shall 
 
charge all the premiums received on unexpired risks 
 
as reinsurance reserve. Having charged against the 
 
company the reinsurance reserve as above deter- 
 
mined for fire, marine and inland insurance, and 
 
adding thereto all other debts and claims against the 
 
company, he shall, i1;1 case he :finds the capital stock 
 
of the company impaired, give notice to said com- 
 
pany to make good its whole capital stock within 
 
ninety days, and if this is not done, he shall require 
 
the company to cease to do new business within this 
 
State, and shall thereupon, in case the company is 
 
organized under authority of this State, immediately 
 
institute legal proceedings as hereinbefore required 
 
by the provisions of this Act. 
 
Any such insurance company, receiving the afore- 
 
said notice of the Insurance Commissioner to make Insurance comgood its whole capital stock within ninety days shall ~~~i~~~an f orthWI"th ca11 upon 1"ts stockholders f or such am'ounts swthoecnk.holders, 
 
as will make its capital equal to the amount :fixed by 
 
the charter of said company. 
 
In the case of companies chartered by other States 
 
or foreign governments, the Insurance Commissioner When Ins. of this State shall accept calculations of the reinsur- ~;i>t ~:t~. 
lations of 
 
 16 
 
INSURANCE LAws 
 
reserve made by other Ins. Com'rs. 
When Ins. Company is insolvent or fraudulently .conducted. - 
 
ance reserve made by the Insurance Commissioner of the State in which they are' chartered, when such calculations are made and furnished to the Insurance commissioner of this State by the first of March in each and every year. 
Whenever the Insurance Commissioner shall have reason to believe from an examination into the affairs of a company, that any insurance company of this State is insolvent or fraudulently conducted, or that its assets are not sufficient for carrying on business, or during any non-compliance with the provisions of this Act, he shall communicate 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 not be closed, 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 interests of the public so require, the said judge shall decree a dissolution of such corporation and -a distribution of its assets ; but in case it shall appear to said judge that said company is able and has complied with the provisions of this Act, and that it is not insolvent, a decree shall be entered annulling the action of the Insurance Commissioner in the premises, and authorizing the company to resume business. 
 
Sec. S. Be it further enacted, That the Insurance 
 
Ins. Com'r. $hall calculate 
 
Commissioner shall, as soon as practicable, in each 
 
net value of policies, when. 
 
alternate year, calculate, or cause to be calculated, 
 
the net value, 'on the 31st day of D~cember of the 
 
previous year, of all the policies in force on that day 
 
in each life insurance company chartered by this 
 
State, and in every other life insurance company do- 
 
ing business in this State, that shall fail to furnish 
 
him, as hereinafter provided, a certificate of the 
 
Insurance Commissioner of the State by whose 
 
:authority the company was authorized, or by the 
 
 - INSURANCE LAws 
 
17 
 
State in which it may elect to have its policies valued 
 
and its deposit made, giving the net value of all poli- 
 
cies in force in the company on the 31st day of De- 
 
cember 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 invested, the reserve to provide 
 
for the liabilities on all policies 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 premiums 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 premiums called for by the table of mortality 
 
and rate of interest designated. 
 
In case it is found that any life company doing 
 
business .in this State has not on hand the net value Where a com of all its policies in force after other debts of the r:a~;:db~fow 
 
company and claims against it, exclusive of capital legal safety. 
 
stock, have been provided for, it shall be the duty of 
 
the Insurance Commissioner to publish the fact that 
 
the then existing condition of affairs of the company 
 
is below the standard of legal safety established by 
 
this State, and he shall require the company at once 
 
to cease doing new business; and it is hereby made the 
 
duty of the Insurance Commissioner, after having 
 
determined 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. 
 
 
 
He shall accept the valuations made by the Insure 
 
 18 
. 
 
