Insurance laws of the State of Georgia, 1917

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INSURANCE LAWS

Of THE.
I,
STATE OF GEORGIA

IN FORCE TO AUCUST, 1917
I

WM. A. WRIGHT
C O MPTR0LLE.R-GE.NE.RAL AND
INSURANC E COMMISSIONER
' -f.nN1vrRSJTY OF C~-i., : t
DEC3 '5B

ATLANTA, GA.

--

CHAS. P. BYRD, STATE PRINTER

1916
11

'
I

INSURANCE LAWS
OF THE.
STATE OF GEORGIA
IN FORCE TO AUCUST, 1917
WM. A. WRIGHT
C O M PTROLL E.R- GE.NE.RAL AND
INSURANCE. COMMISSIONE.R

ATLANTA, GA.

CHAS. P . BYRD, STATE PRINTER

,,

1916

AN ACT

To regulate the business of Insurance in this State, and for other p-i:irposes.

Section 1.

Be it enacted by the General Assembly

.Gomptroller.General shall

of

tbe

State

of

Georgia,

That

from

and

after

the

be Insurance Commis-

sioner .

passage of this Act, the Comptroller-General of this

State shall be the Insurance Commissioner of this

State and shall be charged with the execution of the

law of this State regulating the business of Insur-

ance in the State of Georgia.

Sec. 2.

Be it further

enacted, That it shall not be

Home and foreign in-

lawful

for

any

insurance

company

chartered

by

surance companies must

this

State

or

other

States,

or

for eign

government,

be licensed by Insur-

ance Com-

to transact any business of insurance in this State missioner.

without fir st procuring a license from the Insurance

Commissioner of this State, and before said Com-

missioner shall issue such license, such insurance

company must fully comply with all the provisions

of this Act, and file with said Insurance Commis-

sioner a statement, under oath of its President

and Secretary, specifying: First. The name and

locality of the company. Second. The condition of

uch company, on the thirty-first day of December Annual report of con-
then next preceding, exhibiting the following facts dition of company.
and items in the following form, namely: First.

The amount of capital stock of the company and

what part of the same has been paid up in cash, and

what part is in notes of the stockholders, and how

such notes are secured. Second. The property or

assets held by the company, specifying:

4

INSU RANCE LAWS .

Contents of annual re-

1. The value, or as near as may be, of the real

port.

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 tra:nsmission.

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, number of shares and par and market value of each kind of stock.

7. The amount of interest actually due a;nd unpaid.

8. The amount of premium notes on hand upon which policies have been issued.

9. The amount of any and all other assets, both real and personal, not covered by or included hereinbefore.

Third. The liabilities of th e company specifying:

1. The amount of lo sses due and yet unpaid.

2. The amount of claims for losses resisted by the company.

3. The amount of losses not ye t due, including those reported to the company, on which no action has yet been taken.

INSURANCE LAws.

5

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. The amount of income received from other source-s. Fifth. The expenditures during t~e 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 offi cers of the company.
4. The 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.

6

INSURANCE LAWS.

Amount ot capital stock

Sec. 3. Be it further enacted, That no insurance

required of home and

company of whatever class, except such companies

foreign fire,

marine, inland, life,

as have already been chartered by this State, Ma-

accident, live stoclc,

sonic, Odd Fellows, religious and mutual aid societies

and steamboiler Insur.

and

co-o p e r a t ive

or

assessment

life

insurance

com-

ance com-

panies, and how In-

panies, shall be allowed to transact any business of

vested.

insurance in this State, unless possessed of at least

one hundred thousand dollars of actual cash capital

paid up, or as sets and invested in bonds or stocks,

estimated at their actual market value at the date of

the statement required by section second of this Act,

or in mo rtgages on real estate worth double the

amount for which the same is mortgaged. Upon fil-

ing such tatement, the Insurance Commissioner,

when satisfied that it is correct, and that the com-

pany has fully complied with the laws regulating the

business of ,insurance in this State, shall i ssue

license to aid company to tran sact business in this

State. Said statement and license must be renewed

annually on the first day of January, or within sixty

days thereafte r , and must show the condition of

said company on the thirty-first day of the preced-

ing December.

All insurance com panies required to make semiannual statem-ent s to the Governor.

In addition to this statement above required, all companie , including co-operative or a sses sment life insurance compani es doing business in thi s State, shall, through their chief officer or agent, residing in this State, make to the Governor of the State semi-annual statements on the first day of January and July of each year, or within sixty days th ereafter , which statement shall contain a full

INSURANCE LAws.

7

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

Must be published.

and required under the second section of this Act,

which shall be sworn to by the officer or agent mak-

ing the same. That at the time of making such

report to the Governor each company shall publish,

at its own expense, a duplicate thereof in a news-

paper of general circulation published in this State.

That should any one of such insuranc e companies

fail or refuse to make said statement to the Gov- Penalty tor

failure to

ernor, it

shall,

by

such

failure

or

refusal, forfeit

its

make semiannual stat e-

right to do business in this State until the first of ment.

January of the next year, and on such failure or

refusal the In surance Commissioner shaU r ecall and

cancel the licen se of such delinquent company.

Sec. 4.

Be it further enacted, That all fire, marine

Deposit ot $10,000 re-

and

inland insurance

companies

c h a r t e r ed

by

other

quired of fo r ei gn fire,

States

or

foreign

governments

shall

be

r equired

to

marine inland

anu

insurance

deposit with the Treasurer of this Stat e bonds of companies.

the United States, or bonds of this State, which, ac-

cording to the Acts and r esolutions of the General

Assembly, 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 especially deposited by him in the vaults of the

'rreasury, 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

8

INSURANCE LAWS.

of the Treasurer'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 receive them, or disposed of as hereinafter provided.

V\TJ1ere loss That whenever any loss insured against occurs,

occurs, in~

sured may give notice

the insured, in order to secure his recovery, may

to 'l'reasurer. give notice to the State Treasurer of the pendency

of said 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 lo ss, a suf-

ficient 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 plain-

tiff may file an application with the judge of the

Superior Court of the county where_ th e case was

tried for a receiver to take charge of so many bonds

as shall be necessary to satisfy the afor.esaid judg-

ment.

When re- When said receiver is appointed by the judge, who

ceiver may

be a ppointed, and his

shall always require bond and security of him for

duties.

the faithful performance of his duty, said State

Treasurer, on his application, shall deliver to him

bonds sufficient in their market value, if in his cus-

tody to satisfy said judgment. Said receiver's re-

ceipts shall be a complete discharge to said Treas-

INSURANCE LAws.

urer and the State of Georgia. Then said receiver shall apply to the judge of said Superior Court fo r an order of sale and in pursuance of said order sell said bonds. After deducting such expense_s and commissions as shall be allowed by said judge, be shall pay over to the plaintiff or bis attorney a sufficient amount to satisfy the said judgment, and if there remains any residue in the bands of such receiver, he ball pay over the same, to the agent of the company, taking his receipts for the same, which shall be filed and recorded with the other papers in the
case.

If

there

are

conflictin g

claims,

then

the

State

When there are confl ict-

Treasurer shall deliver over to the receivers, in the ing claims.

order of their applica_tions, the aforesaid bonds and

if there is any contest between creditors which can-

not be settled in this mode, then the party not receiv-

ing sufficient bonds through the receiver appointed

in his behalf, may become a party to the other case

and make known his claim to the other r eceiver 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 inter-

pleader, as in cases of equity.

When any company desires to withdraw from the When a

State

and

will

satisfy

the

Commis si o n e r

that

all

company wishes to

withdraw

suits

pending

against

such

party

and

of

which

no

from the State.

notice has been given, have been fully satisfied, or Amended

whenever

no

notice

of

claim

has

been

given,

and

by Act a pproved.

when rights under existing policies have been sati s- Aug. 6, 1019.

INSURANCE LAWS .
fied and released, as the provisions of this Act require, then said Treasurer shall return to said party the bonds so deposited upon order from said Cornmiss10ner.

Where bonds deposited

Whenever, by means of the prov1s10n s of this

are reduced Treasurer

Act, the amount of bonds so deposited are reduced,

shall notify Insurance

said Treasurer

shall

at

once

notify

the

I n s u r an ce

Commis-

sioner.

Commissioner in writing, who shall give notice to

the company depositing, and require more bonds to

be depo sited 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

revoked and said Insurance Commissioner shall, at

the same time, give notice by publication in a new s-

paper published at _the capital of the fact of 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 dep6sit 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, be.

fore 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 policyholder s above designated, which notice

shall be published once a week for two months in a

newspaper to be designated by the Insurance Com-

missioner of the State, and at the expense of said

INSURANCE LAws.

11

company; and it is hereby proyided tha t 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 sha11 be with-
drawn .

Sec. 5. Be it further enacted, That all life and

accident insurance companies chartered by other

tate of the United_States, or for eig-n governments,

hall show by a certificate from the officer having

upervision of the insurance department in the

State in which they are chartered, or elect to make

their deposit, that they have deposited not less than

Life companies shall

one hundred thousand

dollars,

in such

securities

as

furnish certificate of

may be deemed by such officer as equivalent to

cash,

Insurance Commis-

sioner where

subject

to

bis

order

as

a

guarantee

fund

for

the

chartered that they

ecurity of policyholders of said companies.

have deposi. ted $100,000.

All

such

companies

chartered

by

the

State

of

Home Jlfe companies

Georgia

shall,

before

doing

business

in

this

State,

shall deposit.

deposit with the Insurance Commis ioner 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 equiva-

lent to cash, to be subject to his order a a guaran-

tee fund for

the security of the policyholders of the

Ame11ded by Act ap-

proved

company making such deposit; all interest and divi- August 2!l,

1905.

dends arising from such securities to be paid when

due to the company so depositing them. Any such

securities as may be needed by the company may

be taken from said Insurance Commissioner or cor-

poration at any time by replacing them with other-

securities equally acceptable to the h~mran,ce Com-

12

INSURANCE LAWS.

missioner, whose certificate for the same shall be furn ished to the company.

Ins urance Commissioner may Investi gate the at'!alrs or any in surance company .

Sec. 6. Be it furth er enacted, That it shall be the duty of the Insurance Commissioner , whenever he hall deem it expedient so to do, and be is hereby empowered, either in person or by an expert examiner by him appointed, to investigate the affairs of any insurance company doing business in this State; to require free access to all book s and papers of any company, or the agents thereof; to summon and examine under oath any person in this State relative to the affairs and cond ition of said company; for probable cau se to visit at its prin cipal office whereever it may be, any in surance company not of the State in which the substantial requirem~nts of this Act, as to valuations of policies of life and accident insurance companies, and calculations for the reinsurance reserve on fir e, marine and inland in surance companies, are not in force and doing business in this State, for the purpose of investigating its affairs and condition, and revoke its authority to do business in this State, if said company refu ses to permit the examination. All expense incurred in the investigation of said companies shall be paid hy the companies so examined.

Tnsurance Commls.

Sec. 7. Be it further enacted, That for every fire

sloner shall calculate re -

insurance

company

doing

business

in

this

State,

the

In s u r a n c e

reserve for unexpired

Insurance Commissioner shall calculate, or cause to

flre risks. !Je calculated, the reinsurance reserve for unexpired

fire ris~; by taking fifty per centum of the premium

INSURANCE LAws.

13

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 again t the company the reinsurance reserve as above determined for fire, marine and -inland in surance, and adding thereto all other debts and claims against the company, he shall, in case he finds the capita] stock of the compa:ny impaired, give notice to said company to make good its whole capital stock within nin ety days, and if this is not done, he shal] 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 provision s of this Act.

Any

such

in su r a n ce

company

receiving

the

afore-

Insurance companies

. aid

notice

of the

I n su r a n ce

Commissioner

to

make

shall call upon stockholders,

good its wbo]e capital st ock within ninety days, sha]] when.

forthwith call upon its stockholders for such

amounts a will make its capital equal to the amount

fixed by the charter of said company.

In

the

case

of

companies

chartered

by

other

When Ina. Com. shall

States

or

foreign

governments,

the

Insurance

Com-

accept calculations of

missioner

of

this

State

shall

accept

calculations

of

reserve made by

other Ins.

the reinsurance reserve made by the Insurance Com'ra.

Commissioner of the State in which they are char-

tered, when such calculations are made and fur-

14

INSURANCE LAWS.

nished to the Insurance Commissioner of this State bythe first of March in each and every year.

vVhen Ins. Company ls

Whenever the Insurance Commissioner shall

insolvent or

fraudulently have reason to believe from an examination into the
conducted.

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 1-1-ct, 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 com-

pany 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 in-

solvent, a decree shall be entered annulling the ac-

tion of the Insurance Commissioner in the premises,

and authorizing the company to resume business.

Ins. Com'r shall calcu-

Sec. 8. Be it further enacted, That the Insur-

late net value of

ance Commissioner shall, as soon as' practicable, in

policies,

when.

each alternate year, calculate, or cause to be calcu-

lated, the net value, on the 31st day of December of

the previous year, of all the policies in force on that

day in each life insurance company chartered by

INSURANCE LAws.

15

this State, and in every other life insurance company doing 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 bJl'. the State in which it may elect to have its policies valued, and its deposit made, giving the net value of all policies in force in the company on the 31st day of December of the preceding year, which calculation of the net value of each policy shal1 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 anr.um, 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 ta:ble of mortality and rate of interest designated.

In case it is found that any life company doing Where a

company Is

business in this State has not on hand the net value

below standard

of

of all its policies in force after other debts of the legal safety.

16

INSURANCE LAws.

company and claims against it, exclusive of capital stock, have been provided for, it shall be the duty of the Insurance Commissioner to publish the fact that the then existing condition of 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 ~aving 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 an
debts and claims against it, exclusive of capital stock, have been-provided for.

When valuations made

He shall accept the valuations made by the Insur-

by Commis-

sioners of other States

ance

Commissioner

of the

State under whose

author-

shall be accepted.

ity a life insurance company is chartered, when

such valuations have been made on the basis men-

tioned above; provided, the company shall furnish

to the Insurance Commissioner of this State, on or

before the first day of March .in each and every al-

ternate year, a certificate from the Insurance Com-

missioner of such State, setting forth the value, cal-

culated on the dates designated above, of all the poli-

cies in force in the company on the previous 31st

of December, and stating that after all the other

debts of the company and claims against it at that

time were provided for, the company had in safe se-

curities 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

INSURANCE LAWS.

17

which the statement is made, that fails to furnish promptly the certificate aforesaid, shall be requited to make full detai]ed list of policies and securities held or owned by the company to the Insurance Commissioner of this State, and shall be liablP. for all charges and expenses consequent upon not havino- furnished said certificate.

It shall be the duty of the

Commissioner, after he

When Ins. Commis

bas notified a life insurance

company

chartered by

sloner shall make rigid

examlna

thi

State

to

cease

doing new business until the net

tion Into affairs of

value of its policies in force is equa] to that called company.

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 publishing the facts in the case, permit

such company to continue its business for one year,

provided there is in his opinion, reason to believe

that the company may be able to re-establish the legal

net value of all its policies in for ce. At the end of

the year named above, he may renew the permis-

sion, in case, on examination, he is satisfied that the

company is likely to retrieve its a-ffairs.

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 the business 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.

18

INSURANCE LAws.

Defining who are In-

Sec. 9. Be it further enacted, That any person

surance agents.

who solicits in behalf of any insurance company, or

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 appJi.

cation 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 re-

ceive or tran smit the same, or who shall receive or

deliver a policy of in surance 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 exam-

ine into or adjust or aid in adjusting any loss for or

in behalf of any such company, whether any of such

acts shall be done at the instance or request or by the

employment of such insurance company, or of or by

any broker or other person, shall be held to be the

agent of the company for which the act is d.one or

the risk is taken.

Agents, penalty tor

Any person who shall do or perform any of the

acting with-

out
ity,

author-

acts or things mentioned for any insurance company

or agent of said company without such company hav-

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 con-

viction in any court of competent jurisdiction, shall

INSURANCE LAws.

19

be punished a s provided by Section 4310 of the Code Section 106 5, Code
of Georgia, and shall al so pay a sum equal to the 1910. tate, county and municipal taxes and licenses re-
quired to be paid by insurance companies legally doing busin ess in thi s State ; and it is hereby made the duty of the In surance Commissioner t o see that all viol ators of t he provisions of this section ar e
pro ccuted.

\ ny per on who shall do any of the acts mentioned When ad-

in thi

Section

shall also

be

personally

liable

to

the

justers are not liable.

holder of any policy of in surance in respect of which

:-uch act was done, fo r any loss covered by the same;

prot:ided, that the penalties provided for in this Sec-

tion shall n ot apply t o adj usters of unauthorized in-

. urance companies from whom citizens of this State

hnve purcha sed in surance for themselves as provided

for in this Section, whenever the person or persons Amended b y Act ap-
purchasing said insurance shall immediately notify proved December 23,
the In surance Commission er, giving the names and 1890.

locality of each company in which they have policies,

and at the same time pay to said In surance Commis-

!-ioner the same license fees and t axes for each com-

pany as are now or may herea ft er be required of

fire insurance comp anies authorized t o do business

by the laws of this State. And when th e licen se 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

aid company during the said year, but only for such

20

INSURANCE LAWS.

taxes on premiums as may be required from time to time of insurance companies authorized to do business in this State.

Shall file

Sec. 10. Be it further enacted, That any insurance

with Insurance Com.

company not incorporated or organized under the

missioner. a power of at-

laws

of

this

State,

desiring

to

transact

business

in

torney.

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 resident of this

State, to acknowledge or receive service of process,

and upon 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 consenting 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 corporatiom

doing business in this State.

If an attorney so appointed shall absent himself from this State, or his usual place of business or

INSURANCE LAws.

21

abode,

or shall secrete

himself,

so

that process

may

When Ins. Commis-

not be

served upon. him,

or

shall

have

become

dis-

sioner may appoint an

attorney.

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

Commissioner written notice thereof, or until the

company shall h;;i.ve made another appointment in

the manner above prescribed. Service of process as

aforesaid, issued by any such court as aforesaid

upon any such attorney appointed by the company,

or by the Insurance Commissioner, shall be valid and

binding and be deemed personal service upon such

company so long as it shall have any obligations or

liabilities outstanding in this State, although such

company may h_ave withdrawn, been excluded from,

or ceased to do business in this State. If any com-

pany shall fail, neglect or refuse to appoint and

maintain within the State such attorney or agent, it

ha]] 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 govern11.~ni, doing a business in any manner, until said

22

INSURAN CE LAWS.

\
company has fully complied with the provisions of

this Act, and received from the Insurance Commis-

sioner certificates of authority for itself and its

agen ts t o transact business in this State. The fees

of the Insurance Commissioner shall be as follows:

Fees of Insur a n ce

F or filing certified copy of charter, $20.00; for ex-

companies. amination of annual statement, $20.00, and for certifi-

cates of authority or license to agent s, $3.00 each,

one-fifth of which shall _be paid to the Commissioner

in full compensation for services in executing the

Amended by provisions of this Act. In addition to the payment

Act of

August 16, 1909, as to

of the above fees, each of the said companies shall

fire companies.

make a r eport to the Commission er on the first day

Fire Insur. ance Commissioner.

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

Amended Act of

by

every character

and

description

(deducting returned

Aug. 10, 19!2.

.premiums on cancelled policies) of said companies

in this State during the year or fractional part of

the year ending the 30th day of April next preceding,

whether said premiums were received in money or

in notes, cr edits or any substitute for money, to be

taxed as may be provided by law from time to time.

Sec. 12. Be it furth er enacted, That every local insuran ce agent, or firm, doing bu siness in this State, shall pay a tax of ten doll ar s f or each county in which they shall solicit business. and every agent of a matrimonial, natal or nuptial company, or traveling special or general agent of life, fire, accident or ()ther insurance company doing business in this ~ta.te. shall pay.: a tax of fifty dollars, whic,h said

INSU RAN CE LAws.

23

ent must pay before he or they shall be authorized

::act as an agent for any of their companies. Said

tax shall be paid by said agent to

the

Comptroll er-

Amended by General T ax

Act.

General, and shall be in addition to the license fee

required of insurance companies . by the Act ap-

proved October 24, 1887. The receip:s of the Comp-

troller-General for the payment of this tax, toget her

with his certifi cate, as pr ovided by said. Act, ap-

proved October 24, 1887, shall c_onstitute the_li cense

for said agents to transact busmess for their com-

panies as designated by sa id cer tificates ; provided,

this tax shall not be r equired of agents of assessment

life insurance companies or mutual aid societies.

ec. 13.

Be it further

enacted, That whenever t he

Where States

other re-

existing laws of any oth er State of the United States

quir e larger deposits

shall

require

of

i n s u r a n ce

com p an i es

chartered

by

than this State.

this State, and having agencies in such other Stat e,

or of the agents thereof, any deposit of securities in

uch State for the protection of policyholder s 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 Sta.te,

hall 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

24

I NSURANCE LAws.

such charges imposed by the laws of such State upon companies of this State and the agents thereof.

Assessment or Co-Opera-

Sec. 14. Be it further enacted, That it shall not

tl ve compan ies.

be lawful for any corporation or a ssociation organ-

ized under the laws of this or any other States of the

United States for the purpose of furni shing life in-

Amended by demnity or insurance upon the assessment plan by

Act approved

its agents, to do any business in this State until such

August 23,

190 5.

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 n ext preceding December,

sworn to by the President or Secretary or like offi-

cers thereof, setting forth the number and amount of

certificates of membership or policies in force and a

detailed account of its expenditures, in come, assets

and liabilities, and also a certificate sworn to by the

President and Secretary or like ofiicers thereof, set-

ting 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 ordi-

nary 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 certificate 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,

INSURANCE LAws.

25

:drtifying that it _is legally entitled to do business in home 8tate; 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 mu st show that all indemnities to beneficiaries are in the main provided for by assessments up on all surviving members. And when ever said company
ball fail to pay a valid claim to the full limit named
in any policy issued by them to any r esident of this tate, the Insurance Commissioner shall r evoke their
authority to do business in this Stat e.

ec. 15.

Be it further enacted, That aft er author-

Agen ts , how

izing such corporation or association to do busin ess licensed.

in this State, as provided in this Act, the Insurance

ommissioner shall issue license to agents thereof

to be designated by the corporation or association,

or a general agent ther eof, authorizing them t o act

as snch agents during the y ear for which said com-

pany is licensed; but such license must be renewed

annually.

Sec. 16.

Be

it

further

enacted,

That

any

agent ,

Securing policies on

physician

or

oth er

p e r son

who

shal~

knowingly

se-

person s without

cure, or cause to be secured, a certificate of member-

th eir knowl edge.

hip on any person without his knowledge or consent,

or by any means of misrepresentation, fal se, fraudu-

lent or untrue statements, be instrumental in secur-

ing a certificate of membership on any aged or infirm

person, or in restoring to membership any per son not

in an insurable condition, shall be deemed guilty of

a misdemeanor, and upon conviction ther eof shall bP.

26

INSURANCE LAws.

fined in a sum of not less than one hundred dollars nor more than one thousand dollars, or be imprisoned in a county jail not less than thirty days, nor more than one year, or both, in the discretion of the Court, and said certificate or renewal so secured shall be absolutely void.

- .AJnnual

Sec. 17. Be it furth er enacted, That every corpo-

s t a tements, how verified, etc.

ration or association which may be doing business in

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 busine ss 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 Com-

missioner, and shall be verified under 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.

Fees and taxes.

Sec. 18. Be it further enacted, That there shall

be paid to the Insuran ce Commissioner by each cor-

poration or association when it is authorized to do

business in this State under the provisions of this

Amen d ed Tax Act,

by

Act,

the

same

fees

as

required

by

Section

11

of

this

1909.

Act, together with all such subsequent fees as are

prescribed under said Section 11. In addition to the

foregoing fees, every such corporation or associa-

tion shall, on or before the fir st day of July of each

year , report, under oath of its President and Secre-

tary, or other like officer, to the Insurance Oommis-

INSURANCE LAws.

27

oner the gross amount received on business done
:ext the State during the year ending the 30th of April preceding, and shall at the same time pay into the treasury of this State a tax of one dollar upon ach one hundred dollars of such gross amounts so received by said association or corporation; protJUled, however, that if such corporation should at any time be the owner of any real or personal proprty situated in this State, such property shall not be exempt from taxation by reason of the provision s of this Section.

ec. 19.

Be it further

enacted, That if

such cor-

Failure to file annual

ration or association shall at any time fail

or re-

report or pay taxes,

fa e to make the annual report, or to pay the tax on pen alty.

be gro s 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. hall publish such revocation in some newspaper

published in this State, and may proceed to coJlect

hatever 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

ociation.

c. 20. Be it further enacted, That nothing1 in Fraternal,

this Act contained shall apply to or be construed to

secret or in dustrial

require any fraternal or secret or industrial societies, societies.

or other associations

exempt by law,

now

organized

Amended Act ap-

by

proved De-

or to be organized in

this

State,

to

pay any

license

cember 1900 .

17,

fee or tax, or to make or file reports.with the Insur- Amended by

ance

Commissioner,

or

to

prevent

the

same

from

Act approved Aug.

19, 191 2.

28

INSURANCE LAws.

doing busines s in this State, when the money, benefit t
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.

Fidelity Insurance re-

Sec. 21. Be it further enacted, That any corpora-

quirements, amount of

tion now or hereafter organized under the laws of

capital, etc.

this State, for the purpose of transacting the busi-

ness of fidelity insurance, shall be licensed to tran-

sact business upon compliance with all the require-

Amended by ments in this Act prescribed with reference to life

Act approved De-

in surance companies organized under the law of

cember 24,

18 96.

the State, so far as the same may be applicable to

such fidelity insurance company. Any fidelity insur-

Amended by ance company incorporated and organized under the
Act ap-
proved Aug. laws of any other State of the United States, or
16, 1912.
foreign governments, and which has paid-up capital

of not less than two hundred and fifty thousand dol-

lars, may be licen sed to transact business in this

State upon compliance with all the requirements pre-

scribed by this Act, so far as the same may be appli-

cable for license to foreign life insurance companies

to transact business in this State.

Live stock and steam-

-Sec. 22. Be it further enacted, That all live stock

boiler requirements,

and steam boiler insurance companies chattered by

etc.

this State or other States of the United States or

Amended by Act ap.

foreign

governments,

and

doing

business

in

this

proved December 14,

State, shall be subject to all the requirements of this

18 95.

Act in relation to life insurance companies, except

the r equirements in relation to the valuation of

poli cie s.

INSURANCE LAws.

29

ec. 23. Be it further enacted, That the Insurance Oaths Insur-

ance Com-

ommissioner,

and

such

person

or

persons

as

may

missioner may admin-

be appointed by him to make inspection, are hereby ister.

authorized to administer any and all oaths to parties

and witnesses, as required under the provisions of

this Act.

Sec. 24. Be it further enacted by the authority aforesaid, That a11 laws and parts of laws in conflict with this Act be, and the same are, hereby repealed.
Approved October 24, 1887.

30

INSURANCE LA ws.

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 sure ties on bonds re. quired by law to be taken; and to make said com. .panies liable on such bonds as individuals are on all of said bonds, and for other purpo ses 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 contemplated by this Act is one whereby a fidelity insurance company ~r 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 cau sed by the defalcation, default, neglect or dishonesty of trustees, officer of the law, officers of court, agents or other employees, and such other person s as may be required to give bond, or guarantees the performance of all such bonds or other obligations in favor of the insured as individuals now do under the law who sign the bonds of all such persons as sureties.

Amount ol capital re.

Sec. 2. Be it further enacted, That any fidelity

quired.

insurance company, or such other corporation or

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

INSURANCE LAws.

31

:r~aid-up capital of not less than two hundred and thousand dollars, and which shall have complied

'th all requirements of law for licen se to and the

transaction of business by such companies in this

tate, may, upon proper proof thereof, and upon

production of evidence of solvency and credit satis-

factory to the judge, bead of department, or other

officer or officers in this State authorized to approve

and accept bonds, be accepted as surety upon the

bond of any person, company or corporation re-

quired by the laws of this State to execute bonds, in

lieu of any surety or sureties, as now required by

la ; any such fidelity in surance. company or other

companies in this State, doing a fidelity insurance

bu iness, may be released from their liability on

ch bonds, on the same terms and conditions as are

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

doin a fidelity insurance business to become the

ety on all such bonds required by law to be taken

'th all the rights and subject to all the liabilities

of individuals.

Sec. 3.

Be

it

further

enacted,

That

any

fidelity

Estopped from deny-

urance

company,

or

such

other

co r p o r a t i o n

or

Ing corporate power

to execute.

mpany as may be doing a fidelity insurance busi-

D in this State, which shall execute any bond or

ety under the provisions of this Act, shall be

topped in any proceeding to enforce the liability

hich it shall have assumed or incurred to deny its

rporate power to execute such instrument or as-

e such liability.

32

INSURANCE LAws.

How sued and how to

Sec. 4. Be it further enacted, That in the event

perfect service.

any such :fidelity insurance company, o,r 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.

poration or company shall be subject to be sued on

such bonds or obligations in the county of the resi.

dence of the . principal on 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; pro-

vided, that said companies, before beginning busi-

ness in this State, or signing any bond, shall obtain

Amended by
Act of Aug.

a licen se from the Comptroller-General, which license

19, 1912. shall be revoked if said companies, as to any bon

as to business in this State, shall begin suit in the

United States Court, or remove, or cause to be re-

moved, any suit thereto.

Sec. 5. Be it further enacted, That all laws and parts of laws in conflict with this Act be, an d the same are, hereby repealed.

Approved October 21, 1887.

INSURANCE LAWS.

33

TAXATION.

Basis and Rate-Return and Collection.

Tax Act of 1887-All home and foreign

insurance

Tax of one per cent. on

mpanies doing business in this State, shall pay one premiums.

r cent.

on

all

premiums

in

money,

or

otherwise,

Amended by Tax Act of

ived by them.

1909 .

Section 6 of the General Tax Act of 1909, iming taxes for the years 1910 and 1911. Be it further enacted by the authority aforesaid, t alkforeign and home insurance companies, dog bu iness in this State shall pay one per centum all premiums, in money or otherwise, received by
, upon the gross receipts of such in surance com'es on business done in the State for the year. Provided, this sha11 not include return premiums on celled policies.

