Insurance laws of the State of Georgia, 1921

- ,.,r----1-NSURANCE LAWS
OF THE
I
STATE OF GEORGIA
IN FORCE TO AUGUST, 1921
Insurance Commissioner
ATLANTA, GA. BYRD PRINTING CO., STATE PRINTERS
1920

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INSURANCE LAWS .
OF THE
STATE OF GEORGIA
IN FORCE TO AUGUST, 1921
WM. A. :WRIGHT, Insurance Commissioner
ATLANTA, GA. BYRD PRINTING CO., STATE PRINTERS
1920

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INSURANCE DEPARTMENT STATE OF GEORGIA
NOTE.
The laws of this State, relating to insurance and insurance companies, now in force, are published in th~ following pages as found in Park's Annotated Code, 1914, Vol. 2, and Supplement of 1917 (with their section numbers) and in the Georgia Imws for the years 1917, 1918, 1919 and 1920.
WM. A. WRIGHT, Insurance Commissioner.
Atlanta, September 1st, 1920.

STATE OF GEORGIA

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LAWS RELATING TO

INSURANCE AND INSURANCE COMPANIES

GENERAL STATUTES
as codified in PARK'S ANNOTATED CODE, 1914, Volume 2, and SUPPLEMENT, 1917, and PUBLIC ACTS, 1917 to 1920, inclusive.
SECTION I.
Incorporation of Insurance Companies.
2388. Charters to insurance companies. All corporate powers and privileges to insurance 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 Article and the laws and Constitution of this ,State. If from any cause the secretary of State should be disqualified from issuing and granting said . powers, the duties required by this Article to be performed by the secretary of State' shall be performed by the comptroller-general.
Acts 1893, p. 73. 6446, 2392, 2263, 2577, 2564 (n) , 2564 (bb).
2389. Formation of company and petition. Any num- ' ber of persons not less than five may form a company, but be-
fore receivin~ a certificate of incorporation under this
Article, shall first file a petition, addressed to the secretary

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of, State, in which shall be stated the name and residence of each of the persons desiring to form said corporation; the name of the company; the kind or kinds of insurance they propose to carry on; the amount of the proposed capital stock; the number of shares 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 this State; that they ha-:-e given thirty days 111otice of their intention to apply for said charter, by the publication of said petition in the newspaper publishing the legal advertisements of the county where the principal office of said company is to be located, once a week 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 person;. 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 indorse thereon the date of the filing and record the same in a book to be kept by him for that purpose.
Acts 1893, p. 73.
2390 Form of certificate to be "issued. When said
petition has been filed in the office of the secretary of State, he shall issue to said company under the gr eat seal of the State the following form or certificate, to-wit: To all to whom these presents may come...:_Greeting:

Whereas, In pursuan~e of an Act of the General As-

sembly of the State of Georgia, approved December 18th,

1893, and (naming the persons 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 a ,(kind or kinds) in-

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surance compan;, and 'having complied with the statutes in such cases made and provided; therefore, the State of Georgia hereby grants unto the above-named persons, their successors and assigns, . full authority, by and un~er the said name of (insert name), to exercise the powers and privileges of a corporation for the purposes above stated, subj ect to the provisions of the Constitu tion of this Stat e, and all the laws, rules, and r egulations governing insurance companies of force at the da te of this certificate, or that may her eafter becl?me of force either by constitutional or statute law, or by an'y r ules or regulations ,of the insurance commissioner of this St at e 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 comptroller -gen eral), and to which is annexed the great seal of the State, at Atlanta, Georgia, this - - - day of
' 18- .
Acts 1893, p. 74 .
2391. Corporate powers. Ther eafter t he per sons who signed said petition, and all persons who shall become stockholders in said company, shall be a corporation by the name specified in said certificate, and shall possess the powers and privileges and be subj ect t o the provisions contained in this Article.
Acts 1893, p. 74.
2392. Fee. B efore the secretary, or, when disqualified, the comptroller-general, shall issue said certificate, the petitioners shall pay to the treasurer of the State a fee of one hundred d ollars.
Acts 1893, p . 74 . 6446. 2388 .
2393. Certificate prima facie evidence of corporation 's existence. -Any certificate or a duplicate ther eof, is-

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sued under this Article, shall be prima facie evidence of the existence of such corporation.
Acts 1893, p. 74.
2394. Capital stock. When such certificate has been issued, the persons named therein, in case they have not 'taken the whole capital stock, may open books of subscription to fill up capital stock of the company, and, after giving such notice as they m.ay deem expedient, they may from time to time receive subscriptions until the whole capital stock is subscribed. The capital stock of said company shall be divided into shares of one hundred dollars each, 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 Article shall commence the insurance business until at least this amount for each clasS! of insurance to be engaged in is paid in cash, or invested in bonds of the United States, of this State, or the cities or counties of this State, estimated at their cash market value, or hi mortgages on real estat e worth twice the amount for which the same is mortgaged, which invest ment 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-general, as the case may be, shall require an opinion frqm the attorney-general of the State that the bonds are good, legal, and valid .bonds, before approving the investment.
Acts 1893, p. 75.
2395. Organization. When the amount of the capital stock has been subscribed, the persons named in said certificate are authorized to call a meeting of the stockholders for the purpose of organization, of which meeting every subscribing stockholder shall have ten days notice personally, or by depositing said notice in the post-office, postage paid, directed to him, at the post-office nearest his

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usual place of residence. At ' said meeting there shall be elected a board of directors of not less than five, nor 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 is qualified to vote at the election at which he is chosen. If for any reason the election is not held at the time appointed, the same may be held at any time thereafter on ten days notice to all stockholders; but at any meeting of the stockholders or their legal r epresentatives, the notice may be waived, and an election held at once. The directors shall elect from their number a president, vicepresident 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 in 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.
Acts 1893, p . 75.
2395 (a). Directors of life insurance ~mpanies. [The board of directors of all life inswance companies chartered by the laws of this State shall consist of not less than five nor more than twenty ~embers,_ a majority of whom must be bona fide residents of this State, and the majority of which board shall constitute a quo;ru~ for the purpose of
transacting business. J
Acts 1912, pp. 119, 137.
2396. Stock to be paid in before beginning business, ~100,000. Said insuran~e company shall not begin business until at least one hundred thousand dollars of the capital

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stock has been paid in. The directors may require the subscribers to pay the amounts subscribed, in such installments as they may deem proper, which sums they may lend until the company is ready to engage regularly in business. If any subscriber shall neglect to pay any installment required by resolution of the directors, the said board shall declare his stock and .all. previous payments thereon forfeited to the use of the company; but they shall not dec{are it forfeited until they have served a . notice in writing on him personally, or by depositing said notice in the post-office, postage paid, directed to him at the post-office n earest his usual place of r esidence, stating h e is r equired to make such payment at the time and place expressed in such notice, and if he fails to make the same, his stock and all previous payments thereon will be forfeited for the use of the company; which notice must be served at least sixty days previous to t h e day on which su ch payment is required to be made.

Acts 1893, p. 75 . 2572, 2582.

2397. Stock may be increased or decreased. The

-capital stock of any fir e insurance company o.rganized un-

der 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 m creaseI d to such an amount

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.as may be desired by the stockholders of such company, or

/ said capital stock may be decr eased to any sum, not less

than one hundred thousand dollars, as may be desired by

the stockholders of such company, at a meeting of such

stockholders, called for the special purpose by order of the

board ?f directors of such company; of which meeting notice

shall be given to each stockholder (or in case of death to his

legal r epr esentative or heirs at law), personally, or by mail

addressed to his last known r esidence, at least thirty days

previous to such special meeting, and such increase or de-

crease shall be made in such manner as shall have been de-

termined. by the stockholders at such meeting, it requiring

the vote of a majority in amount of the entire capital stock

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of su ch company to auth orize such increase or decr.ease, and
the manner of effecting the same. If at such meeting the stockholders, holding the majority in amount of such cap ital 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, shall ' 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 thereof shall be evidence of all facts therein contained, .in all courts of this State, without further proof: Provided, such increase or decrease shall be approved by the comptrollergeneral as ex-officio insurance commissioner of this State, to be evidenced by indorsing his approval on the said verified copy of such proceedings of said stockholders, which indorsement shall be recorded in the office of the secretary of State, together with said verified copy, and become a part thereof.
Acts 1900, p. 76. 2201, 2197, 57 98 .

2398. Stock deemed personalty. 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.
Acts 1893, p. 76 . 3646, 2573, 2219, 2583.
2399. Organization and commencement of business, charter, etc. All the powers and privileges and said certificate of incorporation of said insurance company shall cease and determine at the expiration of two years from the date of said certificate, if, at the expiration of said two years, said company has not organized and commenced business.
Act.s 1893, p. 76. 1902, p. 52.
2400. Powers of life insurance companies. Every life insurance company incorporated under this law shall

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have the power to insure the lives of all persons who .apply for insurance 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 conne,cted with life risks.

2401. Of fire insurance companies. Any fire insurance company incorporated under this Article shall 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 to insure all classes of property that is now or th.at may hereafter be allowed to be insured by the laws of this State; and may do any and all things necessary for the purpose of carrying on a fire insurance company, not in conflict with the laws of this State, or of the United States.

2402. Of accident insurance companies. Accident

insurance companies, chartered under this Article, shall

have authority to insure persons against accident, loss of

life, or personal injury; to provide a weekly indemnity to

its members in case of accident; and shall have all the usual

and ordinary powers incident to accident insurance, not in conflict with the C~nstitution and laws of this State and

the United States.

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2403. Of live-stock insurance companies. Live-stock insurance companies, organized under this law, shall have the power to insure against loss arising from the death of or injury to domest.ic animals, and shall have all 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.

2404 Contracts to be evidenced by policy. Contracts of insurance to be entered into by any company organized under this Article shall not be binding unless evidenced by

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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 se.cretary of the company.
2470. 2470 (a).
2405. Dividends. The board of directors of any company organized under this Article 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 losses, and after providi~g for SUGh reserve as may be provided for by law.
2406. Stock dividends. Corporations formed under this Article are empowered to issue stock dividends in lieu of money dividends if the board of directors shall so decide, and thereby add to the capital stock, not to exceed the high . est limit of the capital stock of their charter.
2407. Participation by policyholders in net profits. The board of directors may, after providing for such reserve as may be required by law, by a majority vote, give the holders 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 agr~". 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 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 divi-
dends the stockholders shall receive on the face value of

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their stoQk, in which case all net profits above this dividend . and the reserve shall be paid ~s a dividend to all the policyholders. :-

INSURANCE COMPANIES, INVESTMENTS BY.
AnAct appro~ed August17, 1918, to amend Sections 2408 and 2409 of the Civil Code of 1910.
Section, 1. Be it enacted by the General Assembly of the State of Georgia, and it is hereby enacted by authority of th e same, That Sections 2408 and 2409 of the Code of, Georgia of 1910, r eading as follows :
Section 2408. Investments by Insurance Companies. 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 th e United States, or of any State, county, or city therein; first lien on improved real estate in any of the States of the United States, not exceeding fifty per f)entum of the value of such propertyt 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 r eserve ther eon; and invest in buildings for home office purposes; provided, however, that nothing ther ein contained shall authorize any such company to invest in any other than this State more than the legal reserve value of policies h eld in such other State, respectively; provided, further , That all such investments shall first be approved by the Insurance Commissioner of Georgia, except in cases of loans on policies of the company not exceeding the, reserve of the policy at the time of the loan.
Section 2409. Building Which May Be Owned by Corporation. Any company organized under this Article may . own for its own use, as a permanent investment a building

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for the transaction of itsbusiness in the city wh~re the prin

cipal office is located, or at any place where it may have a

branch office or agency, and may sell and d.ispose of the

I.

same at plea&ure. It may also buy and sell any realty that

may be necessary for the protection of any loan it may make.

Be and the same are hereby amended by striking from

all of the words thereof and substituting in lieu thereof the

following :





''Every insurance company' organized and doing business by virtue pf the laws of this State shall have authority to invest {ts money or assets in, an!l m~.ke loans on, any and ali bonds or securities issued by the United States of Amer. ica, the District of Columbia, or any State of the United States of America, or of any' county or city therein, also any bonds of any township or school district therein, or bonds issued by the Federal Land Banks under the provisions of the Act of Congress of the United States of America of July seventeenth, one thousand, nine hundred and sixteen ; its . amendments and supplements; first lien on improved real estate in any of the States of the United 'States of America, not exceeding fifty per cent. of the value of said 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; to invest in a building for home office purpos es. provided, no company chartered under the laws of Georgia shall hereafter invest in such building unless its assets exce ed one hundred thousand dollars, nor shall such company invest more than twenty-five per centum of its assets nor more than the amount of its capital; provided, further, that any such investment in a building for home office use shall first be approved by the Insurance Commissioner; in bonds in any solvent railroad or street railway corporatio'n, upon which no .default in interest has been made; and in any evidence of indebtedness which may, under laws existing at this time, be purchased or discounted by the F ederal Reserve

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Banks; but no insurance company shall acquire or hold more than ten per centum of the securities of any single corpora- tion, nor shall more than ten per centum of its assets be invested in the above described securities of any single com,pany. Such insurance companies organized and doing business by virtue of the laws of this State are authorized to invest their funds in the investments and securities aforesaid and shall not be required to obtain the approval of the Insuranc~ Commissioner of Georgia in making of such invest ments, except as herein provided, but should such insurance company desire to invest their funds in investments and securities other than those specified in Section 1 hereof, they shall be required to first obtain the approval of the Insurance Commissioner of this State. Such insurance companies may also sell, assign, transfer and convey, either with or without warranty. or either with or without recourse upon it, as it may prefer, and real estate, personal property, bond, note, mortgage, deed of trust, deed to secure debt, or other form of property, or security in which it may have invested its inop.ey or assets or made loans ori as allowed . by law, and may also buy and sell any realty that may be necessary for the protection of any loan it may make.''
Sec. 2. Be it further enacted, That all laws and parts of laws in conflict with the foregoing provisions be and the same are hereby repaled.
2410. Reinsurance and reserve. Any company organized under this Article shall have the right to reinsure any or all of its risks; and every company incorporated under this Article shall provide for such reserve as may be required by law.
2411. Liability of stockholders.. Stockholders in corporations organized under this Article shall be individually liable to the extent of their unpaid subsc:r;iption to the capital stock, and for no greater amount.
2270.

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2412. Mutual or co-operative companies. The pre-

ceding sections of this Article, in so far as they are applica-

ble, may be applied to the formation of mutual or co-opera-

tive fire, live-stock, life, or accident-insurance companies;

but applicants for this class of insurance shall not be re-

quired in their petition to set out the amount of the pro- 1 posed ~apital stock or the number of shares of the same;

nor shall it be necessary f{)r the secretary of State to in-

corporate in his certificate of incorporation any reference

to the capital stock of said company.

Acts 1895, p. 53.

SECTION 1 (a).
Insurance Department.
2412 (a). Officers of department. Seal. Records. Reports. [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 relating to insurance. Its chief officer shall be the comptroller-general, who shall be styled ''insurance commissioner.'' Whenever in this law 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 law or any other law of the State. He may appoint a deputy insurance commissioner to assist him in the discharge and performance of his duties, and in the ~vent of a vacancy in the office of insurance .commissioner, or in his absence or disability for any reason, th~ deputy shall perform all the duties required of the insurance commissioner. The said deputy shall execute a bond with proper

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security in the sum of five thousand dollars, said bond to

be approved by the insurance commissioner and conditioned

upon the faithful performance of his duties. The said

deputy shall be removable at the pleasure of the commis-

sioner. The insurance commissioner may also appoint a

clerk in addition to the one already employed by the comp -

troller, and a fire inspector whose powers and duties are

hereinafter prescribed. The commissioner shall have an

official seal of such device as he shall, with the approval

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of the Governor select. Every certificate and other docu-

ment or paper executed by such insuran ce commissioner

in pursuance of any authority conferred upon him by la w

and sealed with the seal of his office, and all copies of pa-

pers certified by him and authenticated by said seal, shall

in all cases. be 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 commis-

sioner shall be deemed a public office and the r ecords, 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 r eport abstracts of the annual statements of the

several insurance companies and bonding and fidelity com-

panies 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 and expendi-

tures of the department for the preceding year, and such

other information and recommendations relative to insur-

ance and insurance laws of the State as he shall deem

proper.]

Acts 1912, p, 119. 2413.

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2412 (b).. ComEensation of officers. [The officers of the .insurance department heretofore mentioned shall be paid the following salaries: The insurance commiSSIOner, $3,000.00 per annum; the deputy insurance commissioner, who shall be a man of actuarial experience, $3,000.00 per annum; and the additional clerk of the department, $1,500.00 per annum. All of said sums to be paid out of the State treasury as is now provided by the law for the payment of salaries of all State house officers, and the said officers of the insurance department herein enumerated shall not r eceive any other fees or compensation whatsoever: Provided, that in no event shall the salaries paid said officials exceed the fe es received under the provisions of this law.]
Acts 1912, pp. 1l9, 128.
2412 (c) . Appropriation for payment of salaries. ['fhe sum of $7,500.00, or so much thereof as may be necessar y, is appropriated annually, and tlie same is hereby appropriated for the payment of all salaries herein provid.ed for and fixed for the first year's service under this law.]
Acts 1912, pp. 119, 133.
2412 (d) . Collection of fees and taxes. [The commissioner shall collect the charges, fees and taxes as now provided by law and give proper receipts ther efor, and at the end of every calendar month, or oftener, in the dis cretion of the commissioner, shall pay into the State treasury, all amounts collected by him.]
Acts 1912" pp. 119, 121.
2412 (e). F.ees, taxes, etc. [All fe,es, license taxes and other dues and taxes now imposed by the law.s of this State and by this law on insurance companies, shall be collceted as now provided by law, and paid into the State treasury as hereinbefore provided.]
Acts 1912, pp. 119, 128.
2412 (f). Examination of insuranc~ companies. [The insurance commissioner may at any time have the right to

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examine into .the affairs of any insurance company doing business as an assessment, fraternal", industrial and charitable or otherwise, in this State, and into the affairs of any company organized under the laws of any other State., hav- ing an office in this State, which company is engaged in or is claiming or advertising that it is engaged in organizing or receiving 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 otherwise. For such purpose he may appoint as examiners one or more competent persons, not officers of, or connected with, or interested in any insurance company, other than as policyholders, and upon such examination, 4e, 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 business. Every such company, its officers and agents, shall produce at the office of the company, where the same are kept its books and all papers in its possession 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 inspection of the commissioner, his deputies or examiners whenever required; and the officers and agents of such company shall facilitate such examination ani!. aid the examiners in making the same so far as it is in their power to do so. Every such examiner shall make a full and true report of every examination made by him, verified by his oath, which shall comprise only facts appearing upon the books, papers, records or .documents of such company, or ascertained from the testiniony sworn to of its officers or agents or other persons examined under oath concerning its a~fairs, and said report so verified shall be presumptive evidence in any action or proceeding against

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the company, its officers or agents as to the facts therein stated. . Tlie insura,.nce commissioner shall grant a hearing to the company examined before filing .any such report; and may withhold any snch report from public inspection for such time as he may deem proper, not to exceed sixty
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days, and may after so filing, if he deems it ofor the interest of the public to do so, publish any such report or the result of any such examination in one or more newspapers of the State. It shall be the duty of the insurance commissioner to examine every domestic insurance company at least once in five years. The expense of all examinations of insurance companies now required by law, and the expense of all examinationss of such companies as contemplated by this law, shall be. paid by the companies so examined: Provided, this section shall not apply to assessment farmers co-operative fire insurance companies doing business in this State in not more than four counties in a division.]
Acts 1912 . pp, 119, 121. 2433, 2514 (j), 2564. (pp), 2564. (rr). 626, P. C.
2412 (g). Orders, how enforced. [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 .action taken in pursuance of the law, and nothing contained in the insurance laws of this State shall be construed to prevent any company or person affected by any order or action of the insurance commissioner from testing the validity of s~tme in any court of competent jurisdiction.]
, Acts 1912, pp. 119, 126.
2412 (h) . Blank fonns furnished for reports. [The commissioner shall annually in the month of December furnish to each of the insurance companies authorized to do . business in this State and required to make annual statements to the department, two ~r more blanks in form approved by him and adapted for such statements.]
Ac ts 1912, pp. 119, 125.

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2412 (i). Additional rules and regulations. [The insurance commissioner shall have full power and authority to prescrib~ such additional reasonable rules and regulations as he may deem proper for the control and government of all insurance companies mentioned in this law. It shall be the duty of such companies to comply fully with such rules and regulations before they shall procur e any business in this State, either directly or indirectly; or to continue to do business in this State.]
Acts 1912, pp. 119, 126.

' 2412 (j). Supervision of companies before organization. [Immediately upon the granting of the charter to any insurance company, and before it offers for s~le any of its capital stock, such company so receiying a charter in this State or being chartered in any other State and offering its stock for sale in this State, before it has been organized ' and procured a license to do business in .this State, shall come under the supervision of insurance commissioner, and shall collect, hold and disburse its funds under such rules and regulations, as insurance commissioner may prescribe. The insurance commissioner shall give directions as to all use of funds so collected until same are invest ed as the law directs and the company fully organized and licensed to do business in the State, thereby bec oming subject to the rules and regulations h er einbefore provided.]
Acts 1912, pp. 119, 136.
2412 (k). Fire ,inspector. Duties and powers. [The commissioner shall have the power, as hereinbefore prbvided, to appoint a competent person to be known as fire inspector, and when any property is destroyed or damaged by fire and the commissio~er 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
I
with such fire and report to him in writing under oath. Such i~spector, when in his opinion such proceedings are
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INSURANCE LAWS.

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necessary, shall take the t estimony of all persons supposed to be cognizant or have information or knowledge in r elation to the matter as to which the examination is h erein required to be made, and he shall cause the same to b~ r educed to writing, and if he shall be of the opinion that there is evidence sufficient to charge any p er son 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 commital 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 informat ion obtained by him in such investigation. Such fire inspector . appointed to conduct such examination shall have the same power as justices of the peace for the purpose of summoning before him in the county where the fire occurred and comp elling the attendance of witnesses to t estify in r elation to any matter which by the provisions of this law is the subject of investigation. Said fire inspector shall have the right to administer oaths to witnesses appearing befor e him and shall have the power to compel witnesses to answer questions p ertaining to any investigation as now provided by law for committal courts, and said inspector shall have all the power now conferred by law on courts of inquiry in this State in the investigation of any matter coming before him under this law.]
Acts 1912, pp. 119, 131.
2412 (l). Inspector's authority to go npon premises. [Said fire inspector for the purpose of making the investigation required by this law, shall have authority to go upon the premises where the fire occurred and make investigation as to the c~use and origin of fire.]
Acts 1912, pp. 119, 132.
2412 (m). Inspector's compensation. [The insurance commissiOner sh all have power to prescrib e the comp ensation of the fire inspector for all examinations required by this law and said compensation shall be paid and all

24

INSURANCE LAws.

other expenses incurred in such examination shall be defrayed by the fire insurance companies doing business in this State, and a tax of not more than one-tenth of .on~ per cent. in the discretion of the insurance commissioner on the grC!ss premium receipts of all such companies is hereby levied for this purpose, to be collected by the insurance commissioner as other taxes on premiums are now collected. The insurance commissioner shall keep a separate account of all moneys received and disbursed under the provisions of this sections and shall include them in his report to the legislature, provided, that should the amount thus collected
in any one year be in excess oi tlie amount required to meet
the expenses herein contemplated, such excess shall be held subject to the order of the commissio'ner to be used for the same purpose in the succeeding year, provided sections ~412 (1) and 2412 (m) shall not apply to assessment farmers co-operative fire companies doing business in this State in not more than four counties in a division.]
Acts 1912, pp. 119, 132.

SECTION 2.
Insurance Companies, How Authorized to do Business.
2413. Insurance commissioner. The comptrollergeneral shall be the insurance commissioner of this State, and shall be charged with the execution of all laws regulating the business of insurance in the State of Georgia.
Acts 1887, p. 113 . 2412 (a).
2414. Companies must be licensed. It shall not be lawful for any insurance company chartered by thi~ State, or other States, or foreign government, to transact any business of insurance in this State without first procuring a license froiD the insurance colnmissioner.
Acts 1887, p. 114. 2415 (a).,

INSURANCE LAWS.

25

2415. License, how obtained. Before said .commissioner shall issue such license, such insurance company must fully comply with all the provisions of this Article, and file with said insurance commissioner a statement under oath of its president and secretary, specifying-
Acts 1887. p. 114. 2412 (h). 626 (b), P . C.
First. The name and locality of the company.
Second. The corrdition of such company on the thirtyfirst day of December then next preceding, exhibiting the following facts and items in the following form, namely:
1. The amount of the capital stock of the company, and what part of the same has been paid in cash, and what part is in notes of the stockholders, and how such notes are secured.
2. The property or assets held by the company, specifying-
(1) The value, as near as may be, of the real estate held' by such company; if encumbered, to what amount.
(2) The amount of cash on hand and deposited in banks to the credit of the company.
('3) 'The amount of cash in the hands of agents and in the course of transmission.
(4) The amount of loans secured by bonds and mortgages on real estate.
(5) The amount of other loans, and how secured.
(6) The amount ofbonds of this State, of other States in the United States, and of any stocks owned by the company, specifying the amount, number of shares, and part and market value of each. kind of stock.
(7) The amount of interest actually due and unpaid.

26

INSURANCE LAWS.

(8) The amount of premium notes on hand upon whic~ policies have been issued.

(9) The amount of all other assets, real and personal, not included hereinbefore.

Third. The liabilities of the company, specifying-

1. The amount of losses due and yet unpaid.

2. The amount of claims for losses r esisted by the company.
3. The amount of losses not yet due, including those r eported to the company on which no action has yet been taken.
4. The amount of dividen ds declared and due and r emaining unpaid.
5. The amount of dividends declared but not yet due.

6. The amount of mo_ney borrowed.



7. The amount of all other claims against the comP,any.

8. The amount of reserve for reinsurance.
2434.
Fourth. The income of the company during the pre-
ceding year,_specifying-
1. The amount of the cash premiums recei~ed.

2. The amount of notes r eceived for premiums.

3. The amount of inter est money received. 4. The amount of income received from other sources.

Fifth. The expenditures during the prece ding year, specifying-
, 1. The amount of losses paid during the year.

2. The amount of dividends paid during the year.

INSURANCE LAws.

2'7

3. The amount of expense paid durjng the year, including fees and commissions to agents and officers of the company.
4. The amount paid in taxes.
5. The amount of all other payments and expenditures.
Sixth. . The greatest amoun.t insured in any one risk, and the total amount of insurance outstanding.
I
Seventh. A certified copy of the act incorporating the company.
2415 (a) . Issuing of license. [It shall be the duty of the insurance commissioner to issue license to the insurance companies and agents when they shall have complied with the requirements of the la':"s of this State and the rules and regulations prescribed by the commissioner so as to entitle them to do business. In each case, license shall be issued under the seal of the commissioner, authorizing and empowering the person, firm, association or company to transact the kind 9f business specified in the license. Before an insurance 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.]
Acts 1912, pp. 119. 123. 2564 (m), 2564 (o), 2414.
2415 (b). Revocation of license. [Whenever it shall appear to the insurance commissioner that a license already granted to an insurance company, should be revoked, the insurance commissioner shall, by first giving such insurance company ten days notice, require such company to show cause before a board to be composed of the insurance commissi~ner, 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 discre-

,

28

INSURANCE LAws.

tion 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.]
Acts 1912, p. p. 119, 123. 2564 (m), 2564 (o), 2264 (tt) .
2416. Forfeiture of license. If any foreign, fire, life, accident, fidelity, guaranty, or other insurance company doing business 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 pubilshed in this State.
Acts 1909, p. 147.
2417. Forfeited license, how renewed. 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 li~ense shall not be renewed in less than two years from the date of its forfeiture.

SECTION 3.
/
Bonds and Deposit Required.
2418. Transact business, when. No insurance company of whatever class, except such companies as have already been chartered by the State, Masonic, Odd Fellows, religious and mutual aid societies, and co-operative or assessment life insurance companies, shall be allowed to transact any business of insurance in this State, ,unless possessed of at least one hundred thousand dollars of actual cash capital paid up, or assets, and invested bonds or stocks,

INSURANCE LAws.

29

estimated at their actual market -value at the date of the statement required by the preceding section, or in mortgages on real estate worth double the amount ior which the same is mortgaged. Upon filing such statement, the insurance commissioner, when satisfied that it is correct, and that the company has fully complied with the laws regulating the business of insurance in this S~ate, shall issue license to said company to transact business in this State.
I
Said statement and license must be renewed annually on the first day of January, or within sixty days thereafter, and must show the condition of said company on the thirty-first day of December. In addition to this statement, all' companies, including co-operative or assessment life insurance , companies doing buiness in this State, shall, through their chief officer or agent residing in this State, make to the Governor of this State semi-annual statements on the first day of January and July of each year, or within sixty days thereafter. The January statement shall contain a full and exact report of their condition on the thirty-first day of December next preceding; said statement to be made in accordance with the terms and conditions set forth and required un,der the preceding section, which shall be sworn to by the officer or agent making the same. The statement for July shall contain a report in short form of income, assets, expenditures, and liabilities in gross, as of thirtieth day of June preceding, and be sworn to by the officer or agent making the same. At the time of making such report to the Governor, each company shall publish at its own expense a duplicate thereof in a newspaper of general circulation published in this State. Should any one of such insurance companies fail or re.fuse to make said statement to the Governor, it shall, by such failure or refusal, forfeit its right to do business in this State, until the first of January of the next year, and on such failure or refusal the

30

INSURANCE LAWS.

insurance commissioner shall recall and cancel the license of such delinquent company.
Acts 1893, p. 80. 6457, 6459, 6461, 2449, 2564 (a), 2451-2454, 2412 (h). 626 (b), P. C. Amendment by legislature to char- its capital below required amount te r of mutual company reducing was invalid. i18/796 (45 E. S. 606).
2419. Deposits by companies of other States. 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 b,onds of this ' State which according to the acts and resolutions of the General Assembly a1' e valid, or bond;, of any county or municipality in this State which have been valid&ted under the laws of this State, and which amount, according to their face value, to ten thousand dollars, which bonds shall be receipted for by the Statt treasurer, and especially deposited by him in the vaults of ' the treasury, and whenever such company ceases to do business in this State, and h as settled up all claims against it as h ereinafter provided, said bonds shall be delivered up to the proper party on presentation of the treasurer's receipt. While said bonds are so deposited the owners of the same shall, subject to the notices hereinafter provided for or given, be entitled to collect the coupons and use them. 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.
Acts 1887, p. 116. 1899. p. 45. 1905, p. 75. 6457, 2449, 232, 445, 2424, 2458.
2420. When notice of loss is given, bonds to be retained. Whenever any loss insured against occurs, the ins{tred, 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 tre"asurer shall be bound to retain, subject to the order of the court trying any suit that may be brought for the r ecovery of such loss, a sufficient amount to pay the judgment in said cas'e in the event of recovery; and if the amount for which

lNSURANCJE LAWS.

31

said company is liable is' not paid in ten days, . then said plaintiff may file an application with the judge of the superior court of the county where the case was tried, for a receiver to take charge of .so many bonds as .shall be necessary to satisfy the aforesaid judgment.
2559.
2421. Bond by receiver. .When said receiver is appointed by the judge, he shall always require bond and security of him for the faithful performance of his duty. The State treasurer, on his application, shall deliver to him bonds sufficient in t11eir market value, if in his custody, to satisfy said judgment. Said receiver's receipt shall be a complete discharge to said treasurer and the State of Georgia. 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 over to the plaintiff, or his attorney, a sufficient amount to satisfy the judgment; and if there remains any r esidue in the hands of such r eceiver, h e shall pay over the same to the agent of the company, taking his receipt for the same, which shall be filed and recorded with the other papers in the case.
Acts 1887, p. 116. 5485. 2559.

2422. Conflicting claims to bonds. If there are conflicting claims, the State treasurer shall deliver over to the receiver, in the order of their application, the aforesaid bonds; and if there is any contest between creditors, which can not be settled in this mode, then the party not receiving sufficient bonds through the receiver appointed in his .,behalf may become a party to the other case, and make known his claim to the other receiver: by making affidavit of the claim and filing the same with him, and the receiver shall report such claim to the judge of the superior court appoint.

32

INS URANCE LAws.

ing him, who shall, by order, provide for a bill of inter-

pleader, as in cases in equity.

Acts 1887, p. 117. 2559 , 5411.

2423. Withdrawal by company from .the State. When any company desires to withdraw from the State, and will

satisfy the commissioner that all suits pending against such

party, and of which no notice has been given, have been fully satisfied, or whenever no notice of claim has been

given, and when rights under existing policies have been

' satisfied and released as the provisions of this Article re-

quire, said treasurer shall r eturn to said comp;:tny the bonds

so deposited, upon order from said commissioner.

Acts 1887, p . 117. 2425, 2561.

2423 (a). Withdrawal of fire insurance companies. [Any foreign fire insurance company or association doing

business in this 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 sworn

statement of_its outstanding liabilities or obligations under all such policies or contracts, so retire or withdraw, includ-

ing 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 com-

panies, as a condition precedent to such withdrawal, rein-

.

sure all such policies or contracts, in some other company or

companies authorized to do business in this State, and shall

file with said insurance commissioner a list showing the name or names of such company or companies in whicl1

such outstanding policies, contracts or obligations have been

so reinsured; and provided further, that the seeurities on

deposit as aforesaid, shall not be so withdrawn from tht cm~tody, control and possession of said State official until after such proof as may be required by said commissioner

has first been furnished him that there are, at the time ot

INSURANCE LAws.

33

such withdrawal, no unsettled claim, claims or losses out-

standing against said company or companies so desiring to

withdraw; and provided further, that said reinsurance

shall be approved by the insurance commissioner.]
Acts 1913, p. 86.

2424. When amount reduced below amount required.

Whenever, by means of the provisions of this Article, the , amount of bonds so deposited are reduced, said treasurer

shall at once notify the insurance commissioner in writing,

who shall give notice to the company depositing, and re-

quire more bonds to be deposited, so as always to maintain

the original amount; and if the company so notified by the

insurance commissioner fails to comply within thirty days,

the license to do business in this State shall be revoked, and

said insurance commissioner shall at the same time give

notice, by publication in a newspaper published at the capital, ~f the fact of such failure and revocat ion of licens(} ;

the cost of which publication' shall be paid by .the company '

failing to comply with the provisions of this Article.
Acts 1887, P 117. 2419, 2562, 2560.

2425. Policies must be satisfied before withdrawal.

When any company, having made the deposit required by

this Article, has existing policies on prop.erty of citizens of

f

this State on which no losses have accrued, and the com-

pany wishes to withdraw its deposits, before being allowed

so to do said company shall take up and satisfy said policies,

and give noticj:l of its intention to withdraw from the State,

and of the fact that it has satisfied all losses and the claims

of policyholders above designated, which notice shall be

published once a week for two months in a newspaper to

be designated by the insurance commissioner of the State,

and at the expense of said company. Any claims of the

citizens of this State for losses, or on existing policies where

no losses have occurred, must be fully settled before said

deposits shall be withdrawn.
Acts 1887, p. 117. 2423, 2561.

34

INSURANCE LAWS.

2425 (a) . Deposit required of domestic mutual fire insurance companies. [All insurance companies chartered under the laws of this State to do a fire insurance business upon the mutual, co-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 $10,000.00. Said deposit to be made under the 'same conditions that deposits of non-resident fire insurance companies are made with the State treasurer: Provided, that this shall 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 ire insurance business in this State /on the assessment plan where their policies stipulate that all the property, real and personal, of the policyliolders is pledged for the payment of the policy.]
Acts 1912, pp. 119, 142.
2425 (b). Amount of assets rllquired. . Emergency , clause. [Such companies shall always have in good assets an amount equal to the unearned premium liability of the company required of all classes of fire insurance companies by the laws of this State. All policies issu ed by such companies shall embrace what is termed an emergency clause, whereby the company reserves the right to call for extra assessments from .its ploicyholders whenever the contingency arises. Samples qf all policy contracts to be used by such companies shall, before issuance, be submitted to the insurance commissioner for his approval.]
Acts 1912, pp. 119, 143.
2426. Deposits of life and accident companies of other States, etc. All life and accident insurance companies chartered by other States of the United States, or foreign governments, shall show, by a certificate from the officer having supervision of the insurance department in the

INSURANCE LAWS.