,. . INSURANCE LAws 
 
!ho'::!. ~~'d-e by ance Commissioner of the State under whose author- 
 
~r:,r;:,:iost::~ ity a life insurance company is chartered, when such 
 
~~~~t!:~ . 
 
valuations have been made on the basis mentioned 
 
above ; provided, the company shall furnish to thJ. 
 
Insurance Commissioner of this State, on or before 
 
the first day of March in each and every alternate 
 
year; a certificate from the Insurance Commissioner 
 
of such State, setting forth the value, calculated on 
 
the dates designated above, of all the policies in force 
 
in the company on the previous 31st of December, 
 
and stating that after all the other debts of the com- 
 
pany and claims against it at that time were provided 
 
for, the company had in safe securities an amount 
 
equal to 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 business in the 
 
State during the year for which the statement is 
 
made, that fails to furnish promptly the certificate 
 
aforesaid, shall be required to make full detailed list 
 
of policies and securities held or owned by the com- 
 
pany to the Insurance Commissioner of this State, 
 
and shall be liable for all charges and expenses con- 
 
sequent upon not having furnished said certificate. 
 
It shall be the duty of the Commissioner, after he 
 
When Ins. Commissioner shall make rigid exami nation into affairs of company. 
 
has notified a life insurance company chartered by this State to cease doing new business until the net value of its policies in force is equal to that called for by the standard of safety established by the State, 
 
at once to cause a rigid examination into the affairs 
 
of such company. In case it'should appear that there 
 
is no fraud, or gross incompetency or recklessness 
 
shown to exist in the management, he may upon pub- 
 
lishing 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 company 
 
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 ex- 
 
amination, he is satisfied that the company is likely 
 
to retrieve its affairs. 
 
 INSURANCE LA.ws 
 
19 
 
til! 
Whenever the Insurance Commissioner shall have reason to believe that any insurance company of this  State is insolvent or fraudulently conducted, or that its assets are not sufficient for conducting thehusiness of the company, or during any non-compliance with the provisions of this Act, his duty shall be: as 
prescribed in section 7 of this Act. 
 
Sec. 9. Be it further enacted, That any person Defin:ing .mo who solicits in behalf of any insurance company, or ~~n:'urance 
agent of the same, incorporated by the laws of this or any other State, or foreign government, or who takes or transmits, other than for himself any application for insurance, or any policy of insurance to or from such company, or agent of the same, or who advertises or otherwise gives notice that he will receive or transmit the same, or who shall receive or deliver a policy of insurance of any such company, or who shall examine, inspect any risk at any time, or receive or collect or transmit any premiums of insurance, or make or forward any diagram of any building or buildings, or do or perform any other act or thing in the making or consummating of any contract of insurance for or 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 i}lsurance company, or of or by any broker or other person, shall be held to be the agent of the company for which the act is done or the risk is taken. 
Any person who shall do or perform any of the Agenmacts or things mentioned for any insurance company ~ri~~1 ~~out or agent of said company without such company hav- authority. ing first received a certificate of authority from the Insurance Commissioner of this State, as required by law, shall be guilty of a misdemeanor, and on conviction in any court of competent jurisdiction, shall be punished as provided by section 4310 of the Code of 
 
 20 
 
INSURANCE LAws 
 
Georgia, and shall also pay a sum equal to the State, 
 
county and municipal taxes and licenses required toll be paid by insurance companies legally doing busi- 
 
ness in this State; and it is hereby made the duty ofl 
 
the Insurance Commissioner to see that all violators 
 
of the provisions of this section are prosecuted. 
 
Any person who shall do any of the acts mentioned 
 
in this section shall also be personally liable to the 
 
holder of any policy of insuranoe in respect of which 
 
such act was done, for any loss covered by the same; 
 
provided that the penalties provided for in this sec- 
 
When adjusters are 
 
not 
 
tion 
 
shall 
 
not 
 
apply 
 
to 
 
adjusters 
 
of 
 
unauthorized 
 
in- 
 
li able. 
 
surance companies from whom citizens of this State 
 
have purchased insurance for themselves as provided 
 
for in this section, whenever the person or persons 
 
purchasing said insurance shall immediately notify 
 
the Insurance Commissioner, giving the names and 
 
locality of each company in which they have policies, 
 
and at the mme time pay to said Insurance Commis- 
 
sioner the same license fees and taxes for each company as are now or may hereafter be required of 
 
fire insurance companies 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 insurance 
 
from that company, then and in that case any person 
 
or persons purchasing 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 companies authorized to do busi- 
 
ness in this State. 
 
Sec. 10. Be it further enacted, That any insurance 
 
Shall file with company not incorporated or organized under the 
 
Insurance Commissioner 
 
laws of this State, desiring .to transact business in 
 
a power of attorney. 
 
this State, shall file with the Insurance Commissioner 
 
of this State a written instrument or power of attor- 
 
ney, duly signed and sealed, appointing and author- 
 
izing some person, who shall be a resid~nt of this 
 
 INSURANCE LAws 
 
21 
 
State to acknowledge or receive service of process, and ~pon whom process may be served for and in be- 
 
half of such company in all proceedings that may be 
 
instituted against such company in any court of this , 
 
State or any court of the United States in this State, and ~onsenting that service of process upon any 
 
agent or attorney appointed under the provisions of 
 
this section shall be taken and held to be as valid as 
 
if served upon the company; and such instrument 
 
shall further provide that the authority of such attor- 
 
ney shall continue until revocation of his appoint- 
 
ment is made by such company by filing a similar in- 
 
strument with said Insurance Commissioner, where- 
 
by another person shall be appointed as such attor- 
 
ney; provided, however, that the provisions of this 
 
section shall not be construed to alter or amend the 
 
laws now of force in this State relative to bringing 
 
suits and serving process on foreign corporations 
 
doing business in this State. 
 
If an attorney so appointed shall absent himself 
 
from t1US abode, or 
 
S>- tat 
sh all 
 
e, or secre 
 
h"IS te h 
 
1.UmSUseal1f , 
 
p1a so 
 
cteh 
 
0 f at 
 
bUSiness or process may 
 
When Ins . 
CmoamymaJSpspJoOinnetr an attorney. 
 
not be served upon him, or shall have become dis- 
 
qualified from any cause whatever, or shall die, the 
 
Insurance Commissioner shall immediately appoint 
 
an attorney for service for such company, of which 
 
appointment notice in writing shall be immediately 
 
given by said Insurance Commissioner to such 
 
appointee, and also be sent to the company by mail, 
 
or to its general agent or manager, which appoint- 
 
ment 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 Com- 
 
missioner written notice thereof, or until the com- 
 
pany shall have made another appointment in the 
 
manner above prescribed. Service o 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 and be deemed personal service upon such 
 
 22 
 
INSURANCE LAws 
 
company so long as it shall have any obligations or liabilities outstanding in this State, although such company may have withdrawn, been excluded from, or ceased to do business in this State. If any company shall fail, neglect or refuse to appoint and maintain within the State such attorney or agent, it shall forfeit the right to do or continue business in this State. 
Sec. 11. Be it further enacted, That no person shall act as an agent in this State of any insurance .._ company of this or any other State, or foreign government, doing a business in any manner, until said company has fully complied with the provisions of this Act, and received from the Insurance Commissioner certificates of authority for itself and its agents to transact business in this State. The fees of the Insurance Commissioner shall be as follows: Fees of Insur- For filing certified copy of charter, $20.00; for ex:k,<;:'e<'?ommis- amination of annual statement $20.00, and for certificates of authority or license to agents, $3.00 each, one~fifth of which shall be paid to the Commissioner in full compensation 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 thereof, showing the entire amount of premium receipts of every character and description (deducting returned premiums on cancelled policies) of said companies in this State during the year or fractjonal part of the year ending the 30th day of Apr~l next preceding, whether said premiums were 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 every local insurance agent, or firm, doing business in this State, shall pay a tax of ten dollars for each county in which they shall solicit business, and every agent of a matri- 
 
 INSURANCE LAWS 
 
23 
 
monial, natal or nuptial company, or traveling special or general agent of life, :fire, accident or other insurance eompany doing .business in this State, shall pay a tax of :fifty dollars, which said agent must pay before he or they shall be authorized to act as an agent for any of their companies. Said tax shall be paid by said agent to the Comptroller-General, and shall be in addition to the \license fee required of insurance companies by the Act approved October 24th, 1887. The receipts of the Comptroller-General for the payment of this tax, together with his certificate, as provided by said Act, approved October 24th, 1887, shall constitute the license for said agents to transact business for their companies as designated by said certificates; provided, this tax shall not be r equired of agents of .assessment life insurance companies or mutual aid societies. 
 
Sec. 13. B e it further enacted, That whenever the Where other 
 
existino- laws sha11 rbeqmre 
 
of any other State of the of m surance compames 
 
UchnaitretderSedtatbeys 
 
~a~:: r.i'~~!ftz 
than this State. 
 
this State, and having agencies in such other s tate, 
 
or of the. agents thereof, any deposit of securities in 
 
such State for the' protection of policy-holders or 
 
otherwise, or any payment or penalties, certificates 
 
of authority, 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 com- 
 
panies of such State, establishing or having hereto- 
 
fore established an agency or agencies in this State, 
 
shall be and are hereby required to make the same 
 
deposit, for a like purpose, with the Insurance Com- 
 
missioner of this State, and to pay to said Commis- 
 
sioner .for penalties, certificates of authority, license 
 
fees or otherwise, an amount equal to the amount of 
 
such charges imposed-by the, laws of such State upon 
 
companies of this State and the agents thereof. 
 
Sec. 14. Be it further enacted, That it shall not be lawful for any corporation or association organ- 
 
 24 
 
INSURANCE LAWS 
 
CAoss-eOspsemraetnitve0 '' ized under the laws of this or any other States of the companies. United States for the purpose of furnishing life in- 
demnity or insurance upon the assessment plan by its agents, to do any business in this State until such corporation 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 ending on the thirty-first day of the next preceding December, sworn to by the President or Secretary or like officers thereof, setting forth the number and amount of certificates of 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 certificates of membership or policy, theretofore or thereafter to be issued, to the full amount or limit named therein; a certifi~ate from the Insurance Commissioner or other like officer, charged with the duty of executing or enforcing the execution of the insurance laws of its home State, certifying that it is legally entitled to do business in;said home State; a copy of the application for membership or insurance, and of each form thereof, if more than one 
form used; a copy of the constitution and by-laws, of each and every addition thereof, which must show that all indemnities to beneficiaries are in the main provided for by assessments upon all surviving members. And whenever said company shall fail to pay 
a valid claim to the full limit. named in any policy 
issued by them to any resident of this State, the Insurance Commissioner shall revoke their authority to do business in this State. 
 
 INSURANCE LAws 
 
25 
 
Sec. 15. Be it further enacted, Th;;tt after autl1o- ~~~n\1~nsed. rizing such corporation or association to do business in this State, as provided in this Act, the Insurance Commissioner shall issue license to agents thereof to be designated by the corporation or association, or a general agent thereof, autP.orizing them to act as such agents during the year for which said company is licensed; but such license must be renewed 
annually. 
Sec. 16. Be it further enacted, That any agent, securing physician or other person who shall knowingly se- ,ro~ci!~t~~uf~rcure, or cause t o be secured, a cert1'ficate of member- ethdgeier. knowlship on any person without his knowledge or consent, or by any means of misrepresentation, false, fraudulent or untrue statements; be instrumental in securing a certificate of membership on any ageq or infirm person, or in restoring to membership any person not in an insurable condition, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be fined in a sum of not less than one hundred d6llars nor more than one thousand dollars, or be imprisoned in a county jail not less than thirty days, nor more than Dne -year, or both, in the discretion of the court, and said certificate or renewal so secured shall be absolutely void.  
Sec. 17. Be it further enacted, That every corpo- Annual stateration or association which may be doing business in ::;,~rJ~h~~ this State under the provisions of this Act shall, on or before the first day of March in each year after it commences to do business in this State, make and file with the Insurance Commissioner of the State a report of its affairs and operations during the year ending the 31st day of December. next preceding. Such annual report 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.  
 
 26 
 
INSURANCE LAws 
 
Fees and taxes. Sec. 18. Be i~ further enacted, That there- shall be paid to the Insurance Commissioner by each cor-  poration or association when it is authorized to do business in this State under the provisions of this Act, the same fees as required by section 11 of this Act, together with all such subsequent fees as are prescribed under said section 11. In addition to the foregoing fees, every such corporation or association shall, on or before the first day of July of each year, report, under oath of its President and Secretary, or other like officer, to the Insurance Commissioner the gross amount received on business done in the State during the year ending the 30th of April next preceding, 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 association or corporation; provided, however, that if such corporation or association should at any time be the owner of any real or personal property situated in this State, such property shall not be exempt from taxation by reason of the provision of this section. 
 
Failure to file Sec. 19. Be it further enacted, That if. such cor- 
 
annual report or pay taxes 
 
poration or association shall at any time fail or re- 
 
-penalty. fuse to make.the annual report, or to pay the tax on 
 
the gross amount received, as hereinbefore provided, 
 
the Insurance Commissioner shall forthwith suspend 
 
or revoke all authority to such corporation or asso- 
 
ciation and all its agents to do business in this State, 
 
and shall publish such revocation in some newspaper 
 
published in this State, flnd may proceed 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, 
 
Sec. 20. Be it further enacted, That nothing in 
 
aecret or indua trial societies. 
 
this 
 
Act contained 
 
shall 
 
apply 
 
to 
 
or 
 
be 
 
construed 
 
to 
 
require any fraternal or secret or industrial socities, 
 
,. 
 
 INSURANCE LAws 
 
27 
 
or other associations e,xempt 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 money, benefit, charity or relief is payable by the grand or supreme body of the same, and is derived from assessments on subordinate lodges, councils, or other bodies of their 
members. 
 
Sec. 21. Be it further enacted, That any corpora- Fidelity illSIJrti.On now or h ereafter .organi.zed under the laws 0 f amnecnet-sr,eqaumioreu-nt this State, for the purpose of transacting the business ot capital, et~. 
of fidelity insurance, shall be licensed to transact business upon compliance with all the requirements in this Act prescribed with reference to life insurance companies organized under the laws of the State, so, far as the same may be applicable 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 paid-up capital of not less than two hundred and fifty thousand dollars, may be licensed to transact business in this State upon compliance with all the requirements prescribed by this Act, so far as the same may be applicable for license to foreign ljfe insurance companies to transact business in this State. 
 
Sec. 22. and . steam 
 
bBOeI.1ei 
 
t r 
 
fI.unrstuhrearnceenaccotemdp, aTmh.east 
 
all live stock chartered by 
 
Live sto~k anti 
steam-bOiler-requirements, 
 
this State or other States of the United States or for- etc. 
 
eign governments, and doing business in this State, 
 
shall be subject to all the requirements of this Act in 
 
lelation to life insurance companies, except the re- 
 
quirements in relation to the valuation of policies. 
 
Sec..23: Be it further enacted, That the Insurance oaths rnsur- 
 
CommiSSIOner ' 
 
and 
 
such 
 
person 
 
or 
 
persons 
 
as 
 
may 
 
s"1.n0cneerCommamyi&- 
 
be appointed by him to make inspection, are hereby administer. 
 
authorized to administer any and all oaths to parties 
 
