Insurance laws of the State of Georgia, 1932 July

INSURANCE LAWS
OF THE
STATE .OF GEORGIA

EDITION OF JULY, 1932

WM. B. HARRISON, Insurance Commissioner LEWIS A. IRONS, Deputy Commissioner

Stein Printing Co., State Printero, Atlanta, Ga.

COM MERCE LIBRARY

THE UNIVERSITY OF GEORGIA

ATHENS , GEORGIA

_J

.l.,

INSURANCE DEPARTMENT STATE OF GEORGIA
NOTE. The laws of this State, relating to insurance and insurance companies, now in force, are published in the following pages as found in Park's Annotated Code, 1914, Vol. 2, and Supplements of 191 7 to 1928 with their section numbers and in the Georgia Lawsfor the Years 1917 to 1931.
WM . B. HARRISON, Insurance Commissioner.
Atlanta, July 1, 1932.

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STATE OF GEORGIA )
LAWS RELATING TO
INSURANCE AND INSURANCE COMPANIES
GENERAL STATUTES
as codified in PARK'S ANNOTATED CODE, 1914, Volume 2, and SUPPLEMENTS 1917 to 1928, and PUBLIC ACTS, 191 7 to 1931, inclusive.
SECTION 1:
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. I>. 73. H 6446. 2392. 2263. 2577. 2564 (n ). 2564 (bbl.
COM MERCE LIBRARY THE UNIVERSITY OF GEORGIA
ATHENS, GEOR GIA

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2389. Formation of company and petition. Any number of persons not less than five may form a company, but before receiving a certificate of incorporation under this Article, shall first file a petition, addressed to the Secretary 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 have given thirty days' notice of their intention to apply for said charter, by the publication of said petition in the newspaper publishing the legal advertisements of the county where the principal office of said company is to be located, once a week for four weeks before the filing of said petition. There shall be annexed to said petition an affidavit made by at least two of the persons forming said company, that the names subscribed are the genuine signatures of the persons named therein, and that the facts stated in the petition are true. Said petition thus sworn to shall be filed in the office of the Secretary of State, who shall indorse thereon the date of the filing and record the same in a book to be kept by him for that purpose.
Acts 1893. J). 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 great seal of the State the following form or certificate, to-wit:

To all to whom these presents may come-Greeting:

Whereas, In pursuance of an Act of the General Assembly 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 St~te a certain petition seeking the formation of a corporation to be known as (insert name), with a capital

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stock of '$ - ____ _____ , for the purpose of organizing and run-
ning a (kindor kinds) insurance company, 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 under the said name of (insert name), to exercise the powers and privileges of a corporation for the purposes above stated, subject to the provisions of the Constitution of this State, and all the laws, rules, and regulations governing insurance companies of force at the date of this certificate, or that may hereafter become of force either by constitutional or statute laws, or by any rules or regulations of the Insurance Commissioner of this State or otherwise, which govern insurance companies in this State.
In witness whereof, these presents have been signed by the Secretary of State (or when he is disqualified, by the comptrollergeneral), and to which is annexed the great seal of the State, at A clan ta, Georgia, this ____________ day of_ _________ __ , I 9 __.
Acts 1893. I>. 74.

2391. Corporate powers. Thereafter the persons who signed said petition, and all persons who shall become stockholders in said company, shall be a corporation by the name specified in said certificate, and shall possess the powers and privileges and be subject to the provisions contained in this Article.
Acts 1893, I>. 74.
2392. Fee . Before the secretary, or, ~hen disqualified, the comptroller-general, shall issue said certificate, the petitioners shall pay to the Treasurer of the State a fee of one hundred dollars.
uActs 18V3. I>. 74.
6446. 2388.

2393 Certificate prima facie evidence of corporation's existence. Any certificate or a duplicate thereof, issued under this Article, shall be prima facie evidence of the existence of such corporation.
Acts 1893, I>. 74.

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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 may deem expedient, they may from time to time receive subscriptions until the whole capital stock is subscribed. The capital stock of said compan y 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, ~r in mortgages on real estate worth twice the amount for which the same is mortgaged, wh ich investment must be approved by the Secretary of State, or, when he is disqualified, by the comptroller-general. When bonds of the cities or counties of this State are in vested in, the Secretary of State, o~ comptroller-general, as the case may be, shall require an opinion from the attorneygeneral, as the case may be, shall require an opinion from the attorney-general of State that the bonds are good, legal and valid bonds, before approving the investment.

Acts 1893. I>. 75.

2395. Organization. When the amount of the capita1 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 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

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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 representatives, the notice may be waived, and an election held at once. The directors shall elect from their number a president, vice-president or vice-presidents, secretary and treasurer, and such other officers and agents as they may deem necessary. The regular elections for directors shall be held 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. I>. 75.

2395 (a). Directors of life insurance companies. The board of directors of all life insurance companies chartered by the laws of this State shall consist of not less than five nor more than twenty members, a majority of whom tnust be bona fide residents of this State, and the majority of which board shall constitute a quorum for the purpose of transacting business..
Acts 1912. I>I>. 119. 137.

2396. Stock to be paid in before beginning business, $too,ooo. Said insurance company shall not begin business until at least one hundred thousand dollars of the capital 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

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declare it forfeited until they have served a notice in wntmg on him personally, or by depositing said notice in the post-office, postage paid, direct to him at the post-office nearest his usual place of residence, stating he is required to make such payment at the time and place expressed in such notice, and if he fails to make the same, his stock and all previous payments thereon will be forfeited for the use of the company; which notice must be served at least sixty days previous to the day on which such payment is required to be made.
Acts 1893, p . 75.
t 2572, 2582.

2397. Stock may be increased or decreased. The capital stock of any fire insurance company organized under the laws of this State, whether incorporated by special act of the General Assembly or by the Secretary of State under the general law, may be increased to such an amount as may be desired by the stockholders of such company, or said capital stock may be decreased to any sum, not less than one hundred thousand dollars, as may be desired by the stockholders of such company, at a meeting of such stockholders, called for the special purpose by order of the board of directors of such company, of which meeting notice shall be given to each stockholder (or in case of death to his legal representative or heirs at law), personally, or by mail addressed to hislast known residence, at least thirty days previous to such special meeting, and such increase or decrease shall be made in such manner as shall have been determined by the stockholders at such meeting, it requiring the vote of a majority in amount of the entire capital stock of such company to authorize such increase or decrease, and the manner of effecting the same. If at such meeting the stockholders, holding the majority in amount of such capital stock, vote for such increase or decrease, the proceedings of the meeting must be reduced to writing and entered upon the books or minutes of the company, and a copy thereof, verified by the president or secretary thereof, 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

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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 comptroller-general 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. D. 76.
u 2201. 2197. 5798.
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. D. 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 c'ompany has not organized and commenced business.
Acts 1893. D. 76. 1902, D. 52.
2400. Powers of life insurance companies. Every life insurance company incorporated under this law shall 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 msurance appertaining to or connected with life risks.
t 2391.

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2401. OJ 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 that ma y 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.

2391.

2401 (a). Losses ascribable to lightning, etc. Petition and publication. Fee. The Secretary of State for the State of Georgia is hereby empowered to grant to fire insurance companies, heretofore or hereafter incorporated under the laws of the State of Georgia, authority to cover by their policies losses ascribable to lightning; explosions, storms of every character, earthquake, hail, frost, snow, riot or civil commotions, theft and sprinkler leakage, provided the company desiring anyone or more of the powers herein mentioned shall file in the office of the Secretary of State a petition, signed with its corporate name, stating the name and character of the corporation, the date of its charter and all amendments thereto, that it desires an amendment to its charter covering any one or more of the powers herein mentioned, and shall file with such petition a certified abstract from the minutes of the board of directors of the said company, showing that the application for the proposed amendment has been authorized by a two-thirds vote of the entire capital stock of the company at a meeting of the stockholders called for the purpose by resolutions of the said board of directors, notice of which said meeting shall be mailed to each stockholder or, in case of death, to his legal representatives or heirs at law, and addressed to his last known residence at least ten days previous to the day of said meeting.

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Affidavits, made and signed in due form of law by the president or secretary, shall be attached to said petition, showing that it has been published once a week for four weeks in the newspaper in which is published the Sheriff's Sales of the county in which the principal office of said corporation is located, and the said corporation shall pay to the Secretary of State a fee of twentyfive dollars to be converted by him into the Treasury of the State.
Acts 1921. o. 206.
2391.

2402. OJ 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 Constitution and laws of this State and the United States.
2391.
. 2403. OJ 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 domestic 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.
2391.

2404. Contracts to be evidenced by policy. Contracts of insurance to be entered into by any compan y organized under this Article shall not be binding unless evidenced by a policy of insurance in writing or print, or both, and the liability of said company, in case of loss sustained by any policynolder, shall be governed by the term_s, stipulations, and conditions appearing upon the face of the policy. No policy or other contract of said corporation shall be binding except it be signed by the president or vice-president and secretary or assistant secretary of the company.
U 2170. 2470 (a).

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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 dividends shall he declared until the earnings are sufficient to pay the same, after deducting all expenses and losses, and after providing for such reserve as may be provided for by law.

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 highest limit of the

capital stock of their charter.

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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

agree, the same to be plainly stipulated on the face of the policy;

and unless it be stipulated on the face of the policy that the

policyholder has the right to participate, it shall not be lawful

for any policyholder to participate in any of the profits of such

company. If the incorporators of any stock company see proper,

they may embrace this principle in their charter, stating therein

the average amount of dividends the stockholders shall receive

on the face value of their stock, in which case all net profits above

this dividend and the reserve shall be paid as a dividend to all the

policyholders.

2408. Investments by Insurance Companies. Amended by Acts 1918, p. 119, and codified as Section 2409 (a). Later amended by Acts 1929.

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INVESTMENTS OF GEORGIA INSURANCE
COMPANIES.
AN ACT
To more clearly specify the securities and property in which Insurance Companies organized and doing business under the laws of Georgia may invest their funds and assets; to specify what investments require the approval of the Insurance Commissioner, and what investments may be made without such approval; to define when and under what limitations an Insurance Company may invest in a building for home
office purposes; to prescribe limitations upon all classes of investments; to repeal "An Act to amend Section 2409-A Park's Annotated Code of the State of Georgia, Volume 8, Supplement of 1922, so as to enable Insurance Companies to invest not more than twenty-five per cent. of their assets in a building to be used for Home Office purposes," approved August 26, 1925, and appearing in Georgia Laws, 1925, pages 92, 93, and 94; . to repeal all conflicting laws, and for' other purposes.
Section 1. Every Insurance Company organized and doing business by virtue of the laws of this State shall have authority to invest its money and assets in the following securities, to wit:
(a) Any and all bonds or securities issued by the United States of America, the District of Columbia, or any State of the United States, or any county or city therein; bonds of any township or school district therein; bonds issued by the Federal Land Banks under provisions of the Act of Congress of the United States of America of July 17, 1916, 'its amendments and supplements.
(b) Loans secured by any of the classes of securities specified in (a) hereof.