35

.State in which they are chartered or elect to make their deposit, that' they have deposited not less than one hundred thousand dollars in such securities as may be deemed by such officer as equivalent to cash, subject to his order, as a guarantee fund for the security of' policyholders of said companies.
Acts 1887, p. 118. 6457.
2427. Of home companies. 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 o the policyholders of the company making such deposit. All interest and dividends arising from such securities to be paid when due to the company so , depositing them. Apy such securities as may be needed by the company may be taken from the treasurer, at any time, by replacing them With other securities equally acceptable to the insurance commissioner. The treasurer's certificate for the same shall be furnished to the company.
Acts 1887, p . 118. 1905, p. 76.
2428. Measure of the required deposit. The insurance commissioner shall, as soon as practicable after the filing of the annual stateme.nt of any insurance company organized and doing business on the legal reserve plan under the laws of this State, proceed to ascertain the net reserve value of each policy iri force on the thirty-first day of December immediately preceding, upon the basis of calculation fixed by existing laws of this State; and should any company issue policies based upon a higher stanuard, such policy shall be valued according to such higher standard. For the purpose of making such valuation the insurance commissioner may employ a competent actuary to do the same, who shall be paid by the company for which the

I.

...

36

INSURANCE LAws.

)

services are rendered; but nothing in this section shall pre-

vent any company from making said valuatiorr herein con-

templated, which may be received' by the insurance commis-

sioner upon such proof as he may determine. The expense

of procuring such proof shall be paid by the company.

Upon ascertaining, in the manner abo.;e provided, the net

reserve value of all policies in force issued by any company

desiring tp operate under the provisions of this section, the

insurance commissioner shall notify such company of the amount thereof, and within sixty d~ys after the date of

such notification the officers of such company shall have

the right to deposit with the treasurer of this State, for the

sepurity and benefit of all its policyholders, securities to

an amount which, together with the suni already deposited

with said treasurer, and such sums as may be deposited by

said company with other States and governments, by re-

quirements of the laws of such other States or governments

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 deposits made with other States and

governments 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 securities held in

this State until due allowance or credit ~as been given for

the securities held by their own States or government, so

that all policyholders of "the company shall stand on equal

terms. The securities shall be such as are described in

section 2408, or certificates of deposit. in any solvent bank

or trust company, or satisfactory evidences of ownership

of unencumbered improved real estate as m_ay be lawfully

acq~ired 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 estat~

is situated, such appraisers to be appointed by the insur-

ance commissioner of this State. Such real estate shall not

INSURANCE LAWS.

37

be sold or encumbered unless securities of equal value as herein r equired be deposited with the treasurer of this State in lieu thereof.
Acts 190<6, p. 107. 2408, 2409. 2438.

2429. Certificate by insurance companies. .Upon the

deposit being made by any company as provided in the
.. 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 law, stating

the amount deposited an<J the net reserve value of outstand-

ing policies, and the table upon which the same is computed,

and that it is authorized to transact the business of life

insurance in this State : Provided, that any such certificate

shall expire on the thirtieth day of May in the year follow-

ing its issue. ,If r equested by such company, the insurance

commissioner shall furnish such company with a certificate

over his signature, to be attached to or print-ed on policy

issued by such company, in substance as follpws : State of

Georgia, Insurance . Department, State Capitol, Atlanta,

Ga., - - - , 190-. The net reserve valu,e of policies issued

by - - - life insurance company of ---, Georgia, is

secured by a deposit of acceptable securities in accordance

with the .compulsory r eserve deposit laws of this State,

enacted in the year 1906. - - - , insurance commissioner.

2413.

'

2430. E;ffect of failure to make deposit. Upon the failure of any company having once exercised the privilege of coming under the provisio:qs of the preceding section to make the deposit in the time provided therein, the insur. ance 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

38

INSURANCE LAws.

policies after such notice and before compliance with said requirements.
_ 15.
2431. Changes of securities deposited. All com panies, coming within the provisions of the two p~eceding sections, shall have the right at any time to change their securities on deposit by substituting for those withdrawn a like amount in other securities of the character prov~ded for, and whenever the net reserve value flf policies outstanding and in force against any company is less than the amount of securities then on deposit with the treasurer of this State, said company shall have the right to withdraw such excess; but at least one hundred thousand dollars shall remain on deposit. Companies having on deposit stock or bonds as security may collect the dividends and interest accruing on such .deposits; but upon default by such company to deposit additional security as called for by the , insurance commissioner, the State treasurer shall collect the interest on such security as it becomes due, and add the same to the securities in his hands belonging to such company.
6459.
2432. Approval of deposits. Securities offered for deposits under the preceding section shall be passed upo:n by the insurance commissioner and approved by him before being deposited with the State treasurer, and before the withdrawal of any securities from the treasurer by the company the insurance commissioner shall first approve such withdrawal and the substitution of securities therefor.

SECTION 4.
Regulation of Insurance Companies.
2433. Investigation by commissioner. It shall be the duty of the insurance commissioner, whenever he shall deem it expedient so to do, and he is hereby empowered, either

INSURANCE LAws.

39

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 books and papers of any company, or the agents thereof; to summon and examine under oath any person in this State, rela.tive to the affairs and 'Condition of said company; for probable cause, to visit at its principal office, wherever it may be, any insurance company not of the State, in which the substantial requirements of this Article, as to valuations of policies of life and accident insurance companies, and calculations for the reinsurance reserve of fire, marine, and inland insurance companies, are not in force, for the purpose of investigating its affairs and condition; and to revoke its authority to do business in this State, if said company refuse to permit the examination. All expense incurred in the investigation of said companies shall be paid by the companies so examined.
Acts 1887, p. 118. 2412 (f), 2564 (pp), 2564 (rr).
2434. Calculation of reinsurance reserve. For every fire insurance company doing business in this State, the insurance commissioner' shall calculate, or cause to be cal- culated the reinsurance reserve for unexpired fire risks, by taking fifty per cent. of the premium received on all policies that are written for a 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 a reinsurance reserve. Having charged against the company the reinsurance reserve as above determined for fire, marine, and inland insurance, and adding thereto all other debts and claims against the company, he shall, in case he finds the capital stock of the company impaired more than twenty per cent., suspend the license issued to said company and require the company to cease to do new business within

40

INSURANCE LAws.

this State, and give notice to said company to make good its whole capital stock within ninety 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.
Act s 1887, p. 119. Acts 1899, p. 45. 15, 2415 (3), 2442. 2491. -
2435. Call on stockholders. Any such insurance company, receiving the aforesaid notice of the insurance commissioner to make good _its whole ca~ital stock within ninety days, shall forthwith call upon its stock holders for such amounts as will make its capital equal to the amount fixed by the charter of said company.
Acts 1887, p. 119.
2436. Calculations of reinsurance reserve by commissioners of other States. In the case of companies chartered by other States or foreign governments, the insurance commissioner of this State shall accept calculations of the reinsurance r eserve made by the insurance co,mmissioners of the States in which they are chartered, whe~ such calculations are made and furnished to the insurance commissioner of this State by the first of March in each and every year.
Acts 1887, p. 119.
2437. Proceedings when home companies are insolvent. Whenever- the insurance commissioner shall have reason to believe, fron;t an examination into the affairs of a company, that any insurance company of this State is insolvent or fraudulently conducted or that its assets are not sufficient for carrying on business, as contemplated by the laws of this State, he shall revoke the 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 has been suspended or which has had 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 com-

INSURANCE LAWS.

41

missioner may reinstate such company whenever it makes such showing.
Acts 1887, p. 119. Acts 1899, p. 45. 2441, 2442.

2438. Calculation of net value of life-policies. The insurance commissioner shall, as soo~ as practicable in each alternate year, calculate, or cause to be' calculated, the net value, on the thirty-first day of December of the previous year, of all the policies in force on that day in each life insurance 'Company doing business in this State, chartered by this State, and of every other life insurance company doing business in this State, that shall fail to furnish him, as hereinafter provided, a certificate of the insurance commissioner of the State by whose authority the company was organized, or by 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 thirty-first day of December of the preceding year, w.hich calculation of the net value of each policy shall be based upon the American Experience or Actuaries' table of mortality, at four per cent. interest per annum: Provided, that when 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 Experience or Actuaries' table of mortality, with interest at not less than three nor more than six per cent. per annum, in the discretion of the commissioner, and with reference to the rates of premiums charged by such company. The net value of a poiicy, at any time, shall be taken to be the single net premium which will at that time effect the insurance, less the value at that time of the future net premiums called for by the table of mortality and rate of interest designated
Acts 1887, p. 120. 2428, 2452. 2453.

42

INSURANCE IJAWS.

2439. Where net value of policies is not on hand. In case it is found that any life company doing business in this. State has not on hand the net value of all its policies in force after other debts of the company and claims against it, exclusive of capital stock, have been provided for, it shall be the duty of the insurance commissioner to publish tht;l fact that ~he then existing condition of the affairs of the company is below the standard of legal safety established by this State, and he shall require the company at once to cease doing new business; and it is hereby made the duty of the insurance commissioner, after having determined, as above, the amount of the net value of all policies in force, to see that the company has that amount in' safe legal securities after all debts and claims against it, exclusive of capital stock have been provided for.
Acts 1887, p. 120.
. 2440. Valuation by comlll1Ss1oners of other States. He shall accept the valuations made by the i?surance commissioner of the State under whose authority a life insurance company is chartered, when such valuations . have been made on the basis mentioned above: Provided, the company shall furnish to the insurance commis~ioner of this State, on or before the first day of March in each and every alternate year, a certificate from the insurance commissioner of such State, setting forth the value, calculated on the dates designated above, of all the policies in force in the company on the previous thirty-first 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 securities an amount equal to the net value of all its policies in force, and that said company is entitled to do business in its own State; and every company doing business in the State during the year for which the statement is made, that fails to furnish promptly the certificate 'aforesaid, shall be required to make full detailed

INSURANCE LAws.

43

'
list of policies and securities held or owned by the company to the insurance commissioner of this State, and shall be liable for all charges and expenses consequent upon not having furnished said certificate.
Acts 1887, p. 120.

2440. (a) . Commissions o-n sale of stock, and sale of life insu.:uance policies and agency contracts. [No officer, agent or other person selling or negotiating stock in any insurance company in this State shall receive either directly or indirectly m,ore than ten per cent. of the sales of any of said stock. No president, vice-president, secretary, treasurer, or director or any other executive officer of any insurance company shall par;ticipate in the commissions received by any person selling, negotiating the sale of any stock of any insurance companies either directly or indirectly; nor shall any salaried officer of any insurance company doing business in this State participate in the commissicms arising from the sale of life insurance policies or agency contracts of such companies.]
Acts 1912, pp. 119, 129:
2440 (b). Rebates and discriminatory co-ntracts prohibited. [No insurance company or insurance agent doing business in this State shall enter into any contract to rebate any-insurance premium or any part t'hereof of .any insured or other person. No person shall sell or offer for sale in Georgia and no insurance company shall do business in this State which sells or offers for sale to the public any ''special contract,'' ''board contract'' or any other form 1 of policy or contract whereby any discrimination in any form or character is allowed to any particular person or persons. Any insurance company violating the provisions of this section shall be subject to have its license revoked as hereinbefore provided. Any person acting as agent for any insurance company and the party receiving the be~efit of any slich rebate or discrimination in violation of this section shall be deemed guilty of the offense of misdemeanor

r

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INSURANCE LAWS.

and shall be punished as provided in section 1065 of the Penal Code.]
Acts 1912, pp. i19, 129. 627 (b), P. C.

SECTION 5.
Proceedings in Case of Inslovency.
2441. Proceedings where home companies fail to maintain standard. It shall be the duty of the commissioner, after he has notified a, life insurance company, chartered by the State, to cease doing new business until the net value of its policies in force is equal to that called for by the standard of safety established by the State, at once to cause a rigid examination ip.to the affairs of such company; in case it shall appear that there is no fraud or gross incompetency or recklessness in the management, he may, upon publishing the !acts in the case, permit such company to continue its business for one year: Provided, there is, in liis opinion, re~son to believe that the company may be able to re-establi~ the legal net value of all its policies in force. At the end of the year named above, he may renew the permission, in case on examination he is satisfied that the company is likely to retrieve its affairs.
Acts 1887, p. 120. 2437.
2442. If comptroller knows of insolvency. Whenever the insurance commissioner shall have reason to believe that any insurance company of this State is insolvent or fradulently cond'ucted, or that its assets are, not sufficient for conducting the business of the company, or during any noncompliance with the provisions of this Article, ~is duty shall be as prescribed in section 2434.
Acts 1:887, p. 121. 2437.

INSURANCE LAws. .

45

SECTION 5 ,( a).
Commissioner Taking Control of Property and Business of
Life Insurance Company.
2442 (a). Proceedings to take control. l Whenever
any domestic life insurance company (a) is insolvent; or (b) has unlawfully refused to submit its books, papers, accounts, or affairs to the reasonable inspection 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 withi:rr 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 days from the date of notification thereof by the commissioner; or, (d) has, by contract o.f 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 substantially its entire property or business in the property, or busitiess of any other company, association, society or order without having first obtained the wr~tten approval of the commissioner; or (e) is found, after an examination, to be .in such condition that its further transaction of business will be hazardous to its policyholders, or to its creditors, or to the public; or (f) has wilfully violated its charter or any law of the State; or (g) whenever any officer thereof has unlawfully refused to be examined under oath touching its affairs, the commissioner may, the attorney-general representing him, apply to the circuit court or any judge tHereof iiJ. the judicial district in which the principal office of which such company is ocated, 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

46

INSURANCE LAWS.

/

Its r elief as the nature of the case, the interest of policy-

holders, creditors, stockholders or the public ma& require.]

Acts 1912, pp. 119, 133.



/

2564 (pp),

2442 (b). Injunction. Hearing'and order. [On such application, or . at any time thereafter, such court may iu its discretion, issue an injunction restraining such com 0 pany from the transaction of its affairs or disposition of its property until the further order of the court.' On the return of such 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 posset: sion of the property, conduct the .business of such company and retain such possession and conduct such busip.ess until on the application of either the commissioner, the attorneygeneral representing him, or such company, it shall, after a like hearing, appear to the court that the ground for such order ditecting the commissioner to take possession has been removed, and that the company can properly resume possession 1of its property and the conduct of its business.]
Acts 1912, pp. 119, 134.

2442 (c). Liquidation. [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 aud busines_s 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

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INSURANCE LAWS.

47

notice that a deed, bill of sale or other evidence of title duly filed or rec rded by such company would have imparted.]
Acts 1912, pp. 119, 135.

2442 (d.). Assistants, and their compensation. l:b' or the purpose of this Section the commissioner shall haYe

power to appoint under his hand and official se..al one OJ' more special deputy commissioners of insurance as his agent or agents and to employ such counsel, clerks and assistants,

as may by him be deemed necessary and give each of such

parties such powers to assist him as he may consider wise. The compensation of such deputy, special commissioners, counsel, clerks and assistants and all expense of taking pos-

session of and conducting the business 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 of such

company.]



Acts 1912, pp. 119, 135.

2442 (e). Rules and regulations. [For the purpose of this Section the commissioner shall have power subject to the approval of the court to make and prescribe such rules and regulations.as to him may seem proper.]
Acts 1912, pp. 119, 136.

2442 (f). Report of commissioner. [The commissioner shall transmit to the legislature in his annual report the names of the companies so taken possession ~f, whether the same have resumed business or have been liquidated, or such other facts as shall acquaint the policyholders, creditors, stockholders and the public with his proceedings under this Section, and to that end the special deputy commissioner in charge of any such company shall file annually with the commissioner a report of the affairs of such company, similar to that required by law to be filed by such
company.]
Acts 1912, pp. 119, 136.

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INSURANCE L.AWS.

SECTION 5 (b).
Receivers for Insur.ance. CompaniI .
2442 (g) . Method of putting companles in hands .of
receivers. [Before any insurance compant chart~red un-
' der the ~aws of this State or doing busi~ess in this State shall hereafter be pu~ in the hands of recei ver 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 receivershir: 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 passed upon by the insurance commissioner sitting in connection with . the Governor and the attorney-general in the manner hereinafter provided, to-wit: The insurance commissioner, the Governor and the attorney-gener,al sitting as a board as provided in section 2415 (b), shall, upen such matters and complaint as referred to previously in this section, being filed with the insurance commissioner, proceed to hear the same after giving both the complainant and the insurance company in que~tion, opportunity to be heard, ample an( legal time, however, being given for the production of sucb evidence as either party may deem necessary. During the pendency of such proceedings, the insurance commissioner shall order the company and its officers to maintain the as s(:lts in statu quo. Upon hearing same, said commission, or a majority of them, shall render a decision and judgmen1 recommending or declining to recommend that the commissioner make application, in accordance with sectior 2442 (a) et seq., for an order directing the company tc show cause why the commissioner should not take posseS sion of its property and conduct its business. No receive1 for an fnsurance company doing business in this State shall

INSURANCE LAws.

49

be appointed 'on the petition of any person other than the
insurance comiuissioner, unless it be made to appear to the court where application f~r such appointment is made, / that the insurance commissioner has failed or refused . to ' comply and procE!ed with the findings of said board.]
Acts 1914, p. 135. 2564 (pp), 2564 (qq).

SECTION 6.
Agents of Insurance Company.
2443. Definition of insurance agent. Any person 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 tr:ansmits, other than for himself, any application for insurance or any policy of insurance to or from such company, or agent of the same, or who advertises or otherwise .gives notice that he will receive or transmit the same, or who shall rec~ive or deliver a policy of insurance of any such company, or who shall examin~ or 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 in~urance company, other than for himself, or whc shall examine into or adjust or aid in adjusting any loss for or in behalf of any such company, whether any of such acts shall be done at the instance or request or by the employment of such insurance company, or of, or by, any broker or other person, shall be held to be the agent of the company for which the act is done or the risk is taken.
Acts 1887. p. 121. 2466, 2491, 2456, 935, 936, 937.

50

INSURANCE LAw~.

2444. Penalty on agents of unauthorized companies.
Any person who shall do or perform any{ of the a~ts or
things mentioned, for any insurance company or agent of said company, without such company ha'7ing first received a certificate of authority from the insurance commissioner of this State as required by law, shall be guilty of a mis-
1 - demeanor, and shall also pay lit sum ~qu'al to the State,
county, and municipal taxes and licenses required to be paid by insurance companies legally .doing business in this State; and it is hereby made the duty of the insurance commissioner to see that all violators of the provisions of this section are prosecuted.
A c ts 1887. p. 121. 2465, 2448, 2457. 626, P. C.

2445. Civil liability. Any person who shall do any of the acts mentioned in the preceding sections shall also be personally liable to the holder of any policy o~ insurance, in respect of which su,ch act was done, for any loss covered by the same: Provided, that the penalties prO" vided for shall not apply to adjusters or inspectors of authorized insurance companies from whom the citizens of this State have purchased insurance for themselves, as provided for in this section, whenever . the person or persons purchasing said insurance shall immediatel)( notify the insurance commissioner, giving the name and locality of said company in which they have policies, and at the same time pay to said insurance commissioner the same licenses, fees, and taxes /for each company as are now or may hereafter be required of fire insurance companies authorized to do business by the laws of this State; and when the license fees for any company have been paid in any one year by any person or persons who have purchased insurance from said company, then, in that case, any person or persons purchasing insurance from said company ther(:lafter shall not be liable for the license fees of said company during the said year, but only for such taxes on premiums
I

INSURANCE LAws.
as may be requir~d from time to time of insurance companies authorized to do business in this State : Provid13d further, that it shall not be lawful for said inspectors to solicit business for their companies.
Acts 1890-1, p. 2n5 . 2466.
2445 (a). Agent's license. [All persons shall be re quired to procure a license from the department of insurance before soliciting business in this State except those agents whose names are furnished the insurance commissioner by some reputable insurance company as its ac.. credited agents.]
\c~s45Jg:1~5l~P(ii~9, 124.
2445 (b). Requisites to obtain license. Revocation. [All agents soliciting insurance in the State of Georgia shall, before procuring the license from the department of insurance, make application to the commissioner and before the said commissioner shall issue such license, he shall satisfy himself that such agent is authorized by some reputable insurance company to do business in this State and the commissioner shall be advised and convinced as to the moral character and integrity of such applicant for license. The license of any soliciting agent may be revoked at any time by the insurance commissioner in his discretion.]
Acts 1912, pp. 119, 1-24.
2445 (c). Statement showing agents. [The managing agent of each insurance company in this State shall on October 1st, 1912, and each three months 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.]
Acts 1912, pp. 119, 128.
2445 (d). Corporations soliciting or writing life insurance. [Any person or persons incorporated for the purpose of soliciting or writing life insurance in Georgia or

I

I
52

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I

for the purpose of offering their stock in sai'd company for sale to the public before procuring a license for such incorporation, shall comply with such reasonable rules and regulations as the insurance commissioner may in his discretion prescribe.]
Acts 1912, .pp, 119, 130.

2445 (e). Ealse representation unlawful. [It shall

be unlawful for any person, firm or corporation to make

I

J

or cause to be made any fraudulent or false representations

as to the form, nature and character of the policy offered

for sale, and any person selling a differ ent form or char-

acter of policy from that which he r epresents himself as

selling, or makes any other material 'misrepresentation as

to the benefits accruing under itny policy which he sells or

offe_rs for sale, shall be deemed guilty of a misdemeanor

and punished as provided in section 1065 of the Penal Code,

and any note or other evi4ence of debt given in considera-

tion of said policy shall be null and void and any premiums

paid on such policy may be recovered by such policyholder

in any court- having jurisdiction thereof.]

Acts 1912, pp. 119, 124. 627 (a), P . C .

. 2446. Service on non-resident companies. Any insurance company not organized under the laws of this State, desiring to transact business in this State, shall file with the insurance commissioner a written instrument or power of attorney, duly signed and sealed, appointing and authorizing some person, who shall be a resident of this State, to acknowledge or receive service of process, and upon whom process may be served, for and in behalf of such company, in all proceedings that may be instituted against such company in any court of this State, or any court of t4e United States in this State, and consenting t:hat 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 fur-

INSURANCE LAWS. -

53

ther provide that the authority of such attorney shall con-

tinue until revocation of his appointment is made by_such



company by filing a similar instrument with said insurance

commissioner, whereby another person shall be appointed as

such attorney: Provided, however, that the provisions of

this section shall not be construed to alter or amend the

laws now of force in this State relative to bringing suits

and serving process on foreign corporations dol.ng business

in this State.

Acts 1887, p. 123. 2542, 2258, 2563.

2447. Attorney. niay be appointed to receive service. If any attorney so appointed shall absent himself from this
{
State, or his usual place of business or abode, or shall secrete himself, so that process may not be served upon him, or shall have become disqualified from any cause whatever, or shall die, the insurance commissioner shall immediately appoint an attorney for service for such 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 m:ail, or to its general agent or manager, which appointment 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 have 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 have withdrawn, been exclud'ed from, or ceased to do business in this State. If any company shall fail, neglect, or refuse to appoint and maintain within this

54

INSURANCE LAws.

State such atto.rney or agent,, it shall forfeit the right to do



or continue business in this State.

Acts 1887, p. 123.

2564 (i) .

2448. Company not complying, fees, etc. No person shall act as agent in this State of any insurance company of this or a:ny other State or foreign government, doing a ' business in any manner, until said company has fully complied with the provisions of this Article, and received from the insurance commissioner certificates of authority for itself and its agents to transact business in this State. 'l'he fees charged insurance companies 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, 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 comJ:;lkd with th pro,isions of this Article such fire insurance companies shall be entitled to receive from the insurance commissioner certificat~s of authority for itself, and its agents, lo transact bnsiness in this State; [fire and storm assessment insurance companies in the State of Georgia, the business of which is col'fined to four counties or less, or operated by independeut divisions composed of four coun . ties or less, shall pay to the insurance commission a fee of twenty-five dollars, in lieu of two hundred dollars.] (a) In ,addition to the payment of the above fees, each of said companies shall make a report to the commissioner on the first day of May of each year, or within sixty days thereafter, under oath of the president or secretary thereof, showing the , entire amount of premium receipts of every character and description (deducting 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

INSURANCE LAws.

55

April next preceding, whether said premiums were received in money-or in notes, credits, or any substitute for money, to be taxed as may be provided by law from time to time.
Acts 1.887, p. 124. 1909, p. 87. (a) Acts 1910, p. 55. 2459, 2443.

SECTION 7.
Comity to Foreign Insurance Companies.
2449. When charges on companies of this State greater than imposed by this State. Whenever the laws of any other State of the United States shall require of insurance companies chartered by this State, and having agencies in such other State, or of the agents thereof, any deposit of securities in such State for the protection of policyholders
of or otherwise, or any payment of penalties, certificates
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, ~hen, and in every such case, all companies of such States establishing or having theretofore established an agency or agencies in this State shall be and are hereby required to make the same deposit for a like purpose with the insurance commissioner of this State, and to pay to said commissioner, for penalties, certificates of authority, license fees, or otherwise; an amount equal to the amount of such charges imposed by the laws of such State upon companies o'f this State and the agents thereof.
Acts 1887, p. 124. . 2419, 232, 9, 2203, 2209, 2418, 6457-6460, 2889.
SECTION 8.
Assessment and Other Companies, Reports, etc.
2450. Sworn statement to be filed by assessment companies, etc. It shall not be lawful for any corporation or

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INSURANCE LAWS.

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 corpora-

tion or association shall deposit with the insurance com-

missioner of this State a certified copy of its charter or

I

articles of incorporation; a copy of its statement of busi-

ness for the year ending the thirty-first day of the next

preceding December, sworn to by the president or secre-

tary, or like officer thereof, setting forth the number .and

amount of certificates of membership or policies in, f-orce

and a detaile~ account of its expenditures, income, assets,

and liabilities, and also a certificate sworn to by the presi-

dent and secretary or like officer thereof, setting forth that

it has paid, and 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 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 ex.ecuting or enforcing the execution of insur-

ance 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 consti-

tution and by-laws, and of each and every addition thereto,

which mu'st show that all indemnities to beneficiaries are

in the ~ain provided for by assessments upon all surviving

members. And whene;er said company shall fail to pay

a valid claim to the full limit named in any policy issue'd

by them to any resident of this State, the insurance com-
missioner shall revoke their authority to do business i:J1

this State: Provided, that all such corporations or asso-

INSURANCE LAws.

57

ciations, organized under the laws of this or any other State or country, shall deposit with the treasurer of this State stock or bonds appro.ved by that officer in an amount equal to twenty thousand dollars par value, and of not less than twenty thousand dollars market value : Provided, however, that industrial association or assessment life insur~nce companies doing business on .the industrial or weekly payment plan, and issuing no policies for an amount greater than five hundred dollars, shall be required to deposit a sum equal to one thousand dollars for each one million dollars in force, and thereafter such industrial associations or assessment life insurance companies doing business upon the industrial or weekly payment plan, and issuing a policy for no greater amount than five hundred dollars, shall be required to deposit a sum not l~s than one thousand dollars in each million dollars of insurance in force on the last day of the last calendar year, as shown by its annual statement, until the sum so deposited shall be equal to one hundred thousand dollars. The security so deposited shall be held in trust for the benefit and protection of, and as security for, the policyholders . of such corporation or association, their legal representatives, and beneficiaries. A corporation or- association 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 has on deposit with the proper State official in the State or country of its incorporation a like amount of securities as is required under the terms of this section, and which are held by said authority in trust for the benefit ' and protection of, and as security for, the policyholders of
such corporations or associations, their legal representa-
tives, or beneficiaries. Said securities shall so remain on deposit until it has been made to appear to the satisfaction of said insurance commissioner o, this State that all the

58

INSURANCE LAws.

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 shall be subject to the debts due policyholders and beneficiaries under the same rules and regulations as govern the deposits r equired to be made by fire insurance eompanies under the laws of this State, in so far as the same may be applicable. Companies or associations now organized under the assessment life insurance laws of this State shall not be required to make such deposits for and during the year 1901; but said companies may make such deposits for and during said year if they so elect.
Acts 1887. p. 124. 1900, pp. 47, 74. 1901, p, 33. 1905, p. 77 . 2413, 2514 (b).
2451. Life insurance on assessment plan. 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 and the three succeeding sections, be relicensed and authorized to transact a general life insurance _business in this State, upon filing with the insurance department of the State all papers and documents and making the payments required under existing laws, so far as the same are or may be applicable to such life insurance companies, and all business thereafter transacted by such corporations in this State shall be done in accordance with and governed by the provisions of the laws of this St.ate relating to life insurance compa,nies other than those doing business on the assessment plan, except as provided in .this and the three succeeding sections.
A c ts 1900, p. 74.
2452. Policies and certificates. Every such corporation, upon complying with the requirements of this and sections 2451, 2453, and 2454, ' is authorized to carry out, in good faith, its contracts heretofore made with its members,
(

INSURANCE LAws.

59

but all policies or certificates of insurance heretofore issued by such corporations and now remaining in .force which contain a provision for a payment other than the premium stipulated therein, and under which the donation of pre- mium payments is coequal with the duration of the contract (endowment policies and endowment certificates excepted), shall be ,valued and reserve maintained thereon on the basis of renewable term insurance as fixed by age, in accordance with the provisions of section 2438. To the reserve liability determined as above, the insurance commissioner shall add the determinate contract reserve under any other policies or certificates heretofore issued and remaining in force, and in the absence of such contract reserve shall value them as contracts providing similar benefits are to be valued under the provisions of section 2438: Provided, that under no policy or certificate shall a greater aggregate reserve liability be charged than is required by said section.
2438.
2453. Reserve. No policy or certificate of life insurance shall be issued by a company licensed under section 2451, in this State, unless in compliance with the provisions thereof. All policies of life insurance issued by such corporation, under this APticle, whether o:r: not they contain a provision for a payment other than the premium specified therein, shall be valued and the reserve maintained thereon according to the provisions of section 2438, and the nature of the insurance as defined in each policy.
2454. Societies to which this applies. No law which relates to the formation of corporations to transact the business of life insurance upon the assessment plan, or which provides for the regulation of the business of life insurance by such corporations, shall be applicable to companies doing business under this and the three preceding sections, except to the extent of permitting the carrying out of contracts heretofore made with members: Provided, nothing

60

INSURANCE ' LAws.

in this and said preceding sections shall be construed to apply to any fraternal beneficiary order or society operating on the system of lodges, couJ].cils, or chapters, as defined by the laws of this State regulating such orders or societies.
2455. On assessment plan; policies, ho'Y written. Every" policy or certificate issued to a resident of the State of Georgia by any corporation transacting therein the bus- ' iness of life insurance upon the assessment plan, or admitted into this State under the assessment laws of Georgia, shall print 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 (i;n red ink) in or upon every appiication, circular, card, advertisement, and other printed doyuments issued, circulated, or ~aused to be circulateq by such corporation within the State: Provided, that this section 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 or associations ,as shall only issue policies under which the premiums . are stipulated, and made payable at fixed periods in advance, If any such corporation or association shall at any time fail or refuse to comply with this section, the insurance commissioner shall forthwith suspend or revoke all authority to 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.
Acts 1897, p. 67. 1898, p. 97. 1901, p. 77. 15.
2455 (a). Life insurance on mutual plan, regulations and requirements. .[Life insurance companies chartered by the laws of this State to operate on the mutual co-operative or assessment plan without limitation as to the amount for which policies of said company are to be issued, shall stip-

INSURANCE LAws.

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ulate definitely in the face of the policies the amount to be paid to the 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 companies 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 adequ~te to pay their policies at maturity.]
Acts 1912, pp. 119, 141. 2514 (e), 2499 (a).
2456. Licenses to agents of assessment companies. After authorizing such corporation or association to do business in this State, as provided in this Article, the insurance commissioner shall issue license to agents thereof, to be designated by the corporation or association, or a general agent thereof, authorizing them to act as such agents during the year for which said company is licensed; but such licenses must b.e renewed annually.
Acts 1887, p. 125. 2491, 2445 (a).
2457. Penalty for fraudulently procuring insurance. Any agent, physician, or other person who shall knowingly secure, or- cause to 'be secur~d, a certificate of membership on any person without' his knowledge or consent, or, by means of misrepresentations, false, fraudulent, or untrue statements, be instrumental in securing a certificate of membership on any aged or infirm person or in restoring to membership any persori not in an insurable

62

INSURANCE LAWS.

condition, shall be deemed 'guilty of a misdemeanor, and said certificate or renewal so securep. shall be absolutely void.
Acts 1887, p. 125. 2444. 627, P. C.
2458. Annual report of business. Every corporation or association, which may be doing business in _this State under the provisions of this Article, shall, on or before the first day of March in each year after it commences to do business in the State, make and file with the insurance commissioner a report of its affairs and operations during \ the year ending the thirty-first ~ay of December next pre.ceding. Such annual reports shall be made upon blank forms to be provided and furnished by the insurance commissioner, and shall be verified under the oath of the president or secretary, or other like officers, and shall be published, or the substance thereof, in the annual report of said insurance commissioner.
Acts 1887, p. 126. 986, 2209, 2564 (g).
2459 Fees to be paid. There shall be paid to the insurance commissioner, by each corporation or association authorized to do business in this State, the same fees as required by section 2448, together with all such subsequent fees as are prescribed under said section. In addition to the foregoing fees, eyery such corporation or association shall, on or before the first day of July of each year, report under oath of its president and secretary, or other like officers, to the insurance commissioner the gross amount received on business done in this State during the year ertding 1the thirtieth of April next preceding, and shall at the same time pay int9 the treasury of this State a tax of one dollar upon each one hundred dollars of such gross amount so received by said association or corporation: Provided, however, that. if such corporation or association should at any time be the owner of any real or personal property situated in this State, such property shall not

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be exempt from taxation by reason of the provisions of this
section.
Acts 1887, p. 126. 2448.
2460. Failure to make such report or pay tax. If
such corporation or association shall at any time fail or refuse to make the annual report, or to pay the tax on the gross amount received, as hereinbefore provided, the .insurance commissioner shall forthwith suspend or revoke all authority to such corporation or association, and all its agents, to do business in this State, and shall publish such revocation in some newspaper published in this State, and may proceed to collect whatever sum of money may be dUll or owing on account of such tax by suit or action, in the name of the State of Georgia, against such corporation or association.
Acts 1887, p. 126.
2461. Exemption of fraternal, secret, and industrial societies, etc. Nothing in this Article contained shall apply to or be construed to require any fraternal, or secret, or industrial societies, or other ~ssociations exempt by law, now organized or to be organized in this State, to pay any license fee or tax, or to make or file reports with the insurance commissioner, or to prevent the same from doing business in t,his State; when the money, benefit, charity, or relief is payable by the grand or supreme body of the same, and is derived from assessments on subordinate lodges, councils, or other bodies .or their members.
Acts 1887, p. 126. 2564 (d), 2-564 (g), 2564 (k).
2462. License of fidelity companies. Any corpora tion now or hereafter organized under the laws of this State for the purpose of transacting the business of fidelity insurance shall be licensed to transact business upon compliance with all the requirements in this Article prescribed' with reference to life insurance companies organized under the laws of this Sta.te so far as the same may be applicable

64

INSURANCE LAWS.

to such fidelity insurance company; any fidelity insurance

company incorporated and organized under the laws of

any other State of the United States, or foreign govern-

ments, and which has a paid-up capital or not less than two

hundred and fifty thousand dollars, may be licensed to

transact business in this State upon compliance with all

the r equirements prescribed by this Article, so far as the

\

same may be applicable, for license to foreign life insur-

ance companies to transact business in this State.

A c ts 1887. p, 127.

2463. Live stock and steam boiler insurance companies subject. All live stock and steam boiler insurance companies chartered by this State or other States of the United States, or foreign governments, and doing business in this State, shall be subject tp all the requirements of this Article in relation to life insurance companies, except the requirements in relation to valuation of policies.
Acts 1887. p. 127.

2464. Commissioner and inspectors may administer
oaths. The insurance commissioner and such person or persons a~ may be appointed by him to make inspections

are hereby authorized to administer any and all oaths to parties and witnesses, as required under the rrovisions of this Article.

2465. Law applicable to individuals. All laws regulating the business of insurance in this State by companies are applicable to individuals, associations, and corporations in like business.
Acts 1893. p. 81.