(2.) Be it furth er enacted by the authority afore-
a, That every fire insurance company and life in-
ance company incorporated under the laws of this te and doing business on the legal reserve plan 1 ~ l be required to return for taxation all of its real tate as other real estate is returned, and all of the r onal property owned by such company shall be
turned as other personal property is returned for'
tion. and the value 'of the personal property
owned by it shall be ascertained in the following manner:

From the total value of the assets held by the comboth real and personal, shall be deducted the

34

INSURANCE LAws.

assessed value of all the real estate owned by th
company in this State; the non-taxable bonds depoa. ited by the company with the State Treasurer an the amount of the reserve or net value of its polici required by law to be held by the company for it policyholders and which belong to such policyhold. ers; the remainder shall be the value of the person property owned by and taxable against such colllpany.

(3.) Be it furth er enactetl by the authority aforesaid, That whenever any insurance company, doing business in this State, shall make it appear by proof satisfactory to the Insurance Commissioner that one-fourth in amount of its total assets are invested in any or all of the following securities or property,
to-wit : Bonds of this State or of any county o,
municipality of this State, property situated in this
State and taxable therein, loans secured by liens on
real estate situated in this State, or policy loans secured by insurance policies issued by such company on lives of persons re sident in this State, then the premium tax levied 'by the first paragraph of this Section, shall be abated or reduced to one-half of one per centum upon the gross receipts of such company, and if the amounts so invested by any such company shall be as much as three-fourths of the total assets of such company, then said premium tax shall be abated or reduced to one-tenth of one per centum upon such gross r eceipts of such company:

General Tax Act of 1909, approved Aug. 16, 1909.

INSURANCE LAws.

35

829.

Payments

must

be

made

in

the

funds

in

Payment. how made.

hich taxes may be paid at the State Treasury, ft.3e

IDY expense to the State.

79,

If

any

corporation,

company,

person,

Ins. Com'r to Issue fl.

agency or institution, who are required to make their

fa. against delinquent

corporations.

rn to the Insurance Commissioner, shall fail to

turn the taxa!ble property or specifics, or pay an-

pl)y the taxes for which they are liable to the State

urer, the Insurance Commissioner shall issue

st them an execution for the amount of taxes

according to law, together with the costs and

alties.

. When there is no return by which to assess

tax, the Insurance Commissioner

shall, from the

Where no return, Ins.

t information he can procure, assess in his discre-

Com'r to assess.

on.

The execution issued by the Insurance Com-

Fl. fa.

.

ioner against any

company shall be directed to

against a company,

nd singular the sheriffs and other lawful officers

how directed.

the State, with directions to levy the same on th~

perty of the corporation or company, with power

i ue and serve garnishment upon the debtors of

e corporation.

against agents of foreign

Fl. fa. vs.

titutions,

as

aforesaid, shall

be

against

the

prin-

a gents of foreign com-

. al agent or his successor, and shall authorize the panies.

cer to levy on all the property of the agency, to

ze its money, notes or other effects.

2850. Insurance companies shall pay damages
laen. [The several insurance companies of thi:::

36

INSURANCE LAWS.

State, and foreign insurance companies doing busiIiess in this State, in all cases when a loss occurs, and they refuse to pay the same within sixty days after a dem~nd shall have been made by the bolder of the policy on which said loss occurre,d, shall be liable to
pay the holder of said policy, in addition to the loss I
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 caae 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.]

INSURANCE LAWS.

37

AN ACT
0 aJDend Section 3408 of the Code of Georgia with reference to the venue of suits against Insurance
ompanies .having more than one place of busine s in this State, and for other purposes.
ection 1. Be it enacted by the General Assembly the State of Georgia, That from and after the
e of this Act, Section 3408 of the Code of rgia be, and the same is, hereby amended by ding in the seventh line thereof, between the words bu iness" and "was," the words "or in any county ere such agency or place of doing business,'' so t said Section, as amended, will read a s follows, wit: Whenever any person may have any claims demand upon any insurance company having cies, or more than one place of businMs, it shall lawful for such person or person s to institute suit st said insurance company within the county re the principal office of such company is located
in any county where said insurance company may e an agency or place of doing business, or in any
ty where such agency or place of doing business located at the time the cause of action accrued,
the contract wa s made, out of which said cause of

38

INSURANCE LAWS.

AN ACT

To prescribe the manner and mode of making returns by insurance companies, and for other pur. poses.

Rr,reetmurlnusmsof

Section 1. Be it enacted by the General Assembly

~~stt"g~~lon of the State of Georgia, That from and after the

name O'f agent.

first of May, 1882, in urance companies doing busi.

Amended by ness i.n this State, in making their returns to the

f 19 9'i\: \.ug. '

Co m p tro l l e r -Gene r a l

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 unpaid

by agencies.

Returns

-Sec. ~- Be it further enacted by the authority

must be

made by July 1s t and

aforesaid,

That

the

r eturns

p r o v id ed

for

in

the

pre-

tax paid. ceding Section shall be made by the president or some

Amended by other u]y authorized officer of the company, duly

Act Aug. 19,

1912.

sworn to, and shall be forwa rded to the Comptroller-

General on or before July 1st of each year; and at

time of making such return s the amount of tax due

by said company upon premium receipts or other-

wise shall be forwarded to the Treasurer of this

State.

Returns made from

Sec. 3. Be it fur ther enacted by the authority

May 1st to April 30th.

aforesaid, That the returns hereinbefore required to

be made to the Comp troller-General shall embrace

Amended by Act Aug. 19,

the

period

of

time

commencing

May

1st

and

ending

I 912.

INSURAN CE LAws.

39

"th April 30th next preceding the date of the return

Company must notify

e, and companies making

the

same must notify

Comp. Gen. of name of

a ttorney

Comptroller-General

or

officer

or

agent

in

this

a gainst whom pro-

te against whom legal process shall issue in case

cess must Issue.

1,ecomes necessary for the Comptroller to issue Amended by
fa. against said companies for any violation of the fg~\~ug. 19,

in this State governing insur ance companies, or

the non-payment of taxes due by them.

ee. 4. Be it further enacted by the authorJ.ty resaid, That all laws and parts of laws in conflict th this Act be, and the same are, hereby repealed.

40

INSURANCE LAWS.

AN ACT

To amend the third paragraph of Section 9 of an Act entitled an Act to regulate the business of insurance in this State, approved October 24, 1887, and for other purposes.

Par. 3 or
Sec. 9
amended.

Section 1. Be it enacted by the General Assembly of Georgia, and it is hereby enacted by the authority of the same, That the third paragraph of Section 9 of an Act entitled an 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 '' adjusters,'' the words '' or inspectors,'' and to add at the close of said paragraph the following words: " provided, further, that it shall not be lawful for the said inspectors to solicit business for their companies,'' so that, thus amended, said paragraph shall read as follows:

Paragraph

'' Any person who shall do any of the acts men-

as amended tioned in this Section shall also be personally liable

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 citizens of this State have purchased in-

surance for themselves as provided for in this Sec-

tion, whenever tb.e person or persons purchasing said

insurance shall immediately notify the Insurance

Commissioner, giving the name and locality of said

INSURANCE LAws.

41

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 companies authorized to do business by the laws of thi s State; and when the license fees for any company have been pp,id in an_y one year by any person or persons who have purchased insurance from sajd company, then, in that case, any person or persons purchasing insurance from said company thereafter shall not be liable for the license fee s 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 business in this State; provided, further , that it shall not be lawful for said inspectors to solicit business for their companies.''

Sec. 2. Be it further enacted by the authorjty aforesaid, That all laws and parts of laws in conflict with this Act be, and the same are, hereby repealed.

Approved December 23, 1890.

42

INSURANCE LAws.

AN ACT

To prevent combinations or pools of insurance companies or their agents, tending to dereat or lessen competition in the business of insurance in the State of Georgia.

Unlawful for companies or agents to make or maintain contracts, etc., affect. Ing competition. oRfevloicceantsioen.

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 it shall be unlawful for any insurance company or companies, authorized to do business in this State, or the agent or agents thereof to make, maintain or enter into any contract, agreement, pool, or other arrangement, with any other insurance company, or companies, licensed to do business in this State, or the agent or agents thereof, for the purpose of, or that may have the tendency or effect of, preventing or lessening competition in the business of ins-r anee tran sacteq in this State. And when it shall be made to appear to tne Gommlssioner of Insurance, that any company or companies, agent or agents, have entered into any such contract, agreement, pool or other arrangement, thereupon said Commissioner shall revoke the license issued to such company or companies, and the same shall not be re-~sued, until the president or chief officer of such company or companies shall file an affidavit with said Commissioner stating that such contracts, agreements, pools, or other arrangements, have been ann~l1ed and made void; provided, that nothing in this Act shall be so construed as to prevent any insurance

I NSURANCE LAws.

43

company,

legally

auth orized to

tr ansact

business in

Surveys, In spectlons,

this State, from separatel y surveying, inspecting or etc.

examining the pr emises t o be insu r ed by and with

the consent of th e owner, for the purpose of bringing

about improvements in fire p rot ection, so as to 1essen

the cost of insurance by reducing r a tes.

Sec. 2.

Be

it

further

enacted

by

the

authority

Compla int by citizens.

aforesaid, That any citizen of this St ate_(who e rates

of insurance have been increa sed, or who has been

refused insurance a t reasonable rates ) shall have the

right to file a written complaint, under oath, to the

best of his knowledge and belief, with the I nsuran ce

Commissioner., charging any company or companies

authorized t o do business in thi tate with a viola-

tion of the preceding Sections of this Act, and that

thereupon it shall be, the duty of the said Insurance

Co mmi ssi o n e r

to

issue

a

citation

addressed

to

the

Citation to com pany

company or

comp ani es against whom said complaint

com pla ined a gainst.

is made, r equiring it or them to be and appear efore

said Insurance Commissioner at a specified time and

place to be fixed by said In surance Commissioner,

not less th an twenty nor more than for ty days from

the date of the filing of sncb complaint, and show

cause why its or their license or licen ses should not

be revoked as provided by the fir st Section thereof;

and it is f'urther provided;, that said cihtion shall be

served not less than t en days fr om 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 in sur ance companies.

44

INSURANCE LAWS.

Practice as to testi-

Sec. 3. Be it further enacted by the authority

mony, etc. aforesaid, That for the purpose of the provision of

this Act, the Insurance Commissioner shall have

powe.r to administer oaths, issue subpcenas for wit-

nesses, hear testimony, issue commissions for taking

testimony by interrogatories, and the party or par-

ties complaining, and the company or companies de-

fending shaH 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 l~w for

Forum. Feea.

civil action in the Superior Court.
The County in which Insurance Commissioner shall
fix the hearing shall be, as to this Act, the lo ci f arum

of said hearing or trial. The costs and fees for the

sheriff or constable, witnesses, and thb commission-

er s taking interrogatories, shall be the same as now

provided by law for similar service in the Superior

Courts of this State, the same to be taxed against

and paid by the party or parties cast in said suit,

and against who said In surance Commissioner

shall find; for which costs said Insurance Commi s-

sioner is hereby 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 1)ctober 21, 1891.

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45

METHOD OF INCORPORATING INSURANCE COMPANIES.

No. 301.
A bill to be entitled an Act to carry into effect Article 3, Section 7, Paragraph 18, of the Constitution of the State, as amended, in so far as the same re. ]ates to the issuing and granting corporate powers and privileges to insurance companie s by the Secretary of State, to define the powers and liabilities of such companies, to regulate the same, and for other purposes.
Section 1. Be jt enacted by the General Assembly of the State of Georgia, and it is hereby enacted by tbe authority of the sa~e, That from and after the passage of this Act all corpornte powers and privi- leges t o in surance companies in this State, shall be issued and granted by the Secretary of State, upon the terms, liabilities, restrictions and subject to all the provisions of this Act and the laws and Constitution of this State. If from nny cause the Secretary of State should be disqualified from 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 further enacted, That any number of persons not less than five may form a company, but before receiving a certificate of incorporation under this A1~t, shall first file a petition in writing,

46

INSU RANCE LAws.

addressed to the Secretary of State, in which petition shall be stated the name and residen ce of each of the persons desiring to form said corporation; the name of the insurance company they desire to have incorporat ed ; the kind or kinds of insurance they propose to carry out; the amount of the proposed capital stock of said company; the n umber of sh&. es of the capital stock each of the petitioners agrees to take; that they do in good faith intend to go forward without delay to raise the capital stock and organize said company ; a request 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 publi bing the legal adverti ements of th e county where the principal office of said company is to be located, once a week for four weeks before the filing of said petition. There shall be annexed to said petition an affidavit made by at least two of the persons forming 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 sworn to shall be filed in the office of the Secretary of State, who shall endorse thereon the date of the filing and r ecord the same in a book to be kept by him for that purpose.

Sec. 3. Be it further enacted, That when said petition ha s 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, greeting:

INSURANCE LAws.


47

'vVhereas, .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 stl;l,tutes in such cases made and provided; therefore, the State of Georgia hereby grants unto the above named persons, their successors and as signs, full authority by and under the same name of (insert name), to exercise the powers and privileges of a corporation for the purpose above
tated, subject to the provisions of the Constitution of this State, and all laws, rule s, and regulations governing ipsuran ce -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, which 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 ComptrollerGeneral), 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 said company, shall be a corporation by the name specified in said petition and certificate, and shall possess the powers and privileges and be subject to ' the provision contained in this Act. Before the

48

INSURANCE LAWS.

Secretary, or when disqualified, the ComptrollerGeneral, 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 courts and places in this State; that when such certificate bas been issu ed, 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 giving such notice as they may deem expedient, they may from time to time receive subscriptions until the whole capital stock is ubscribed. The capital stock of said company shall be divided into shares of one hundred dollars each, (see Section 2201, Code 1910,) and shall not be less than one hundred thousand dollars for each class of insurance to be engaged in; and no insurance company chartered under this Act shall commence the insurance business until at least this amount for each class of insurance to be engaged in is paid in cash, or invest ed in bonds of the United States, of this State, or the cities or counties of this State, estimated at their cash market value, this amount, or in mortgages in real estate in twice the amount-for which the same is mortgaged-which investment 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 Comptroller- 1

INSURANCE LAWS.

49

General, 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 approving 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 shall have ten days' no tice personally, or by depositing said notice in the posloffi ce, postage paid, directed to him at the postoffice nearest his usual place of residence. At said meeting there shall be elected a Board of Directors of not less than :five or more than fifteen, to manage 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 until others are elected to fill their places. No person shall be elected a director unless he be a stockholder, owning stock in his own name or as trustee or personal representative, and who :s qualified to vote at the election at which he is chosen. If for any reason the election is not held at the time appointed, the same may be held at any time thereafter on a notice to all stockholders of ten days; but at any meeting of the stockholders or their legal representatives, the notice may be waived and an election held at once. The directors, when elected, shall

50

INSURANCE 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 directors of said company shall be held in this State. A majority of said directors shall be bona fide 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 sub scribed 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 1business. 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 notice in writing on him personally, or by depositing said notice in the postoffice, postage paid, directed to him at the postoffice nearest bis usual place of residence, stating be 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,

INSURANCE LAws.

51

which notice must 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 be transferable in the manner prescribed by the by-laws of the company; and no share shall be transferable until all previous calls thereon shall have been fully paid in.
Sec. 8. Be it further enacted, That all the powers and privileges and said certificate of incorporation of said insurance company shaU 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 bas not organized and commenced business. 1'he rights, powers, and privileges granted said corporation shall not continue for a longer period than fifty years, unless the same be continued by the Jaws of force at the expiration of said fifty years.
Sec. 9. Be it further enacted, That every life insurance company incorpoiated under this law shall have the power to insure the livei;; of all persons who apply for in surance therein, stand the necessary examinations, and comply with such laws as may hereafter be enacted, and with such reasonable requirements as the directors of such company may establish and to make any and every insurance appertaining to or connected with life risks.
Sec. 10. Be it further enacted, That any fire insurance companies incorporated under this Jaw shall

52

INSURANCE LAws.

have authority to insure against any loss by fire on all kinds of property, either real, ,personal or mixed; also against all the hazards 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 of 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 are necessary for the pur. pose of carrying on a fire insurance company, not in conflict 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 have authority to insure persons against accident, lo ss of life, or personal injury; to provide a weekly indel'.llllity to its members in case of accident, and shall have all the usual and ordinary powers incident under the law and custom of accident insurance, which are not in conflict with the Constitution and laws of this State and the United States.

Sec. 12. Be it further enacted, 'rhat live stock insurance companies, organized under this Jaw, shall have the right and power to insure against loss arising from the de.ath 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.

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53

Sec. 13. Be it further enacted, rrhat 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 sustained by any policyholder, shall 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; provided, no dividend shall be declared until the earnings are sufficient to pay the same, after deducting all expenses and lo sses, 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 empowe.red to issue stock dividends in lieu of money dividends; provided, that the Board of Directors shall decide to. do so, and thereby add to the capital stock not to exceed the highest limits of the capital stock of their charter.
Sec. 16. Be it further enacted, That the Board of Directors of any company organized under this law may, after providing for such reserve as may be required by law, by a majority vote give the holders

54

INSURANCE LAws.

of policies of said company, on any particular line 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 policyholder has the right to participate, it shall not be lawful for any policyholder to participate therein in any of the profits of such company. If the incorporators of any stock company see proper they may embrace 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 policyholders.
Sec. 17. Be it further enacted, That every corporation organized under this Ad 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 perman ent 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 branch office or agency, and may sell and dispose of the same at pleasure. It may also buy, own, and sell any realty that may be necessary for the protection of any loan it may make.

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55

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 further enacted, That stockholders in corporations organized under this Act shall be i~dividually 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 appli- 1 cable, 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.

56

INSURANCE LAWS.

INSURANCE COMPANIES TO PAY FULL AMOUNT OF LOSS UP TO AMOUNT STATED IN POLICY.

o. 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 policyholders the full amount of loss sustained upon the property insured by them; provided, said amount of loss does not exceed the amount of insurance expressed in the policy, and that all stipulations in such policie s 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 value of the property at the time of loss may be r ecovered ; 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. .

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57

LIVE ~TOCK COMPANIES, ACT OF DECEMBER 18, 1893, AS TO METHOD OF INCORPORATION MADE APPLICABLE TO.
No. 120.
An Act to amend Section 21 of an Act approved December 18, 1893, which relates to the issuing and granting corporate powers and privileges to insurance companies by the Secretary of State, to define the powers and liabilities of such companies, to regulate the same, and for other purposes, by making the same apply to "live stock" companies.
Section 1. Be it enacted by the General Assembly of Georgia, and it is hereby enacted by authority of the same, That Section 21 of an Act approved December 18, 1893, which relates to the issuing and granting corporate powers and privileges to insurance companies by the Secretary of State, to define the powers and liabilities of such companies, to regulate same, and for other purposes, be, and the same is, hereby amended by inserting in said Section after the word ''life,'' in the third line thereof, and before the word "or," the words "live stock" so that said Section, when amended, shall read as follows:
Section XXI. 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 co-operative fire, life, live stock, or accident insurance companies, but applicants for this class of insurance shall not be required in their petition to set

58

INSURANCE LAws.

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. 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 14, 1895.

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59

GUARANTEE, ETC., COMPANIES MAY BECOME SURETY ON BONDS OF CITY, COUNTY AND ST'ATE OFFICERS.

An Act to authorize solvent Guarantee Companies, Surety Companies, Fidelity Insurance Companies, and Fidelity and Deposit Companies to become 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, and Fidelity and Depo sit 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 $25Q,OOO, and which shall have complied with all of the requirements of law as to license required by the St ate, may, upon proper 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 various officers of this State whose duty it is to approve the sureties upon such bonds are hereby authorized to accept such company or companies as one of the sureties or the only surety upon such bonds as the solvency of such company may warrant; provided, no company shall be relieved of its liability upon any

60

INSURANCE LAws.

such bond by reason of the fact that the books and accounts of the principal have been examined and approved as correct by the proper authorities wb.en in fact there has been a breach of said bond and a loss accruing from such breach.
Sec. 2. Be it further enacted, That such companies may be taken as the sole surety upon all attachment bonds, whether such companies have or do not have real estate in this State.
Sec. 3. Be it furth er enacted, That in case of default upon any bond upon which such companies are sureties, then the c;,ity, county and State authorities shall have all the remedies against the principal and sureties upon said bonds as are now provided by
law, including the right to issue fi. fa s. instanter, as
now provided by law. Be it further enacted, That all companies herein described, chartered by this State or other States or foreign governments, now doing business in this State or hereafter doing busin ess in this State, which offers or undertakes to become security upon any bond required by law of city, county or State officers before being accepted as surety ther eon, shall be r equired 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 Assemb]y1 are valid, and which amount, according to their fa ce 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 thi s State, and has settled up all claim s

INSURANCE LAWS.

61

against it, as hereinafter provided, and have been released from all the bonds upon which they have been taken, said bonds shall be delivered up to the proper pa-rty on presentation of the Treasurer's receipt. While 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 faith of the State is pledged that they shall be returned to the parties entitled to receive them, or disposed of as hereinafter provided.
That whenever any loss insured against occurs, the insured, in order to secure his recovery, may give notice to_the State Treasurer of the pendency of said 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: "\hen suit is ended, and the amount ascertained for which said party sued may be liab1e 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 neces s~1ry to satisfy the aforesaid judgment.
vVhen the said receiver is appointed by the judge, who shall always require bond and security of him for the faithful performance of his duty, said State Trrqsurer, on his application, shall deliver to him bond:,:; sufficient in their market value, if in his custody, to satisfy said judgment.

62

INSURANCE LAWS.

Said receiver's receipt shall be a complete discharge to said Treasurer and the State of Georgia. Then said receiver shall apply to the judge of said Superior Court for an order of sale, and in pursuance of said order sell said bonds. After deducting such expenses and commissions as shall be allowed by said judge, he shall pay to the plaintiff or his attorn ey a sufficient amount to satisfy the said judgment, and if there remains any residue in the hands of such r eceiver, he shall pay over the same to tbe agent of th e company, takin g his receipt for the same, which shall be filed and recorded with the other papers in the case.
If there are conflicting claims, then the State Treasurer shall deliver over to the receivers, in the order of their application, the aforesaid bonds, and if there is any contest between creditors which cannot be settled in this mode, then the party not receiving sufficient bonds through the receiver appointed in . his behalf, may become a partF 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 r eceiver shall r eport such claim to tbe judg'e 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 State, and will satisfy the Insurance Commissioner that all suits pending against such party, and of which no notice has been given, have been fully ..:atisfied, or whenever no notice of claim has been

INSURANCE LAWS.

63

given, and when such companies have been 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.
w'henever, by means of the provisions of this Act, the amount of bonds so deposited are reduced, said
Treasurer shall at once notify the Insurance Commissioner in writing, who will give notice to the company depositing, and require more bonds to be depo sited, so as to always maintain the original amount, and if the company so notified by the Insurance Commissioner fails to comply within thirty days, the right of the company to do business in the State shall -be revoked, and said Insurance Commissioner shall, at the same time, give notice by publication in a newspaper 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 assumed any liability by suretyship or otherwise, on which no lo sses have accrued, and which -company wishes to withdraw its deposits, before being allowed to do so, said company shall have itself released from such obligation, whether suretyship or othet wise, and give notice of its intention to withdrnw from this State, and of the fact it has satisfied all losses and claims against it, and has been released from all obligations assumed by it, which notice shall

64

INSURANCE LAWS.

be published 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 accrued or upon obligations thereinbefore assumed by said company (where no losses have 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.

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65

MAKING CERTAIN BUSINESS UNLAWFUL.

An Act making it unlawful for Fire Insurance Companies not incorporated by the laws of the State of Georgia, but legally licensed to transact the business of fire insurance therein, and doing business therein 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 legally authorized and licensed to write policies of insurance therein, and prescribing penalties for violation of same; also, to pre!'lcribe further condition s to be complied with by Fire Insurance Companies before receiving licenses to do busin ess in this State.
Section 1. Be it enacted by the General Assembly of th e S tate 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 licensed to write policies of fire in surance in Georgia; provided, how ever, that this Act shall not apply to property of railroad companies and other common carriers.
Sec. 2. Be it further enacted, That before issuing certifi_c, ates of license to any Fire Insurance Com-

66

INSUR-ANCE LAws.

pany to transact the business of 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 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 th.at they accept the t~rms and obligations of this Act as a part of the consideration of their licen se.

Sec. 3. Be it further enacted, That complaint be-

ing filed by any cit~zen of this State that any com-

pany authorized to do business in this State has vio-

lated any of the provisions of this Act, the Comp-

Amended by Act of Aug,

troller-General

shall

diligently

investigate

the

mat-

19, 1912. ter, 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 ; provided, 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 mak-

ing such examination, and in the event that the in-

surance company be found not guilty of a violation

of this Act, th en said bond shall be responsible for all

the expense incurred by reason of said investigation.

But should said company be found guilty of a viola-

INSURANCE LAws.

67

tion of this Act, then said company shall be respon-

sible for the expense thereof.

.Sec. 4. Be it further enacted, That any fire insur-

ance company violating any provision of this Act,

or refusing to submit to the aforesaid examination

when requested, shall forfeit their right to do bu si-

ness in this State for the next twelve (12) month s

thereafter, and the Insurance Commissioner shall

immediately revoke the license already issued to said

fire in surance 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 th e presentation of a biH there-

Amended by Act Aug. 19,

for by the Comptroller-General, that the said Comp- 1912.

troller-General may issue his fi. fa. again st such com-

pany therefor, to be colle cted out of the property of

said company or its deposit with the State Treas-

urer, in the same manner as judgments against in-

surance companies not chartered by this State_but

doing bu siness herein, and collected. If any com-
pany di putes the amount of such bill and fi. fa. it

may contest such amount and its liability therefor by

affidavit of illegality r eturnable to the Superior

Court of Fulton county in the same manner as Comp-

troller-General's executions for railroad county

taxes can be contested.

Sec. 6. Be it further enacted, That this Act shall go into effect as soon as approved, and all la~s and parts -of laws in conflict therewith . are hereby repealed.

Approved December 24, 1896.

68

INSURANCE LAws.

AN ACT

TO PROVIDE :F'OR LICENSING MUTUAL IJSUR.ANCE COMPANIES, INSUR.ING AGAINST LOSS BY BURGLARY, ET C.

No . 385.

An Act to provide for the admi~sion and license to do business in this State of any insurance company organized and incorporated on the mutual plan under the 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 fo1; other purposes.

Mutual Companies

Section 1. Be it enacted by the General A ssembly

insuring against bur-

of Georgia, and it is hereby enacted by the authority

glary, etc., licensed.

aforesaid, That any insurance company organized

and incorporated on the mutual plan under the laws

of this State and any other State of the United States

for the purpose of insuring against lo ss or damage

resulting from burglary and robbery or attempt

thereat, and insuring against the loss of money and

securities in course of transportation when shipped

by registered mail, shall be admitted and licensed to

do business in this State as hereinafter provided.

INSURANCE LAws.

69

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 (5QO) 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 1been 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 cont_racts so held shall constitute a part of the assets of the company.

Sec. 3. Be it further enacted by the authority

Shalh file

aforesaid, That every

such company,

asso ciation

or

copy charter and state.

partnership

shall

file

in

the

office

of

the

Commis-

ment with Insurance

sioner of Insurance a certified copy of their charter

Commissioner.

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 ca sh on hand, in

bank or in the band of agents, the amount of real

estate and how the same is in cumbered by mortgage,

the number of shares of stock of every kind owned

by the company, the par and market value of the

~ame, amount loaned on bond and mortgage, the

amount loaned on other securities, stating the kind

and the amount loaned on each, and the estimated

Impaired r eserve. Agents.

70

INSURANCE LAws.

value of the whole amount of such securities, and any other assets .or property of the company, also stating the indebtednes s 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 any law of the State by which such company was incorporated; and no agent shall be allowed to transact business fo r any such company whose reinsurance reserve, as required in this A.ct, is impaired to the extent of twenty per cent. thereof while such deficiency shall continue. Nor shall it be lawful for any agent or agents to act for any company or companies referred to in this A.ct, directly or indirectly, in taking risks or transactin g the business of burglary and robbery insurance or the insurance of the safe shipping of money and securities by registered mail in this State, without procuring from the Commissioner of Insurance a certificate of authority, stating th at such company ha s complied with all the requirements of this A.ct which apply to such companies, and the name of the attorney appointed to act for the company.

Business

Sec. 4. Be it further enacted by the authority

confined to certain lines

aforesaid, That any company permitted and licen sed

and persons.

to transact business in this State under this A.ct shall

confine its line of business to that stated in the fir st

Section of this A.ct, and shall confine its business in

this State to banks, bankers, loan companies and

INSURANCE LAws.

71

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

premiums, whether collected in cash or represented Reserve.

by obligations of the policyholders, as written in its

policies; this reinsurance reserve to be maintained

0 Jong as the risk is in force.



Sec. 5. Be it further enacted by the authority Liability of p o l i c y.
aforesaid, That policyholders of any company per- holders.

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 con-

tracted to be paid at the time the policy is taken out 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 policyholder s. The mem-

bership 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 in surance.

Sec. 6. Be it furth er enacted by the authority aforesaid, That it shall not be lawful for any insurance company, association or partnership incorporated 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

72

INSURANCE LAWS.

Shall appoint attorney. Service of process.

risks or to transact any business of insurance in this State, by any agent or agents in this State, until it shall :first appoint an attorney in this State, on whom process of law can be served, and :file in the office of the In surance Commissioner a written instrument, duly signed and sealed, certifying such app'ointment, which shall continue until another attorney be substituted, and any process issued by any court of record in this State, and served upon such attorney by the proper officer of the county in which such attorney 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 statements.

Sec. 7. ,Be it further enacted by the authority

aforesaid, That the statement and evidences of mem-

bership, 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

S/:1,id Insurance Commissioner, with an additional

statement of the amount of premiums received in

this State during the preceding year, so long as such

agent continues, and the said Insurance Commis-

sioner, on being satisfied that the membership, assets,

securities and investments remain secure, as here-

inbefore mentioned, shall furni sh a renewal of the

certificate as aforesaid, upon the payment to the

State at the time of :filing the statement here pro-

Penalty for violation.

v1ded for and a fee of $5.00 for each corporation, and

$25.00 for each foreign corporation. Any violation

INSURANCE LAws.