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(c) Loans secured by first liens on improved real estate in any of the States of the United States of America not exceeding fifty (so%) per cent. of the value of said property.
(d) Loans on policies issued by the Insurance Company not exceeding the reserve on such policies.
(e) A building for Home Office purposes, provided that no company shall hereafter invest in such building unless its assets exceed $Ioo,ooo.oo, and that such company shall not invest more than twenty-five (2.5%) per cent. of its assets in such a building, and provided, further, that any such investment in a building for Home Office use shall first be approved by the Insurance Commissioner.
(f) Evidences of indebtedness which may be purchased or discounted by Federal Reserve Banks.
(g) Investment securities, that is, marketable bonds, notes and/ or debentures, evidencing indebtedness of. solvent persons or corporation, which, under the Regulations of the Comptroller of the Currency of the United States National Banks may buy and deal in.
(h) Bonds and debentures of any solvent railroad, street railway or other public utility corporation or industrial corporation, on which no default of interest has occurred, when and if secured by a mortgage or deed of trust covering physical assets or securities of ample value to exceed the indebtedness secured.
(i) Preferred Stocks of solvent corporation, where at the time of acquisition the equity of all Preferred Stock outstanding in the assets of the issuing corporation including the issue in which the investment is made, is more than twice the amount of such Preferred Stock, and the earnings applicable to dividends on such Preferred Stock have, for two consecutive years prior to the date of acquisition, exceeded twice the dividend requirements.
(j) Common Stocks of solvent railroads, street railways, and other utility corporations and industrial corporation, which

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are listed on an established stock exchange, where, prior to the date of acquisition of the stock, the company issuing such stock had maintained and paid dividends thereon for three consecutive years, and the current earnings of such company issuing such stock have been sufficient in each of such three consecutive years to fully pay the dividends.
(k) Promissory notes amply secured by pledges of securities in which the company is authorized to invest its funds.
Sec. 2. Be it further enacted that investments in the classes of securities defined in Section I of this Act, except as to a building for Home Office purposes, may be made by Insurance Companies without the approval of the Insurance Commissioner of Georgia, and that all other investments of funds by Insurance Companies in other classes of securities than those specified in Section I of this Act shall only be made when the approval of the Insurance Commissioner of Georgia is first obtained.
Sec. 3 Be it further enacted that no Insurance Company organized and doing business by virtue of the laws of this State shall acquire or hold more than ten (w%) per cent. of the securities of any single corporation; nor shall more tha.n tefl (w%) per cent. of the assets of any lnsuran.ce Company be invested in the securities of any single company or in securities issued by any single individual.
Sec. 4 Be it further enacted that every Insurance Company organized and doing business by virtue of the laws of this State shall, to the extent of the paid-in outstanding capital stock of such Insurance Company, if it be a stock corporation, keep its funds and assets invested in the classes of securities defined and described in subparagraphs (a), (b), (c), (d), (e), (f) and (h) of Section 1 of this Act.
Sec. 5 Be it further enacted that such Insurance Companies organized and doing business by virtue of the Laws of this State may, also, sell, assign, transfer and convey, either with or without warranty, or either with or without recourse upon it, as it may

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prefer any real estate, personal property, bond, note, mortgage, deed of trust, deed to secure debt, or other form of property or securities in which it may have invested its money or its assets, or made loans as allowed by law, and may, also buy and sell any realty that may be necessary for the protection of any loan such Insurance Company may lawfully make.

Sec. 6. Be it further enacted that "An Act to amend Sec. 2409-A of Park's Annotated Code of the State of Georgia, Volume 8, Supplement of 1922, so as to enable Insurance Companies to invest not more than twenty-five (25%) per cent. of their assets in a building to be used for Home Office Purposes," approved August 26, 1925, as contained in Georgia Laws 1925, pages 92 to 94, is hereby repealed, and that all laws and parts of laws in conflict with this Act be, and the same are hereb y repealed.
Acts of 1918. I>I>. 119. 122. 2236. 2413. 2428. 2564 (2) . 626 (c). P. 0.
Acts of 1925, I>I>. 92 to 94.
Acts of 1929.

2410. R einsurance 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 subscription to the capital stock, and for no greater amount.
2270.

2412. Mutual or co-operative companies. The preceding sections of this Article, in so far as they are applicable, may be applied to the formation of mutual or co-operative fire, livestock, life, or accident-insurance companies; but applicants for this class of insurance shall not be required in their petition to set out the amount of the proposed capital stock or the number of shares of the same; nor shall it be necessary for the Secretary

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of State to incorporate in his certificate of incorporation any reference to the capital stock of said company.
Acts 1895, I>. 53.
(1) Who may become a body corporate for mutual insurance purposes. Any number of persons, not less than twenty, who shall be bona fide residents of this State, by complying with the provisions of this Act, may become, together with others who may hereafter be associated with them or their successors, a body corporate for the purpose of carrying on the business of mutual insurance as herein provided.
(2) Articles of incorporation. Any person proposing to form any such company shall subscribe and acknowledge articles of incorporation specifying:
(a) The name, the purpose for which formed, and the location of its principal or home office, which shall be within this State;
(b) The names and addresses of those composing the Board of Directors in which the management shall be vested until the first meeting of the members;
(c) The names and places of residence of the incorporators.
(3) Name. No name shall be adopted by such company which does not contain the word "mutual" or "co-operative," or which is so similar to any name already in use by any such existing corporation, company, or association, organized or doing business in the United States, as to be confusing or misleading.
(4) Insurance and.filing of Charter. Amendment of Charter. When a petition and articles of incorporation shall be submitted to the Secretary of State and found by him to comply with this Act, he shall endorse his approval thereon and shall issue a charter as now provided by law. A copy of such petition and charter

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shall also thereupon be filed in the office of the Insurance Commissioner. The charter may be amended in the manner now provided by law and any such amendment shall be approved, recorded and filed, as in the case of the original charter.

(5) Commencement of existence and business. Such corporation shall have legal existence as soon as the charter shall have been issued by the Secretary of State. The Board of Directors named in articles of incorporation may thereupon adopt by-laws, fix the qualification of membership of all applicants for insurance, accept applications for insurance, and proceed to transact the business of such company: provided, that no insurance shall .be put into force until the company has been licensed to transact insurance as provided by this Act. Such by-laws and any amendments thereto shall, within thirty (30) days after adoption, be filed with said Insurance Commissioner.

(6) Authority to insure and reinsure. Kinds of insurance. Any company organized under the provisions of this Act, is empowered and authorized to make contracts of insurance or to reinsure or accept re-insurance on any portion thereof, to the extent specified in its Articles of Incorporation for the kind of insurance foilowing:

Fire Insurance. Against loss or damage to property and loss of the use and occupancy by fire, or lightning, hail, tempest, flood, earthquake, explosion, fire ensuing; against loss or damage to person or property occasioned by the operation of duly licensed public service motor vehicles and automobiles.

(7) Conditions precedent to transaction of business. No corporation organized under this Act shall issue policies or transact any business of insurance unless it shall comply with the conditions following, nor until the Insurance Commissioner has, by formal license, authorized it to do so, which license shall not issue until corporation has complied with the following conditions:

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(a) It shall hold bona fide applications for insurance upon which it shall issue simultaneously, or it shall have in force at least twenty (2o) policies to at least twenty members for the same kind of insurance upon not less than two hundred (200) separate risks, each within the maximum sin.gle risk described herein;

(b) The "maximum single risk" shall not exceed twenty (2o) per cent. of the admitted assets or three times the average risk or one per cent. of the insurance in force, whichever is the greater, any reinsurance taking effect simultaneously with the policy being deducted in determining such maximum single risk;

(c) It shall have collected a premium upon each application, which premium shall be held in cash or security and which insurance companies are authorized to invest and shall be equal, not to less than twice the maximum single risk assumed subject to one fire nor less than ten thousand ($10,000) dollars.*
*Language of original b!ll .
(d) Satisfy the Insurance Commissioner that its financial condition, methods of operation and manner of doing business, are adequate to meet its obligations to all policyholders in this State.

(8) Applications and policies validated. Personal liability of legal representati ves. Incidental rights. Any public or private corporation, board, or association in this State, or elsewhere, can make application, enter into agreements for and hold policies in any such mutual insurance company. Any officer, stockholder, trustee, or legal representative of any such corporation, board, association, or estate, may be recognized as acting for or on its behalf for the purpose of such membership, but shall not be personally liable upon such contract of insurance by reason of acting in such representative capacity. The right of any corporation organized under the laws of this State to participate as a member of any such mutual insurance company is hereby declared to be incidental to the purpose for which such corpora-

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tion is organized, and as much granted as the rights and powers expressly conferred.

(Art. 7, Sec. 5. Constitution of Georgia.
Stale aid forbidden. The credit of the state shall not be pledged or loaned to any individual, company, corporation or association, and t he State shall not become a joint owner or stockholder in any company, association or corporation .)

(9) Voting rights. Every member of the company shall be entitled to one vote, or to a number of votes, based upon the insurance in force, the number of policies held, or the amount of premiums paid, as may be provided in the by-laws.

(10) Maximum premiums. Cash premiums and surplus. The maximum premium payable by any member shall be expressed in the policy, or in the application for insurance. Such maximum premium may be a cash premium and an additional contingent premium, not less than the cash premium, or may be solely a cash premium. No policy shall be issued for a cash premium without an additional contingent premium unless the company has a surplus of at least one hundred thousand ($IOo,ooo) dollars, or a surplus which is not less in amount than the capital stock required of domestic stock insurance companies transacting the same kind of insurance.

(II) In vestment of assets. No such company shall invest any of its assets except in accordance with the laws of this State relating to the investment of the assets of domestic stock insurance companies transacting the same kind of insurance.

(12) Unearned premiums and reserves for each kind of insurance. Such company shall maintain unearned premiums and other reserves separately for each kind of insurance, upon the same basis as that required of domestic stock insurance companies, transacting the same kind of insurance.