SECTION 9.
Pooling.
2466. Unlawful for companies to make contracts affecting competition. It shall be unlawful for any insur-

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65

ance 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 insurance transacted in this State. And when it shall be mad'e to appear to the commissioner of insurance that any company, or companies, agent, or agents have entered into . any such contract, agreement, pool, or . other arr_angement said commissioner shall revoke the license issued to such company or companies, and the same shall not be r eissued 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 arrange~ents have been annulled and made void : Provided, that nothing in this Article shall be so construed as to prevent any insurance company, legally authorized to transact .business in this State, from separately surveying, inspecting, or examining the premises to be insured, by and with the consent of the owner, for the purpose of bringing about improvements in fire protection, so as to lessen the cost of insurance by reducing rates.
Acts 1890-1, p. 206. 6466, 2443.
2467. Complaints by citizens and citation. Any citizen of this State (whose rates of insurance have been increased, or who has been refused insurance at reasonable rates) shall have the right to file a written complaint under oath, to the best of his knowledge and belief, with the insurance commissioner, charging any company or companies authorized to do business in this State with a violation of the preceding section, and thereupon it shall be the duty of said insurance commissioner to issue a citation, addressed to the company or comp~nies again,st whom said

INSURANCE LAws.
complaint is made, requiring it, or them to be and appear before said insurance commissioner at. a time and place to be fixed by said insurance commissioner, not less than . twenty nor more than forty days from the date of the filing of such complaint, and show cause why their license should not be revoked as provided by the preceding section. Said citation shall be served, not less than t en days from the date of filing said complaint, by the sheriffs or constables of said State in the same manner as provided by law for the service of process upon insurance companies.
Acts 1890-1, p. 206. 2493, 2446, 2563, 2564.
2468. Pra.ctice as to testimony, etc. For the purposes of the provision of this Article, the insurance commissioner shall have power to administer oaths, issue subpoenas for witnesses, hear testimony, issue commissions for taking testimony by interrogatories; and the party or parties complaining, and the company or companies defending, shall have the right to serve notice for the pro. duction of books and papers, under the same rules as now . provided by law for civil actions in the superior courts.
2469. Forum. The county in which the insurance commissioner shall fix the hearing shall be the loci forum of said hearing or trial. The costs and fees for the sheriff or constable, witnesses, and the commissioners taking interrogatories shall be the same as now 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 whom said insurance commis. sioner shall find; for which costs said insurance commissioner is hereby authorized to issue execution to be levied and collected as executions from the courts of this State.

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SECTION 10.
Fire Insurance Contracts.
2470. Contract of fire insurance. The contract of fire insurance is one whereby an individual, or company, in consideration of a premium paid, agrees to indemnify the assured against loss by fire to the property described in the policy, according to the terms and stipulations thereof. Such contracts, to be binding, must be in writing; but delivery is not necessary if, in other respects, th~ contract is consummated.
3222, 2404, 2496 .
2470 (a) . Standard forni of policy for fire insurance. [Each and every fire insurance company doing business in this State shall adopt and write a standard or uniform policy, such as may be prescribed by the commissioner, and it shall be unlawful to issue any other class of policy in this State: Provided, however, that local assessment fire insurance companies doing business in not more than four counties in a division in the State of Georgia, may issue and write such form of policy as may be prescribeu by the commissioner.]
Acts 1912, pp. 119, 131.
2471. Policies must contain the entire contract. Ali life and fire insurance policies issued upon the life or property of persons within this State, whether issued by companies organized under the laws of this State or by foreign companie~ doing business in this State, which contain any reference to the application for insurance, or the constitution, 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 said application signed by the applican~, and of

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INSURANCE LAws.

the by-laws referred to; and unless so attached and accompanying the policy, no such constitution or by-laws shall be received in evidence either as part of the policy or as an independent contract in any controversy between' th~ parties to or interested in the said policy, nor shall such application or by-laws be considered a part of the policy or contract between such parties.
Acts 1906, p. 107. 2479, 2530, 2564 (x).
2472. Interest of assured. To sustain any contract of insurance, it must appear that the assured .has some interest in the property or event insured, and such as he represented himself to have. A slight or contingent interest is sufficient, whether legal or equitable, and several having different interests may unite in procuring one policy; so a husband or parent may insure the separate property . of his wife or child, the recovery being held by him in trust
for them; but ~ mere expectation of an interest is not
insurable.
. 2483, 2484 .
2473. Insuring interest of another. If one undertakes to insure the interest of another, it must be done by his consent, or be subsequently ratified by him; but an insurer may reinsure to protect himself against loss on his contract.
2474. Insurance on changing property. A policy of insurance may be made to cover property changing daily in its specific articles, as a stock of goods.
. 2545.
2475. Construction. The contract of insurance should be construed so as to carry out the true intention of the parties.
4266.
2476. Loss, what is. A loss or injury may occur from fire without the actual burning of the articles or property; as, a house blown up to stop a conflagration, or

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69

goods removed in imminent danger, or damage by water used to extinguish the flames.
2545.
2416 (a). Umpire to appraise loss. Appointme~t. Notice and service. [When in the event of loss or damage to property in this State, described in any policy of fire insurance and covered theri)by, the ascertainment of any such loss or damage is, as provided in the policy, to be determined by appraisers, one ' selected by the company, the other by the insured, and the two so chosen shall have failed or neglected, for a space of t en days after both have been chosen, to agree upon and select an umpire, it shall be lawful for either the assured or the company to apply to any court of r ecord in the county in which the property is or was located, on five days' notice in writing to the other party of his or its determination so to do, to appoint a competent and disinterested umpire. Any such notice in writing, when served by the insured, may be served upon any lo cal agent of the company; and the said court shall, on proof by affidavit of the f ailure or n (Jglect 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 competenit and disinterested person to act as umpire in the ascertainment of the amount of said loss or damage; and the acts of' the umpire so appointed shall. be bindinIg upon the insu. red and the company to the same extent as if such umpire had been selected in the manner provided for in said policy of insurance.]
Acts 1916, p. 128.
2476 (b). Contrary stipulation void. [Any stipulation in any policy of fire insurance contrllry to the terms of section 2476 (a) shall be void.]
Acts 1916, p . 128.
2477. Loss unknown to the parties. If the loss has already occurred, and both parties ar e ~ ignorant of it, the

7o

lNSUR.A.NCE L.A.WS.

''

contract is valid; but the slightest grounds of susplClOU

known to the insured will vitiate the contract unless made

known to the insurer. r

2478. Diligence by assured,. The assured is bound to ordinary diligence in protecting- the property from fire, and gross negligence on his part will relieve the insurer. Simple negligence by a servant, or the assured, unaffected by fraud or design in the latter, will not relieve the insurer.

2521.

2479. Application, good faith. Every application for insurance must be made in the utmost good faith, and the representations contained in such application are con sidered as covenanted to be true by the applicant. Any variation by which the nature, or extent, or character of the risk is changed will void the policy.
4113, 2471, 2482, 2533, 2499 (a), 2514 (h).

2480. Effect of misrepresentation. Any verbal or written representations of facts by the assured to induce the acceptance of the risk, if material, must be true, or the policy is void. If, however, the party has no knowledge, but states on the representation of others, bona fide, and so informs the insurer, the falsity of the information does not void the policy.
4113, 2483. ,

2481. Concealment. A failure to state a material fact, if not done fraudulently, does not void; but the willful concealment of such a fact, which would enhance the risk, will void the policy.
4114 .

2482. Increasing risk. Any change in the prop-
erty, or the use to which it is applied, without the consent
of the i-nsurer, whereby the risk is increased, voids the
policy.
2523, 2479.

2483. Willful misrepresentation voids policy. Willful misrepresentation by the assured, or his agent, as to the

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71

interest of the assured, or as to other insurance, or as to any other material inquiry made, will void the policy.
2489, 2489.
2484. Effect of alienation. An alienation of the property insured, and a transfer of the policy, without the consent of the insurer, voids it; but the mere hypothecation of the policy, or creating a lien on the property, does not void.
4188, 3256, 2472.
2485. Transfer to one of several. A policy issuing to several may be transferred to one of the assured without the consent of the insurer.
2486. Partial sale. A partial sale of property insured voids the policy only pro tanto. A sale not fully executed, and possession remaining with the assured, does not void.
\
2487. Transf~ after loss. After the loss occurs, a sale of the property and transfer of the policy does not affect the liability of the insurer, but the assignee may recover.
2488. Or by operation Of law. A transfer of the property or policy by operation of law, or under the order of the court, will confer on the assignee all the rights of the assured.
2489. Second insurance. A second insurance on the same property, unless by consent of the insurer, voids his policy.
2544, 2483.
2490. Prescribing regulations. Every insurer has a right to prescribe regulations as to notice and preliminary proof of loss, which must be substantially complied with by the assured: Provided, the same are made known at the time of the insurance, and are not materially changed during the existence of the contract. An absolute refusal to pay waives a compliance with these preliminaries.

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INSURANCE LA'ws.

SECTION 11.
\.
Fire and Casualty Insurance Companies.
.. 2491. Regulating business of fire and casualty-
insurance companies. 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 ahd licensed to write policies of insurance in Georgia: Provided, however, that this section shall not apply to property of railroad companies and other common carriers. 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 ,
a State, shall not issue policy of accident-liability or cas-
ualty insurance to any person, or corporation, r esident in said State, save through agents of such companies regularly commissioned and licensed to wri.te policies of accid_ent--liability or casualty insurance in Georgia.
Acts 1896, p. 61. 1901, p. 74. 2443, 2445. 2456, 935. 936 , 937.
2492. Affidavit of president or chief officer. Before issuing certificate of license to any fire, accident-liability , or casualty insurance company to transact the business of fire, accident-liability, or casualty insurance in this State, the insurance commiss:oner shall r equire, in addition to re quirements already provided for by law, that such fir e, 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 sectiou " fo11 the space of twelve months last past, and that they

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73

accept the terms and obligations of this section as a part of the consideration of their license.
2493. Investigation .of complaint of viola.tio~ of law. Complaint b~ing filed by any citize~ of this State that a company authorized to do business in this State has violated any of the provisions of this section, the comptrollergeneral shall diligently investigate the matter, and if necessary examine, by himself or his accredited representative at the head offices located in the United States of America, and also such other offices or agents of such companies as may be de.emed proper, all books, records, and papers of the same, and also the officers thereo.. under oath as to such all~ged violation or violations:. Provided, that before making such examinations the comptroller-general shall require the party making complaint to file with him a good and sufficient bond to cover any expense or cost that may be necessary in making such examination; and in the event that the insurance company is found not guilty of a violation of this section, then said bond shall be responsible for all expense incurred by reason of said investigation. But should the company be found guilty of a v!olation ,of this law, then said company shall be responsible for the expense thereof.
2494. Forfeiture of right to do business. Any fire, accident-liability, or casualty insurance company violating any provision of this section, or refusing to submit to the aforesaid examination when r equired, shall forfeit the right to do business in this State for the . next twelve months thereafter, and the in~urance commissioner shall immediately revoke the license already issued to said company to do business in this State.
15.
2495. Fa' ilure to pay expenses of examination. If any such company shall fail or refuse to pay such expense of examination upon the presentation of a bill therefor by the

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INSURANCE LAWS.

comptrollercgeneral, the comptroller-general may issue his fi. fa. against such company therefor,. to be collected out of the property of the company or its deposit with the State treasurer, in the sa'me manner as judgments against insurance companies not chartered by this State, but doing business hereill', are collected. If any company disputes the amount of such bill and fi. fa., it may contest such amount and its liability therefor by affidavit of illegality returnable to the superior court of Fulton county, in the same maimer as comptroller-general's executions for railroad county taxes can be contested.
1041.

SECTION 12.
Life Insurance.
2496. Contract of life-insurance. Anjnsuranc~ upon life is a contract by which the insurer, for a stipulated sum, engages to pay a certain amount of money if another dies within the time limited by the policy. The life may be ~hat of the assured, or of another in whose continuance the assured has an interest.
2471, 2564 (c), 247{).
.
2497. By whom taken. Contracts of life insurance can be taken only by persons or corporations specially authorized so to do by law.
2498. To whom to be paid. The assured may direct the money to be paid to his personal representative, or to his widow, or to his children, or to his assignee; and upon such direction given, and assented to by the insurer, no other person can defeat the same. But the assignment is good without such assent.

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2499. Law of fire insurance applicable. The principles before stated as to fire insurance, wherever applicable, are equally the law of life insurance.

2499 (a). Medical examinations. [All insurance

companies except companies writing policies of insurance

on the industrial plan writing life insurance in this State,

inch~ding 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 regula-

tions as may be prescribed by such insurance companies

for the purpose of making such {\xaminations, 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 the applicant or beneficiary has been guilty of

actual fraud or has made material misrepresentations in

procuring such policy, which misrepresentations change

the character and nature of the risk as contemplated in

_the policy so issued by the company. All statements, cove-

nants and representations .contained in applications for

insurance shall never be held or construed to be warranties,

but shall be held to be representations only.]

Acts 1912, pp. 119, 130.

1

2564 (!), 2564 (o), 2514 (e) , 2455 (a ), 2564 (w), 2479, 2480; 2481. 2483.

2500. Self-caused death releases insurer. Death by suicide, or by the hands of justice, either punitive or preventive, releases the insurer from the, obligation of his contract.

2501. Time, how counted. A policy of life insurance runs from midday of the date of the policy, and the time must be estimated accordingly, if the policy is limited to a specified number of years.

I

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INSURANCE LAws.

SECTION 13.
Industrial Life Insurance.
2502. Indust.rial life insurance defined. Industrial life insurance is that insurance for which the stipulated premiums, advance assessments, or dues, are regularly payable and collectible weekly or biweekly, and the policies or benefit cereificates for which are for sums of not more than five hundred dollars on a single life, and which policies or benefit certificates may provide a weekly benefit for disability; caused by sickness or accident, not greater than twenty dollars per week.
Acts 1905. p . 96 . . 2506.
2503. Companies of that character. 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 oper~ting under the present insurance laws as insurance companies, or operating under the laws governing fraternal beneficiary orders, ,and issuing' policies or benefit certificates, and conducting their business in the manner and within the meaning and definition set forth in the preceding paragraph, shall be held and deemed to be doing au industrial life insurance business, and shall be subject to this section and all the other laws of this State not repugnant to this section, regulating the business of life, health, and accident insurance in this State.
2504. Requirements. -Any corporation, association, society, or fraternal order organized under the laws of this State, whether organized upon the mutual assessment plan or as a stock company, for the purpose of doing the business of industrial life insurance as in this Section defined, shall, before commencing ' to do business in this State,

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77

comply with the laws of this State regulating the manner in which other insurance companies shall be authorized to ' do business in this State, except that the deposit, required of companies operating upon the plan and according to the manner specified in the two preceding paragraphs of this Section, 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.
2502 .
2505. Deposits by. Any corporation, association, society, or fraternal order, organized under the laws of any other State upon the mutual assessment plan, or as a stock co~pany, for the purpose of doing the busines;; of industrial life insurance as in this Section 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 corporation, association, society, or fraternal order was chartered, or elects to make its deposit, that such corporation association, society, or fraternal order has deposited with said State a sum of not less than five thousand dollars in such securities as are required to be deposited by insurance companies.
2506. Companies subject to this law. The provisions of this Section shall in no way apply to any company, association, organization, or society which does not collect its premiums or dues weekly or biweekly; but any company. association, organization, society or fraternal ben~ficiary order, with or without a ritualistic form of government, which collects its dues or premiums weekly or bi-weekly and which for the purpose of securing business or m,embers, and

' INSURANCE LAws.

for collection of premiums, dues, or. assessments, employs

paid agents, collectors, or solicitors shall come under the

provisions of this Section.

f

2502.

2507. When laws apply. No law hereafter passed shall be. held or d~emed, to refer to the business of industrial life insurance, ;mless the same is expressly referred to in said law.

2508. Solvent assets, amount of. From and after the

first day of January, 1910, every mutual aid, benefit, or

industrial life insurance company or association doing the

business of industrial life insurance in this State, as defined

by the laws of this State, whether on the stock or on the

co-operative, or mutual assessment plan, shall at all times

own and possess solvent assets to the amount of one dollar

and fifty cents for each hundred dollars of insurance at

risk by such corporation. In estimating and determining

such amount there must be deducted therefrom any l.iabili-

ties of such corporation for any sums or amounts due or

owing for any purposes on claims other than liabilities upon

its policies, contracts of insurance, or certificates of mem:

bership; [

] (a) and any such corporation with

a capital stock may estimate and use the property or funds

in which its capital stock has been invested in accordance

with this Section, in determining the amount of its said

solvent assets.

Acts 1909, ,p . 169. (a) Acts 1Bl2, pp. 119, 142. See 2514 (a) . ( 2509-2513 repealed by 2~14 (a).)

2514. Examinations by insurance commissioner. All companies doing the business of industrial life insurance in this State shall, at all times, be subject to such examination as the insurance commissioner of this State may order, and shall be liable for the reasonable expense of making such examination.
Se e 2514 (a).

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79

2514 (a). Income or guaranty certificates. [.No in-

come or guarantee fund certificates, as provided for in the

Act approved August 16, 1909, (sections 2508 to 2514) shall _

be issued in this State: Provided, that t.P.e provisions of

this section shall not apply to insurance companies now

chartered and organized in this State and issuing and sell-

ing 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 lifr 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.]

Acts 1912, pp. 119, 142.

\

The Act of 1909 r e ferr ed to in this section was codified 'n the Code of 1910 as sections 2508-2514 inclusive. It is doubtful wheth er this setion repeals all of the Act of 1909 or only the part relating

to guaranty-fund certificates. Accordingly, only that part of the Act referring to such cert'ficates
has been stricken from this Code. This section has been checked with the enrolled Act and appears here in the language of that Act.

2514 (b). Incorporaiton of industrial companies. Rights and Powers. Deposits. [Stock companie~ or cor-

porations* for the purpose of doing an industrial, life,

hea_lth or accident insurance business or for the purpose of dding either of said busin ess, 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 applicable to the

incorporation of insurance companies as set out in section

2394 et seq., except that the minimum capital stock may be

$25,000.00 and tliat said company so organized may do any or all branches of said business without increasing its capital st~ck though it shall have all the power, rights and

This word appears in enrolled Act, instead of "corporation,'' which appears in published copy.

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IN.SURANCE LAWS.

privileges conferred upon life insurance companie~ un.1er the aforementioned sections of the Code, except that it shall
-not be authorized to write ordinary life insurance, nor s~all
it be permitted to write any policy whatever exceeding ,the amount of $500.00. Before being authorized to do business, the s1;1id company shall deposit with the treasurer of the State of Georgia an amount equal to 60 per cent. of its capital stock, consisting of United States bonds, State, county or municipal bonds.]
Acts 1912, pp. 119, 126. 2450.
2514 (c). When authorized to do ordinary life insurance business. [Any corporation drganized in pursuance of the preceding section may be authorized to do an ordinary life insurance business by complying with the requirements of the laws applicable to life insurance companies and by filing its certificate with the secretary of the State showing that it has made the deposit required for life insurance companies, has procured a license. from the insurance commissioner, and has complied with the other requirements of life insurance companies.]
Acts 1912. pp. 119, 127.
2514 (d). Mutual companies may become stock com- . panies. [Any mutual, industrial, life, health or accident insurance company now existing under the laws of Georgia, or which may hereafter be organized under the laws of this State, may become a stock company by filing a. certificate with the secretary of State, showing that three-fourths of its outstanding policyholders have 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 iri mutual companies may vote by proxy at meetings held for the aforementioned purpose. Said stock

INSURANCE LAWS.

81

company when organized as aforesaid shall have all the power and authority as though it had been originally organized as a stock corporation.]
Acts 1912, pp. 119, 128.
. 2514 (e). Regulation of mutual or assessment companies. [All industrial life insurance companies chartered under the laws of this State to do business on the mutual co-operative or assessment plan, and l~miting their policies to the sum not exceeding 500.00, shall stipulate definitely in the face of the policies the amount to be paid, to the beneficiaries under said policies in the event of the death of the assured. In no tlvent shall payments to beneficiaries by such companies be contingent upon the number of policyholders in the company nor 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 the subdivisions' 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 ~equire said companies to charge such rates as are adequate to pay their policies at maturity. Provided, that companies doing bus~ness on the industrial plan shall not be required to have medical examiners.]
Acts 1912, pp. 119. 140. 24 99 (a), 2455 (a).
2514 (f) . False representations in regard to policies prohibited. [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 tqe benefits or advantages promised

82

INSURANCE LAWS.

thereby, or dividends or shares of surplus to be receivefl thereon, or shall use any name or title of any policy or cla~s of policies which misrepresent the true ,nature thereo~: Provided nothing contained in this section nor in the following sections shall apply to any company or corporation except to companies or corporations doing an indus trial, life, health or accident insurance .business ; nor shall it apply to any policy, member ship or ben efi cial certificate except it be an industrial, health, life or accident insurance policy membership or certificate.]

Acts 1913, p. 98. 627 (c) , P. C.

2514 (g). Rec~ving premium after insolvency.

Fradulent reinstatement. [No agent, director or officer

shall knowingly and wilfully r eceive any premium or

assessment on behalf of any insurance company or asso-

ciation 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

ther eof to the person paying the said premium or assess-

ment. No officer, director, agent, physician or other

p erson shall knowingly issue or cause to be issued a policy

or benefit certificat e, nor aid in the issuing of any policy

or benefit certificate, nor aid in the reinstating in member-

ship or policy standing of any infirm or unhealthy person

not at the time 6f such reinstatement o.r insurance in an

insurable c.ondition, with the intent to defraud, shall be

guilty of a misdemeanor.]

Acts 1913, pp. 98, 99 .
This section has been checked with the enrolled Act, and appears

I
h ere in the la nguage of tha t Act.

2514 (h). Fraudulent statements and claims prohibited. [No person shall knowingly or wilfully ll!.ake or aid in making of any false or fraudulent statement or representation of any - material fact or thin~ in any written statement or certificate for the purpose of procuring or attempting to procure the payment of any false or frall;.du-

INSURANCE LAWS.

83

lent claim against any such insurance company or fraternal or benefit a~sociation, and no person shall make any false . or fraudulent statement or aid in the making of any false or fraudulent 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.]
Act s 1913, pp. 98, 99. 2479 , 2480, 24'81, 2483.

2514 (i). Agent or solicitor required to procure
license. [No person shall act as agent or solicitor for any
insurance compali.y, benefit association or fraternal organi-
zation in this State without having first procured a license
therefor from the insurance department of this State as r~quired by the -law.]
Ac ts 1913, pp. 98, 99. 2445 (a).

2514 (j). Powers of insurance commissioner or deputy. [The insurance commissioner or deputy insurance commissioner of this State shall have full power to issue 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 Vihich the hearing is being had, and the superior courts 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 proper notice and his day in court.]
Acts 1913, pp. 98, 100. 2412 (f).
/

84

INSURANCE LAWS.

SECTION 14. Marine Insurance.

2515. Contract of marine insurance. A contract of marine insur,ance is one by which a person or corporation, for a stipulated premium, insures another against losses occurring by the casualties of the sea.

2516. Unlawful commerce. Prohibited or illegal commerce, or commerce with an enemy, or goods contraband of war, are not the subjects of marine insurance.

2517. Double insurance. Double marine insurance

may be obtained by a party having an insurable interest;

but in case .of loss, he can recover from both companies

o'nly the full value of such interest. If one underwriter

pays the whole amount, he is entitled to contribution from

the other.



4588, 2544.

2518. Implied }Varranty. TJ;te assured impliedly warrants that the ship is seaworthy, and shall not be changed except from necessity, and that she shall be employed, conducted, and navigated with reasonabie skill and according to law.

2519. Illegal voyage. The illegality of the voyage, ' whether known ~o the assured or not, renders the contract
void.

2520. Deviation. A deviation from the voyage, if voluntary and not from necessity, voids the policy. This necessity may arise from-

1. Stress of weather.

2. Want of necessary repairs.

3. Joining convoy.

INSURANCE LAws.

85

4. Succoring ships in d.istress.
5. Avoiding capture or detention.
6. Sickness of master or crew.
7. Mutiny on board.
8. Any similar caus.e founded upon reason.
2521. Perils of the sea. The ''perils of the sea' ' comprehend all those misfortunes to which goods and ships at sea are exposed from earth, air, fire, or water. Loss from enemies is not included, 11;nless expressly named. The negligence, or unskillfulness of masters or mariners is not included in a policy on the ships or goods belonging to the owners of the vessel. If loss occurs to third persons therefrom the undenvriter may recover from the owner of the ship the amount paid by him.
2478.
2522. Continuance of risk. Generally the risk continues till the goods are delivered on shore at the port of destinatio~, or to others by direction of the assured.
2523. Increase of risk. Any change by which the risk is increased voids the policy.
2482.
2524. Open policy. An open policy is where the amount of the interest of the assured is not fixed by the . policy, but is left to be adjusted in case of loss; such policies may issue in blank to be filled by the insured as new risks may be desired.
2545.
2525. Value, how ascertained. The value stated in a poliq is always subject to be reduced by proof.
2546.
2526. Fonner rules applicable. The rules as to war. ranties, misrepresentations, and concealments, are the same in marine as in fire insurance.
2479-2483.

86

lN.SURANCE LAws.

2527. Rights df owners of merchandise on vessels. Whenever any cotton or merchandise, on any vessel load. ing or loaded, within the waters of this State is damaged by fire or water, or both, while within the waters of this . State, the owners or insurers of such cotton or merchandise, or the agents of either .or any of them, shall, after having given a satisfactory bond for the payment of the pro rata share of said cotton or merchandise in any liability for salvage, and in the expenses of general or particular average, and after having given a bond to\ hold the ship harmless against the liens of those holding the bills . of lading for said cotton or merchandise be authorized to take possession of and control such damaged cotton or merchandise, and use, manage, and dispose of the same for the protection of the interest of such owners or insurers in such property, any law, usage, custom, or anything in the contract of affreightment with the owner, master, or agent of such vessel to the contrary notwithstanding: Provided, that, as between the owner and insurer, the rights and powPrs of the owner shall be prior and superior to the rights and powers of the insurer, except as specially stipulated in the contract of insurance.
Acts 1889. p. 165.
2528. Owner or master of vessel must care for damaged property. Nothing in the preceding section shall be construed to relieve such owner or master of such vessel from taking proper care of such damaged .property in the event the owners or insurers, within a reasonable time after such damage, fail to take control of such cotton or me.rchandise, and nothing herein contained shall be cqnstrued to relieve said damaged property from the liability imposed by existing laws and customs to contribute its proportion to the expenses accruing up to the time said property is taken possession Gf by the owner, insurer, or agent.

INSURANCE LAws.

87

SECTION 15.
Mutual Insurance.
2529. Contract of mutual msurance. The contract of insurance is sometimes upon the idea of mutuality, by which each of the assured becomes one of the insurers, thereby becoming interested in the profits and liable for
the losses; without a charter, such an organization would
be governed by the general law of partnership; when incorporated, they are subject to the terms of their charter.
2530. By-laws. 'fhe rules and regulations of such a company, adopted in pursuance of the charter, become a part of each policy, and all the assured are presumed to have notice thereof. But new conditions can not be annexed to the policy after it is issued, except by the consent of the assured.
2171.
2531. Officers agents of all. The officers of such a company are the agents of all the assured, and to th' extent of their. misconduct or neglect, shall affect each, upon the general principles. governing principal and agent, except 1as to the transaction of making the contract of insurance; up to the time of its execution; the assured stands as a third party, and the officer issuing the policy acts for those already in the company.
3601.
2532. Liability fo:r reducing funds. If a mutual insurance company, by dividends, reduces its available funds below the point of remaining able to meet all losses occurring on policies then in existence, the directors of such company primarily, _and the parties receiving the dividends, ultimately and pro rata, shall be liable individually, jointly, and severally, for the amount of such unpaid losses.

88

INSURANCE LAws.

2533. Stri9ter good faith required. A stricter good faith as to representations and concealments should b'e required in m1,1.tual insurance than in any other similar contracts.
2479.
2534. Agencies of foreign companies to be licensed. Agents of all foreign insurance companies must obtain a license before taking insurance in this State, under the penalties and in accordance with the provisions of this Code.
2443, 2456. 935, 936, 937.

SECTION 16.
Mutual Companies Insuring Against Loss by Burglary, etc.
2535. When to be licensed. 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 loss 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.
Acts 1897, p, 64.
2536. Prerequisites to obtaining license. . Before such company shall be permitted and licensed to transact business in this State it shall have in force five hundred or more policies on which the premium shall have been paid in cash, or shall be evidenced by the written contracts of the policyholders, on which not less than one fifth of the amount shall have been paid in cash, and the cash and net face value of cmitracts for premiums on hand shall' amount to a sum of not less than fifty thousand dollars. The

INSURANCE LAws.

89

premium contracts so held shall constitute a part of the assets of the company.
2537. Copy of .charter and statement of condition to be filed. Every such company, ass?ciation, or partnership shall file in the office of the commissioner of insurance a certified copy of their charter or deed of settlement, together with a statement under oath of the president and vice president and secretary of the company for wrich he, or 'they, may act, stating the name of the company and place where lo cated, a detailed statement of its assets, showing the number of policyholders, aggregate amount of premium contracts, the amount of cash on hand in bank or in the hands of agents, the amount of r eal estate, and how the same is incumbered by mortgage, the number of shares of stock of every kind owned by the company, th.o par and market 'value of tht; same, amount loaned on bond and mortgage, the amount loaned on other securities, stating the kind and the amount loaned on each, and the estimated value of the whole amount of such securities, and any other assets or property of the company; also stating the indebtedness of the company, ,the amount of losses adjusted and unpaid, the amount incurred and in process of
/
adjustment, the amount r esisted 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 for any such company whose reinsurance reserve, as required in this section, is impaireft to the extent of twenty per ceD:t. thereof while such deficiency shall continue.
2538. Statement to be renewed. The statement required by the preceding paragraph shall be .renewed from year to year in such manner and form as may be required by said insurance commissioner, with an additional state. ment of the amount of premiums received in this State

90

INSURANCE LAws.

during the preceding year, so long as such agent continues, and the said insurance commissioner, on being satisfied that the membership, assets,. securities, and investments remain secure, as heretofore mentioned, shall furnish a renewal of the certificate as aforesaid, upon the payment to the State, at the time of filing the statement here provided for, of a fee .of five dollars for each corporation, anti twenty-five dollars for each foreign corporation.
2539. Certificate of authority before doing business. Nor shall it be lawful for any agent or agents to act for any company or companies referred to in this Section, directly or indirectly, in taking risks or transacting the business of burglary and robbery insurance, or the insurance of the safe shipping of money and securities by registered mail in this State, without procuring from the commissioner of insurance a certificate ' of authority, stating that such company has complied with all the requisitions of this Section which apply to such companies, and the name of the attorney appointed to act for the company.
2443, 935.
2540. Line of business and reinsurance reserve. Any company permitted and licensed to transact business i '1 this State under this Section shall confine its line of bu~i ness to that stated in paragraph 2535, and shall confine its business in this State to banks, bankers, loan companie;;, and county treasurers, and shall not issue any policy cr policies to any persons, .firms, or corp.orations in this State other than banks, bankers, loan companies, and co-unty treasurers. Every such company_shall set aside a remsurance reserve of fifty per cent. of its premiums, whether collected in cash or represented by obligations of the policyholders, as written in its policies; this reinsurance reserye to be maintained so long as the risk is in force.
. 2541. Membership fee and premium: Policyholder;; of any company permitted to transact business in this State under this Section, shall be held liable to pay the

INSURANCE LAws.

91

membership fee and premium on their insurance as paid or contracted to be paid at the time the policy is taken ont or the risk begins, and shall not be held liable for any otiHlr or further assessments or claims on the part of the company or its policyholders. The memb(:lrship fee and pr~ mium 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 shail be the limit of the liability of the policyholder to the com pany for premium on thei:r insurance.
2542. Service on appointed attorney and otherwise. It shall not be law:Eul 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 Section, directly or indirectly to take risks or to transact any business of insurance in this State, by any agent or agents in this State, 11ntil it shall first appoint an attorney in this State on whom process of law can be served, and file in the office of the insurance commissioner a written instrument, duly signed and sealed, certifying such appointment, which shall continue until another attorney he substituted, and any process issued by any court of record in this State, and served upon such attorney by the prop er officer of the county in which such attorney may r eside 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 maller provided by law.
24 46, 2258. 2564. ~
2543. Penalty. Any violation of any of the provisions of this Section shall subject the party violating the same to a penalty of not less than one hundred dollars or more than five hundred dollars. .

92

INSURANCE L.A.ws.

SECTION 17.
Amount of Recovery an.d Damages.
2544. Amount of recovery. The assured may recover the .full amount of his loss : Provided, the same is withia the amount insured. If he has several policies on the same property, the recovery fr om each company will be pro rata as to the amount insu,red.
2476, 2517, 2489.
2545. Valued policy. All insurance companies shall pay 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 all stipulations in such policies to the contrary shall be null and void : Provided, that in cases of losses oil stocks of goods and merchandise and other species of personal property changing in specifics and quantity by t h; usual customs of trade, only the actual value of the property at the time of loss may be r ecovered : Provided, thE> loss does n ot exceed the amount expressed in the policy.
Acts 1895. p. 51. 4390, 2524, 2525, 4253, :!474, 3256.
2546. Estimation . of value. 'l'he value of property is to be estimated at the time of the loss. Contingent profits are not a part of such value.
4394.
2547. Privilege of rebuilding. The privilege of rebuilding or r einstating the property must be reserved in the policy or it does not exist. In such cases, the assured has no claim for rents, if done within a r easonable time, n'or the insurer for increased value from the fact of new and more valuable materials.
3711.
2548. Recovery back by insurer. If, after payment of loss, the insurer discovers evidence to show himself not

INSURANCE LAWS.

93

liable on the policy, he may recover back the money in an action for money had and received.
2477, 2481, 4317, 45 70, 4581.
2549. Insurance companies shall pay damages, when. The several insurance companies of this State, and foreign insurance companies doing business in this State, in all cases when a loss occurs, and they r efuse to pay the same within sixty days after a demand shall have been made by the holder of the policy on which said loss occurred, shall be liable to pay the holder of said policy, in addition to the loss, not more than twenty-five per cent. on the liability of said company for said loss; also, all reasonable attorney's fees for the prosecution of the case against said company: Provided, it shall be made to appear to the jury trying the same that the r efusal of the company to pay said loss was in bad faith.
Acts 1872, p. 43. 4392, 4505, 2'666, 3714 (2).

SECTION 18.
Fidelity Insurance.
2550. Contract of fidelity insurance. The contract of fidelity insurance contemplated by this Article is one whereby a fidelity insurance company, or such other corporation or company as may be doing a fidelity insurance business in this State, for a stipulated sum of money or premium, insur es against loss caused by the defalcation , default, neglect, or dishonesty of a trustee, officer of the law, officers of court, agents, or other employees and such other persons as may be required to give bond or guarantees the p erformance of all such bonds, or other obligations in favor of the insured as individuals now do under the law who sign the bond of all such persons as sureties.
Acts 1887, p . 108. 282, 986, 2458.

94

INSURANCE LAws.

2551. What companies may bec6me sureties on bonds.

Any fidelity insurance company or such other corporation

or company that 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 a foreign

/

State, for the purpose of transacting business 9f fidelity

insurance, which has a paid-up capital of not less than two

hundred and fifty thousand dollars, and which shall have

complied with all requirements of law for license to and

transaction of business by such companies in this State,

may, upon proper proof t her eof and upon production of

evidence of solvency and credit, satisfactory to the JUdg\

head of department, or other officer or officers in tlus

State authorized to approve and accept bonds, be accepted as surety upon the bond of any person, c'o~pany, or corporation required by the laws of this State to execute bonds, in1

lieu of any surety or sureties now r equired by law; any

such fidelity insll.rance company, or other companies in this State doing a fidelity insurance business, may be 1

released from its liability on such bonds on the same terms

and conditions as are by law prescribed for the release of

individuals; it being the true i!ltent and meaning of the

provisions of this Article to enable the companies and cor-

porations doing a fidelity insurance business to become the

surety on all bonds required by law to be taken, with all

the rights and subject to all the liabilities of individuals.

2911, 4071.

2552. Estopped to deny corporate power. Any fidelity insurance company, or other corporation or company doing a fidelity insurance business in this State, which shall execute any bond as surety under the provisions of this Article, shall be estopped, in any preceeding to enforce the liability which it shall have assumed or incurred, to deny its corporate power to execute such instrument, or assume such liability.
5736.