 28 
 
INSURANCE LAws 
 
and witnesses, as required under the provisions of. this Act. 
Sec. 24. Be it further enacted by the authority aforesaid, That all laws and parts of laws in conflict with this Act be, and the same are, hereby repealed. 
 
 INSURANCE LAws 
 
29 
 
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 suret1es 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 enacted by the General Assembly of Georgia, That from and after the passage of this Act, that the contract of fidelity insurance contemp~ated by this Act is one whereby .a fidelity 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 trustee, officer of the law, officers of court, agents or other employees, and such other persons as may be required to give bond, or guarantees tlfe performance of all such bonds or other obligations in favor <>f the ftlsured as individuals now do under the law who sign the bonds of all such persons as sureties. 
Sec. 2. Be it further enacted, That any fidelity Amount or insurance company, or such other corporation  or ~:g~~:!d. company as may do fidelity insurance business in this State, incorporated and organized under the laws of this State or any other State of the 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 requirements of law for license to and the transaction of businest-> 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 approve and accept bonds, 
 
 30 
 
INSURANCE LAWS 
 
be accepted as surety upon the bond of any person, company or corporation required by 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 their liability on such bonds, on the same terms and conditions as are by law prescribed for the release of individuals, 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 liabilities of individuals. 
 
:F.stopped from denying corporate power to execute. 
 
Sec. 3. Be it further enacted, That any fidelity 
 
insurance company, or such other corporation or 
 
company as may be doing a fidelity insurance busi- 
 
ness in this State, which shall execute any bond or 
 
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 as- 
 
sume such liability. 
 
 
 
-How I!Ued a:nd Sec. 4. Be it further enacted, That in the event 
 
how to perfect oervice. 
 
any such fidelity insurance company, or other corpo- 
 
ration or company doing a fidelity insurance busi- 
 
ness in this State, shall become surety on any of the 
 
bonds or obligations mentioned in this Act, such cor- 
 
p'oration or company shall be subject to be sued on 
 
such bonds or obligations in the county of the resi- 
 
dence 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 insur- 
 
ance companies doing business in this .State; provid- 
 
ed, 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 busi- 
 
 INSURANCE LAWS 
 
31 
 
ness in this State, shall begin a suit in the United 
States Court, or remove, or cause to be removed, any suit thereto. . 
 
Sec. 5. Be it further enacted, That all laws and 
 
parts of laws in conflict with this Act be, and the 
 
same are, hereby repealed. 
 
. 
 
Approved October 21, 1887. 
 
 32 
 
INSURANCE LAWS 
 
TAXATION. 
 
Basis and Rate-Return and Collection. 
 
Tax of one per cent. on 
 
Tax Act of 1887-All home and foreign .insurance 
 
j:a'emiums. companies doing business in this State, shall pay one 
 
per cent. on all. premiums in money, or otherwiset 
 
received by them. 
 
~829. Payments must be made in the funds in 
 
Pavment- which taxes may be paid at the State Treasury, free hoW made. ,of any expense to the State. 
 
~879. If any corporation, company, person1 
 
Ins. Com'r. t 1 agency or institution, who are required to make their 
 
1ssue fi. fa. aginst delin 
 
return to the Insurance Commissioner, shall fail to 
 
quent cOJporations. 
 
ret"rn the taxable property or specifics, or pay an- 
 
nually the taxes for which they are liable to the State 
 
Treasurer, the Insurance Commissioner shall issue 
 
against them an execution for the amount of taxes 
 
due, according to law, together with the costs and 
 
penalties. 
 
 
 
Default tax 0'1 ~882. The penalty or default tax on foreign in- 
lofporations. surance companies shall be five hundred dollars. 
 
\Vhere no return, Ins. Oorn'r. to Hssess . 
 
~884. . When there is no return by which to assess the tax, the Insurance Commissioner shall, from the best information he can procure, assess in his discre- 
 
tion. 
 
~885. The execution issued by the Insurance Com- 
 
li'i. fa. againc;t 2 company- 
 
missioner against any company shall be directed to 
 
how directed. all and singular the sheriffs and other lawful officers 
 
of the State, with directions to levy the same on th~ 
 
property of the corporation or company, with pow- 
 
er to issue and serve garnishment upon the debtors 
 
of the corporation. 
 
Fi. fa. vs. 
 
~886. The executions against agents of foreign 
 
agents of for eign com- 
 
institutions, as aforesaid, shall be against the _prin- 
 
panies. 
 
cipal agent or his successor, and shall authorize the 
 
officer to levy on all the property of the agency, to 
 
seize its money, notes or other effects. 
 
~2850. Insurance companies shall pay damages 
 
when. [The several insurance companies of .this 
 
 INSURAN QE LAWS 
 
33 
 
State and foreig~ insurance companies doing b~si 
ness in this State, in all cases when a loss occurs, and they refuse to pay the same 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 t o the loss, not more than twenty-five per cent. on the liabilities 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.] 
 
 34 
 
lNSURAN CE LAws 
 
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 be, and the same is, bereby amended by adding 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 as follows, to-wit: vVl..1enever 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 company 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, or the contract was made, out of which said cause of action arose. 
 
 INSURANCE LA"WS 
 
35 
 
. AN ACT 
 
-To prescribe the manner and mode of making returns by Insurance Companies, and for other purposes. 
 
Section 1. Be it enacted by the General Assembly Returns of 
 
of the State first of May, 
 
0 f 1 88 
 
Ge 
0 
,e,, 
 
orgl.a, m sura 
 
T nc 
 
h e 
 
at co 
 
f rom mpan 
 
an i. es 
 
d d 
 
oam. f tge 
 
r b 
 
t u 
 
}sl1.e- 
 
ptarxenatuiuomn s mfonrst gJVe name of agent. 
 
ness in this State, in making their returns to the 
 
Comptroller-General for purpose"of taxation, shall 
 
give the name of each agent acting for such company, 
 
and post-office address of the 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 unp aid 
 
by agencies. 
 
Sec. 2. Be it further enacted by the authority 
 
aforesaid, 
 
Th at the 
 
returns 
 
prov1. ded 
 
for 
 
m . 
 
the 
 
pre- 
 
Retnrns must be made by 
 
ceding secti.On shall be made by the pres1. ~ent or some 
 
.Tuly 1st, tax paid. 
 
and 
 
other duly authorized offi cer of the company, duly 
 
sworn to, and shall be forwarded to the Comptroller- 
 
General on or before July 1st of each year; and at 
 
time ofmaking such returns tbe amount of tax due by 
 
said company upon premium receipts or othe:rwise 
 
shall be forwarded to the Treasurer of this State. 
 
Sec. :3. Be it further enacted by the authority Returns mace 
 
aforesaid That the returns hereinbefore required to from May 1st be made 'to the Comptroller-General shall embrace to Apnl 30th. 
 
the period of time commencing May 1st and ending 
 
with April 30tll next preceding the date of the return Company must 
 
notify Comp.- 
 
made, and companies making the same must notify Gen. of name 
 
the 
 
Comptroller-General 
 
or 
 
officer 
 
or 
 
agent 
 
in 
 
this 
 
of attorney against whom 
 
St~te 
 
against 
 
whom 
 
legal 
 
process 
 
shall 
 
issue 
 
in 
 
case 
 
process . must issue. 
 
it becomes necessary for the Comptrolier to issue 
fi. fa. against said companies for any violation of the 
 
laws in this State governing insurance companies, or 
 
for the non-payment of taxes due by them. 
 
 36 
 
I NSURANCE LAws 
 
Sec. 4. Be it further enacted by the authority aforesaid, That all laws and parts of laws in conflict with this Act be, and the same are, hereby repealed. 
 
- 
 
 INSURANCE LAws 
 
37 
 
AN ACT 
 
To amend the third paragraph of section 9 of an Act 
 
entitled an Act to regulate the business of insur- 
 
.. 
 
ance in this State, approved October 24, 1887, and 
 
for other purposes. 
 
Section 1. Be it enacted by the General Assembly Par. 3 of sec. 9 
 
of Georgia, and it is hereby enacted by the authority amended. 
 
of the same, That the third paragraph of section 9 
 
of an Act entitled a:n Act to regulate the business of 
 
insurance in this State, approved October 24, 1887, 
 
be, and the same is, hereby amended by inserting in 
 
the third line of said paragraph, after the word ''ad- 
 
justers,'' the words ''or inspectors,'' arid to add at 
 
the close of said paragraph the following words: 
 
"provided jurthe1, that it shall not be lawful for the 
 
said inspectors to solicit business for their com- 
 
panies,'' so that, thus amended, said paragraph shaH 
 
read as follows: 
 
''Any person who shall do any of the acts men- Paragraph as 
 
tioned in this section shall also be personally liable amended. 
 
to the holder of any policy of insurance, in respect 
 
of which such act was done, for any loss covered by 
 
the same; provided, that the penalties provided for 
 
in this section' shall not apply to adjusters or inspec- 
 
tors of unauthorized insurance companies from 
 
whom the eitizens of this State have purchased in- 
 
surance for themselves as provided for in this sec- 
 
tion, whenever the person or persons purchasing said 
 
insurance shall immediately notify the Insurance 
 
Commissioner, giving the name and locality of said 
 
company in which they have policies;and at the same 
 
 
 
time pay to said Insurance Commissioner the same 
 
licenses, fees and taxes for each company as are now 
 
or may hereafter be required of fire insurance com- 
 
panies 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 insurance from said 
 
 38 
 
I NSURANCE LAW S 
 
company, then, in that case, any person or persons purchasing insurance from said company thereafter 'Shall not be Jiable for the license fees of said company _ d~ring the said year, but only for such taxes on premiums as may be. required from tjme to time of insurance companies authorized to do business in this State; provided, ftwther , that it shall not be lawful for said inspectors to solicit business for their companies.'' 
Sec. 2: Be it further enacted by the authority aforesaid, That aJl Jaws and parts of laws in conflict with this Act be, and the same ar_e, hereby repealed. 
Approved December 23, 1890. 
 
 INSURANCE . LAws . 
 
39 
 
AN AQT 
 
To prevent combinat<ions or pools of insurance companies or the.ir agents, ~endi:p.g to. defeat or .lessen competition m the busmess of msurance m the 
State of Georgia. 
 
Section 1. Be it enacted by the General Assembly ~o~~~~;1i~s ~~~ of the State of Georgia, and it is hereby enacted by ~~er;;,;i~~al::ake 
 
authority of the same, That from and after the pas- ~~~~~t~~ c~~: 
 
sage-of this Act it shall be unlawful for any insurance petition. 
 
company or companies, authorized to do business in 
 
this State, or th~ agent or agents thereof to make, 
 
maintain or enter into any contract, agreement, pool; 
 
or other arrangement, with any !other insurance com- 
 
pany, or companies, licensed to do business in this 
 
State, or the agent or. agents thereof, fo,r the purpose 
 
of, or that may have the tendency or effect of, pre- 
 
venting or lessening competition in the business of 
 
insurance transacted in this State. And when it 
 
shall be niade to appear to the Commissioner of In- 
 
surance, that any company or companies, agent or 
 
agents, have entered into any such contract, agree- 
 
ment, pool or other arrangement, thereupon said 
 
Commissioner shall revoke the license issued to such Revocation or 
 
company or companies, and the same shall not be .re- license. 
 
issued, until the president or chief officer of such 
 
company or companies shall file an affidavit with said 
 
Commissioner stating that such contracts, agree- 
 
ments, pools, or other arrangements, have been an- 
 
nulled and made void; provided, that nothing in this 
 
Act shall be so construed as to prevent any insurance 
 
company, legally authorized to transact business in . . thl.S Stat e, f rom separat ely survey1.ng, 1. nspect1' ng or Sspuervcteiyosn,s,m-etc. 
 
examining the premises to be insured by .and with 
 
' 
 
the consent of the owner, for the purpose of bringing 
 
about improvements in fire protection, so as to lessen 
 
the cost of insurance by reducing rates. 
 
Sec. 2. Be it further enacted by the authority Complaint by aforesaid, 'l'hat any citizen of this State (whose rates citizens. . 
 
 40 
 
. INSURANCE LAws 
 
Citation to company complain ed against. 
 
of insurance have been increased, or who has been refused insurance at reasonable rates) shall have the rig-ht to :file a written complaint, under oath, to the best of his knowledge and belief, with the Insurance Commissioner, charg-ing any company or companies authorized to do business in this State with a violation of the preceding- sections of this Act, and that thereupon it shall be the duty of the. said Insurance Commissioner to issue a citation addressed to the company or companies ag-ainst whom said complaint is made, r~quiring- it or them to be and appear before said Insurance Commissioner at a specified time and place to be :fixed by said Insurance Commissioner, not less than twenty nor more than forty days from the date of the :filing- of such complaint, and show cause why its or their license or licenses should not be revoked as pro'vided by the first section thereof; and it is furth er p1ovided, that said citation shall be served not less than ten days from the date of :filing- said complaint by the sheriffs or constables of said State, in the same manner as provided by law for the service of process upon insurance companies. 
 
Practice as to Sec. 3. Be it further enacted by the authority testimony, etc. aforesaid, That for the purposes of the provision of 
this Act, the Insurance Commissioner shall have power to administer oaths, issue subpoenas for witnesses, hear testimony, issue commissions for taking- testimony by interrog-atories, and the party or parties complaining, and the company or companies defending- shall have the right to serve notice for the production of books and papers; and all to be done under the same rules as now provided by law for civil action in the Superior Court. 
 
F(1r(lm. 
 
The county in which Insurance Commissioner shall 
 
fix the hearing- shall be, as to this Act, the loci fontm 
 
Fees. 
 
of said hearing or trial. The costs and fees for the 
 
sheriff or constable, witnesses, and the commissioners 
 
taking- interrogatories, shall be the same as now pro- 
 
vided by law for similar service in the Superior 
 
 INSURANCE L Aws 
 
41 
 
Courts of this State, the same to be taxed against and paid by the pa~ty or parties cast in .said suit, and against whom said Insurance Commissioner shall find. for which costs said Insurance Commissioner is her~by authorized to issue executions, the same to be levied and collected as executions from the courts of this State. 
Sec. 4. Be it further enacted by the authority aforesaid, That all laws and parts of laws in conflict with this Act be, and the same are, hereby repealed. 
Approved October 21, 1891. 
 
) 
 
 42 
 
INSURANCE LAws 
 
METHOD OF INCORPORATING INSURANCE COMPANIES. 
 
No. 301. 
 
A bill to be entitled an Act to carry into effect arti- 
 
cle 3, section 7, paragraph 18, of the Constitution: 
 
of the State, as amended, in so far as the same re- 
 
lates to the issuing and granting corporate powers. 
 
and privileges t o insurance comp'anies by the Sec- 
 
retary of State, to define the powers and liabilities 
 
of such companies, to regulate the same, and for 
 
other purposes. 
 
 
 
Section 1. Be it enacted by the General Assembly of the State of Georgia, and it is hereby enacted by the authority of the same, That from and after the passage of this Act all corporate powers and privi.leges to insurance companies in this State, shall be issued and granted by the Secretary of State, upon the terms, liabilities, r estrictions and subject to all the provisions of this Act and the laws and Constitution of this State. If from any cause the Secretary of State should be disqualified f'rom issuing and granting said powers to any insurance company, then in that case the duties required by this Act to be performed by the Secretary of State shall be done and performed by the Comptroller-General of this State. 
Sec. 2. Be it f urther enacted, That any number of persons not less than five may form a company, but before r eceiving a certificate of incorporation under this Act, shall first file a petition in writing, addressed to the Secretary of State, in which petition shall be stated the name and residence of each of the persons desiring to form said corporation; the name of the insurance company they desire to have incorpon1ted; the kind or kinds of insurance they propose to car.ry out; the amount of the proposed capital stock of said company; the number of shares of the capital stock each of the petitioners agrees to take; 
 
 .. 
 
INSURANCE LAWS 
 
43 
 
that they do in good faith intend to go forward with-. out delay to raise the capital stock and organize said company; a r equest to be incorporated under the laws of the State; that they have given thirty days' notice of their intention to apply for said charter by . the publication of said petition in the newspaper publishing the legal advertisements of the county where the principal office of said company is to be located, once a week fo r four weeks befoTe the filing of said petition. There shall be annexed to said petition. an affidavit made by at least two of the persons formmg said company, that the names subscribed are the genuine signatures of the persons named therein; and  that the facts stated in the petition are true. Said petition thus sw;orn to shall be filed in the office of the Secretary of State, who shall indorse thereon the date of the filing and record the same in a book to be kept by him for that purpose. 