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(13) Required assets and assessments therefor. Deficiency. Such company not possessed of assets at least equal to the unearned premium reserve and other liabilities, shall make an assessment upon its members liable to assessment to provide for such deficiency, such assessment to be against each member in proportion to such liability as expressed in his policy; provided the Insurance Commissioner may by written order relieve the company from an assessment or other proceeding to restore such assets during the time fixed in such order; and, provided, that any domestic company which shall be deficient in providing the unearned premium reserve required hereby, may, notwithstanding such deficiency, come under this Act on the condition that it shall each year thereafter reduce such deficiency at least fifteen per cent. of the original amount thereof, and in such case it may increase its assessments accordingly.

(14) Advances of money which may be made. Commissions m promotion expenses. Any director, officer or member of any such company, or any other person, may advance to such company, any sum or sums of money necessary for the purpose of its business or to enable it to comply with an y of the requirements of the law, and such monies and interest thereon as may have been agreed upon shall be payable only out of the surplus remaining after providing for all reserves and other liabilities, and shall not otherwise be a liability or claim against the company or any of its assets. No commission or promotion expenses shall be paid in connection with the advance of any such money to the company, and the amount of such advance shall be reported in each annual statement.

(1 5) Form of policy and endorsement. Any law requiring that policies be countersigned and be delivered to a resident agent shall not apply to any policy of such mutual company on which no commission shall be paid to any local agent. Such mutual company may insert in any form of policy prescribed by the law of this State any provisions or conditions required by its plan of insurance which are not inconsistent and conflict with

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any law of this State. Such policy, in lieu of conforming to the language and forms prescribed by such law, may conform thereto in substance, if such policy includes a provision or endorsement reciting that the policy shall be construed as if in the language and form prescribed by such law, and a copy of such policy and endorsement, if any, shall have been first filed with and shall not have been disapproved by the Insurance Commis~ioner.
(I 6) Taxable premiums. The taxable premiums or premium receipts of any mutual insurance company organized in this State, for the purposes of taxation under any law of this State, shall be the gross premiums received for direct insurance upon property or risks in this State, deducting amounts paid for reimbursement upon which a tax has been or is to be paid in this State, and deducting premiums upon policies not taken, premiums returned on cancelled policies, and any refund or return made to policyholders other than for losses.
(I7) Reinsurance. Any such mutual insurance company organized in this State may reinsure any part or all of any risks in any insurance company or insurer licensed in any State of the United States, or in the District of Columbia; provided, that no such reinsurance shall be effected with any company or insurer disapproved therefor by written order of the Insurance Commissioner filed in his office.
(I 8) Penalty for violation of law. Any person or corporation violating the provisions of this Act shall be guilty of a misdemeanor, and upon conviction shall be punished by a fine of not less than fifty ($5o.oo) dollars, or more than five hundred ($500.00) dollars, and the Insurance Commissioner shall have power to revoke the license of any such person or corporation.
(I9) Exception of certain companies from provisions of law. Election to become subject to law. Be it further enacted, that all laws or parts of laws in conflict with this Act, so far as companies organized under this Act are concerned, are hereby repealed,

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but no such repeal and nothing in this Act shall apply to or affect any company or association of this State now doing business, or to any law under which any such company or association is organized or doing business.
Any such company or association may, however, by resolution of its Board of Directors, duly approved by a majority of the members, at a meeting especially called for that purpose, and duly certified to by the President and Secretary and filed with and approved by the Insurance Commissioner, elect to adopt and become subject to the provisions of this Act, in lieu of any Act or Acts theretofore governing such companies or asso. ciations . Any company or association so elected and fully complying with this Act may thereafter effect insurance as authorized by this Act, and specify in its certificate of insurance then in force, or as .then or hereafter amended.
Acts 1923, :p. 119. Acts 1924. :P:P. 122. 123. ,2412.
SECTION 1 (a)
Insurance Department
2412 (a) Officers of department. Seal. Records. Reports. [There shall be established in this Sta.te 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 commis- sioner." 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

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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 event of a vacancy in the office of insurance commissioner, or in his absence 'or disability for any reason, the deputy shall perform all the duties required of the insurance commissioner. The said deputy shall execute a bond with proper 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 commissioner. The insurance commissioner may also appoint a clerk in addition to the one already employed by the comptroller, 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 document or paper executed by such insurance commissioner in pursuance of any authority conferred upon him by law and sealed with the seal of his office, and all copies of papers certified by him and authenticated by said seal, shall in all cases be evidence equally and in like manner as original thereof and shall have the same force and effect as the original would have in any suit or proceeding in any court in this State . The office of the insurance commissioner shall be deemed a public office and the records, books and papers thereof, on file therein, shall be deemed public records of the State, except as may be provided otherwise herein . The com.Jllissioner shall publish and report annually to the legislature his official transactions, and shall include in such report abstracts of the annual statements of the several insurance companies and bonding and fidelity companies and an exhibit of the financial condition ana 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 expenditures of the department for the preceding year, and such other information and recommendations relative to insurance and insurance laws of the State as he shall deem proper.]
Acts 1Pl2. p, 119. 2413.

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2412 (b) Compensation 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, $J,ooo.oo per annum; and the additional clerk of the department, $2,000.00 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 receive any other fees or compensation whatsoever: Provided, that in no event shall the salaries paid said officials exceed the fees receiv~d under the provisions of the law.]
Acts 1912. DD. 119. 128 : (al Acts 1919. D. 283.
2412 (c) Appropriation for payment of salaries. [The sum of $7,500.00, or so much thereof as may be necessary, is appropriated annually, and the same is hereby appropriated for the payment of all salaries herein provided for and fixed for the first year's service under this law.]
Acts 1912. DD. 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 therefor, and atthe end of every calendar month, or oftener, in the discretion of the commissioner, shall pay into the State treasury, all amounts collec.ted by him.]
Acts 1912. DD. 119. 121.
2412 (e). Fees, taxes, etc. [All fees, license taxes and other dues and taxes now imposed by the laws of this State and by this law on insurance companies, shall be collected as now provided by law, and paid into the State treasury as hereinbefore provided.]
Acts 1912. DD. 119. 128.
2412 (f). Examination of insurance companies. [The insurance commissioner may at any time have the right to examine

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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, having 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 disposi11g 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, he, his deputy or any examiner authorized by him, may examine under oath, the officers and agents of such company, and all persons deemed to have material information regarding the company's property or business. Every such compan y, 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 and aid t:he 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 testimony sworn to of its officers or agents or other persons examined under oath concerning its affairs, and said report so verified shall be presumptive evidence in any action or proceeding against the company, its officers or agents as to the facts therein stated. The insurance commissioner. shall grant a hearing to the company examined before filing any such report; and may withhold any such report from public inspection for such time as he may deem proper,

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not to exceed sixty days, and may after so filing, if he deems it for the interest of the public to do so, publish any such report or the result of any such examination in one 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 examinations 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. DD. 119. 121 .
2433. 2514 (j). 2564 (DD): 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 same in any court of competent jurisdiction.]
Acts 1912. DD. 119. 126.
2412 (h). Blank forms 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 or more blanks in form approved by him and adapted for such statements.]
Acts 1912. DD. 119. 125.
2412 (i). Additional rules and regulations. [The insurance commissioner shall have full power and authority to prescribe such additional reasonable rules and regulations as he may deem proper for the control and government of all insurance

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companies mentioned in this law. It shall be the duty of such companies to comply fully with such rules and regulations before they shall procure any business in this State, either directly or indirectly, or to continue to do business in this State.]
Acts 1912. Ilil. 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 sale any of its capital stock such company so receiving 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 invested as the law directs and the company fully organized and licensed to do business in the State, thereby becoming subject to the rules and regulations hereinbefore provided.)
Acts 1912. vv . 119. 136.

2412 (k). Fire inspector and assistant. Duties and powers.
The commissioner shall have the power as hereinbefore provided, to appoint a competent person to be known as State Fire Inspector and also a person to be known as Assistant State Fire Inspector, and when any property is destroyed by fire, and the commissioner deems it proper to have the cause of such fire investigated, he shall cause such State Fire Inspector, or the Assistant State Fire Inspector, to make a thorough investigation of all the facts connected with such fire, and report to him in writing under oath . Such inspector or his assistant, when in his opinion such proceedings are necessary, shall take the testimony of all persons supposed to be cognizant or have information or knowledge in relation to the matter as to which the examination is herein required to be made, and he shall cause the same to be

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JI

reduced to writing, and if he shall be of the opinion that there is evidence sufficient to charge any person with the crime of arson he shall cause such person to be arrested on a warrant, and cause the same to be full y investigated before an officer as is now provided for committal trials, or he shall furnish the Solicitor-General of the Circuit in which the fire occurred all such fac ts, together with the names of witnesses, and all the information obtained by him in such investigation .

Such Fire Inspector, and his Assistant, appointed to co nduct such examination, shall have the same pow er as Justices of the Peace for the purpose of summoning before him , in the county where the fire occurred, and compelling the attendance of witnesses instanter or at such other time as may be designated by the said State Fire Inspector, or his Assistant, to testify in relation to any matter which by the provision of this Act is the subject of investigation. Said State Fire In spector, or his Assistant, shall ha ve the right to administer oaths to witnesses appearing before him, and shall have the power to compel the witnesses to answer questions pertaining to any invest igation as now prov ided by law for committal cour ts; and said In spec tor and his Assistant, shall have all the power now conferred by law on cou rts of inquiry in the State in the investigation of any matter coming before him under this Act.
Acts 1912. :o:o. 119, 131.
Acts 1922, :o. 120.
The office of Assistant Fire In spector shall be fil ed by the Commi ssioner, and he shall be co ntinued in office for such term, and at su ch compensation, as the exigencies of the Department ma y, in the discretion of the Commissioner, warrant and requ ire.
Acts 1922, :o:o. 120. 121.

- 24 12 (1). In spector's authority to go upon premises . [Said Fire Inspector for the purpose of making the investigation required by thi s law, shall have authority to go upon the premi ses where the

32

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fire occurred and make investigation as to the cause and origin of fire.]
Acts 1912. vv. 119. 132.
2412 (m) . Inspector's compensation. [The insurance commissioner shall have power to prescribe the compensation of the fire inspector for all examinations required by this law and said compensation shall be paid and all other expenses incurred ' in such examination shall be defrayed by the fire insuran ce companies doing business in this State, and a tax of not more than one-tenth of one per cent. in the discretion of the insurance commissioner on the gross 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 monies received and disbursed under the provisions of this section and shall include them in his report to the legislature, provided that should the amount thus collected in any one year be in excess of the amount required to meet the expenses herein contemplated, such excess shall be held subject to the order of the commissioner to be used for the same purpose in the succeeding . year, provided sections 2412 (I) and 2412 (m) 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, vv. 119, 132.
See pp. following 2412 (1 to 19).