INSURANCE L.A.ws.

_95

2553. Venue of suits on such bonds. In the event any fidelity insurance compa~y, or other corporation or company doing a fidelity insurance business in this State, shall become surety on any of the bonds or obligations mentioned in this Article, such corporati.on or company shall be subject
/
to be sued on such bonds or obligations in the county of the residence of the principal in such bond or obligation, and service may be perfected on said corporation or comlany in the manner prescribed for service on fire insurance companies doing business in this State: Provided, that said companies, before beginning business in this State, or signing any bond, shall obtain a license from the comptroller-general, which license shall be revoked if said companies as to apy bond as to business in this State shall begin a suit in the United States courts, or remove or cause to be r emoved any suit thereto.
2564, 5530, 5594, 2912.
2553 (a). Deposit required. [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, conditioned as is now provided by law for the deposits r equired of such companies in writing bonds of public officials of this State: Provided, That whenever any such company shall have already deposited $25,000.00 as now provided by law for writing bonds of public officials it shall not be r equired to deposit an additional sum.]
Acts 1912, ppJ 119. 133. 2557.
2554. Bonds of city, county, and State officers. Solvent guarantee companies, surety .companies, fidelity insurance companies, and fidelity and deposit companies incorporated and organized under the laws of this State, or any other State of the United .States, for the purpose of transacting business of fidelity insurance, which have a paid-up capital of two hundred and fifty thousand dollars, and which shall have complied with all the r equirements of law as to license required by the State, may upon proper proof

96

INSURANCE L.A.ws.

thereof, and upon production of evidence of solvency, he 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 such bond by r eason of the fact that the books and accounts of the principal have been examined and approved as correct by the proper authorities, when in fact there has been a breach of said bond and a loss occurring from such breach.
Acts 1896, p : 58. 1897, p. 60. 282.
2555. . Attachment bonds. Such companies may be taken as the sole surety upon all attachment bonds, whether they have or do .not have real estate in this State.
5059.
2556. Remedies in case of default. In case of default . upoJ;J. any bond upon which such companies are sureties, then the city, county, and State authorities shall have all the remedies against the principal and sureties, upon said bonds, including the right to issue fi. fas. instanter, as provided by law.
Acts 1897, p. 60.
224.
2557. Deposit to be made before becoming security. All companies described in this Section, chartered by this State or other -States or foreign governments, now doing business in this State or hereaft er doing business in thi8 State, which offer or undertake to become security upon any bond required by law of city, county and State officers, before being 'accepted as surety thereon, shall be r equired . to deposit with the treasurer of this State bonds of the United States, or bonds of this State which acc,ording to .the acts and resolutions of the General Assembly are valid, and which amount, according to their face value, to

INSURANCE LAWS.

97

. twenty-five thousand dollars, which bonds shall be receipted for by the State treasurer, and especially deposited by him in the vaults of the treasury, and whenever such company
\
ceases to do business in this State and has settled up all claims against it, as hereinafter provided, and has beell released from all the bonds upon which it has been taken, said bonds shall be delivered up to the proper party on . presentation of_ the treasurer's receipt.
2553 (a).
2558. C'ollection of coupons; faith of the State. While said bonds are so desposited, 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 dil:lposrd of as hereinafter provided.
Acts 1896. p. 58 . 2419.
~ 2559. Proceedings when loss occurs, receiver. Whenever any loss insured against occurs, the insured, in order to secure his recovery, may give notice to the State treasurer of the pehdency of the loss and of the amount claimed, after which time the State treasurer shall be bound to retain, subj ect 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 the case, in the event. of recovery; when suit is ended, and the amount ascertained for which the party sued may be liable is not paid in t en days, then the plaintiff may file an application with the judge of the superior court of the county where the case was tried, for a receiver to take charge of so many bonds as shall be necessary to satisfy the judgment.
When a receiver is appointed by the judge, who shall always r equire bond and security of him for the, faithful performance of his duty, the State treasurer, on his application, shall deliver to him bonds sufficient in their market value, if in his custody, to satisfy the judgm,ent. The r e-

98

INSURANCE LAws.

ceiver's receipt shall be a complete discharge to the treas-

urer and the State of Georgia. Then the receiver shall

apply to the judge of the superior court for an order of

sale, and in pursuance of the order sell the bonds. After

deducting such expenses and commissions as shall be al-

lowed by the judge, he shall pay over to the plaintiff, or

his 1attorney,

f
a

sufficient

amount

to

satisfy

the

judgment;

and if there remains any residue in the hands of the re-

ceiver, he shall pay it to the agent of the company, taking

his r eceipt for it, which shall be filed and recorded with

the other papers in the case.

If there are conflicting claims, then the State treasurer shall deliver to the receivers, in the order of their application, the bonds; and if there is any contest between creditors which can not be settled in this mode, then the party not receiving sufficient bonds through the receiver appointed in his behalf may become a party to the oth~r case and make known his claim to the other receiver by making affidavit of the claim and filing the same with him, and then the receiver shall r eport such claim to the judge of the superior court appointing him, who shall by order provide for a bill of interpleader, as in cases in equity.
5471, 5475, 5482, 2420, 2421, 2422.
2560. When excess of bonds shall be returned. The State treasurer, upon demand made upon him by said companies, shall return to insurance and fidelity and deposit
~ mpanies and fidelity and surety companies the excess of the deposits held by him over and above the deposit required by law of said companies. In case the deposit required of said companies is lessened by law ,the excess of the sum required by law after such decrease shall, upon demand of said companies, be returned to them by State treasurer.
Acts 1899, p. 54. 2424, 2562.

INSURANCE LAws.

99

2561. When a company desires to withdraw from the State. When any company desires to withdraw from the State and will satisfy the insurance commissioner that all
suits pending against it, and of which no notice has been -.
given, ha,e J>een fully satisfied, or whenever no notice of claim has been given, and when it has been .released from all bonds theretofore given by it, then the treasurer shall return to it the bonds so deposited upon order from the insurance commissioner. When any <;ompany, having made the deposit r equired by this law, has assumed any liablty, by suretyship or otherwise, on ~hich no losses have accrued, and it wishes to withdraw its deposit, before being allowed to do so it shall have itself released from such obligation, whether suretyship or otherwise, and give notice of its intention to withdraw from this State, and of the fact that it has satisfied all losses and the claims against it, and has been released from all obligations assumed by it, which notice shall 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 occurred), be fully settled before said deposits shall be withdrawn.
Acts 1896, p. 58. 2423, 2425.
2561 (a). Withdrawal of deposit by retiring company, how accomplished. Conditions specified. [In case any fidelity insurance company, or any surety or bonding com pany authorized to do the business of fidelity insurance or acting as surety on bonds under the provisions of the statutes of this State touching that subject has retired from doing that business in this State, or wishes so to retire, and wishes to withdraw the deposit required to be made with the State treasurer of this State, as r equired of such companies, the same may be accomplished i:q the following manner: The company so de~iring to r etire from business

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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 r etired, 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 regulating the business of such companies. A..dditionally thereto the company shall do one of the following three things:

First. Submit a statement und,er oath verified by one of its executive officers that such company has settled all losses whiqh have accrued against it ori account of bonds written or suretyships assumed in this State, and that its liability has terminated as to all obligations incurred on account of bonds written or suretyships assumed in this State, and shall, if required by the insurance commissioner of this State, make such further proof of these facts as will satisfy the commissioner of the truth thereof, and shall further show that there has been published in some daily n ewspaper of general circulation 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 intenti.on of such company to retire from business 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 suretyship in this State; and also giving notice of the date on which application will be made to the insurance commissioner for authority to withdraw the deposit, and warning all persons that if they have any cause to show why said company should not be allow,ed to withdraw its deposit that they should make the same known in writing to the insurance commissi'oner on or before the date named. The insurance commissioner shall have jurisdiction to hear evi-

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deuce and determine the validity of any such objection, if
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 shall pay all losses 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 according to the legal tenor and effect ther eof. 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 shall have made the deposit provided by the statutes of this State governing the business of .such companies. It shall be stated in said bond that it is made in pursuance of this section; and any p erson, having a right of action against the fidelity insurance company, surety or bonding company on account of any bond written or act of suretyship assumed in this State by the r etiring company may join the surety on the bond in this sub-section of this section provided for, as defendant upon the obligation of suretyship or inderi::mity of the r etiring company in_like manner as if it w ere a joint obligation or joint surety upon each and every bond or assumption of suretyship made or ex ecuted in this State by said r etiring company. The surety upon 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 cosurety with the r etiring company upon each and all of the obligations assumed upon risks and bonds written in this State.

Third. Or make proof to the insurance comm1sswner of this State that it ,has reinsured all ~fits risks and obliga

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tions, so far as they exist in this State, in some other solvent fidelity insurance company or companies which have complied with the laws 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 with the commissioner a written contract signed by the proper executive officers of su,ch reinsuring company or companies, that it or they have reinsured such risks, and that it ..or they consent to be bound thereon in the manner provided in this law. The reinsuring company may be joined as defendant in any action on any obligation of suretyship or indemnity of the company whose risks have thus been reinsured, and it shall be liable in like manner as if it 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 shall 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 obligations of suretyship or indemnity.]
Acts 1916, p. 129.
2561 (b). Order to treasurer to surrender bonds. [Upon the insurance commissioner being satisfied that the provisions of either of the three subsections of the fore. going section have been complied with, he shall thereupon pass an order reciting compliance and directing 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 sha,ll b.e 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 su'ch company or person duly authorized in writ ing by such company to receive such bonds for it; receipt

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ing 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.]
Acts i916, p . 132.

2561 (c) . Liability. Notice of suit. Judgment. Defense. Subrogation. Reimbursement. [Nothing in this law 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 thereoD until the same shall have been fully discharged and satis fied. If the company which shall have guaranteed or assumed the liability of such r etiring 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 r endered 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 b eing rendered against the company assuming or guaranteeing the liability of the retiring company it shall be subrogated to all the rights of th e company for who se undertaking it shall so have been held liable. Any right. of action for reimbursement which the retiring company would have had if it had b een directly sued and h eld 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 1it might otherwise, either in law or equity, have the right to look for reimbursement, shall survive and may be enforced by a suit brought in the name of such retiring company for the use of the company so held liable.]
Acts 1916, p. 132.

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INSURANCE LAWS.

2562. Amount of bonds must be maintained. When.. ever, by means of the provisions of this Section, the amount of bonds so deposited are reduced, the treasurer shall at once notify the insurance commissioner in writing, who will give notice to the company depositi~g, and require more bonds to be deposited, 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 this State shall be revoked, and the 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 revocat.ion of license, and shall mail 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 law.
A c ts 1896, p. 58. 2424, 2560.
2562 (a). Contracts of suretyship between common carriers and their employees. , [No common carrier author- . ized to do business in this State when r equiring of any employee that he give bond or undertaking of any nature whatsoever shall require as sur~ty thereon any one or more specifi_c or certain bonding company or companies as surety thereon. Provided, however, that nothing herein shall be construed so as to prevent any common carrier from specifying the form or verbiage of such bond.]
Acts 1912, p . 159. 630 (b), P .. C.
2562 (b). Cancellation of bond. [Any such employee who shall have ' given any such bond or undertaking, shall, upon the breach of any of the conditions thereof by the other party or parties thereto, have the power to cancel the same by giving the surety or sureties thereon and the common carrier for the benefit of whom same shall have been made flt least ten days' notice in writing, setting our

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in full the r easons for cancelling same. Any such noticr to a company, corporation or association may be served by leaving the same with any person upon whom service of legal process upon such company, corporation or associa tion may be had. Any surety ort any such bond or under taking shall, upon the breach of any of the conditioi1s ther eof by the common carrier employee for whom same shall have been made have power to. cancel the same by giving such employees at least ten days' notice in writing, setting out in full the reasons for cancelling same, the said notice to be signed by an agent or manager of such surety: Provided, that nothing therein shall* effect any right of action accruing to any p erson upon the breach of a contract.]

SECTION 19.
Suits Against Insurance Companies.
2563. Suits against insurance companies. Whenever any person may have any claim or demand upon any insurance company having agencies, or more than one place of doing business, it shall be lawful for such person to institute suit against said insurance company within the county where the principal office of such company is located, or in any county where said insurance company may have an agent or place of doing business, or in any county where such agent or place of doing business was located at th,~ time the cause of action accrued, or the contract was made out of which said cause of action arose.
A c ts 1861, pp. 58, 59. 1862-3, p. 161. 1878-9, p. 54. 1902, p. 53. 2446, 2258 , 2259, 2553, 2564 (i) .
2564. Service on non-resident, assessment, etc., insurance companies. In all such suits service shall be per-
!This word is "or" in the enrolle d Act. *This word is "effect" ln the enrolled Act.

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INSURANCE LAws.

fected upon such insurance companies by leaving a copy of the petition or writ with the agent of the c<>:mpany, if any. If no agent should be in the county, then at the agency or place of doing business, or where the same was lo cated at the time such cause of action occurred, or the contract made out of which the same arose. In suits upon any certificate or policy issued by non-resident religious or mutual aid societies, co-operative or assessment life insurance companies or societies, service upon the chief executive officer, or the person acting officially for or as such chief executive officer of a local lodge in this State, shall be sufficient service upon such societies or companies-officers of local lodges being hereby declared agents of such non-resident societies or companies, and such local lodges agencies of said companies or societies.
Acts 1890-1, p. 75. 2446, 2258, 2542 , 2874, 2553.

SECTION 19 (a).
Fraternal Benefic:;iary Orders.
[ 2564 (a)-2564 (k) appeared in the Code of 1910 as 2866-2877. 'l'hese sections were moved here for two reasons: First, they properly belong with the law relating to insurance. Second, the Insurance 'Act of 1912 (see 2564 (1) et seq., below) provides that such orders shall be chartered by the secretary of State. This renders improper the classification of 2564 (a)-2564 (k) in Chapter 2, Article 9, of this Title.]
2564 (a). Defined. A fraternal beneficiary order, association, or society is 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

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government and a lodge system, with ritualistic form of work for the meeting of its lodges, chapters, councils, or other designated subordinate bodies, and the benefits, insurance, charity, or relief shall be payable by a grand or supreme body of the same, excepting sick benefits, which may also be paid by local or subordinate bodies. Such grand or supreme bodies may be composed of its officers, incorporators, representatives elected by local, district, or grand bodies, past officers, and s~anding 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.
Acts 1900, p . 71. 2418 , 2564 (p), 2564 (q)-2564 (s). ~ 629, 630, P . C .
2564 (b). Benefits. Such orders or associations may make provision for the payment of benefits in case of death, sickness, temporary or permanent physical disability, either as the r esult 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 r eserve, emergency, or other funds, 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.
2564 (c). Assessments; payments. The fund from which the payment of benefits shall be made, and the fund~ 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 oylaws of such order or association. Payment of death benefits shall be to families, heirs, blood relatives, affianced husband, or affianced wife of, or to persons dependent upon, the member, as may be designated by the member.
2496.

Hl8

INSURANCE LAws.

'

2564 (d). By what law governed. Such orders or as-

sociations shall be governed by this Section, and shall be

exempt from the provisions of the insurance laws of this

State; and no law hereafter passed shall apply to fraternal

beneficiary orders or associations unless it is expressly desig-

nated therein.

2461.

2564 . (e). Existing associations; reports. Any fra. ternal beneficiary order, association, or society of this or any other State, district, province, or territory, now having members, or any lodge, chapter, council or subordinate branch duly established .and organized in this State, may continue ~ts operations and business in this State: Provided, that it hereafter complies with the provisions of this Section regulating annual reports, and the designation of the insurance commissioner as the person upon whom process may be served, as hereinafter provided.

2564 (f). Associations of other States. Any fraternal beneficiary order, association, or society coming within the description as set forth in paragraph 2564 (a), organized under the laws of any other State, province, district, or territory, not now having lodges, councils, or other bpdies 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 that it is authorized to transact business therein as a fraternal beneficiary order or association i. also a duly certifiE)d copy of its charter and articles of association, and a copy of it.=. 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: .
2564 (1), 2564 (ff).

2564 (g). Reports. Every such corporation, society, order, or ,association doing business in this State, shall, on

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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 Qf December immediately preceding, which annual report shall, be in lieu of all other 'reports r~ quired by any other law. Such reports shall be made on blanks provided by the insurance 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 head, entitled "Fraternal Beneficiary Societies."
2458, 2564 (mm).
2564 (h). Reports; failure to make.. Any such order, association, or society refusing or neglecting to make said report to the insurance commissioner shall be excluded from doing business within this St~;tte, and the insurance commissioner shall at once recall and cancel their license.
~ 15.
2564 (i). Service on such associations. See Section 2564 (gg).
2564 (j). Record of suits. 'fhe insurance commissioner shall keep a recor,d 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.
[ 2876 of the Code of 1910, prescribing the license fee for fraternal orders, followed the above section in the Codt:' of 1910. It has been superseded by 2565 (m), 2565 (o). J
2564 (k). Not applicable to certain orders. Nothing in this Section shall be held to affect or to apply to grand or subordinate lodges of Masons, Knights of Pythias, Odd F ellows, Red Men, Junior Order American Mechanics, or similar orders that do not have as their principal object the issuance of benefit certificates to members.
2564 (uu).

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2564 (1). Non-resident fraternal orders. [Fraternal beneficiary societies or organizations chartered :under the laws of other States or foreign governments, except societies which limit their membership to any one hazardous occupation, shall not be allowed to do business in this State with a members4ip 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 this State a certified copy ,of the rates charged on classes of policies being issued by them. Said societies or associations shall stipulate definitely in the face 9f the policy the 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 society or association. No policies shall be issued by such societies or associations without subjecting applicant fot insurance to medical examination.]
Acts 1912, pp. 119. 138. 2499 ( a ), 2564 (f) , 2564 (o) .
2564 (m) . License. [The insurance commissioner is" her eby authorized to in~estigate fully the financial condition of such societies or associations, and if in his judgment, the management or their affairs is not such as to justify the issuance of a license to said society or association, 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 provided for the revocation of license of insurance companies. In the event such societies or associations fully comply with all the r equirements of the laws of this State, they may be licensed to do business in Georgia upon the. payment of a license fee of $40.00.]
Acts 1912, pp. 119. 138. 2415 (a), 2415 (b) , 2565 (o), 2564 (ee). 2564 (ff), 2564 (tt).
2564 (n). Incorpora.tion of domestic fraternal orders. [Domestic fraternal beneficiary .societies or associations

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shall be chartered by the secretary of State, and shall conform to all the r equirements 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.]
Acts 1912, pp. 119, 139. 2388, 2564 (bb) .

2564 (o) . License. Regulation. [When such companies or associations have been duly chartered by the secretary of State and have received a certificate from said officer of their incorporation, upon application to the insurance commissioner, 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. When such societies or associations have obtained not less than 300 bona fid.~ applications for ins'urance, the advance assessments on which have been paid, and a list of the subscripers with their postoffice address 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 company, the insurance commissioner, if satisfied that the character of the officers of such societies or associations 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 $40.00. No policies shall be issued by such societies or associations without subjecting applicants 'to medical examination. The insurance commissioner is hereby authorized to investigate fully the financial conditions of such societies or associations at any time, and if in his judgment the management of the affairs of such society or association is not such as to justify the issuance of the license, he is hereby fully empowered to refuse license to such societies or associations, and in case they have already been licensed such license

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may be revoked, as provided for the revocation of license of insurance companies.]
Acts 1912, pp. 119, 139. 2499 (a), 2415 (a), 2415 (b), 2564 (1), 2564 (m), 2564 (ee) . 2564 (ff).
2564 (p). Form of government. [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 shall be deemed to have a representative form of government when it shall provide in its constitution and laws for a supreme legislative or governing body composed of representatives elected either by the members or by delegates elect ed either directly. or indirectly by the members together, with such other members as may be prescribed by its constitution and laws: Provided, that the elective members shall constitute a majority in number, and have not less than' two-thirds of the vote, nor less than the votes required to amend its constitution and laws. No member of any domestic insurance frat ernity, who is a director or manager of such insurance fraternity, shall have a contract for fees or, premiums from such fraternity.]
Acts 1912, pp. 119, 140. 2564 (s).

SECl'ION 19 (b).
Regulation of Certain Fraternal Benefit Societies.
2564 (q). Fraternal benefit society defined. [Any corporation, society, order or voluntary association, without capital stock, organized and carrie<i 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 payment of benefits, in

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accordance with section 2564 (u), is hereby declared to be a fraternal benefit society.]
Acts 1914, p. 99. 2564 (a).
2564 (r). 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 eaeh month, shall be deemed to be .operated on the lodge system.]
Acts 1914, p. 99. 2564 (a) .
2564 (s). Representative form of government defined. [Any such society shall be deemed to have a representative form of government when it shall provide in its constitution and laws for a supreme legislative or governing body, composed of representatives elected either by the members or by delegates elected directly or indirectly by the members, together with such other members as may be prescrib ed by its constitution and laws; provided, 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 amend its constitution and laws; and provided furth er , that the meetings of the supreme or govern. ing body, and the. election of officers, represe~tatives or delegates shall be h eld as often as once in four years. The members, officers, representatives or delegates of a fraternal benefit society shall not vote by proxy.]
Acts 19,14, p . 99. 2564 (a), 2564 (p).
2564 (t). Exemptions. [Except as herein provided, such societies shall be governed by this Section, and shall be exempt from all provisions of the insurance laws of this State, not only in governmental relation with the State, but

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lNSURAlfCE LAws.

for every other purpose, and no law hereafter enacted shall apply to them, unless they be expressly designated tl!erein.j
Acts 1914, pp. 99, 100.
2564 (u). Benefits.
Acts 1914, pp. 99, 100.
\.
[1. Every society transacting business under this Sec tion 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, shall 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 permanentlly 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 law 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, have the power to a.ccept a part of the 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 readjusted or may hereafter readjust their rate~:~ of contributions, and to contracts affected by such readjustments.
2. Any society which shall show by the annual valuation hereinafter provided for that it is accumulating and maintaining the reserve not lower than the usual reserve

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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 constitu-
tion and laws may provide; provided, that such grants'shall in no case exceed in value the portion of the reserve to th1~ cr~dit of such members to whom they are made.]

2564 (v). Beneficiaries. [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-father, 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 the privilege with the consent of the society to, . make such institution his beneficiary. Within the above restrictions 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 shall have or obtain any vested interest in the said benefit until the same ha~ 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.]
A cts 1914, pp. 99, 101. Amended by Act of August 21, 1917.
2564 (w). Qualifications for membership. [Any society may admit to beneficial membership any person not less 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 such society who shall apply for a certificate providing for disability benefits, need not be required to pass an additional medical examination therefor;

116

INSURANCE LAWS.

nothing herein contained shall prevent such society fro111 accepting general or social members.]
Acts 1914, pp. 99, 101. 2499 (a).
2564 (x). Certificate. [Every certificate issued by any such society shall specify t~e amount of benefit pro. vided thereby, and shall provide that the certificate, the charter or articles of incorporation, or, if a voluntary association, the articles of association, the constitution and law~ of the society and the application for membership and medical examination, signed by the applicant, and all amend. ments, to each thereof, shall constitute the agreement between the society and the memb.er, 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 enforc.ed at the time of the application for membership.]
Acts 1914, pp. 99, 102. 2471.
2564 (y). Funds.
Acts 1914, pp. 99, 102.
[1. Any society may create, maintain, invest, disburse 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, 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 subsection two of section 2564 (u). The funds from which benefits shall be

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117

paid and the funds from which the l~Xpenses of the society shall be defrayed, shall be deriv.ed 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 23rd, 1899, or any higher standard with interest assumptiqn not more than four per cent. per annum, nor shall any such society b.e 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 2564 (nn) 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 p er cent.

2. Deferred payments or installments of claims shall be considered as fixed liabilities on the happ ening of the con- tingency upon which such payments or installment 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 regardless of proposed future collections to meet any such liabilities.]

2564 (z) . 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; provided that any foreign society permitted or seeking to do business in this State, which invests its funds in accordance with the laws of the State in which it is incor

118

INSURANCE LAws.

porated, shall be held to meet the requirements of this law for the investment of funds.]
Acts 1914. pp. 99. 103. 2408.
2564 (aa). 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 expenses, and no part of the money collected for mortuary or disability purposes or the net accretions of either or any of said funds shall be used for expenses.]
Acts 1914. pp. 99, 104.
2564 (bb). 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 law may make and sign (giving their addresses) and acknowledge before sonie_officer competent to take acknowledgment of deeds, articles of incor. poration, in which shall be stated: First, the proposed corporate name ofthe 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 law, provided that any lawful social, intellectual, educational, charitable, benevolent, moral or religious advantages may be set forth among the purposes of the society and 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 society for the first year or until the ensuing election at wh~ch 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 issuance of the permanent certificate. Such articles of incorporation and duly certified copies of

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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 CO)llmissioner, conditioned upo11' the r eturn of the ad,vanced payments as provided in thi;; 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 necessary, and if the purposes of the society conform to the requirements of this law, and all provisions of law have been complied with, the insurance commissioner shall so certify and retain and record, (or file), the articles of incorporation, and furnish the incorporators preliminary certificate authorizing said society to solicit members a,; 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 applic&nt the amount of not less than one regular monthly payment in accordance with its table of rates as prov~ded 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 disability benefit until actual bona fide applications for death benefit certificates have been secured upon at least five hundred lives for at least one thousand dollars each, and all such applicants for death benefits shall have been regularly examined by legally qualified practicing physicians, and certificates of such examinations h~ve been duly filed 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 un -

]20

INSURANCE LAws.

der oath of the 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 contributions, which shall be sufficient to provide for meeting the mortuary obligations contracted, when valued for death benefits upon the basis of the national fraternal congress table of mortality, as adopted by the national fraternal congress August 23rd, 1899, or any higher standard at the option of the society, and for disability benefits by tables based upon reliable 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 applicants have each paid in cash at least one regular monthly payment as herein provided per one .thousand dollars of indemnity to be effected, which payments in the -ag-
gregate shall amou'nt to at least twenty-fi-ve hundred dol-
lars; 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 a.Pd requi:::e such further information as he deems advisable, and, upon presentation of satisfactory evidence that th e ~ociety has complied with all the provisions of law, he shall issue to such society a certificate to that effect. Such certifi<;ate shall be prima facie evidence of the existence of sur:h f:ociety at the date of such certificate. The insurance commissioner shall cause a r ecord of such certifiate to be made and a certified copy of such record may be again
*'fhis word appears in the enrolled Act.

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in evidence with like effect as the original certificate. No prcli;ninary certificate granted under the provisions of this ~ection shall be valid after one year from its date or after such i\rrther period, not exceeding one year, as may be author ir.eu by the insurance commissioner, upon cause shown; unless the five hundred applicants herein required h,ave been s~cured and the organization has been completed as herein prov:d()d; and the articles of incorporation and all proceedings thereunder shall become null and void in one year from the elate of said preliminary certificate, or at the expiration of said extended period, unless such society shall have completed its c;rganization and commenced business as herein providcd. When any domestic society s,hall have discontinued business for the period of one year, or has less than four J:nmdred members, its charter shall become null and void. Every such society shall have the power to make a cons1.itution and by-laws for the government of the society, tl.e ailmission 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 have the power to change, alter, add to or amend such constitution and by.Jaw and shall have such other powers as are necessary and incidental to carrying into effect the obj ects and pmposes of the society.
Acts 1914, PP I 99, 104. 2388, 2564 (n).
~ 2564 ( cc) . Powers retained. Reincorporation. Amendments. [Any society now engaged in transacting business in this State may exercise, after the passage of this law all of the rights conferred thereby, and all of the rights, powers, an;l pri;ileges now exercised or possessed by it under its charter er articles of incorporation not inconsistent with this law. if incorporated: or, if it be a voluntary association, it may incorporate hereunde r~ but no society already organized shall b& required to reincorporate hereunder, and . any ~uch society may amfmd its articles of incorporation from

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INSURANCE Laws.

time to time in the manner provided therein or in its constitution ~ nd laws, and all such amendments shall be filed with the insurance commissioner and shall become operati ;'e upon such filing, unless a later time b e provided in such amendments or in its articles of incorporation, constitution or laws.j
Acts 1914, pp. 99, 107.
2564 (dd). Mergers and transfers. [No domestic soeiety hall merge with or accept the transfer of the membership Ol' funds of any other society unless such merger or t~ansfer is evidenced hy a contract in writing setting out ~ full. the terms and conditions of such merger or transfer, an! filed with the insurance commissioner of this State, to. gether with a sworn statement of the financial condition of each of said societies, by its president and secretary, or corresponding officers, and a certificat e of such officers, duly, verified under oath of said officers of each of the contractin~ societies, that such merger or transfer has been approvefl by a vote of two-thirds of the members of the supreme legislative or governing body of each of said societie;:;. Upon the submission of said contract, financial statements and certificate, the insurance commissioner shaH examine the same, and, if he shall find such financial statements to be correct and the said contract to be in confor mity >vith the provisions of this section, and .that such merger or transfer is just and equitable to the members of each of said societies, he shall approve said merger or transfer. is;;ue his certificate to that effect and thereupon the said contract of mer ger or transfer shall be of full force and effect. In case such contract is not approved, the fact of its submi ssi on and its contents shall not b e disclosed by the insuranc'l commissioner.]
Acts 1914, pp. 99, 108.
2564 (ee) . Annual license. [Societies which are now authorized to transact business in this State may continue sneh business until the first day of April next succeeding the

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passage C~f this law, and the authority of. such societies may thereafter be renewed annually; but m all cases to terminate on the first day of the succeeding April; provided, however, the license shall continue in full force and effect until the new license be issued or specifically refu~ e d. For each such license or renewal the society shall pay the commissiqner of insurance forty dollars. A duly c~rtified copy or duplicate of such license shall be prima facie evidence that _the license is a fraternal benefit society within the meaning of this law.]
Acts 1914, pp. 99, 108. 2564 (m), 2564 (o).
~ 2564 (ff). Admission of foreign society. [No foreign ~ociety now transacting business, organized prior to the passage of this law, which is not now authorized to t1a ns1:1et business in this State, shall tr.ansact any business herei n \vithout a license from the insurance commissioner. Any such society shall be entitled to a license to transact business within this State upon filing with _the commissioner a duly certified copy of its charter or articles of association; a copy of its constitution and laws, certified by its secretary or corresp'onding officer; a power of attorney to the eonnnissioner as hereinafter provided; a statement of its businrss under oath of its president and secretary, or corr;Jsponding officers, in the form required by the commissioner, duly verified by an examination made by the supervisin~ insurance official of its home State or other State satisfactory to the commissioner of insurance of this State, a <,ertii'if,ate from the proper official in its home State, provinee or country, that the society is legally organized; a copy of its contract which must show that benefits are provided for by periodical, or other payments by persons hol<ling similar contracts; and upon furnishing the commissioner such other information as he may deem necessary to a proper exhibit of its business and plan of working, and upon &howing that its assets are invested in accordance with the laws of the State, territory, district, province or

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INSURANCE LAWS.

country where it is organized, he shall issue a license to sneh society to do business in this State until the first day of th,J succeeding April, and such license shall, upon compliance with the provisions of this law, be renewed annually. but in &.ll cases to terminate on the first day of the suceed-
ing April; provided, however , that license shall continue in fnll force and effect and until the new license be issued or
specifically r efused. Any foreign society desiring admissivn tc) this State shall have the qualifications required of domestic societies organized under this law, upon a valuation hy any one of the standards authorized in section 2564 (nn), and have its assets invested as required by the laws, of the ~tate, territory, district, country, or province where it is organized. For each such license or renewal the society shall pay the commissioner twenty dollars. When the commissioner r efuses to license any society, or revoke its authority t0 do business in this State, h e 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 r eason, to the officers of the society, upon r equest, and the action of the commissioner shall be revi ewable by proper proceedings in any court of competent JUrisdiction within the State; provided, however, that nothing contained in this or the preceding section shall be taken or construed as preventing any such society from continuing in good faith all contracts made in this State the time such society was legally authorized to transact business herein.]
Acts 1914, pp. 99, 109. 2564 (f), 2564 (m), 2564 (o).
2564 (gg). Power of attorney and service of nTilMliiiL;
[Rvf.' r,v society, whether domestic or foreign, now transacting busin ess in this State, shall, within thirty days after the passage of this law, and every such society hereafter applying for admission, shall, before being licensed, in writing the insurance commissioner and his successors offiee to be its true and lawful attorney, upon whom

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legal process in any action or proceeding against it shall be served, and in snch writing shall agree that any lawful process against it which is served upon such attorney shall be of the same legal force and validity as if served upon the soeiety 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 dupllcate upon the insurance commissioner, or, in his absence upon the person in charge of his office and shall be deemed 5~1ffi,;ient 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 file its answer, pl eading 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 procrss shall not be served upon any such society except in the manner provided herein.]
Acts 1914, pp. 99. 110. 2564 (i).
2564 (hh). Place of meeting. Location of office.
fAny 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 subordinate branches, and all business transacted at such meetings shall be as valid in all r espec)ts as if such meetings were held in this State; but its principal office shall be located in this st'ate.]
Acts 1914. pp, 99, 111.
2564 (ii). No personal liability. [Officers and members of the supreme, grand or any subordinate body of any

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INSURANCE LAws.

such incorporated society shall not be individually liable for the payment of any disability or death benefit provided for in the laws and agreements of such soiciety; but the same shall be payable only out of the funds of such society and in the manner pr1ovided by its laws.
Acts 1914. pp. 99, 111.
2564 (jj). 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 b eneficiarie ~ of members.]
Acts 1914, pp. 99, 112.
2564 (kk). Benefit non-attachable. [No money or other benefit, charity or r elief or aid to be paid, provided or rendered by any such society shall be liable to attachment, garnishment or other process, 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 thereunder, either before or after payment.]
Acts 1914, pp. 99, 112.
2564 (ll). Constitution and laws. LAmendment. [Every society transacting business under this law 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 Printed copies of the constitution and laws as changed or added to, certified by the secretary or sponding officer of the society, shall be prima facie oHT1lrlt>,nl>,..'' of the legal adoption thereof.]
Acts 1914, pp. 99, 112.
2564 (mm). Annual report. [Every society acting 'business in this State shall annually, the first day of March, fil e with the insurnce cuiurull~S"vJJ,.,.,~

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127

such form as he may require, a statement under oath of litns president and secre:ary or corre~pond.'m'g off"1cers of its condition and standmg on the th1rty-f1rst 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 commissioner may d eem 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 society. In addition to the annual report herein required, each society shall annually r eport to the commissi-oner 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 liabilities, the present mid-year value of the promised benefits, provided in the constitution and laws of such society under certificates then subject to valuation; and as contingent assets, the present mid-year value of the future n et 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 year s. Such valuation shall be certified by a co:r:npetent 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, ~xcept for disability bene-

128

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fits, shall be the national fraternal Mngress.* Tables of mortality as adopted by the national 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 tho,usand lives with interest assumption not more than four per centum per annum. Each such valuation r eport shall set forth clearly and fully the mortality and interest basis and the method of valuation. Any society providing for disability benefits shall keep the net contributions for such benefits in a fund separate and apart from all other benefits and expense funds and the valuation of all other business of the society; provided, 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 funds shall not be required. The valuation herein provided for shall not be considered or regarded as a test of the financial solvency of the society, but each society shall be held to be legally solvent so long as the funds in its possession are equal to or in excess of its matured liabilities. Beginning with the year 1914 a r eport of such valuation and an explanation of the facts concerning the conditions 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 sa;me 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 all matured death and disability claims in full, and to provide for the creation and maintenance of the funds required by its laws, additional, increased or extra rates of contribution shall be collected from the
*The sentence ends thus in- the enrolled Act.

