- ,.,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 - .~ ~-~ 3-5'3., l"t i ~ a - ~s !n .I 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 / 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 -: -... '' 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 6 INSURANCE LAWS 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- INSURANCE LAws. 7 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- 8 INSURANCE L.A.ws. 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 INSURANCE L.A.ws. 9 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 / 10 INSURANCE LAws. 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 1 .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 INSURANCE LAws. 11 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 12 . INSURANCE LAws. 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. I 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 INSURANCE LAws. 13 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 14 I INSURANCE LAws. 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 INSURANCE LAWS. 15 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 16 INSURANCE LAws. 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. INSURANCE LAws. 17 / 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 I I 18 INSURANCE LAWS. 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 \ 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. I INSURANCE LAws. 19 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 20 I ,NSURANCE LAws. 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 INSURANCE LAws. 21 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 1 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. 22 I NSURANCE L AWS. 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 ' INSURANCE LAWS. 23 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 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 100 INSURANCE LAws. 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- INSURANCE LAws. 101 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 102 INSURANCE LAWS. 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 INSURANCE L.A.WS. 103 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. 104 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 INSURANCE LAws. 105 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. 106 \ 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 INSURANCE LAws. 107 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 INSURANCE LAWS. 109 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). 110 INSURANCE LAws. 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 INSURANCE LAWS. 111 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 112 INSURANCE LAws. 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 carrievith 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 INSURANCE LAWS. 123 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,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,.,.,~ INSURANCE LAws. 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 lNSURANC.E LAWS. 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. INSURANCE LAws. 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 lNSURA.NOE LAws. 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' 132 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- 134 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 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., . .. ' ~ :' ...........................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 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