SECTION 2.
Insurance Companies, How Authorized to Do Business.
2413. Insurance commissioner. The comptroller-general shall be the insurance commissioner of this State, and shall be

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33

charged with the execution of all laws regulating the business of insurance in the State of Georgia.
Acts 1887. D. 113. 2412 (a).

2414. Companies must be licensed. It shall not be lawful for any insurance company chartered by this State, or other States, or foreign government, to transact any business of insurance in this State without first procuring a license from the insurance comm1ss1oner.
Acts 1887. v. 114.
t 2415 (a) .

LICENSING OF INSURANCE COMPANIES.
2415. License, how obtained. Before said commissioner shall issue such license, such insurance company must fully comply with all of the provisions of this article, and file with said insurance commissioner a statement under oath of its president and secretary, specifying-
First. The name and locality of the company.
Second. The condition of such company on the thirtyfirst day of December then next preceding if such company was engaged in business on said date and if not so engaged on said date, then on the date when said company began to do business, exhibiting the following facts and items in the following form, namely:
r. 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-

3:4

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(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 m banks to the credit of the company.
(3) The amount of cash m the hands of agents and m the course of transmission.
(4) The amount of loans secured by bonds and mortgages on real estate.
(5) The amount of other loans, and how secured.
(6) The amount of bonds of this State, of other States in United States, and of any stocks owned by the company, specifying the amount, number of shares, and par and market value of each kind of stock.
(7) The amount of interest actually due and unpaid.
(8) The amount of premium notes on hand upon which policies have been issued.
(9) The amount of all other assets, real and personal, not included hereinbefore.

Third. The liabilities of the company1 specifying-
I. The amount of losses due and yet unpaid. 2. The amount of claims for losses resisted by the company. 3 The amount of losses not yet due, including those reported to the company on which no action has yet been taken. 4 The amount of dividends declared and due and remain_ ing unpaid. 5 The amount of dividends declared but not yet due. 6. The amount of money borrowed.

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35

7 The amount of all other claims against the company. 8. The amount of reserve for reinsurance.

Fourth. The mcome of the company during the preceding year specifying-
I. The amount of the cash premiums received. 2 . The amount of notes received for premiums. 3 The amount of interest money received. 4 The amount of income received from other sources.

Fifth . The expenditures during the preceding year, specify-
Ing-
I. The amount of losses paid during the year. 2. The amount of dividends paid during the year. 3 The amount of expense paid during the year, including fees and commissions to agents and officers of the compan y. 4 The amount paid in taxes. 5 The amount of all other paymc:;nts and expenditures.

Sixth . The greatest amount insured in any one risk, and the total amount of insurance outstanding.

Seventh . A certified copy of the Act incorporating the company.
Acts 1887, v. 114. Amended August, 1929.
2412 (h ), 626 (b), P. C.
2415 (a). Issuing of license. [It shall be the duty of the insurance commissioner to issue license to the insurance companies

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and agents when they shall have complieq with the requirements of the laws 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 of 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, t>t>. 119. 123.
n 2564 (m ). 2564 (o). 2414.
2415 (b). R evocation 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 commissioner, the attorney-general and the Governor of the State why said license shall not be revoked. Upon the hearing of the said cause, the said board may in its discretion revoke such license of any such insurance company or prescribe the conditions upon which such insurance company may be allowed to continue business in Georgia.]
Acts 1912. t>t>. 119. 123.
n 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 suitor proceeding brought against it in any court in this State, remove said suit or proceedi ng 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

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:fT

State, al')d to publish such rev~cation in some newspaper of general circulation published in this State.

Acts 1909, D. 147. Note: Unconstitutional. 257 U. S.. D. 529. Terrel vs. Burke Construction Co.

241 7 . Foifeited 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 license shall not be renewed in ess than two years from the date of its forfeiture.

241 7 (a). Failure to pay judgment is ground for revoking license. If any in surance company, domestic or foreign, doing business or insuring against loss or damage resulting to the insured by reason of liability asserted against the insured on account of accident to, injuries to, or the death of any other person, or injuries or damage to the property of others, shall fail or refuse to pay off and discharge any judgment rendered against such insured for liability covered by such insurance written by said company in the State, within thirty days after such judgment shall have become final* by reason of having been affirmed, or by reason of the time within which proceeding to appeal from the same having expired, or within thirty days from the passage of this Act, as to, judgments which shall have become final at the time of its passage or prior thereto, shall not be permitted or licensed to do business in this State; provided that this shall not apply when the amount of the judgment exceeds t~e amount of the insurance, and the company has paid so much of said judgment as equals the amount stated in its contract of insurance. The failure of any such company to pay off the amount of said judgment or the a~ount stated in its contract of insurance, .as the case may be, shall be a ground for the revocation of any license granted to it to do business in this State, and for the refusal tb grant or renew such license so long as said company fails to make such payment. The provisions of this Act are cumulative of the pro-
*The Drinted act reads "first" instead of "final."

INsuRANCE LAws
visions of the laws of this State as to revoking the license of such compames.
241 7 (b). Hearing. Order of revocation. Whenever it shall be brought to the attention of the insurance commissioner that any company has failed to pay such judgment under the circumstances stated in the preceding section, it shall be the duty of the said insurance commissioner, and it is hereby made his duty, to notify the said company to show cause before him in not less than five days why its license to do business in Georgia should not be revoked. Upon said hearing if it is made to appear to the insurance commissioner that the said compan y failed to pay a judgment, or so much thereof as is required by this Act, under the circumstances provided in Section I of this Act, it shall be the duty of the insurance commissioner, and it is hereby made his duty, to declare the said company's license to do business in Georgia revoked, and after such declaration the company shall not longer be authorized to transact business in this State, except that it shall be authorized to take such proper steps as may be necessary to liquidate its existing business in this State, but shall not be authorized to issue any new policies of insurances.
241 7 (c) . Renewal of revoked license. After a company's license has been revoked under this Act, the same may be renewed and reinstated by the insurance commissioner whenever it is made to appear to him that the judgment or judgments of the kind provided in this Act, or so much thereof as is required by this Act, have been paid, but no company, the license of which may hereafter be revoked under the terms of this Act, shall have its license reinstated or renewed, or a new license granted to it, so long as the judgment or judgments, because of which its license was revoked, shall remain unpaid.
Acts 1922. p. 126.

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39

SECTION J.
Bonds and Deposits 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 in bonds or stocks, 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 for which the same is mortgaged. Upon filing such sta tement, 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 State, shall issue license to said company to transact business in this State. Said statement and license must be renewed annually on the first day of January, or within sixty days thereafter, and must show the condition of said company on the thirty-first day of December. In addition to this statement, all companies, including co-operative or assessment life insurance companies doing business 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 under 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

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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 refuse 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 insurance commissioner shall recall and cancel the license of such delinquent company.
Acts 1893. v. !ll.
t 6457, 6459, 6461. 2449, 2564 (a), 2451-2454. 2412 (h). 626 (b), P . 0. Amendment b:v legislature to charter of mutual company reducing its capital below reQuired amount was invalid. 118/796 (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 bonds of this State which according to the acts and resolutions of the General Assembly are valid; or bonds of any county or municipality in this State which have been validated under the laws of this State, and which amount, according to their face value, to ten thousand dollars, which bonds shall be receipted for by the State Treasurer, and especially deposited by him in the vaults of the treasury, and whenever such company ceases to do business in this State, and has settled up all claims against it as hereinafter provided, said bonds shall be delivered up to the proper party on presentation of the treasurer's receipt. While said bonds are so deposited the owners of the same shall, subject to the notices hereinafter provided for or given, be entitled to collect the coupons and use them. 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. 1889. p . 45. 1905. p. 75.
" 6457, 2449, 232, 445, 2424, 2458.
2564 (ddd) (eee) (fff) (ggg) following ,2427.
Amended by Act of Dec. 17, 1900. following.
N. B. Original reQuirement $25,000. Amended b:v Act 1889, p . 45. Act of 1905 repeats In wrar the original Act, and ignores the provision of Act !flOg for reduction in amount. Act of 1899 Is effective.

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Registered Bonds Required
An Act to authorize and require all insurance and fidelity and deposit companies and fidelity or surety companies that may now have bonds d~posited in the State Treasury, or that may hereafter be placed there, to have same registered.
Section 1. Be it enacted by the General Assembly of Georgia, and it is hereby enacted by the authority of the same, That all insurance and fidelity and deposit companies and fidelity or surety companies which may now have coupon bonds deposited in the treasury be required to substitute registered bonds for the same on or before January I, I 90I.
Sec. 2. And be it further enacted, That all such companies making deposits after January I, I90I, be required to furnish . registered bonds.
Approved December I7, I900.
2420. When notice of loss is given, bonds to be retained. Whenever any loss insured against occurs, the irisured, in order to secure his recovery, may give notice to the State Treasurer of the pendency of said loss, and of the amount claimed, after which time the State Treasurer shall be bound to retain, subject to the order of the court trying any suit that may be brought for the recovery of such loss, a sufficient amount to pay the judgment in said case in the event of recovery; and if the amount for which 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.
I 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.

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application, shall deliver to him bonds sufficient in their market value, if in his custody, to satisfy said judgment. Said receiver's receipt shall be a complete discharge to said treasurer and the State of Georgia. 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 residue in the hands of such receiver, he shall pay over the same to the agent of the company, taking his receipt for the same, which shall be filed and recorded with the other papers in the case..
Acts 1887. v. 116.
u 5485, 2559.
2422. Conjlictjng 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 claims to the judge of the superior court appointing him , who shall, by order, provide for a bill of interpleader, as in cases in equity.
Acts 1887, v. 117.
u 2559, 5471.
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 full y 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

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43

this article require, said treasurer shall return to said company the bonds so deposited, upon order from said commissioner.
Acts 1887, v. 117.
u 2425, 2561.