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129

members to meet such deficiency; and such laws may provide that, upon t_he written application or consent of the member, his certificate may be charged with its proportion -of any deficiency disclosed by valuation, with interest not -exceeding five per centum per annum.]
Acts 1914, PP- 99, 112. 2564 (g).
2564 (nn). Provisions to insure future security. [If the valuation of the certificates, as hereinb efore provided, on :December 31, 1917, shall s~ow that the present value of futurr net contributions together with the admitted assets is less than thP. present value of the promised benefits, and accrued liabilities such society shall thereafter maintain said financial condition at each succeeding triennial valuation in r espect 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 thereafter comply with the r equirements herein specified. If the n ext succeeding triennial valuation, after the :receipt of such notice shall shqw that the society has failed to maintain the condition requir.ed herein, the commissioner may in the absence of good cause shown for such failure, institute proceedings for the dissolution of such society, in accordance w:ith the provisions of section 2564 (pp), or in the case of a foreign society, its license may be cancelled in the manner provided in this law. .Any such society shown by any triennial valuation, subsequent to December 31st, 1917, not to l1ave maintained the condition herein r equir ed, shall, within two years therefter, make 'such improvement as to show a percentage of deficiency not greater than as of December. 31st, 1917, or thereafter as to all new members admitted be suhject so far as stated rates of contribution are concerned to the provisions of section 2564 (bb), applicable in the organization of new societies; provided th~t the net mortuary or beneficiary contributions and funds of such new members shall be kept separate and apart fr_om the

130

INSURANCE L.A.ws.

other funds of the society. If such required improvement is not shown by the succeeding triennial valuation, then the said new members may be placed in a separate class and their certificates v'alued as an independent society in respect of contributions and funds.]
Acts 1914, pp. 99, 114.
2564 (oo). Provisions in lieu of requirements of two preceding sections. [In lieu of the requirements of sections 2564 (mm) and 2564 (nn), any society accepting in its laws the provisions of this section may .value its certificates on a basis, herein designated ''accumulation basis'' by crediting each member with the net amount c.ontributed 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 balance, 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 shares of losses for any year exceeds his credit including the contribution 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 contributions especiaJly created or required for such purposes. Any member may transfer to any plan adopted by the society with n et rates on which tabular reserves are maintained and on such transfer shall be entitled to make such application of his credit as provided in the laws of the society. Certificates issued rerated, or
I

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131

readjusted on a basis providing for adequate rates with adequate reserves, to mature such certificates upon assumptions for mortality and interest :recognized by the law of this State shall be valued on such basis, herein designated as the ''tabular basis,'' provided that if on the first valuation under this 1 section a_ deficiency in reserve shall be shOwn for any such certificate, the same shall be valued onthe accumulation basis: Whenever in any society having members upon the tabular 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 the year, the deficiency shall be met for the year from the available funds after setting aside all credits in the rel!lerve 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 losses may be returned in like manner as may be specified in its laws. 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 a~d the required reserve accumulation of such class so set apart shall not ther eafter be mingled with the assets of other classes of the society. A table showing the credits to individual members for each age and year of entry and showing oppo. site each credit the tabular reserve required op. the whole life or other plan of insurance specified in the contract, according to assumptions for mortality and interest recognized 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 each 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 ahd giving the tabular reserve and level rate required for a transfer carrying out

I'

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INSURANCE LAws.

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 basis. For this purpose, indi.

vidual bookkeeping accounts for each member shall not be

r equired and all calculations may be made by actuarial

methods. Nothing herein contained shall prevent the main-

tenance of such surplus over and above the credits on the

accumulation basis and the reserves on the tabular basis

a~ the society may p'rovide by or pursuant to its laws; nor

be construed as giving to the individual member any right

or .claim to any such reserve or credit other than in manner

as expressed in the contract and its laws. nor as making

. any such r eserve or credits a liability in determining the

legal solvency of the society.]



Acts 1914, pp. 99, 115.

2564 (pp). Examination of domestic societies.

[The insurance commissioner, or any person he may appoint

shall have the power of visitation and e,xamination into

the affairs of any domestic society. He niay employ assis-

tants for the purpose of such examination, and he, or any

per,gon he may appoint shall have free access to all the

, books, paper,s and documents that relate to the business of

the society and may summon and qualify as witness undet"

oath and examine its officers, agents and employees or

other persons in r elation to the affairs, transactions and

condition of the society. The expens~ of such, examination

shall be paid by t.he society examined, upon statement

furnish ed by the insurance commissioner and the examina,..

tion shall be made at least once in three years. Whenever

after examination the insurance commissioner is satisfied

that any domestic society has failed to comply with any

provisions of this law, 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 mem-

bership of less than 400 (or shall determine to discontinue

business) the insurance commissioner may present the facts

INSURANCE LAws.

133

r elating thereto to the attorney-general who shall, if h e

deem the circumstances warrant, commen ce an action in

quo warr anto in a court of competent jurisdiction and such'

court shall thereupon notify the officers of such society

of a hearing, 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 take

possession of the books, p apers, moneys and other assets

of the society and shall forthwith, under the direction of

th e court, proceed to close the affairs of the society and

distribute its funds to those entitled t h ereto. No such pro-

ceedings shall be coml;llenced by the attorney-general

against any such societ y until after notice has been duly

served on the chief executive officers of th e society and a

reasonable opportunity given to it, on a date to be named

in said notice, to show cause why such proceedings shoulll

not be commenced. ]

Acts 1 ~14. pp. 99, 118.

.

2412 (f), 2433, 2_442 (a), 2442 (g), 2564 (qq), 2564 (rr), 2564 (ss).

2564 (qq). 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 b e entertained by: any court in t his State unless the same is made by the attor. n ey-general.]
Acts 1914 . pp. 99, 119. 2564 (pp) .

2564 (rr.) Examination of foreign societies. 'fhe insurance commissioner or any person whom he may appoint may examine any foreign society transacting or applying for admission to transact business in this State. The said commissioner may employ assistant and he or any person he may appoint shall have free access to all the books, papers and documents that relate to the business of the society and may summon and qualify as witness under oath and examin ~) its officers, agents and employees and other persons in r ela-

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INSURANCE LAws.

tion 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 expenses of examiners making any such examintion shall be paid by the society upon state-(ment) furnished by the insurance commis. sioner. If any such society' or its officers refuse to submit to such examination or to comply with the .provisions of the s~ction relative thereto, the authority of such society to write new business in this t shall be suspended or license refused until satisfactory evidence is furnished the commisioner relating to the conditions and affairs of the society and during such suspension the society shall not write new business in this State.
Acts 1914. pp. 99, 119. '* 2412 (f)'; 2433, 2564 (pp), 2564 (ss).
- 2564 (ss). No adverse publication. [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 statement report or findng affectig 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.
Acts 1914, pp, 99, 119.
2564 (tt). Revocation of license. [When the insurance commissoner on investigation is satisfied that any foreign society transactng business under this law has exceeded its powers, or has failed to comply with any provisions of this law, or is conducting business fraudu-
*This syllable does not appear in the enrolled Act. tThe word "State" was doubtless intended to go here. It does not appear, however, in the enrolled Act.

INSURANCE LAWS.

135

lently, 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 require 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 revoke the authority of the society to contillue 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 2564 (ff).]
Acts 1914, pp. 99, 120. 2415 (b), 2564 (m), 2564 . (o).
2564 (uu). 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 United American Mechanics, (exclusive of the beneficiary degree or insurance branch of the national council Junior Order United American Mechanics) or so cieties which limit their membership to any one hazardous occupation, nor to similar societies which do not issue insurance certificates, nor to an association of local 'lodges 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 ~n any one year to any one person, or'both, nor to any contracts of reinsurance business on such plan in this State, nor to domestic societies which limit their membership to the employees of a particular city' or town, -designated firm. bu.siness house, or corporation, nor to domestic lodges, orders or associations of a purely religious, charit-

136

INSURANCE LAws.

able and benevolent description, which do not provide fm a death benefit of more than one hundred dollars or for disability benefits of more than one hundred and fifty dollars to any one person in any one year. The insurance commissioner may r equire from any society such information as will en able him to determine whether such society is exempt from the provisions of t his la''f Any fraternal benefit society, h eretofore organized and incorporated and operating within the definition set forth in sections 2564 (q), 2564 (r), and 25 64 (s), 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 under the provisions of this law, and shall have all the privileges and shall be subject to all the pro. visions and regulations of this law except that the provisions of this law requiring medical examinations, valuations, of benefit certificat es, and that the certificate shall specify the amount of benefits, shall not apply to such society.]
Acts 1914, pp. 99, 120. , ~ 2564 (k).
2564 (vv) . Taxation. [Every fraternal b enefit society organized or licensed under this law is hereby declared to be a charit abl ~ and benevolent i~stitution, and all of its funds shall be exempt from all and every State, county, district, municipal and school tax, other than taxes on real estate and office equipment.]
Acts 1914, pp . 99, 121. 998, 6554, 6556.
2564 (ww). P enalties. [Any person, officer member or examining physician of any society authorized to do business under this law, who shall knowin gly or willfully make any false or fraudulent statement or r epresentation in or with r eference to any application for membership, or for tl~e purpose of obtaining money from or b enefit in any society transacting business under this law, shall be guilty of misdemeanor, and upon conviction thereof shall be punished by a fine of not less than one hundred dollars

INSURANCE LAws.

137

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 any

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 declara-

tion under oath r equired or authorized by this law, shall

be guilty of perjury, and shall be proceeded against and

punished as provided by the statutes of this State in rela-

ti on to the crime of perjury. Any person, who shall solicit

membership for, or in any manner assist in procuring mem-

ber ship in any fraternal benefit society not licensed to do

business in this State, or who shall solicit memb ership for,

or in any manner assist in procuring membership in any

snr.h society not author ized as herein provided, to do busi-

ness as herein defined in this State, shall b e guilty of a mis-

demcanoY and upon conviction ther eof shall be punished by .

a fine of not less than fifty nor more than two hundred

dolbrs. Any society, or any officer, agent or employee

thereof, neglecting or refusing to comply with or violating

any of the provisions of this law, the penalty for which

neglect, refusal or violation is no't specified in this section,

shall be fined not exceeding two hundred dollars upon

conviction thereof.]

Acts 1914, pp. 99, 121. 259, 260, 630 (a), ,P. C .
\
I
2564 (xx). Applicable to what societies.

[The pro-

visions of this law shall not apply to fraternal benefit

societies whose membership does not exceed five thousand

members, and all societies writing insurance for the em-

ployees of the Federal government and public utility com-

panies shall come within the provisions of this law.]

Acts 1914. pp. 99, 122. See note to 2564 (bb).

138

INSURANCE LAws.

2564 (yy). Rules and regulations by inslirance com. missioner. [All such societies and organizations as are men. tioned in this .law shall be subject to such rules and regu. lation as may be prescribed by the insurance commissioner of the State.]
Acts 1914, pp . 99, 123.

FRATERNAL BENEFIT SOCIETIES; BENEFITS -
An Act to provide upon what conditions, and how, and in what manner foreign and domestic fraternal benefit societies can issue benefit certificates to persons less than sixte.en years of age and to others, and for oth!lr purposes.
Sec~ion 1. Be it enacted by the General Assembly of the State of Georgia, and it is hereby enacted by authority o{ the same, That, any fraternal benefit society may issue to persons under sixteen years of age benefit bertificates, provided such persons are related to a member of said society as son, d'aughte!, ward, step-son, step-daughter or shall be dependent upon a member; provided, however, the amount of death benefit payable under the terms of such benefit certificate may be made to increase as the years of, the assured increase, and provided, further, that no benefit certificate shall be issued wherein the death benefit payable shall exceed the sums specified in the following table, the ages therein specified being the ages at time of death:
Between the ages of 1 and 2 years ________$ 35.00
Between the ages of 2 and 3 Y!=lars________ 39.00
Between the ages of 3 and. 4 years________ 45.00 Between the ages of 4 and 5 years________ 50.00

lNSURANOE LAWS.

139

Between the ages of 5 and 6 years________ 60.00
Between the ages of 6 and 7 years________ 150.00
Between the ages of 7 and 8 years________ 175.00
Between the ages of 8 and 9 years________ 200.00
Between the ages of 9 and 10 yel).rs ____ ..:___ 250.00
Between the ages of 10 and 11 years________ 350.00
Between the ages of 11 and 12 years_ _______ 380.00
Between the ages. of 12 and 13 year8________ 460.00
Between the ages of 13 and 14 years_____ ___ 600.00
Between the ages of 14 and 16 years________ 1000.00
Sec. 2. Be it further ena~ted, That the periodical dues
or premiums charged for the benefits in such certificates of membership must be based upon some recognized mortality table the premium in which is not less than the National Fraternal Congress Tables of Mortality and an interest assumption of four percentum per annum, or upon a table of the actual experience of at least twenty years of any similar society compiled from a membership of not less than one hundred thousand members.
Sec. 3. Be it further enacted, That any fraternal benefit society now operating in this State or that may hereafter seek admission to do business in this State may issue benefit certificates to its members in accordance with its laws providing for the establishments of its membership into divisions and classes of the same age of entry, and may provide in it laws and certificates for the payments of benefits from special funds created for such purpo~es to the oldest membership of a division and class upon the death of a member in the same division and class.
Sec. 4. Be it further enacted, That the periodical dues or premium charges for such benefits shall be based upon

140

lNSURANCB LAWS.

the National Fraternal Congress Tables of Mortality and 11 four p er centum per annum int~rest assumption, or upon .some higher standard. 'l'he method . of determining the dues or premium charges shall be the joint life plan at oqual a ges, and shall be so computed that each member's dn es or premium charges shall be based upon the exact amount of death benefit which the membership( certificate provides shall be payable to the legal beneficiaries named jn such certificate in event of the death of the m~mber and the other benefits provided for in the certificates of membership.
Sec. 5. Be it urther enacted, That all laws and parts of laws in conflict with this Act be and the same are hereby rPpealed.
Approved August 20, 1917.

I~'RATERNAL BENEFIT SOCIETIES; PAYMENTS - -
An Act to amend section 6 of an Act entitled ''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, which Act was approved August 17th, 1914, so that section 6 shall, when amended, read as follows: ,'Section 6. Beneficiaries. The payment of death benefits shall be confined to wife, husband, relative by blood to the fourth degree, father-in-law, motherin-law, son-in-law, daughter-in-law, step-father, stepmother, step-children, children by legal adoption, or to a person or persons dependent upon the member; provi'ded, that. if after the issuance of the original certificate the member shall become dependent upon an iueorporated charitable institution he shall have the

INSURANCE LAWS.

141

privilege with the consent of the society to make such institution his beneficiary. Within the above restrictions 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 shall have or obtain any invested 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 b enefici'aries within the above classes; provided, however, this s~ction shall not be construed as prohibiting the payment by . such society of any benefit or benefits to other memb ers of' the society in good standing when the said benefit or benefits are provided for in the policies or certificates of such society.''
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 6 of an Act eJ].titled ''An Act fo.r the regulation and control of all fraternal benefit societ ies; 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, which Act was approved August 17th, 1914, be and the same is amended by adding to said section the following: ''provided, however, this section shall not be construed as prohibiting the payment by such society of any benefit or benefits to other members of the society in good standing when the said benefit or benefits are provided for in the policies or certificates of such society," so that said section shall, when amended, read as follows: ''Section 6. Beneficiaries. The payment of death benefits shall b'e confined to wife, husband, relative by blood to the fourth degree, father-in-law, motherin-law, son-in-law, daughter-in-law, step-father, step-mother, step-children, children by legal adoption, or to a person or persons dependent upon the member; provided that if

142

INSURANCE LAws.

after the issuance of the original certificate the member shall become dependent upon an incorporated charitable institution, he shall have the privilege with the consent of the society to make such institution his beneficiary. Within the above restrictions each member shall have the right to designate his beneficiary, and, from time to time, have the same changed in accordance with the la~s, rules or regulations of the society, and no beneficiary shall have or obtain any vested interest in the said benefit until the same has become due and p~yable upon the death of the said member
provided, that any society may, by its laws, limit the scope'
of beneficiar!gs within the above classe~; provided, however, this section shall not be construed as prohibiting the payment by such society of any benefit or benefits to other members of the society in good standing when the said benefit or benefits are provided for in the policies or certificates of such society."
Sec. 2. Be it further enaceted, That all laws and parts of laws in conflict with this Act be and the same are hereby repealed.
Approved August 21, 1917.

INSURANCE LAWS.

143

CASUALTY AND LIABILITY INSURANCE COMPANIES.

No. 761.

An Act to further regulate casualty and liability insur. ance companies, and for computing reserves for liability and workmen's compensation insurance. .

B e it enacted by the General Assembly 6f the State of Georgia and it is hereby enacted by authority of the same, that from and after the pa:ssage of this Act the reserve for compensation and liability insurance required by law of domestic insurance companies shall be computed according to the provisions of the following paragraphs:

Section 1. The reserve for outstanding losses un-

der insurance against loss or damage from accident to Reserve

or injuries suffered by an employee or other person and

for outstanding

for which the insured is liable shall be computed as losses.

follows:

(1) For all liability suits being defended under poli-

Computa-

cies written more than

tion.

(a) Ten years prior to the date as of which the statement is made, one thousand five hundred dollars for each suit.

(b) Five and less than ten years prior to the date as of which the statement is made, one thousand dollars for each suit.

(c) Three and less than five years prior to the date as of which the statement is made, eight hundred and fifty dollars for ea<:h suit.

/

i44

INSURANCE LAws.

Liabillty policies.

(2) For all liability policies written during the thre

years immediately statement is made,

preceding the date such reserve shall

as be

of which sixty per

ctehn~e

tum of the earned liability premiums of each of such

three years less all loss and loss expense payments

made under liability policies written in the correspondi~g years; but in any event, such reserve shall, for the

fust of such three years, be not less than seven

died and fifty dollars, for each outstanding

suit on sai9, year's policies.

Compensation clalims.

(3) For all compensation claims under policies wri ten more than three years prior to the date as of which . the statement is made, the present values at four per centum interest of the determined and estimated future payments.

(4) For all compensation claims under policies written the three years immediately preceding the date as of which the statement is made, such reserve shall be sixty-five per centum of the earned compensation premiums of each of such three years, less all loss and loss expense payments made in connection with such claims under policies written in the corresponding years; but in any event in the case of the first year of any such three-year period such reserve shall not be less than the present value at four per centum interest of the determined and the estimated unpaid compensation claims under policies written during such year; provided, however, that in computing the reserve for the statement for December 31st, 1919, and December 31st, 1920, the ratios sixty per centum and sixty-two and onehalf per centum respectively shall be used instead of
0
sixty-'five per centum as hereinbefore provided.

Sec. 2. The term ''earned premiums,'' as used

"Earnetl pnemiurns"

herein shall include gross premiums charged on all pol-

defined. icies written, including all determined excess and addi-

INSURANCE LAws.

145

tional premiums, less return premiums, other than premiums returned to policy holders as dividends, and less reinsurance premiums and premiums on policies cancelled, and less unearned premiums on policies in force. But any participating company which has charged in its premiums a loading solely of dividends shall not be required to include such loading in its earned premiums, provided a statement of the amount of such loading has been filed and approved by the Insurance Commissioner.

The term compensation as used in this Act, shall

relate to all insurances effected by virtue of statutes ''Compensa-

providing compensation to

employees for

personal in-

tion" ed.

defin-

juries irrespective of fault of the employer. The term

"liability" shall relate to all insurance except compen-

sation insurance against loss or damage from accident

to or injuries suffered by an employee or other per-

son and for w}lich the insured is liable.

The terms "lo:;;s payments" and "loss expense pay-

ments '' as herein used shall include all

payments

to "Loss payments" and'

claimants, including payments for medical and surgical "loss ex-

pense pay-

attendance, legal expenses, salaries and expenses of ments" de-

investigators, adjusters, and field men, rents, station- fined.

ery, telegraph and telephone charges, postage, salaries

and expenses of office employees, home offiee ex-

peruses, and all other payments made on account of

claims, whether such payments shall be allocated to

specific claims or unallocated.

Sec. 3. All unallocated li'ability loss expense payments made .in a given calendar year subsequent to the first four years in which an insurer has been issuing liability policies, shall be distributed as follows: 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, ten per centum to the poli-

Distribution of unallocated liabilItY loss expense payments.

146

INSURANCE LAWS.

cies written in the second preceding year, ten per cen-

\

tum to the, policies written in the third preceding year

and five per centum to the policies written in the fourth

year preceding, and such payments made in each of

the first four calendar years in which an insurer is-

sued liability policies shall be distributed as follows.

In the first calendar year one hundred per centum shali

be charged to the policies written in that year, in the

second calendar year fifty per centum shall be charged

to the policies written in that year and fifty per cen-

tum to the policies written in the preceding year, in the

third 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 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 preced-

ing year, fifteen per centum to the policies wri~ ha

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

m the annual statement.

All unallocated compensation loss payments made in

Unallocated a given calendar year subsequent to the first three

compensation loss

.years

in which an insurer has been issuing compensa-

payments. tion policies shall be distributed as follows: Forty

per centum shall be charged to the policies written in

that year, forty-five per centum to the policies writ-

ten in the preceding year, ten per centum to the poli-

cies written in the second year preceding and five per

centum to the policies written in the third year pre-

ceding, and such payments made in each of the first

three calendar years in which an insurer issues com-

pensation policies shall be distributed as follows: In

the first calendar year one hundred per centum shall

lNSURANOE LAws.

147

be charged to the policies written in that year, in the

second year fifty per centum shall be charged to the

policies written in that year and fifty per centum to

the policies written in the :greceding year, in the third

calendar year forty-five per centum shall be charged to

the policies written in that year, forty-five per centum

to the policies writt('(n in the ,preceding year and ten per centum to the policies written in the second year preceding, and schedule showing such distribution

-.

shall be included in the annual statement.

Whenever in the judgment of the I~surance Commissioner, the liability or compensation loss reserves o'f Additional any insured under his supervision, calculated in accord- reserves. ance with the foregoing provisions, are inadequate, he may, in his discretion, require such insurer to main~ tain additional reserves based upon estimated individ-
ual claims or otherwise.

Sec. 4. Each insurer that writes liability or compensation policies shall include in the annual statement required by law a schedule of its experience thereunder in such form as the Insurance Commissioner .may prescribe.

Schedule of experience.

Sec. 5. On all policies of casualty insurance in force

and written for one year or less, there shall be main- Unearned

tained the unearned premium reserve of fifty per cen-

premium reserve.

tum of the current year's premium; on all such policies

in force and written ,for more than one year there shall

be maintained an unearned premium reserve of fifty

per centum of the current year's premium, plus the en-

tire premium for subsequent years, provided, such un-

earned premium reserve may be reduced by the amount

of unearned commissions on premiums not mo-re than

ninety days past due, which premiums are due from

agent, or agencies whose accounts with the Insurance

148

INSURANCE LAws.

Company are secured by bonds executed by companies licensed to do business in this State.
Sec. 6./ Be it further enacted by the authority aforeAct of 1911 . said, That the Act entitled "An Act to further regulate repealed. Casualty Insurance Companies and for other purposes"
approved August 22nd, 1911, and all . other laws arH] parts of laws in conflict with this Act be, and -the sa rrw are hereby repealed.
Approved August i7, 1$)20.

INSURANCE LAws.

149

DEPOSITS BY LIFE INSURANCE COMPANIES.
No. 763.
A n Act to provide the amount of deposit to be made by Life Insurance Companies not now authorized to ao business in this State, as-a condition precedent to being licensed to transact business in this State; to provide for increases in .the amount of the deposit of such companies doing business in this State and 'whose deposit is less than One Hundred Thousand Dollars ($100,000.00); to make this Act applicable to Indus- trial Life Insurance Companies, 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 no life insurance company chartered, or which may hereafter be chartered, by the State of Georgia, whether organized on the mutual or the stock plan, and which is not now authorized to transact business in this State, shall be so authorized or licensed, until such company Deposit. has deposited with the Treasurer of this State securities, deemed by the _Insurance Commissioner of this State to be equivalent of cash, in an amount of not less than One Hundred Thousand Dollars ($100,000.00), as a Amount. guaranty fund for its policyholde~s, and no such company organized, or which may hereafter be organized, under the laws of any State of this Union, or foreign State, and not now authorized to do business in this State shall be authorized or licensed to transact the

150

INSURANCE LAWS.

business of insurance in this State-until it has produced

evidence satisfactory to 'the Insurance Commissioner

of Georgia, that it has on deposit in the State in which

it is chartered or organize<:l, with the proper officer

Non-resi- thereof, One Hundred Thousand ($100,000.00) Dollars

dent companies.

in such securities as may be deemed by such officer' equivalent to c~sh, subject to his- order, as a guarant;

fund for the security of policyholders, provided, how-

ever, tliat such non~resident insurance company may

make deposit with the Treasurer of Georgia, instead of

in the State of its organizatipn, should it elect to do so.

Annual increases.

Sec. 2. Be it further enacted, That all life insurance companies now authorized to transact the business of life insurance in this State whose deposit is less than One Hundred Thousand Dollars ($100,000.00), shall annually, on or before the 31st day of December of each year, increase its deposit in an amount, not less than 10 per cent of the amount or deposit which it is required to have under existing laws, until its deposit aggregates not less than One Hundred Thousand ($100,000.00) Dollars.

Effective January 1, 1921.

Sec. 3. Be it further enacted, That the provisions of this Act shall apply to industrial life insurance companies in the same manner as to other life insurance companies, provided such Act shall take effect January 1st, 1921.

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 August 17, 1920.

I

- iNSURANCE LAws.

151

TAX BASIS AND RATE.

Section 6, General Tax Act of 1918, as Amended by Act of 1919, Page 54.

6. Insurance companies. Be it further enacted by

the authority aforesaid, That all foreign and home insur-

ance companies doing business in this State shall pay one

and one-half per cent. of all premiums, in money or other

wise received by them, upon the gross receipts of such

insurance companies on business done in the State fot'

\'

the year; Provided, this shall not include return premiums

on cancelled policies.

2nd. That every insurance company incorporated under the laws of this State and doing business on the legal reserve plan, shall be required to return for taxation all of its real estate as other real estate is returned, and all of the personal property owned by it shall be ascertained in the following manner : From the total value of the assets held by the company, both real and personal, shall be deducted the assessed value of all real estate owned by the company in this State, the non-taxable funds deposited by the company with the State Treasury, and the amount of the reserve or net value of the policies required by law to be held by the company for its policy-holders and which belong to such policy-holders; the remainder shall be the value of the personal property owned by and taxable against such companiess. -

3rd. That whenever any Insurance Company doing business in this State shall make it appear by proof to the Insurance Commissioner that one-fourth of the total assets are invested in any or' all of the following securities or prop1erty, to-wit: Bonds of this State, or of any County 01 Municipality of this State, property situated in this State and taxable therein, loans secured by liens on real estate

152

INSURANCE LAws.

situated in this State, or policy loans by insurance policies issued by such company on lives of persons resident of this State, then the premium tax levied by the first paragraph of this section shall be abated or reduced to one per centum upon the gross receipts of su ch company, and if the amounts so invest ed by any such company shall be as much as three-fourths of the total assets of such company, then said premium t ax shall be abated or reduced to one-fourth of on1J per centum upon such gross r eceipts of such company.

INSURANCE LAWS.

153

GEORGI A WORK ME N'S COMPE-NSATION ACT.

INDUSTRIAL AcciDENTS; C01vnvn ssroN CREATED; CoMPENSATION OF I NJURED EMPLO\'EES.

No. 814.

An Act to p r event industrial accidents ; to provide medical and surgical car e f or injured employees ; to establish r ates of compensation for per sonal injuries or deaths sustained by employees in the course of employment; to provide methods for insuring the paymen t of such compensation ; t o creat e an Industrial Commission for the administration of this Act, and to prescribe the powers and duties of such commission, and for other purposes.

Section 1. B e it enacted by the General Assembly of the Sta t e of Georgia, and it is hereby ena cted by Title. the authority of the same, that this Act .shaH be known as the Georgia Wo rlnnen 's Compensation Act.

Sec. 2. Be it further enacted, That in this Act, unless the context otherwise requires :
I

(a) ''Employers '' sha:ll include any municipal cor-

poration

within

the

S ta t e,

and

any

political

division

"Employe r " de fin e d.

thereof, and any individual, firm, association or corpo

ration engaged in any business operated for gain or

profit, except as hereinafter excepted, and the receiver

or trustee of the same, and the l egal r epr esentative of a

deceased employer , using the service of another for pay.

If the employer is insured, it shall include his insurer

so far as applicable.

(b) "Employee" shall include every person, including

a minor, in the service of another under any hire or appr~nticeship , written or implied,

contract of except one

" Employee'
defi.ned~

whose employment is not in the usual course of the trade,

154

INSURANCE L.A.ws.

business, occupation or profession of the employer and except as hereinafter set out. Minors are included eve~ though working in violation of any child labor law or ,other s_imilar statute, provided that nothing herein contained shall be construed as repealing or altering any such law or statute. Any reference td an employee wh&
has been injured shall, when the employee is dead, include
also his legal representatives, dependents and other persons to whom compensation may be payable, pursuant to 1 the provisions o~ this Act.

Basis for computing compensation. Annual earnings.
Employment by same employer.

(c) The basis for computing the compensation provided for in this Act, shall be as follows:

(1) The compensation shall be computed on the basis

of the annual earnings which the injured person re-

ceived as salary, wages or earnings if in the .employment

of the same employer continuously during the year next

preceding the injury.



I

(2) Employment by the same employer shall be taken to mean employment by the same employer in the grade in which the employee was employed at the time of the accident, uninterrupted by absence from work due to illness or any other unavoidable cause.

(3) If the injured person has not been engaged in

the employment of the same employer for the full year

immediately preceding the accident, the compensation

.shall be computed according to the annual earnings

which persons of the same class in the same employment

and same location, (or if that be impracticable, of neigh-

boring: employments of the same kind) have earned

during such period.

-

Yearly wage
reckoned.

(4) As to employees in employments in which it is the custom to operate throughout the working days of the year, the annual earnings, if not otherwise determin-

INSURANCE LAws.

155

able, shall be regarded as 300 times the .average daily earnings in such computations.

(5) As to employees in employments in which it is the custom to operate for a part of the whole number of working days in each year, such number, if the annual earnings are not otherwise determinable, shall be
used instead of 300 as a basis for computing the an-
nual earnings : Provided, the minimum number of days which shall be so used for the basis of the year's work shall not be lr ss than 200.

(6) Inthe case of injured employees who earn either no wages or less than the earnings of adult day laborers in the same line of e~ploy_ment in that locality, the yearly wage shall be reckoned according to the average annual earning of adults of the same class in the same (or if that is impracticable then of neighboring) employments.
\ I.
(7) Earnings, for the purpose of this section, shall be based on the earnings for the number of hours com- d"eErm~rned.lngs" monly regarded as a day's work for that employment and shall exclude overtime earnings. The earnings shalL not include any sum which the said employer has been accustomed to pay the employee to cover any special expense entai1ed on him by the nature of his employ-
ment.

(8) To determine the amount of compensation for

each installment period, the amount per annum shall t,r:o~~~t

1 be ascertained pursuant hereto, and such amount di- ~~~~~ent

vided by the number of installment periods per annum.



(d) "Injury" and "personal injury" shall mean only

injury by .accident arising out of and in the course of ''Inju.ry''

the

employment,

and

shall

not

include

a

disease

in

any

and "per sonal lB-

form,

except

where

it

results

naturally

and

u.navoidably

jury'' defined.

from the accident, nor shall "injury" and "personal

l56

INSURANCE LAWS.

Hernia.
Fatal. Non-fatal. Operatlvu.

injury" include injury caused by the wilful act of a third person directed against an employee for reasons personal to such employee or bec11use of his employment.
(e) In all claims for compensation for hernia resulting fr,om injury by accident arising out uf and in the course of the employee's employment, it must be definitely proven to the satisfaction of the Industrial Commission: First, that there was an injury resulting in hernia; second, that the hernia appeared suddenly; third, that it was accompanied by pain; fourth, that the hernia immediately followed an ac~ident; fifth, that the hernia did not exist prior to the accide nt for which compensation is claimed. All hernia, inguinal, .femoral
or otherwise, so proven to be the result of an injury by accident arising out of and in course ol the employment, shall be treated in a surgical manner by radical operation. If death result from such operation, the death shall be considered as a result of the injury, and compensation paid in accordance with ' the provision of Section 38. In non-fatal cases, time loss only shall be paid, unless it is shown by special examination, as provided in Section, 28, that the injured employee has a permanent partial disability resulting after the opera- . tion. If so, compensation shall be paicl in ~lccordance with the provisions of Section 38 with reference to partial disability. In case the injured employee refuses to undergo the radical operation for the cure of said hernia, no compensation will be allowed during the time such refusal continues. If, however, it is shown that the employee has some chronic disease, or is otherwise in such physical condition that the Commission consid~ ers it unsafe f.or the employee to undergo said operation, the employee shall be paid as provided in See tion 31.

INSURANCE L.A.ws.

157

Sec. 3.

Be

/
it further

enacted,

That

the

provisions

Pending legislation.

of this Act shall not effect pending litigation.

Sec. 4. Be it further enacted, That from and after Exempthe taking effect of this Act, every employer and em- tion.

ployee, except as herein stated, shall be presumed to have

accepted the provisions of this Act respectively to pay

and accept compensation for personal injury or death

by accident arising out of and in the course of the em-

ployment, and shall be bound thereby, unless prior to

any accident resulting in injury or death, notice to

the contrary shall have been given in the manner herein

provided, and in substantially the following form, to-

wit:

'
EMPLOYERs' NoTICE TO REJECT.

To the Employees of the Undersigned, and the Industrial

Commission of Georgia :

Employer's

You and each of you are hereby notified that the notice.

undersigned rejects the terms, conditions and provisions

to provide, secure and ' pay compensation to em-

ployees of the undersigned for injuries received as pro-

vided in that Act of the General Assembly of Georgia,

known as the Georgia Workmen 's Compensation Act,

and elects to pay damages for personal injuries re-

ceived by such employees under the' common law and

statutes of this State, as modified by the provision of

said Workmen's Compensation Law.

(Signed) .............. : . ............... .

State of Georgia,

County of .... .........

The undersigned being first duly sworn deposes and

says that a true, correct and verbatim copy of the fore-

going notice wasu on the .... day of ............. .19 . .. ,

posted at .......... ; ................ -.......... .

State Fully Place Where Posted.
Sworn to and subscribed before me this,........ day

of .................... . 19 ... .

....................... Notary Public.

158

INSURANCE LAws.

Enomtipcleo.yee'

EMPLJYEES' NOTICE TO REJECT.

T 0 ' . ... and the I ndustrial
Name of Employer.

Commission of Georgia: You and each of you are hereby notified that the undersigned hereby elects to reject the terms, conditions and provisions of an Act of the General Assembly of Georgia for "the payment of compensation k:riown as the Georgia Workmen's Compensation Act, 'and el~cts to rely upon the common law as modified by the statutes of this State and by the provisionsof said Act for 'the right to recover for an_y personal injury which I may receive growing out of and arising from said employment while in the line of duty for my employer above named. Dated this ....... day of .................... 19 ... .
(Signed) ............. ; ......... .

State of Georgia,

.

County of............ .

The undersigned being first duly sworn deposes and sa:ys that the above and foregoing written notice was on the ...... day of ................... 19 .... , served on the within named employer of the undersigned by
delivering to ...................................... .
State Name Df Person 8erved.
a true, correct and verbatim copy thereof.

Sworn to and subscribed before me this ...... day of ................./.... 19 ... .
. . . . . . . . . . . . . . . . . . . . . . . . . . . Notary Public.

Waiver ot
exemption.

Sec. 5. Be it further enacted, That either an employer or an employee, "\ho has - exempted h~mself, by proper notice, from the operation of this Act, may at any time waive such exemption and thereby accept the provisiOns of this Act by giving no'tice as herein pro-

,I

INSURANCE LAWS.

159

vided, which notice of waiver of such exemption shall be substantially in the following form, to-wit:

EMPLOYERs' NoTICE OF WAIVER oF ExEMPTION.

To

the

Employees

of

the

Undersigned,

and

the

Industrial

Employer's notice.

Commission of Georgia:

You and each of you are hereby notified that the

undersigned hereby waives exemption from the opera-

tion and effect of that Act of the General Assemb:ly of

Georgia, known as the Workmen's Compensation Act,

which exemption was heretofore accomplished through

notice to reject said Act, given as provided by said Act,

on the ______day of -----,.------------ ,.. --19____, and ac-

cepts the terms, conditions and provisions to provide, se-

cure and pay compensation to employees of the under-

signed for injuries received as provided in said Act. . (Signed)----------------------~--------

State of Georgia,

County of .

' The undersigned being first duly sworn deposes and

says that a true, correct and verbatim 9opy of the fore-

going notice was, on the .. da:y of ................ 19... ,

posted at------------ ------------ --~------
.State Fully Place Where Posted.
Sworn to and ,subscribed before me, this_________day, of __ ~ ______________ 19 ___ _

Notary Public.