Sec. 3. Be it further enacted, That when said pe~ tition has been filed in the office of .Secretary of State, he shall issue to said company, under the great seal of the State, the following form of certificate, to-wit: To all to whom these presents may come, gr'eeting: I1Jereas, In pursuance of an Act of the General Assembly of the State of Georgia, approved - - - , 18- , and (naming the person who signed the petition) having filed in the office of Secretary of State a certain petition seeking the formation of a corporation to be known as (insert name), with a capital stock of$----,--, for the purpose of organizing and running (kind or kinds) insurance company, and have complied with the statutes in such cases made and provided; therefore, the State of Georgia . hereby grants unto the above named persons, their successors and assigns, full authority by and under the same name of (insert name), to exercise the powers and privileges of a corporation for the purpose  above stated, subject to the provision of the Constitution of this State, and all laws, rules, and regula- 
 
 44 
 
INSURANCE LAWS 
 
tions governing insurance companies of force at the date of this certificate, or that may hereafter become of force either by constitutional or statute laws, or by any rules or regulations of the Insurance Commissioner of this State, or otherwise, wh;ich govern insurance companies in this State. In witness whereof, these presents have been signed by the Secretary of State (or, when he is disqualified by the Comptroller-General), and to which is annexed the great seal of the State at Atlanta, Georgia, this--- day of--, 18-. Thereafter the persons who signed said petition, and all persons who shall become stockholders in 8aid company, shall be a corporation by the Iiame specified in said petition and certificate, and shall possess the powers and privileges and 'be subject to the provision contained in this Act. Be-  fore the Secretary, or when disqualified, the Comptroller-General, shall issue said certificate, the petitioners shall pay to the Treasurer of the State a fee of one hundred dollars. 
Sec. 4. Be it further enacted, That any certificate or a duplicate thereof, issued under this Act, shall be prima facie evidence of the existence of such corporation in all couits and places in this State; that when such certificate has been issued, the persons named therein, in case they have not taken the whole capital stock, may open books of subscription to fill up the capital stock of the company in such places, and after giying such notice as they may deem expedient, they may from time to time receive subscriptions until the whole capitat stock is subscribed. The capital stock of said company shall be divided into shares of one hundred dollars each, and shaH not be less than one hundred thousand dollars for each class of insurance to be engaged in; and no insurance company charter under this Act shall commence the insurance bU3iness until at least this amount for each class of insurance to be engaged in is paid in cash, or invested in bonds of the United States, of this: 
 
 / 
 
INSURANCE LAWS 
 
45 
 
State, or the cities or counties ?f this State, e~timated at their cash market. valu~, this amount, or m mo.rtgages in rea] estate m twice. the. amount- for whiCh the same is mortgaged - which mvestment must be approved by the Secretary of State, or, when he is disqualified, by the Comptroller-General. When bonds of the cities or counties of this State are invested in, the Secretary of State, or . ComptrollerGeneral, as the case may be, shall require an opinion from the Attorney-General of the State that the bonds are good, legal, and valid bonds before ap- 
proving the investment. 
Sec. 5. Be it further enacted, That when the amount of the capital stock has been subscribed, the persons named in said certificate of incorporation are authorized to call a meeting of the stockholders for the purpose of organization, of which meeting every subscribing stockholder shaJl have ten days notice personally, or by depositing said notice in the postoffice, postage paid, directed to him at the postoffice nearest his usual place of residence. At said meetjng there shall be elected a Board of Directors of not less than five or more than fifteen, to m;=mage the affairs of said company, said directors to be chosen by a majority vote of the stockholders, each share of  stock being entitled to one vote; said election to be governed by such by-laws as said company may prescribe, the persons elected as directors to continue in .office unW others are elected to fill their places.  No person shall. be elected a director unless he be a stockholder, owning stock jn his own name or as trustee or personal representative, and who is qualified to vote at the election at which he is chosen. If for any reason the election is not held at the time appointed, tbe same may be held at any time thereafter on a notice to all stockholders of t~n days ; but at any meeting of the stockholders or their legal representatives, the notice may be waived and an election held at once. The djrectors, when elected, shall 
 
 46 
 
INSURAN CE LAWS 
 
elect from their number a President, Vice-President or Vice-Presidents, Secretary and- Treasurer, and such other officers and agents as they may deem necessary. The regular elections for directors shall be annually, at such time and place as may be prescribed by the by-laws of said company. All meetings of directorli. of said company shall be held in this State. A majority of said directors shaH be bona fid e residents of Georgia. 
 
Sec. 6. Be it further enacted, That said insurance company shall not begin business until at least one hundred thousand dollars of the capital stock has been paid in; that the directors may require the subscribers to the capital stock to pay the amounts variously subscribed by them in such installments as they may deem proper, which sums they may lend, as provided for elsewhere in this Act, until the company is ready to engage regularly in its business. If any subscriber shall neglect to pay any installment, as required by resolution of the Board of Directors, the said board shall declare his stock forfeited, as well as all previous payments thereon, to the use of the company; but they shall not so declare it forfeited until they have served a notice in writing on him personally, or by depositing said notice in the post-office, postage paid, directed to him at the post-office nearest his usual place of residence, stating he is required to make such payment at the time and place expressed in such notice, and if he fails .to make the same, his stock and all previous payments thereon will be forfeited for the use of the company, which notice niust be served at least sixty days previous to the day on which such payment is required to  be made. 
 
Sec. 7. Be it further enacted by the authority aforesaid, That the stock in said insurance company shall be deemed personal and shall he transferable in the manner prescribed by the by-laws of the com- 
 
 INSURANCE . LAWS 
 
47 
 
anY; and no share shall be transferable unt_il ~ll ~revious calls there.on shall. have been fully pmd m. 
 
' 
 
I 
 
Sec. 8. Be it further enacted, 'rhat all the powers and privileges and said certificate of incorporat~on 
 
of said insurance company shall cease and determme 
 
at the expiration of two years from the date of said 
 
certificate, if at the expiration of said two y ears, said 
 
company has not organized and commenced business. 
 
The rights, powers, and privileges granted said cor- 
 
poration shall not continl!-e for a longer period than. fifty years, unless the same be continued by tl~e laws 
 
of for ce at the expiration of said fifty years. 
 
Sec. 9. Be it further enacted, That every life in- 
 
surance company incorporated under this law shall 
 
have the power to insure the lives of all 'persons who 
 
apply for insurance therein, stand the necessary ex- 
 
aminations, and comply with such laws as may here- 
 
after be enacted, and with such reasonable require- 
 
ments as the directors of such company may estab~ 
 
!ish; and to make any and every insurance appertain- 
 
ing to or connected with' life r isks. 
 
. 
 
Sec. 10. Be it further enacted, '_['hat any fire insurance companies incorporated under this law shaH have authority to insure against any loss by fire on all kinds of property, either real, personal or mixed; also against all the hazar ds of the ocean or inland navigation, and transportation of every kind, and is hereby granted the power, rights and privileges to insure any and all classes of property that is now allowed to be insured by any ot the laws of this State, or that may hereafter be allowed to be insured by any of the laws of this State, and may do any and all things that ar e necessary for ,the purpose of carrying on a fire insurance company, not in Qonflict with the laws of this State or of the United States. ' 
 
Sec. 11. Be it further enacted, That accident insurance companies chartered under this Act shall 
 
 48 
 
INSURANCE LAWS 
 
have authority to insure persons against accident loss of life, or personal injury; to provide a weekl; indemnity to its members in case of accident, and shall have all the usual qnd ordinary powers incident under the law and custom of accident insurance whi'ch are not in conflict with the C onstituti~n and laws of this State and the United States. 
Sec. 12. Be it further enacted, That live stock insurance companies, organized under this law, shall have the right and power to insure against loss arising from the death of or injury to domestic animals, and shall have all the usual and ordinary powers incident to the live-stock insurance business, which are not in conflict with the laws and Constitution of this State or of the United States. 
Sec. 13. Be it further enacted, That contracts for insurance to be entered into by companies organized under this Act shall not be binding unless evidenced by a policy of insurance in writing or print, or both; and the liability of said company, in case of loss sus- , tained by any policy-holder, sh!lll be governed by the terms, stipulations, and conditions appearing upon the face of the policy. No policy or other contract of said corporation shall be binding except it be signed by the President or Vice-President and Secretary or Assistant Secretary of the company. 
Sec. 14. Be it further enacted, That the Board of Directors of any company organized under this law may declare dividends out of the earnings of said corporation; pro1.'ided, no dividend shall be declared until the earnings are sufficient to pay the same, after deducting all expenses and losses, and after providing for such reserve as may be provided for by law. 
Sec. 15. . Be it further enacted, That corporations formed under this law are hereby empowered to issue stock dividends in lieu of money dividends; provided, that the Board of Directors shall decide to 
 
 lNSlJHANCE LAWS 
 
49 
 
do so, and thereb~ . a~d to the caJ?ital stock not ~o exceed the highest hm1ts of the cap1tal stock of the1r 
charter. 
. Sec. 16. Be it further enacted, That the Board of Directors of any company organized under this law may, after providing .fo~ such res~rve as may be required by law, .by a maJonty vote giVe t~e hold~rs of policies of smd company, on any particular hne or class of insurance, the right to participate in the net profits of such company to such an extent, in such manner, and upon such terms as the Board of Directors may agree, the same to be plainly stipulated on the face of the policy; and unless it be stipulated on the face of the policy that the policy-holder has the right to participate, it shall not be lawful for any policy-hoJder to participate therein in any of the profits of such company. If the incorporators of any stock company see proper they may embraQe this principle in their charter, stating therein the average amount of dividends the stockholders shall receive on the face value of their stock, in which case all net profits above this dividend and the reserve shall be paid as a dividend to all the policy-holders. 
 
Sec. 17. Be it further enacted, That every corporation organized under this Act shall have authority to invest its money in and make loans on any bonds of this State, or the United States, or of the cities or counties of this State, and to make loans on real estate in this State to one-half the value thereof. 
 
Sec. 18. Any company organized under this Act may own for its own use, as a permanent investment, a building for the transaction of its business in the city where the principal office is located or at any place where it may have a bianch office or agency, and may seH and dispose of the same at pleasure. It may also buy, own, and sell any realty that may 
 
 50 
 
INSURANCE L.A:ws 
 
be necessary for the protection of any loan it may make. 
Sec. 19. Be it further enacted, That any company organized under this Act shall have the right to reinsure any or all its risks; and every company incorporated under this Act shall provide for such reserve as may be required by law.  
. Sec. 20. Be it furth er enacted, That stockholders in corporations organized under this Act shall be individually liable to the extent of his or her unpaid subscription to the capital stock, and for no greater amount. 
Sec. 21. Be it further enacted, That the preceding sections of this Act, in so far as they are applicable, be applied to the formation of mutual or cooperative fire, life, or accident insurance companies, but applicants for this class of insurance shall not be required in their petition to set out the amount of the proposed capital stock or the number of shares of the same; nor shall it be necessary for the Secretary of State to incorporate in his certificate of incorporation any reference to the capital stock of said company. 
Sec..22. Be it further enacted, That all laws and parts of laws in conflict with this Act be, and the same are, hereby repealed. 
Approved December 18, 1893. 
 
 INSURAN CE L Aws 
 
51 . 
 
INSURANCE COMPANIES TO PAY FUL,L 
AMOUNrr OF LOSS UP .TO AMOUNT 
STATED I N POLI CY. 
No. 15. 
An Act to compel insurance companies to pay the full amount of loss sustained upon property covered by policies of insurance up to the amount expressed in the policies, notwithstanding any stipulations in such policies to the contrary. 
Section 1. Be it enacted by the General Assembly of the State of Georgia, and by authority of the same, That from and after the passage of this Act all insurance companies issuing policies on property in this State shall pay to their policy-holders the full amount of loss sustained upon the property insured by them; provided, said amount of loss does not exc~ed the amount of insurance expressed in the policy,  and that all stipulations in such policies to the contrary shall be null and void; provided, that in cases of losses on stocks of goods and merchandise and other species of personal property changing in specifics and quantity by the usual custom of trade only" the actual :ralue of the property, at the time of loss may be recovered; provided, the loss does not exceed the amount expressed in the policy. 
Sec. 2. Be it enacted by the authority aforesaid, That all laws and parts of laws in conflict with this . Act be, and are, hereby repealed. 
Approved November 23, 1895. 
 
,. 
 
 52 
 
INSURANCE LAWS 
 
GUARANTEE, l1JTC., COMPANIES MAY BE. 
COME SUHETY ON BONDS CITY, COUN- 
TY AND STATE OFFICERS. 
' 
An Act to authorize solvent Guarantee Companies Surety Companies, Fidelity Insurance Companies' and Fidelity and Deposit Companies to becom~ surety upon attachment bonds and upon the bonds of city, county and State officers, and providing remedies against such bonds, 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, solvent Guarantee Companies, Surety Companies, Fidelity Insurance Companies, ancl ' Fidelity and Deposit Companies incorporated and organized under the laws of this State or any other State of the United States for the purpose of transacting business of fidelity insurance, which have a paid-up capital of $250,000, and which shall have 
complied with all of the requirements of law as to 
license required by the State, may, upon proof thereof and upon production of evidence of solvency, be accepted upon the bonds of all city, county and State officers of this State, and the ous officers of this State whose duty it is to nn-..nT... the sureties upon such bonds are hereby a to accept such company or companies as -one of the sureties or the only surety upon such bonds as solvency of such company may warrant; provided, company shall be relieved of its liability upon such bond by reason of the fact that the books accounts of the principal have been examined approved as correct by the /proper authorities in fact there has been a breach of said bond and a accruing from such breach. 
Sec. 2. Be it further enacted, That such companies may be taken as the sole surety upon all 
 
 INSURANCE LAWS 
 
53. 
 
~::et 
 
bonds, whether such real estate in this St 
 
companies ate. 
 
have 
 
or 
 
do 
 
n ot 
 
Sec. 3. Be it further enacted, That in case of  
 
default upon any bon~ upon which such compani~s 
 
~:es 
 
sureties, then shall have all 
 
tthhe~ 
 
e1ty, coun remedies 
 
ty and State authonagainst the PI_'incipal 
 
and sureties upon s~1d bond.s as are now .prov1ded by 
law, including the nght to 1~sue fi. fas . m stanter, as 
 
now provided by l::w. Be .1t further enacted, Th::t 
 
all companies herem descnbed, cha;tered by th1s 
 
State or other States or foreign governments, now 
 
doing business in thisSt ate or hereafter doing busi- 
 
ness in this .State, which offers or undertakes to 
 
become security upon any bond required by law of 
 
cit,, county and State officers before being accepted 
 
as "surety thereon, shall be required to deposit with 
 
tbe Treasurer of this State bonds of the United 
 
States, or bonds of this State, which, according to the 
 
Acts and resolutions of the General Assembly, are 
 
valid, and which amoui1t, according to their face 
 
value, to twenty-five thousand dollars, which bonds 
 
shall be receipted for by the State Treasurer, and 
 
especially deposited by him in tbe vaults of the Treas- 
 
ury. And wl!enever such company ceases to do busi- 
 
ness in this State, and has settled up all claims 
 
against it, as hereinafter provided, and have been 
 
rel eased from all the bonds upon which they have 
 
been taken, said bonds shall be delivered up to the 
 
proper party on presentation of the 'l'reasurer 's re- 
 
ceipt. Whi le said bonds are so deposited, the owner 
 
of the same shall -subject to the notices provided 
 
for or given-be entitled to collect the coupons and 
 