73

of any of the provisions of this Act shall subject the party 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.

74

lNSURAN_CE LAws.

AN A Crr

Requiring corporations doing Life Insurance business in the State of Georgia, upon the assessment plan, to print on all their policies, or benefit certifi. cates, the words '' This contract is issued upon the assessment plan,'' and also to print the words '' assessment plan'' upon every application, circular, card, advertisement, and other printed docu. ments.
Section 1. Be it enacted by the General Assembly of Georgia, That from and after the passage of this Act, every policy or certificate issued to a resident of the State of Georgia by any corporation transacting therein the business of life insurance upon the assessment plan, or admitted into this State under the assessment laws of Georgia, shall prmt in bold type (in red ink) in every policy, or certificate, issued upon the life or lives of the citizens of Georgia, making one of the principal lines near the top thereof the words "Issued upon the assessment plan," and the words "assessment plan" shall be printed conspicuously (in red ink) in or upon every application, circular, card, advertisement and other printed documents issued, circulat ed 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 fore going provisions of Section 1 of this Act, the Insurance Commissioner shall forthwith suspend or revoke all authority to

INSURAN CE LAws.

75

such corporation or association and all its agents to do business in this State, and shall publish such revocation in some newspaper published in this State. .Amended November 5, 1901, by adding the following proviso : Provid1ed, 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 corporations as shall only issue policies under which the premiums are stipulated, and made payable at fixed periods in 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.

76

INSURANCE LAWS.

INSURANCE, REGULATING BUSINESS OF.

No. 349.

An Act to amend the laws of this State, regulating the business of insurance, to modify the provisions of Sections 2035, 2045 and 2048 of the Code of this State, so as to reduce the amount of bonds re. quired to be deposited by fire, marine and inlan d insurance companies, chartered by other States or foreign governments; to require the restitution to the depositor of certain bonds heretofore deposited under existing laws, to empower the Insurance Commissioner, 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

INSURANCE LAws.

77

thereof, or to' the person lawfully authorized to receive them, all bonds deposited by it under laws here-
. 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 States or bonds of this State, which, according to. the Acts and resolutions or the General Assembly are valid, and which amount, according to their fa ca value to ten 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 again st it as hereinafter provided, said bonds shall be delivered up to the proper party on pre sentation 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. 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 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.''

78

INSURANCE LAWS.

Sec. 2. Be it further enacted, Tha' t Section two thousand and forty-five of the Code be, and the same is, hereby amended, by striking therefrom all the words following tbe words "twenty per cent.," occurring in tbe fourteenth line of said Section, and by substituting for the words so stricken the words following, to-wit: " the Insurance Commissioner shall suspend the license issued to said company and require tbe company to cease to do new business within this State, and give notice to said company to make go_od its whole cap~tal 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 Code be, and the same is, hereby amended, by striking therefrom all the words thereof, following the word "business," occurring in tbe fifth line thereof, and by the substitution for tbe words so stricken the words following, to-wit: '' as contemplated by the law1, of this State, he shall revoke tbe license of such company and require said company to cease to do business in this State, giving public notice of such revocation of authority. Any insurance company which bas been suspended or which bas bad its license revoked may be reinstated upon showing that its condition is such as to authorize it to do business in this State, and the Insurance Commissioner may reinstate such com pany whenever it makes such showing.

79
Sec. 4. Be it further enacted, That all laws and parts of laws in COIJ.flict with this Act be, and the same are, hereby repealed.
Approved December 20, 1899.

80

INSURANCE LAWS.

FRATERNAL BENEFI CIARY ORDERS DEFINED, ETC.

No. 105.

An Act to define and regulate fraternal beneficiary orders, associations .or societies in the State of Georgia, to provide penalties, and for other purp os es.

Section 1. B e it enacted by the General Assembly of Georgia, T hat a fraternal beneficiary or der, asso,ciation or society 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 lpdge 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, representatives elected by local, 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 all under its authority, for the management of its properties and the due and orderly conduct of its affairs.

INSURANCE LAws.

81

Such orders or associations may m_ake provision for the payment of benefits in case of death, sickness, temporary Qr 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, emergen cy, or other fund s, as may be provided in its constitution and laws; provided!, however, that no
profit or gain shall be added to the payments made
by a member. The fund s from which the payment of benefits
shall be made, and the funds from which the expenses shall be defrayed, shall be derived from assessments, dues or other payments collected from its members, as may be provided by the constitution or by-l aws of such order or association. Payment of death benefits shall be to familie s, heirs, blood relatives, affianced husband or affianced wife of, or to persons dependent upon the member, as may be designated by the member.
Such orders or associations shall be governed by this Act, and shall be exempt from the provisions of the insurance laws of this State, and no law hereafter passed shall ap.ply to fraternal beneficiary orders or associations, unless it is expressly designated therein.
Sec. 2. Be it further enacted, That any fraternal beneficiary order, association or society of this or any other State, dist!ict, province or territory, now having members, or any lodge, chapter, counc,il nr

82

INSURANCE LAws.

subordinate branch duly established and organized in this State, may continue its operations and business in this State; provided, that it hereafter complies with the provisions of this Act regulating annual reports, and the designation of the Insurance Commissioner as the person upon whom process may be served, as hereinafter provided.
Sec. 3. Any fraternal beneficiary order, association or society coming within the description as set forth in Section one of this Act, organized under the laws of any other State, province, district or territory, not now having lodges, councils, or other bodies, or members in this State, shall be permitted to do business within this State when it shall have filed with the Insurance Commissioner a certificate from the official in charge of insurance matters in its home State of incorporation tha t it is authorized to transact business therein as a fraternal beneficiary order or association, also a duly certified copy of its charter and article of association, and a copy of its constitution and laws, certified to by its secretary or corresponding officer, together with the appointment of the Insurance commissioner as the person upon whom legal process may be served, as hereinafter provided.
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,

INSURAN CE LAWS.

83

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 In surance Commissioner, 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 bead, entitled "Fraternal Beneficiary Societies."

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 tb e laws of this State, may be ser ved with each and all processes of law, whether mesne or final , in any action or special proceedings against said corporation, society or association as follows: The party in whose favor suit is being brought, through bis attorney-atlaw shall notify in wTiting the Insurance Commissioner of Georgia of hi s 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 In surance Commissioner immediately to appoint some resident of said county to accept service of process in all cases in the name of the said corporation, society or association; and the said service, when so made, shall be deemed and held and accepted by said corporation, society or association to be legal personal service and binding, the same as if made upon any agent or officer of said society or

I

84

INSURANCE LAws.

corporation; providJed, that the said party or his attorney shall, twenty days before the appearance term for said suit or action, cause to be sent to the Insurance Commissioner a copy of the petition. When such service has been made upon such attor. ney for service on any such corporation, society or association, and copy of same has been forwarded to said Commissioner as hereinbefore provided, it shall be the duty of said Insurance Commissioner immediately to notify the said corporation, society or association of such service by letter, enclosing copy of said petition, together with process :filed ih said case, prepaid and directed to the secretary or its corre. sponding officer.
The Insurance Commissioner shall keep a record of all such attorneys appointed for such service, together with the record of when any such petitions with process were received by him in any case, and forwarded to any such corporation, society or association.
Sec. 6. ~he In surance Commissioner shall, without undue delay, upon the application of any order, society or association having the right to do business in this State as provided by this Act, issue a permit in writing authorizing it to do business within the State, for which certificate, and all proceedings in connection therewith, such association shall pay to said Insurance Commissioner a fee of ten dollars. This fee shall be paid annually thereafter in advance.
Sec. 7. Any such order, association or society refusing or neglecting- to make the report to the Insur-

INSURANCE LAws.

85

ance Commissioner as provided in this Act, shall be excluded from doing business within this State, and the Insurance Commissioner shall at once recall and cancel their license. Any officer, agent or person acting for any order, or subordinate body thereof, within this 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 dollars 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 fraternal 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 inconsi stent 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, R ed 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 for ce and effe ct from and after its passage.

Approved December 17, 1900.

86

INSURANCE LAws.

INSURANCE COMPANIES, DEPOSITS OF, REGISTRATION OF.

No . 108.

An Act to authorize and require all insurance and fidel ity and deposit companies and :fidelity or surety companies that may now have bonds deposited in the State Treasury, or that may here after be placed there, to have same registered.
Section 1. Be it enacted by the General Assembly of Georgia, and it is hereby enacted by the authority of the same, That all insurance and :fidelity and deposit companies and :fidelity or surety companies which may now have coupon bonds deposited in the Treasury, be required to sub stitute registered bonds
for the same on or before January 1, 1961.
Sec. 2. And be it further enacted, That all such companies making deposits after J anuary 1, 1901, be required to furnish registered bonds.
Approved December 17, 1900.

INSURANCE LAWS.

87

INSURANCE COMPANIE.S, CAPITAL STOCK OF, INCREASED OR DECREASED.

No. 153.

An Act to authorize any fire insurance company, organized under the laws of this State, to increase or decrease its capital stock, and for other purposes.

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 representatives _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,

8

INSURANCE LAws.

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 shal'l be filed and recorded in the office of the Secretary of State and when so filed and recorded, shall become an amendment to the charter of said company, and a certified copy ther eof shall be evidence of all fa cts therein contained, in all courts of this State, without fur ther proof ; provided, such increase or decrease shall be approved by the Comptr oller-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 r ecorded in the office of the Secr et ary of State, together with said verified copy, and become a part thereof.

Sec. 2. Be it fur ther enacted, That all laws and parts of laws in . conflict with this Act be, and the ame are, hereby repealed.

Approved December 18, 1900.

INSURANCE LAws.

89

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 for 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 re-licensed and authorized to transact a general life insur~nce 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

90

INSURANCE LAws.

faith, its contracts heretofore made with its members, but all policies or certificates of insurance heretofore issued by such corporations and now remain. ing in force, which contain a provision for a payment 0th.er than the premium stipulated therein, and under which the donation of premium payments is co-equal with the duration of the contract (endowment policies and endowment certificates excepted) shall be valued and reserve maintained thereon on the basis. of renewab]e term i~surance as fixed by age, in accordance with the provisions of Section 8 of an Act entitled '' An Act to regulate the business 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 unqer 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 po]icy or certificate shall a greater aggregate reserve liabiJity be charged than is required 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 in surance issuedi by such corporation, under this Act, whether or not they contain a provision for a payment other than

INSURANCE LAWS.

91

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 law s or

parts of laws, which relate to the formation of cor-

porations 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 per-

mitting the carrying out of contracts heretofore

made with members; provicl!ed, nothing in this Act

shall be con strued to apply to any fraternal bene-

ficiary order or society operating on the system of

I

lodges, councils or chapters, as defined by the laws

of this State regulating such orders or societies.

Sec. 5. All Acts and parts of Acts inconsist~nt with the provisions of this Act are hereby repealed.

Approved December 21, 1900.

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1NSURANCE LAws.

DEPOSITS BY ASSESSMENT LIFE INSURANCE COMPANIES-APPROVED BY STATE TREASURER.

An Act to amend an A ct entitled "An Act to amend Section 2061 of the Civil Code of 1895, relative to. the requirements of assessment in surance companie s precedent to doing business in this State, by adding the r equirement that a deposit shall be made as security for policyholders," approved December 20, 1901; by providing more definitely for the amount of said deposit.

Section 1. Be it enact ed 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 word s in said Act, towit: '' Of insurance which, under the rul es and regulations of the company making the deposit, it is authorized to write upon one life ; provided, nevertheless, such depo sit 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 follow s : '' 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 furni shing life indemnity or insurance upon the assessment plan by

INSURANCE LAws.

93

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 busiJ?.e&s 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 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 presi- Amended by
Act ap.
dent and secretary or like officer thereof, setting proved August 22,
forth that it has paid and has the ability to pay its 1905. certificates or policies to the full limit named therein; that its certificates or policies are payable only to beneficiaries having a legal insurable interest in the life of the member or insured; that an ordinary assessment upon its members is sufficient to pay its maximum certificate of membership or policy theretofore or thereafter to be issued to the full amount or limit named therein; a certificate from the Insuranc~ 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 is used; a copy of the constitution and by-laws, and of each and every addition thereto, which must how that all indemnities to beneficiaries are in the main provided for by assessments upon all surviving

94

INSURANCE LAws .

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 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; provid!ed, however, that industrial associations or assessment life insurance companies doing business upon the industrial or weekly payment plan, and is suing no policies fo r
an amount greater than :five hundred dollars, shan
be requir ed 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 tatement, until the sum so deposited shall be equal to one hundred thousand

INSURANCE LAws.

95

dollar~. The security so deposited shall be held in trust for the benefit and protection of, and as security for the policyholders 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 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 bas 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 a'nd protection of, and as security for the policyholders 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 Commis"ioner 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 nonresident companies, that, after making deposit, or similar deposit has been made with the proper State official in the State or country of its corporation, said securities shall be subject to the debts due policyholders and beneficiaries under the same rules and regulations as govern the deposits required to be made by fire insuran ce companies under the laws of this State, in so far as the same may be applicable. Companies or associations now organized under

96

I NSURANCE LAws.

the assessment life insurance laws of this State shall not be required to make such depo sits 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.

INSURANCE LAws.

97

AN ACT
To amend an Act approved December 24th, 1896, making it unlawful for certain fire insurance companies 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 by such fire insurance companies before receiving license to do business in 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 licen sed to transact the bu sin ess of accident, liability or ca sualty insurance therein, and doing business through regularly commission ed .and licensed agents, t o issue or cau se to be issued, policies of accident, liability or casualty insurance, to any person or corporation r esid ent in the State of Georgia, except through agents located in the State, legally authorized and licensed t o write policies of accident, liability or casualty insurance therein, and prescribing penalties 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 As sembly 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 word s, to-wit: And making it unlawful for acci -

98

INSURANCE LAws.

-<lent, liability and casualty insurance companies, not incorporated by the laws of the State of Georgia, 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 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 also prescribing further conditions to be complied with by accident, liability or casualty insurance companies before receiving license to do bu siness in this State.
So that said title when amended shall read as follows: '' An Act making it unlawful for fire insurance . companies not incorporated by the laws of the State of Georgia, but legally licensed to transa ct the business of fire in surance therein, and doing business there -through regularly commissioned and licen sed 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, legally authorized and licensed to write policies of insurance therein, and prescribing penalties for violation of the same, also to prescribe furth er conditions to be complied with by fire in surance companies before receiving license to do bu siness in this State, and making it unlawful for accident, liability or casualty insurance compani es not incorporated by th e laws of this

INSURANCE LAWS.

99

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 lega1ly authorized and licensed to write policies of accident, liability or casualty insurance therein, and prescribing penalties for violation of the same1 and also prescribing further conditions to be complied with by accident, liability or casualty insurance companies before receiving license to do business in this State."
Sec. 2. Be it further enacted, That Section 1 of said Act be, and the same is, hereby amended by adding at the end of said Section the fo1lowing words, towit: '' That accident, liability or casualty 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 issue any policies of accident, liability or casualty insur- ance 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 follows, to-wit:
Be it enacted by the General Assembly of the State of Georgia, and it is hereby enacted by authority of

100

INSURANCE LAws.

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 licensed to write 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 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 issue any policy of accident, liability or casualty insurance to any person or corporation resident in said St~te, 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 ~mended by inserting between the words ''fire'' and ''insurance'' in the second and fifth lines 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 o,r license to any fire, accident, liability or casualty insurance compan~ to transact business of accident, liability, casualty or fire insurance in this State, the Insurance Commissioner sba11 require in any case, in addition to re-

INSURANCE LAws.

101

quirements 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 casualty 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.

102

INSURANCE LAWS.

INSURANCE COMPANIES, SUITS AGAINST.

No . 160.

Section 1. Be it enacted by the General Asserrbly 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 in serting 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 in surance 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.

103

INSURANCE COMPANIES, CHARTERS OF.

No. 129.

Section 1. Be it enact~d 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 aJtered and amended by striking from said Section 2017 all of said Section after the word ''business,'' in the sixth line, towit : "The rights, powers and privileges granted said corporation shall not continue longer than fifty years, unless the same be continued by laws of for ce at the expiration of said fifty years," so that when said Section is so amended it will read as follow s : "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 bas not organized and commenced business.''

Sec. 2. Be it furth er enacted, That all laws and parts of laws in conflict with this Act be, and the same are, hereby repealed.

Approved December 16, 1902.

104

INSURANCE LAWS.

DEPOSITS BY FOREIGN FIRE INiSURANCE COMPANIES.

FACE VALUE OF SECURITIES.

No. 82.

An Act to amend section 2035 of the Code of Georgia 1895, 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," and for other purposes.

See opinion A t t o r n e yGe n e r al, page 106.

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

INSURANCE LAWS.

105

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 prope!.' 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. 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 provided.''

Sec. 2. Be it fur ther enact ed, That all laws and parts of laws in conflict herewith be, and the same are, hereby repealed.

Approved Aug11st 22, 1905.

106

INSURANCE LAWS.

STATE OF GEORGIA. OFFICE OF ATTORNEY-GENERAL.
September 7, 1905.
H on . TTfm . A . Wright, Insurance Cornniissioner,
Atlanta, Ga.
DEAR Sm: I am in receipt of your inquiry as to the effect of an Act approved August 22, 1905, amending Section 2035 of the Code of Georgia, 1895, providing for a deposit by insurance companies with the 'Treasurer of the State.
Section 2035 r equires of insurance companies a deposit of bonds of th e United States, or bonds of this State of the face value of $25,000 with the Treasurer of this State, the purpose being that of a pledge or security to policyholders therein. rrhis Section was amended by the General Assembly at the session of 1899 (see Acts 1899, page 45) by reducing the amount of bonds to be deposited from $25,000 to $10,000. The Act you ask :ine to construe, approved August 22, 1905, amends Section 203'5 by providing that other bonds t];ian of the United States, or of this State, may be deposited, viz.: "bonds of any county or municipality in this State which have been validated under the laws of this State."
It is true the Legislature in its recital as to how the Section shall read when amended quotes Section 2035, which provides that the deposit shall be in

INSURANCE LAws.

107

bonds of the face value of $25,000. The la st Legislature overlooked the fa ct that this Section had been previously amend.ed by reducing the amount of deposit to $10,000. In other words the Legislature erroneously r ecited bow the law would read when amended. This erroneous recital could not, of cour e, change the law.

I am therefore of the opinion that the Act in ques-

tion did no more than what was the evident purpose

of the Legislature as expressed in the title of the

Act, viz.: to prescribe that another class of bonds

might be deposited; i. e., in addition to United

States bonds or bonds of this State, '' bonds of any

county or municipality in this State which have been

validated under the laws of this State.'' Insurance

companies, therefore, will, as heretofore, so far as

the face value of bonds is oncerned, deposit at

least $10,000 in amount with the Treasurer of this

State.

Yours very truly,

JNo. C. HART, Attorney-General.

108

INSURANCE LAWS.

DEPOSIT'S BY HOME LIFE I NSURf\-NCE COMPANIES MUST BE APPROVED BY INSURANCE COMMISSIONER.
No. 42.
An Act to amend Section 2043 of the Code of Georgia, with reference to the deposit required to be made 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 M with the Insurance Commissioner.
Section 1. Be it enact ed by the General Assemb:y 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 Commis sioner of this State, or with some strong corpor ation 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 "Insurance Commissioner of this State.''
Also amend by striking the wo rds "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:

INSURANCE LA,vs.

109

'' 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 policyholders of the company making such depo sit. All interest and dividends arising from such securities to be paid when due to the company so depositing them. Any such securities as may be needed by the company may be taken from the Treasurer, at any time, by replacing them with other securities equally accept- . able to the Insurance Commissioner. 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.

110

INSU RAN CE LAws.

DEPOSIT BY ASSESSMENT INSURANCE COMPANIES.-APPROVED BY STATE TREASURER-MARKET VALUE.
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 insurance 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 herel;)y enacted by authority of the same, That from and after the passage of this Act, the following words in said Act, towit, '' 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 dolJars, " be, and the same are, hereby stricken, and in lieu thereof the following words be, and the samE are, hereby inserted, to-wit:

INSURANCE LAWS.

111

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 State 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 State until such corporation or association shall deposit with the Insurance Commissioner of the State a certified co.py 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 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 officer thereof, setting forth that it bas 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 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 bPretofore or thereafter to be issued to the full

112

INSURANCE LAws.

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 insurance laws of its home State, certifying that it is legally entitled to do business in saia 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, "hich must show that all indemnities to beneficiaries are in the main provided for by assessments upon all surviving member s. And whenever said company hall fail to pay a valid claim to th e full limit named in any policy issued by them to any r~sident of this State, the In suran ce Commissioner hall r evoke their authority to do business in this State:
Provided!, T'hat a]l such corporation s or associati on s, organized und er the laws of this or any other State or country, shall depo it with the Treasurer of. this State stock or bonds approved by that officer in an amount equal to twenty thousand dollars, par \7alue, and of not less than twenty thousand dollars, market value; provided>, however, that industrial associations or assessment life insurance companies doing business on the indu strial 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 ]ife insurance coi:'npanies doing business upon the industrial or weekly payment plan, and issuing a policy for no

INSURANCE LAws.

113

greater amount than five hundred dollars, shall be required to depo sit a sum not less than one thousand dollars in each million dollars of insurance in force on the last day of th e 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 policyholders of such corporation or association, their legal representatives and beneficiaries. That corporation or association organized under the laws of other States or countries shall not be required to make such depo sit, 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 bas 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 tbi Act, and which are held by said authority in trust for the benefit and protection of, and a security for, the policyholders of such corporations or associations, their legal representatives or beneficiaries. Said securities shall so remain on deposit until it has been made to appear to the satisfaction of said In suran ce 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 made with the proper State officials in the State or country of its corporation, said securities shaH be subject to the debts due policyholders and beneficia-

114

INSURANCE LAws.

ries under the 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 as sociations now organized under the assessment life insurance laws of this State shall not be required to make such depo sits 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 t1e same are, hereby repealed.

Approved August 23, 1905.

INSURANCE LAws.

115

INDUSTRIAL LIFE INSURANCE DEFINED AND REGULATED.

No. 59.

An Act to define and regulate the busine ss of industrial life insurance; to provide the manner in which corporations, associations, societies or fraternal 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 ther eof; and for other purposes.

Section 1. B e it enacted by the General Assembly cf Georgia, That industrial life insurance is hereby defined to be that in surance 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
or sums of not more than five hundred dollars on a sin-
gle life, and which policies 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 government, whether operating

116

INSURANCE LAWS.

under the present insurance laws as insurance com-

panies, or operating under the laws governing fra-

ternal 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 busi-

ness, and shall be subject to this Act and all the

o~her laws of this State not repugnant to this Ac~

regulating the business o~ life, health and accident

insurance in this State.

Be Sec. 3.

it enacted by the authority aforesaid,

That any corporation, association, society or fr ater-

nal 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 regu-

lating the manner in which other insurance compa-

nies shall be authorized to do business in this State,

except that the depo sit, required of companies oper-

ating 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 are

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, organ-

INSURANCE LAWS.

117

ized 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 foreign insurance companies shall be authorized to do business in this State, and filing with the Insurance Commissioner of this State a certificate from the officer having supervision of the insurance department of the State under the laws of which such corporations, association, society or fraternal. order was chartered or elects to make its deposit, that such corporation, association, society or fraternal order bas deposited with said State a sum of not less than five thousand dollar s in such securities as are required to be depo sited 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 further enacted, That no law, hereafter passed, shall be held or deemed to refer to the

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INSURANCE LAws.

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 confli ct with this Act be, and the same are, hereby repealed.

Approved August 22, 1905.

l~SURANCE LAw s.

1]9

INSURANCE POLICIES, HOW ISSUED.

No. 466.

An Act fixing and regu1ating the manner in which contracts and policies of insurance, whether life or property, shall be issued and made in this State.

Section.l. Be it enacted by the General Assembly Policies ot

Insurance

of the

State

of

Georgia,

and it

is

hereby

enacted

by

must contain entire con-

the authority of the same, That from and after the tract.

passage of this Act all life and fire insurance poli-

cies issued upon the life or prop_erty of pe.rsons with-

in this State, whether issued by companies organized

under the laws of this State or by foreign companies

doing business in this State which contain any refer-

ence to the applicatiQn for insurance, OT 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

contract, shall contain or have attached to said

policy a correct copy of s:aid application signed by

the applicant, and of the by-laws referred to, and

unless so attached and accompanying the policy, no

such constitution or by-la:ws shall be received in

evidence either as part of the policy or as an inde-

pendent contract in any controversy between the

parties to or interested in the said polic:y; nor shall

such application 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 are, hereby repealed.

Approved August 17, 1906.

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INSURANCE LA,vs..

LIFE INSURANCE ON RESERVE PLAN, DEP OSITS OF SECURITIES FOR POLICIES.

No. 472.

.An Act to authorize any life m surance company ()rganized and doing business on the legal r eserve plan under the laws of this State, to deposit with the Treasurer of the State securities to the amount of the net reserve value of all policies issued by such company as security for the p ayment of all liabilities arising under the terms of such policies.

Net reserve Section 1. Be it enacted by the eneral Assembly

value of all

life insurance policies

of the State of

Georgia, That from

and after the pass-

issued on the reserve

age of this Act the Insurance Commissioner of this

plan, the

measure of State shall, as soon as practicable after the filing of

the deposit

required In this State.

the annual stat ement of any insurance company or-

ganized and doing business on the legal reserve plan

under the laws of this State, proceed to ascertain the

net re serve value of each policy in force on the thir-

ty-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 In surance Commis-

sioner 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 valua-

tion herein contemplated which ma_y be received by

INSURANCE LAWS.

121

the Insurance Commissioner upon such proof as he

may determine. The expense of procuring such

proof shall be paid by the company. Upon ascer-

taining, in the manner above provided, the net re-

serve 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 of such notification the

officers of such company shall have the right to de-

posit with the Treasurer of this State, for the secur-

ity and benefit of all its policyholders, securities to

an amount which, together with the sum already de-

posited with said Treasurer, and such sums as may,

be depo sited ,by said company with other States and

governments, by requirement of the laws of such

other States or government s in which said company

is doing business, shall not be less than the amount

of such ascertained valuation of all policies in force.

In case the depo sits i;p.ade with other States and gov-

ernments are by the laws of such States and govern-

ments held as security, first for the policyholders of

such States and governments, then said policyholders

in such other States shall not participate in the secur-

ities held in this State until due allowance or credit

has been given for the securities held by their own

States or government, so that all policyholders of Value ot de-

the company shall stand on equal terms.

The securi-

posit, how ru,s c e r t a ! n e d.

ties shall be such as are described in Section 2408

of the Code of 1910, or certificates of deposit in any

solvent bank or trust company, or satisfactory evi-

122

INSURANCE LAWS.

dence 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 b~ 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.

Certificate or deposit by

Sec. 2. Be it further enacted, That upon the de-

Insurance Commie.

posit being made by any company as provided _in the

sloner.

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

provisions of this Act, stating the amount deposited

and the net reservfl vaJue of outstanding policies, and

the table upon which the same is computed, and that

it is authorized to transact the business of ]ife insur-

ance 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 com-

pany with a certificate over his signature to be at-

tached to or printed on policy issued by such com-

pany-substance as follows: State of Georgia, In-

surance Department, State Capitol, Atlanta, Ga.,

- - - - - , 191--. The net reserve value of poli-

cies issued by - - - ---Life Insurance Com-

pany of-------

G-,n,gia, is secured

INSURANCE LAWS.

123

by a deposit of acceptable securities in acco'rdance with the compulsmy reserve deposit laws of this State, enacted in the year 1906. - - - - - - - - - - - - -, Insurance Commissioner.

Sec. 3. Be it further enacted, That upon the fail- Failure to ma ke de.
ure of any company having once exercised the privi- posit, effec t of.
lege 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 policies 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.

.Sec. 4.

Be it further

enacted,

That

all companies

Change of sec11rities

coming within the provisions of this Act shall have deposited.

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 wihenever the net reserve value

of policies outstanding and iri for ce against any com-

pany is less than the amount of securities then on

deposit with the Treasurer of thi,s State, said com-

pany shall have the right to withdraw such excess;

but at least one hundred thousand dollars shall re-

main 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 Dividends
and lntere11t.
-call ed for by the Insurance Commissioner, the State

Treasurer shall collect the interest on such security

124

INSURANCE LAWS.

as it becomes due and add the same to the securities. in his hands belonging to such company.
ttto"~r:,1 ot Sec. 5. Be it further enacted, That all securities
offered for deposit under the provisions of this Act shall be passed upon by the Insurance Commissionerand 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 substituti on of securities therefor.

Sec. 6. Be it furth er ena cted , That all laws and parts of laws in conflict with this Act be, and the same are, hereby repealed.

Approved August _20, 1906.

INSURANCE LAws.

125

AN ACT

To cancel and forfeit the license of foreign fire, life,
accident, fidelity, guaranty, or other insurance companies doing business in this State, upon certain conditions, and for other purposes.

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, if any foreign fire, life, accident, fidelity, guaranty, or other insurance company doing busines'S in this State, shall, without the consent of the other party to any suit or proceeding brought against it in any court in this State, remove said suit or proceeding to any federal court it shall be the duty of the Commissioner of Insurance to forthwith revoke all authority to such company and its agents to do business in this State and to publish such revocation in some newspaper of general circulation published in this State.
Sec. 2. Be it further enacted that when such license is forfeited .as provided in the foregoing section said license may be renewed by the Insurance Commissioner upon terms to be prescribed by him; provided such license shall not be renewed in less than two years from the date of its forfeiture.
Sec. 3. All Acts and parts of Acts in conflict with this Act be, and the same are, hereby declared to be repealed.
Approved August 16, 1909.

126

lNSURANCE LAW'S.

FEE FOR FIRE INSURANCE COMPANIES FIXED.