EMPLOYEEs' NoTICE To WAIVE ExEMPTION.

To

__ _________________________and the Industrial Com-

Employee's notice.

Name of Employer.

mission of Georgia:

You and each of you are hereby notified that the

undersigned hereby waives his exemption from the opera-

tion and effect of that Act of the General Assembly of

160

I NSURANCE LAWS.

Georgia, known as the Georgia Workmen's Compensation Act, which exemption was accomplished through
notice as provided in said Act, given on the ------day of_ _____________________19____, and accepts the provis-
ions of said Act for the payment of compensation to employees for personal injury growing out of and arising from the employment while in line of duty for my employer above named.
Dated this .... day of ........ : ......... 19 ... . (Signed) ......................... .
State of Georgia, County of ................. .
The undersigned being first duly sworn deposes and says that the abo.ve and foregoing notice was on the ..... day of ............... .'.... 19 .... , served on the within named employer of the undersigned by delivering .to ... : ......................... ...... a true, cor-
.' Naming Persons Served.
rect and verbatim copy thereof. (Signed) ............... ~ ......... .
Sworn to and subscribed before me this ...... day of ...................... 19 .... .

Notary Public.

Time of notification.
Manner. ,

The notice to exempt from the operation and effect of said Act, and the notice of waiver of such exemption and of acceptance of said Act, in Section 4 and in this section respectively referred to, shall be.given, in order to be effective with respect to a particular accident. result ing in injury or death, thirty days prior to such .accident, provided that if ~my such accident occurred less than 'thirty days after the date of employment, notice of such exemption or waiver thereof and acceptance given at the time of employment, shall be sufficient notice thereof. Any such notice . shall be in writing or print~d and in substantially the appropriate form here-

INSURANCE LAws.

161

tofore set out. An~ such notice referred to in this or the preceding section of this Act shall be given by the. employer by posting the same in a conspicuous place in the shop, plant, office, room or place where the ' employee is employed, or by serving it pers.onally upon him; and shall be given by the employee by sending the .same in registered letter, addressed to the employer at his last known residence or place of business, or by giving it personally to the employer or any of his .agents upon whom a summons in civil action may be served under the laws of this State. A copy of any such notice, in prescribed form, whether given by the employer or employee, shall be filed with the Industrial Commission, and unless so filed within ten days from the time when a:ny such notice is served, due and proper notice shall be deemed not to have been given.
Sec. 6. Be it further enacted, That every contract Contracts
of service between any employer and employee covered of service. by this Act,. written or implied, now in operation or made or implied prior to the taking effect of this Act, shall, after the Act has taken effect, be presumed to con, tinue subject to the provisions of this Act; and every such contract made subsequent to the taking effect of this Act shall be presumed to have been made subject to the provisions of this Act, unless either party shall give notice in the manner provided in Section 5 hereof, to the other party to such contract, that the provisions -of this Act, other than Sections 16, 17 and 18, are not intended to apply. A like presumption shall exist -equally in the case of all minors, unless notice of thb same character be given by or to -the parent or guardian of the minor, or, in cases where such minor has no parent or guardian, then by or to the next of kin of said minor, sui. juris.
Sec. 7. Be it further enacted, That no contract or :agreement, written or implied, no rule, regulation or

162

INSURANCE LAws.

Relief from obligations.

other device, shall in any manner operate to relieve

any employer in whole or in part of any obligation ere- .

ated by this Act, except as herein otherwise expressly

provided.



Sec. 8. Be it further enacted, That neither any mu-

Provisions nicipal corporation within the State, nor any political

not appl!ca,. ble to pub

subdivision thereof, nor any employee of any such cor-

lie employees.

poration or subdivision shall have the right to reject the

provisions of this Act relative to payment and accept-

ance of compensation; and the provisions of Sections ,5,.
6, 16, 17 and 18 shall not apply to them.

Act not applicable to interstate carriers.

Sec. 9. Be it further enacted, That this Act shall not apply to any common carrier by railroad engaging in commerce, between any of the several States or Territories, or between the District of Columbia and any
of the States or Territories and any foreign nation or nations, nor to any person suffering injury or death while he is employed by such carrier in such commerce, nor shall this Act be construed to lessen the liability of such common c~rrier or to diminish or take away in any respect any right that any person so employed ' or the personal representative or kindred or relation or dependant of such person may have under the Act of Congress relating to the liability of common carriers: by railroads to their employees in certain cases, approved April 22nd, 1908.

No application to prior accidents.

Sec. 10. Be it further enacted, That the provisions of this ' Act shall not apply to injuries or death, nor to. accidents which occurred prior to the taking effect of this Act.

Insurance of com pensatlon.

Sec. 11, Be it further enacted, That every employer whO' accepts the compensation provisions of this Act shall insure the payment of compensation to his employees in the manner hereinafter provided, and while such insurance remains in force he or those conducting

INSURANCE LAWS.

163

his business shall only be liable to any employee for personal injury or death by accident to the extent and in the manner herein specified.

Sec. 12. Be it further enacted, That the rights and

remedies

herein

granted

to

an

employee

where

he

and

Other remedies

bis

employer

have

accepted

the

provisions

of

this

Act

excluded by this .Act.

respectively to pay and accept compensation on account

.0 f personal injury or death. by accident shall exclude all other rights and remedies of such employee, his per-

sonal representative, parents, dependents or next of

kin, at common law or otherwise on account of such

injury, loss of service or death.

Sec. _13. Be it further enacted, That nothing in tP,is

Act

shall be

construed to

relieve

any

employer or

em-

No reLief from

ployee from penalty for failure or neglect to perform penalty.

any statutory duty.

Sec. 14. Be .it further enacted, That no compensa-

tion

shall

be

allowed

for

any

injury

or

death

due

to

Employer's
m~sconduct.

the employee's wilful misconduct, including intentional

. self-inflicted injury, or growing out of his attempt to

injure another, or due to intoxication or wilful failure

or refusal to use a safety appliance or perform a duty

required by statute, or the wilful breach of any rule or

r egulation adopted by the employer and approved by

the Industrial Commission, and brought prior to the

accident to the knowledge of the employee. The burden

of proof shall be upon him who claims an exemption

or forfeiture under this section.

Sec. 15. Be it further enacted, That this Act shall not apply to common carriers,engaged in intrastate trade Common commerce, the motive power of which is steam, nor shall carriers. this Act be construed to lessen the liability of such common carriers or to take away or diminish any right that any employee, or in case of his death, the personal ' ' ~- . representative of such employee, of such common car-

164

INSURANCE LAws' .

rier may have, under the la~s of this State; nor to cas-
ual employees, farm laborers or domestic servants, nor to employees of institutions maintained and operated as public charities, nor to employers of such persons nor to any persons, firm or private corporation, includ:
ing any public service cdrporation, that has regularly in
service less than ten employ~es in the same business within this State; unless such employees and their employers voluntarily elect to be bound by this Act.

Action of ex empted employer.

Sec. 1ft. Be it further enacted, That an employer who elects not to operate under this Act, shall :riot in any suit at 'law instituted by an employee, subject to this Act, to recover damages for personal injury or death by accident, be permitted to defend any such suit at law upon any or all of the following grounds:

(a) That the employee was negligent.

(b) That the injury was caused bythe negligence of

a fellow employee.

"

'

(c) That the employee had assumed the risk of the injury.

Action of ex empted employee.

Sec. 17. Be it further enacted, That an employee who elects not to operate under this Act shall, in any action to recover damages for personal injury or death brought against an ~mployer accepting the compensation provisions of this Act, proceed at common law, and the employer may avail himself of the defenses of contributory negligence, negligence of a fellow servant and assumption of risk, as such defenses exist at common law.

Sec. 18. Be it further enacted, That when both the

Sec. 141 applicable

E)mployer and employee elect not to operate -unde;r this

when employer and

Act, the liability of the employer shall be the same as

epmloyee are exempt.

though .he

alone

rejected

the

terms

of

this

Act,

and

INSURANCE I.JAws.

165

in any suit brought against hill1 by such employee the employer shall not be permitted to avail himself of any of the common law defenses cited in Section 16.

Se~. 19. Be it further enacted, That nothing herein

contained shall be ments made by and

construed so as to prevent settlebetween the employee and. employer,

Settlements encouraged.

but rather to encourage them, so long as the amount

of compensation and the time and manner of payment

are in accordance with the provisionEl of this Act. A

copy of such settlement agreement shall be filed, by the

employer, with the Commission and no such' settlement

shall be binding until approved by the Commission.

Sec. 20. Be it further enacted, That a principal, intermedi~te or subcontractor shall be liable for com- ;~::actor, pensat1. on t o any emp1oyee m Jured wh1'le m the emp1oy liable. of any of his subcontractors and engaged upon the sub-
ject matter of the contract to the same extent as the im
mediate employer.

Any principal, intermediate or sub-contractor who shall pay compensation under the foregoing provisions Recovery. may recover the amount paid, from any person who, inde-
pendently of this section, would have been liable to pay compensation to the insured employee, or from any intermediate contractor.

Every claim for compensation under this section shaH be in the first instance presented to and instituted against the immediate employer, but such proceedings shall not constitute a waiver of the employee's rights to recover compensation under this Act from the principal or intermediate contractor, provided that the collection of full compensation from one employer shall bar recovery by the employee .against any others, nor shall .he collect f.rom all a total compensation in excess

166

INSURANCE LAWS.

of the amount for which any of the said contractors is liable.

When !Lpplled.

This section shall apply only in cases where the in-

jury oc-curred on, in or about the premises on which

the principal contractor has undertaken to execute work

or which .are otherwise under his control or. manage-

ment.



Priority of claims

Sec. 21. Be it further enacted, That all rights of compensation granted by this Act shl),ll have the same preference or priority for the whole thereof against the assets of the employer as is allowed by law f<;n any unpaid wages for labor.

Claims not
!LSsignable~
Notice of accident.

Sec. 22. Be it further enacted, That no claim for compensation under this Act shall be assignable, and all compensation and claims therefor shall be exempt from all claims of creditors.
I
Sec. 23. Be it further enacted, That every injured employee or his representative shall immediately on the occurrence of any accident or as soon thereafter as practicable, give or cause to be given to the employer a written notice of the accident, and the employee shall not be entitled to physician's fees nor to any compenr sation which may have accrued under the terms of this Act, prior to the giving of such notice; unless it can be shown that the employer, his agent or repres~?.ntative had knowledge of the acc~dent, or that the party required to give such notice had been prevented froin doing so by reason of physical or mental incapacity or 'by fraud or deceit; but no compensation shall be payable unless such written notice is given within thirty days after the occurrence of the accident and if death results from the accident also within thirty days after death, unless reasonable excuse is made to the satisfaction of the Industrial Commission for not giving such

INSURANCE LAws.

16' 7

notice, and it is reasonably proved to the satisfaction of the Commission that the employer has not been prejudiced thereby.

Sec. 24. Be it further enacted, That the notice pro-

vided

in

the

foregoing

section

shall

state

in

ordinary

Contents of notice.

language the name and address of the employee, the

time, place, nature and cause of the accident and of

the resulting injury or death, and shall be signed by

the employee or by a person in his behalf, or in the

event of his death by any one or more of his depend-

ants or by a person in their behalf. No defect or

inaccuracy in the notice shall be a bar to compensation

unless the employer shall' prove that his interest was

prejudiced thereby, and then only to such extent as the

prejudice. Said notice shall be given personally to the Delivery.

employer or any of his agents upon whom a summons

in civil action may be served under the laws of the

State, ot may. be. sent by registered letter addressed to

the employer at his last known residence or place of

business.

Sec. 25. Be it further enacted, That the right to

compensation under this Act shall be forever barred,

unless a claim be filed with the Industrial Commission Time ot

within one

year after

the

accident,

and, .if death

results

filing claim.

from the accident, unless a claim therefor is filed with

the Commission within one year thereafter.

Sec. 26. Be it further enacted, That for a period .of

not

exceeding

thirty

days

after

an

accident

the

em-

Medical attention.

ployer shall furnish, or cause to be furnished, free of

charge to the injured employee, and the employee shall

accept such necessary medical attention as the nature

of the accident may require. 1 The Industrial Commis-

sion may at any time, for good cause shown or in its dis-

cretion, order a change in such medical attention so

furnished by the employer. Provided, however, that the

16' 8

INSURANCE L.A.WS.

total liability of the employer for necessary medical at-

. t(mtion shall not exceed $100.00. During the whole or any

part of the remainder of disability r esulting from the

injury, the employer may, at his own option, continue

to furnish or cause to be furnished, free of charge to

the employee, and the employee shall accept, an attend-

ing physician, unless otherwise ordered by the I-ndus-

trial Commission, and in addition such surgical and hos-

pital service and supplies as may be deemed neces-

sary by said attending physician or the Industnal Com-

Ill,lSSIOn. The refusal of the employee to accept any

medical, hospital or surgical service when provided bv the employer, or ordered by the Industrial Commi~

sion, shall bar said employee from further compensation

until such refusal ceases, and no compensation shall at

any time be paid for the period of suspension unless

in the opinion of the Industrial Commission the circum-

stances justified the refusal, in which case the Indus-

trial Commission may order a change in the medical

or hospital service. If in an emergency on account of

Failure to provide.

the employer's failure to provide the medical care dur-

ing the first thirty days, as herein specified, a physician

other than provided by -the employer is called to treat

the injured employee, during the first thirty days, the

reasonable cost of such service, not to exceed $100.00

as above set out, shall be paid by the employer if or-

dered so to do by the Industrial Commission.

Liability formed
ica.I attention limited.

Sec. 27. Be it further enacted, That the pecuniary liability of the employer for medical, surgical and hospital service herein required when ordered by the Commission shall be limited to such charges as prevail in the same community for similar treatment of injured persons of a like standard of living when . such treat-
ment is paid for by the injured persons, and shall not,
in any event, exceed the aggregate of $100.00 in amount. The employer shall not be liable in damages for mal-

INSURANCE LAws.

169

practice by a physician or surgeon furnished by him pursuant to the provisions of this section,. but the consequences of any such malpractice shall be deemed part of the injury resulting from the accident and shall be compensated for as such.

Sec. 28. Be it further enacted, That after an in-

jury

and

so

long

as

he

claims

compensation,

the

em-

Physical examina-

ployee, if so requested by his employer, shall submit tion.

himself to examination, at reasonable times and places,

by a duly qualified physician or surgeon designated and

paid by the employer or the Industrial Commission. The

employee shall have the right to have present at such

examination any duly qual1fied physician or surgeon

provided and paid by him. No fact communicated to,

or otherwise learned by any physician or surgeon who

may have attended or examined the employee, or who

may have been present at any examination, shall

be privileged, either in hearings provided for by this

Act, or in a::y action .at law brought to recover dam-

ages against any employer who may have accepted the

compensation provisions of this Act. If the employee

refuses to submit himself to or in any way obstructs such

examination requested by and provided for by the em

ployer, his right to compensation and his right to take or

prosecute any proceedings under this Act shall be sus-

pended until such refusal or objection ceases, and no

compensation shall at any time be payable for the period

of suspension unless in the opinion of the Industrial

Commission the circumstances justify the refusal or ob

struction. The employer, or the Industrial Commission,

shall have the right in any case of death to require an

autopsy at the expense of the party requesting the same.

No compensation shall be payable for the death or dis- Refusal to

. ability

of

an

employee

if

his

death

be

caused

by,

or

submit to treatment.

in so far as his disability may be aggravated, caused or

continued by an unreasonable refusal or neglect to sub-

17'0

I NSURANCE LAWS.

'

mit to or follow any competent or reasonable surgical treatment.

"Period of incapacity.

Sec. 29. Be it further enacted, That no compensation shall be allowed for the first fourteen calendar days of incapacity resulting from an injury except the benefits provided for in Section 26; but if incapacity extends beyond that period, compensation shall commence with the fifte enth day of disability; provided that if incapacity extends beyond a period of four weeks from the date of the injury, then compensation is to be paid from the date of the injury, subject to the
other provisions of thl.s Act.

Total incapacity.
Partial incapacity.
/
Compensation. Limit,

Sec. 30. Be it further enacted, that where the incapacity for work resulting from the injury is total, the employer shall pay, or cause to be paid, as hereinafter provided, to the injured employee during such total incapacity a weekly compensation equal to one-half his average wages, but not more than t'velve dollars, nor less than six dollars a week; and in no case shall the period covered by such compensation be greater than_ three hundred and fifty weeks, nor shall the. total amount of all compensation -exceed four thousand dollars.
Sec. 31.' Be it further enacted, That except as otherwise provided in the next section hereafter, where the incapacity for work r esulting from the injury is partial, the employer shall pay, or cause to be paid, as hereinafter provided, to the injured employee during such incapacity, a weekly compensation equal ~o one-half the difference between his average weekly wages before the injury and the average weekly wages which he is able to earn thereafter, but not more than twelve dollars a week, and in no case shall the period covered by su~h compensation .be greater than three hundred weeks from the date of the injury. In case the partial incapacity begins after a period of total incapacity, the

INSURANCE LAWS.

171 .

.latter period shall be deducted from 'the maximum period herein allowed for partial incapacity.

Sec. 32. Be it further enacted, That in cases included

by the following schedule, the incapacity in each case Payments

shall be deemed to continue for the period specified, and

for injuries.

the compensation so paid for such injury shall be as

specified therein, and shall be in lieu of all other com-

pensation, to-wit:

(a) For the loss of a thumb, fifty per centum of the Thumb; average weekly wages during sixty weeks.

(b) For the loss of a first finger, commonly called the index finger, fifty per centum of the average weekly Fingers, wages during 'thirty-five weeks.
(c) For the loss of a second finger, fifty per centum of the average weekly wages during thirty weeks:
(d) For he loss of a third finger, fifty per centum of the average weekly wages during twenty weeks.
(e) For the loss of a fourth finger, commonly called the little finger, fifty per centum of average weekly wages during fifteen .weeks.
(f) The loss of the first phalange of the thumb or any nnget shall be considered to be equal to the loss of one-half of such thumb or finger, and the compensation shall be for one-half of the -periods of time above specified.

(g) The loss of more than one phalange shall be considered the loss of the entire finger or thumb; provided, tltat in no case shall the amount received for more than one _finger exceed the amount provided in this schedule for the loss of a hand.

(h) For the loss of a great t'oe, fifty per centum Toes. of the average weekly wages during thirty weeks.

172

INSURANCE LAWS.

Hands. A.rm.s. Feet.
Legs. Ill yes. lllars.
rotal and Partial Losses.

(i~ For the loss of one of the to es other than a great

toe, fifty per centum of the average weekly wages dur-

ing ten weeks.

'

(j) The loss of the first phalange of any toe shall be considered to b~ equal to the loss of one-half of such
toe, and the compensation shall be for one-half of the periods of time above specified.

(k) The loss of more than one phalange shall be considered as the loss of the entire toe.
(1) For the loss of a hand, fifty, per centum of the average weekly wages during one hundred and fifty weeks.
(m) For the loss of a:h arm, fifty per centum of the average' weekly wages during two hundred weeks.
(n) For the loss of a foot, fifty per centum of the average weekly wages during one hundred' and twenty-five weeks. ,
(o) For the loss of a leg, fifty per centum of average weekly wages during one hundred and seventyfive weeks.
(p) For the loss of an eye, fifty per centum of the average weekly wages during one hundred weeks.

(q) For the complete loss of hearing. in both ears, fifty per centum of average weekly wages during one hundred and fifty weeks.

(r) Total loss of use of a member or loss of vision of an eye, shall be considered as equivalent to the loss of such member or eye. The compens~tion for partial loss of or for partail loss of use of a member or for partial loss of vision of an eye shall be such proportion of the payments above provided for total loss as
such partial loss bears to total loss. Loss of both arms,

I NSURANCE LAws.

173

hands, legs or feet, or of any two of these members, the permanent total loss of vision in both eyes, shall be deemed permanent total incapacity and shall be compensated under Section 30.

The weekly compensation payments referred to in

this section shall be subject to the same limitations as to ~;;!mum

maximum and minimum as set out in Section Thirty.

minimum.

Section 33. Be it further enacted, That if an in-

jured em,ployee refuses employment procured for him Refusal of suitable to his capacity, he shaJl not be entitled to any 1 ~'::~i~Y

compensation at any time during the continuance of such

refusal, unless in the opinion of the Industrial Commis-

sion such refusal was justified.

'

Sec. 34. Be it further enacted, That if an employee

wlio

suffers

an

injury

in

his

employment

has

a

per-

Injuries not speci-

. manent

disability

or

has

sustained

a

permanell(t

:in-

fied In Sec. 32.

jury, such as specified in Section 32, suffered elsewhere,

he shall be entitled to compensation only for the de-

gree of incapacity which would have resulted from the

later accident if the earlier disability or injury had not

existed.

Section 35. Be it further enacted, That if an em-

ployee

receives

an

injury

for

which

compensation

is

Two injuries.

payable, while he is still receiving or entitled to com-

pensation for a previous.injury in the same employment,

he shall not at the same time be entitled to compensation

,for both injuries, unless the later injury be a permanent

injury, such as specified in Section 32; but he shall be

entitled to compensation for that injury and from the

time of that injury which will cover the longest period

and the largest amount payable under this Act.

Sec. 36. Be it further enacted, That if an employee

receives

a permanent injury as

specified i:p.

Section 32,

Two per m-anent

after having sustained another permanent injury in the injuries.

174

INSURANCE LAws.

Accidents outside of State.

same employment, he shall be entitled to compensation for both injuries, but the total compensation , shall be paid by extending the period and not by increasing the amount of weekly compensation, and in no case exceeding three hundred and fifty weeks. When the previous and subsequent permanent injuries received in the same employment result in total disability, compensation shall be payable for permanent total disability, but payments made for the previous injury shall be deducted from the total payment of compensation due.
Sec. 37. Be it further enacted, That (a) where an accident happens while the employee is employed elsewhere ' than in this State, which would entitle him or his dependents to compensation if it had happened in this State, the employee or his dependents shall be entitled to compensation, if the contract of employment was made in this State, and if the employer's place of business is in this State, or if the residence of the employee is in this State; provided his contract of employment was not expressly for service exclusively outside of the State. (b) Provided, however, if an employee shall receive compensation or damages under the laws of any other State, nothing herein contained shall be construed so as to permit a total compensation for the same injury greater than is provided for in this Act.

Death for other causes than injury.
Death resulting from injury.

Sec. 38. Be it further enacted, That when an employee is entitled to compensation under this Act for an injury received, and death ensues from any cause not resulting from the injury for which he was entitled to the compensation, payments of the unpaid balance for such injury shall cease and all liability therefor shall terminate.
I
If during the period of disability caused by an accident arising out of and in the course of the employ-

INSURANCE LAWS.

175

ment, death results proximately therefrom, the compensation under this Act shall be as follows:
(a) The employer shall, in addition to any other <Jompensation, pay the reasonable expenses of the em- Funeral. ployee's last sickness, and burial expenses not to exceed $100.00. If the employee leaves no dependents, this shall be the only compensation.
(b) The employer shall pay the depqndents of the employee wholly dependent upon his earnings for sup- Dependents. port at the time of the injury, a weekly payment eq~al to one-half of his average weekly ;wages, but not more than ten dollars nor less than five dollars, for a period of three hu:rjdred weeks from the date of the injury.
(c) If the employee leaves only dependents partly dependent upon his earnings for support at the time of the injury, the weekly compensation to be paid as aforesaid, shall be equal to the same proportion of the weekly payments for the benefit of persons wholly dependent as the amount contributed by the employee to such partial dependents bears to total dependency at the time of the injury.
(d) When weekly payments have been made to an injured employee before his death, the compensation to dependents shall begin on the date of the last of such payments, but shall not continue more than three hundred weeks from the date of the injury, nor except dur- ing dependency. The total compensation to be paid to all dependents of a deceased employee shall not exceed m the aggregate ten dollars per week.
(e) If the employee does not leave dependents, citizens of or residing at the time of the accident in the United States or Dominion of Canada, the amount of compensation shall not in any case exceed $1000.00.

176

INSURANCE LAws.

List of dependents.

Sec. 39. Be it further enacted, That the compensation provided for in Section 38 shall be payable only to dependents and only during dependency. The following persons shall be conclusively presumed to be the next of kin wholly dependent for support upon the deceased employee:

(a) A wife upon a husband whom she had not voluntarily deserted or abandoned at time of the accident.

(b) A husband upon a wife with whom he lived at the time of her accident if he is then incapable of selfsupport and actually dependent upon her.
(c) A boy under the age of eighteen, or a: girl under
the age of eighteen, upon a parent. If a child is over the ages specified above, but physically or mentally incapacitated from earning a livelihood, he or she shall be presumed to be totally dependent.

As used in this section, the term ''boy,'' ''girl,'' or

''child'' shall include stepchild, legally adopted chil-

dren, posthumous children, acknowledged ilegitimate

children, but shall not include married children; the

term "parent" shall include step-parents and parents

by adoption.

'

If the deceased employee leaves dependent surviving spouse, as above described, and no dependent child or children, the full compensati~n shall be paid to such spouse; if the deceased employee leaves dependent surviving spouse, as above described, and also a dependent child, or children, then the full compensation shall be paid to such spouse for his or her use and that of such child or children, the Commission, however, to have the power in .proper cases, in its discretion, to apportion the compensation; if the dependent surviving spouse dies before payment is made in full, the balance remain-

INSURANCE LAws.

177

ing shall be paid to the person or persons wholly dependent, if any, share and share alike. If there be no person or persons wholly dependent, then payment shall be made to partial dependents.

In all other cases, questions of dependency, in whole or in part, shall be determined in accordance with the facts as the facts may be at the time of the accident, but no allowance shall be made for any payment made ln lieu of board and lodging or services, and no compensation shall be allowed, unless the d?pendency existed for a period of three months or more prior to the accident; mid in such other cases if there is more than one person :wholly dependent, the death benefit Jahall be divided among them, and persons partially dependent, if any, shall receive no part thereof; if there is no one wholly dependent and more than ohe person partially dependent, the death benefit shall be divided among them according to the relative extent of their dependency.

For the purpose of this Act, the dep~ndence -of a widow or widower of a deceased employee shall termi- Termina-
tion of
nate with remarriage. The dependence of a child, ex- dependence. cept a child. physically or mentally incapacitated from earning a livelihood, shall terminate with the attainment of eighteen years of age. In all cases, except such as are hereinbefore specifically provided for, wnere there are both total and partial dependents and the total dependents die; re-marry or cease to be dependents, the partial dependents shall be entitled to the balance of compensation, if any.

Sec. 40. Be it further enacted, That the total com- Total

pensation

payable

under

this

Act

shall in no

case

ex-

compensation.

ceed four thousand dollars.

Sec. 41. Be it further enacted, That any payments Payments

made

by

the

employer

to

the

injured

employee

during

not due' when made.

178

-INSURANCE LAws.

the period of his disability, or to his dependents, w_hich by the terms of this Act were not due and payable when made, may, subject to the approval of the Industrial Commission, be deducted from the amount to be paid as compensation; provided, that in the case of disahility such deductions shall be made by shortening the period during which ~ompensation must be paid and not by reducing the amount of the weekly payments.

Monthly or quarterly payments.

Sec. 42. Be it further enacted, That the Industrial Commission, upon application of either party., may, in its discretion, having regard to the welfare of the employee and the convenience of the employer, authorize compensation to be paid monthly . or quarterly instead of weekly.

Payment in lump sum.
Trustees.

Sec. 43. Be it .further enacted, That whenever any weekly payment has been continued for not less than twenty-six weeks, the liability therefor may, where the parties agree and the Industrial Commission deems it to be to the best interests of the employee or his dependents, or where it will prevent undue hardships on the employer, or his insurance carrier, without J!lrejudicing the interests 1of the employee or hi13 dependents, be redeemed, in whole or in part, by the payment, by the employer, of a lump sum which shall be fixed by the Commission, but in no case to exceed the commutable value of the future installments which may -be-due under this Act; provided that the lump sum to be paid shall be fixed at an amount which will equal the total sum of the probable future payments, capitalized at their present value upon the basis of interest calculated at five per centum per annum.
Sec. 44. Be it further enacted, That whenever the Industrial Commission deems it expedient, any lump sum, subject to the provisions of the foregoing section, shall be paid by the employer to some suitable per-

I-

INSURANCE LAws.

179

son or corporation appointed by the Superior Court of the county wherein the accident occurred, or the original hearing was held, as trustee, to administer the same for the benefit of the person or persons entitled thereto in the manner provided by the Commission. The receipt of such trustees for the amount as paid shall discharge the employer or .any one else who is liable therefor.

Sec. 45. Be it further enacted, That upon its own mo-

tion

before

judicial

determination

or

upon

the

appli-

Review of awards.

cation of any party in interest on tlH: ground of a

change in condition, the Industrial Commission may at

any time review any award or any settlement made

between the parties and filed with the Commission and,

on such review, may make an award ending, diminish-

ing or increasing the compensation previously awarded

or agreed upon, subject to the maximum or minimum

provided in this Act, and shall immediately send to the

parties a copy of the award. No such review shall af-

fect such award as regards any monies paid.

Sec. 46. Be it further enacted, That (a) whenever

payment of compensation, in accordance with the t enris Recei~ts.

of

this

Act,

is

made

to

a

widow

or

widower

for

her

or

from widow.

his use or for her or his use and the use of the child

or children, the written receipt thereof of such widow

or widower shall acquit the employer; (b) whenever pay-

m:ent in accordance with the terms of this Act is made F1rom to any minor employee eighteen years of age or over, minor.

the written receipt of such person shall acquit the em-

ploy~r. In cases where an infant or minor under the

age of eighteen years shall be entitled to receive a sum

or sums amounting in the a~gregate to not more than

three hundred dollars as compensation for injuries, or

as a distributive share by virtue of this Act, the father,

mother, natural guardian or legally appointed guardian

of such infant or minor shall be authorized and em-

180

INSURANCE L.A.ws.

From guardian. Rival claimants.

powered to receive such monies for the use and benefit of said minor and to receipt therefor; and the release or discharge of such father, mother, natural guardian or legally appointed guardian shall be in full and complete discharge of all claims or demands of such infant or minor thereunder; (c) whenever payment of over three hundred dollars, in accordance with the terms of this Act, is made to a minor. under eighteen years of age, or to a minor child over eighteen physically or mentally incapable of earning, the same shall be made to his duly and legally appointed guardian or to some suitable person or corporation appointed by the Superior Court as hereinbefore provided, as a trustee, and the receipt of such guardian or such trustee shall acquit the employer; (d) payment of death benefits by an employer in good faith to a dependent subsequent in right to another or other dependents shall protect and discharge the employer unless such dependent or dependents prior in right shall have given notice of his .or their claim. In case the employer is in doubt as to the respective rights of rival claimants, he may apply to the Industrial Commission to decide between them:

M!nor's or lunat!os' trustee.

Sec. 47. Be it further enacted, That if an injured employee is mentally incompetent or is under eighteen years of age at the time when any right or privilege accrues to him under this Act, his guardian, or trust~e, may in his behalf claim and exercise such right or privilege.

No time limit against lunatics or minors without trustees.

Sec. 48. Be it further enacted, That no limitation of time provided in this Act for the giving of notice or making claim under this Act shall run against any person who is mentally incompetent, or a minor dependent, so long as he has no guardian or trustee.

Sec. 49. Be it further enacted, That whenever any employee for whose injury or death compensation Is

INSURANCE LAws.

181

payable

under

this

Act shall

at

the

time

of the

injury

Joint service

be in the joint service of two or more employers sub- of more

ject

to

this

Act,

such

employers

shall

contribute

to

than one employer.

the payment of such compensation in proportion to their

wage liability to such employee; Provided, however,

that nothing in this section shall prevent a:ny reason-

a ble arrangement between such employers for a dif-

ferent distr~butiqn as between themselves of the ulti-

mate burden of compensation.

Sec. 50. Be it further enacted, That there is hereby

Industrial

created a Commission to be known as the Industrial CommiB

Commission,

consisting

of

the

Commissioner

of

Com-

sion created.

merce and Labor, .who shall be ex-officio Chairman; of

the Attorney-General, and two members to be appointed

by the Governor. One of the members of this Commis-

sion to be appointed by the Governor shall serve for two .

years, and another for the term of four years; 'and

thereafter each member shall be appointed for a term

of four years; no more than one member of said Com-

mission appointed by the Governor shall be a person

who on account of his previous vocation, employment

or affiliation, shall be classified as a representative o

employers, and not more than one of such appointees

shall be a person who, on account of his previous vo-

cation, employment .or affiliation shall be classed as

a representative of employees. Each of the appointees

by the Governor on said Commission shall devote his

entire time to the duties of his office, and snail not

hold any position of trust or . profit; or be engaged in

any occupation or business interfering or inconsistent

with his dutie1s as such member.

Sec. 51. Be it further enacted, That (a) the salary

of each memoer of the Commission appointed by the Salary.

Governor shall be $4,000.00 per year. The Commission

may

appoint a

:Secretary-'l'reasurer at

a

salary

of

nvt

SecretaJryTreasurer.

more than $2,000.00 per year, who shall give bond. in a

182

INSURANCE LAWS.

Clerical help. Expenses.
Offices. Deputies.
Rules.

sum prescribed by the Commission, and who may be removed by the Commission; (b) the Commission may also, subject to the approval of the Governor, employ such clerical or other assistance as may be deemed necessary and fix the compensation of all persons so employed; (c) the members of this Commission and its; assistants shall be entitled to receive the actual nece::ssary expenses while traveling on business of the Commission, but such-expenses shall be sworn to by the persons who incurred the same and shall be approved by the Chairman of the Commission before payment is made; (d) all salaries and expenses of the Commission shall be audited and paid out of the funds in the hands of the Secretary-Treasurer according to rules and regulations prescribed by the Commission.
Sec. 152. Be it further enacted, That (a) the Commission shall be provided with adequate offices in the Capitol or some other suitable building in the City of Atlanta, in which the records shall be kept and its official business transacted during regular business hours ; it shall also be provided with necessary office furnifure, stationery and other supplies. (b) The Commission may appoint deputies from time to time, as required, to serve only, as and when needed, without permanent positions, who shall have the power to subpoena witnesses and administer oaths, and who may take testimony in such cases as -the Commission may deem proper. Such testimony shall be transmitted in writing to the Co~mission and the. Commission shall fix_, t~e compensabon of such deputies. (c) The CommiSSion or any member thereof may hold sessions at any place within the State as may be deemed necessary by the Commission, subject to the other provisions of this Act.
Sec. 153. Be it further enacted, That (a) the Commission may make rules, not inconsistent with this Act,. for c:;trrying out the provisions of this Act. Processes,

INSURANCE LAws.

183

and porcedure under this. Act shall be as summary and simple as reasonably may be. The Commission or any member thereof or any person deputized by it shall have the power for the purpose of this Act to subpoena Subpoenas, .J witnesses, administer o:r cause to have administered etc. oaths, and to examine or cause to be examined such parts of the books and records of the parties to a proceeding as r elate to questions in dispute. (b) The sheriffs of this State within their respective jurisdictions, and their respective deputies, shall serve all subpoenas of the Commission or its d.eputies and shall r eceive the same fees as are now provided by law for like civil actions; each witness who appears in obedience to such subpoena of the Commission shall receive for attendance the fees prescribed by law for witnesses in civil cases in courts. The Superior Courts shall, on application of the Commission or any member or deputy thereof, enforce by proper proceedings the attendance and testimony of witnesses and the production and examination of books, papers and r ecords. (c) Any three members of the Commission shall constitute a quorum Quorum. for the transaction of any business-or the rendition of any decision herein provided to be made by the full Commission.
Sec. 54. Be it further enacted, That the Commission shall prepare and cause to be printed, and upon re- , ~:t~~~s. quest furnish free of charge to any employee or employer such blank forms and literature as it shall deem requisite to facilitate or promote the efficient administration of this Act. The Commission shall tabulate the accl.dent reports received from employers in accordance with Section 65, and shall publish the same in the annual report of the Commission and as often as it may deem advisable, in such detailed or aggregate form as
in it may deem best. The name of -the employer or em-
ployee shall not appear such publications and the

184

INSURANCE LAw.s.