use them. For the bonds so deposited the f aith of 
 
the State is pledged that they shall be returned to the 
 
parties entitl ed to receive them, or disposed of as 
 
hereinafter provided.  
 
. That whenever any loss i~smed against occurs, the 
 
nInostu1. creedto, 
 
in order the State 
 
to secure his Treasur ~r of 
 
recovery ' 
 
matr J 
 
the pendency of 
 
O'ive 
0 
said 
 
 I' 
 
54 
 
INSURANCE LAWS 
 
loss arid of the amount claimed, after which time State Treasurer shall be b?und to retain, subject 
a . the order of the court trymg any suit that may 
'brought for the recovery of such los ' 
amount to pay the judgment in said case, in the of recovery. When suit is ended, and the ascertained for which said party sued may be is not ~aid_ in te~ days,. then said plaintiff may an apphcahon w1th the Judge of the Superior of the county where the case was tried, for a er to take charge of so many bonds as shall be sary to satisfy the aforesaid judgment. 
\iVhen the said receiver is appointed by the who shall always require bond and security of for the faithful performance of his duty, said Treasurer, on his application, shall deliver to bonds sufficient in their market value, if in his tody, to satisfy said judgment. 
Said receiver's receipt shall be a complete charge to said treasurer and the State of Then said receiver shall apply to the judge of Superior Court for an order of sale, and in nn ..a . ance of said order sell said bonds. After ded""'~'~""" such expenses and commissions as shal1 be al by said j1Jdge, he shall pay to the plaintiff or attorney a sufficient amount to satisfy the said  ment, and if there remains any residue in the of such receiver, he shall pay over the same to agent of the company, taking his receipt for the which shall be filed and recorded with the papers in the case. 
If there are conflicting claims, then the Treasurer shall deliver over to the receivers, in order of their application, the aforesaid bonds, and there is any contest between creditors which """''u"'"' be settled in this mode, then the party not sufficient bonds through the receiver appointed 
his behalf, may become a party to the other case, and 
make known his claim to the other receiver by ing affidavit of the claim and filing the same with 
 
 INSURANCE LAws 
 
55 
 
d then the receiver shall report such claim to the ~ndoe of the Superior Court appointing him, who 
JshUaDby order .provide for a bill of interpleader, as 
n cases in eqmty. 1 Wilen any company desires to withdraw from the 
 
State and will satisfy the Insurance Commissioner that 'an suits. pending again~t such party, and of 
 
which no notice has been giVen, have been fully 
 
satisfied, or whenever no notice of claim has been 
 
given, and when such companies have qeen released 
 
from all bonds theretofore given by them, then the 
 
said Treasurer shall return to said party the bonds. 
 
so deposited upon order from the said Insurance 
 
Commissioner . 
 
. 
 
vVhenever, by means of the provisions of this. 
 
Act, the amount of bonds so deposited are reduced, 
 
 said 'rreasurer shall at once notify the Insurance 
 
Commissioner in writing, who will give notice to 
 
the company depositing, and require more bonds to 
 
be deposited, so as to always maintain the original 
 
amount, and if the company so notified by the Insur- 
 
ance Commissioner fails to com ply within thirty days, the right of the company to do bus~ness in the 
 
State shall be revoked, and said Insurance Commis- 
 
sioner shall, at the same time, give notice by publica- 
 
tion in a n ewspaper published at the capital of the 
 
fact of such failure and revocation of license, and 
 
shall mail a written or printed notice to the. several 
 
ordinaries of this State, the cost of which publication 
 
shall be paid by the company failing to comply with 
 
the provisions of this Act, and when any company 
 
having made the deposit required by this Act has 
 
assmned any liability by suretyship or otherwise, on 
 
which no losses have accrued, and which company 
 
wishesto withdraw its deposits, before being allowed 
 
to do so, said company shall have itself released 
 
from such obligation, whether suretyship or other- 
 
wise, and give  notice of its intention to withdraw 
 
from this State and of the fact it has satisfied all loss- 
 
es arid claims against it, and has been released from 
 
 \ 56 
 
INSURANCE LAWS 
 
all obligations assumed by it, whi?h notice shall be 
published in a newspaper to be designated by the Insurance Gommissioner of the State, and at the  pense of said company; and it is hereby that any claims of the citizens of this State must, whether for losses accrued or upon obligations thereinbefore assumed by said company (where no losses h ave accrued), be fully settled before said deposits shall be withdrawn. 
Sec. 4. Be it further enacted, That all laws and parts of laws in conflict with this Act be, and the same are, hereby repealed. 
Approved December 24, 1896. 
 
 INEflJR.ANCE LAws 
 
57 
 
. MAKING CERT.A:IN BUSINESS UNLAWFUL. 
 
An Act making it unlawful for Fire Insurance Com- 
 
panies not incorporated by the laws of the State 
 
of Georgia, but legally licensed to transact the 
 
business of fire insurance therein, and doing busi- 
 
ness ther ein through regularly commissioned and 
 
licensed agents, to place or cause to be placed 
 
insurance against loss by fire on property in this 
 
State except through agents located in the State 
 
leoa1ly authorized and licensed to write policies of in~ur~nce therein, and prescribing penalties for 
 
violation of sai11e; also, to prescribe further condi- 
 
tions to be complied with by Fire Insurance Com- 
 
panies before receiving licenses to do business in 
 
this State. 
 
 
 
Section 1. Be it enacted by the General Assembly of the State of Georgia, and it is hereby enacted by authority of the same, That Fire Insurance Companies not incorporated by the laws of the State of Georgia, but legally authorized to do business in this State through regularly commissioned and licensed agents located in this State, shall not make contracts of fire insurance on property herein, save through agents of such companies regularly commissioned and lieensed to write policies of fire insurance in Georgia; provided, however, that this act shall not apply to property of railroad companies and other common carrieJ.s. 
 
Sec. 2. Be it further enacted, That before issuing certificate of license to any Fire Ins}lrance Company to transact the business of fire insurance in this  State, the Insurance Commissioner shall require in any case, in addition to requirements already provid-ed for by law, that each and every such Fire Insurance Company shall file with him the affidavit of its president or other chief officer that it has not violated any of the provisions of this Act for the space of twelve months last past, and that they accept the 
 
 58 
 
INSURANCE LAWS 
 
terms and obligations of this A-ct as consideration of their license. 
Sec. 3. Be it further enacted, That complaint being :filed by any citizen of this State that any company authorized to do business in this State has violated any of the provisions of this Act, the Comp. troller-General shall diligently investigate the matter, and if necessary examine by himself or his accredited representative at the head offices located in the United States of America, and also such other offices or agents of such companies as may be deemed proper, all books, records, and papers of the same, and also the officers thereof under oath as to such alleged violation or violations; p1ovided, that before making such examinations the Comptroller-General shall require the party or parties making complaint to :file with him a good and sufficient bond to cover any expenses or cost that may be necessary in making such examination, and in the event that the insurance company be found not guilty of a violation of this Act, then said bond shall be responsible for all the expense incurred by reason of said investigation. But should said company be found guilty of a vi:olation of this Act, then said company shall be responsible for the expense thereof. 
Sec. 4. Be it further enacted, That any :fire ins_urance company violating any provision of this Act, or refusing to submit to the aforesaid examination when requested, shall forfeit their right to do business in this State for the next twelve (12) months thereafter, and the Insurance Commissioner shall immediately revoke the license already issued to said :fire insurance company to do business in this State. 
Sec. 5. Be it further enacted, That if any such company shall fail or refuse to pay such expenses of examination upon the presentation of a bill therefor by the Comptroller-General, that the said Comp- 
troller-General may issue his fi. fa. against such com- 
 
 INSURANCE LAws 
 
59 
 
anY therefor, to be collected out of the property of paid companye or its deposit with the State Treas~rer in the same manner as judgments against insura~ce companies not chartered by this State but doing business herein, and collected. If any com- 
panY disputes the amount of such bill and fi . fa. it 
rnaY contest s~ch an:ount and its liability therefor by affidavit of 1llegahty returnable to the Super1ior Court of Fulton county in the same manner as Comptroller-General's executious for railroad county taxes can be contested. 
Sec. 6. Be it further enacted, That this Act shall go into effect a~ soon 3:s approve?, and all laws and parts of laws m conflict therewith are hereby re- 
pealed. 
Approved December 24, 1896. 
 
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INSURANCE LAWS 
 
AN ACT 
 
Requiring corporations doing Life Itsurance ness in the State of Georgia, upon the a1j:ses,srrlell plan, to print on all their policies, or benefit cates, the words ''This contract is issued upon assessment plan,'' and also to print the '' assessment plan'' upon every application, lar, card, advertisement, and other printed ments. 
Section 1. Be it enacted by the GeneralA8iSeJillbll of 'Georgia, That frwn and after the passage of Act, every policy or certificate issued to a resident the State of Georgia by any corporation trau"'a\aUUI therein the business of life insurance upon the ment plan, or admitted into this State under assessment laws of Georgia, shall print in bold (in red ink) in every policy, or certificate, uISuectupon the life or lives of the citizens of Georgia, ing one of the principal lines near the top thereof words ''Issued upon the assessment plan,'' and words ''assessment plan'' shall be printed ''"'""'T'""L ously (in red ink) in or upon every application, cular, card, advertisement and other printed ments issued, circulated or caused to be circulated, by such corporation within the State. 
Sec. 2. Be it further enacted, That if any such corporation, or association, shall at any time fail or refuse to comply with the foregoing provisions section 1 of this Act, the Insurance Commissioner shall forthwith suspend or revoke all authority to such corporation or association and all its agt;lnts to do business in this State, and shall publish such revocation in some newspaper published in this State. Amended Noven:lber 5, 1901, by adding the following proviso: Provided, that said Act shall apply only to such corporations or associations as shall write or issue policies or certificates on the post mortem assessment plan, and shall not apply to such corpo- 
 
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61 
 
rations as shall _only .issue policies under which the preroiu~s are stipulated, and made payable at fixed periods m advance. 
Sec. 3. Be it further enacted, That all laws and parts of laws in conflict with this Act be, and the same are, hereby repealed. 
 
 62 
 
INSURANCE LAWS 
 
_INSURANCE, REGULATING BUSINESS 
 
No. 349. 
 
An Act t? amend_ the laws of this .State, regulating the busmess of msurance, to mod1fy the provisions -of sections 2035, 2045 and 2048 of the Code of this State, so as to reduce the amount of bonds required to be deposited by fire, marine and inland insurance companies, chartered by other States or foreign gover nments; to require the restitution to the depositor of certain bonds heretofore deposited under existing laws, to empower the Insurance Cowmissioner, under certain circumstances, to 
 suspend, revoke and restore the license of any such company, and generally to amend the insurance laws of said State as to more fully protect the interests of the citizens and property owners thereof, and for other purposes. 
SeCtion 1. Be it enacted by the General Assembly of Georgia, and it is hereby enacted by authority of the same, That from and after the passage of this Act, the laws regulating the business of insurance in this State be amended in the following particulars, to-wit: That section two thousand and thirty-five of the Code of this State be, and is, hereby amended, by striking therefrom the word '' twenty'' occurring in the sixth line of said section, and by adding at the conclusion of said section the words following: "and it shall be the duty of the Treasurer of this State, -- upon demand therefor, to deliver to the depositor thereof, or to the person lawfully authorized to receive them, all bonds deposited by it under laws tofore existing in excess of the sum of ten thousand  dollars,'' so that said section when amended shall read as follows: ''All fire, marine, and inland in~ surance companies chartered by other States or foreign governments shall be required to deposit with ' the Treasurer of this State, bonds of the United 
( 
 
 INSUH.<\.NCE LAws 
 
63 " 
 
States or bonds of this State, which, according to the Acts and resolutions of the General Assembly are val~d, an d which amount, acco:ding to their face value to t en thousand dollars, whiCh bonds shall be 
receipted for b?r tl~e State Treasurer, and especially 
deposited by hm1 m the vaults of the treas~ry, a~d wh enever such company ceases to do busmess m thi s State, and has settled up all claims against it as hereinafter provided, said bonds shall be delivered up to the proper party on presentation of the. Treasurer's receipt. While said bonds are so deposited, the owners of the same shall, subject to the notices hereinafter provided for or given, be entitled to cole lect the coupons and use them. For the bonds so deposited, the faith of the Stat e is pledged that they shall be returned to the parties entitled to receive them, or disposed of as hereinafter provided, and it shall be the duty of the Treasurer of this State; upon demand therefor, to deliver to the depositors thereof, or to the person lawfully authorized to receive . the same, all bonds deposited by it or him, under laws heretofore existing in excess of the sum of ten thousand dollars.'' 
Sec. 2. Be it further enacted, That section two thousand and forty-five of the Code be, and the same is, hereby amended, by striking therefrom all the words following the words ''twenty per cent., '' occurring in the fourteenth line of said sedion, and by substituting for the words so striclcen the words following, to-wit: ''the Insurance Commissioner shall suspend the license issued to said company and requil~e the company to cease to do new business within this State, and give notice to said company to make good its whole capital stock within ninety (90) days ; and if this is not done he shall revoke the license of such company and debar the same from doing business in this State. 
Sec. 3. Be it further enacted, That section two thousand and forty-eight of the Gode be, and the 
 
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INSURANCE LAws 
 
same is, hereby amended, by striking therefrom the words thereof, following the word '' ....,...u"'t~,s. occurring in the :fifth line thereof, and by the tution for the words so stricken the words f to-wit: ''as contemplated by the laws of this State, he ~hall revoke the license of such company and re;1 quire said company to cease to do business in State, giving public notice of such revocation authority. Any insurance company which has suspended or which has had its license revoked be reinstated upon showing that its condition is as to authorize it to do business in t~is State, and Insurance Commissioner may reinstate such pany whenever it makes such showing. 
Sec. 4. Be it further enacted, That all laws parts of laws i,n conflict with this Act be, and the. same are, hereby repealed. 
Approved December 20, 1899. 
 
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65 
 
FRATERNAL BENEFICIARY ORDERS DEFINED, ETC. 
 
No. 105. 
 
An Act to define and regulate fraternal beneficiary ordeTs, associations or societies in the State of Georgia, to provide penalties, and for other pur- 
poses. 
Section 1. Be it enacted by the General Ass~mbly of Georgia, That a fraternal beneficiary order, asso-. ciation or socie.ty is hereby defined to be a corporation, society or voluntary association which has no capital stock, but is formed or organized and carried on for the benefit of its members and their beneficiaries, and having a representative form of government and a lodge system, with ritualistic form of work for the meeting of its lodges, chapters, councils, or other designated subordinate bodies, and the benefits, insurance, charity or relief shall be payable by a grand or supreme body of the same, excepting sick benefits, which may also be paid by local or subordinate bodies. Such grand or supreme bodies may be composed of its officers, incorporators, representativ~s elected by l9cal, district or grand bodies, past officers and standing committees. Such orders or associations may make a constitution, by-laws, rules and regulations consistent with the existing laws of the State, for the government of ali under its authority, for the management of its properties and the due   and orderl.y conduct of its affairs. 
Such orders or associations may make provision for the payment of benefits in case of death, sickness, temporary or permanent physical disability, either as the result of disease, accident or old age; provided, the period of life at which payment for old age commences shall not be under seventy years. Any such order or association may also accumulate, maintain,, apply or disburse among its membership a reserve, 
 
 66 
 
INSURANCE LAWS 
 
..1  
 
emergency, or other funds, as may be provided in 
 
constitution and laws; provided, however that 
 
profit or gain shall be added to the paym:nts 
 
by a member. 
 
The funds from which the payment of 
 
shall be made, and the funds from which the exl>en&M: 
 