2423 (a). Withdrawal of fire insurance companies. [Any foreign fire insurance co~pany 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, including any and all securities on deposit with the State official designated by law for the protection of the beneficiaries of such policies or contracts, provided such company or companies, as a condition precedent to such withdrawal, reinsure all such policies or contracts, in some other company or companies authorized to do business in this State, and shall file with said insurance commissioner a list showing the name or names of such company or companies in which such outstanding policies, contracts or obligations have been so insured; and provided further, that the securities on deposit as aforesaid, shall not be so withdrawn from the custody, 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 of such withdrawal, no unsettled claim, claims or losses outstanding against said company or companies so desiring to withdraw; and provided further, that said reinsurance shall be approved by the insurance commissioner.]
Acts 1913. v. 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 require more bonds to be

44

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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, of the fact of such failure and revocation of license; the cost of which publication shall be paid by the company failing to comply with the provisions of this Article.
Acts 1887. v. 117. n 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 property of citizens of this State on which no losses have accrued, and the company wishes to withdraw its deposits, before being allowed so to do said company shall take up and satisfy said policies, and give notice of its intention to withdraw from the State, and of the fact that it has satisfied all losses and the claims of 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, v. 117. n 2423, 2561.

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, ca-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 $w,ooo.oo. Said deposit to be made under the same conditions that deposits of non-resi>- ;

INsURANCE LAws

45

dent fire insurance companies are made with the State Treasurer: Provided, that this shall not apply to such companies as operate in not more th~n four counties in a division in this State, or to farmers' co-operative companies doing fire insurance business in . this State on the assessment plan where their policies stipulate that all the property, real and personal, of the policyholders ts pledged for the payment of the policy.]
Acts 1912. pp. 119. 142. Amended Aug. 19, 1922 (see following varagravh.)

2425 (b). Amount of assets required. Emergency clause and conditions of exemption. 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 issued by such companies shall embrace what is termed an emergency clause, whereby the company reserves the right to call for extra assessments from its policyholders whenever the contingency arises. Samples of all policy contracts to be used by such companies shall, before issuance, be submitted to the insurance commissioner for his approval;
Provided, that nothing in this Act shall require any mutual fire insurance company chartered under the laws of this State to embrace in their policies said emergency clause when such company shall have deposited with the Treasurer of the State registered securities in the amount of $wo,ooo, consisting of bonds of the United States, bonds of the State of Georgia, bonds of municipalities or counties of the State of Georgia which have been duly validated, or such other securities as the insurance commissioner shall deem adequate, nor shall the policyholders of any such company that shall make said deposit be liable for any assessments, except for unpaid premiums, to meet any losses or liabilities that may be incurred by any such company; which deposit shall be in lieu of any other deposit required by this Act; and the amount of said deposit shall always be maintained as a surplus in excess of the reinsurance reserve required under the present law.
Acts 1912. I>P. 119. 143. (a) Acts 1922. p. 122.

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2425 (b-1). The Treasurer of this State is hereby authorized and directed to receive deposit of bonds or other securities as provided in Sections 2425 (a) and (b) when the deposit of the same is approved by the insurance commissioner, and hold the same subject to the provisions of the laws of this State relating to deposits by the fire insurance companies.
Acts 1922. I>I>. 122. 124.
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 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 compantes.
Acts 1887, I>. l18. 6457. 2462-3.
2427. OJ 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 of 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. Any such securities as may be needed by the company may be taken from the treasurer, at any time, by replacing them with other securities equally acceptable to the insurance commissioner. The treasurer's certificate for the same shall be furnished to the company.
Acts 1887. I>. l18. 1905, I>. 76. ,,2419-2426,

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47

2564 (ddd). Amount of deposit. 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 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 ($IOo,ooo.oo) as a guaranty fund for its policyholders, and na such company organized, or which may hereafter be organized, under the laws of any State of this Union, foreign State, and not now authorized to do business in this State shall be authorized or licensed to transact the business of insurance in this State until it has produced evidence satisfactory to the Insurance Commissioner of Georgia, that it has on deposit in the State in which it is chartered or organized, with the proper officer thereof, one hundred thousand ($Ioo,ooo.oo) dollars, in such securities as may be deemed by such officer equivalent to cash, subject to his order, as a guaranty fund for the security of policyholders, provided, however, that such non-resident insurance company may make deposit with the Treasurer of Georgia, instead of in the State of its organization, should it elect to do so.
Acts 1920, J>. 212. Park's Annot. Code, Vol. 8. 2419-26.

2564 (eee) . Annual increases. All life msurance companies now authorized to transact the business of life insurance in this State whose deposit is less than one hundred thousand dollars ($Ioo,ooo.oo) shall annually, on or before the JISt day of December of each year, increase its deposit in an amount not less than 10 per cent. of the amount of deposit which it is required to have under existing laws, until deposit aggregates not less than one hundred thousand ($Ioo,ooo.oo) dollars.
Acts 1920, J>. 213. Park's Annot. Code. Vol. 8.

2564 (fff). Industrial Life Insurance Companies. Effective date of law. The provisions of this law shall apply to industrial life insurance companies in the same manner as to other life

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insurance companies; provided, such Act shall take effect January Ist, 1921.
Acts 1920, D. 213. Park's Annot. Code, Vol. 8.
2564 (ggg). Validation and valuation of deposits. All deposits of bonds, collateral or assets which are or may hereafter be required under the laws of this State, of any life, accident, or casualty insurance company incorporated under the laws of Georgia, as a condition to its being authorized to do business in or on any other account whatsoever, may be made in bonds of the United States of America, or bonds of this State, which according to the Acts and resolutions of the General Assembl y are valid, or
bonds o'f any county or municipality in this State which have been
validated under the laws of this State. The said bonds shall be accepted by the appropriate officer of this State for such deposit to the extent of the face value thereof, but in no event in excess of such face value; however, if the actual market value of said bonds be less than their face value, then they shall be so accepted at onl y their said market value at the time they are so offered.
All laws and parts of laws in conflict herewith are hereby repealed.
Acts 1924, D. 121.
2428 . Measure of the required deposit. The insurance commissioner shall, as soon as practicable after the filing of the annual statement 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 in force on the thirty-first day of December immediately preceding, upon the basis of calculation fixed by existing laws of this State; and should any company issue policies based upon a higher standard, such policy shall be valued according to such higher standard. For the purpose of making such valuation the insurance commissioner may employ a competent actuary to do the same, who shall be paid by the company for which the services are rendered; but nothing in this section shall prevent an y company from making

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49

said valuation herein contemplated, which may be received by the insurance commissioner upon such proof as he may determine. The expense of procuring such proof shall be paid by the company. Upon ascertaining, in the manner above provided, the net reserve value of all policies in f~rce issued by any company desiring to operate under the provisions of this section, the insurance commissioner shall notify such company of the amount thereof, and within sixty days after the date of such notification the officers of such company shall have the right to deposit with the Treasurer of this State, for the security and benefit of all its policyholders, securities to an amount which, together with the sum already deposited with said treasurer, and such sums as may be deposited by said company with other States and governments, by requirements 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 governments 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 has 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 may be lawfully acquired by such company, under the provisions of law, at such value as may be determined upon by two disinterested appraisers residing in the county in which the real estate is situated, such appraisers to be appointed by the insurance commissioner of thi s State. Such real estate shall not be sold or encumbered unless se curities of equal value as herein required be deposited with the Tre1surer of this State in lieu thereof.
Acts 1906, v. 107.
2408. 2409, 2438.

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2429. Certificate by insurance commissioner. 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 and the net reserve value of outstanding policies, and the table upon which the same is computed,. and that it is authorized to transact the business of life insurance in this State: Provided, that any such certificate shall expire on the thirtieth day of May in the year following its issue. If requested by such company, the insurance commissioner shall furnish such company with a certificate over his signature, to be attached to or printed on policy issued by such company, in substance as follows: State of Georgia, Insurance Department, State Capitol, Atlanta, Ga., _____ __ __ 19 __ . The net reserve value of policies issued by_______ _______ _ life insurance company of_ _______________ , Georgia, is secured by a deposit of acceptable securities in accordance with the compulsory reserve deposit laws of this State, enacted in the year 1906, ____________ , msurance comm1ss1oner.
2413.
2430. Effect of failure to make deposit. Upon the failure of any company having once exercised the privilege of coming under the provisions of the preceding section to make the deposit in the time provided therein, the insurance commissioner shall notify such company to issue no new policies in this State until there shall have been compliance with said requirements. The insurance commissioner shall revoke the license of any company issuing policies after such notice and before compliance with said requirements.
15.

2431. Changes of securtttes deposited. All companies, coming within the provisions of the two preceding sections, shall have the right at any time to change their securities on deposit by substituting for those withdrawn a like amount in other securities

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of the character provided for, and whenever the net reserve value of policies outstanding and in force against any company is less than the amount of securities then on deposit with the Treasurer of this State, said company shall have the right to withdraw such excess; but at least one hundred thousand dollars shall remain on deposit. Companies -having on deposit stock or bonds as security may collect the dividends and interest accruing on such deposits; but upon default by such company to deposit additional security as called for by the- insurance commissioner, the State Treasurer shall collect the interest on such security as it becomes due, and add the same to the securities in his hands belonging to such company.
' 6459.
243 2. Approual of deposits. Securities offer~d for deposits under the preceding section shall be passed upon by the insurance commissioner and approved by him before being deposited with the State Treasurer, and before the withdrawal of any securities from the treasurer by the company the insurance commissioner shall first approve such withdrawal and the substitution of securities therefor.
SECTION 4
Regulation of Insurance Companies
2433. Inuestigation by commissioner. It shall be the duty of the insurance commissioner, whenever he shall deem it expedient so to do, and he is hereby empowered, either in person or by an expert examiner by him appointed, to investigate the affairs of any insurance company doing business in this State; to require free access to all books and papers of any company, or the agents thereof; to summon and examine under oath any person in this State, relative to the affairs and condition of said company; for probable cause, to visit at its principal office, wherever it may be,

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any insurance company not of the State, in which the substantial requirements of this Article, as to valuations of policies of life and accident insurance companies, and calculations for the reinsurance reserve of fire, marine, and inland insurance companies are not in force, for the purpose of investigating its affairs and
condition; and to revoke its authority to do business in this State,
if said company refuses to permit the examination. All expense incurred in the investigation of said companies shall be paid by the companies so examined .
Acts 1887, I>. 118.
U 2412 (f ), 2564 (I>I>l. 2564 (rr).
2434. Calculation of reinsurance reserve. For every fire insurance company doing business in this State, the insurance commissioner shall' calculate, or cause to be calculated the reinsurance reserve for unexpired fire risks, b y taking fifty per cent. of the premium received on all policies that are written for a period of one year or less, and according to the New York percentage table for calculating reinsurance on all premiums received that have more than one year to run; and in marine and inland insurance, he shall charge all the premiums received on unexpired risks as a reinsurance reserve. Having charged against the company the reinsurance reserve as above determined for fire, marine, and inland insurance, and adding thereto all other debts and claims against the company, he shall, in case he finds the capital stock of the company impaired more than twenty per cent., suspend th e license issued to said company and require the company to cease to do new business within this State, and give notice to said company to make good its whole capital stock within ninety days, and if this is not done he shall revoke the license of such company and debar the same from doing business in this State.
Acts 1887, I>. 119. Acts 1899, I>. 45.
15, 2415 (3), 2442, 2491.
2435. Call on stockholders. Any such insurance company, receiving the aforesaid notice of the insurance commissioner to make good its whole capital stock within ninety days, shall forth-

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with call upon its stockholders for such amounts as will make its capital equal to the amount fixed by the charter of said company.
Acts 1887. I>. l19.