Agreements.
Hearings regarding disagreements.

employers' reports themselves shall be private records of the Commission, and shall not be open for public inspection except for the inspection of the parties directly involved, and only to the extent of such interest. These reports shall not be used as evidence against any employer in any suit at law brought by any employee for the recovery of damages, or in any proceeding under this Act.
Sec. 55. Be it further enacted, That if after fourteen days from the date ,of the injury or at any time in case of death, the employer and the injured employee or his dependents reach an agreement in regard to compensation under this Act, a memorandum of the agreement in the form prescribed by the Commission shall be filed with the Commission for approval as herein provided; otherwise such agreement shall be voidable by the employee or .his dependents. If approved by the Commission, thereupon the memorandum shall for all purposes be enforced by decree or judgment of the Superior Court, as herein specified.
Sec. 56. Be it further enacte.d, That if the employer and the injured employee or his dependents fail to reach _ an agreement in reg,ard to compensation 'under this Act, or if they have reached such an agreement which has been signed and filed with the Commission and compensation has been paid or is due in accordance therewith, and the parties thereto then disagree as to the continuance of any weekly payment under such agreement, either party may make application to the Commission for a hearing in regard to the matters at issue and for a ruling thereon. Immediately after such application has been received the Commission shall set a date for a hearing, which shall be held. as soon las practicab'ij:l, and shall notify the parties at issue of the time and place of such hearing. The hearing shall be held in the county where the injury occurred, if the

l:&SUR.A.NCE L.A.ws.

185

same occurred in this State, unless otherwise agreed to between the parties and authorized by the Commission. If the injury occurred without the State of Georgia, and is one for which compensation is payable under this Act, then the hearing above referred to may be held in the County of the employer's r esidence or place of business, or in any' other county of the State which will, in the discretion of the Commission, be the . most con venient for a hearing.
Sec. 57. Be it further enacted, That the Commission or any of its members shall hear the parties at issue ~nduct of and their representatives and witnesses and shall deter- hearings. mine the dispute in a summary manner. The award, together with a statement of the findings of fact and other matters pertinent to the questions at issue shall be filed with the record of the proceedings, .and a copy of the award shall immediately be sent to the parties at dispute. The parties may be heard by a deputy, in which event he shall swear or cause the witnesses to be sworn and sh,all transmit all t estimony to the Commission for its determination and award.
Sec. 58. Be it- further enacted, That if an application for review is made to the Commission within seven Review. days from the date of notice of the award, the full Commission shall review th8 evidence, or, if deemed advisable, as soon as practicable, hear the parties at issue, their representatives and witnesses, and shall make an award and file the same in like manner as specified in the foregoing section, together with its rulings of law in the premises. A copy of the award so made on review shall immediately be sent to the parties at dispute.
Sec. 59. Be it further enacted, That any award of the Commission, provided for in. Section 57, with respect to which no application for a review thereof be

J

186

INSURANCE LAws.

filed in due time, or an award of the Commission upon

such review as provided in Section 58 shall, in either

event, as the case may be, and subject to the other

provisions of this Act, be a final award and shall be

_conclusive and binding as to 'an questions of fact; but.

either party to the di&pute may, within thirty days

from the date of any such final award, or within thirty

days from the da:te of any other final order or judgment of said Commission, but not thereafter, appeal from th~

decision in such final award or from any other final de-

Appeals to cision of said Commission to the Superior Court of the

Superior

Court.

county in which the injury occurred, or if the injury oc-

curred without the State, then to the Superior Court of

the county in which the original hearing lwas had, in the

manner hereinafter outlined, and upon the following

grounds, viz. : The party conceiving himself to be

aggrieved rp.ay file an application in writing with the

Commission asking for an appeal from any such order

or decree, stating gene.rally the grounds upon which

such appeal is sought. In the event such appeal is.

filed as hereinbefore provided, the Commission shall~

within thirty days from the filing of the same, cause

certified copies of all documents and papers then on

file in its office in the matter, and a transcript of all

testimony taken therein, to be transmitted with its find-

ings and order or decree to the Clerk of the Superior

Court to which the case is appealable, as hereinbefore

set out. The cause so appealed may thereupon be

brought on for a hearing in either term time or vaca-

Ca.use.

tion before said Superior Court upon such record by

either party on ten days written notice to the other;

subject, however, to an assignment of the same for hear-

ing by the Court. The findings of fact made by the

Commission within its power shall, in the absence oi

fraud, be conclusive, but upon such hearing the Court

shall .set aside said order or decree of the Industrial

Commission, if it be found:

INSURANCE LAws.

187

(1)

That the

Industrial

Commission

acted without

Grounds of rescind-

<>r in excess of its powers.

ing order of Com-

mission_

(2) That the order or decree was procured by fraud,1

(3) That the facts found by the Industrial Com~

mission do not -support the order or decree.

(4) That there is not sufficient competent evidence in the record to warrant the Industrial Commission in making the order or decree complained of or,

(5) That the order or decree is contrary to law.

No order or decree of the Industrial Commission shall

be set aside by the Court upon any grounds other than

one or more of the grounds above stated. If not set

aside upon one or more of such stated grounds, the

Court shall affirm the order, ;ludgment, decree or de-

cision of the Commission so appealed from. Upon the

setting aside of any such order, decree or decision of

the Commission, the Court may recommit the con-

troversy to the Commission for further hearing or pro-

.ceedings in conformity with the judgment and opinion

.of the Court, or such Court may enter the proper judg-

. ment upon the findings, as the nature of the case may

demand_ Such decree of the Court shall have the same

effect and all proceedings in relation thereto shall, sub-

ject to the other provisions of this Act, thereafter b~

the same as though rendered in a suit heard and deter-

mined by said Court. The Court of Appeals of Geor-

gia shall, within thirty days after this Act takes ef-

fect, prescribe such rules of procedure, not inconsistent

with the above and foregoing, as may be necessary or

proper to fix the details of the form and manner of

such appeal.



The Commission of its own motion may certify ques- tions of law to the Court of Appeals of Georgia for decision and determination, by the said Court. Any

~:88

INSURANCE LAWS.

Writ of error.

party in interest who is aggrieved by a judgment entered by the Superior Court upon an appeal from an order or decree of the Commission to the Superior Court, may appeal therefrom to the Court of Appeals of Georgia by writ of error and bill of exceptions withi~ the time a~d in the manner provided by law for appeals by fast bill of exceptions from other orders, judgments and decrees of the Superior Court made by law reviewable upon fast bills of exceptions. In case of an appeal from the decision of the Commission, or of a certification by said Commission of questions of law to the Court of Appeals, said appeal or certification shall operate as a supersedeas, if the employer has complied with the provisions of thli R Act respecting insurance, and no such employer shall be required to make payment of the award involved in the questions made in the case so appealed or certified, until such questions at issue therein shall have been .fully determined in accordance with the provisions of this Act.

Judgment in accordance with Commission.

Sec. 60. Be it further enacted, That any party in in- terest may file in the Superior Court of the county in which the injury occurred, or if the injury occurred without the State of Georgia, then in the county in which the original hearing was had, a certified copy of a memorandum of agreement approved by the Commission, or of a final order or decision of the Commission, or of
an award of the Commission unappealed from, or of an award of the Commission affirmed upon appeal, whereupon said Court shall render judgment in accordance therewith and notify the parties. Such judgment shall have the same effect, and all proceedings in relation thereto shall thereafter be the same, as though said judgment had been rendered in a suit duly heard and determined by said Court. Provided', however, that where the payment of compensation is insured or pr-ovided for in accordance with the provisions of this Act.,

. .. ' ~ :'

<INSUR~NCE LAws.

189

no such judgment shall be entered nor execution thereon issued, except upon application to the Court and for good cause shown. Upon P,resentation to the Court of a certified copy of a decision of the Commission ending, diminishing or increasing a weekly payment under the provisions of this Act, particularly of Section 45 thereof, the Court shall revoke or .modify the order or decree to conform to such decision of the Commission.

Sec. 61. Be it further enacted, That if the Commis-

sion

or

any

Court

before

whom

any

proceedings

are

Proceedings with-

brought

under

this

Act

shall

determine

that

such

pro-

out reasonable

ceed;ings have been brought, prosecuted: or defended grounds.

without reasonable ground, it may assess the whole cost

of the proceedings upon the party who has brought Ol"

defended them.

Sec. 62. Be it further enacted, That the Commission

or

any

member

thereof

may,

upon

the

application

of

Appoint ment of

either party or upon its own motion, appoint a disin- physician.

terested and duly qualified physician or surgeon to

make any necessary medical examination of the em-

ployee and to testify in respect thereto. Said physi-

cian or surgeon shall be allowed traveling expenses and

a reasonable fee to be fixed by the Commission, not

exceeding ten dollars for each examination and report,

.but the Commission may allow. additional reasonable

amcmnts in extraordinary cases. The fees and expenses

of such physician or surgeon shall .be paid by the State.

Sec. 63. Be it further enacted, That fees of attorneys and physicians and charges of hospitals for servi- Fees. ces under this Act shall be reasonable and measured according to the employee's station and shall be subject -to the approval of the Commission.

Sec. 64. Be it further enacted, . That all questions

arising under

this

Act,

if

not

settled

by

agreements

Questions settled by

of

the

parties interested

therein, with

the

approval

of

Commis sion.

190

INSURANCE LAws.

the Commission, shall be determined by the Commission, except as otherwise herein provided.

Sec. 65. Be it further enacted, That (a) every em-

ployer who accepts the provisions of this Act relative

to the payment of compensation, shall hereafter keE;lp

Record of Injuries.

a record of all injuries, fatal or otherwise, received by

his employees in the course of their employment, on

blanks approved by the Commission. Within ten days

after the occurrence and knowledge thereof, as provided

in Section 23, of an injury to an employee requiring

medicaf or surgical treatment, or causing his absence

from work for more than fourteen days, a report there-

of shall be made in writing and mailed to the Com- -

mission on blanks to be procured from the Commission

Records of Commis-

for this purpose.- (b) The records of the Commission,

sion.

in so far as they refer to accidents, injuries and settle-

ments, shall not be open to the public; but only to the

parties satisfying the Commission of their interest in
. re~:r;a_on such records and the right to inspect them. (c) upon tion or In- the termination of the disability of the injured em-
capacity(
ployee, the employer shall make a supplementary report

to the Commission on blanks to be procured from the

Commission for the purpose. (d) The said report shall

Content. contain the name, nature and location of the business

of the employer, and name, age, sex, and wages and oc-

cupation of the injured employee, and shall state the date

and hour of the accident causing the injury, the nature

and cause of the injury and such other information as

may be required by the Commission. (e) Any such

employer who refuses or wilfully neglects to make the

report required by this section shall be liable for a

Pe'nalty.

penalty of not more than twenty-five dollars for each refusal or wilful neglect, to be recoverable in any court

of competent jurisdiction in a suit by the Commissjon.

INSURANCE LAws.

191

Sec. 66. Be it further enacted, That every employer

who accepts the provisions of this Act relative to the

payment of compensation shall fully insure and keep

fully insured, unless. othe.rwise ordered or permitted by the Commission, his liability ther~under in some cor-

poration, association, or organization, licensed as pro-

vided by law, to transact the business of Workmen's

Compensation Insurance in this State, or in some mu-

tua1 insurance association formed by a group of em-

ployers so licensed, or shall furnish to the Commission

satisfactory proof of his financial ability to pay direct

the compensation in the amount and manner and when

due as provided for in this Act. In the latter case

the Commission may in its discretion require the de-

posit of an acceptable security, indemnity or bond to

secure

the

payment

of

compensation

liabilities

as

they

1
SecUirlty.

are incurred. Provided, that it shall be satisfactory

proof of the employer's financial ability to pay direct

the compensation in the amount and manner when due,

as provided for in this Act, and acceptable security,

indemnity or bond to secure the payment of compensa-

tion liabilities as they are incurred, if the employer

shall show to the Commission that he is a member of
a mutual insurance company, duly licensed to do busi-

ness in this State by the Insurance C01:p.missioner, as

provided by the laws of this State, or of an association

or group of emplpyers, so licensed, and as such is ex-

changing contracts of insurance with the employers of

this and other States, through a medium as specified

and located in their agreements between each other, but

this proviso shall in no wise restrict or qualify the

right of self-insurance as hereinbefore authorized.

Nothing herein shall be .construed to require an em-

ployer to place his entire .insurance in a singl:) insur-

ance carrier.

'

192

INSURANCE L.A.WS.

Ev:ldeBce of compliance with Sec. 6(1. Refusal to comply.

Sec. 67. Be it further enacted, That (a) every employer accepting the compensation provisions of this Act shall within thirty days after this Act takes effect file with the Commission in form prescribed by it, and thereafter annually, 'or as often as the Commission, in its
discretion, may deem necessary, evidence satisfactory to the Commission of his compliance with the provisions of Section 66 and all .others relating thereto. (b) If such employer refuses or wilfully neglects to comply with these provisions he shall be punished by a fine of not less than $10.00 nor more than $100.00 and after such conviction shall be subject to a fine of not less than one dollar nor more than ten dollars for each day of such refusal or neglect, and until he shall comply with such provisions, and also such employer shall be liable during continuance of such refusal or neglect to an employee, at th~ option of the employee, either for cornpensatien under this Act or at law in the same manner as provided in Section 16.

Certificate.

Sec. 68. Be it further enacted, That whenever an employer has complied with the provisions of Section 66, relating to self-insurance, the Commission shall is
sue to such employer a certificate' which shall remain in force for a period fixed by the Commission, but the Cqrnrnission may upon at least sixty days' notice and hearing to the employer revoke the certificate upon satisfactory evidence for such revocation /having been presented. At any time after such revocation the Cornmission may grant a new certificate to the employer upon his petition.

Substltute systems.

Sec. 69. Be it further enacted, That (a) subject to the approval of the Commission, any employer may enter into or continue any agreement with his employees to provide a system of .compensation, benefit or insurance in lieu of the C()rnpensation and insurance provided by this Act. No such substitute system shall be ap-

INSURANCE Laws.

193

proved unless it confers benefits upon injured employees at least equivalent to the benefits provided by this Act, nor if it r~quires contribution' from tb,e employees unless it confers benefits in addition to those provided under this Act at least commensurate with such contribution. (b) Such substitute system may be terminated by the Commission on reasonable notice and Termlna . hearing to the interested parties if it shall appear that tlon. the same is not fairly administered or if its operation shall disclose defects threatening its solvency, or if for any substantial reason it fails to accomplish the purpose of this Act; and in this case the Commission shall determine upon the proper distribution of all remaining assets, if any, subject to the right of any party at in-
terest to take an appeal to the Superior Court of the county wherein the principal office or chief place of business of the employer is located.

Sec.. 70. Be it further enacted, That all policies in-

suring

the

payment

of

compensation

under

'this

Act,

Knowledge of Injury.

including all contracts of mutual, reciprocal or inter-in-

surance, must contain a clause to the effect tha.t as be-

tween the employer and the insurer or insurers the no-

tice to or knowledge of the occurrence of the injury

on the part of the insured employer shall be deemed

notice or knowledge, as the case may be, on the part of

the insurer or insurers; that jurisdiction of the insured

for the purpose of this Act shall be jurisdiction of t:Q.e

insurer or insurers; and that the insurer or insurers

shall in all things be bound by and subject to the awards,

judgments or decrees rendered against such insured em-

ployer.

Sec. 71. Be it further enacted, That no policy or

contract of insurance against liability arising under this

Polley or contract of

Act shall be issued unless it contains the agreement of !Murance.

the insurer or insurers that it will promptly pay to the

pE,lrspn . entitled to same all benefits conferred by this

'1'94

... ' r .. ~ ~
INSURANCE L.A.ws. -

..Act! and all inst~l~!nents of the compe~sation tha~ . :t:nay

be awarded . or agreed upon, and that. the obligation

shall 'not be affected by any default of the rnsured after

the injury or by any default in 'giving notice required

shall by such poiicy, or otherwise. Sttch 'agreement

he

'or construed to be a direct promise by: .the , insurer in-

SUJ;"ers to the person entitled to compensat-ion enfo'rce-

'able 'in his name.

Policies subject to this Act. lllXceptlons. Ra.tes of Insurance . carriers.

Sec. 72. Be it further enacted, That (a) every pol~cy for the .insurance of the compensation .herein provide~, or ,aga,inst liability therefor, inc.luding all con-

t,r.ac.ts , of mutual, ,recipro. cal or in,te.r-iI nsuran ce, sh.all be deemed to be made subject to the provisions of thts

Act. No 'corporation, association or organization, and no mutua1, reciprocal or inter-insurers s~all enter into .

or make any such policy or contract of insurance un-

less its form shall haye ,been, approved by t]fe Com-

1!lission. (b) This Act shall not apply to policies .of '.in-

_surance against loss from _explos,ion of boilers or fly

wheels or other similar catastrophe hazards.

. .
, . Sec. 73. Be it. further enacte~, That ,(a) the rates

charged by al.l carri'ilrs of insurance, inclu(ling the par-

ties to any .mutu.al, r.eciproca:l, or other plap. or scheme, writing : insur~nce .ag.1~.inst ' ,the . lia~ility: for .co.rnpensa-

tion under this Act, shail be ,fair, reaso11;a'Qle and ade

.quate, with due allowance for . merit :rating, and all

risks,. of the same , kind and degren of hazard, 1;3h~.ll be

written at .the same .rate by the ~arne carrier. The ba&ic

rates for policies or contracts of insurance against H~

bility: for compensation under thjs Act shall be filed
:vifh 'the Insuran~e Conimission.er for hi~ . ~prm~'\l'a~, ,- and

no policy of insurance against such liability s4all be

valid until 'the basic rate thereof has been flied with; ap-

proved and not sub~~qu~ntJy disapproved, . by the in-

r

. !

, , .

i'



~ ....

'

~

-r " 1

suran'ce Commissioner. Ariy plan or scheme for modi-

INSURANCE LAws.

.1,9, 5.

fication of such basic rate,!;! by -physical inspection or experience or merit ' rating' shlill likewise be .#led I with
or the Insurance Commissioner and bY him approved, and'
no ' carrier of insu'rance shall writ{( any such policy contract u:ntil after filing and approval of' a ';basic 'rate therefor and a schedule or plan to 'be employed in producing individual rates: for riskS. ' (b) Each such_insur! ance carrier~ including ' the parties to any niutuai, recip'rocal, or other plan or scheme' writing insurance against the liability for compensation imder this Act; shall re- Report port to the Insurance Commissi.oner as provided by to Comlaw, arid in accordance with such reasonable rules asthe mls.sl.on. Insurance Commis'sioner may at any time prescriqe for the purpose of determining the solvency of the carrier, and the adequacy or reasonableness or' its rates and res,erves; for such purpose the Insurance Commissioner inay inspect all the books and records of such
insurance carrier and of its age.nt or agentsr and examinc its agents, officers and directors under .oath.

Sec. 74. Be it further enacted, That if any section

of the provisions of this Act be decided by the Courts Unconsti-

to

be

unconstitutional

or

invalid,

the

same

shall

njt

tutionality
ot thill Act.

Dffect the validity of this .A,ct as a whole or any part

thereof other than the part so decided to be unconsti-

tutional or invalid.

Sec. 75. Be it further enacted, That this Act, ex-

cept as prescribed in Section 50, shall become effective When March 1, 1921, and Section 150 shall become effective effective.

October 1, 1920.

1

Sec. 76. Be it further enacted, That for the pur-

pose

of paying the expenses

of this

Commission, there

Ta.x for
Qommls8i~

shall be collected from the insurance carriers writing expenreea.

this class of insurapce in Georgia, a tax of one per cent,

of the gross earned premiums, this to be in addition

to the tax collected by the Insurance Department un-

196

iNSURANCE LAws.

der the General Tax Act. This one per cent. commission shall be collected by the Secretary-Treasurer in the same manner said tax is now collected by the Insurance Department. After all of the expenses, including salaries and _traveling expenses of the Commission and such deputies as may be authorized, have been paid the remainder of the money collected by the 'SecretaryTreasurer shall be turned -into the State Treasury in the manner prescribed by law.
Sec. 77. Be it further enacted, That all laws and parts of laws inconeiste;nt with any provision of this Act be, and the same are hereby repealed.
Approved August 17, 1920.



INSURANCE AND INSSURANCE COMPANIES
GENERAL STATUTES
SECTION 1. Incorporation of Insurance Companies............................................Pages 5 to 14
Charters to Insurance Companies ......................................................2388 Formation of Company and Petition ..................................................2389 Form of Certificate to be Issued ..........................................................2390 Corporate Powers ....................................................................................2391 Fee .............~................................................................................................2392 Certificate prima facie evjdence of Corporation's Existence ......:.........2393 Capital Stock ..:................ .........................................................................2394 Organization ..........................,......................................- .........................2395 Directors of Life Insurance Companies ..............................................2395 Stock to be paid in before beginning business ........................................2396 Stock may be increased or decreased ................................................2397 Stock deemed personalty ......................................................................2398 Powers of Life Insurance Companies........................................................2400 Of Fire Insurance Companies ..............................................................2401 Of Accident Insurance Companies ................................................:..2402 , Of Live Stock Insurance Companies ...........:......................................2403 Contracts to be evidenced by policy ...........................................'...............2404 Dividends ............~ .....................................................................................2405 Stock Dividends ......................................................................................2406 Participation by policyholders, net profits ..............................................2407 Insurance Companies Investments by..................................................Pages 14 to 17 Investments by Insurance Companies....!.............................................2408 Building which may be owned by corporation..................................2409 Reinsurance and Reserve ........................:...............................................2410 Liability of Stockholders ..............................................:.......................2411
SECTION 1 (a). Insurance Department ........................................................:.................Pages l7 to 24 Officers of Department, Seal, Records, Reports ........................................2412 (a)
Compensation of Officers ....................................................................2412 (b) Appropriations for payment of salaries ............................................2412 (c) Collection Fees and Taxes ..................,......:........................................2412 (d) Fees, Taxes ..............................................................................................2412 (e) Examination ,of Insurance Companies ........................................................2412 (f) Orders, how enforced ............................................................................2412 (g) Blank forms furnished for reports................................................................2412 (h) Additional Rules and Regulations ....................................................2412 (i) Supervision of companies before organization:.........................................2412 (j) Fire Inspector Duties and Powers ......................................................2412 (k) Inspector's authority to go upon premises ......................................:.2412 (I) Inspector's compensation ......................................................................2412 (m)
SECTION 2. Insurance Companies, How Authorized to do Business..,...............Pages 24 to 28
1!:1surance Commissioner ......................................................, .................2413 Companies must be licensed ................................................................2414 License,' How Obtained ..........................................................................2415 Issuing of License ............................................................. __:.................2415 (a) .Revocation of License .........................................................................~2415 (b) Forfeiture of License ....,............................:............................................2416 Forfeited License, how renewed ...................:......................................2417
,

.

198

INSURANCE LAWS.

SECTION 3.
Bond and Deposit Required .......................'.........................................Pages 28 to 38 Transact Business, when ......................................................................2418 Deposits by Companies of other States ............................................2419 When notice of loss is given, bonds to be retained............................2420 Bond by Receiver .....................................,.:...........................................2421 Conflicting claims .to bonds ..................................................................2422 Withdrawal ,by_company from the State ............................................2423 Withdrawl).l of Fire Insurance Companies ......................................2423 (a) When amount .reduced below, amount required................................2424Poiicies.. must be satisfied before withdrawaL...:~...............................2425 Deposit required of Domestic Mutual Fire Insurance Companies..2425 (a) Amount of assets required, Emergency Clause................................2425 (b) Deposits of J;.ife and Accident Gompanies of other States............2426 Of.Home Companies ....................................:.........................<................2427 Measure of the .required deposit ..........................................................2428 Gertificate by Insurance_Companies ..................................................2429 Effect of failure to make deposit ...................,....................................2430 C:h!mges of securities deposited ..........................................................2431 Approval of deposits .......................,.............................'.........................2432

SECTION 4.
Regulation of Insurance Companies ..................................................Pages 38 to 44 Investigation by Commissioner ...............-......................................:...:..2433 Calculation of Reinsurance Reserve ....................................................2434 C~ll on .Stockholders ....-.-.-.........................................................................2435 Cakulations of Reinsurance Reserve by Commissioners of . other States .................::."..;..,.........c....:.-........:.....................:.......................2436 Proceedings when home companies are insolvent..............................2437 . Calculat-ion of net value of -Life Policies ..,...........L...........................2438
Where net value of policies is not on hand......................................2439 Valuation by Commissioner of other States.'.....................................2440 Commissioners 'on sale of stock, and sale. of Life Insurance Pol-
' icies and Agency Contracts 2............................. :..:...... ...................2440 (a) Rebates and Discriminatory Contracts p~ohibited..........................2440 (b)

SECTION 5.

Proceedings in Case of Insolvency .......~..................................................Page 44

1Proceedings where home companies fail to maintain standard......2441 If Comptroller knows of insolvency ................:......:..:.....:....:..............2442

~ j .,

'f-

SECTION 5 (a).

Commissioner Taking Control of Pr~perty and Business of Life

1 Insurance Company ................:...,..........c.........., :....: .-.....~...Pages 45 to 48

Proceedings to take. control ............................................................,...2442 (a)

Injunction Hearing and Order..............................................................2442 (b)

Liquidation ...............................::.............................................................2442 (c)

Assistants and their compensation ......................................................2442 (d)

Rules . and Regulations ............,...-.,........................................................2442 (e)

.. Report of Commissioner ...............................~........................................2442 (f)

. {. ~ ~'

. ''

SECTION 5 (b).

Receivers for Insurance Companies ........................................................Page 48

Method of putting-- Companies in hands of Receivers.....................r2442 (g)

\ i .1., . .



19Y

l

SEC'IJON 6.

I

Agents :of Insurance Gompany :.l...:......................................................Pages 49 tor 54

-Definition oL Insurance .Agent ...........................................................:2443

,Penalty on . agents of unauthorized companies..................................2444

Civil. Liability ..........................................................................................2445 :Agent~s License -------------------------;2445 (a) Requisites to .Obtain Licens~Revocation.......................................,2445 (b)

Statement showing agents ....................................................................2445 (c)

.Corporations soliciting or :writing Life Insurance............................2445 (d)

Fal,e Representation Unlawful ....:.....................................................2445 (e)

Service on .Non-Resident Companies .............................:....................24'46

Attorney may be appointed to receive service ................................2447

Company not complying, Fees, etc. ..................................................2448

SECTION 7.
Com'ity to Foreign Insurance Companies..............................~.....:!!........:Page 55 When charges on companies of this State greater than imposed .
by this State ..............,..,------:--;T ...............................................2449

SECTION 8.
Pages 55 to 64 Assessment and other companies reports ..................................................2450
Life Insurance on assessment plan ......................................................2451 Policies and Certificates ......................................................................2452 Reserve ......................................................................................................2453 Societies to which this" applies ............................................................2454 On assessment plan; policies, how WI-itten..........................................2455 Life Insurance on Mutual Plan, regulations and requirements....2455 (a) Licenses to Agents of Assessment Companies....................................2456 Penalty for fraudulently pro'curing insurance..................................2457 Annual Repol't of Business ..................................................................2458 Fees to be paid ......................................'..................................................2459 -Failure to make such report or pay tax............................................2460 Exemption of Fraternal, Secret and Industrial Societies................2461 License of Fidelity Companies..............................................................2462 Live Stock and Steam Boiler Insurance, companies subject..........2463 Commissioner and inspectors may administer oaths........................2464 Law applicable to individuals ....,.........................................................2465

SECTION 9. Pooling ....................................................................................:............:..Pa' ges 64 to 67
-Unlawful for companies to make contracts affecting competition..2466 Complaints by citizens and citation.............,.....................................,2467 Practice. as to testimony................................................................................2468
Forum ---------------:-- ---- ---------- -- ----.-----,---,---, ...., ............................................2469

I ..

. .

SECTION 10.

'

Fire Insurance Contracts ....................................................................Pages 67 to 72

Contract of Fire Insurance....................................................................2470

Standard form of Policy. for.. Fire lnsurance......................................2470 (a)

Policies must contain the .entire contract............................................2471

Interest of assured ..................................................................................2472

Insuring interest of another..................................................................2473

,Insurance. on changing property ---------- ------------------------------------------------~2474

Construction ............................................................................................2475

INSURANCE LAws.
FIRE INSURANCE CONTRACTS-Continued. Loss, what is ............................................................................................2476 Umpire to appraise loss, appointment notice and service................2476 (a) Contrary stipulation void ......................................................................2476 (b) Loss unknown to the parties................................................................2477
~~~1f:~~o~,y g~~sdrf~th..::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::~~:~g
Effect of misrepresentation ....................................................................2480 Concealment ........... 2481 !. .............. .............................................., .................. Increasing Risk .........................................................................................2482 Willful misrepresentation voids policy ..............................................2483 Effect of alienation ................................................................................2484 Transfer to one of several ....................................................................2485 Partial Sale ..............................................................................................2486 Transfer after loss ................................................,.................................2487 Or by operation of law ..........................................................................2488 Second insurance .................................................................................. 2489 Prescribing Regulations ........................................................................2490
SECTION 11.
Fire and Casualty Insurance Companies........................................Pages 72 to 74 Regulating business of Fire and Casualty Insurance Companies....Z491 Affiqavit of President or Chief Officer.....................,............................2492 Investigation of Complaint of Violations of Law..............................2493 Forfeiture of right to do business..................:.....................................2494 Failure to pay expense of examination.................................................2495
SECTION 12.
Life Insurance .........................................................:.............:................Pages 74 to 76 Contract of Life lnsurance......................................................................2496 By whom taken ......................................................................................2497 To whom to be paid ............................................................:.................2498 Law of Fire Insurance applicable ......................................................2499 Medical Examinations .....................................................................:....2499 (a) Self-caused death releases insurer.......................................................:2500 Time, how counted ................................................................................2501
SECTION 13.
Industrial Life Insurance .'...............................:.....................................Pages 76 to 84 Industrial Life Insurance defined ......................................................2502 Companies of th!).t character ..............................................................2503 Requirements ..................................................:.........................................2504 Deposits by ..........:.....................................................................................2505 Companies subject to this law..............................................................2506 When laws apply ....................................................................................2507 Solvent assets, amount of..............................................,..............'.........2508 Examinations by Insurance Commissioner ........................................2514 h~eome or guaranty certificates ..........................................................2514 (a) Incorporation of industrial companies rights and powers, deposits ...................................................................:........................2514 (b) When authorized to do o~;dinary Life Insurance Business................2514 (c) Mutual companies may become stock companies..............................2514 (d) Regulation of Mutual Assessment Companies....................................2514 (e) False representations in regard to policies prohibited...................:2514 (f) Receiving premium after insolvency, fraudulent reinstatement.. ..2514 (g)

INSURANCE LAWS.

201

Industrirtl Life Insurance-Continued.

Fraudulent statements and claims prohibited..................................2514 (h)

Agent or solicitor required to procure license..................................2514 (i)

.Powers of Insurance Commissioner or Deputy................................2514 (j)

SECTION 14.

.

Marine Insurance ............................:.....................................................Pages 84 to 87 Contract of Marine Insurance .....................:........................................2515
Unlawful commerce ................................................................................2516 Double insurance ..............................................................~.....................2517
Implied warranty .:..................................................................................2518 Illegal voyage ............:...............................................................................2519 Deviation ...................................................,..............................................2520
~~~~~n~!n~:e~;e~sk:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::J~~~~

Increase of risk ......................................................................................2523 Open policy ..............................................................................................2524
Value, how ascertained ....................................::..................................2525 Former rules applicable ........................................................................2526 Rights of owners of merchandise on vessels ......................................2527 _Owner or master of v~ssel must care for damaged property............2528

SECTION 15.
Mutual Insurance .................................,................................................Pages 87 to 88 Contract of Mutual Insurance ............................................................2529 1 By-Laws ...........................................~........................................................2530 Officers agents of all ..............................................................................2531 Liability for reducing funds ................................................................2532 Stricter good faith required ..................................................................2533 Agencies of foreign companies to be licensed....................................2534

SECTION 16.
8S Mutual Companies Insuring Against Loss by Burglary..................Pages to 92 When. to be licensed ................................................................................2535 Prerequisites to obtaining license ........................................................2536 Copy of charter and statement of condition to be filed..................2537 Statement to be renewed........................................................................2538 Certificate of authority before doing business................................2539 Line of business and reinsurance reserve .....................,....................:f540 Membership fee and premium ........,...................................................2541 Service on appointed attorney and otherwise........................,.........2542 Penalty .....................................................................................~................2543
SECTION 17.
Amount of Recovery and Damages ....................................................Pages 92 to 93 Amount of recovery ..............................................................................2544 Valued policy ..........................................................................................2545 Estimation of value .....................................................................,..........2546 Privilege of Rebuilding ..........................................................................2547 Recovery back of insurer........................................................................2548 Insurance companies shall pay damages, when..................................2549,
SECTION 18.
Fidelity Insurance ......................................................................,.......Pages 93 to 105 What companies may become sureties on bonds..........................,.....2551 Estopped to deny corporate power ...............................................:......2552

2,02

INSURANCE LAws. ' 1:,;,:..' !~ ., . \ j f "j -

FIDELITY INSURANCE-Continued. Venue of suits on such bonds............................................................2553 Deposit required :...:.::..:....!....-...~--- -2553 (a) Boljds of City-,- County and State Officers............................................2554 Attachment Bonds .:.......,.:!...:.'.....:.....!....................................................2555
Remedies in case of defaults . ..............................................................2556 Deposit to be made before becoming security....................................2557 C:ollec~ion of coupons, faith of the State.....~......................................2558 Pro'ceedings when loss occurs, Receiver............................................2559 When excess of bonds shall be returned..........................................2560
When a company desires to withdraw from the State....................2561 Withdrawal of deposit by retiring company, how accomplished,
' conditions specified ......:::........:..:.::.:........:......:...................,..........2561 (a) Order tu Treasurer to surrender bonds..............................................256I' (b) Liability. Notice of' suit. Judgment Defense. Subrogation,
Reimbursement .....:.:.:.........:....:::...............:..:::::..:.........................:.2561 (c) Amount of bonds must be maintained..............................................2562 Contracts of" suretyship between common-carriers and their
employees ....:...:..:...::.....::.....::::.:........:..:::c.......~ ..:......................:....2562 (a)
Cancellation of bond ..............................................................................2562 (b)

SECTION 19.
Suits against Insurance Companies ....c:....:.. .:................................Pages 105 to 106 Suits against Insurance Companies ....................................................2563 Sen r.ice on non-resident assessment Insurance Companies..............2564

SECTION 19 (a)

Fraternal Beneficiary Orders __________ __ _-________ .'..........:......................Pages 106 to ll2 Defined .....................................................1........................................-.........2564 (a)
!:~:!~ent~-.---p~~~~;;t~-:::.:__:::::::::::.:::::::::::::::.:.___~:::::.::.::::::::::::::__::::::-J~~ ~~~

By what law governed..........................-...'...............................................2564 (d)

Existing associations I!ep.orts .....,........................................................2564 (e)

Associations of pther states ................................................................2564 (f)

Reports ....................................................................................................2564 (g)

Re ports, failure to make ......................................................................2564 (h)

Service on such associations ................................................................2564 (i)

Recorfl of suits ...............-,....:,................................................................2564 _(j)

Not applicable to certain orders ........................................................2564 (k)

Non-Resident Fraternal orders ............................................................2564 (l)

License ..............................'-....................................................................2564 (m)

Incorporation of Domestic Fraternal Orders....................................2564 (n)

License Regulation .................u ......: ...... .... : ." 2564 ---------....... ........................ (o)

. Form of government ..............................................................................2564 (p)

'

)

SECTION 19 (b)

Regulation of Certain Fraternal Benefit Societies..:.....................Pages ll2 to 138 Fraternal benefit society Defined ......:.........::......................................2564 (q)
Lodge system Defined.......-..:..:::.:...........................................................2564 (r) Representative form of Government Defined.........>...........................2564 (s) Exemptions .....,................L ..:.......:.-...:.:...'...............................................2564 (t) Benefits ......................................................................................................2564 ( u)
Beneficiaries ..............................................................................................2564 (v) Qualifications for Membership............................................................2564 (w) Certificate .......,..........:..................................................- .........................2~ ~ (x)

INSURANCE LAws.