shall be defrayed, shall be derived from as~;esl~m4entit:l dues or other payments collected from its .Lll"''llllJtn'lL 
 
as may be provided by the constitution or by-laws 
 
such order or association. Payment of death 
 
fits shall be to families, heirs, blood relatives .anced husband or affianced wife of, or to nA'r~:~,......~ 
 
dependent upon the member, as may be ue:ngJnat;ec. 
 
by the member. 
 
 
 
Such orders or . associations shall be governed 
 
this Act, and shall be exempt from the provisions 
 
the insurance laws of this State, and no law 
 
passed shall apply to fraternal beneficiary orders 
 
associations, unless it is expressly designated r.nfl~l'Aln 
 
Sec. 2. Be itfurther enacted, That any frftteJrniJi;I beneficiary order, association or society of this any other State, district, province or ~err.~tory~ ' having members, or any lodge, chapter,  subordinate branch duly established 'and uq~anllZeq in this State, may continue its operat~ons and ness in this State; provided, that it l!ereafter plies with the provis!ons of this Act regulating nual reports, and the designation of the Commissioner as the person upon whom process be served, as hereinafter provided. 
Sec. 3. Any fraternal beneficiary order, ass:omtion or society coming within the description as forth in section one of this Act, organized under laws of any other State, province, district or tory, not now having lodges, councils, or other ies, or members in this State, shall be permitted do business withinthis State when it shall have with -the Insurance .Commissioner a certificate 'the offi~ial in charge of insurance matters in its 
 
 INSURANCE LAws 
 
67 
 
State of incorpora.tion that it i~ authorize.d to tranact business therem as a fraternal benefiCiary order sr association, also a duly certified copy of its char~er and article of association, and a copy of its constitution a~d laws, certified to by. its secretary. or correspondmg officer, together >y1th the appomtroent of the Insurance Commissioner as the r.erson upon who~ legal process may be served, as herein- 
after prov1ded. 
Sec. 4. Every such corporation, society, order or association doing business in this State shall, on or before the first day of March each year, make and file with the Insurance Commissioner a report of its affairs and operations during the year ending the thirty-first day of December immediately preceding, which annual report shall be in lieu of all other reports required by any other law. Such reports shall be made on blanks provided by the Insurance Co_mmissioner, and shall be verified under oath by the duly authorized officers of any such order, and shall be published, or the substance thereof, in the annual report of the Insurance Commissioner under a separate head, entitled "Fraternal Beneficiary Soci- 
eties.'' 
Sec. 5. Each such corporation, society or association now doing, or hereafter admitted to do business in this State, and not having its principal office within this State, and not being organized under the laws of this State, may be served with each and all processes of law, whether mesne or final, in any action or special proceedings against saia corporation, society or association as follows : The party in whose favor suit is being brought, through his attorney at law shall notify in writing the Insurance Commissioner of Georgia of his intention to bring such suit or action, and request the said Insurance Commissioner to appoint some resident of the county of the residence of said plaintiff in said case, and it shall be the duty of the Insurance Commissioner immediately: 
 
 68 
 
INSURANCE L4:WS 
 
. 
 
to appoint some resident of said county to accept 
 
vice of process in all cases in the name of the 
 
corporation, society or association; and the said 
 
ice, when so made, shall be deemed and held and 
 
accepted by said corporation, society or associati011. 
to be legal person~l service and binding, the same aa 
 
if made upon any agent or officer of said society 
 
corporation; provided, that the said party or 
 
attorney shall, twenty days before the 
 
term for said suit or action, cause to be sent to 
 
Insurance Commissioner a copy of the peti  
 
When such service has been made upon such .u..n.- .J 
 
ney for service on any such corporation, society 
 
association, and copy of same has been forwarded 
 
said Commissioner as hereinbefore provided, it 
 
be the duty of said Insurance Commissioner .Lut.Wt,_. 
 
diately to notify the said corporation, society or 
 
ciation of such service by letter, enclosing copy 
 
said petition, together with process filed in said case_ 
 
prepaid and directed to the secretary or its ................. ... 
 
sponding officer. The Insurance Commissioner shall keep a ......,.~_... 
 
of ali such attorneys appointed for such service, 
 
gether with the record of when any such pelGltliODl! 
 
with process were received by him in any case, 
 
forwarded to any such corporation, society or 
 
ciation.  
 
Sec. 6. The Insurance Commissioner shall, out undue delay, upon the application of any society or association having the right to do bu1Binell* in this State as provided by this Act, issue a ..,....,..,.m.a: 
in writing authorizing it to do business .within State, for which certificate, and all proceedings connection therewith, such association shall said Insurance Commissioner a fee of ten uvJua" This fee shall be paid annually thereafter in 
 
Sec. 7. Any such order, association or society fusing or neglecting to make the report to the ance Commissioner as provided in this Act, shall 
 
 INSURANCE LAWS 
 
69 
 
xcluded from doing business within this State; and 
~he Insurance Commissioner shall at once recall and 
cancel their license. Any officer, agent or person actino for any order, or subordinate body thereof, withinthis State, while it shall be prohibited from doing business pursuant to this Act, shall be deemed guilty of a misdemeanor, and on conviction thereof shall be punished by a fine of not less than twenty-five dol- 
lars nor more than one hundred dollars. 
 
Sec. 8. Any person who shall act within this State 
 
as an officer, agent or otherwise for any such frater- 
 
nal beneficiary order in soliciting or procuring new 
 
business or members, which shall have neglected or 
 
refused to comply with this Act, shall be subject to 
 
the penalty provided in the last preceding section for 
 
the misdemeanor therein specified. 
 
 
 
Sec. 9. All laws and parts of laws in conflict with or inconsistent with this Act be, and the same are, hereby repealed, and nothing in this Act shall be held to affect or apply to grand or subordinate lodges of Masons, Knights of Pythias, Odd Fellows, Red Men, .Junior Order American Mechanics, or similar orders that do not have as their principal object the issuance of benefit certificates to members. 
 
Sec. 10. This Act shall be in force and effect from and after its passage. 
 
Approved December 17, 1900. 
 
 70 
 
INSURANCE LAWS 
 
INSURANCE ' COMPANIES, DEPOSITS REGISTRATION OF. 
 
No.108. 
 
An act to authorize and require all insurance and 
fidelity and deposit companies and fidelity or sur~ ty companies that may now have bonds deposited 
in the State Treasury, or that may hereafter be 
placed there, to have same registered. 
Section 1. Be it enacted by the General ~....,,..,.,,.uu.tv of Georgia, and it is hereby enacted by the autnotntv of the same, That all insurance and fidelity and posit companies and fidelity or surety compani~ which may now have coupon bonds deposited in the Treasury, be required to substitute registered bonds for the same on or before January 1st, 1901. 
Sec. 2. And be it further enacted, That all .companies making deposits after January 1st, 1901, be required to furnish registered bonds. 
Approved December 17, 1900. 
 
 INSURANCE LAws 
 
71 
 
INSURANCE COMPANIES, CAPITAL STOCK OF. 
 
No. 153. 
 
An Act to authorize any fire insura:p.ce company, organized under the laws of this State, to increase or decrease its capital stock, and for other .pur- 
poses. 
Section 1. The General Assembly of Georgia hereby enacts, That the capital stock of any fire insurance company organized under the laws of this State, whether incorporated by special Act of the General Assembly or by the Secretary of State under the general law, may be increased to such an amount as may be desired by the stockholders of such company, or said capital stock may be decreased to any sum, not less than one hundred thousand dollars as may be desired by stockholders of such company, at a meeting of such stockholders, called for the special purpose by order of the board of directors of such company, of which meeting notice shall be given to each stockholder (or in case of death to his legal representative or heirs at law), personally or by mail, addressed to his last known residence, at least thirty days previous to such special meeting, and such increase or decrease shall be made in such manner as shall have been determined by the stockholders at such meeting, it requiring the vote of a majority in amount of the entire capital stock of such company to authorize such increase or decrease, and the manner of effecting same. If at such meeting .of the stockholders, holding the majority in amount of such capital stock, vote for such increase or decrease, the proceedings of the meeting must be reduced to writing and entered upon the books or minutes of the company and a copy thereof verified by the president or secretary thereof shaH be filed and recorded in the office of the Secretary of State 
 
 72 
 
INSURANCE LAWS 
 
and when so filed and recorded,. shall become an 
amendment to the charter of smd company, and a certified copy thereof shall be evidence of all facts therein contained, in .all courts ~f this State, without further proof; promded, such mcrease or decrease shall be approved by the Comptroller-General as exofficio Insurance Commissioner of this State to be evidenced by endorsing his approval on the said verified copy of such proceedings of said stockholders, which endorsement shall be recorded in the office of the Secretary of State, together with said verified copy, and become a part thereof. 
Sec. 2. Be it further enacted, 'J'hat all laws and parts of laws in conflict with this Act be, and the same are, hereby repealed. 
Approved December 18, 1900. 
 
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73 
 
LIFE INSURANCE COMPANIES ON ASSESSMENT PLAN. 
 
No. 176. 
 
An Act to authorize insurance companies, chartered to do a life insurance business upon the assessment plan, to hereafter do a general life insurance business in Georgia, upon complying with the terms of this Act, to prescribe laws regulating the same, and fo r other purposes. 
Section 1. Be it enacted by the General Assembly of Georgia, That any corporation, chartered to do a life insurance business on the assessment plan, and doing business in this State, may, if it so desire, by a compliance with this Act, be relicensed and authorized to transact a general life insurance business in this State, upon filing with the insurance department of the State all papers and documents and making the payments required under existing laws so far as the same are or may be applicable to such life insurance companies, and all business thereafter transacted by such corporations, in this State, shall be done in accordance with and governed by the provisions of the laws of this State relating to life insurance companies, other than those doing business on the assessment plan, except as provided in this Act. 
Sec. 2. Be it further enacted, That every such corporation, upon complying with the requirements of this Act, is hereby authorized to carry out, in good faith, its contracts heretofore made with its members, but all policies or certificates of insurance heretofore issued by such corporations and now remaining in force, which contain a provision for a payment other than the premium stipulated therein, and under which the donation of premium payments ~8 coequaJ with the duration  of the co'ntract (ehdoWroent policies and endowment .certificates excepted) ' shall be 
 
 74 
 
INSURANCE LAWS 
 
valued and reserve maintained thereon on the basis 
of renewable. term insur~~ce as fixe_d by age, in 
accordance w1th the provisiOns of sectwn 8 of an Act entitled "An Act to regulate the businei?s of insurance of this State, and for other purposes,'' approved October 24th, 1887. To the reserve liability determined as above, the Insurance Commissioner shall add the determinate contract reserve under any other policies or certificates heretofore issued and remaining in force, and in the absence of such contract reserve shall value them as contracts providing similar benefits are to be valued under the provisions of said section 8 of the Act of October 24th, 1887; provided that under no policy or certificate shall a greate~ aggregate reserve liability be .charged than is req"';lired by said section. 
Sec. 3. Be it further enacted, That after this Act goes into force, no policy or certificate of life insurance shall be issued by a company licensed under this Act, in this State, unless in compliance with the provisions thereof. All policies of life insurance issued by such corporation, under this Act, whether or not they contain a provision for a payment other than the premium specified therein, shall be valued and the reserve maintained thereon according to the provisions .of said section 8 of the Act of October 24th, 1887, and the nature of the insurance as defined in each policy or contract. 
Sec. 4. Be it further enacted, That no laws or .parts of laws, which relate to the formation of corporations to transact the business of life insurance upon the assessment plan, or which provide for the regulation of the business of life insurance by such corporations, shall be applicable to companies doing business under this Act, except to the extent of permitting the carrying out of contracts heretofore made with members; provided, nothing in this Act shall be construed to apply to any fraternal beneficiary order  or society operating on the system of lodges, councils 
 
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75 
 
or chapters, as defined by the laws of this State regulating such orders or societies. 
Sec. 5.  All Acts and parts of Acts inconsistent with the provisions of this Act are hereby repealed. 
Approved December 21, 1900. 
 
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AN ACT 
 
An Act to amend an Act entitled ''An Act to amend section 2061 of the Civil Code of 1895, relative to the requirements of assessment insurance companies precedent to doing b11siness in this State by adding the requirement that a deposit shali be made as security for policy-holders," approved December 20, 1901; by providing more definitely for the amount of said deposit. 
Section 1. Be it enacted by the General Assembly of the State of Georgia, and it is hereby enacted by authority of the same, That from and after the passage of this Act, the following words in said Act, towit: ''Of insurance which, under the rules and regu. lations of the company making the deposit, it is authorized 'to write upon one life; provided nevertheless, such deposit shall not be less than five thousand dollars,'' whenever they occur be, and the same are, hereby stricken, and in lieu thereof the following words, to wit: ''Equal to twenty thousand dollars, market value'' be, and the same are, hereby inserted, so that said Act and said section 2061 of the Code, when amended, shall read as follows: "It shall not be lawful for any corporation or association, organized under the laws of this or other States of the United States for the purpose of furnishing life indemnity or insurance upon the assessment plan by its agents, to do any business in this Stateuntil such corporation 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 ending the thirty-first day of the next preceding December, sworn to by the president or secretary, or likeofficer thereof, setting forth the number and amount of certificates of membership or policies in force, and a detailed account of its expenditures, income, assets and 
 
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77 
 
liabilities, and also a certificate sworn to by the president and secretary or like officer 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 it!'! maximum certificate of membership or policy theretofore or thereafter to be issued to the full amount or limit named therein; a certificate from the Insurance Commissioner or other like officer charged with the duty of executing or enforcing the executions of the insurance laws of its home State, certifying that it is legally entitled to do business in said home State; a copy of the application for membership or insurance, and of each form thereof, if more than one form is used; a copy of the constitution and by-laws, and of each and every addition thereto, which must show that all indem- , nities to beneficiaries are in the main provided for by assessments upon all surviving members. And whenever said company shall fail to pay a valid claim to the full limit named in any policy issued by them to any resident of this State, the Insurance Commissioner shall revoke their authority to do business in this State; provided, that all such corporations or associations organized under the laws of this or any other State or country, shall deposit with the treasurer of this State stocks or bonds approved by that officer in an amount equal to twenty thousand dollars, market value; and hereafter such corporations shall at the time of filing its annual statement, deposit in like securities with said treasurer the sum of one thousand dollars on each million dollars of insuv-ance in force on the last day of the last mt.lt>net?'' :r<>.<tr AS shown by its last annual statement, until the sum so deposited shall be equal to one hundred thousand dollars; provided, however, that industrial associations or assessment life insurance companies doing 
 
 78 
 
INSURANCE LAWS 
 