AN ACT
'Io amend section 2059 of Volume 2 of the Code of Georgia, of 1895, firing the fees to be. charged by the Insurance Commissioner of the State for filing certified copy of charter of insurance companies for examination of the annual statements and for certifi0ates of authority or license to agents, so as to provide for the payment of a license tax of $200 by fire insurance companies, which shall be in lieu of the tax or fees prescribed in said section, to provide for the payment of a portion thereof to the Insurance Commissioner, and for other purposes.
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 Section 2059 of Volume 2 of the Code of 1895 be amended by adding after the word" .Article " in the twelfth line of said section the following: "Provided, however, that all fire insurance companies doing business in this State shall in lieu of such fees and charges, pay to the Insurance Commissioner one fee of $200.00, and upon paying such fee and having otherwise fully complied with the. provisions of thiS' Article, such fire insurance companies shall be entitled to receive from the Insurance Commissioner certificates of authority for itself and its agents to transact business in this State. Of

INSURAN CE LAws.

127

the sum so paid one-fifth thereof shall go to the commissioner." So that section 2059 of Volume 2 of the Code of 1895 when so amended shall read as follow s : 2059. Company not complying, fees, etc. No person shall act as 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 Article, and r eceived 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: For filing certified copy of charter, twenty dollars; for examination of annual statement, twenty dollars; and for certificates of authority or license to agents, three dollars each, one-fifth of which shall be paid to the Commissioner in full compensation for services in executing th e provisions of this Article. Provided, however, that all fire insurance companies doing business in this State shall in lieu of such fee s and charges, pay to the Insurance Commissioner one fee of $200, and upon paying such fee and having otherwise fully complied with the provisions of this Article, such fire insurance companies shall be entitled to r eceive from the Insurance Commissioner certificates of authority for itself, and its -agents, to transact business in this State. Of the surd so paid onefifth thereof shall go to the Commissioner. In addition to the payment of the above fees, each of 'the said' companies shaJl make a r eport to the Commissioner on the fir st day of May of each year , or within

128

INSUR-ANCE LAws.

sixty days thereafter, under oath of the president or secretary thereof, showing the entire amount of premium receipts of every character and description (deducting return premiums on cancelled policies) of said companies in this State during the year or fractional part of a year ending the 30th day of April next preceding, whether said premiums were received in money or in notes, credits or any substitute for mon~y, to be taxed as may be provided by law from time to time.''
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 16, 1909.

INSURANCE LAws.

129

FEES PAID BY FIRE AND STORM ASSESSMENT INSURANCE COMPANIES.
No. 311.
An Act to fix the fees to be paid by local Fire and Storm Assessment Insurance Companies doing business in four counties or less, or operated by independent divisions, composed of four counties or less, in lieu of the fee fixed in Section Nk>. 2059 of Volume 2 of the Code of 1895, as amended by Act of the General Assembly, approved August 16, 1909, and for other purposes.
Section 1. Be it enacted by the General A~sembly of the State of Georgia, and it is hereby enacted by authority of the same, That Fire and Storm Asse13sment Insurance Companies in the State of Georgia, the business of which is confined to four counties or less, or operated by independent divisions composed of four counties or less, shall pay to the Insurance Commissioner a fee of twenty-five dollars, in lieu of two hundred dollars, as now required to be paid, under Section 2059' of the Code as :amended by Act approved August 16, 1909.
Sec. 2. Be it further enacted, That all laws and parts of Jaws in conflict with this Act be, and the same are, hereby r epealed.
Approved ,July 28, 1910.

130

INSURANCE LAWS.

AN ACT

To further regulate casualty msurance compames, and for other purpos-es.

Fixing liability and loss reserve.

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 that the indebtedness for outstanding losses under insurance against loss or damage resulting from accident to, or injuries suffered by an employee, or other person and for which insured is liable, and under insurance against loss from liability on account of the death of, or injury to an employee, not caused by the negligence of the employer, shall be determined as follows: Each corporation which writes policies covering any of said kinds of insurance shall include in the annual statement required to be :filed with the Insurance Commissioner a schedule of its experience thereunder in the United States, and foreign countries, in the case of corporations organized in the United States, and in the United States only in the case of corporations organized outside of the United States, giving each calendar year's experience separately, and crediting or charging each item to the year in which the policy to which it relates was written, as follows: (1) The ea rned premium on all such policies written during the period of ten years immediately preceding the date as of which the statement is made, being the gross premiums on all such policies, including excess and additional premiums and premiums in course of

INSURANCE LAWS.

131

collection, less return premiums and premiums on cancelled policies, and less the unearned premiums on policies in force as shown in such annual statement. (2) The amount of all payments of whatsoever nature made by reason or on account of injuries covered by such policies written during said period. This amount shall include medical and surgical attendaRce, payments to claimants, legal expenses, salaries and expenses of investigators, adjusters and field men, rents, stationery, telegraph and telephone charges, postage, salaries and expenses of office employees, home office expenses and all other payments made on account of such injuries, whether such payment s are allocated to specific claims or unallocated. (3 ) The number of suits being defended at the date as of which the statement is made under policies written during said period, except suits in which liability is not dependent upon negligence of the insured and a charge of seven hundred and fifty dollars for each suit. (4) The number of deaths for which the ins1Ired are liable without proof of negligence, covered by policies written during said p~riod_and not paid for at the date as of which the statement is made, and a charge of the amount necessa ry to pay for such deaths. (5) The number of unpaid claims at the date as of which the statement is made on account of non-fatal injuries for which the insured are liabl e without proof of negligence, covered by policies written during said period, and a charge equal to the present value of the estimated future payments. (6) The loss ratio determined from the foregoing as to each year separately, using as the

132

IN SU RANCE LAWS.

divisor the earned premiums shown in item (1), and as the dividend the amount of payments shown in item (2) plus the amounts charged in items (3), (4) and (5). (7) The number of suits being defended at the date as of which the statement is made under policies written more than ten years prior to such date, except suits in which liability is not dependent upon negligence of the insured; (8) The number of deaths for which the insured are liable without proof of negligence covered by policies written more than ten years prior to the date as of which the statement is made, and not paid for at such date. (9) The number of unpaid claims at the date as of which the sta tement is made on account of non-fatal injuries for ~vhich the insured are liable without proof of negligence, covered by policies written more than ten years prior to such date. All unallocated payments in item (2) made in a given calendar year, subsequent to the first four years in which a corporation bas been issuing policies shall be distributed as follows: thirty-five per centum shall be charged to the policies written in that year, forty per centum to Uie policies written in the preceding year, ten per centum to the policies written second year preceding, ten per centum to the policies written in the third _vear preceding and five per centum to the policies written in the fourth year preceding, and such payments made in the first f our calendar years in which a corporation bas been issuing such policies shall be di stributed as follows: in the first calendar year one hundred per centum shall be charged to the policies written in that year; in the second calendar year

INSURANCE LAWS.
fifty per centum shall be charged to the policies written in that year, and fifty per centum to the policies written in the preceding year, in the third calendar year forty per centum shall be charged to the policies written in that year, forty per centum to the policies written in the preceding year and twenty per centum to the policies written in the second year preceding, and in the fourth calendar year thirty-five per centum shall be charged to the policies written in that year, forty per centum 'to the policies written in the preceding year, fifteen per centum to the policies written in the second year preceding, and ten per centum to the policies written in the third year preceding, and a schedule showing such distribution shall be included in such annual statement. Each such corporation shall be charged with indebtedness for outstanding losses upon such policies determined as follows : (10) For all suits being defended under policies written more than ten years prior to th e date of which the statement is made, except suits in which li ability is not dependent upon negligence of the insured, one thousand dollars for each suit. (11) For all suits being defended under policies written more than five years and less than ten yea r s prior to the date as of which the statement is made, except suits in which liability is not dependent upon negligence of the insured, seven hundred and fifty dollars for each suit. (12 ) For all deaths for which the in sured are liable without proof of negligence, covered by policies written more than five years prior to th e date as of which the statement is made, the amount necessary to pay for such death s. (13) For all un-

134

INSURANCE LAws.

paid claims on account of non-fatal mJuries, for which the insured are liable without proof of negligence, under policies written more than five years prior to the date as of which the statement is made. the present value of the estimated future payments: , (14) for the policies written in the five years immediately preceding the date as of which the statement is made an amount determined as follows : multiply th e earn~d premiums of each of such five year s a. shown in item (1) by the losS' r atio ascer tained a in item (6) on all the policies written in the first fivr year s of the said ten year period using as the divisor the sum of the earned pr emiums shown in item (1) for such first five years, and as the dividend the sum of the payments sho wn in item (2) for such first five years plu s the sum of the charges in item s (3) , (4) and (5) for such first five years, but the ratio to be used shall in no event be less than fifty per centum at and after December 31, 1911, nor less than fiftyone per centum at and after December 31, 1912, nor less than fifty-two per centum at and after December 31, 1913, nor lesS' than fifty-three per .centum at and after December 31, 1914, nor less than fifty-four per centum at and after December 31, 1915, nor less than fifty-five per centum at and after December 31, 1916, and from the amount so ascertained in each of the last five years of said ten year period deduct all p ayments made under policies written in the corresponding years shown in item (2) and the r emainder in the case of each year shall be deemed the indebtedneS's for that year ;provided, howev er, that if the r em~inder, in the case of any year of the fir st three years of

INSURANCE LAws.

135

tbe five years immediately preceding the date as of which the statement is made shall be less than the , sum of the three following items for that year at that date, (a) the number of suits, except suits in which liability is not dependent upon negligence of the insured, being defended under policies written in that year and a charge of seven hundred and :fifty dollars for each suit; (b) the amount necessary to pay for all deaths for which the insured are liable, without proof of negligence, covered by policies written in that year; and (c) the present value of estimated unpaid claims on account of non-fatal injuries for which the insured are liable without proof of negligence covered by policies written in _that year, then the sum of said iterns (a), (b) and (c) shall be the indebtedness for that year. A corporation which bas been issuing such policies for a period of less than ten years shall nevertheless include in its annual statement a schedule as, hereinbefore required for the years in which it shall have issued policies and shall be ch arged with indebtedness determined in the same manner, but in determining the indebtedness for policies written in the :five years immediately preceding the date as of which the statement is made. the minimum ratios hereinbefore prescribed sbaH bP. used subject to the same deductions, and provi sion s as in the case of corporations that have been issuin:2' su ch policies for ten years or more.
Sec, 2. Be it further enacted by the anthorit,v aforesaid, That all laws and parts of laws in conAid with this Act be, and the same Rr e, her eby repea lf'<'L
Approved Augu st 22nd, 1911.

136

INSURANCE LAWS.

GENERAL INSURANCE ACT.
APPROVED AUGUS':D 19, 1912.
An Act to provide for the establishment of a Department of Insurance; to provide officerS' therefor, stipulate their salaries; to regulate and control the organization of insurance companies; to prescribe the duties and powers of the Insurance Commissioner; to prohibit discrimination by insurance companies; to prescribe penaltieS' for the violation of the insurance laws of the State; to provide for the general supervision by the Insurance Commissioner of all insurance companies and the sale of stock in such companies and the general management and conduct of such companies; to require Bonding and Fidelity companies to make deposits, to regulate all foreign and domestic fraternal companies, corporations, orders, asso ciations and beneficiary societies, soliciting business in this State, to prohibit the issuing of income or guarantee fund certficates, and for other purposes.

Insurance Departme nt establlshed.

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 there shall be established in this State in the office of the Comptroller-General, a Department which shall be called the "Insurance Department of the State of Georgia,'' and which shall be charged with the enforcement of the laws which have been or may hereafter be passed r elating to insurance.

INSURANCE LAws .

137

Its chief officer shali be the Comptroller-General,

Insurance

who

shall

be

styled

"Insurance

Commissioner."

Commissioner.

vVhenever in this Act the designation "Insurance

Commissioner" or "Commissioner" is used, it shall

be held to mean the chief officer of the Insurance

Department of the State of Georgia. The Insurance

Commissioner shall exercise the powers and perform

the_duties conferred and imposed upon him by thiS'

Act or any other law of the State. He may appoint Deputy In-
a Deputy Insurance Commissioner to assist him in surance Commis.
the discharge and performance of his duties, .and in sioner.

the event of a vacancy in the office of Insurance Com-

missioner, or in his absence or disability for any

reason, the Deputy shall perform a1l the duties re-

quired of the Insura;nce Commissioner. The said

Deputy shall execute a bond with proper security in

Bond of Deputy.

the sum of Five Thou sand ($5,000) Dollars, said

bond to be approved by the In surance Commi sioner

and conditioned upon the faithful performance of

his duties. The said Deputy shall be removabl e at

the pleasure of the Commissioner. "The Insurance

Commissioner may also appoint a clerk in addition Clerk.

to the one already employed bythe Comptroller, and

a

Fire Inspector whose powers

and

duties

are

here-

Fire Inspector.

inafter prescribed. The Commissioner shall have an

official seal of such device as he sh all, with the Seal.

approval of the Governor select. Every certificate

and other document or paper executed by such Insur-

ance Commissioner in pursuance of any authority

conferred upon him by law and sealed with the se~l

of his office, and all copies of papers certified by him

and authenticated by said seal, shall in all cases be

138

INSURANCE LAWS.

Records deemed public. Annual reports.

evidenced equally and in like manner as original thereof and shall have the same force and effect as the original would have in any suit or proceeding in any court in this State. The office of the Insurance Commissioner shall be deemed a public office and the records, books and papers thereof, on file therein, shall be deemed public records of the State, except as may be provided otherwise herein. The Commissioner shall publish and report annually to the Legislature his official transactions, and shall include in such report abstracts of the annual statements of the several insurance companies and bonding and fidelity companies and an exhibit of the financial condition and business transactions of the said companies as disclosed by official examinations of the same or their annual statements. He shall include therein a statement of receipts a_nd expenditures of the Department for t~e preceding year, and such other information and recommendation relative to insurance and insurance laws of the State as he shall deem proper.

Sec. 2. Be it further enacted by authority afore-

Collection of fees and

said, That the Commissioner shall collect the charges,

taxes.

fees and taxes as now provided by law and give

proper r eceipts therefor, and at the end of every

calendar month, or oftener, in the discretion of the

Commissioner, shall pay into the State Treasury,

all amounts collected by him.

Sec. 3. The Insurance Commissioner may at any Examination time have the right to examine into the affairs of any
of Insurance
companies. insurance company doing business as an assessment,

INSURANCE LAws.

139

fraternal, industrial and charitable or otherwise, in

this State, and into the affairs of any company organ-

ized under the laws of any other State, having an

office in this State, which company is engaged in or

is claiming or advertising that it is engaged in organ-

izing or r eceiving subscriptions for or disposing of

stock of, or in any manner aiding or taking part in

the formation or business of an insurance company

or companies, or which is holding capital stock of

one or more insurance company or companies for

the .purpose of controlling the management thereof

or as voting trustee or otherwi e. For such purpose

he may appoint a s examin ers one or more corp.'Petent Examiners.

persons, not officers of, or connected with, or inter-

ested in any insurance company, other than as policy-

.holder , and upon such examin8;tion, he, his deputy

or any examiner authorized by him, may examine

under oath, the officers and agents of such company,

and all persons deemed to have material information

regarding the company' s property or busine s.

Every such company, its officers and agents, shall

produce at

the office of the company, where the same

P roduction of books

are kept its books and all papers in its possession and papers.

relating to itS' business, and any other persons may

be required to produce any book or paper in his

. custody relevant to the examination for the inspec-

tion of the Commissioner, his deputies or examinen

whenever required; and the officers and agents of

such company shalJ facilitate such examination and

aid the examiners in making the same so far as it

is in their power to do so. Every such examiner Reports by Examiners.
shall make a fu]] and true report of every examina-

140

INSURANCE LAWS.

tion made by him, verified ' by his oath, which shall

comprise only facts appearing upon the book ,

papers, records or documents of such company, or

ascertained from the testimony sworn to of its officers

or agents or other persons examined under oath

concerning its affairs, and said report so verified

shall be presumptive evidence in any action or pro-

ceeding against the company, its officers or agents

as to the facts therein stated. The Insurance Com-

missioner shall grant a hearing to the Company ex-

Reports

made public, w h e n .

amined before filing any such report; and may wi th-

hold any such report from public inspection for such

time as he may deem proper, not to exceed si_ty

days, and may after so filing, if he deems it for the

interest of the public to do so, publish any such

report or the result of any such examination in one

"Ex a mination of domestic

or

more

newspapers

of

the

State.

It shall be the

.companies, -when made.

duty

of

the

Insurance

Commissioner

to

examine

every domestic insurance company at least once in

five years . The expense of all examinations of in-

surance companies now required by law, and the

expense of all examinations of such companies a

contemplated by this Act, shall be paid by the com-

Exception. panies so examined; provided, this Section shall not

apply to assessment farmers co-operative fire insur-

ance companies doing business in this State in not

more than four counties in a division.

Sec. 4. Be it further enacted, it shall be tbe duty of the Insurance Commissioner to issue license to tbe insurance companies and agents when they shall have complied with the requirements of the laws of

INSURANCE LAws.

141

this State and the rules and regulations preserihed by the Commissioner so as to entitle them to do business. In each case, license shall be issued under the Licenses. seal of the Commissioner, authorizing and empowering the person, firm, association or company to tran sact the kind of busine ss specified in the licen se. Befor e an ins.urance company shall be licensed to transact business in this State, the Insurance Commissioner shall be satisfied by such examination as he may make or such evidence as he may require that such company is duly qualified under the laws of this State to transact business herein.

Sec. 5. Be it further enacted, That whenever it

shall appear to the Insurance Commissioner that a

license already granted to an insurance company,

should be r evoked, the Insurance Commissioner shall ,

by

fir st

giving

such

in su r a n c e

company

ten

days

Licenses. bow re-

notice, require such company to show .cause before voked.

a board to be composed of th_e Insurance Commis-

sioner, the Attorney-General and the Governor of

the State why said license should not be revoked.

Upon the hearing of the said cause, the said Board

may in its discretion revoke such license of any such

insurance company or prescribe the conditions upon

which such insurance company may be allowed to

continue business in Georgia.

Sec. 6. Be it further enacted, That all persons

shall be required to procure a license from the

Department

of Insurance betore soliciting businc~s

S o l i c i t o r11 li c e n s e .

in this State, except those agents whose names are

142

INSURANCE LAWS.

furni shed the Insurance Commissioner by some reputable insurance company as its accredited agents.

Requisi tes to obtain li cense. Revocation.

Sec. 7. Be it further enacted, That all agents soliciting insurance in the State of Georgia shall, before procuring the license from the Department of Insurance, make application to the Comruif')sioner and before the said Commissioner shall issue such licen e, he shall satisfy himself that such agent is authorized by some reputable insurance company to do business in this State and the Commissiouer shall be advised and convinced as to the moral character and integrity of such applicant for license. '!'he license of any soliciting agent may be revoked at any time by the Insurnnce Commissioner in his discretion.

Sec. 8. Bo it further enacted, That it shall be

unlawful for any person, :firm or corporation to make

False reprosen tation

or cause to be made any fraudulent

or

false

repre-

unlawful. sentations as to the form, nature and character of

the policy offered for ale, and any person selling a

different form or character of policy from that wl1ich

he represents himself as selling, or makes any other

material misrepre entation as to the benefits accru-

ing under any policy which he sells or offers for sale,

shall be deemed guilty of a misdemeanor and pun-

Punishment. ished as provided in Section 1065 of the Code of

1910, and any note or other evidence of debt given

in consideration of said policy shall be null and void

and any premiums paid on such policy may be recov-

ered by such policyholder in any Court having juris-

diction thereof.

INSURANCE . LAWS.

143

Sec. 9. Be it further enacted, That the Commis-

sioner shall annually in the month of December fur-

nish to each of the insurance companies authorized

to do business in this State and required to make

annual statements to the Department, two or more

blanks in

form

approved

by

him

and

adopted

for

Bla nk forms furnish ed

for reports.

such statements.

Sec. 10. Be it further enacted, That any director,

officer, agent or employee of any company who

wilfully and knowingly subscribes, makes or concurs

in

makinir ~

any

annual

or

other

st a t em.ent

req uired . Fmaelnstes, stpauten.-

by law containing any material statement which is ishment for.

fal se shall be deemed guilty of a misdemeanor and

punished as p1.iovided in Section 1065 of the Code of

1910. It shall be the duty of the Insurance Commis-

sioner to report all such misrepresentations and fals e

statements to the Solicitor-General of the Circuit in

which they occur.

Sec. 11. Be it further enacted, ':Phat whoever with-

out justifiable cause neglects upon legal sum111ons

served within this State to appear and testify before

the Commissio!}er or his examiner in the examination Neglect of

of any company as provided in this Act, and whoever

s ummons or obstruction

wilfully

and without

just

cause

obstructs

the

Com-

of Commissioners, pun-

ishment for.

missioner, his deputy or ~xaminer, in any such ex-

aminations, shall be punished by a fine of not more

than $1,000.00 or by imprisonment for not more than

one year. It shall be the duty of the Insurance Com-

missioner to report any and all such offenses under

this Section to the Solicitor-General of the Circuit

in which it occurs.

144

INSURANCE LAWS.

Or ders, how enfor ced .

Sec. 12. Be it further .enacted, That the Insurance Commissioner may invoke the aid of any Court of competent jurisdiction through injunction or other proceedings, mandatory or otherwise, to enforce any order made or a ction taken in pursuance of the law, and nothing contained in the insurance laws of thi s State shall be construed to prevent any company or person affected by any order or action of the Insurance Commission er from testing the validity of same in any Court of competent jurisdiction.

R ules a nd regulation s .

Sec. 13. Be it furth er enacted, ~l11rnt the Insurance Commissioner shall have full power an<;1 authority to pr escribe such additional reason able rul es and r egulation s a he may deem proper for the control and government of all insurance companies mentioned in this Act. It shall be the duty of such com panies to comply fully with such rul es and regul ation s before they shall proeure any business in this State, either directly or indirectly, or continue to do business in this State.

Industri a l, stock. life, health or accident co mpa nies, how lncor. p or a ted.

Sec. 14-. B e it furthe1~ enacted, That stock companies or corporation s for the purpose of doing an indu strial, life, health or accident insurance business or for tbe purpose of doing either of said bu iness, may be created under the laws of this State, with a minimum capital stock of $25,000.00, provided, that the petitioners for such charter shall comply with the laws of this State appli cable to the incorporation of in surance companies as set out in Section 2394 et seqiiitor, Chapter 2, Article 4, of the Code of 1910, except that the minimum capital stock may be

INSURAN CE LA ws.

145

$25,000.00 and that said company so organized may

do any or all branches of said business without in-

creasing its capital stock, though it shall have all the

power, rights and privileges conferred upon life Rights and po w e r s .
insurance companies under the aforementioned Sec-

tion of the Code, except that it shall not be author-

ized to write ordinary life insurance, nor shall it be

permitted to write any policy whatever exceeding the

amount of $500.00. Before being authorized to do

business, the said company shall deposit

. ith

th e

Deposit required.

Treasurer of the State of Georgia an amount equal

to 60 p er cent. of its capital stock, consisting of

Dnitecr Sta tes . bonds, St ate, county or municipal

bonds.

Sec. 15. Be it further enacted, That any corpora-

tion organized in pursuance of the preceding S ection

may be authorized

to

do an

ordinary life

i n su r a n ce

I n d u s t r ial ,
etc. , com-

bu si n e s s

by

complying

with

the

r equirements

of

the

panies may do li fe In-

laws

applicable

to

life

insurance

companies

and

by

s urance, w hen .

filing its certificate with the Secretary of the State

showing that it ha s made the deposit required for

life insurance companies, has procured a license fro m

the Insurance Commissioner, and has complied with

the other requirements _of' life in surance companies.

Sec. 16. Be it further enact ed, That any mutual ,

industrial, life, health or accident insurance company

now existing under the laws of Georgia, or which Industrial,

inay

hereafter

be

organized

under

the

laws

of

thi

etc. , companies may

State,

may

become

a

stock

company

by

filing

a

cer-

become stock com-

pa nies, h ow.

tificate with the Secretary of State, showing that

three-fourths of its outstanding policyholder" have

146

INSURANCE LAws.

Power and authority. Statement showing agents.

voted in lawful meeting assembled to become a stock company, and that the capital of said company is fixed at not less than $25,000, and that the other requirements of the laws of this State in this behalf have been complied with; provided, however, that no publication or petition for charter shall be required in such instance, except as is hereinafter provided. Policyholders !in mutual companies may vote by proxy at meetings held for the aforementioned purpose. Said stock company when organized as afpresaid shall have all the power and authority as though it had been originally organized as a stock corporation. The managing agent of eacl~ insurance company in this State shall on October 1, 1912, and each three month s thereafter file with the Insurance Commissioner a statement showing the agents of his company, the amount paid for the license of each agent, and the date of its payment, which statement shall be verified by such managing agent.

Compensation of officers.

Sec. 17. Be it further enacted, That the officers of the Insurance Department heretofore mentioned shall be paid the following salaries : The Insurance Commissioner, $3,000 per annum; the Deputy Insurance Commissioner, wh? shall be a man of actuarial experience, $3,000 per annum; and the additional Clerk of the Department, $1,500 per annum. All of said sums to be paid out of the State Treasury as is now provided by law for the payment of salaries of all State House officers, and the said officers of the Insurance Department herein enumerated shall not receive any other fees or compensation whatso -

INSURANCE LAws.

147

ever. Provided, that in no event shall the salaries paid said officialS' exceed the fees received under the

provisions of this Act.

Sec. 18.

Be

it

further

enacted,

That

all

fees,

Fees, etc.

taxes,

license taxes and other dues and taxes now imposed

by the laws of this State and by this Act on insur-

ance companies, shall be collected aS' now provided by law, and paid into the State Treasury as herein-

before provided.

Sec. 19. Be it further enacted, That no offfcer,

agent or other person selling, or negotiating stock Commi$ion

on sale of

in any in~urance company in this State shall receive

stock limited to ten

either directly or indirectly more than ten per cent. per cent.

of the sales of any of said stock. No president, vice-

president, secretar y, treasurer, or director or any

other executive officer of any insurance company shall Officers pro-

hibited from

participate in the commissions received by any per-

participating in commis.

son selling, negotiating the sale of any stock of any sion.

insurance C?mpanies either directly or indirectly,

nor shall any salaried officer of any insurance com-

pany doing busineS's in this State participate in 'the

commissions arising from the sale of life insurance

policies or agency contracts of such companies.

Sec. 20. Be it further enacted, That no insurance company or insurance agent doing business in this State shall enter into any contract to rebate any insurance premium or any part thereof of any in- ~ib~fJ~~ prosured or other person. No person shall sell or offer for sale in Georgia and no insurance company sbalJ do business in this State wbic:h sells or offers for Discrimin-
ating con-
sale to the public any '' special contract,'' '' bo~rd tracts prohibited.

148

INSURANCE LAW S.

contract" or any other form of policy or contract

whereby any discrimination in any fo1:m or character

is allowed to any particular person or persons; p ro-

vided, however, that until the first day of January,

1915, the provisions of this Section shall not apply

to any life insurance company now in the process of

formation under commission from the Secretary of

State which will do a non-participating business only.

Any insurance company violating the provisions of

L icense re. voked, when.

this

Section

sh all

be

subj ect

to

have

its

license

re-

,-oked as hereinbefore provided. Any person acting

,is agent for any insurance company and the party

r eceiving the benefit of any such r ebate or di scrimi-

P enalty for v iolation.

nation in violation of this Section shall be deemed

guilty of the offense of misdemeanor and shall be

punished as provided in Section 1065 of the P enal

Code of 1910.

Medical examination. What may v old cont ract.

Sec. 21. Be it further enacted, That all insurance companies except companies writing policies of insurance on the industrial plan writing life in surance in this State, including fraternal orders and all other associations, shall be required to have made a strict medical examination of each and every person applying for life insurance. Such persons shall submit to such reasonable rules and regulations as may be prescribed by such insurance companies for the purpose of making such examinations, and after a policy is issued on the life of such person, the beneficiary of such policy shall be entitled to collect the amount of such policy under the terms of the contract when it matures unless th e applicant or beneficiary has

INSURANCE LAws.

149

been guilty of actual fraud or has made material misrepresentations in procuring such policy, which misr epresentations change the character and nature of the risk as contemplated in the policy so issued by the company. All statements, covenants and representations contained in applications for insurance shall never be held or construed to be warranties, but sball be held to.be representations only.

Sec. 22. Be it further enacted, Tbat any person

Observa tio n

or persons incorporated for the purpose of soliciting

of rules prerequisite to

or writing life insurance in .Georgia or for the pur- license.

pose of offering their stock in said company for sale

to the public before procuring a license for such

inco:rporation, shall comply with such reasonable

rules and regulations as the Insurance Commissioner

may in bis discretion prescribe.

Sec. 23. Be it further enacted, That each and

every fire insurance company doing business in this

State shall adopt and write a standard or uniform

S tandard fo r m of pol -

policy,

such

as may

be

pre scribed

by

the

Commis-

icy fo r fire insuran ce.

sioner, and it shall be unlawful to issue any other

class of policy in this State; provided, however, that

local assessment fire insurance companies doing busi-

ness in not more than four Counties in a division in E>xceptions

the State of Georgia, may issue and write such form

of policy as may be prescribed by the Commissioner.

Sec. 24. Be it further enacted, That the Commis-

sioner shall have the power, as hereinbefore pro-

vided, to appoint a competent person to be known as

"Fire

Inspector/'

and

when

any

property

is

de-

Fire In. spector.

stroyed or damaged by fire and the Commissioner

Duties. Powers.

150

INSURANCE LAWS.

deems it proper to have the cause of such :fire investigated, he shall cause said inspector to make a thorough investigation of all the facts connected with such :fire and report to him in writing under oath. Such inspector, when in his opinion such proceedings are necessary, shall take the testimony of all persons suppo sed to be cognizant or have information or knowledge in relation to the matter as to which the examination is herein required to be made, and he shall cause the same to be reduced to writing, and if he shall be of the opinion that there is evidence sufficient to charge any person with the crime of arson, he shall cause such person to be arrested on a warrant and cause the same to be fully investigated before an officer as is now provided for committal trials, or he shall furnish the Solicitor-General of the Circuit in which the :fire occurred all such facts, together with the names of witnesses and all the information obtained by him in such investigation. Such Fire Inspector appoint~d to conduct such examination shall have the same power as Justices of tl1e Peace for the purpose of summoning before him in the county where the :fire occurred and compelling the attendance of witnesses to testify in relation to any matter which by the provisions of this Act is the subject of investigation. Said fire inspector shall have the right to administer oaths to witnesses apponring before him and shall have tbe power to compel witnesses to answer questions pertaining to any investigation as now provided by law for committal Cou~ts, and said inspector shall have all the power now conferred by law on courts of inquiry in

INSURANCE LAws.