203

REGULATION OF CERTAIN FRATERN,AL BENEFIT SOCIETIES-Con. Funds ........................................................................................................2564 (y) Investments ..............................................................................................2564 (z) Distribution of Funds............ c 2564 (aa) . Organization ............................................................................................2564 (bb) Powers retained Reincorporation Amendments................................2564(cc) Mergers and Transfers..........................................................................2564(dd) Annual License ........................................................................................2564(ee) Admission of Foreign Society.........,.................................,..................2564 (ff) Power of Attorney and Service of Process......................................2564(gg) Phice of meeting, Location of office....................................................2564 (hh) No Personal Liability .........................................................................2564 (ii) Waiver of the Provisions of the Laws.............................................~.2564 (jj) Benefit nonattachable............................................................................2564 (kk) Constitution and Laws. Amendment................................................2564 (ll) Annual Report ...:..................................................................................2564(mm) Provisions to Lnsure Future Security............................................2564 (nn) Provisions in lieu of Requirements of two preceding sections......2564(oo) Examination of Domestic Societies....................................................2564(pp) Application for receiver........................................................................2564 (qq) Examinatin of Foreign Societies............................................................2564(rr) No adverse Publication ..........................................................................2564(ss) Revocation of License..............................................................................2564 (tt) Exemption of certain Societies............................................................2564 (uu) Taxation ..............................................."...............:...............................~...2564 (vv) Penalties ..................................................................................................2564-(ww) Applicable to what Societies................................................................2564 (xx) Rules and Regulations by Insurance Commissioner........................2564(yy)
Fraternal Benefit Societies,-Benefits..............................................Pages 138 to 140 Fraternal Benefit Societies-Payments.....................!..................Pages 140 to 143 Castialty and Liability Insurance Companies................................Pages 143 to 149 Deposits by Life Insurance Companies............................,.............Pages 149 to 151 Tax Basis and Rate ............................................................................Pages 151 to 152
Insurance Companies ..................................................................................6 Georgia Workman's Compensation Act........................................Pages 152 to

THE GEORGIA WORKMEN'S COMPENSATION ACT
ABOLITION. Of common law defenses, when ......,................................................. Of defenses when both employer and employee reject Act............ Of all rights and remedies of employee not granted under Act....
ACCEPTANCE: Of Act presumed unless notice to contrary ........................:............. Of Act after having first rejected ....................................................
ACCIDENT: (See Injury) Injury resulting from only included .............................................. "Arising out of and in course of employment".............................. Disease, not to be included, when .................................................... Occurring prior to taking of effect of Act not covered ................

Section
16 18 12
4 5
2 (d) 2 (d) 2 (d) 10

,

204

INSURANCE L AWS.

~CCIDEN'I: (See Injury) - Conti nu ed.

1 DUe to wilful misconduct -------- ------------ ----- 14
intehtional self-inflicted injury ................................................ - 1~

attempt to injure another ___________ ___ ___ ......,....!...... ,........... ............. 14

intoxication ...............................................................,..........:...,....... 14 '

/

wilful failur e or refusa~ to use safety appliance ...................... 14

failure to perform duty required by statute ............................ 14

wilful breach of any rule or regulation, when ......c................. 14

Must l:_le 30 days prior to notice of rejection, when ...................... 5

Occurring out of the State ................................................................ 37

Death resulting from .................................................................,...... 38

Employee shall give immediate notice of ............................:..... 23

- P enalty to employee for failure to give notice promptly................ 23

Manner of giving notice of, by employee ........................................ 23

- Employer must keep record of, when ..........................................:... 65 (a)

- report to Industrial Commission, when ......................'............ 65

What accidents to be reported .......................................................... 65

What accident reports by employer to Co ntain .............................. 65

P enalty to employer for failure to r eport .......................................... 65

Supplementary report must be mad e by employer, wht:n

65

ACCIDENT REPORTS TO INDUSTRIAL COMMISSION
Emp1oyer must send reports to, when .................:..........................' '65 P enalty for failure to report to _.........................'............................... - 65 What reports to contain ...................................................................... 65 ' lndustrial .Commission shall tabulate ......................:....................... 54 Not open to public inspection, except .......................................... 54 Not to be used as evidence in suit against employer _...................... 54

ACT:

Becomes effective when ..................................................................... ..

All laws .inconsisterii with repealed ........:...........................................

If any section held unconstitutional ................................................

Penalty for failure to comply with provisions of .......................... Does not apply to whom ......................~..............:..............................

Does not apply to what policies of insurance ................................

ACTIONS: RIGHT OF

,

At law when employer fails to comply with Act ............................

75' 77 74 67 (b) 15 72
67 (b)

ADOPTED CHILD: Included as child

39 (c)

AGREEMENT , Between employer and 'employee in r egard to compensation shall
be filed with Commission for approval --------- 55 When signed and parties disagree as to compensation -------- 56 Can not relieve employer, except ------------------- 7
When employer and employee fail to agree in regard to compen-
sation ------------------------------------ 56 Between employer and employee for substitute system .....:......:. 69 All must be subject to provisions of Act ......................_..--:--------- ,6
ALIENS:
Compensation payable to alien dependents, when............................ 38 (e )

'

INSURANCE LAWS.

205

APPEALS: From award of Commission, manner and on what grounds............
From judgment of Superior Court to Court of Appeals ................

Section
59 59

ARM: Compensation for loss of -- ~--- 32 Loss of both ........................................................................................ 32

ASSIGNMENTS No right of for compensation ............................................................. 22

. ASSUMED RISK: Abolished as defense, when ................................................................ 16
ATTORNEYS: Fees shall be reasonable and subject to approval of commission.... 63

ATTORNEY GENERAL: To be member of Industrial Commission .........................................: 50

AUTOPSY:

Employer and Industrial Commission may require one

28

AWARD:

.

By Industrial Commission .................................................................. 57

May be reviewed by Commission, how and when............................ 45

By Commission conclusive as to questions of fact .......................... 59

May appeal .from award by Commission, when ............................ 59

BOILER: Act does not apply to policies covering explosion of ...................... 72 (b)

BOY: Defined ...................................................................................................... 39 (c)
When presumed wholly dependent ................................................ 39 (c)

BURDEN OF PROOF : On employer; when . 14

BURIAL EPENSES:

Employer

liable

for,

when

\
-------------------------

38

CASUAL' EMPLOYEES: Act not applicable to................. ....................... ........................2 (b) & 15

CATASTROPHE HAZARDS: Act does not apply to policies against loss from

72 (b)

CHARITABLE INSTITUTIONS : Act not applicable to ...,........................................................................ 15

CHILD:
Defined .................................................................................................... When presumed wholly dependent .................................:.............. When dependency terminates ............................................................ What receipt from sufficient ..............................................................

39 39 (c)
39 46 (a)

.IN,SURANCE LAws.

CHILD LABOR. LAW: .
Not repealed or altered -------- -------...........,.................................... Minors working in violation of included ..........................................

Section
2 (h) 2 (b)l

CLAIMS:
Must be filed with Industrial Commission within one year ........ 25 Limit if time for making in case of minor .................................... 48

COMMISSIONER OF COMMERCE & LABOR: To be a member of Industrial Commission .................................... 50

COMMON CARRIER: Act not applicable

to

.........~... ...................... ..................................... .

15

Railroads engaged in interstate commerce excluded .................... 9

Employees of, rights under Federal Act not affected ...................... 9

COMPENSATION:

Computed on basis of annual earnings, when .............................. 2 (c-1)

How computed when injured not engaged in services of same

employer ........................................................,................................... 2 (c-3)

When computed on basis of 300 times average daily earnings...... 2 (c-4)

How to determine amount for each installment period ............ 2 (c-5)

When not computed on basis of 300 times daily earnings............ 2 (c-5)

How proportioned in case of joint employers ................................ 49

When payable ...................................................................................... 30

Not payable for first fourteen days, except .................................... 29

When may be paid monthly or quarterly ........................................ 42

Amount paid in error may be deducted, when ........................ 41

Specific injuries, amount payable for .............................................. 32

For loss of use of member, amount payable .................................. 32

Amount payable for loss of any two members .......................... 32

Amount payable for total disability .............................................. 30

partial disability .......................................................................... 31

Maximum payable when partial disability begins after total........ 31

I

Maximum in case of death .............................................................. 38 (d)

Maximum amount payable under Act in any case :....................... 40

For death when no dependents, amount payable .......................... 38 (a)

when dependents wholly dependent .......................................... 38 (b)

when dependents partially dependent ........................................ 38 (c)

Payable only to dependents and only during dependency...........: 39

When payable to surviving spouse ...::............................................. 39

To whom pa'yable if surviving spouse dies .................................. 39

When may be apportioned between surviving child and' spouse.... 39
Amount payable t? ~lie~ ?r foreign dependents ........................ 38 (e)

In event of pre-ex1stmg InJury .......................................................... 34

When receiving for one injury how calculated in event of another 35
In event of a second specific injury ................................................ 36

Ceases in event of death due to other causes than injury ............ 38

Forfeited when employee refuses to accept suitable work, unless.... 33

When not payable on account of employee's failure to give notice 23

Effect on payment when employee refuses surgical treatment.... 28

Barred unless claim filed within one year .................................... 25

Not _paya~le for inj?ry_ due _to. wilful misconduct ------------: - 14

mattteenmtpwtnatlo s~IlllfJU:mrfehctaendotIhneJrUry_____-_-_-_--,--__--_-_-_.--,-_-_-_-__-_-_-_-_-_-_--,--_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-__-_-_-_-_-_-_-_-_--_

14 14

..

lN&URANCE LAws.

I ~ 1 l .,

, ! .: , . ,

207 t,c:,

intoxication ...................................................................................... failure to use safety appliance .................................................. failure to perform statutory duty ............................................ breach- of. rule or regulation .:.................................................... How receipted for by minor ............................................................ Receipt for by widow or widower sufficient .................................. Exempt from claimJ> of creditors ........................................................ No.t assignable ...................................................................................... Priority of lien against assets of employer........................................ Collectable from immediate employer, when .............................. When employer and employee disagree in regard to ................ Agreement in reg&rd to. s.hall be filed with Commission for approval ..............................:............................................................. When employer provides substitute system ..................................

Section
14 14 14 14. 46 46 (a) 22 .
22 21 20 56
55 69

CONSTITUTIONALITY OF ACT:

In event of any section held unconstitutional

74

CONTRACT: l None shall operate to relieve employer, when .............................. 7

CONTRACT OF EMPLOYMENT: Presumed to continue subject to provisions of Act ...................... 6

CONTRACTOR:
Liable for "compensation to ep1ployee of sub-contractor................ 20 May recover from sub-contractor amount compensation paid,
whf')n --'----- 20 When injury occurs on premises of principal contractor..~......... 20

CONTRIBUTORY NEGLIGENCE :

As a defense abolished, when

16

COST : > May be assessed against, when
COUNTY: Shall not have right to reject Act .................................................. 'Employee of, can not reject Act ......................................................
COURT OF APPEALS: (See Superior Courts) Appeal may be made to from Superior Court .................................. Shall prescribe rules and procedure for appeals from Commission Industrial Commission may certify questions of law to.......>.
DEATH: Resulting from causes other than injury, compensation to cease Resulting from accident when rio dependents .............::................... when dependents wholly dependent ........................................ when dependents partly dependent -------- -~-- Compensation to dependents to begin, when .............................. Maximum compensation payable to d_ependents.............................. Resulting from employee's.refusal to submit to surgical treatment
DEFENSES ABOLISHED: Contributory. negligeric~J, when ..........................................................
Negligence of fellow servant, when ------

61
8 8
59 59 59
38 38 (a) 38 (b) 38 (c) 38 (d) 38 (d) 28'
16 16

208

INSURANCE LAWS.

Assumption of.. risk, when .............................................................. When employer fails to report accident to Commission............... When both employer and employee rej ect Act ..............................

Section
16 65 18

DEFINITIONS :
Boy ......................................................'...................................................... Girl ............................................................................................................ Child .......................................................................................................... Parent ....................................................................................................... .
Injury ' Earnings .................................................................................................... Employee ..................... ............................................................................. Employer - --~ - --' ...................... .............................. ...........................

39 (c) 39 (c) 39 (c) 39 (c) 2 (d) 2 (c-7) 2 . (b)
2 (a)

DEPENDENTS:
Compensation payable only to and during dependency .................. 39 Who are not conclusively presumed to be wholly dependent.... 39 (a-b-c) Compensation payable when no dependents .................................. 38 (a) Compensation payable when dependents wholly dependent........ 38 (b) Compensation payable when dependents partially dependent .... 38 (c) How death benefit divided among partial dependents .............. 39 When payments to begin to dependents ......................................'.. 38 (d) Maximum compensation paya ble .to .................................................. 38 (d) Dependency . must exist three months prior to accident .............. 39 Depend ency of widow or widower terminates with remarriage.... 39 When dependen;y of child terminates .............................................. 39 Where both total and partial and total die, remarry or cease to be
dependent partial to receive compensation .............................. 39 When employer makes payments to depend ent subsequent in
right to another ..................,...................................... .................. 46 (d) Same as employee, when ............ ................ .................... .................. 2 (b) When not a citizen or resident of U. S. or Canada ..................... . 38 (e)

/ DISEASE: Excluded from Act ........................................ .................. .....................

2 (d)

DISMEMBERMENTS: (See Specific Injuri es )

DISPUTES: Jurisdiction of ...................................................................................... 64

DOMESTIC SERVANTS:

Act not applicable to .. ........

15

EARNINGS:
Defined ............ ......................................................... ............................... 2 (c-7) Compensation computed on basis of annual , when .................... 2 (c-1) Annual to be 300 times average daily ... ......................................... 2 (c.4) When not computed on basis of 300 times avrage daily .......... 2 (c-5) When yearly computed on basis of similar employments ........ 2 (c-6) When compensation not computed on basis of annual earnings .... 2 (c-3) Not to include overtime nor special muneration ...................... 2 (c-7)

INsuiu:NcE LAws.

~09

EMPLOYEE: (See Compensation)
Defined ...................................................................................................... Those Act not applicable to .............................................,............ Of r~ilroads engaged in interstate commerce,, Act does .not
apply to ..........................................................................................
Of State, municipal corporations cannot reject Act .................... Casual employees excluded from Act .............................................. Minor included as .............................................................................. When in employ of two employers .................................................... Presumed to have accepted Act when .............................................. Having rejected Act may .waive exemption when .......................... When mentally incompetent guardian may exercise rights............ When may file suit at law ................................................................ Not relieved from failure to perform statutory duty ...................... Rights and remedies not granted under Act excluded................ Sues under common law when rej ects Act ........................................ Dece\ised, legal representative included as .................................... Shall give immediate notice of accident ........................................ Shall accept medical attention ........................... ~.............................. Penalty for refusing to accept medical attention .......................... Shall submit to medical examinations, when ..:........................... Refusal to accept suitable employment forfeits compensation,
when ..................................................................................................

Section
2 (b) 15
9 8 2 (b) 2 (b) 49 4 5 47 67 (b) 13 12 17 2 (b) 23 26 26 28
33

EMPLOYER:
Defined ...............................'................... .................................................... 2 Those Acts not applicable to ............................,........................... 15 Presumed to have accepted Act, when .......................................... - 4 Defenses abolished when r ejects Act ......................:........................... ' 16 D_efe~~es :vhen emplo~e~ r ejects Act ................................._................... 17 Liabihty m case of JOIDt employers ....,........................................... 49
Shall fil e with Commission evidence of compliance in regard to insurance, when --- ----- -~---------------- ------ 67
Liability of when failing to comply with Act ........................:... 67 (b) Shall insure his liability under Act when ...................................... , 66 Having r ejected Act may waive exemption when ...................... 5 Legal representative of a deceased same as employer................ 2 (a) Trustee of .............................................................................................. 2 (a) Receiver of ............................................................................................ '2 (a)
Rights cif against insurer ...................:.................................................. 70 Not relieved by contract or agreement..........:..................................... 7
Not relieved from penalty for failure to perform statutory duty.. 13
Reports to Commission not to be used as evidence in suit against 54
Shall insure payment of compensation as provided in Act ............ ll Insurer of included in definition of employer when applicable.... 2 (a) Shall furnish medical attention ................................................:... 26 May provide a substitute system, when .......................................... 69 Shall keep record of injuries ............................................................ 65 (a) Shall furnish report of injury to Commission within ten days.... 65. (a) What injuries shall be reported .................................................... 65 (a) Shall make supplementary r eport, when ........................................ 65 (c) What report of accident to contain .................................................. 65 (d) Penalty for failure to make .............................................................. 65 (e)

210

lNSUR+NCE LAws.

~' J ~\

EMPLOYMENT: Contract of, either written or implied ................................................ By same employer .defined for purpose of computing annual -... earnings.''--"'~--'-''--:....
EMPLOYMENTS ACT NOT APPLICABLE TO:
~~:!lo~e~~~i:ress :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::..\~~-----~
Charitable institutions ........................................................................
Domestic servants ---------------4:................. Farm laborers ..:..................................................................................... Employers with less than tern employees in any business .......

Section '
2 (b)
2 (c-2)
15 15 15 15 15 15

EVIDENCE: 1Employer's report to Commission not to be used as........................ 54
EXAMiNATIONS: (See Medi~al Examil~ations)

EXECUTION: .> Shall not he issued on judgment, when .............................................. 60

EXEMPTIONS: 6tnpensation exempt ........................................................................... 22

EXTRA TERRITORIAL : Accidents occun:ing, outside of State ................................................ 37

EYE:' '
Compensation for loss of ................................................................ 32 Loss of vision in both .................................................................... 32

FARM LABORERS : Act not applicable to ............................................................................ 15

FEDERAL ACT 0Fl908 Liability imposed by not affected .................................................... 9

FELLOW SERVANT: Negligence' of as defense abolished, when ...................................... 16

FINGER: comp!lnsation for loss of .................................................................. 32

FLY WHEEL: ~ct does not apply to policies against loss from ........................ 72 (b)

FOOT:
Compensation for loss of ...............................................,................ 32 loss of both feet .................................................................................... 32

FRAUD: When order or decree of Commission procured by ..................

FUNERAL EXPENSES:

, .

Employer liable for, when ................................................................

GIRL: ' ' Defined ..............................................~....................................................... W~en presumed wholly dependent ....................................................

59 (2)
38
39 (c) 39 (c)

GOVERNOR:

,

To-appoint two members of 'Industrial Commission ......................

'

/

50 .

I'
211

GUARDIAN: May ~ct for employee who is mentally incompetent ......................
HAND: (See Members) Compensation for loss of ....:...............................................................
Loss of both - HEARING, LOSS OF:
Compensation for loss in both ears ..............................................
HEARINGS: Before Commission .............................................................................. By Commission when parties qisagree as to compensation ........ Shall be held in county of a,ccident, unless ................................
HERNIA:
~~~ic~0vt~~~t~-~~if~~:.......:..~....:....;.:..:...~....~::~..::..::::::.:.._::::::::::::::
Employee must submit to operation, when .................................... When employee refuses operation no compensation payable..,.....
HOSPITAL SERVICES: (See Medical, Surgical & Hospital Services)
HUSBAND: When pre.sumed wholly dependent ....................................................
INDUSTRIAL COMMISSION: Created ....................................................................................................
To be known as -- Members to consist of .......................................................................... How appointed .................................................:.................................... Qualifications -~- - Those appointed to devote entire time to .................................... Salary, amount and how payable ...................................................... May appoint secretary and remove him .......................................... May employ other clerical assistance............................................... Members and assistants entitled to traveling expenses, when...... How salaries and expenses paid .................................................... Shall be provided with offices ............................................................ Expenses of Commission how met...................................................... Shall furnish free to employers and employees blank forms.... Employers shall file evidence with in regard to compliance with
Act as regards insurance ............................................................ May require proof of employer's financial ability to pay comp.... May require surety or bond .............................................................. Shall issue certificate to employer, when ......................................:. Jurisdiction of ...................................................................................... How attendance of witnesses enforced ............................................ M~y make rules .................................................................................... Other powers ..............L .....................~-- Sheriffs of State to serve all subpoenas of .................................. Three members to constitute quorum ............................................ May hold sessions at any place, when .......................................... May appoint deputies to subpoena witnesses, etc. ........................ Authority in case of delayed .notice of accident ........................ Claims must be .filed with, when .................................:....:............. Authority with reference to medical attention .......................... May have medical examination made when ................................

Section
47
32 32
32
57 56 56
2 (e) 2 (e) 2 (e) 2 (e)
39 (b)
50 50 50 50 50 50 51 51 S1 51 (c) 51 (d) 52 (a) 76 54
67 66 66 68 64 53 53 53 53 53 52 (c) 52 (b) 23 25 26 62

21~

INSURANCE LAws.

May apportion compensation between surviving child and spouse.
Employer shall make report of all accidents to -------------------------Employer's report not for public inspection, except -------------------Shall tabulate accident reports and publish _in annual report.. .. Records of accidents not open to public except .......................... Shall approve insurance policies ........................................................ May permit. lump-sum-settlement and fix amount............................ When deemed expedient may authorize lump-sum-settlement
paid to trustee -------------------- ------------------------------------------With its approval payments made in error may be deducted______ May authorize compensation to be paid monthly or quarterly,
when ------------- ---~---- -- --------------------'------ ------------------------ ----------Notice of rejection, and waiver and acceptance must be filed with To approve rules and regulations adopted by employer__ ______________
May require an autopsy ----------- ----------------------------------------'----------------May direct employee to submi~ to medical examination when.... Authority when employee refuses suitable employ.ment.. ________________
Employer may apply to when in doubt as to rights of dependents
May review an award or settlement, when ----------------------------------Parties may appeal to when disagree as to compensation..............
Settlements approved, when ------- ------------------------------------------------Shall determnie disputes in sullli_Ilary manner.., ....,-------------------------Application to review award bY-- ---------------------------------------------------------Final award by conclusive as to question of fact.. _________________:_______ _ Grounds for setting aside order or decree__________________________________________ May assess costs in proceeding, when________________________________________________
May certify questions of law to Court of Appeals---------------------------Agreement between employer and employee in regard to com-
pensation shall be filed with for approvaL........:....................... Shall approve any substitute system.................................................

Section 39 65 54 54 65 (b) 72 43
44 41
42 5 14 28 28 33 46 (d) 45 56 19 57 58 59 59 61 59
55 69

INJURY: (See Specific InjUries)
Meaning of ----------------- -- --- ------------------------------ ------------------- 2 (d) Where and when received to be entitled to compensation............ 2 (d) When not to be compensated for.. _____________ _____ ___________________________________ _ 14 Due to wilful misconduct -------------------------------------------------------------------- 14
wilful breach of rule or regulation -------------------------------------------- 14 wilful failpre or refusal to use safety appliance___________ ___~--------- 14 intoxication ------------------------------------------------------------------------------- 14 wilful act of third person..------------------------------------------ ----------------- 2 (d) self-inflicted_ ~ot to be compensated for._ ____ ____ ________ _______ ______ _____ 14 attempt to InJUre another ------ ------------------------------------------------------ 14 Act does not apply to those received prior to taking effect oL.. 10 Compensation in event of pre-existing..---------------------------------------------- 34 How compensation to be paid in event of a second specific injury 36
In event of another injury while receiving compensation for previous injury ---------------------------------------------------------------- . 35
Hernia -------------------------------------------------------------------------- 2 (e)
INTENTIONAL INJURY: No compensation for --------------------------------------------------- ----- 14

INSURANCE: Employer shall carry :..........................-................................................... 66
Employer shall insure payment of compensation as provided in Act ------------------------------------ --------------------------- 11

INSURANCE LAws.

213

Employer shall file with Commission evidence of his compliance with Act as relates to when........................................................
What policy must contain .................................................................. Construed as direct promise to person entitled to compensation.. Not affected by failure of employer to give notice required by
policy ' Act does not apply to boiler and fly-wheeL ..................................... Rates- shall be standard .................:......................................................
shall be fil ed with insurance Commissioner for approvaL..

Section
67
70 71
71 72 (b) 73 (a) 73 (a)

INSURANCE COMPANIES: (See Insurers)

INSURANCE COMMISSIONER: Shall approve rates .............................................................. .............,... Insurer shall report to as provided by law...................................... May examine insurer for purpose of determining solvency........

73 (b) 73 (b) 73 (b )

INSURER: (See Policy) Must report to Insurance Commissioner when...............,.......... ........ Records subject to inspection by Insurance Commissioner............ As employer so far as applicable..................................... ................... Bound by award and decrees rendered against employer.............. Jurisdiction of ........................................................................................ Notice to employer is notice to............................................................ Rights of employer against.................................................................. Requirements as to rates........ ...................................................... ___ __,__ __

73 (b) 73 (b)
2 (a)
70 70
70 70 73 (a)

INTOXICATION: No compensation for injury due to ........................................,............. 14

JOINT EMPLOYERS: Liability to employee ............................................................................ 49

JUDGMENTS: Of Superior Court may be appealed from, how.......................... .... 59 On agreements or awards, when.......................................................... 60 .
Effect of when rendered on award or agreement fil ed with court 60 None shall be entered or executed on, when.................................... 60

JURISDICTION : Of insurer .............-.................................... ............................ ................... 70
Who has in settlement of disputes under Act................................ 64

.LAWYERS: (See Attorneys)
LEG:
Compensation for loss of ............................ .......................................... 32
Loss of both ............................................................................................ 32

LEGAL REPRESENTATIVE: . Of deceased employee included as employee, when............................
LIABILITY OF EMPLOYER: For compensation .................................................................................. Of employer limited to extent and manner specified in Act..........
LOSS OF MEMBERS: (See Particular Members)
LOSS OF SIGHT: (See Eye)

2 (a-b)
21 11

t
214

INSURANCE LAWS.

L UMP-SUMSETTLEMENTS: How -- and when may be made.............................................................. How amount arrived .at .........:................................:....................:........ When <j.eemed expedient by Commission-may be paid to a trustee

Section
43 43 44

MALPRACTICE: Employer not liable for except to extent oL.................................... 27

MEDICAL, SURGICAL AND HOSPITAL SERVICES: (See Hernia) Employers shall furnish for period AOt exceeding 30 days............ 26 Total liability not to exceed $100.0'0.................................................. 26 Employer may at option continue 1ti'l fu'rhish.................................... 26 Refusal of employee to accept.....................:...................................... 26 -When physician other than one furnished by employer used........ 26 Industrial Commission may order employee to accept further. attention ............................................................................................. 26 Fees shall be reasonable and subject to approval by Comm....... 63 Employer not liable in damages for malpractice............................ 27 Consequences of malpractice to be compensated for.. .................... 27 Liability of employer for services ordered by Commission............ 27 How refusal to submit to surgical treatment effects compensation 28 When employee fails to give prompt notice .................................... 23

MEDICAL EXAMINATIONS:
Employee shall submit to, when.......................................................... 28 Employee may have own physician present ...................................... 28 Physician making may be required to testify.................................... 28 Effect on compensation when employee refuses to submit to........ 28 Commission on application of either party may have made, when 62 When ordered by Commission how paid for and amount.............. 62

MEMBERS: (See Each Topic)
Loss of ...................................................................................................... 32 Effect of loss of use oL.....................................................................:.. 32 Less than total loss of use, how compensated.................................... 32 Loss of any two specified considered permanent total incapacity 32 Compensation for loss of subject to what maximum and mini-
mum limits ...................................................................................... 32

MINIMUM: Number of days for basic year's work ............................................ 2 (c-5)

MINOR: Included as employee even though employed in violation of Child Labor Law ........................................................................................ How payments to r eceipted for............................................................ Limit of time for filing claim and notice does not run against
when .-y
MISCONDUCT; WILFUL: No compensation for injury resulting from......................................

2 (b) 46 (b)
48
14

MUNICIPAL CORPORATION: Included as employer ............................................................................ Shall not have right to reject Act...................................................... Employee of cannot reject Act ..........................................................

2 (a) 8 8

MUTUAL INSURANCE :

, ,

Acceptable security for payment of compensation, when................ 66

(

INSURANCE LAWS.

215

Section

NON COMPOS MENTIS:

,

Guardian may act for............................................................................ 47 Limitation of time does not run against when.............................. 48

NOTICE: . (See Accidents and Accident Reports to Commission) Em~loyee shall give immediate notice of ..accident..:..... l.:J:..'' ' 23 To msurer " '""'-'-~-....:..n........:.........::........................... 70 Form to be used by employee .in giving notice of accident.......... 24
Delayed notice a bar to compel}sation, when...''''' 23 Limit of time for minor or mentally incompetent............................ 48; Insurance not effected by. failJ~re %f employer to give notice re- 't!
quired by .policy .:.....................................::...:.:.......-:...........~......... 7l
Employer's notice to reject Act.......................................................... .4 Employee's notice to reject Act.......................................................... 4
Not to accept Act, when imd how given ............................................ 4 ED?ployer:s not~ce of w~iver of exemp_ti?n...................................... 5 Employees notice of. watver of exemptiOn.:...................................... 5
Toreject Act or waive and accept, how given by employer.......... 5 Of rejection, .or waiver and acceptanc,e, must be in w~:iting.......... 5
Of rejection or waiver of exemption at time of employment........ 5
When notice of rejection or waiver of exemption may .be . less than 30 days prior to accident.................................................... 5
To reject or waive and accept, how given by employee................ 5 To. reject' or waive exemption an'd -accept must be filed with In-
dustrial Commission ...................................................................... 5

NUMBER OF EMPLOYEES: Act not applicable to, when................................................................ 15

OPTibN: ' Employee may claim under Act or sue at law, when...................... 67 (b)

OUTSIDE THE STATE:
Employe'e on Work, covered by Act, when.......................................... 37

OVERTIME: Excluded in computed earnings .......................................................... 2 (c-7)

PARENT : Defined ...................................................................................................... 39 (c)

PARTIAL DISABILITY: Amount compensation payable ............................................................ 31

PAYMENTS:
Made to dependent subsequent in right to anoth,er discharges '' employer, when .:.....:.:::...........:........::....::............:...:................:.... 46 (d)

PENALTY:
To employer for failure to report accidents to Commission........ To employer failing to furnish evidence .to Commission as to
insurance .............................................................:............................

65 (e) 67 (b)

PENDING LITIGATION: Not affected- .~.....~...:..-.............................................................................. 3

PHALANGES: (See finger) (See Thumb)

PHYSICIAN: (See Medical, 'Siirgicai) ; (Hospital Service) Required to testify, when...................................................................... 28

\

216

INSURANCE LAws.

POLICY: Void unless basic rate filed with Insurance Commissioner............
Act does not apply to what policies....................'.............................. Must contain what ................................................................................
Shall be deemed subject to provisions of Act.................................... Form must be approved by Industrial Commission........................ Obligatio_n of e~ployer ~nder not effect~d by failure of employer
to give notice required by..........,..'>i-, ......................................... -Shall contain provisions regard to not-ill'l!}.L ....................................... Shall contain agreement to pay comphi'~dtion promptly................

Section
73 (a) 72 (b) 70 72 72
71 70 7l

POLITICAL DIVISION OF STATE : Included as employer ............................................................................ Cannot reject Act ..................................................................................
PRE-EXISTING INJURY: How compensation to be calculated...............-..................................... Compensation to cover longest period................................................
PROCEEDINGS BEFORE COMMISSION: (See Sections 56-57-58)

2 (a) 8
34 35

QUESTIONS OF FACT : Final award of Commission binding as to...................................... 59

QUESTIONS OF LAW: Commission may certify questions of law to Court of Appeals.... 59

RAILROADS: Engaged in interstate commerce excluded ........................................
RATES : Of insurance shall be standard............................................................ shall be fil ed with Insurance Commissioner..................................
RECEIPTS : What sufficient in case of minors .................................................:...... When compensation for use of widow or widower and -child re- ceipt by widow or widower sufficient........................................
RECEIVER OF EMPLOYER: Considered as employer ........................................................................

9
73 (a) 73 (a}
46 (b) 46 (a}
2 (a)

RECORDS OF COMMISSION: Shall not be open to public, except....................................................

REFUSAL TO ACCEPT EMPLOYMENT:

..

Effect of by employer .....................:..................................................

REGULATION: Breach of ........................:.......................................................................
No rule or regulation to relieve employer, except............................

REJECTION OF ACT: By both employer and employee.......................................................... Defenses denied to employer, when.................................................. Defenses open to employer when employee r ejects.......................... How accomplished by employer.......................................................... How accomplished by employee ..........................................................

RELEASES:

In case of minors........:...................................................:.......................

REMARRIAGE:

,

Dependency te~minates with remarriage of widow or widower....

65 (b)
33
.14 7
18 16 17 5 5
<U)
39

. INSURANCE LAWS.

217

Section
REMEDY: By employee when employer fails to furnish Commission 'with evidence as to insurance ..............................................:................. 67 (b)

REOPENING CASE: Procedure ................................................................................................ 45

REPORT OF ACCIDENTS: Employer ' shall make to Commission................................................ Penalty for failure of employer to report.......................................... Employer to make supplementary report, when............................... What reports to contain ........................................................................ Industrial Commission shall tabulate.................................................. Not open to public inspection, except.............................................. Not to be used as evidence aganist employer in suit......................
REPRESENTATIVE: Of deceased employer ................................................................................

65 (a) 65 (b) 65 65 54 54 54
2 (a)

REVIEW: Of award by Commission.............................:........................................ 58 How and when an award or settlement may be reviewed................ 45

RIGHTS AND REMEDIES:
Of employee accepting Act.................................................................... 12 Those granted under Act to employee exclude all others................ 12

RULE OR REGULATION: B1each of ................................................................................................ 14 None to relieve employer, except........................................................ 7
SAFETY APPLIANCE: Failure or refusal to use........................................................................ 14

SELF-INSURANCE: Right granted ........................... ........................,.................................... 66 Certificate furnished by Commission, when............:......................... 68

SETTLEMENTS: Must be' in accordance with Act.......................................................... 19 Agreement for shall. be filed with Commission.................................. 19 Approved by Commission, when.......................................................... 19 May be reviewed by Commission, how and when............................ 58

SHERIFFS: To serve all subpoenas ................................................................:....... 53 ' (b) Fees for ..................................................................................._............... 53 (b)

SPECIFIC INJURIES: Compensation for ................................................................................ . 32

STATUTE OF LIMITATIONS: .
Right to c?mpensa~io? barred unless claim filed with Industrial CommiSSIOn w1thm one year.......................................................... 25
Does not run against person mentally incompetent or minor........ 48

SUB-CONTRAC1'0R: Liable in first instance, when.............................................................. 2.0 Principal contractor liable to employee of......................:................. 20

SUBSTITUTE SYSTEM: May be provided by employer, when.................................................. 69.

218

Section SUPPLEMENTARY -REPORT : ,,, , td I Employer sh~ll make to Commission, when..................................... 65 (a)

SUIT AT LAW:

,_

By employee_wpen employer fails to comply with Act.................... 67 (b)

SUPERIOR COURT:
'Appeals to from findings of, Commissien,_:........~;....::..:...:.........~~"- 59
May render judgments on agreement :award filed with it, when 60 Agreemen* between employer and employee in regard to com-
. i pensation shall be .enforced by, when........................................ 55 Shall .~nforce attendance of witnesses, when.........................:.......... 53

SUPERSEDEAS: What shall act as...........................:...................................._.,,, ..,............ 59

.S,URGICAL SERVICES: (See Medical, Surgical and Hospital Services)

SURVIVING SPOUSE: ' When compensation payable to............................................................ 39

T H UMB: Compensation for loss of.......................................................................... 32

TOE: Compensation for loss of..........:....................................~- -- 32

TOTAL DISABILITY: A mount of compensation payable ..::............:....................................... 30 Loss of any two members named shall be deemed..........:.......,....... 32

TRUSTEE OF EMPLOYER: Considered same as, when ...................................................................... 2 (a)

VISION:-

.

Compensation for __l?ss of.......................................................................... 32

WAGES : (See Earnings)
WAITING PERIOD : When and length ......................................................,............................... 29

WAIVER: Employer-..and employee having rejected Act may waive exemption ................................:............................................................. 5

'Y;EE!CLY WAGES : (See Earnings)

WiiDOW: (See Dependents)

Dependency terminates with remarriage............................................

WIDOWER: (See Dependents) Dependency terminates with remarriage............................................

WIFE : (See Dependents)

-When- presumed wholly dependent......................................................
!l - .

WITNESSES:

.

How attendance enforced......................................................................1

39 39 39 (a) . 53

WORK:

, .. .

.

Refusal to accept suitable forfeits compensation, when.................. 33

WORKMEN'S COMPENSATION ACT: Act shall be known as.......................................................................... 1



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