business uporr the industrial or weekly payment plan and issuing no policies for an amount greater tha~ five hundred dollars, shall be required to deposit a sum equal to one thousand dollars for each one million dollars in force; and thereafter such industrial associations or assessment life insurance companies doing business upon the industrial or weekly payment plan, and issuing no policy for a greater amount than five hundred dollars, shall be required to deposit a sum not less than one thousand dollars on each million dollars of insurance in force on the last day of the last calendar year, as shown by its annual statement, until the sum so deposited shall be equal to one hundred thousand dollars. The security so deposited shall be held in trust for the benefit and protection of, and as security for the policy-holders of such corporation or 'association, their legal representatives and beneficiaries. That corporations or associations organized under the laws of other States or countries shall not be required t9 make such deposit; p-rovided, the corporation or association desiring to do business in this State shall make it appear to the satisfaction of said Insurance Commissioner that it has on deposit with the proper State official in the State or country of its incorporation a like amount iQf securities as is required under the terms of this Act, and which are held by said authority in trust for the benefit and protection of, and as security for the policy-holders of such corporations or associations, their legal representatives and beneficiaries. Said securities shall so remain on deposit until it has been made to appear to the satisfaction of said Insurance Commissioner of this State that all the debts and obligations of said company or association due the citizens of this State have been discharged, or, in case of non-resident companies, that, .after making deposit, or similar deposit has been 111ade with the proper State officials in the State or country of its corporation, said securitl.es shall be subject to the debts due policy-holders and beneficiaries under the 
 
 INSURANCE LAWS 
 
79 
 
same rules and regulations as govern the deposits required to be made by fire insurance companies under the laws of this State, in so far as the same may be applicable. Companies or associations now or-. ganized under the assessment life insurance laws of this State shall not be required to make such deposits for and during the year 1901; but said companies may make such deposit during said year if they so elect. 
Sec. 2. Be it further enacted by the authority aforesaid, That all laws and parts of laws in conflict with this Act be, and the same are, hereby repealed. 
Approved December 18, 1901. 
 
 .so 
 
INSURANCE LAWS 
 
. ..,., 
 
AN ACT 
 
To amend an Act approved December 24th, 1896 making it unlawful for certain fire insurance com~ panies to place or cause to be placed insurance against loss by fire on property in this State except through agents located in this State, and 'prescribing penalties for a violation of the same, and prescribing further conditions to be complied with ~y such fire insu~ance ?omp.anies before receiving hcense to do busmess m thiS State, by making it unlawful for accident, liability or casualty insurance companies, not incorporated by the laws of the State of Georgia, but legally licensed to transact the business of accident, liability or casualty insurance therein, and doing business through regularly commissioned and licensed agents, to issue or cause to be issued, policies of accident, liability or casualty insurance, to any person or corporation resident in the State of Georgia, except through agents located in the State, legally authorized and licensed to write policies of accident, liability or casualty insurance therein, and prescribing penalt~es for violation of the same; also prescribing further conditions to be complied with by accident, liability or casualty insurance companies before receiving license to do business in this State. 
 
Section 1. Be it enacted by the General Assembly of the State of Georgia, and it is hereby enacted by the authority of the same, That the title to said Act be amended by adding at the end thereof the following words, to wit: And making it unlawful for accident, liability and oasualty insurance companies, not incorporated by the laws of the State of Georgia, but regularly licensed to transact the business of acci'dent, ]jability or casualty insurance therein and doing business through regularly licensed and commissioned agents, to issue or cause to be issued policies of accident, liability or casu;:tlty to any per- 
 
 INSURANCE LAWS 
 
81 
 
son or corporation resident in the State of Georgia, except through agents located in the State, legally authorized and licensed to write policies of accident, liability or casualty insurance therein, and prescribing penalties for violation of the same; and also 
?Y prescribin? f~i.ther conditions t? be complied with 
accident, hab1hty or casualty msurance compames before receiving licenses to do business in this State. 
So that said title when amended shall read as follows: ''An Act making it unlawful for fire insurance companies not ineorporated by thelaws of the State of Georgia, but legally licensed to transact the business of fire insurance therein, and doing business there through regularly commissioned and licensed agents, to place or caused to be placed insurance against loss by fire on property in this State, except through agents located in the State, legally authorized and licensed to write policies of insurance therein, and prescribing pe~alties for violation of the same; also to prescribe further conditions to be complied with by fire insurance companies before receiving licenses to do business in this State, and making it unlawful for accident, liability or casualty insurance companies not incorporated by the laws of this State, but regularly licensed to transact the business of accident, liability or casualty insurance therein, and doing business through regularly licensed and commissioned agents, to issue or cause to be issued policies of accident, liability or casualty insurance to any person or corporation resident in the State of Georgia, except through agents located in the State  legally authorized and licensed to write policies of accident, liability or casualty insurance therein, and prescribing penalties for violation of the same, and al so prescribing further conditions to be complied with by accident, liability or casualty insurance companies before receiving licenses to do business in this State.'' 
Sec. 2. Be. it further enacted, That section 1 of 
 
 82 
 
INSU RANCE LA"VS 
 
~aid Act be, and the. same .is hereby amended by addm.g a~, the end o.f sard s.ect~~n the following words, to w1t: ~hat ac~1dent, hab1hty or casualty insurance compames not mcorporated by the laws' of the State of Georgia, but legally authorized to do business in this State through regularly commissioned and licensed agents located in this State, shall not issue any policies of accident, liability or casualty insurance to any person or corporation resident in said State save through agents of such companies regularly commissioned and licensed to write policies of accident, liability or casualty insurance in Georgia. so that said section when amended shall read as fol~ lows, to wit: 
Be it enacted by the General Assembly of the State of Georgia, and it is hereby enacted by authority of the same, That fire insurance companies not incorporated by the laws of the State of Georgia, but legally authorized to do business in this State through regularly commissioned and licensed agents located in this Statil, shall not make contracts of fire insurance on property herein save through agents of such companies regularly commissioned and licensed to writ& policies of insurance in Georgia; provided, however, that this Act shall not apply to property of railroad companies and other common carriers. That accident, liability or casualty insurance co~panies not incorporated by the laws of the State of Georgia, but legally authorized to do-business in this State through regularly commissioned and licensed agents located in this State, shall not issue any policy of accident, liability or casualty insurance to any person or corporation resident in said State, save through agents of such companies regularly commissioned and licensed to write policies of accident, liability or casualty insurance in Georgia. 
Sec. 3. Be it further enacted, That section 2 of said Act be amended by inserting between the words ''-fire" and "insurance" in the second and :fifth lines 
 
 INSURANCE LAWS 
 
83 
 
thereof, the following words, to-wit: ''accident, liability or casualty,'' so that said section when amended shall' read as follows, to wit: Be it further enacted, That before issuing certificate of license to any fire, accident, liability or casualty insurance company to transact business of accident, liability, casualty or fire insurance in this State, the Insurance Commissioner shall require in any case, in addition to requirements already provided for by law, that each and every such fire, accident, liability or casualty insurance company shall file with him the affidavit of its president or other chief officer, that it has not violated any of the provisions of this Act, for the space of twelve months last past, and that they accept the terms and obligations of this Act as a part of the consideration of their license. 
Sec. 4. Be it further enacted that section 4 of said Act be amended by inserting between the words ''fire'' and ''insurance,'' in the first and sixth lines thereof, the words ''accident, liability or casualty,'' so that said section when amended shall read as follows: Be it further enacted, That any fire, accident, liability or casualty insurance company violating any provision of this Act, or refusing to submit to the aforesaid examination when required, shall forfeit the right to do business in this State for the next twelve months thereafter, and the Insurance Commissioner shall immediately revoke the license 
already issued to said fire, accident, liability or cas- 
ualty insurance company to do business in this State. 
Sec. 5. Be it further enacted, That this Act shall go into effect as soon as approved, and all laws and parts of laws in conflict with the same are hereby repealed. 
Approved December, 1901. 
 
 84 
 
INSURANCE LA\YS 
 
INSURANCE COMPANIES, SUITS AGAINST. 
No. 160. 
Section 1. Be it enacted by the General Assembly of the State of Georgia, and it is hereby enacted by authority of the same, That from and after the passage of this Act, that section 2145 of the Code of 1895 be amended as follows: By striking out the word ''agency'' in the seventh and eighth lines, and inserting in lieu thereof the word ''agent,'' so that said section when so amended, will read as follows: "Whenever any person may have any claim or demand upon any insurance company having agencies or more than one place of doing business, it shall be lawful for such person or persons to institute suit against such insurance company within the county where the principal office of such company is located, or in any county where said insurance company may have an agent or place of doing business, or in any county where such agent or place of business was located at the time the cause of action accrued, or the contract was made out of which said cause of action arose. 
Sec. 2. Be it further enacted, That all laws and parts of laws in conflict with this Act are hereby repealed. 
Approved December 17, 1902. 
 
 INSURANCE LAWS 
 
85 . 
 
/ 
INSURANCE  COMPANIES, CHARTERS OF. 
No. 129. 
Section 1. Be it enacted by the General Assembly of Georgia, and it is hereby enacted by authority of the same, That section 2017, volume 2 of the Code of 1895, be, and the same is, hereby altered and amended by striking from said section 2017 all of said sec- . tion after the word ''business,'' in the sixth line, to wit: ''The rights, powers and privileges granted said corporation shall not continue longer than fifty years, unless the same be continued by laws of force at the expiration of said fifty years,'' so that when said section is .so amended it will read as follows: ''That all the powers and privileges and said certifi-  cate of incorporation of said insurance company shall cease and determine at the expiration of two years from the date of said certificate; if at the expiration of said two years said company has not organized and commenced business. '' 
Sec. 2. Be it further enacted, That all laws and parts of laws in conflict with this Act be, and the same are, hereby repealed. 
Approved December 16, 1902. 
 
 86 
 
INSURANCE LAws. 
 
DEPOSITS BY FOREIGN INSURANCE COMPANIES. 
 
No. 82. 
 
An Act to amend section 2035 of the Code of Georgia 1895, by inserting hetween the words ''valid'' and ''and'' in the sixth line of the said section the words, ''or bonds of any countyor municipality in this State which have been validated under the laws of this State,'' and for other purposes. 
Section 1. Be it enacted by the General Assembly of Georgia, and it is hereby enacted by authority of the same, That section 2035 of the Code of Georgia 1895 be, and the same is, hereby amended by inserting between the words ''valid'' and ''and'' in the sixth line of said section the words, ''or bonds of any county or municipality in this State, which have been validated under the laws of this State," so that said section as amended shall read as follows: "All fire, .marine and inland insurance companies, chartered by other States or foreign government, shall be required to deposit with the Treasurer of this State, bonds of the United States, or bonds of this State which according.to the Acts and resolutions of the General Assembly are valid, or bonds of any county or municipality in this State, which have been validated under the laws of this State, and which amount, according to their face value, to twenty-five thousand dollars, which bonds shall be receipted for by the State Treasurer, and especially deposited by him .in the vaults of the Treasury, and whenever such company ceases to do business in this State, and has settled up all claims against it as hereinafter provided, said bonds shall be delivered up to the proper party on presentation of the Treasurer's receipt. While said bonds are so deposited the owners of the same shall, . subject to the notices hereinafter provided for or given, be entitled to collect. the coupons and use them. 
 
 INSURANCE LAWS 
 
87 
 
For the bonds so deposited the faith of the State is pledged that they shall be returned to the parties entitled to receive them, or disposed of as hereinafter prov1"ded. " 
Sec. 2. Be it further enacted, That all laws and parts of laws in conflict herewith be, and the same are, hereby repealed. 
App roved August 22, 1905. 
 
 / 
 
88 
 
INSURANCE LAW:? 
 
DEPOSITS BY HOME INSURANCE COMPANIES. 
 
No. 42. 
 
An Act to amend section 2043 of the Code of Georgia with reference to the deposit required to be mad~ by life insurance companies chartered under the laws of Georgia so as to provide that such deposits . shall be made with the State Treasurer instead of with the Insurance Commissioner. 
Section 1. Be it enacted by the General Assembly of the State of Georgia, That section 2043 of the Code of Georgia be, and the same is, hereby amended by striking the words, ''Insurance Commissioner of this State, or with some strong corporation which may be approved by him" in the third and fourth lines of said section, and insert in lieu thereof the words, ''Treasurer of this State.'' Also amend by striking the word "him" in the fifth line of said section and insert in lieu thereof the words '' Ins'urance Commissioner of this State.'' 
Also amend by striking the words ''Insurance Commissioner or corporation'' from the tenth and eleventh lines of said section and insert in lieu thereof the words ''the Treasurer.'' 
Also amend by striking the word ''whose'' in the thirteenth line of said section and insert in lieu thereof the words ''the Treasurer's,'' so that said section when amended shall read as follows: 
''All such companies chartered by the State of Georgia shall before doing business in this State deposit with the Treasurer of this State one hundred thousand dollars, in such securities as may be deemed by the Insurance Commissioner of this State equivalent to cash, to be subject to his order, as a guarantee fund for the security of the policy-holders of the company making such deposit. All interest and dividends arising from such securities to be paid 
 
 INSURANCE LAWS 
 
89 
 
I 
 
when due to the company so .depositing them. Any such securities as may be needed by the company may be taken from the Treasurer, at any time, by replacing them with other securities equally acceptable to the Insurance Commissione-r. The Treasurer's certificate for the same shall be furnished to the company.'' 
 
Sec. 2. Be it enacted further, That all laws and parts of laws . in conflict with this Act be, and the same are, hereby repealed. 
 
Approved August 22, 1905. 
 
 90 DEPOSIT 
 
INSURANCE LAWS. 
I 
BY ASSESSMENT COMPANIES. 
 
INSURANCE 
 
No. 138. 
 
An Act to amend an Act approved December 20, 1901 amending section 2061 of the Civil Code of 1895, relative to requirements of assessment insuranc~ companies providing more definitely for the amount of deposit. 
Section 1. Be it enacted by the General Assembly of the State of Georgia, and it is hereby enacted by authority of the same, That from and after the passage of this Act, the following words in said Act, to wit, ''Provided, that all such corporations or associations, organized under the laws of this or any other State or country, shall deposit with the Treasurer of this State stock or bonds approved by that officer in an amount equal to twenty thousand dollars, market value; and hereafter such corporations shall at the time of filing its annual statement, deposit in like securities with said Treasurer the sum of one thousand dollars on each million dollars of insurance in force on the last day of the last calendar year, as shown by its last annual statement, until the sum so deposited shall be equal to one hundred thousand dollars,'' be, and the same are, hereby stricken, and in lieu thereof the following words be, and the same are, hereby inserted, to wit: 
Provided, That all such corporations and associations, organized under the laws of this or any other State or country, shall deposit with the Treasurer of this State stock or bonds approved by that officer in an amount equal to twenty thousand dollars, par value, and of not less than twenty thousand dollars, market value; so that said Act and said section 2061 of the Code, when amended, shall read as follows: ''It shall not be lawful for any corporation or association, organized under the laws of this or any other 
 
 INSURANCE LAWS 
 
State of the United States for the purpose of furnish- 
 
ing life indemnity or insurance upon the assessment 
 
plan by its agents, to do any business in this State un- 
 