151

this State in the investigation of any matter coming before him under this Act.

Sec. 25. Be it further enacted, That said Fire Ins pector,

Inspector

for

the purpose

of making

the investiga-

authority to go upon

tion r equir ed by this Act, shall have authority to go premises.

upon the premises where the :fire occurred and make

investigation as .to the cause and origin of :fire.

Sec. 26. Be it further enacted, That the Insm:ance

Commissioner shall have power to prescribe the com-

In s pe c tor s,

pensation of the Fire Inspector for

all examinations

compensation, how

required by this Act, and said compensation shall

be

pres c ri bed a nd paid.

paid and all other expenses incurred in such exami-

nation shall be defrayed by the fire insurance com-

panies do.ing business in this State, and a tax of not

more than one-tenth of one per cent. in the discretion

of the Insurance Commissioner on the gross premi.um

receipt s of all such companies is hereby levied for Tax to de-

fray fees

this purpose,

to be

collected by the Insurance

Com-

and expenses, how

missioner as other taxes on premiums are now col - collected.

lected. The Insurance Commissioner .shall keep a

separate account of all moneys received arid ais-

bursed under the provisions of this Section and shall
include them in his report to the Legislature, z,rn-

vided, that should the amount thus collected in any

one year be in excess of the amount required to meet

the expenseS' herein contemplated, such excess shall

be held subject to the order of the Commissioner to

he u sed for the same purpose in the succeeding year,

provided Sections 25 and 26 shall not apply to as~.ef,;;-

ment farmers co-operative :fire companies doing lmsi-

152

INSURANCE LAws.

ness in this State in not more than four counties in a division.

Bon ding c omp a nies, deposit required.

Sec. 27. Be it further enacted, That before any surety or bonding company shall write any bonds in this State, it shall be required to deposit the sum of $25,000 with the State Treasurer, conclitioned as is' now provided by law- for the deposits required of such companies in writing bonds of public officials of this State. Pro viclecl, That whenever any such company sba11 have already deposited $25,000 as now required by law for writing bonds of publio officials it shall not be r equired to deposit an addi.tional sum.

Sec. 28. Be it further enacted, That the sum of

Appropria- $7,500, or so much ther eof as may be necessary,

ti on for pa yment of sa l.

be

appropriated

annua11y,

and

the

same

is

hereby

aries.

appropriated for the p ayment of all salaries herein

provided for and fixed for the first year's service

under this Act.

Sec. 29. Be it further enacted, That whenever any domestic life insurance company (a) is insolvent; or (b) has unlawfully refused to submit its books, p apers, accounts, or affairs to the reasonable insp ection of the Commissioner or his deputy or examiner; (c) or, in the case of a capital stock company, has neglected or refused to observe an order of the Commissioner to make good within the time prescribed by law, any deficiency of its capital, or, in the case of a mutual company, if its assets have not become equal to its liabilities within ninety (90) days from the date of notification thereof by the Commissioner;

INSURANCE LAws.

153

or, (d) has, by contract of reinsurance or otherwise,

transferred or attempted to transfer substantially its

entire property or business, or entered into any

transaction the effect of which is to merge substanti- Commis-

sioner shall

ally its entire property or business in the property

take possession of

or

business

of

any

other

company,

association, soci-

property a nd conduct bus-

ety or order without having first obtained the written

iness of companies,

when.

approval of the Commissioner; or (e) is found, after

an examination, to be in such condition that its fur-

ther transaction of business will be hazardous to its

policyholders, or to its creditors, or to the public;

or (f) bas wilfully violated its charter or any law of

the State; or (g) whenever any officer thereof has

unlawfully refused to be examined under oath touch-

ing its affairs, the Commissione! may, the. Attorney-

General r epresenting him, apply to the Circuit Court

or any judge thereof in the judicial district in which

the principal office of such company is located, for

an order directing such company to show cause why

the Commissioner should not take possession of its

property and conduct its business, and for such other

relief a s the nature of the case, the interest of its

policyholders, creditors, stockholders or the public

may require.

On such application, or at any time thereafter,
such Court may in its discretion, issue an injunction
restraining such company from the transaction of Injunctions granted,
its affairs or disposition of its property until the when.
further order of the court. On the return of such
0
order to show cause, the court shall hear, try and
determine the issues forthwith and shall either deny
the application or direct the Commissioner to take

154

INSURANCE LAws.

L IQuldauon

possession of the property, conduct the business of such company and retain such possession and conduct such business until on the application of either the Commissioner, the Attorney-General representing him, or such company, it shall, after a like hearing, appear to the court that the ground for such order directing the Commissioner to take possession has been removed, and that the company can properly resume possessfon of its property and the conduct of its business.
If on like application an order to show cause and after like hearing the Court shall order the liquidation of the business of such company, such liquidation shall be made by and under the direction of the Commissioner, who may deal with the property and business of such company in his own name as Commissioner or in the name of the company as' the court may direct, and the Commissioner shall be vested by operation of law with title to all the property, contracts and rights of action of such company, as of the date of the order so directing him to liquidate. The filing or recording of such order in the office of the Clerk of the Superior Court of the county wherein said liquidation is made, shall impart the same noticethat a deed, bill of sale or other evidence of title duly filed or recorded by such company would have imparted.
For the purpose of this Section the Commissioner ,ball have po~er to appoint und er bis hand and Jfficial seal one or more specia1 Deputy Commissionrs of Insurance as his agent or agents and to employ
1ch counsel, clerks and assistants, as may by him

INSURANCE LAws.

155

be deemed necessary and give each of such parties such powers to assist him as he may consider wise. The compensation of sueh Deputy, Special Commissioners, counsel, clerks and assistants and all expense -of taking possession of and conducting the busines of liquidating any such company shall be fixed by the Commissioner subject to the approval of the court, and shall on certificate of the Commissioner be paid out of the funds or assets bf such company.

For the purpose of this Se tion the Commissioner shaU have power subject to the approval of the court -to make and prescribe such rules and regulations a s to him may seem proper.

The Commissioner shall transmit to the Legisla-

ture in his annual report the names of the companies Annual re-

so

taken

possession

of,

whether

the

same

have

re-

port shall be made of all

sumed business or have been liquidated,

or such other

c o m p a n ie s t aken

charge of or

facts as shall acquaint the policyholders, creditors, liquidated.

stockholders and the public with his proceedings un-

der this Section, and to that end the Special Deputy

Commissioner in charge of any such company shall

fil e annually with the Commissioner a report of the

affairs of such company, similar to that required by

law to be filed by such company.

Sec. 3'0, Be it further enacted, That immediately

upon the granting of the charter to any insurance

company, and before it offers for sale any of its

-capital stock, such company so receiving a charter in

Supervision of com.

this State or bein chartered in any other State and

panies by Commis,

offering its

s to ck

for sale

in

this

State,

before

it

has

sioner on granting of

charter.

been organized and procured a license to do business

156

INSURANCE LAWS.

in this State, shall come under the superv1s10n of Insurance Commissioner, and shall collect, hold and disburse its funds under such rules and regulations~
as Insurance Commissioner may prescribe. T11e In-
surance Commissioner shall give directions a s to al]. use of funds so collected until same are invested as the law directs' and the company fully organized and licensed to do business in the State, thereby becoming subject to the h1les and regulations hereinbefore provided.
Sec. 31. Every insurance company organized under and doing business by virtue of the laws of this State shall have authority to invest its money or assets in and make loans on bonds of the United States, or of any State, county or city therein, first lien on improved real estate in any of the States of
Investments.
the United States, not exceeding fifty per centum of the value of such property; promissory notes amply secured by pledge of securities in which such companies are authorized to invest their funds; loans on their own policies not exceeding the reserve thereon, and invest in buildings for home office purposes. P rovided, however, that nothing herein contained shall authorize any such company to invest in any other than this State more than the legal reserve value of policies, held in such other State, respectively. Provided, furth er, that all such investments shall first be approved by the Insurance Commissioner of Georgia, except in case of loans on policies of the company not exceeding the reserve of the pol;cy at the time of the loan, and in any other

INSURANCE LAws.

157

securities approved of by the Insurance Commissioner.

Sec. 32. Be it further enacted, That any person or

persons acting as agents for any such companies a s Punishment

for viola ting

contemplated

in

the

previous

Section,

who

sh a1l

provisions of preceding

knowingly and wilfully violate the provisions of the section.

foregoing Section, shall be deemed guilty of a misde-

meanor, and punished as provided in Section 1065

of the Code of 1910.

Sec. 33. Be it furth er enacted, That the Board of Board of Directors.
Directors of all life in urance companies chartered by the la:Vs of this State shall consist of not less than five nor more than twenty members, a majority of whom must be bona fide residents of this State, and the majority of which Board shall constitute a quorum for the purpose of transacting business.

Sec. 34. NoN-RESIDENT FRATERNAL ORDERS. Be it

further enacted, That fraternal beneficiary societies

or organizations chartered under the laws of other

States or foreign gov rnments, except societies which

limit their membership to any one hazardous occupa-

N on-resident fra ternal

orders.

tion , shall not be allo';Ved to do business in this State

with a membership of less than 1,000 members, and

they shall be required to submit evidence to the

Insurance Commissioner that they have in cash or

approved securities at least one assessment on said

membership. Said societies or associations shall file

with Insurance Commissioner of thi s State a certified

copy of the rates charged on classes of policies being

issued by them. Said societies' or associations shall

stipu1ate definitely in the face of the policy the

158

INSURANCE LAWS.

amount to be paid to the beneficiaries under said policies, and said amount shall not be contingent upon the amount collected from the membership of any division or branch of said s.ociety or association. No poJicieS' shall be issued by such societies or associations without subj ecting applicants for insurance to medica] examination.

The Insurance Commissioner is hereby authorized to investigate fully the financial condition of such societies or associations, and if in his judgment, the management of their affairs is not such as to justify License. the issuance of a license to said society or aS'sociation, he is hereby fully empowered to decline to license such societies or associations, and in case they have already been licensed to revoke their authority to do business in this State as hereinbefore provided for the revocation of license of insurance companies. In the event such societies or associations fully comply with an the requirements of the laws of this State, they may be licensed to do business License fee. in Georgia upon the payment of a license fee of $40 .00.

Domestic fraternal orders.

Sec. 3'5. DOMESTIC :B1RATERN~L ORDERS. Be it further enacted, That domestic fraternal beneficiary societies or associations sball be chartered by the Secretary of State, and shall conform to all the requirements of the Act of 1893 with reference to the incorporation of insurance companies except that they shall not be required to have any capital stock.
When such companies or associations have been duly chartered by the Secretary of State and have

INSURANCE LAws.

159

received a certificate from said officer of their incor-

poration, upon application to the Insurance Commis-

sioner, they may be authorized by said officer to

solicit applications for membership in said societies

or associations, under such rules and regulations as may be prescribed by the Insurance Commissioner. Licenses.

When such societies or associations have obtained

not less than 300 bona fide applications for insurance,

the advance assessments on which have been paid,

and a list of the subscribers with their postoffice ad-

dress and the amount of their advance assessments

has been submitted to the Insurance Commissioner,

and by him verified, together with affidavit that said

assessments are deposited with some bank or trust

company duly certified by said bank or trust com-

pany, the Insurance Commissioner, if satisfied that

the character of the officers of such societies or asso

ciations guarantees honest and efficient management

of the association's affairs, shall issue license to such

societies or associations to do business in this State

upon the payment of a license fee of $4-0.00. No License fee.

policies shall be issued by such societies or associa

tions without subjecting applicants to medical ex-

amination. The Insurance Commissioner is hereby

authorized to investigate fully the financial condi-

tions of such societies or associations at any time,

Licenses may be re-

and if in bis judgment the management of the affairs

fused or revoked, when.

of such society or association is not such as to justify

the issuance of the license, he is hereby fully em-

powered to refuse license to such societies or associa-

tions, and in case they have already been licensed

such license may be revoked, as hereinbefore pro-

160

INSURANCE LAWS.

vided for the revocation of license of insurance companies.

All foreign or domestic fraternal companies, corporations, orders, associations and beneficiary societies soliciting business in this State must have a representative form of government. Any such company, corporation, order, association or beneficiary society Form ot shall be deemed to have a representative form of government. government when it shall provide in its constitution and ]aws for a supreme legislative or governing body

composed of representatives elected either by the members or by delegates elected either directly or indirectly by th e member s together, with such other members a s may be prescribed by its constitution and laws; provided, that the elective members shall constitute a majority in number, and have not ]ess than two-third s of the vote, nor less than the votes required to amend its constitution and laws. No member of any domestic insurance fraternity, who is a director or manager of such insurance fraternity, shall have a contract for fees on premiums from such fraternity.

Sec. 36. Be it further enacted, That all industrial life insurance companies chartered under the laws of this State to do business on the mutual co-opera-

Industrial tive or assessment plan, and limiting their policie

li fe compa nies con

to the sum not exceeding $500, shall stipulate

ducted on mutual or

definitely in the face of the policies the amount to be

a ssessment

plan; regula t!on and re-

paid

to

the

beneficiaries under

said

policies

in

the

quirements. event of the death of the assured. I n no event shall

payments to beneficiaries by such companies be con-

tingent upon the number of policyholders in the .com-

INSURANCE LAws.

161

pany nor on the number in any division or branch of such company. Th~ intention of this law being to require the payment of the full face of the policy as stipulated therein without regard to the sub-divisions of the membership by such insurance companies in the management of their affairs. No policies shall be issued by such companies without subjecting applicants for such insurance to medical examination. It shall be the duty of the Insurance Commissioner to investigate the rates of premiums which are to be charged by all such companies and he is hereby authorized to require said companies to charg:e such rates as are adequate to pay their policies at maturity. Provided, that companies doing business on the industrial plan shall not be required to have medical examiners.

Sec. 37. Be it further enacted, That life insurance

Life Insur-

companies

chartered

by

the

laws

of

this

State

to

ance on mutual plan,

operate

on

the

mutual

co-operative

or

assessment

regulations and require-

plan without limitation as to the amount for which ments.

policies of said company are to be issued, shall stipu-

late definitely in the face of the policies the amount

to be paid to beneficiaries on the said policies in

the event of the death of the assured. In no event,

shall payments to beneficiaries by such companies

be contingent upon the number of policyholders in

the company or on the number in any division or

branch of such company. The intention of this law

being to require the payment of the full face of the

policy as stipulated therein without regard to sub-

divisions of the membership of such insurance com-

162

INSURANCE LAWS.

panies in the management of their affairs. No policy shall be issued by such companies without subjecting applicants for such insurance to medical examination. It shall be the duty of the Insurance Commissioner to investigate the rates of premiums which are to be charged by all such companies, and he is hereby authorized to require said companies to charge such rates as are deemed by him adequate to pay their policies .at maturity.

Income or guaran ty certifi cates: Act repealed, with exceptions.

Sec. 38. Be it further enacted, That from and after the passage of this Act no income or guarantee fund certificates, as provided for in the Act approved August 16, 1909, shall be issued in this State; provided, that the provisions of this Section shall not apply to insurance companies now chartered and organized in this State and issuing and selling such certificates until the first day of January, 1913, and said Act being entitled '' An Act to fix the amount of solvent assets, which mutual aid, benefit and industrial life insurance companies shall have and maintain; to provide a method by which said companies, organized under the co-operative or mutual assessment plan, may procure such assets; and to provide for the manner of investing the assets of such companies; to provide for an examination of such companies by the Insurance Commissioner, and for other purposes," which Act provides for the issuing of such certificates, be and the same is hereby repealed.

Fire Insur- Sec. 39. Be it furth er enacted, That all insurance

ance com. panies, mu-

companies chartered under the laws of this State to

tual, deposit

required. do a fire insurance business upon the mutual, co-

INSURANCE LAws.

163

operative or assessment plan, shall before receiving a license from the Insurance Commissioner, deposit with the State Treasurer of Georgia registered bonds of the United States or of the State of Georgia or county or municipal bonds of this State, registered and validated in the sum of $10,000. Said deposit to be made under the same conditions that deposits of non-resident fire insurance companies are made _with the State T'reasurer; provided, that this shall Exceptions. not apply to such companies as operate in not more
than four counties in a division in this State, or to
farmers' co-operative companies doing fire insurance business in this State on the a ssessment plan where their policies stipulate that all the property, real and personal, of the policyholders is pledged for the payment of the policy.

Such companies shall always have in good assets

Amount of

an amount equal to the unearned premium liability assets re-

quired.

of the company required of all classes of fire insur-

Emergency clause.

ance companies by the laws of this State. All poli-

cies issued by such companies shall embrace what is

termed an emergency clause, whereby the company

reserves the right to call for extra a ssessments from

its policyholders whenever the contingency arises.

Samples of all policy contracts ~o be used by such

companies shall, before issuance, be submitted to the

Insurance Commissioner for bis approval.

Sec. 40. Be it further enacted, That all laws and parts of laws in conflict with this Act be, and tb e same are, hereby repealed.

Approved August 19, 1912.

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INSURANCE LAWS.

AN ACT
Requiring all promissory notes or other contracts taken for the purchase of any gold mining stock, silver mining stock, oil well stock, insurance stock, or any other stock in any incorporated company, domestfo or foreign, when sold by any peddler, agent or traveling salesman or promoter, traveling for the purpose of making sales of such articles or stocks to have expressed in the face of such notes or contracts the consideration or kind of stock for which the same was given and to render such notes or other contracts void without so doing, and providing that all purchasers of such notes or contracts where the consideration is so expressed and whether before due or not, shall take the same with due notice and subject to all the equities and defences existing between the original parties, and to provide a penalty for failure to comp]y with this A'ct.
Section 1. Be it enacted by the General Assembly of Georgia and it is hereby enacted by the authority of ,the same, That from and after the passage of this Act all promiss ory notes, contracts or other evidences of debt, taken by any person, company, or corporation, agent or promoter for the purchase price of any gold mining stock, silver mining stock, or any other stock in any incorporated company, domestic or foreign, and sold by any peddler, agent or traveling salesman or promoter traveling for the purpose of making sales, shall have expressed on the face of such notes, contracts or other evidence of

INSURANCE LAws.

lo5

debt, the consideration of the same, stating for what the same was given; provided, this Act shall not apply to sales after the original purchase price has .been paid, and certificates of stock have been issued.

Sec. 2. Be it further enacted, That an:y person,

firm or corporation who may purchase any note,

contract or other evidence of debt, given for any of

the stock set forth in Section one of this Act, when

the consideration is expressed in the face of the note

P urchasers take subject

to equities.

or contract as required in Section one, whether be-

fore due and without notice or otherwise, where the

consideration is so expressed, shall take the same

with all the equities existing between the original

parties and the maker of such notes, contracts or

other evidences of debt and the maker shall have

the right to make any defence to the payment of

same, as against such purchasers that could have

been made against the original payee.

Sec. 3'. Be it further enacted by the authority aforesaid, That any person or corporation violating the provisions of this Act by selling any of tb e
Penalty for
stocks mentioned in this Act without expressing in violation. the face of the notes or contracts or other evidences of debt tbe consideration for which the same wa s givAn, shall be guilty of a misdemeanor and on conviction shall be punished a s provided by Section 1065 of the Penal Code of 1910.

Sec. 4. Be it further enacted, That all laws and parts of laws in conflict with this Act be, and th e same are, hereby repealed.

Approved by the Governor, August 17, 1912.

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INSURANCE LAWS.

FIRE INSURANCE COMPANIES, FOREIGN, WITHDRAvVAL FROM STATE.

No. 42.

An Act providing upon what conditions, and how and in what manner a foreign fire insurance company or association doing business in this State, which reinsures all its policies and contracts in force in this State, may retire and withdraw from the State, including any and all securities on deposit with State officials, 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, that any foreign fire insurance company or association doing business in thi s State and desiring to retire from this State before the maturity or expiration of its policies or contracts, may, upon filing with the Insurance Commissioner a written notice of such intention to withdraw, together with a s,vorn sta:tement of its outstanding liabilities or obligations under all such policies or con'tracts, so retire or withdraw, including any and all securities on deposit with the State official designated by law for the protection of the beneficiaries of such policies or contracts, provided such company or companies, as a condition precedent to such withdrawal, reinsure all such policies or contracts, in some other company or companies authorized to do busin ess in this State, and shall file with said Insurance Commissioner a list showing the name or names of such company or companies in which such outstanding policies, contracts or obligations have been so reinsured; and provided further, that the securities on deposit as aforesaid, shall not be so withdrawn from the cu stody, control and possession

INSURANCE LAWS.

167

of said State official until after such proof a s may be r equired by said Commissioner bas first been furnished him that there are, at the time of such withdrawal, no unsettled claim, or claims or lo sses outstanding against said comp any or companies so desiring to \vithdraw; and prqvided further, that said reinsurance shall be approved by the Ins1-uance Commissioner.
SEc. 2. Be it further enacted by the authority aforesaid, That all laws and parts of laws in conflict herewith be, and the same are hereby repealed.
Approved August 6, 1913.

INSURANCE COMPANIES, REGULATION AND CONTROL OF.
No. 239.
An Act to better r egulate and control the organization and operation of corporations (foreign and domestic) doing an industrial, health, life or accident insurance business in th e State of Georgia, and to provide penalties, and for other purposes.
SECTION 1. Be it enacted by the General Assembly of the State of Georgia, and it is hereby enacted, That no insurance company or association doing business in this State, and no officer, director or agent thereof shall knowingly issue, circulate, or cause to be issued or circulated any estimate, illustration, circular or statement of any sort misrepresenting the terms of any policy issued by it, or the benefits or advantages promised thereby, or dividends or shares of surplus to be received thereon, or shall use any name or title of any policy or class

168

INSURANCE. LAWS.

of policies which misrepresent the true nature thereof. Provided nothing contained in this section nor in this Act shall apply to any company or corporation except to companies or corporations doing an industrial, life, health or accident insurance business; nor shall it apply to any policy, membership or beneficial certificate except it be an industrial, health, life or accident insurance policy membership or certificate.
SEc. 2. Be it further enacted, by the authority aforesaid, That from and after the passage of this Act no agent, director or officer shall knowingly and wilfully receive any premium or assessment on behalf of any insurance company or association or fraternal organization, knowing at the time of receipt of said premium or assessment that said company or association is insolvent according to the laws of the State of the organization of said company without giving notice thereof to the person paying the said premium or assessment. That no officer, director, agent, physician or other person shall knowingly is sue or cause to be issued a policy or benefiit certificate, nor aid in the issuing of any policy or benefit certificate, nor aid in the reinstating in membership or policy standing of any infirm or unhealthy person not at the time of such r einstatement or insurance in an insurable condition, with the intent to defraud, shall be guilty of a misdemeanor.
SEc. 3. Be it further enacted by the /authority aforesaid, That no person shall knowingly or wilfully make or aid in making of any false or fraudulent statement representation of any material fact or thing in any written statement or certificate for the purpose of procuring or attempting to procure the payment of any false or fraudulent claim against any such insurance company or fraternal or oenefit

INSURANCE LAws.

169

association, and no person shall make any false or fraudulent statement or aid in the making of any false or fraudul ent statement in any application for insurance, or as ,to the death or disability of the policy or certificate holder for the purpose of fraudulently obtaining any money or benefit from any such insurance company or fraternal or benefit association licensed to do business in this State.
SEc. 4. Be it further enacted, That no person shall act as agent or solicitor for any insurance com:. pany, benefit association or fraternal organization in this State without having first procured a license therefor from the Insurance Department of this State as required by the law.
SEc. 5. Be it furth er enacted by the authority aforesaid, That any person who violates this Act shall be guilty of a misdemeanor and upon conviction ' shall be punished as provided by Section 1065 of the Code of Georgia of 1910.
SEc. 6. Be it further enacted by the authority aforesaid, That the Insurance Commissioner or Deputy Insurance Commissioner of this State shall have full power to is sue subpoenas and process requiring the presence of witnesses and the production of books and papers before him at the place where any investigation is being had by him, or either of them; and in the event any person who is served with such subpoena fails to comply therewith, he shall be punished as for a contempt by the superior court of the county in which the hearing is being had, and the superior courfa of this State are fully empowered hereunto, including the power to issue attachments or other processes or notice, to the end that the person so subpoenaed may have his p,roper notice and his day in court.

J1'T<,URANCE LAWS.
SEc. 7. Be it fnrthe-r enacted, That any laws or parts of laws in conflict with this Act be and the same are hereby repe}l led.
Approved August 19, 1913.

lNSURANUB LAws.

171

INSURANCE COMPANIES, PRIDREQUISITE TO RECEIVERSHIP FOR.

No. 439.

An Act to amend an Act approved August 19th, 1912, es-

tablishing the Insurance Department of this State, and

for other purposes, published in the Georgia Laws of

1912, pages 119-143, inclusive, and for other purposes.

I



SECTION 1. Be it enacted by the General Assembly of

Georgia, That an Act approved August 19th, 1912, and pub-

lished in Georgia Laws, 1912, pages 119 to 143, inclusive,

providing for the establishment of the Department of In-

surance in this State, and for other purposes, under the

following title:

"Insurance, Department of, Established, No. 628: An Act to provide for the estabJishmE)nt of a Department of Insurance; to provide officers therefor, stipulate their salaries; to regulate and control the organization of insurance companies; to prescribe the duties and powers of the Insurance Commissioner; to piohibit discrimination by insurance companies; to prescribe penalties for the violation .of the insurance laws of the State; to provide for the general supervision by the Insurance Commissioner of an insurance companies and for the sale of stock in such companies and the general management and conduct of such companies; to require bond and fidelity companies to make deposits; to regulate all for eign and domestic fraternal companies, corporations, orders, associations, and beneficiary societies soliciting business in this State; to prohibit the issuing of income or guarantee fund certificates and for other purposes,'' be amended by adding thereto an additional section to be known as Section 29A and to follow Section 29, of said Act, as now existing, said additional section to read as follows:

'' SECTION 29'..A.. Before any insurance company chartered under the laws of this State or doing business in this

172

I SURANCE LAWS.

State shall hereafter be put in the hands of receiver by any court of equity in this State, upon any claim or demand not in judgment, it must first appear that the cause of complaint and the matters and grounds upon which the receivership is sought have been submitted, by the complainant, to the Insurance Commissioner of this State, and that such complaint of the complainant and the matters charged against such insurance company have been pas d upon by the Insurance Commi sioner sitting i_n connection with the Governor and the ttorney-General in the manner hereinafter provided, to-wit.: The Insurance Commisioner, the Governor and the Attorney-General sitting as a board as provided in Section 5, of said Act of August 19th, 1912, shall, upon such matters and complaint as referred to previous'ly in this section, being filed with the Insurance Commissioner, proceed to hear the same after giving both the complainant and the insurance company in question, opportunity to be heard, ample and legal time, however, being given for the production of such evidence as either party may deem necessary. During the pendency of such proceedings, the Insurance Commi sioner shall ord er the company and its officers to maintain the assets in statu qiw . Upon hearing same, said commission, or a majority of them, shall render a decision and judgment recommendin or declining to recommend that the commissioner make application, in accordance with the foregoing Section 29, for an order directing the company to show cause why th e commissioner should not take posse sion of its property and conduct its business. No receiver for an insurance company doing business in this State shall be appointed on the petition of any person other than the Insurance Commissioner, unless it be made to appear to the court where application for such appointment is made, that the Insurance Commissioner has failed or refused to comply and proceed with the findings of said board.
SEc. 2. Be it further enacted, That all laws and parts of laws in conflict with this Act are hereby repealed.
Approved August 14, 1914.

INSURANCE LAWS.