2436. Calculations of reinsurance reserve by commissioners of other States . In the case of companies chartered by other -5tates or foreign governments, the insurance commissioner of .this State shall accept calculations of the reinsurance reserve made by the insurance commissioners of the States in which they are chartered, when such calculations are made and furnished to the insurance commissioner of this State by the first of March in each and every year .
Acts 1887. I>. l19.

2437. Proceedings when home companies are insolvent. Whenever the insurance commissioner shall have reason to believe, from an examination into the affairs of a company, that any insurance company of this State is insolvent or fraudulently conducted or that its assets are not sufficient for carrying on business, as contemplated by the laws of this State, he shall revoke the license of such company and require said company to cease to .do business in this State, giving public notice of such revocation of authority. Any insurance company which has been suspended or which has had its license re-voked may be reinstated upon showing that its condition is such as to authorize it to do business in this State, and the insurance commissioner may reinstate such company whenever it makes such showing.
Acts 1887. I>. l19. Acts 1899. I>. 45.
2441, 2442.

2438. Calculation of net value of life policies. The insurance commissioner shall, as soon as practicable in each alternate year, calculate, or cause to be calculated, the net value, on the thirty-first day of December of the previous year, of all the policies in force on that day in each life insurance company doing business in this State, chartered by this State, aud of every other life insurance company doing busine~s in this State, that shall

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fail to furnish him, as hereinafter provided, a certificate of the Insurance Commissioner of the State by whose authority the company was organized, or by the State in which it may elect to have its policies valued and its deposit made, giving the net value of all policies in force in the company on the thirty-first day of December of the preceding year, which calculation of the net value of each policy shall be based upon the American Experience or Actuaries' table of mortality, at four per cent. interest per annum: Provided, that when any life company shall have a cash capital of not less than one hundred thousand dollars, full y paid up and safely invested, the reserve to provide for the liabilities on all policies of such company, not participating in the profits of the company, shall be computed by the American Experience or Actuaries' table of mortality, with interest at not less than three nor more than six per cent. per annum, in the discretion of the commissioner, and with reference to the rates of premiums charged by such company. The net value of a policy, at any time, shall be taken to be the single net premium which will at that time effect the insurance, less the value at that time of the future net premiums called for by the table of mortality and rate of interest designated.

Acts 188'7. v . 120.
2428. 2452. 2453.

2439. Where net value of policies is not on hand. In case it is found that any life compan y doing business in this State has not on hand the net value of all its policies in force after either debts of the company and claims against it, exclusive of capital stock, have been provided for, it shall be the duty of the insurance commissioner to publish the fact that the then existing condition of the affairs of the company is below the standard of legal safety established by this State, and he shall require the company at once to cease doing new business; and it is hereby made the duty of the insurance commissioner, after having determined, as abJYe, the amount of the net value of all policies in force, to see that the compan y has that amount in safe legal securities after all debts

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5S

and claims against it, exclusive of capital stock, have been provided for.
Acts 1887. D. 120.

2440. Valuation by commtsstoners of other States. He shall accept the valuations made by the insurance commissioner of the State under whose authority a life insurance company is chartered, when such valuations have been made on the basis mentioned above: Provided, the company shall furni sh to the insurance commissioner of this State, on or before the first day of March in each and every alternate year, a certificate from the insurance commissioner of such State, setting forth the value, calculated on the dates design ated above, of all the policies in force in the company on the previous thirty-first of December, and stating that after all the other debts of the company and claims against it at that time were provided for, the company had in safe securities an amount equal to the net value of all its policies in force, and that said company is entitled to qo business in its own State; and every company doing business in the State during the year for which the statement is made, that fails to furnish promptly the certificate aforesaid, shall be required to make full detailed list of policies and securities held or owned by the company to the insurance commissioner of this State, and shall be liable for all charges and expenses consequent upon not having furnished said certificate.
Acts 1887. D. 120.

2440 (a) Commissions on sale of stock, and sale of life insurance policies and agency contracts. [No officer, agent or other person selling or negotiating stock in any insurance company in this State shall receive either directl y or indirectl y more than ten per cent. of the sales of any of said stock. No president, vice-president, secretary, treasurer, or director or any other executive officer of any insurance company shall participate in the commissions received by any person selling, negotiating the sale of any stock of any insurance companies either directly or indirectly, nor shall any salaried officer of any insurance company

INSURANCE LAWS
doing business in this State participate in the commissions arising from the sale of life insurance policies or agency contracts of such companies.]
Acts 1912. I>I>. 119. 129.
2440 (b). Rebates and discriminatory contracts prohibited. [No insurance company ~r insurance agent doing business in this State shall enter into any contract to rebate any insurance premium or any part thereof of any insured or other person. No person shall sell or offer for sale in Georgia and no insurance company shall do business in this State which sells or offers for sale to the public any "special contract," "board contract" or any other form of policy or contract whereby any discrimination in any form or character is allowed to any particular person or persons. Any insurance company violating the provisions of this section shall be subject to have its license revoked as hereinbefore provided. Any person acting as agent for any insurance company and the party receiving the benefit of any such rebate or discrimination in v iolation of thi s section shall be deemed guilty of the offense of misdemeanor and shall be punished as provided in section 1065 of the Penal Code.]
Acts 1912. I>I> . 119, 129. 627 (b). P . C.
SECTION 5
Proceedings 1n Case of Insolvency
2441. P roceedings where home companies fail to maintain standard. It shall be the duty of the commissioner, after he has notifi ed a life insurance company, chartered by the State, to cease doing business until the net valu e of its policies in force is equal to that called for by the standard of safety established by the State, at once to cause -a ri gid examination into the affairs of such com-

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. 57

pany; in case it shall appear that there is no fraud or gross incompetency or recklessness in the management, he may, upon publishing the facts in the case, permit such company to continue its business for one year. Provided, there is, in his opinion, reason to believe that the company may be able to re-establish the legal net value of all its policies in force . At the end of the year named above, he may renew the permission, in case on examina- tion he is satisfied that the company is likely to retrieve its affairs.
Acts 1887. :p. 120. 2437.
2442. If comptroller knows of insolvency. Whenever the insurance commissioner shall have reason to believe that any insurance company of this State is insolvent or fraudulently conducted, or that its assets are not sufficient for conducting the business of the company, or during any non-compliance with the provisions of this Article, his duty shall be as prescribed in Section
2434
Acts 1887, :P. 121.
2437.

SECTION 5 (a).
Commissioner Taking Control of Property and Business .of Life Insurance .Company
2442 (a). Proceedings to take control. [Whenever any domestic life insuran~e company (a) is insolvent; or (b) has unlawfully refused to submit its books, papers, accounts, or affairs to the reasonable inspection of the commissioner or his deputy or examiner; (c) or, in the case of a capital stock company, has neglected or refused to observe an order of the commissioner to make good within the time prescribed by law, any deficiency of its

ss

INSURANCE LAWS

capital, or, in the case of a mutual company, if its assets have not become equal to its liabilities within ninety days from the date of notification thereof by the commissioner; or, (d) has, by contract of reinsurance or otherwise, transferred or attempted to transfer substantially its entire property or business, or entered into any transaction the effect of which is to merge substantially its entire property or business in the property or business of any other company, association, society or order without having first obtained the written approval of the commissioner; or (e) is found, after an examination, to be in such condition that its further transaction of business will be hazardous to its policyholders, or to its creditors, or to the public; or (f) has wilfully violated its charter or any law of the State; or (g) whenever any officer thereof has unlawfully refused to be examined under oath touching its affairs, the commissioner may, the attorney-general representing him, apply to the circuit court or any judge thereof in the judicial district in which the principal office of which such company is located, for an order directing such company to show cause why the commissioner should not take possession of its property and conduct its business, and for such other relief as the nature of the case, the interest of its policyholders, creditors, stockholders or the public may require.)
Acts 1912, I>Il. 119. 133.
2442 (g ) .
2564 (I>IJ), 2507.
2442 (b). Injunction. Hearing and order. [On such application, or at any time thereafter, such court may in its discretion, issue an injunction restraining such company from the trans?.ction of its affairs or disposition of its property until the further order of the court . On the return of such order to show cause, the court shall hear, try and determine the issues forthwith and shall either deny the application or direct the commis. sioner to take possession of the property, conduct the business of such company and retain such possession and conduct such business until on the application of either the commissioner, the attorney-general representing him, or such company, it shall,

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59

after a like hearing, appear to the court that the ground for such order directing the commissioner to take possession has been removed, and that the company can properly resume possession of its property and the conduct of its business.]
Acts 1912. I>I>. 119. 134.

2442 (c). Liquidation. [If on like application an order to show cause and after like hearing the court shall order the liquidation of the business of such company, such liquidation shall be made by and under the direction of the commissioner, who may deal with the property and business of such company in his own name as commissioner or in the name of the company as the court may direct, and the commissioner shall be vested by operation of law with title to all the property, contracts and rights of action of such company, as of the date of the order so directing him to liquidate. The filing or recording of such order in the office of the clerk of the superior court of the county wherein said liquidation is made, shall impart the same notice that a deed, bill of sale or other evidence of title duly filed or recorded by such company would have imparted.]
Acts 1912, I>I>. 119. 135.