til such corporation 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 ending 
 
the thirty-first day of the next preceding December, 
 
sworn to by the president or secretary, or like officer 
 
thereof, setting forth the number and amount of cer- 
 
tificates of me1i:1bership or policies in force and a de- 
 
tailed account of its expenditures, income, assets and 
 
liabilities, and also a certificate-sworn to by the presi- 
 
dent and secretary or like officer thereof, setting 
 
forth that it has paid, and ha's the ability to pay, its 
 
certificates or policies to the full limit named therein; 
 
that its certificates or policies are payable only to the 
 
beneficiaries having a legal insurable interest in the 
 
life of the member or the 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 Insurance 
 
Commissioner, or other like officer, charged with the 
 
duty of executing or enforcing the execution of insur- 
 
ance laws of its home State, certifying that it is legal- 
 
ly entitled to do business in said home State; a copy 
 
of the application for membership or insurance and 
 
of each form thereof, if more than one form is used; 
 
a copy of the constitution and by-laws, and of each 
 
and every addition thereto, which must show that all 
 
indemnities to beneficiaries are in the main provided 
 
for by assessments upon all surviving members. 
 
And whenever said company shall fail to pay a valid 
 
claim to the full limit named in any policy issued by 
 
them to any resident' of this State, the Insurance 
 
Commissioner shall revoke their authority to do 
 
business in this State: 
 
 
 
Provided, That all such corporations or associa~ 
 
tions, organized under.the laws of this or any other 
 
 92 
 
INSURANCE LAWS 
 
State or country, shall deposit with the Treasurer of this State stock or bonds approved by that officer in an amount equal to twenty thousand dollars, par value, and of not less than twenty thousand dollars market value; provided, however, that industrial associations or assessment life insurance companies doing business on the industrial or weekly payment plan, and issuing no policies for an amount greater than five hundred dollars, shall be required to deposit a sum equal to one thousand dollars for each one million dollars in force, and thereafter such industrial associations or assessment life insurance companies doing business upon the industrial or weekly payment plan, and iss~ing a policy foF no greater amount than five hundred dollars, shall be required to deposit a sum not less than one thousan.:1 dollars in each million dollars of insurance in force on the last day of the last calendar year, as shown by its annual statement, until the sum so deposited shall be equal to one hundred thousand dollars. The security so deposited shall be held in trust for the benefit and protection of, and as security for, the poliey-holders of such corporation or association, their legnl representatives and beneficiaries; That corporation or association organized under the laws of 'o~her Shtes or countries sHall not be required to make such deposit, provided the corporation or association desiring to do business in this State shall make it appear to the satisfaction of said Insurance Commissioner that it has on deposit with the proper State official in the State or country of its incorporation a like amount of securities as is required under the terms of this Act, and which are held by said authority in trust for the benefit and protection of, and as security for, the policy-holders of such corporations or .asso- ciations, their legal representatives or beReficiaries. Said securities sh~ll so remain on deposit until it has been made to appear to the satisfaction of said Insurance Commissioner of this State that all the debts and obligations of said company or association due 
 
 INSURANCE LAWS 
 
.93 
 
the citizens of this State have been discharged, or, in 
 
case of non-resident companies, that, after making 
 
deposit, or similar deposit has been made with the 
 
proper State officials in the State or country of its 
 
corporation, said securities shall b.e subject to the 
 
debts due policy-holders and beneficiaries under the 
 
same rules and regulations as govern the deposits 
 
required to be made by :fire insurance companies un- 
 
der the laws of this State, in so far as the same may 
 
be applicable. Companies or associations now or- 
 
ganized under the assessment. life insurance laws of 
 
this State shall not. be required to make such deposits 
 
for and during the year 1901; but said companies may 
 
make such deposits for and during said year if they 
 
so elect. 
 
 
 
Sec. 2. Be it further enacted by the authority aforesaid, That all laws and parts of laws in conflict with this Act be, and the same are, hereby repealed. 
 
Approved August 23, 1905. 
 
 INSURANCE LAWS 
INDUSTRIAL LIFE INSURANCE DEFINED 
AND REGULATED. 
No. 59. 
An Act to define and regulate the business of indus. trial life insurance; to provide the manner in which corporations, associations, societies or fra. ternal orders doing the business of industrial life insurance shall be authorized to do business in this State; to provide for the making of a deposit by such corporations, associations, societies or fraternal' orders as a condition precedent to doing business in this State, and to fix the amount thereof; and for other purposes. 
Section 1. Be it enacted by the General Assembly of Georgia, That industrial life insurance is hereby defined to be that insurance for which the stipulated premiums, advance assessments or dues are regularly payable and collectable weekly or bi-weekly, and the policies or benefit certificates which are for sum8 of not more than five hundred dollars on a single life, and which policies or benefit certificates may provide a weekly benefit for disability, caused by sickness or accident, not greater than twenty dollars per week. 
Sec. 2. Be it further enacted by the authority aforesaid, That all corporations, associations, relief organizations, societies or fraternal orders, with or without capital stock, and having or not having a ritualistic form of govermnent, whetheroperating under the present insurance laws as insurance companies, or operating under the laws governing fraternal beneficiary orders, and issuing policies or benefit certificates and conducting their business in the manner and within the meaning and definition set forth in section 1 of this Act, shall be held and deemed to be doing an industrial life insurance b'\lsiness, and shall be subject to this Act and all the other 
 
 INSURANCE LAWS 
 
95 
 
laws of this State not repugnant to this Act, regulating the business of life, health and accident insurance in this State. 
 
Sec. 3. Be it enacted by the authority aforesaid, That any corporation, association, society or fraternal order organized under the laws of this State, whether organized upon the mutual assessment plan or as a stock company, for the purpose of doing the business of industrial life insurance, as in this Act defined, shall, before commencing to do business in this State, comply with the laws of this State regulating the manner in which other insurance companies shall be authorized to do business in this State, ex<;ept that the deposit, required of companies operating upon the plan and according to the manner specified in sections 1 and 2 of this Act, shall be five thousand dollars, to be made in such securities as' 3:re required of such other insurance companies as are now required to make a deposit in this State; and such deposit shall be made prior to or on .the first day of January, 1906. 
 
Sec. 4. Be it further enacted, That any corporation, association, society or fraternal order, organized under the laws of any other State upon the mutual assessment plan, or as a stock company, for the purpose of doing the business of industrial life insurance, as in this Act defined, shall be authorized to do business in this State upon complying with the other laws of this State regulating the manner in which for~ign insurance companies shall be authorized to do business in this State, and filing with the Insurance Commissioner of this State a certificate from the offi~er having supervision of the insurance department of the State under the laws of which such corporation, association, society or fraternal order was chartered or elects to make its deposit, that such corporation, association, society or fraternal order has deposited with said State a sum of not less than five 
 
 :'96 
 
INSURANCE LAWS 
 
thousand dollars in such securities as are required to be deposited by insurance companies. 
Sec. 5. Be it further enacted, That the provisions -of this Act shall, in no way, apply to any company, association, organization or society, which does not  collect its premiums or dues weekly or bi-weekly, but any company, association, organization, society or fraternal beneficiary order, with or without a ritualistic form of government, which collects its dues or premiums weekly or bi-weekly, and which for purpose of securing business or members, and for collection of premiums, dues or assessments, employs paid agents, collectors or solicitors, shall come under the provisions of this Act. 
Sec. 6. Be it fu:t:ther enacted, That no law, hereafter passed, shall be held or deemed to refer to the business of industrial life insurance, unless the same  is expressly referred to in said law. 
Sec. 7. Be it further enacted, That all laws and 
parts of laws in conflict with this Act be, and the 
same are, hereby repealed. 
Approved August 22, 1905. 
 
 INSURANCE LAWS 
 
. . ~-. .97 
 
INSURANCE POLICIES, HOW ISSUED. 
 
No. 466. 
 
An Act fixing and regulating the manner in which contracts and policies of insurance, whether life or property, shall be issued and made in this State. 
 
Section 1. 0 f the State 
 
o 
 
fBeGietoergni.aacteadndbyI.tt 
 
h. e 
lS 
 
Genera hereby 
 
l e 
 
Assembly nacted by 
 
~olicies of 
Insurance must contain entire 
 
the authon. ty of the sam' e, That from and aft.er the contract. 
 
passage of this Act all life and fire insurance poli- 
 
cies issuep upon the life or property of persons with- 
 
in this State, whether issued by companies orgapized 
 
under the laws of this State or by foreign companies 
 
doing business in this State which contain any refer- 
 
ence to the application for insurance, or the consti- 
 
tution, by-laws, or other rules of the company, either 
 
as forming part of the policy or contract between the 
 
parties thereto, or having any bearing on said con- 
 
tract, shall contain or have attached to said policy a 
 
correct copy of said application signed by the appli- 
 
cant, and of the by-laws referred to, and unless so 
 
attached and accompanying the policy, no -such con- 
 
stitution or by-laws shall be received in evidence 
 
eithe_r as part of the policy or as an independent con- 
 
tract in any controversy between the parties to or 
 
interested in the said policy; nor shall such applica- 
 
tion or by-laws be considered a part of the policy or 
 
contract between such parties, 
 
Sec. 2. Be it further enacted, That all laws and parts of laws in conflict with this Act be, and the same ar;l, hereby repealed. 
 
Approved August 17, 1906. 
 
 98 
 
INSURANCE LAws. 
 
LIFE INSURANCE ON RESERVE PLAN, DEPOSITS OF SECURITIES FOR POLICIES. 
 
No. 472. 
 
An Act to authorize any life insurance company organized and doing business on the legal reserve plan under the laws of this State, to deposit with the T'reasurer of the State securities to the amount of the net reserve value of all policies issued by such company as security for the payment of all "liabilities arising under the terms of such policies. 
Section 1. Be it enacted by the General Assembly ~t5.~:~ir~'h of the State of Georgia, That from and after the pas~ricl:ur~:~ct sage of this ASjt the Insurance Commissioner of this ~~an~~h~""!re~~- State shall, as soon as practicable after the filing of d~~i the the annual statement of any insurance company orr:;q~~~state. ganized and doing business on the leg;;tl reserve plan 
under the laws of this State, proceed to ascertain the net reserve value of each policy in force on the thirty-first day of December immediately preceding upon the basis of calculation fixed by existing laws of this State; and should any company issue policies based upon a higher standard, such policy shall be valued according to such higher standard. For the purpose of making such valuation the Insurance Commissioner may employ a competent actuary to do the same, who shall be paid by the company for which the services are rendered; but nothing in this Act shall prevent any company from making said valuation herein contemplated which may be received by the Jnsurance Commissioner upon such proof as he may determine. The expense of procuring such proof shall be paid by the company. Upon ascertaining, in the manner above provided, the net reserve value of all policies in force issued by any company, desiring to operate under the provisions of this Act, the Insurance Commissioner shall notify such company of the ' amount thereof, and within sixty days after the date 
 
 INSURANCE LAWS 
 
99 
 
of such notification the officers of such company shall have the right to deposit with the Treasurer of this State; for the security and benefit of all its policyholders, securities to an amount which, together with the sum already deposited with said Treasurer, and such sums as may be deposited by said company with other States and governments, by requirement o:P the laws of such other States or governments in which said company is doing business, shall not be less than the am(;mnt of such ascertained valuation of all policies in force. In case the deposits made with other States and governments are by the laws of such States and governments held as security, first for the , policy-holders of such States l:!nd governments, then said policy-holders in such other States shall riot participate in the securities held.in this State until due allowance or credit has been given for the securities held by their own States of government, so that all policy-holders of the company shall stand on equal r:~~t~fhow terms. The securities shall be such as are described ascertamed. 
in section 2026 of the Code of 1895, -or certificates of deposit in any solvent bank or trust company, or satisfactory evidence of ownership of unencumbered improved real estate as may be lawfully acquired by such company under the provisions of law, at such value as may be determined upon"'by two disinterested appraisers residing in the county in which the real estate is situated, such appraisers to be appointed by the Insurance Commissioner of this State. Such real estate shall not be sold or encumbered unless securities of equal value as herein. required be deposited with the Treasurer of this State in lieu thereof. 
 
Sec 2 
 
Be 
 
it 
 
further 
 
enacted' 
 
That 
 
upon 
 
the 
 
de- 
 
Oerti~cate deposit by 
 
ot 
 
posit being made by any company as provided in the ~~::,~~~oner. 
 
"foregoing section which shall be renewed annually, 
 
the Insurance Commissioner shall issue a certificate 
 
setting forth the corporate name of the company, its 
 
principal office, that it has fully complied with the 
 
 100 
 
INSURANCE LAWS. 
 
provisions of this Act, stating the amount deposited and the net reserve value of outstanding policies, and the table upon which the same is computed, ana that it is authorized to transact the business of life insurance in this State; provided, that any such certificate shall expire on the thirtieth day of .May in the year following its issue. If requested by such company, the Insurance Commissioner shall furnish such company with a c~rti:ficate over his signature to be attached to or printed on policy issued by su13h company in substance as follows: State of Georgia, Insurance Department, State Capitol, Atlanta, Ga. _____ ..,__,____, 190__. The net reserve value of poli~ 
cies issued. bY------~------- -Life Insurance Company of_ _____,_________ . ___ __ . __Georgia, is secured 
by a deposit of acceptable securities in accordance with the compulsory reserve deposit laws of this State, enacted in the year 1906. __,____,______,__ ___ _ ____ __,__ ____, Insurance Commissioner. 
 
Failure to emffaekcet doef.posit, 
 
Sec. 3. Be it.further enacted, That upon the failure of any company 11avrng once exerc1sed the pnV 1lege of coming under the provisions of this Act to make the deposit in the time provided herein, the Insurance Commissioner shall notify such company to issue no new pwicies in this State until there shall have been compliance with said requirements. The Insurance Commissioner shall revoke the license of any company issuing policies after such notice and before compliance with said requirements. 
 
Change of securit ies deposited. 
 
Sec. 4. Be it further enacted, That all companies coming within the provisions of this Act shall have the right at any time to change their securities on deposit by substituting for those withdrawn a like amount in other securities of the character provided for in this Act, and whenever the net reserve value of . policy outstanding and in force against any company is less than the amount of securities then on deposit with the Treasurer of this State, said company shall  have the right to withdraw such excess; but at least 
 
 . 
 
INSURANCE LAws 
 
101 
 
one hundred thousand dollars shall remain on deposit. Companies having on deposit stock or bonds as security may collect the dividends and interest accruing on such deposits, but upon default by such company to deposit additional security as called for by the Insur- fnit~r~~:s and ance Commissioner, the State Treasurer shall collect the interest on such security as it becomes due and add the same to the securities in his hands belonging to such company. 
Sec. 5. Be it further enacted, That all securities Approval of offered for deposit under the provisions of this Act deposits. shall be passed upon by the Insurance Commissioner and approved by him before being deposited with the State Treasurer, and before the withdrawal of any securities from the Treasurer by the company, the Insurance Commissioner shall first approve such withdrawal and the substitution of securities therefor. 
Sec. 6. . Be it further enacted, That all laws and parts of laws in conflict with this Act be, and the same are, hereby repealed. 
Approved August 20, 1906. 
 
 . 
 
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