173

FRATERNAL BENEFIT1 SOCIE.TIES REGULATED.
No. 524.
An Act for the regulation and control of all fraternal benefit societies ; to prescribe their admission into this State; the amount of license fee for each society; how they may be excluded from the State, and for other purposes.
Be it enacted by the General Assembly of th e State of Georgia, and it is hereby enacted by the author ity of tM same,
SECTION 1. Any corporation, society, order or voluntary as'SOciation, without capital stock, organized and carried on solely for the mutual benefit of its members and their beneficiaries and not for profit, and having a lodge system with ritualistic form of work and representative form of government and which shall make provision for the payments of benefits, in accordance with Section 5 hereof, is hereby declared to be a fraternal benefit society.
SEc. 2. Lodge System Defined. Any society having a supreme governing legislative body and subordinate lodges or branches by whatever name known, into which members shall be elected, initiated, and admitted in accordance with its constitution, laws, rules, regulations, and prescribed ritualistic ceremonies, which subordinate lodges or branches shall be required by the laws of such society to hold regular or stated meetings at least once in each month,_shall be deemed to be operated on the lodge system.
SEc. 3. Representative Form of Government Defined; Any such society shall be deemed to have a r epresentative form of government when it shall provide in its constitution and laws for a supreme legislative or governing body, com-
'

174

INSURANCE LAws.

posed of representatives elected either by the members or by delegates elected directly or indirectly by the members, together with such other members as may he prescribed by its constitution and laws; proviclecl, that the elective members shall constitute a majority in number and have not less than two-thirds of the votes, nor less than the votes required to ai:i;iend its constitution and laws ; and provided furth er, that the meetings of the supreme or governing body, and the election of officers, representatives or delegates shall be held as often as once in four years. The members, officers, representatives or delegates of a fraternal benefit society shall not vote by proxy.
SEO. 4. E xemptions. Except as herein provided, such societies shall be governed by this Act, and shall be exempt from all provisions of the insurance laws of this State, not only in governmental relation with the State, but for every other purpos e, and no law hereafter enacted shall apply to them, unless they be expressly designated therein .
SEo. 5. Benefits. Sub-Section 1. Every society tran sacting business under this Act shall provide for the payment of death benefits, and may provide for the payment of benefits in case of temporary or permanent physical disability, either as the result of disease, accident or old age; provided, the period of life at which the payment of benefits for disability on account of old age shall commence, shal1 not be under seventy years, and may provide for monuments or tombstones to the memory of its deceased members, and for the payment of funeral benefits. Such society shall have the power to give a member, when permanently disabled or on attaining the age of seventy, all, or such portion of the face value of his certificate as the laws of the society may provide; provided, that nothing in this Act contained shall be so construed as to prevent the issuing of benefit certificates for a term of years less than the whole of life which are payable upon the death or disability of the member occurring within the term for which the benefit certificate may be issued. Such society, shall, upon written application of the member, havethe power to accept a part of the

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175

periodical contributions in cash, and charge the remainder, not exceeding one-half of the periodical contribution, against the certificate with interest payable or compounded annually at .a rate not lower than four per cent per annum; provided, that this privilege shall not be granted except to societies which have r eadjusted or may hereafter readjust their rates of contributions, and to contracts affected by such readjustments.
Sub-Section 2. Any society which shall show hy the annual valuation hereinafter provided for that it is accumulating and maintaining the r eserve not lower than the usual reserve computed by the American Experience Table and four per cent interest, may grant to its members extended and paid-up protection, or such withdrawal equities as its constitution and laws may provide; provided, that such grants shall in no case exceed in value the portion of the r eserve to the credit of such members to ,;vhom they are made.
SEc. 6. Beneficiari es. The payment of death benefits shall be confined to wife, husband, relative by blood to the fourth degree, father-in-law, mother-in-law, son-in-law, daughter-in-law, step fath er, step mother, step children, children by legal adoption, or to a person or persons dependent upon the member; provided, that if after the issuance of the original certificate the member shall become dependent upon an incorporated charitable institution, he shall have 1he privilege with the consent of the society to make sur,h institution his beneficiary. within the above r estrictions each member shall have the right to designate his beneficiary, and from time to time, have the same changed in accordance with the laws, rules or regulations of the society, and, no beneficiary s1rn11 have ,or obtain any vested interest in the said benefit until the same has become due and payable upon the death of the said member; provided, that any society may, by its laws, limit the scope of beneficiaries within the above classes.
SEc. 7. Qualifications for Membership. Any society may admit to beneficial membership any person not less

176

INSURANCE LAWS.

than sixteen and not more than sixty years of age, who has been examined by legally qualified physician, and whose examination has been supervised and approved in accordance with the laws of the society; provided, that any beneficiary member of su ch society who shall apply foi a certificate providing for disability benefits, need not be required to pass an additional medical examination therefor. Nothing herein contained shall prevent such society from accepting general or social members.
SEc. 8. Certificate. Every certificate issued by any such society shall specify the amount of benefit provided thereby, and shall provide that the certificate, thecharter or articles of incorporation, or, if a voluntary association, the articles of association, the constitution and laws of the society and the application for membership and medical examination, signed by the applicant, and all amendments, to each thereof, shall -constitute the agreement between the society and the member, and copies of the same certified hv the secretary of the society, or corresponding officer, shall be received in evidence of the terms and conditions thereof, and any shall constitute the agreement between the society and the member, and copies of the same certified by the secretary of the society, or corresponding officer, shall be received in evidence of the terms and conditions thereof, and any changes, additions, or amendments to said charter or articles of incorporation, or articles of the associations, if a voluntary association, constitution or laws duly made, or enacted subsequent to the issuance of the benefit certificate shall bind the member and his beneficiaries, and shall govern and control the agreement in all respects the same as though such changes, additions, or amendments had been made prior to and were enforced at the time of the application for membership.
SEc. 9. Funds. Sub-Section 1. Any society may create, maintain, invest, disperse and apply an emergency, surplus or other similar funds in accordance with its laws. Unless otherwise provided in the contract, such funds shall be held, invested, and disbursed for the use and benefit of the society

INSURANCE LAWS.

177

and no member or beneficiary shall have or acquire individual rights therein or become entitled to any apportionment or the surrender of any part thereof, except as provided in sub-Section 2 of Section 5 of this Act.
The funds from which benefits shall be paid and the funds from which the expenses of the society shall be defrayed, shall be derived from periodical or other payments by the members of the society and accretions of said funds ; provided, that no society shall hereafter be incorporated which does not provide for stated periodical contributions sufficient to provide for meeting the mortuary obligations contracted, when valued upon the basis of the National Fraternal Congress Table of Mortality as adopted by the National Fraternal Congress, August 23d, 1899, or any higher standard with interest assumption not more than four per cent per annum, nor shall any such society be admitted to transact business in this State which does not provide for stated periodical contributions sufficient to provide for meeting the mortuary obligations contracted when valued upon one of the bases named in Section 23A of this bill and applicable thereunder to such society.
No society, domestic or foreign, shall hereafter be incorporated or admitted to write or accept members for permanent disability benefits except upon tables based upon reliable experience with an interest assumption not higher than four per cent.
Sub-Section 2. Deferred payments, or instaHments of claims shall be considered as fixed liabilities on the happening of the contingency upon which such payments or installments are thereafter to be paid: Such liability shall be the present value of such future payments or installments upon the rate of interest and mortality assumed by the society for valuation, and every society shall maintain a fund sufficient to meet such liability r~gardless of proposed future collections to meet any such liabilities.
SEC. 10. Investments. Every society shall invest its fundS' only in securities permitted by the laws of this State for the investment of the assets of life insurance companies;

178

INSURANCE LAWS.

providecl, that any foreign society permitted or seeking to do business in this State, which invest s its fund s in accordance with the la:ws of the State in which it is incorporated, shall be he]d to meet the requirements of this Act for the investment of funds.
SEc. 11. Distribution of Funds. Every provision of the laws of the society for payment by members of such society, in whatever form made, shall distinctly state the purpose of the same and the proportion thereof which may be used for expBnses, and no part of the money collected for mortuary or disability purposes on the net accr etions of either or any of said funds shall be used for expenses.
SEc. 12. Organization. Seven or more persons, citizens of the United States, and a majority of whom are citizens of this State, who desire to form a fraternal benefit society, as defined by this Act may make and sign (giving their addresses) and acknowledge before some officer competent to take acknowledgement of deeds, articles of incorporation, in which shall be stated:
First: T'he proposed corporate name of the society, which shall not so closely resemble the name of any society or insurance company already transacting business in this State as to mislead the public or to lead to confusion:
Second: The purpose for which it is formed--which shall not include more liberal powers than are granted by this Act, provided that any lawful social, intellectual, educational, charitable, benevolent, moral or religious advantages may be set forth among the purposes of the societyand the mode in which its corporate powers are to be exercised.
Third: The names, residences and official titles of all the officers, trustees, directors or other persons who are to have and exercise the general control and management of the affairs and funds of the S'Ociety for the first year or until the ensuing election at which all such officers shall be elected by the supreme legislative or governing body, which election shall be held not later than one year from the date of the

INSURANCE LAWS.

179

issuance of the permanent certificate. Such articles of incorporation and duly certified copies of the constitution and laws, ruleS' and regulations, and copies of all proposed forms of benefit certificates, applications therefor and circulars to be issued by such society and a bond in the sum of five thousand dollars, with sureties approved by the Insurance Commissioner, conditioned upon the return of the advanced payments as provided in this section, to applicants, if the organization is not completed within one year, shall be filed with the Insurance Commissioner, who may require such further information as he deems necessm7, and if the purposes of the society conform to the requirements of this Act, and all provisions of law have been complied with, the Insurance Commissioner shall so certify and retain and r ecord (or file), the articleS' of incorporation, and furnish the incorporators a preliminary certificate authorizing said society to solicit members as hereinafter provided.
Upon receipt of said certificate from the Insurance Commissioner, said society may solicit members for the purpose of completing its organization and shall collect from each applicant the amount of not less than one regular monthly payment, in accordance with its table of rates as provide :l by its constitution and laws, and shall issue to each such applicant a receipt for the amount so collected, but no such society shall incur any liability other than for such advanced payments, nor issue any benefit certificate nor pay or allow, or offer, or promise to pay or allow, to any person any death or cfaiability benefit until actual bona fide applications for death benefit certificates have been secured upon at least five hundred lives for at least one thouS'and dollars each, and all such applicants for death benefits shall have been regularly examined hy legally qualified practicing physicians, and certificates of such examinations have been duly fil ed and approved by the chief medical examiner of such society; nor until there shall be established ten subordinate lodges or branches into' which said five hundred applicants have been initiated; nor until there has been submitted to the Insurance Commissioner under oath of the

180

INSURAN CE LAWS.

president and secretary, or corresponding officers of such society, a list of such applicants, giving their names, addresses, dates examined, dates approved, dates initiated, name and number of the subordinate branch of which each applicant is a member, amount of benefits to be granted, rate of stated periodical contribution s, which shall be sufficient to provide for meeting the mortuary obligations contracted, when valued for death benefits upon the basis of the National F 'raternal Congress Tab]e of Mortality, as adopted by the National Fraternal Congress, August 23d, 1899, or any higher tandard at the option of the society, and for disabi]ity benefits by tables based upon re]iab]e experience and for combined death and permanent total disability benefits by tables based upon reliable experience, with an interest assumption not higher than four per cent per annum; nor until it shall be shown to the Insurance Commissioner by the sworn statement of the treasurer, or corresponding officer of such society, that at least five hundred app]icants have each paid in cash at least one regular month]y payment as herein provided per one thousand dollars of indemnity to be effected, which payments in the aggregate shall amount to at lea st twenty-five hundred dollars; all of which shall be credited to the mortuary or disability fund on account of such applicants, and no part of which may be used for expenses.
Said advanced payment shall, during the period of organization, be held in trust, and if the organization is not completed within one year as hereinafter provided, returned to said applicants.
The Insurance Commissioner may make such examination and require such further information as he deems advisable, and, upon presentation of satisfactory evidence that the society has complied with all the provisions of law, he shall issue to such society a -certificate to that effect. Such certificate shall be prima facie evidence of the existence of such society at the date of such certificate.
The Insurance Commissioner shall cause a record of such certificate to be made and a certified copy of such

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181

record may be given in evidence with like effect as the original certificate.

No preliminary certificate granted under the provisions of this section shall be valid after one year from its date or

after such further period, not exceeding one year, a s may be authorized by the Insurance Commissioner, upon cause

shown; unless the five hundre l applicants herein required

have been secured and the organization has been completed as herein provided; and the articles of incorporation and

all proceedings thereunder shall become null and void in one

year from tbe date of said preliminary certificate, or at the

expiration of said extended period, unl ess such society shall

have completed its organization and commenced business as

herein provided.

TiThen any domestic society shall have discontinued

business for the period of one year, or has less than four

hundred members, its charter shall become null and void.

Every such society shall have tbe power to make a con-

stitution and by-laws for the government of the society, the

admission of its members, the management of its affairs

and the fixing and readjusting of the rates of contribution

of its members from time to time; and it shall bave the

power to change, alter, add to or amend such constitution

and b~r-laws and shall have such other powers as are neces-

sary and incidental to carry into effect the objects and

purposes of the society.



SEc. 13._Powers Retained-Reincorporation-Amendments. Any society now engaged in transacting business in this State may exercise, after the passage of this Act, all of the rights conferred thereby, and all of the rights, powers and privileges now exercised or possessed by it nd er its charter or articles of incorporation not inconsistent with this Act, if incorpe>rated; or, if it be a voluntary association, it may incorporate hereunder. But no society already organized shall be required to reincorporate hereunder, and any such society may amend its articles of incorporation from time to time in the manner provided therein or in its constitution and laws, and all such amendments shall be

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INSURANCE LAws.

filed with the Insurance Commissioner and shall become

operative upon such filing, unless a later time be provided

in such amendments or in its articles of incorporation, con-

stitution or laws.

SEc. 14. Mergers and Transfers. No domestic society

shall merge with or accept th(:) transfer of the membership

or funds of any other society unless such merger or trans-

fer is evidenced by a contract in writing setting out in full

the terms and conditions of such merger or transfer, and

filed with the Insurance Commissione~ of this State, to-

gether with a sworn statement of the finan cial condition of

each of said societies, by its president and secretary, or cor-

responding officers, and a certificate of such officers, duly

verified under oath of said officers of each of the contracting

societies, that such merger or transfer has been approved

by a vote of two-thirds of the members of the supreme

legislative or governing body of each of said societies.

Upon the submission of said contract, financial state-

ments and certificates, the Insurance Commissioner shall

examine the same, and, if he shall find such financial state-

ments to be correct and the said contract to be in con-

formity with the provisions of this section, and that such

merger or transfer is just and equitable to the members of

each of said societies, be shall approve said merger or

transfer, issue his certificate to that effect and thereupon

the said contract of merger or transfer shall be of fu]l foice

and effect.



In case such contract is not approved, the fa ct of its

submis sion and its contents shall not be disclosed by the

Insurance Commissioner.

SEc. 15. Annual License. Societies which are now

authorized to transact business in this State may continue

such business until the first day of April next succeeding

the passage of this Act, and the authority of such societies

may thereafter be renewed annually, but in all cases to ter-

~inate on the first day of the succeeding April; provided,

however, the license shall continue in full force and effect

until the new licen se be issued or specifically refused. For.

each such license or renewal the society shaJl pay the Com-

INSU RANCE LAWS.

183


missioner of Insurance forty dollars. A duly certified copy

or duplicate of such license shall be prima facie evidence

that the license is a fraternal benefit society within the

meaning of this Act.

SEc. 16. Admission of Foreign Society. No foreign

society now transacting business, organized prior to the

passage of this Act, which is not now authorized to transact

business in this State, shall transact any business herein

without a license from the Insurance Commissioner. Any

such society sh all be entitled to a license to transact busi-

ness within this State upon filing with the Commissioner a

duly certifi ed copy of its charter or a rticles of a sociation ;

a copy of its constitution and laws, certified by its secretary

or corresponding officer; a power of attorney to the com-

missioner as hereinafter provided; a statement of its busi-

ness under oath of its president and secr etary, or corres-

ponding officers, in the form required by the .commissioner,

duly verified by an examina tion made by the supervising

insurance official of its home State or other State satisfac-

tory to the Commissioner of Insurance of this State ; a

certificate from the proper official in its borne State, prov- .

ince or co untry, that the society is legally organized; a copy

of its contract, which must sh ow that benef~ts are provided

for by periodical, or other payments by persons holding

similar contracts; and upon furni shing the commissioner

such other information as be may deem necessary to a

proper exhibit of its blisiness and plan of working, and

upon showing that its assets are invested in accordance

with the laws of the State, territory, district, province or

country wh ere it is organized, he shall issue a license to

such society to do business in this State until the fir st day

of the succeeding April , and such license shall, upon com-

pliance with the provisions of this Act, be renewed an-

nually, but in all cases, to terminate on the first day of the

succeeding April; provided, however, that license shall con-

tinue in full force and effect until the new license be issued

or specifically refused .

Any foreign society desiring admission to this State,

shall have the qualifications r equired of domestic societies

184

INSURANCE LAws.

organized under this Act, upon a valuation by any one of the standards authorized in Sec. 23A, of this Act, and have its assets invested as required by the laws of the State, territory, district, country, or province where it is organized.
For each such license or renewal the society shall pay the commissioner twenty dollars. ,iVhen the commissioner refuses to license any S'oc.iety, or revokes its authority to do business in this State, he shall reduce his ruling, order or decision to writing and file the same in his office, and shall furnish a copy thereof together with a statement of his reason, to the officers of the society, upon request, and the action of the Commissioner shall be reviewahle by proper proceedings in any court of competent jurisdiction within the State; provided, how ever, that nothing contained in this '>r the preceding section shall be taken or constred a~ preventing any such society from continuing in good faith all contracts made in this State during the time such society was legally authorized to transact business herein.
SEc. 17. Power of Attorney and Service of Proces s. Every society, whether domestic or foreign, now transacting business in this State shall, within thirty days after the passage of this Act, and every such society hereafter applying for admiS'sion, shall, before being licensed, appoint in writing the Insurance Commissioner and his successors in office to be its true and lawful attorney, upon whom all legal process in any action or proceeding against it shall be served, and in such writing shall agree that any lawful process again st it which is served upon such attorney shall be of the same legal force and validity as if served upon the .society and that the authority shall continue in force so long as any liability remains outstanding in this State.
Copies of such appointment, certified by said Insurance Commissioner, shall be deemed sufficient evidence thereof and shall be admitted in evidence with the same force and effect as the original thereof might be admitted. Service shall only be made upon such attorney, must be made in duplicate upon the Insurance Commissioner, or in his ab-

INSURANCE LAWS.

185

sence upon the person in charge of his office, and shall be deemed sufficient service upon such society; provided, however, that no such service shall be valid or binding against any such society when it is required thereunder to fil e its answer, pleading or defense in less than thirty days from the date of mailing the copy of such service to such society. When legal process against any such society is served upon said Insurance Commissioner he shall forthwith forward by registered mail one of the duplicate copies prepaid and directed to its secretary or corresponding officer. Legal process shall not be served upon any such society except in the manner .provided her ein.
SEc. 18. Place of Meeting- Location of Office. Any domestic society may provide that the meetings of its legislative or governing body may be held in any State, district, province, or territory wherein such society has sub-ordinate branches, and all business transacted at such meetings shall be as valid in all respects as if such meetings were held in this State; but its principal office shall be located in this State.
SEc. 19. No P er sonal Liability. Officer s and members of the supreme, gr and or any subordinate body of any such incorporated society shall n ot be individually liable for the payment of any disability or death benefit provided for in the laws and agreements of such society ; but the same shall be payable only out of the funds of such society and in the manner provided by its la ws.
SEc. 20. Waiver of the Provisions of the Laws. The constitution and laws of the society may provide that no subordinate body, nor any of its subordinate officers or members shall have the power or authority to waive any of the provisions of the laws and constitution of the society, and the same shall be binding on the society and each and every member thereof and on all beneficiaries of members.
SEc . 21. Benefit Non-Attachable. No money or other benefit, charity, or relief or aid to be paid, provided or rendered by any such society shall be liable to attachment,

186

INSURANCE LAWS.

garnishment or other p roce s, or be seized; taken, appropriated or applied by any legal or equitable process or operation of law to pay any debt or liability of a member or beneficiary, or any other person who may have a right there- , under, either before or after payment.
SEc. 22. Constitution and Laws-Amendment. Every society transacting business under this Act shall file with the Insurance Commissioner a duly certified copy of all amendments of or additions to its constitution and laws within ninety days after the enactment of the same. Printed copies of the con stitution and laws as amended, changed or added to, certified by the secretary or corresponding officer of the society, shall be prima facie evidence of the legal adoption thereof.
SEc. 23. Annual Reports . Every society tran acting business in this State shall annual1y, on or before th e first day of March, file with the In urance Commissioner, in such form as he may require, a statement under oath of its president and secretary or corresponding officers, of its condi tion and standing on the thirty-first day of December next preceding, and of its transactions for the year ending on that date, and also shall furnish such other information as the commi sioner may deem necessary to a proper exhibit of its business and plan of working. The commissioner may at other times require any further statement he may deem necessary to be made relating to such societ '
In addition to the annual report herein required, each society shall annually r eport to the commissioner a valuation of its certificates in force on December 31st, last preceding; excluding those issued within the year for which the report is filed, in cases where the contributions for the first year in whole or in part are used for current mortality and expenses; provided, the first report of valuation shall be made as of December 31st, 1912. Such report of valuation shall show, as contingent liabiliti es, the present mid-year value of the promised benefit s, provided in the constitution and laws of such society under certifi cates then subject to valu ation; and, as contin gent assets, the present mid-year

INSURANCE LAws.

187

value of the future net contributions provided in the constitution and laws as the same are in practice actually collected. At the option of any society, in lieu of the above, the valuation may show the net value of the certificates subject to valuation hereinbefore provided, and said net value, when computed in case of monthly contributions, may be the mean of the terminal values for the end of the preceding and of the current insurance years.
Such valuation shall be certified by a competent accountant or actuary, or, at the request and expense of the society, . verified by the actuary of the department of insurance of the home State of the society, and shall be filed with the commissioner within ninety days after the submission of the last preceding annual report. The legal minimum standard of valuation for all certificates, except for disability benefits, shall be the National Fraternal Oc,ngress Table of Mortality as adopted by the N g,ti_oual Fraternal Congress, August 23, 1899, or at the option of the society, any higher table; or, at its option, it may use a table based upon the society's own experience of at least twenty years and covering not less than one hundred thousand Jives with interest assumption not more than four per cent per annum. Each such valuation report sha11 set forth clearly and fully the mortality and interest basis and the method 1 of valuation. Any society providing for disability benefits shall keep the net contributions for such ben efits in a fund separate and apart from all other benefits and expense funds, and the valuation of all other business of the society; proviclecl, that where a combined contribution table is used by a society for both death and permanent total disability benefits, the valuation shall be according to tables of reliable experience and in such case a separation of the fund s shall not be re<7nired .
The valuation herein provided for shall not be considered or regarded as a test for the financial solvency of the society, but each society shall be held to be legally solvent so long as the fund s in its possession are equal to or in excess of its matured liabilities.

188

INSURANCE LAWS.

Beginning with the year 1914 a report of such valuation and an explanation of the facts concerning the condition s of the society thereby disclosed shall be printed and mailed to each beneficiary member of the society not later than June 1st, of each year; or in lieu thereof, such report of valuation and showing of the society 's condition as thereby disclosed may be published in the society's official paper and the issue containing the same mailed to each beneficiary member of the society. The laws of such society shall provide that if the stated periodical contributions of the members are insufficient to pay an matured death and disability . claims in full, and to provide for the cr eation and maintenance of the funds required by its laws, additional, increased or extra rates of contributions shall be collected from the members to meet such deficiency ; and such laws may provide that, upon the written application or consent of the member bis certificate may be charged with its proportion of any deficiency disclosed by valuation, with interest not e:s:ceeding five per cent per annum.
SEc. 23A. Provisions to Insure Future Security. If the valuation of the certificates, as hereinbefore provided, on December 31st, 1917, shall show that the present value of futur e net contributions, together with the admitted assets is less than the present value of the promised benefits, and accrued liabilities, such society shall thereafter maintain said financial condition at each succeeding triennial valuation in respect of the degree of deficiency, as shown in the valuation as of December 31st, 1917. If at any succeeding triennial valuation such society does not show at least the same condition, the commissioner shall direct that it hereafter comply with the r equirements herein specified. If the next succeeding triennial valuation after the receipt of such notice . shall show that the society bas failed to maintain the condition r equired herein, the commissioner may, in the absence of good cause shown for such failure, institute proceedings for the dissolution of such society, in accordance with the provisions of Section 24 of this Act, or in the case of a foreign society, its license may be cancelled in the manner p1:ovided in this Act.

INSURAN CE LAWS.

189

Any such society shown by any triennial valuation subsequent to December 31st, 1917, not to have maintained the condition herein required, shall, within two years thereafter, make such improvement as to show a percentage of deficiency not greater than as of December 31st, 1917, or thereafter as to all new member s admitted, be subj ect, so far as stated rates of contribution are concerned, to the provisions of Section 12 of this Act, applicable in the organization of new societies; provided that the net mortuary or beneficiary contributions and funds of such new members shall be kept separate and apart from the othe:i: fund s of the society.
If such r eq~1ired improvement is not shown by the succeeding triennial valuation, then the said new members may be placed in a separate class and their certificates valued as an independent society in re spect of contributions and funds.
SEc. 23B. In lieu of th e r equirements of Sections 23 and 23A, any society accepting in its laws the provisions of this section may value its certificates on a basi s, herein designated "accumulation ba sis " by crediting each member with the net amount contributed for each year and with interest at approximately the net rate earned, and by charging him with his share of the losses for each year, herein designated '' cost of insurance,'' and carrying the ba~ance, if any, to his credit. The charge for the cost of insurance may be according to the actual experience of the society applied to a table of mortality recognized by the law of this State, and shall take into consideration the amount at risk during each year, which shall be the amount payable at death, less the credit to the member.
Except as specifically provided in its articles or laws or contracts, no charge shall be carried forward from the first valuation hereunder against any member for any past share of losses exceeding the contributions and credit. If, after the first valuation, any member's share of losses for any year exceeds his credit, including the contribution

190

INSURANCE LAws.

for the year, the contribution shall be increased to cover .his share of the losses.
Any such excess share of losses chargeable to any member may be paid out of a fund or contribution especially created or r equired for such purposes.
Any member may transfer to any plan adopted by the society with net rates on which tabular reserves are maintained, and on such transfer shall be entitled to make s-uch application of his credit as provided in the Jaws of the society. Certificates issued, rerated or readjusted on a basis providing for adequate rates with adequate r eserves, to mature such certificates upon assumptions for mortality and interest recognized by the ]aw of this State shall be valued on such basis, herein designated as the "Tabular Basis''; provided, that if on the first valuation under this section a deficiency in reserve shall be shown for any such certificate, the same shall be valued on the accumulation basis.
vVhenever in any society having members upon the tabul ar basis and upon the accumulation .basis, the total of all costs of insurance provided for any year shall be insufficient to meet the actual death and disability losses for th e year, the deficiency sha11 be met for th e year from the available funds after setting aside all credits in the reserve or from increased contributions or by an increase in the number of assessments applied to the .society as a whole or to classes of members as may be specified in its laws. Savings from a lower amount of death lo sses may be returned in like manner as may be specified in its Jaws.
If the laws of the society so provide, the assets representing the reserves of any separate class of members may be carried separately for such class so set apart, as if in an independent society, and the required reserve accumulation of such class so set apart shall not thereafter be mingled with the assets of other clas ses of the society. A table showing the credits to individual members for each age and year of entry and showing opposite each credit the tabular reserve r equired on the whole life or other plan of insurance specified in th e contract, according to as-

I NSURANCE LAWS.

191

sumptions for mortality and interest recogni~ed by the law of this State and adopted by the society, shall be filed by the society with each annual report, and also be furnished to ea~h member before July 1st of each year.
In lieu of the aforesaid . statement there may be furnished to each member within the same time a statement giving the credit for such member, and giving the tabular reserve and level rate r equired for a transfer carrying out the plan of insurance specified in the contract. No table or statement need be made or furnished where the reserves are maintained on the tabular ba sis. For this purpose, individual bookkeeping accounts for each member shall not be r equired, and all calculations may be made by actuarial methods.
Nothing herein contained shall pr event the maintenance of suc.h surplus over and above the credits on the accumulation basis and the r eserves on the tabular basis as the society may provide by or pursuant to its laws, nor be construed as giving to the individual member any right or claim to any such r eserve or credit other th an in manner as expressed in the contract and its laws, nor as making any such reserve or credits a liability in determining the legal solvency of the society.
SEc. 24. Examination of Domestic Societies. Th e In~ surance Commissioner, or any person he may appoint, shall have the power of visitation and examination into the affairs' of any domestic so ciety. H e may employ assistants for the purpose of such examination, and he, or any person he may appoint, shall have fr ee access to all the books, papers, and document that r elate to the busi~ nesS' of the society and may summon and qualify as witness under oath and examine its officers, agents and employees or other persons in r elation to the affairs, transactions and conditions of the society. The expense of such examination shall be paid by the society examin ed, upon statement furnished by the Insurance Commissioner, and the examination shall be made at least once in three years.
whenever, after examination, the Insurance CommiS'sioner is satisfied that any domestic society has failed

192

INSUR.ANCE LAWS.

to comply with any provisions of this Act, or is exceeding its powers, or is not carrying out its contracts in good faith or is transacting business fraudulently; or whenever any domestic society, after the existence of one year or more, shall have a membership of less than four hundred (or shall determine to discontinue business), the Insurance Commissioner may present the facts relating thereto to the attorney-general, who shall, if he deem the circumstances warrant, commence an action in q1.w warranto in a court of competent jurisdiction, and such court shall thereupon notify the officers of such society of a bearing, and if it shall then appear that such society shall be closed, said society shall be enjoined from carrying on any further business, and some person shall be appointed receiver of such society, and shall proceed at once to talrn possession of the books, papers, moneys and other assets of the society and shall forthwith, under the direction of the court, proceed to close the affairs of the society and distribute its funds to those entitled thereto.
No such proceedings shall be commenced by the attorney-general against any such society until after notice has been duly served on the chief executive officers of the society and a reasonable opportunity given to it, on a date to be named in said notice, to show cause why such proceedings should not be commenced.
SEc. 25. ' Application for Receiver, Etc. No application for injunction against or proceedings for the dissolution of or the appointment of a receiver for any such domestic society or branch thereof shall be entertained by any court in this State unless the same is made by the attorney-general.
SEc. 26. Examination of Foreign Societies. The Insurance Commissioner, or any person whom be may appoint, may examine any foreign society transacting or applying for admission to transact business in this State. The said commissioner may employ assistants, and be, or . any person be may appoint, shall have free access to all the books, papers and documents that relate to the business

INSURANCE LAWS.

193

of the society, and may summon and qualify as witness under oath and examine its officers, agents and employees and other personS' in relation to the affairs, transactions, and conditions of the society. He may, in his discretion, accept in lieu of such examination the examination of the Insurance Department of the State, territory, district, province or country where such society is organized. The actual e~penses of examiners making any such examination shall be paid by the society upon the statement furnished by the Insurance Commissioner.
If any such society or its officers refuse to submit to such examination or to comply with the provisions.of the section relative hereto, the authority of such society to write new business in this State shall be suspended or license refused until satisfactory evidence is furnished the commissioner relating to the condition and affairs of the society, and during such suspension th e society shall not write new business in this State.
SEc. 27. No Adverse Publications. Pending, during or after an examination or investigations of any such society, either domestic or foreign, the Insurance Commissioner shall make public no financial statement, report or finding, nor shall he permit to become public any financial staterpent, report or finding affecting the status, standing or rights of any such society, until a copy thereof shall have been served upon such society, at its home office, nor until such society shall have been afforded a reasonable opportunity to answer any such financial statement, report or finding and to make such showing in connection therewith as it may desire.
SEc. 28. Revocation of License. When the Insurance Commissioner, on investigation, is satisfied that any foreign society transacting business under this Act has exceeded its powers, or has failed to comply with any provisions of this Act, or is conducting business fraudulently, or is not carrying out its contracts in good faith, he shall notify the society of his findings, and state in writing the grounds of his dissatisfaction, and after reasonable notice

194

INSUR.ANOE LAWS.