2442 (d). Assistants and their compensation. [For the purpose of this section the commissioner shall have power to appoint under his hand and official seal one or more spec ial deputy commissioners of insuran ce as his agent or agents and to employ such counsel, clerks and assistants, as may by him be deemed necessary and give each of such parties such powers to assist him as he may consider wise. The compensation of such deputy, special commissioners, counsel, clerks and assistants and all expense of taking possession of and conducting the business of liquidating any such company shall be fixed by the commissioner subject to the approval of the court, and shall on certificate of the commissioner be paid out of the funds or assets of such company.]
Acts 1912. I>I>. 119, 135:

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2442 (e). Rules and regulations. [For the purpose of this section the commissioner shall have power subject to the approval of the court to make and prescribe such rules and regulations as to him may seem proper.]
Acts 1912. 1>1>. 119. 136.
2442 (f). R eport of commzsszoner. [The commissiOner shall transmit to the legi slature in his annual report the names of the companies so taken possession of, whether the same have resumed business or have been liquidated, or such other facts as shall acquaint the policyholders, creditors, stoc kholders and the public with his proceedings under this sec tion, and to that end the special deputy commissioner in charge of any such company shall file annuall y with the commissioner a report of the affairs of such company, similar to th at required by law to be filed b y such company.]
Acts 1912. 1>1>. 119. 136. 2442 (g }.

SECTION 5 (b).
Receivers for Insurance Companies
2442 (g). Method of putting companies in hands of receivers. [B efore a ny insurance company chartered under the laws of this State or doing business in this State shall hereafter be put in the hands of receiver by any court of equ ity in this State, upon any claim or demand not in judgment, it must first appear that the cause of complaint and the matters and grounds upon which the receivership is sought have been submitted, by the complainant to the insurance commissioner of this State, and that such compl aint of the complainant and the matters charged against such insurance company have been passed upon by the in suran ce commiSSioner sitting in connec ti on with the Governor and the attorney-general in the manner hereinafter provided,

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6J

to-wit: The insurance commissioner, the Governor and the attorney-general sitting as a board as provided in Section 2415 (b), shall, upon such matters and complaint as referred to previously in this section, being filed with the insurance commissioner, proceed to hear the same after giving both the complainant and the insurance company in question, opportunity to be heard, ample and legal time, however, being given for the production of such evidence as either party may deem necessary. During the pendency of such proceedings, the insurance commissioner shall order the company to maintain the assets in statu quo. Upon hearing the same, said commission, or a majority of them, shall render a decision andjudgment recommending or declining to recommend that the commissioner make application, in accordance with Section 2442 (a) et seq., for an order directing the company to show cause why the commissioner should not take possession of its property and conduct its business. No receiver for an insurance company doing business in this State shall be appointed on the petition of any person other than the insurance commissioner, unless it be made to appear to the court where application for such appointment is made, that the insurance commissioner has failed or refused to comply and proceed with the findings of said board.]
Acts 1914, I>. 135.
2442 (a to fl.
U 2564 (DI>), 2564 (QQ).

SECTION 6.
Agents of Insurance Company
2443. Definition of insurance agent. Any person who solicits in behitlf of an y insurance company, or agent of the same, incorporated by the laws of this or any other State or foreign . government, or who takes or transmits, other than for himself, any application for insurance or any policy of insurance to or

INSURANCE LAWS
from such company, or .agent of the same, or who advertises or otherwise gives notice that he will receive or transmit the same, or who shall receive or deliver a policy of insurance of any such company, or who shall examine or inspect any risk at any time, or receive or collect or transmit any premiums of insurance, or make or forward any diagram of any building or buildings, or do or perform any other act or thing in the making or consummating of an y contract of insurance for or with any such insurance company, other than for himself, or who shall examine into or adjust or aid in adjusting any loss for or in behalf of any such company, whether any of s~ch acts shall be done at the instance or request or by the employment of such insurance company, or of, or by, any broker or other person, shall be held to be the agent of the company for which the act is done or the risk is taken.
Acts 1887. 1>. 121.
2448 (a) . 2466, 2491. 2456, 935. 936. 937.
2444. Penalty on agents of unauthorized companies. Any person who shall do or perform any of th~ acts or things mentioned, for any insurance company or agent of said company, without such company having first recei ved a certificate of authority from the insurance commissioner of this State as required by law, shall be guilty of a misdemeanor, and shall also pay a sum equal to the State, county, and municipal taxes and license required to be paid by insurance companies legall y doing business in this State; and it is hereb y made the duty of the insurance commissioner to see that all violators of the provisions of this section are prosecuted.
Acts 1887. 1>. 121.
2465, 2448, 2457, 626, P . 0.
2445. Civil liability . Any person who shall do any of the acts mentioned in the preceding sections shall also. be personally liable to the holder of any policy of insurance, in respect of which such act was done, for any loss covered by the same: Provided, that the penalties provided for shall not apply to adjusters or inspectors of unauthorized insurance companies from whom the

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c1t1zens of this State have purchased insurance for themselves, as provided for in this section, whenever the person or persons purchasing said insurance shall immediately notify the insurance commissioner, giving the name and locality of said company in which they have policies, and at the same time pay to said insurance commissioner the same licenses, .fees, and taxes for each company as are now or may hereafter be required of fire insurance companies authorized to do business by the laws of this State; and when the license fees for any company have been paid in any one year by any person or persons who have purchased insurance from said company, then in that case, any person or persons purchasing insurance from said company thereafter shall not be liable for the license fees of said company during the said year, but only for such taxes on premiums as may be required from time to time of insurance companies authorized to do business in this State: Provided further, that it shall not be lawful for said inspectors to solicit business for their companies.
Acts 1890-1891. I>. 205.
' 2466.
2445 (a). Agent's license. [All persons shall be required to procure a license from the department of insurance before soliciting business in this State except those agents whose names are furnished the insurance commissioner by some reputable insurance company as its accredited agents.]
Acts 1912. I>I>. 119. 124. U 2456. 2.~14 (1), 2448 (a to j).
2445 (b). Requisites to obtain license. Reuocation. [All agents soliciting insurance in the State of Georgia shall, before procuring the license from the department of insurance, make application to the commissioner and before the said commissioner shall issue such license, he shall satisfy himself that such agent is authorized by some reputable insurance company to do business in this State and the commissioner shall be advised and convinced as to the moral character and integrity of such applicant for

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license. The license of any soliciting agent may be revoked at any time by the insurance commissioner in his discretion.]
Acts 1912, DD. 119, 124. The concluding sentence of this Section was declared bY the Georgia Suvreme Court (107 S. E. 857) to be unconstitutional.
2448 (a to J).
2445 (c). Statement showing agents. [The managing agent of each insurance company in this State shall on October 1st, 1912, and each three months thereafter file with the insurance commissioner a statement showing the agents of his company, the amount paid for the license of each agent, and- the date of its payment, which statement shall be verified hy such managmg a g e n t .]
Acts 1912. DD. 119. 128.
2445 (d) . Corporation soliciting or writing life insurance. [Any person or persons incorporated for the purpose of soliciting or writing life insurance in Georgia or for the purpose of offering their stock in said company for sale to th t; public before procuring a license for such incorporation, shall comply with such reasonable rules and regulations as the insurance commissioner may in his discretion prescribe.]
Acts 1912. DD. 119, 130.
2445 (e). False representation unlawful. [It shall be unlawful for any person, firm or corporation to make or cause to be made any fraudulertt or false representations as to the form, nature and character of the policy offered for sale, and any person selling a different form or character of policy from that which he represents himself as selling, or makes any other material misrepresentation as to the benefits accruing under any policy which he sells or offers for sale, shall. be deemed guilty of a misdemeanor and punished as provided in Section ro65 of the Penal Code and an y note or other evidence of debt given in consideration of said policy shall be null and void and any premiums paid

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on such policy may be recovered by such policyholder m any court having jurisdiction thereof.]
Acts 1912. vv. 119. 124.
f 627 (a). P. C.
2446. Service on non~resident companies. Any insurance company not organized under the laws of this State, desiring to transact business in this State, shall file with the insurance commissioner a written instrument or power of attorney, duly signed and sealed, appointing and authorizing some person, who shall be a resident of this State, to acknowledge or receive service of process, and upon whom process may be served, for and in behalf of such company, in all proceedings that may be instituted against such company in any court of this State, or any court of the United States in this State, and consenting that service of process upon any agent or attorney appointed under the provisions of this section shall be taken and held to be as valid as if served upon the company; and such instrument shall further provide that the authority of such attorney shall continue until revocation of his appointment is made by such company by filing a similar instrument with said insurance commissioner, whereby another person shall be appointed as such attorney: Provided, however, that the provisions of this section shall not be construed to alter or amend the laws now of force in this State relative to bringing suits and servmg process on foreign corporations doing business in this State.
Acts 1887. v. 123. u 2542. 2258. 2563-4.
2447. Attorney may be appointed to receive service. If any attorney so appointed shall absent himself from this State, or his usual place of business or abode, or shall secrete himself, so that process may not be served upon him, or .shall have become disqualified from any cause what!'!ver, or shall die, the insurance commissioner shall immediately appoint an attorney for service for such company, of which appointment notice in writing shall be immediately given by said insurance commissioner to such

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appointee and also be sent to the company by mail, or to its general agent or manager, which appointment shall be as valid as if made by the company, and shall continue in force until such absent agent or attorney shall return and give to said insurance commissioner written notice thereof, or until the company shall have made another appointment in the manner above prescribed. Service of process as aforesaid, issued by any such court as aforesaid, upon any such attorney appointed by the company, or by the insurance commissioner,. shall be valid and binding, and be deemed personal service upon such company so long as it shall have any obligations or liabilities outstanding in this State, although such company m1!)' have withdrawn, been excluded from, or ceased to do business in this State. If any company shall fail, neglect, or refuse to appoint and maintain within this State such attorney or agent, it shall forfeit the right to do or continue business in this State.
Acts 1887. I>. 123.
2564 (1) .
2448 . Company not complying, fees, etc. No person shall act as agent in this State of any insurance company of this or any other State or foreign government, doing a business in any manner, until said company has fully complied with the provisions of this Article, and received from the insurance commissioner certificates of authority for itself and its agents to transact business in this State. The fees charged insurance companies shall be as follows: For filing certified copy of charter, twenty dollars; for examination of annual statement, twenty dollars; and for certificates of authority or license to agents, three dollars each, provided, however, that all fire insurance companies doing business in this State shall in lieu of such fees and charges, pay to the insurance commissioner one fee of $200.00, and upon paying such fee and having otherwise fully complied with the provisions of this Article such fire insurance companies shall be entitled to receive from the insurance commissioner certificates of authority for itself, and its agents, to transact business in this State; [fire and storm assessment insurance companies in the State of Geor-

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gia, the business of which is confined to four counties or less, or operated by independent divisions composed of four counties or less, shall pay to the insurance commissioner a fee of twentyfive dollars, in lieu ~f two hundred dollars.] (a) In addition to the payment of the above fees, each of said companies shall make a report to the commissioner on the first day of May of each year, or within sixty days thereafter, under oath of the president or secretary thereof, showing the entire amount"of premium receipts of every character and description (deducting return premiums on cancelled policies) of said companies in this State during the year or fractional part of a year ending the 3oth day of April next preceding, whether said premiums were received in money or in notes, credits, or any substitute for money, to be taxed as may be provided by law from time to time.
2443. Acts 1925. t>. 215.
Acts 1887. t>. 124. 1909. u. 87. (a) Acts 1910. t>. 55.
2459, 2443.
2448 (a). Fire and casualty insurance agents. Definitions. For the purposes of this Act an "Insurance Agent" is hereby defined to be an individual or a corporation or any member of a co-partnership or association or any officer or agent of a corporation authorized by any insurance company lawfully qualifiea to transact business in the State to solicit, negotiate or effect contracts of insurance on behalf of any insurance company. All such agents shall thereby become liable to all the duties, requirements, liabilities and penalties herein provided, but this act shall not apply to any executive or traveling salaried employee of any such insurance company. The phrase "company" or "insurance company" shall include only insurance companies writing fire or casualty insurance or both.