~equ~re said society, on a date named, to show cause why its license should not be revoked. If on the date named in said notice such objections have not been removed to the satisfaction of the said commissioner, or the society does not present good and sufficient reasons why its authority to transact business in this State should not at that time be revoked, he may r evoke the authority of the society to continue business in this State. All decisionS' and findings of the commissioner made under the provisions of this section may be reviewed by proper proceedings in any court of competent jurisdiction, as provided in Section lG of this Act.
SEc. 29. Exemption of Certain Societies. Nothing contained in this Act shall be construed to affect or apply to grand or subordinate lodges of Masons, Odd Fellows, or Knights of Pythias (exclusive of the insurance department of the Supreme Lodge, Knights of Pythias), and the Junior Order . of Unite_d American Mechanics (exclusive of the beneficiary degree or insurance branch of the .r ational Council Junior Order United American Mechanics), or societies which limit their membership to any one hazardous occupation, nor to similar societies which do not is ue insurance certificates, nor to an association of local lodge of a society now doing business in this State which provides death benefits not exceeding five hundred dollars to any one person or disability benefits not exceeding three hundred dollars, in any one year to any one person, or both, nor to any contracts of reinsura,nce business on such plan in this State, nor to domestic societies which limit th eir membership to the employees of a particular city or town, designated firm, business house or corporation, nor to domestic lodges, orders or associations of a purely r eligious, charitable and benevolent description, which do not provide for a death benefit of more than one hundred dollars, or for disability benefits of more than one hundred and fifty dollars to any on e person in any one year. Th e Insurance Corn.missioner may r equire from any society such information as will enable him to determine whether such society is exempt from the provisions of this Act.

INSURANCE LAWS.

195

Any frat ernal benefit society heretofore organized and

incorporated and operating within the definition set fortl1

in Sections 1, 2 and 3 of this Act, providing for benefits in

case of death or disability r esulting solely from accidents,

but which does not obligate itself to pay death or sick

benefits, may be licensed und er the provisions of this Act

and shall have all the privileges and shall be subject to all

the provisions and regulations of this Act, except that the

provisions of this Act requiring medical examinations, val-

uations, of benefit certificates, and that the certificates

shall specify the amount of benefits, shall not apply to

such society.



SEc. 30. Taxation. Every fraternal benefit society organized or licensed under this Act is here'hy declared to be a charitable and benevolent institution, and all of its fund s shall be exempt from all and every State, county, district, municipal and school tax, other than taxes on real estate and office equipm ent.

SEc. 31. Penalties. Any person, officer, member or examining physician of any society authorized to do business under this Act who shall knowingly or wilfully make any false or fraudulent statement or representation in or with reference to any application for membership, or for
the purpose of obtaining money from or benefit in any
society transacting business under this Act, shall be guilty of a misdemeanor, and upon conviction thereof sl1al1 be punis'lrnd by a fine of not Jess than one hundred dollars nor more than five hundred dollars, or imprisonment in the county jail for not less than thirty days, nor more than one year, or both, in the discretion of the court, and any person who shall wilfully make a false statement of ,rny material fact or thing in a sworn statement as to the death or disability of a certificate holder in any such society for the purpose of procuring payment of a benefit named in the certificate of such holder, and any person who shall wilfully make any false statement in any verified report or declaration under oath required or authorized by tliis Act, shall be guilty of perjury, and shail be pro ceeclecl

19'6

INSURANCE LAWS.

against and punished as provided by th~ statutes of this State in relation to the crime of perjury.
Any person who shall solicit membership for, or in any manner assist in procuring membership in any fraternal benefit society not licensed to do business in this State, or who shall solicit membership for, or in any manner assist in procuring membership in any such society not authorized as herein provided to do business as herein defined in this State, shall be guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of not less than fifty nor more than two hundred dollars.
Any society, or any officer, agent or employee thereof neglecting or refusing to comply with, or violating any of the provisions of this Act, the penalty for which neglect, refusal or violation is not specified in this section, shall be fined not exceeding two hundred dollars upon conviction thereof.
SEc. 32. r:I."he provisions of this bill shall not apply to fraternal benefit societies whose membership does not exceed five thousand members, and that all societies writing insurance for employees of the Federal government and public utilities companies shall come within the provisions of this Act.
SEc. 33. All such societies and organizations as are mentioned in this Act shall be subject to such rules and regulations as may be prescribed by the Insurance Commissioner of the State.
SEc. 34. Be it further enacted, That all Acts and parts of Acts inconsistent with thiS' Act are hereby repealed.
Approved August 17, 1914.

197

INSURANCE; UMPIRE ON FIRE LOSS.

No. 392.

An Act to provide for the appointment of an umpire by any court of record, in fire insurance appraisals, in the county where the lo ss occurs, provided the appraisers chosen fail to select such umpire within ten days; to provide the method of such appointment; for other purposes ; and to repeal conflicting laws.

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,

when in the event of loss or damage to property in this

State, described in any policy of fire insurance and covered

thereby, the ascertainment of any such los s or damage is,

as provided in the policy, to be determined by appraisers,

one selected by the company, the other by the in sured, and

the two so chosen shall have failed or neglected, for a space

of ten days after both have been chosen, to agree upon and Application

select an umpire,

it

shall be

lawful for

either

the

assured

to court for umpire on

or the company to apply to anY, court of record in the coun-

ap praisal of loss.

ty in which the property is or was located, on five days'

notice in writing to the other party of bis or its determina-

tion so to do, to appoint a competent and disinterested um-

Notice and service.

pire. Any such notice in writing, when served by the in-

sured, may be served upon any local agent of the company;

Court to appoint.

and the sa id court shall, on proof by affidavit of the failure

or neglect of the said appraisers to agree upon and select

an umpire within the time aforesaid, and of the service of

notice aforesaid, forthwith appoint a competent and disin-

terested person to act as umpire in the ascertainment of Umpire's the amount of said loss or damage; and the acts of the um- acts bind.

pire so appointed shall be binding upon the insured and the

company to the same extent as if such umpire bad been

selected in the ma nner provided for in said policy of in-

s u r a n ce.

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INSURANCE LAW

ontrary .ipu l ation Jid .

Sec. 2. B e it further enacted, That from and after the passage of this Act, any stipulation in any policy of .fire insurance contrary to the terms of this Act shall be void.
Sec. 3. Be it furth er enacted, That all laws and parts of laws in conflict herewith be and the same are hereby repealed.
Approved August 14, 1916.

INSURANCE LAws.

199

INSURANCE; WIT1:IDRAWAL FROM BUSINESS BY FIDELITY AND SURETY COMPANIES.

No. 451.

An Act to provide the manner in which :fidelity insurance companies and surety companies and bonding companies may retire from doing business in this State and withdraw the _deposits required by law of such companies; to make provisions to protect the public and the parties at interest in connection therewith, and for other purposes.
Be it enac.ted by the General Assembly of Georgia, and it is enacted by authority of the same:

Section 1. That in case any :fidelity insurance company,

or any surety or bonding c()mpany authorized to do the bus-

iness of :fidelity insurance or acting as surety on bonds un-

W ithdrawal of deposit

b y retiring

der the provisions of the statutes of this State touching that

con1pany 1

how ac-

subject has retired from doing that business in this State, complished.

or wishes so t() retire, and wishes to withdrruw the deposit

required to be made with the State Treasurer of this State,

as required of such companies, the same may be accom-

plished in the following manner: The company so desiring

to retire from business and to withdraw the deposit shall

file with the Insurance Commissioner a writing, verified by

the oath of one of its executive officers, stating that it has

retired, or on or after the date of the :filing of such writing

will retire from doing the business of fidelity insurance or

becoming surety upon bonds in this State, and stating its

desire to withdraw the deposit with the State Treasurer of

this State made in pursuance of the statutes of this State

r egulating the business of such companies. Additionally

thereto the company shall do one of the following three

things:

First. Submit a statement under oath verified by one

of its executive officers that such company has settled all

Conditions specified.

losses which have accrued against it on account of bonds

written or suretyships assumed in this State, and that its

200

INSURANCE LAws.

Statement liability has terminated as to all obligations incurred on

of settlement of lia-

account of bonds written or suretyships

assumed in

this

bilities.

State, and shall, if required by the Insurance Commissioner

of this State, make such further proof of these facts as will

Proof.

satisfy the C9mmissioner of the truth thereof, and shall

further show that there has been published in some daily

Advertisement of notice.

newspaper of general cir culation in this State an advertisement for four insertions in separate weeks preceding the date of the application to withdraw the deposit, a notice

stating the intention 9f such company to retire from busi-

ness in the State and withdraw its deposit with the State

Treasurer, and that it claims to have settled all losses and

to have procured its release from all obligations incurred

on any and all bonds and any and all assumptions of sure-

tyship in this State; and also giving notice of the date on

which application will be made to the Insurance Commis-

sioner for authority to withdraw the depo sit, and warning

all persons that if they have any cause to show why said

company should not be allowed to withdraw its deposit

that they should make the same known in writing to the In-

Obje ctio n s a nd

surance Commis sioner on or before the date named. The

evidence. Insurance Commissioner shall have jurisdiction to hear

evidence and determine the validity of any such objection,

if filed.

Bond to be a pproved and filed.

Second. File with the Insurance Commissioner a bond in a sum to be fixed by the Insurance Commissioner, and to be approved by him, in an amount not exceeding the amount of such deposit, payable to the State of Georgia, for the use and benefit of whom it may concern, conditioned that said company sha ll pay all lo sses which it may have sustained upon any bond or contract of suretyship written or assumed in this State and that it will faithfully perform and fulfill all of its outstanding obligations so written or assumed a0cording to the legal tenor and effect thereof. Such bond so to be given shall have as surety thereon some fidelity insurance company or surety or bonding company, which shall have been authorized to do business in this State, and which slJ all have made the deposit provided b~ the statutes of this State governing the business of such

INSURANCE LAWS.

201

companies. It shall be stated in said bond that it is made

in pursuance of this Act; and any person, having a right of

Action on bond ; joln-

action

against

the

fidelity

insurance

company,

surety

or

der of oarties de-

bonding company on account of any bond written or act of fendant.

suretyship assumed in this State by the retiring company

may join the surety on the bo1id in this subsection of this

Act provided for, as defendant upon the obligation of sure-

tyship or indemnity of the r etiring company in like manner

as if it were a joint obligor or joint surety upon each and

every bond or assumption of suretyship made or executed

in this State by said retiring company. The surety upon Liability. the bond so given by such retiring company shall be liable

to the same extent and in the same manner as if it were a

cosuret'y with the r etirin g company upon each and all of the

obligations assum ed upon risks and bonds written in this

State.



Third. Or make proof to the Insuranne Commissioner Proof of of this State that it has r einsured an of its risks and obli- reinsurance. gations, so far as they exist in this Stafo, in some other solvent :fidelity insurance company or companies which have complied with the Jaws of this State and been authorized to do business in this State and made the deposit required of such companies in this State, and shall produce and file Contract of with the Commission er a written contract signed by the reinsurer. proper executive officers of such reinsuring company or companies, that it or they have reinsured such risks, and that it or they consent to be boundthereon in the manner provided in this Act. The reinsuring company may be Joinder
a s party
joined as defendant in any action on any obligation of sure- defendant. tyship or indemnity of the company whose risks have thus Liability of been reinsured, and it shall be liable in like manner as if it reinsurer. were a joint promissor or a cosurety with the retiring company upon each and every risk upon which such retiring company may be liable as to business done in this State, and shaH be subject to suit therefor in like manner as if it were the surety solely or in connection with such retiring company upon each and all of its obligati<;ms of suretyship or indemnity.

202

INSURANCE LAWS.

Order to Treasurer to surrender bonds.
Liability.
Notice of suit_ Judgment conclusive. Defense of suit. Subrogation. Action for reimbursement.

Sec. 2. Upqn the Insurance Commissioner being satis. fled that the provisions of either of the three subsections of the foregoing section of this Act have been complied with, he shall thereupon pass an order reciting compliance and di. recting the State Treasurer to return to such retiring company the bonds which have been deposited with the .State Treasurer by such company under the statutes regulating the business of such companies in this State, and a certified copy of such orders of the Insurance Commissioner shall be authority to the State Treasurer thereupon to deliver such bonds to said company or to such person, firm, or corporation as it may in writing direct the .State Treasurer to deliver them to; and upon such company or person duly authorized in writing by such company to receive such bonds for it, receipting the Treasurer therefor, the Treasurer shall deliver such bonds to said company .or the person to whom said company shall direct that they be delivered.
Sec. 3. Nothing herein shall be construed to relieve any such company so retiring from business in this State from liability upon any of its obligations, but it shall still remain bound thereon until the same shall have been fully dis~harged and satisfied. If the company which shall have guaranteed or assumed the liability of such retiring company is sued upon a bond executed or a risk originally assumed by such retiring company without such retiring company also being joined therein, it may give to the company whose risk it has guaranteed or assumed, notice of the pendency of the suit, and as between the two companies and their privies the judgment rendered in such action shall be conclusive as to the validity and extent of the liability claimed in the suit; and the company originally liable may cause itself to be made party defendant and may defend the action with like effect as if it were sued in the first instance. Upon-judgment being rendered against the company assuming or guaranteeing the liability of the retiring company it shall be subrogated to all the rights of the company for whose undertaking it shall so have been held liabl e. Any right of action for reimbursement which the retiring company would have had if it had been directly sued and

I N SURANCE L Aw s.

203

held liable, against the principal on the bond, against indemnitors or other third persons or corporations, or collateral deposited, or upon funds or against persons to which or to whom it might otherwise, either in law or equity, have the right to look for reimbursement, shall survive andmay be enforced by a suit brought in the name of such retiring company for the use of the company so held liable.
Sec. 4. All laws and parts of laws in conflict herewith are hereby repealed.
Approved August 18, 1916.

I

INDEX
TO
INSURANCE LAWS
OF THE
STATE OF GEORGIA

I N D EX
A
ACCIDEN'r COMPANIESForeign to deposit $100,000.00 in home State; Act Oct. 24, 1887 ; Sec. 5 . . . . . . . . . . . . . . . . . . . . . . . 11 Powers of; Act Dec. 18, 1893 ; Sec. 11. . . . . . . . . . . 52 Reinsurance; Act Dec. 18, 1893'; Sec. 19 . . . . . . . . . 55 F ees for license; Act Oct. 24, 1887 ; Sec. 11. . . . . . . 22
AGENTSWho ar e; Act Oct. 24, 1887 ; Sec. 9 . . . . . . . . . . . . . . 18 Personal liability ; Act Dec. 23, 1890; Sec. l. . . . . . 40 To make application for license; Act Aug. 19, 1912; Sec. 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 Penalty for acting without authority; Act Oct. 24, 1887; Sec. 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Ibid, frat ernal soc. ; Act Dec. 17, 1900 ; Sec. 8 . . . . 85 Unlawful to act before company and agents are licensed; Act Oct. 24, 1887 ; Sec. 11. . . . . . . . . . . . 21 License fee $3.00; Act Oct. 24, 1887; Sec. 11. . . . 22 '' Occupation tax;'' Act Oct. 24, 1887 ; Sec. 12. . . . 22 Traveling special or general agents; Act Oct. 24, 1887 ;- Sec. 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 License must be renewed annually; Act Oct. 24, 1887 ; Sec. 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Non-resident; Act Dec. 24, 1896; Sec. 1. . . . . . . . . . 65
ADJUSTERSOf unauthorized companies; Act Oct. 24, 1887; Sec. 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
APPLICATIONIf referred to in policy, copy must be attached; Act Aug. 17, 1906; Sec. 1. . . . . . . . . . . . . . . . . . . . 117

INSURANCE LAws.

207 .

AMERICAN EXPERIENCE TABLE OF MORTALITY (4%) -
Frat. ben. societies may allow surrender vals. when maintaining this standard ; Act Aug. 17, 1914; Sec. 5 . ....... . . . . . ... . . : . . . . . . . . . . . . . . . . . 175
.AMENDMENTS OR ADDITIONSBinding on all members; retroactive ; Act Aug. 17, 1914 ; Sec. 8 . ... : .. . . ....... .... . .... . . .. 176
ANNUAL STA'l' EMENTSPre-r equisite to license; Act Oct. 24, 1887; Sec. 2. . 3 Details to be r eported; Act Oct. 24, 1887; Sec. 2. . 3
A P P L I C A T IO NCopy atta ched to policy; Act Aug. 17, 1906 ; Sec. 1 119
ASSESSMENT OF TAXESBy Insurance Commissioner; Code 1910; Sec. 1136 35
ASSESSMENT FIRE COMPANIES (see " Four County " fire companies) .
. .ASSESSMENT LIFE COMPANIES_L imitation of laws applyin g to ; Act Dec. 21, 1900 ; Sec. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 To make semi-annual r eports to Governor; Act Oct. 24, 1887 ; Sec. 3 . . . . . . . . . . . . . . . . . . . . . . . 7 Amount of deposit; Act Dec. 18, 1901; Sec. 1 . . . . 92 Conditions precedent to license; Act Oct. 24, 1887 ; Sec. 14 . . .. . .. .. . ... . ... . .. . ... ... . .. .. . ... 24 Ibid ; Act Aug. 23, 1905 ; Sec. 1. . . . . . . . . . . . . . . . . 110 Policies to be specially marked in red ink; - - - ; Sec. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 How authorized to transact a gener al business; Act Dec. 21, 1900 ; Sec. 1. . . . . . . . . . . . . . . . . . . 89 Valuation of policies; Act Dec. 21, 1900 ; Secs. 2-3 89-90 Deposit of industrial companies; Act Aug. 22, 1905 ; Sec. 3 .. . . .. . . . .. .. ... .. ... .. . . . ... . . 116

208

INSURANCE LAWS.

Payment of face of policy; Act Aug. 19, 1912 ; Sec. 37 ......... . .... .. .... . ........... . ....... 161
Rates of premiums ; Act Aug. 19, 1912; Sec. 37. . . 162
AT'l'ACHME T BONDS; Act Dec. 24, 1896; Sec. 2. . 60
ATTORNEY-GENERALInsurance Commissioner to report insolvent orfraudulent companies to; Act Oct. 24, 1887; Sec. 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
A'l'TORNEY FOR SERVICE; Act Oct.. 24, 1887 ; Sec. 10 . ... .. .. . . . .... ........ ...... .... .. 20

B BENEFICIARIES-
Who may be made (frat. ben. societies); Act Aug. 17, 1914 ; Sec. 6 . .. ... . ....... .. ... . ........ 175
Ibid; Act Dec. 17, 1900 ; Sec. 1. . . . . . . . . . . . . . . . . 81 Societies may limit within prescribed classes; Act
Aug. 17, 1914; Sec. 6 ....... .. ... . .......... 175
BENEFITSOf fraternal benefit societies; Act Aug. 17, 1914; Sec. 5 .. .. .. ........ . ..................... 174
BOARD CONTRACTS PROHIBI'l'ED ; Act Aug. 19, 1912; Sec. 20 ... . ................. . ....... . 147
BONDSFor deposit must be registered; Act Dec. 17, 1900 ; Sec. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
BUILDINGFor home office purposes; Act Dec. 18, 1893; Sec. 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . 54
BURGLARYMutual companies ; Act Dec. 21, 1897; Sec. 1. . . . 68 Pre-requisite to license; Act Dec. 21, 1897; Secs. 2-3 69 Business confined to certain lines and persons; Act Dec. 21, 1897 ; Sec. 4. . . . . . . . . . . . . . . . . . . . 70

INSURANCE LAws.

209

Liability of policyholders; Act Dec. 21, 1897; Sec. 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Attorney for service; Act Dec. 21, 1897; Sec. 6. . . 71
BUSINESSUnlawful to transact without license; Act Oct. 24, 1887; Sec. 2. . .. ... . . . . .. . ... ... .... . ...... . 3

0
CA JCELLATION OF LICENSENon-resident company; Act Aug. 16, 1909; Sec. 1. 125 On failme to publish r eports ; Act Oct. 24, 1887 ; Sec. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
CAPITAL STOCKPar value $100.00 ; Act Dec. 18, 1893; Sec. 4. . . . . . 48 At least $100,000.00 r equired; Act Oct. 24, 1887; Sec. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 $100,000.00 required for each class of business; Act Dec. 18, 1893 ; Sec. 4. . . . . . . . . . . . . . . . . . . . . . . 48 Of fire, marine and inland companies, if impaired ; Act Oct. 24, 1887; Sec. 7. . . . . . . . . . . . . . . . . . . . . 13 Not accounted in determining safety of life companies; Act Oct. 24, 1887; Sec. 8 . . . . . . . . . . . . . . 16 Increase or decrease ; Act Dec. 18, 1900; Sec. 1. . . . 87
CASUALTYINSURANCELiability loss reserve ; Act Aug. 22, 1911 ; Sec. 1 .. 130
CER'rIFICATE OF INCORPORATIONTo be issued by Secretary of State ; Act Dec. 14, 1895; Sec. 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Or duplicate th er eof prima facie evidence of existence of corporation; Act Dec. 18, 1893 ; Sec. 4 48 Shall cease and determine; Act Dec. 18, 1893 ; Sec. 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Ibid; Act :pee. 16, 1902; Sec. 1. . . . . . . . . . . . . . . . . 103

210

I NSURANCE LA\V S .

CERTIFICATE OF MEMBERSHIP(Frat. ben. soc.) required provisions ; Act Aug. 17, 1914; Sec. 8 . . .. . ..... . ...... .. ... .. . . . ... .. 176 Valuation of ; Act Aug. 17, 1914; Sec. 9. . . . . . . . . 176
CERTIFICATE OF NO OVER-HEAD WRITING ; Act Dec. 24, 1896 ; Sec. 2. . . . . . . . . . . . . . . . . . . . 65
Ibid ; .Act Dec., 1901 ; Sec. 3 .... . .. .. . .. : . . . . . . 100
CERTIFICATE.R eserve deposit law; Act Aug. 20, 1906; Sec. 2 . . .. 122
COMPETITIONUnlawful to make contracts affecting; Act Oct. 21, 1891 ; Sec. 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
COMPTROLLER-GENERALT"o approve investments ; Act Dec. 18, 1893 ; Sec. 4. 48 Insurance Commissioner; Act Oct. 24, 1887; Sec. 1 3 To issue corporate powers if Secr etar y of State is disqualified; Act Dec. 18, 1893 ; Sec. 1. . . . . . . . 45 Chief office of insurance departments; Act Aug. 17, 1912 ; Sec. 1 .......... ........ . .. ... .... 136 To issue fl. fa. against company ; Act Dec. 24, 1896 ; Sec. 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
CONTRACT RESERVE ; Act Dec. 21, 1900 ; Sec. 2. . 90
CO-OPERATIVELife insurance companies to make semi-annual reports; Act Oct. 24, 1887 ; Sec. 3. . . . . . . . . . . . . . 7 Principles apply to formation ; Act Dec. 18, 1893 ; Sec. 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Fire companies exempted from examination ; Act Aug. 19, 1912 ; Sec. 3. . . . . . . . . . . . . . . . . . . . . . . 140
CORPORATE NAMEResemblance to others (frat. ben. soc.) ; Act Aug. 17, 1914 ; Sec. 12 ......... .............. .... 178

INSURANCE LAws.

211

D
DAMAGES Code 1910; Sec. 2549. . . . . . . . . . . . . . . . . . 35
DEPOSITNon-resident fir e, marine and inland companies $10,000.00; Act Oct. 24, 1887; Sec. 4 ... .. . .. . . 7 Ibid; Act Dec. 20, 1899; Sec. 1 ... .. ... .... .. .. . 76 Ibid; Act Aug. 22, 1905 ; Sec. 1 . . ... . .... . .... . 104 Receipted for by State Treasurer; Act' Oct. 24, 1887; Sec. 4 .. . ... . ................ .. ..... . 7 Ibid; Act Dec. 24, 1896; Sec. 3 .. ... . ... ..... .. . 60 By life and accident companies of this State $100,000.00; Act Oct. 24, 1887; Sec. 5 ............. . 11 Fi<;lelity and surety companies $25,000.00; Act Dec. 24, 1896 ; Sec. 3 . ...................... . 60 Notice of claim against; Act Dec. 24, 1896 ; Sec. 3 61 Reduction below amount r equired; Act Dec. 24, 1896 ; Sec. 3 . ............................ . . . 63 To be in registered bonds; Act Dec. 17, 1900 ; Sec. 1 86 To cover reserves to be approved by Insurance Commissioner; Act Aug. 20, 1906; Sec. 5 . . .... 124
DIRECTORSMust be stockholders; Act Dec. 18, 1893; Sec. 5. . 49 To hold office until successors are elected; Act Dec. 18, 1893 ; Sec. 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 'l'o be elected annually; Act Dec. 18, 1893; Sec. 5 49 Meetings must be held in this State; Act Dec. 18, 1893 ; Sec. 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 May declare dividends; Act Dec. 18, 1893; Sec. 14 53 Number and members; Act Aug. 19, 1912; Sec. 33. 157
DEPUTY INSURANCE COMMISSIONER; Act Aug., 19, 1912 ; Sec. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
DISABILITY-TEMPORARY OR PERMANENTOld age dis. not to commence before age 70; Act Aug. 17, 1914; Sec. 5 . . ... ... . . ....... . ...... 174

212

INSURAN CE LAws.

DISTRIBUTION OF FUNDS (Frat. Ben. Soc.)- . Mortuary or disability funds not to be used for expenses; Act Aug. 17, 1914; Sec. 11 .. ........ 178
DIVIDENDSDeclared by board of directors; Act Dec. 18, 1893; Sec. 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Stock in lieu of money; Act Dec. 18, 1893 ; See. 15 53 To policyholders ; Act Dec. 18, 1893 ; Sec. 16 . . . . . 54 Unlawful to misrepresent; Act Aug. 19, 1913; Sec. 1 . . . . .. ... . .. . ...... .. ..... . .......... .... 167

E
EXECUTION OF INSURANCE LAWSDuty of Comptroller-General; Act Oct. 24, 1887; Sec. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
EXECUTIONTo be issued by Insurance Commissioner; Code 1910; Sec. 1132 . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Foreign corporations; ngainst their principal agent; ibid; Sec. 1138. . . . . . . . . . . . . . . . . . . . . . 35 How directed; ibid ; Sec. 1137 . . . . . . . . . . . . . . . . . . 35
EXElVIPTIONSNo law subsequent to this Act to apply to fraternal benefit societies unless designated ; Act Aug. 17, 1914; Sec. 4 .. ... . . . . . ....... . . . . ...... . ... 174 Fraternal societies, etc. ; Act Oct. 24, 1887 ; Sec. 20 27 Fraternal societies ; Act Dec. 17, 1900 ; Sec. 1 . . . . 81 Certain fraternal societies; Act Dec. 17, 1900 ; Sec. 9.. .. ... . .......... . . ...... .. .......... .. . 85 Fraternal societies; Act Dec. 21, 1900 ; Sec. 4. . . . . 91 Ibid ; Act Aug. 17, 1914; Sec. 29 . . . . ... .. ... . . . . 194
EXAlVIINATIONSRegarding over-head writing ; Act Dec. 24, 1896 ; Sec. 3 ........... .... . .... ... . . . . . . . . . . . . . 66 Of insurance companies generally; Act Aug. 19, 1912 ; Sec. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138

INSURANCE LAWS.

213

Reports of; Act Aug. 19, 1912; Sec. 3. . . . . . . . . . . 139 Fraternal societies; Act Aug. 17, 1914; Sec. 24 .... 191 Ibid; Act Aug. 17, 1914; Sec. 26. . . . . . . . . . . . . . . 192
ESTIMATESIllustration, etc. ; Act Aug. 13, 1913 ; Sec. 1. . . . . . 167

F
FAILURE OR REFUSAL TO MAKE TAX RETURNS; Act Oct. 24, 1887; Sec. 19 . . . . . . . . . . . 27
Insurance Commissioner to issue execution; Code 1910; Sec. 879 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Insurance Commissioner to assess; Code 1910; Sec. 884 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
FALSE REPRESENTATIONS; Act Aug. 19, 1912 ; Sec. 8 .. ... . . . .... ............ .... ........ 142
FEDERAL COUR"rRemoval of suits to; Act Aug. 16, 1909; Sec: 1. . . 125
FEESOn incorporation $100.00; Act Dec. 14, 1895; Sec. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . 47 Of commissioner; Act Oct. 24, 1887 ; Sec. 11 . . . . . . 22
FIDELITY COMPANIESDeposit of $25,000.00; Act Dec. 24, 1896; Sec. 3 . . 60 Fees for license ; Act Oct. 24, 1887 ; Sec. 11. . . . . . 22 Requirements precedent to license; Act Oct. 24, 1887 ; Sec. 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Contract defined; Act Oct. 21, 1887 ; Sec. 1 ... ; . . 30 May be accepted.as surety; Act Oct. 21, 1887; Sec. 2 ... ... ...... ..... ........ ... ..... .... .... 31 Ibid ; Act Dec. 24, 1896; Sec. 1. . . . . . . . . . . . . . . . 59 Estopped from denying corporate power to execute bonds ; Act Oct. 21, 1887 ; Sec. 3 . . . . . . . . . . . . . 31 May be sued in county of principal; Act Oct. 21, 188'? ; Sec. 4 ........... . .... '. . . . . . . . . . . . . . . . 32

214

INSURAN CE LAWS.

FIRE INSURAr CE COMPANIESMust make deposit ; Act Oct. 24, 1887; Sec. 4. . . . . 7 Tax r eturns; Act Aug. 16, 1909; Sec. 6. . . . . . . . . . 33 Powers of; Act Dec. 18, 1893; Sec. 10. . . . . . . . . . 51 Reinsurance ; Act Dec. 18, 1893 ; Sec. 19. . . . . . . . 55 Deposit required; Act Aug. 19, 1912 ; Sec. 39 . .. . . 162
FORFEIT OF PAYMENT S ON STOCK; ActDec. 18, 1893 ; Sec. 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
FOUR COUNTY FIRE AND STORM COMPANIESF ee for license; Act July 28, 1910 ; Sec. 1. . . . . . . . 129 Form of policy to be prescribed by commissioner; Act Aug. 19, 1912; Sec. 23 . . .. . .. . . ... . ..... . 149 Not to make deposit; Act Aug. 19, 1912 ; Sec. 39 .. 162
FRATERNAL SOCIE'L'IESWaiver of provisions of laws; Act Aug. 17, 1914 ; Sec. 20 . . ... . ...... . . .... .. ... ............ 185 Benefit non-attachable; Act Aug. 17, 1914 ; Sec. 21 185 Adverse publications; Act Aug. 17, 1914; Sec. 27 . 193 Limitation of membership; Act Aug. 17, 1914; Sec. 32 .. . . . . ... . . . .. .. . . . . . . . . . . . . . . . . . . . 196 P er sonal ~iability; Act Aug. 17, 1914 ; Sec. 19 ..... 185 , Benefits; Act Aug. 17, 1914 ; Sec. 5 . . ..... .... . . 174 Beneficiaries; Act Aug. 17, 1914 ; Sec. 6 .. .. .... . . 175 Membership qualifications; Act Aug. 17, 1914 ; Sec. 7 . . .. . . .. ... ......... . ...... . ........ 175 Certificates; Act Aug. 17, 1914 ; Sec. 8 . ... .. .. .. 176 Funds; Act Aug. 17, 1914; Sec. 9 .... . ......... 176 Investments; Act Aug. 17, 1914; Sec. 10 ......... 177 Organization ; Act Aug. 17, 1914 ; Sec. 12 . . ...... 178 Defined; Act Aug. 17, 1914; Sec. l. . ... . ..... ... 173 Ibid ; Act Dec. 17, 1900 ; Sec. 1 . . . . . . . . . . . . . . . . . 80 Domestic, chartered by Secretary of State; Act Aug. 19, 1912; Sec. 35 .. . . . .. . .. .... . .. . .... 158 Ibid ; license; Aqt Aug. 19, 1912 ; Sec. 35 ....... . 159 Conditions pre-requisite to li cense of foreign; Act Aug.17, 1914; Sec. 16 .. . .. . . . ....... : ...... 183

INSURANCE LAWS.

215

Ibid ; Act Dec. 17, 1900 ; Sec. 3 . . . . . . . . . . . . . . . . 82 Ibid; Act Aug. 19, 1912.; Sec. 34. . . . . . . . . . . . . . . . 157 Annual statements; Act Dec. 17, 1900 ; Sec. 4. . . . $2 Ibid; Act Aug. 17, 1914; Sec. 23 . ..... . ... . . ... . 186 Appointment of attorney for service; Act Aug.
17, 1914; Sec. 17 ... . .. . ... .... ............ 184 Excluded from doing business; Act Dec. 17, 1900;
Sec. 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 License fee; Act Aug. 19, 1912 ; Sec. 34 . . . . . . . . . 158 Form of government; Act Aug. 19, 1912 ; Sec. 35. 159
FRAUDULEN'l' STATEMENTS; Act Aug. 19, 1912; Sec. 10 .... . .... . .. . ...... . ..... . .... : ... . 143
Ibid ; Act Aug. 17, 1914 ; Sec. 31. . . . . . ......... 195 Ibid ; Act Aug. 19, 1913; Sec. 2. . . . . . . . . . . . . . . . 168
FRAUDULEN'l' PROCUREMENT OF POLICY CLAIMS; Act Aug. 19, 1913; Sec. 3. . . . . . . . . . 168
FULL .AJMOUN'l' OF LOSS ; Act Dec. 18, 1893 ; Sec. 1 56
FUNDSFrat. ben. societies; Act Aug. 17, 1914; Sec. 9 . . . . 176 Distribution of; Act Aug. 17, 1914 ; Sec. 11 . . . . .. 178
FIRE INSPE C'l'ORAppointed by Insurance Commissioner; Act Aug. 19, 1912; Sec. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 Duties and powers ; Act Aug. 19, 1912; Sec. 24 . . . 150 Authority to go upon premises; Act Aug. 19, 1912; Sec. 25 ... . .. . ..... . ..... . .... .. . . . . . . . . . . 151 Compensation, how prescribed and paid ; Act Aug. 19, 1912; Sec. 26 .. ........ . .... .. . . . ... .... 151
FEDERAL GOVERNMENT-EMPLOYEESFraternal societies ; Act Aug. 17, 1914; Sec. 32 .. . 196
G GOVERNMENT-
Representative form defined (fraternal ben. societies); Act Aug. 17, 1914; Sec. 3 . ... . ....... 173

216

INSURANCE LAws.

GOVERNORSemi-annual statements of insurance companies to be made to; Act Oct. 24, 1887 ; Sec. 3. . . . . . . . . . 6
GUARANTEE FUND CERTI1;7JCA'rES; Act Aug. 19, 1912; Sec. 38. . . . . . . . . . . . . . . . . . . . . . . . . . . 162

I
INCOME CERTIFICA'rES; Act Aug. 19, 1912 ; Sec. 38 .... . ... . ...... . ...... ... .. . . .. ........ 162
INDUSTRIAL LIFE INSURANCED~fined; Act 4-ug. 22, 1905; Secs. 1-2 . . . . . . . . . . 115 Scope of Act; Act Aug. 22, 1905 ; Sec. 5 . .. , . . . . . 117 Laws not to apply unless sp ecifically mentioned; Act Aug. 22, 1905; Sec. 6 ... . ....... ...... ... 117
INDUSTRIAL COMPANIESIncorporation of; Act Aug. 19, 1912; Sec. 14 ..... 144 Mutual ; Act Aug. 19, 1912; Sec. 36 .. . ......... 160 Deposit required of; Act Aug. 19, 1912; Sec. 14 .. 144 How authorized to do life business; Act Aug. 19, 1912; Sec. 15 .... . ... .. . .. ....... ... ...... . 145 Mutual- charge to capital stock; Act Aug.- 19, 1912; Sec. 16 : ....... . ..... . .. .. . . ..... . .. 145
INCORPORATIONPre-requisites to; Act Dec. 18, 1893. . . . . . . . . . . . 45 Five persons to file written petition setting forth; Act Dec. 18, 1893; Sec. 2. . . . . . . . . . . . . . . . . . . . 46 Name and address of incorporators; Act Dec. 18, 1893; Sec. 2 ....... . .. .. ........ :.......... 46 Name of company; Act Dec. 18, 1893; Sec. 2...... 46 Kinds of i~u.rance proposed; Act D ec. 18, 1893; Sec. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 ,Amount of proposed capital ; Act Dec. 18, 1893; Sec. 2 . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 .'~Number of shares of capital each is to take; Act Dec. 18, 1893; Sec. 2 . . . . . . . . . . . . . . . . . . . . . . . . 46

INSURANCE LAWS.

217

Purpose to ra.ise capital and organize; Act Dec. 18, 1893 ; Sec. 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Request to be incorporated under laws of State; Act Dec. 18, 189.3 ;. Sec. 2. . . . . . . . . . . . . . . . . . . . 46
Thirty days' publication of intention to apply for charter; Act Dec. 18, 1893 ; Sec. 2. . . . . . . . . . . . 46
Affidavit of at least two p ersons that signatures are genuine, and that facts stated in petition are true ; Act Dec.. 18, 1893 ; Sec. 2 . . . . . . . . . . . . . 46
P etition to be filed and recorded by Secretary of State; Act Dec. 18, 1893 ; Sec. 2 . . . . . . . . . . . . . 46
.:,Excepted in case .of live stock companies; Act Dec. 14, 1895 ; Sec.. 1.. .. .. .. .. .. .. .. .. .. .. . 57
INSURAN CE BOARD' ; Act Aug. 19, 1912 ; Sec. 5 . . . . 141'
INVES'fMENTSPrior to beginning business; Act Dec. 18, 1893 ; Sec. 4 ... . . .. ............. . .............. . 48 To be approved by Secretary of State or Comptroller-General; Act Dec. 18, 1893 ; Sec. 4. . . . . . 48 Of fraternal benefit societies same as life companies; Act Aug. 17, 1914; Sec. 10 ......... ...... 177 Same. Any foreign society which invests in accordance with laws of home State held to comply with t~is section; Act Aug. 17, 1914 ; Sec. 10 .. 177 Authorized; Act D ec. 18, 1893; Sec. 17 . . . . . . . . . . 54 Ibid ; Act Aug. 19, 1912; Sec. 31'... . .... .. ...... 156
INSURANCE COMMISSIONER-Comptroller-General is ex-officio ; Act Oct. 24, 1887; Sec. 1.... ........................... 3 Annual reports of; Act Aug. 19, 1912; Sec. 1 .... 138 Ibid; Act Aug. 19, 1912; Sec. 29 .. .. .... .. . ..... 155 Authorized to administer oaths; Act Oct. 24, l 887 ; Sec. 23.. . ..... . ....... .. .. . .......... . .... 29 Collection. of fees and taxes; Act Aug. 19, 1912 ; Sec. 2 . . . ........................... ..... . .. 138 Duty to investigate companies doing business in

218

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Georgia ; Act Oct. 24, 1887 ; Sec. 6 . . . . . . . . . . . . 12 Office public; Act Aug. 19, 1912; Sec. 1 . . . . . . . . . . 138 To appoint attorney for service; Act Oct. 24, 1887;
Sec. 10 ....... _. . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Orders, how enforced; Act Aug. 19, 1912; Sec. 12 144 Issue subprenas for witnesses; Act Oct. 21, 1891 ;
Sec. 3 ........... ........ .............. ... 44 To furnish blank forms for report; Act Aug. 19,
1912; Sec. 9 .............................. 143 To assess tax; Code 1910; Sec. 1136. . . . . . . . . . . . 35 To .keep record of attorneys for service; Act Dec.
17, 1900; Sec. 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 To approve deposits of home life insurance com-
panies; Act Aug. 22, 1905 ; Sec. 1. . . . . . . . . . . . . 108 Seal; A~t Aug. 19, 1912; Sec. 1. . . . . . . . . . . . . . . . 137 Rules and regulations of; Act Aug. 19, 1912; Sec.
13 ........................................ 144 To conduct business of companies; Act Aug. 19,
1912 ; Sec. 29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152 To supervise organization of companies; Act Aug.
19, 1912 ; Sec. 30 .. . ......... .. ........ .. . .. 155
lNSURANCE DEPARTMENTEstablished; Act Aug. 19, 1912; Sec. 1. . . . . . . . . . 136 Salaries of officers and _clerk ; Act Aug. 19, 1912; Sec. 17 ........ ........................... 146 Appropriation; .A'.ct Aug. 19, 1912; Sec. 28. . . . . . 152
INSOLVENT OR FRAUDULENTLY CONDUCTED COMPANIES ; Act Oct. 24, 1887; Sec. 7...... 14
When unlawful to accept premiums or assessments in; Act Aug. 19, 1912; Sec. 2. . . . . . . . . . . . . . . . 168

L
LIABILITYTo be governed by face of policy; Ac_t Dec. 18, 1893 ; Sec. 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Of stockholders; Act Dec. 18, 1893; Sec. 20. . . . . . 55

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219

LIABILITY AND LOSS RESERVECasualty insurance companies; Act Aug. 22, 1911 ; Sec. 1 . .. .. ......... . ........ .. . .......... 131
LIABILITY RETAINEDWithdrawal of deposit, :fidelity, etc., companies ; Act Aug. 18, 1916 ; Sec. 3. . . . . . . . . . . . . . . . . . . . 202
LICENSECancellation; non-resident company; Act Aug. 16, 1909 ; Sec. 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 Ibid ; companies generally; Act Aug. 19, 1912 ; Sec: 5 ... . ... . .. . ............. .. .. ....... . 141 Frat. ben. soc.; Act Aug. 7, 1914; Sec. 15 .. . ... . . 182 Must be secured before doing business; Act Oct. 24, 1887; Sec. 2 .. .. . . ... :. . .. . . . . . . ........ 3 Ibid; Act Aug. 19, 1912 ; Sec. 6 ............. ... 141 F ee for; fire companies; Act Aug. 16, 1909 ; Sec. 1 126
LIEN(Frat. ben. soc. ) one-half of contribution, but only
under re-adjustment; Act Aug. 17, 1914; Sec. 5. 'i75
LIVE S'l'OCK COMPANIESAct of Dec. 18, 1893, made applicable to; Act Dec. 14, 1895; Sec. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Requirements precedent to license; Act Oct. 24, 1887 ; Sec. 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Powers of; Act Dec. 18, 1893; Sec. 12 . . . . . . . . . . 52 Reinsurance; Act Dec. 18, 1893; Sec. 19. . . . . . . . 55
LIFE COMPANIESForeign to show by certificate that they have $100,000.00 deposit in home State; Act Oct. 24, 1887 ; Sec. 5 .... .. . . .. ... ........ ... . . . . . . . . . . . . 11 Powers of; Act Dec. 18, 1893 ; Sec. 9. . . . . . . . . . . . 51 Reinsurance; Act Dec. 18, 1893 ; Sec. 19. . . . . . . . 55 Fees for li cense; Act Oct. 24, 1887 ; Sec. 11 . . . . . . 22
LODGE SYSTEM DEFINED(Fraterna l Benefit Societies); Act Aug. 17, 1914 ; Sec. 2 .. ..... .... . .. . . .. .... . ............. 173

220

INSURANCE LA ws.

LIQUIDATION OF COMPANIES; Act Aug. 19, 1912 ; Sec. 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
LICENSE. Renewal after cancellation, non-resident companies; Act Aug. 16, 1909; Sec. 2. . . . . . . . . . . . . . . 125
LOSSTo be paid in full ; Act Nov. 23, 1895; Sec. 1. . . . . . 56

M
MASONS, ODD FELLOWS, E'l'C., EXElVIP'fED; Act Oct. 24, 1887; Sec. 3. . . . . . . . . . . . . . . . . . . . 6
MATERIAL MIS-STATEMENT BY OFFICERS ; Act Aug. 17, 1912; Sec. 10 . . . . . . . . . . . . . . . . . . . 1.43
By applicants or beneficiaries; Act Aug. 19, 1912; Sec. 21 ..... .. ......... . .. .. .. . ........... 148
MEDICAL EXAJMINATIONS REQUIRED; Act Aug. 19, 1912; Sec. 21 . . . . . . . . . . . . . . . . . . . . . . 148
Ibid; Act Aug. 19, 1912; Sec. 35 . . . . . . . . . . . . . . . . 159
MEMBERS- INSUREDWho may become (frat. ben. societies) ; age limits; not less than 16 nor more than 60; Act Aug. 17, 1914; Sec. 7 ... . .. . . .. . .. .. ....... . ....... . 175
MERGERS_:_ (Frat. ben. soc.) subject to approval of Insurance Commissioner; Act Aug. 17, 1914; Sec. 14 . . . . . 181
MUTUAL AID SOC~ETIES EXEMPTED; Act Oct. . 24, 1887; Sec. 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
MUTUAL FIRE, LIFE OR ACCIDENT COMPANIESPrinciples applied to formation; Act Dec. 18, 1893 ; Sec. 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Fire companies; Act Aug. 19, 1912; Sec. 39. . . . . . 162
MISREPRESENTATION; Act Oct. 24, 1887; Sec. 16 25 'ferms of policies; Act Aug. 19, 1913; Sec. 1 . . . . . . 167

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221

N
NAME- CORPORATEResemblance to others (frat. ben. soc.); Act Aug. 17, , 1914; Sec. 12 .. ... ... ...... .. ...... ... .
NEGLECT OF SUMMONS; Act Aug. 19, 1912; Sec. 11 .. .. . . . . . ....... ..... ... .... . ... .. . . ... . 143
NE'r VALUE OF POLICIESInsurance Company to calculate for each life company chartered by State; Act Oct. 24, 1887; Sec. 8 . .. .. . ... . ....... ... . . .. . : . . . . . . . . . . 14 Based on American Experience or Actuaries Tables of Mortality; Act Oct. 24, 1887; Sec. 8. . . . 15 Defined ; Act Oct. 24, 1887 ; Sec. 8 . . . . . . . . . . . . . . 15
NEW YORK PERCENTAGE TABLEOn risks more than one year to run ; Act Oct. 24, 1887 ; Sec. 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
NON-RESIDENT AGENTS; Act Dec. 24, 1896; Sec. 1 65 Ibid; Act Dec., 1901; Sec. 1. . . . . . . . . . . . . . . . . . . . 97 Ibid ; Act Dec., 1901; Sec. 2 ...... . . . . . . . . . . . . . . 98
NOTES GIVEN IN PURCHASE OF STOCK; Act Aug. 17, 1912 ; Sec. 1. .. . ........ .... : . . . . . . . 164
Purchasers take, subject to equities; Act Aug. 17, 1912; Sec. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165

0 OATHS-
Administered by Insurance Commissioner ; Act Oct. 24, 1887 ; Sec. 23 . . . . . . . . . . . . . . . . . . . . . . . 29
ODD FELLOWS, ETC. , EXEMPTED; Act Oct. 24, 1887 ; Sec. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
OLD AGE DISABILITY (Frat. Ben. Soc.) Not to commence before age 70; Act Aug. 17, 1914 ; Sec. 5 ................. .. . .. .... .. ....... 174

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ORGANIZATIONTen days' notice to subscribing stockholders ; Act Dec. 18, 1893 ; Sec. 5. . . . . . . . . . . .... . . . . . . . . . 49 Frat. ben. soc.; Act Aug.17 , 1914 ; Sec. l~ . ... .. . 178 Same-must be completed within one year; Act Aug. 17, 1914; Sec. 12 ...... . ............... 178
p
PAYlVIEN'l'SOf taxe -how made; Code 1910 ; Sec. 1044 . . . . . . 35
PENALTYFor failure to make and publish reports; Act Oct. 24, 1887 ; Sec. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 For failure to make tax return ; Act Oct. 24, 1887; Sec. 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 For refusing examination; Act Dec. 24, 1896; Sec. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . 67 On agent selling special or board contracts; Act Aug. 19, 1912 ; Sec. 20 .... ....... .. . .. . .. . . . 148 Sale of illegal stock notes ; Act Aug. 17, 1912; Sec. 2 . . . . . . . . . . . . . . . . . . . . . . . . . : . . . . . . . . . . . 165
PREMIUM 'l'AX- 1% ; tax 1887 .. .. . .. .... . .. . .. . 33 Ibid ; tax 1909 ; Sec. 6 ............ . ... .. ... .. . . 33 Abated by investments ; Act Aug. 16, 1909 ; Sec. 6 34
PROXYMembers, officers, representatives or delegates not to vote l>y (fraternal benefit societies) ; Act Aug. 17,1914 ;Sec.3 ..... .. . . ......... . ... . ...... 174
POLICYHOLDERSParticipation; Act Dec. 18, 1893; Sec. 16 . . . . . . . 54
POOLINGProhibited; Act O!:t. 21, 1891; Sec. 1. . . . . . . . . . . . 42
POWERSNot to go beyond this Act ; Act Aug. 17, 1914; Se~ 12 ... . .. .. ... .. .............. . ... . . . . 178 Retained; Act Aug. 17, 1014 ; Sec. 13 ........... 181

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223

PROVISIONS '1'0 INSURE FUTURE SAFETY; Act Aug. 17, 1914; Sec. 23A .. .. . ..... .. .. .. . . .. . 188
Ibid ; Act Aug. 17, 1914 ; Sec. 23B . . . .. .... .. . . . 189
PUBLICA'fIONOf semi-annual r eports to Governor; Act Oct. 24, 1887 ; Sec. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Of failure to maintain deposit by fire, marine and inland companies ; Act Oct. 24, 1887; Sec. 4. . . . 10 Of condition of life company below legal standard ; Act Oct. 24, 1887 ; Sec. 8 . . : . . . . . . . . . . . . . . . . . 16

R
RELIGIOUS AND MUTUAL AID SOCIETIE S EXEMPTED ; Act Oct. 24, 1881 ; Sec. 3. . . . . . . . 6
REBATES ; Act Aug. 19, 1912; Sec. 20 ..... ..... . . . 147
REGISTRATION OF BONDS FOR DEPOSI'r ; Act Dec. 17, 1900 ; Sec. 1. . . . . . . . . . . . . . . . . . . . . . . . 86
REINCORPORATION(Frat. ben. soc.); Act Aug. 17, 1914 ; Sec. 13 .... 181
RENEWAL OF LICENSE AFTER CANCELLATION. Non-resident companies; Act Aug. 16, 1909; Sec. 2 125
RATE OF INTERESTTo be used in determining net value of policies ; Act; Oct. 24, 1887 ; Sec. 8. . . . . . . . . . . . . . . . . . . . 15
RESERVESHigher than minimum standard; Act Aug. 20, 1906 ; Sec. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 Deposit to cover; Act Aug. 20, 1906 ; Sec. 1. . . . . . 121 Ibid; change of securities; Act Aug. 20, 1906 ; Sec. 4 ..... .. .... : . . . . . . . . . . . . . . . . . . . . . . . 123
RESIDENT AGENTSFire companies to make contracts of fire insurance only through ; Act Aug. 24, 1896 ; Sec. 1 . . . . . . . . 65

224

INSURANCE LAWS.

REPRESENTATIVE FORM GOVERNMENTDefined (fraternal ben. societies). ; Act Aug. 17, 1914; Sec. 3 ............................. . . 173
REVOCATION OF LICENSEFraternal societies ; Act Aug. 19, 1912 ; Sec. 35. . . 159 Ibid; Act Aug. 17, 1914; Sec. 28. . . . . . . . . . . . . . . 193 Over-head writing ; Act Dec. 24, 1896; Sec. 4 . . . . . 67 Ibid; Act Dec. , 1901 ; Sec. 4 .... .. ...... . ....... 101 Impairment of capital ; Act Dec. 20, 1899; Sec. 2 78 Failure to make r eserve deposit; Act Aug. 20, 1906 ; Sec. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 On withdrawal of suit to F ederal court; Act Aug. 16, 1909 ; Sec. 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 For sale of special or board contracts; Act Aug. 19, 1912 ; Sec. 20 ........................ . .. 148
RECEIVEKTo take charge of bonds to satisfy judgment ; Act Oct. 24, 1887 ; Sec. 4. . . . . . . . . . . . . . . . . . . . . . . . 8 Ibid; surety companies; Act Dec. 24, 1896; Sec. 3 61 For insurance companies; limitations; Act Aug. 14, 1914; Sec. 1 . ... ..... .. .. . ..... . . .. . . . .. 171 Fraterna l societies; Act Aug. 17, 1914 ; Sec. 25 . . 192
REDUCTION OF DEPOS.ITStat\'l Treasurer to notify Insurance Commissioner; Act Oct. 24, 1887 ; Sec. 4. . . . . . . . . . . . . . . . . . . . 9
RECIPROCAL LAWSDeposits, li censes, etc.; Act Oct. 24, 1887; Sec. 13 23
REINSURANCE RESERVETo be calculated by Insurance Commissioner ; Act Oct. 24, 1887 ; Se~ 7 ...... . ...... ..... ...... 12 Of foreign companies-calculation of Insurance Commi ssioner of home State to be accepted; Act Oct. 24, 1887 ; Se~ 7 . . ... . ... . .... : . .. . . . ... 13
REINS'l'ATEMENTAfter r evocation : Act Dec. 20, 1899; Sec. 3. . . . . . . 78

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225

RESERVE-(see net value contract); Act Dec. 21, 1900 ; Sec. 2 ...... . . . .. . . . . . ............. . 90
RETURNI Premiums on c;mcelled policies; Act Aug. 16, 1909; Sec. 6 ..... .. .......... .. ... .. ..... . . 33
RULES AND REGULATIONS OF INSURANCE COMMISSIONER; Act Aug. 19, 1912; Sec. 13. 144
Ibid; Act Aug. 19, 1912 ; Sec. 22 ..... .. ... _- .... . 149

s
SE CRE'l'ARY OF STATETo issue certificate of incorporation; Act Dec. 18, 1893 ; Sec. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 To approve investments; Act Dec. 18, 1893; Sec. 4 48
SEMI-ANNUAL REPORTS '1'0 BE MADE TO GOVERNOR; Act Oct. 24, 1887; Sec. 3 .. ., . . . . . . . . . 6
Must be published; Act Oct. 24, 1887; Sec. 3 . .. . 7
SPECIAL CONTRACTSProhibited ; Act Aug. 19, 1912 ; Sec. 20 ..... . .. .. 147
STATEMENTAs of previous Dec. 31st, must be filed prior to issuance of license; Act Oct. 24, 1887 ; Sec. 2. . . . 3 Details to be covered; Act Oct. 24, 1887 ; Sec. 2 . . 4-5 To be renewed annually; Act Oct. 24, 1887 ; Sec. 3 6 Ibid ; Sec. 21 . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . 26
STA'l'EMENTS, ETC.Not warranties; Act Aug. 19, 1912; Sec. 21 .... . . 149
STANDARD FORMFire policies; Act Aug. 19, 1912 ; Sec. 22 ... . .. . . 149
-STATE 'l'REASURERNotice to of loss claimed against fire , marine and inland companies; Act Oct. 24, 1887; Sec. 4. . . . 8

226

INSURANCE LAWS.

STOCKShall be deemed personal ; Act Dec. 18, 1893 ; Sec. 7 51 Dividends in lieu of money; Act Dec. 18, 1893 ; Sec. 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Limited dividends; Act Dec. 18, 1893 ; Sec. 16. . . 54 Commission on sale; Act Aug. 19, 1912; Sec. 19 .. 147
STOCKHOLDERSCompanies to call upon to make good impairment; Act Oct. 24, 1887 ; Sec. 7 . . . . . . . . . . . . . . . . . . . . 13 To have ten days' notice of organization meeting; Act Dec. 18, 1893 ; Sec. 5 . . . . . . . . . . . . . . . . . . . 49 Liability; Act Dec. 18, 1893; Sec. 20. . . . . . . . . . . . 55
STEAM-BOILER COMPANIESRequirements precedent to license; Act Oct. 24, 1887 ; Sec. 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
SUBPOENAS AND PROCESSCommissioner and Deputy Commissioner have power to issue; Act Aug. 19, 1912; Sec. 6 ... . .. 169
SUBSCRIPTIONTo capital stock; Act Dec. 18, 1893 ; Sec. 4. . . . . . 48
SUITSVenue of ; Act - - - ; Sec. 1 . . . . . . . . . . . . . . . . . . 37
SURRENDER VALUESMay be allowed by frat. ben. soc. when maintaining Amer. Exp. 4% reserves; Act Aug. 17, 1914; Sec. 5 .. .... .. . .......... .. ...... .. . 175
SURETY COMPANIESDeposit required; Act Dec. 24, 1896; Sec. 3. . . . . . 60 Ibid; Act Aug. 19, 1912; Sec. 27 .... .. .... ... .. 152

T TAXES-
On premiums; Act Oct. 24, 1887 ; Sec. 11 . . . . . . . . 22 " Occupation" tax $10.00 each county; Act Oct.
24, 1887 ; Sec. 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

INSURA CE LAWS.

227

Of traveling, special or general agen t $50.00 ; Act Oct. 24, 1887 ; Sec. 12 . ..... . ... . .... . . . . . . . . 22
Returns; Act Oct. 24, 1887; Sec. 18. . . . . . . . . . . . 26 Ibid; Act - - - ; Secs. 1-2-3 . . . . . . . . . . . . . . . . . . 38 On premiums-abated by invest ments; Act Aug.
16, 1909; Sec. 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 P ayments, how made ; Code 1910; Sec. 1044 .. .. . 35 Fire inspector 's tax ; Act Aug. 19, 1912 ; Sec. -26 .. 151 Fraternal societies; Act Aug. 17, 1914 ; Sec. 30. . 195
TRANSFERSFrat. ben. soc. ; Act Aug. 17, 1914 ; Sec. 14 ....... 181
u
UMPIREOn fir e loss ; Act _Aug. 14, 1916 ; Sec. 1 ....... _. . . 197

V VENUE-
Of suits; Act - - ; Sec. 1. . . . . . . . . . . . . . . . . . . . 37 Ibid; Act Dec. 17, 1902 ; Sec. 1. ....... ... . . .. . 102
. VESTED IN'l'EREST Ol:l7 BENEFICIAl:UES' None until benefit has become due and payable (frat. ben. soc.) ; Act Aug. 17, 1914; Sec. 6. . . . 175
VALUATIONFraternal societies; Act Aug. 17, 1914 ; Sec. 9 .. .. 176 Ibid; Act Aug. 17, 1914 ; Sec. 23 ......... . .... . 186 National Fraternal Congr ess 'l'able 4 % . Of Insurance Commissioner of home State of life companies to be accepted; Act Oct. 24, 1887; Sec. 8 . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 16 Minimum standard; Act Oct. 24, t887 ; Sec. 8. . . . 15 Ibid; to apply to all policies; Act Dec. 21, 1900 ; Sec. 3 . . . .. .. . .. . . . .... .' .... . . . ........ .. . 90
VALUED P OLICY; Act Dec. 18, 1893; Sec. 1.... . .. 56

228

INSURANCE LAws.

w

WITHDRAWAL FROM STATEConditions precedent; Act Oct. 24, 1887; Sec. 4 .. 9-10 Ibid ; surety companies; Act Dec. 24, 1896 ; Sec. 3 61 Ibid; fire companies; Act Aug. 6, 1913 ; Sec. 1. . . . 166 Ibid; bonding, surety and :fidelity; Act Aug. 18, 1916; Sec. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199
WITHDRAWAL OF DEPOSITNon-resident fire, marine and inland companies; Act Oct. 24, 18~7 ; Sec. 4. . . . . . . . . . . . . . . . . . . . 7 Ibid; Sec. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Ibid; bonding, :fidelity and surety companies ; Act Aug. 18, 1916; Sec. 1 .. .. ; . . . . . . . . . . . . . . . . . . 199 Commissioner to order surrender of bonds ; Act Aug. 18, 1916; Sec. 2 ........ _. . . . . . . . . . . . . . . 202 Liability retained ; Act Aug. 18, 1916 ; Sec. 3. . . . 202





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