2448 (b). Licensing of agents by insurance commissioner. No insurance company admitted to do business in this State shall write or issue any fire or casualty insurance policy on any risk in this State except through a resident agent or resident agents licensed by the insurance commissioner of this State;

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nor shall any company or agent pay any remuneration or commissions for said business to any one except to an agent licensed by said insurance commissioner, provided, however, that this section shall not apply to property of railroad companies and other common carriers. No person except as hereinafter provided shall be licensed as an insurance agent in this State except upon the application of a company authorized to do business in this State, which said application shall be accompanied by a certificate signed by an executive officer of such company and certifying that after inquiring into the facts to the best knowledge, judgment and belief of such company, such person is of good character and is or expects to become bona fide engaged in the business of an insurance agent (as defined in this Act), that he has such moral and financial standing as to make it probable that he can carry on such an agency without detriment to the public, that he expects bona fide to serve the public and not to procure the license chiefly for the purpose of getting a rebate or commission on insurance written for himself or his family or some partnership or corporation in which he is interested or with which he is connected, and that he has such knowledge of the business and of the law and practices governing and relating to the same as will enable him to carry on the business in a competent manner and without detriment to the public.

2448 (c). Non-resident agent's license. Application for. A license to be known as a "non-resident's license" (to be good for one year 'from the date of its issuance) will be granted by the insurance commissioner to any non-resident of this State upon the written application of such non-resident certifying that he is regularly licensed by the Department of Insurance of the State in which he resides, and that he will not negotiate nor effect any contract of insurance on property in this State in whole or in part in any company not qualified to do business in this State, and upon payment to the insurance commissioner a fee of $ ro.oo.

2448 (d). License of corporation. No corporation shall be licensed as an insurance agent unless its charter expressly

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authorized it to engage in that business and unless the compa ny such corporation represented or is to represent certifies in the manner provided for in Section 2 hereof that some officer of said corporation is qualified to act as insurance agent; the name of such officer shall be stated in the license of such corporation and such license shall automaticall y expire as and when such officer so certified ceased to hold active connection with said corporation, but may be revived upon the substitution of some other officer of said corporation, dul y certified to and licensed as provided in Section 2 hereof.
2448 (e). Business. Where to be placed. No agent or non-resident shall solicit or be instrumental in placing insurance upon any risk in this State except in a company or companies admitted to do business in this State; and the violation of this provision shall be sufficient cause for the revocation of such agent's or non-resident's license.
2448 (f) . Investigation of agents. Revocation of license. The insurance commissioner may, upon his own motion, and must upon a written complaint signed by -a citizen of this State and filed with the commissioner, inquire into any alleged illegal or improper conduct of any licensed insurance agent in this State, and any agent's license may be revoked or may be suspended by the insurance commissioner after giving such agent notice and opportunity to be heard, upon satisfactory proof that the agent has been guilty of immoral or illegal conduct or such practices as to render him unfit to carry on the business or to make his continuance therein detrimental to the public interests, or that he is no longer bona fide carrying on the business of an insurance agent, but holds his license chiefly for the purpose ot securing rebates or commissions on insurance written for. himself or his famil y or some partnership or corporation in which he is interested or with which he is connected, or that the license was improperly or improvidently granted. Notice to such agent shall be sufficient if given personally or by registered mail to the ' Jast known address of such agent or if the agent's address be un-

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known, by posting in the public office of the insurance commissioner in the State Capitol for ten days prior to the date of such inquiry. In connection with such inquiry the insurance commissioner shall have the power to summon witnesses against any agent and shall, upon the application of such agent, summons his witnesses for the purpose of testifying at such inquiry.
2448 (g). Inquiry into improper conduct of agents. Revocation of licenses. The insurance commissioner may, upon his own motion, and must upon a written complaint signed by a citizen of this State and filed with the commissioner, inquire into any alleged illegal or improper conduct of any licensed nonresident insurance agent in this State, and any non-resident's license may be -revoked or may be suspended by the insurance commissioner after giving such non-resident notice and opportunity to be heard, upon satisfactory proof that the non-resident has been guilty of immoral or illegal conduct of such practice as to render him unfit to carry on the business or to make his continuance therein detrimental to the public interests, or tha.t the license was improperly or improvidently granted. Notice to such non-resident shall be sufficient if given personally or by registered mail to the last known address of such non-resident or if the non-resident's address be unknown by posting in the public office of the insurance commissioner in the State Capitol for ten days prior to the date of such inquiry. In connection with such inquiry, the insurance commissioner shall have the power to summon witnesses against any agent and shall upon the application of such non-resident, summons his witnesses for the purpose of testifying at such inquiry.
2448 (h). Sections 2445 (a) and (b) superseded to certain extent. This Act shall supersede the provisions of Sections 2445 (a) and 2445 (b) of Park's Annotated Code of Georgia of 1914, so far as rel.ates to the business of fire and casualty insurance, except to the extent that the agent must first be designated by some company authorized to do business in this State as its agent before a license other than a non-resident license shall be issued to him.

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2448 (i). Effective date of law. R evocation of current licenses. Sections 2448 (a to j) shall go into effect August 26, 1925, but shall not revoke any agent's license now in force; which license shall remain in force until the end of the year 1925 unless sooner revoked or suspended, as herein provided for, and until the holder shall have had opportunity to be designated and certified by the company he represents, as herein provided for, and until such designation and certificate are passed upon by the insurance commissioner.

2448 (j). R epeal of conflicting laws. Sections 24I2 (I to I9) saved. Conflicting laws are repealed . "Provided, nevertheless, nothing herein contained shall be construed as repealing or affecting the provisions of Sections 2412 (1 to 19) relating to incorporated mutual co-operative fire insurance companies, providing a penalty for any violation hereof, and repealing all acts or parts of acts in conflict herewith;" nor shall the provisions of Sections 2448 (a to j ) appl y to said companies or to their agents in the transaction of their business; "Provided, also, that mutual insurance companies licensed to do business in this State, which issue policies upon which no compensation is paid to a local agent in this State, shall be entitled to have their agents licensed on the application for the license and the payment of the license fee, and the requirements of Section 2448 (b) of this Act, as to the qualifications for agents to obtain license, shall not apply in such instances."
Acts 1925. D. 215.
f 2443.

SECTION 7
Comity to Foreign Insurance Companies
2449. When charges on companies of this State greater than imposed by this State. Whenever the laws of any other State of the United states shall require of insurance companies chartered by

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this State, and having agencies in such other State, or of the agents thereof, any deposit of securities in such State for the protection of policyholders or otherwise, or any payment of penalties, certificates of authority, license fees, or otherwise, greater than the amounts required for such purposes from similar companies of other States by the then-existing laws of this State, then and in every such case, all companies of such States establishing or having theretofore established an agency or agencies in this State shall be and are hereby required to mjike the same deposit for a like purpose with the insurance commissioner of this State, and to pay to said commissioner, for penalties, certificates of authority, license fees, or otherwise, an amount equal to the amount of such charges imposed by the laws of such State upon companies of this State and the agents thereof.
Acts 1887, I>. 124.
It 2419. 232. 9, 2203. 2209, 2418. 2428. 6457-6460. 2889.

SECTION 8.
Assessment and Other Companies,
Reports, E tG.
2450. Sworn statement to be filed by assessment companies, etc. It shall not be lawful for any corporation or association, organized under the laws of this or any other State of the United States for the purpose of furnishing life indemnity or i~surance upon the assessment plan by its agents, to do any business in this State until such corporation or association shall deposit with the insurance commissioner of this State a certified copy of its charter or articles of incorporation; a copy of its statement of business for the year ending the thirty-first day of the next preceding December, sworn to by the president or secretary, or like officer thereof, setting forth the number and amount of certificates of membership or policies in force and a detailed account of its expenditures,

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income, assets, and liabilities, and also a certificate sworn to by the president and secretary or like officer thereof, setting forth that it has paid, and has the ability to pay, its certificates or policies to the full limit named therein, that its certificates or policies are payable only to the beneficiaries having a legal insurable interest in the life of the member or the insured, that an ordinary assessment upon its members is sufficient to pay its maximum certificate of membership or policy theretofore or thereafter to be issued to the full amount or limit named therein; a certificate from the insurance commissioner, or other like officer, charged with the duty of executing or enforcing the execution of insurance laws of its home State, certifying that it is legally entitled to do business in said home State; a copy of the application for membership or insurance, and of each form thereof if more than one form is used; a copy of the constitution and by-laws, and of each and every addition thereto, which must show that all indemnities to beneficiaries are in the main provided for by assessments upon all surviving members. And whenever said company shall fail to pay a valid claim to the full limit named in any policy issued by them to any resident of this State, the insurance commissioner shall revoke their authority to do business in this State: Provided, that all such corporations or associations, organized under the laws of this or any other State or country, shall deposit with the treasurer of this State stock or bonds approved by that officer in an amount equal to twenty thousand dollars par value, and of not less than twenty thousand dollars market value: Provided, however, that industrial associations or assessment life insurance companies doing business on the industrial or weekly payment plan, and issuing no policies for an amount greater than five hundred dollars, shall be re- quired to deposit a sum equal to one thousand dollars for each one million dollars in force, and thereafter such industrial associations or assessment life insurance companies doing business upon the industrial or weekly payment plan, and issuing a policy for no greater amount than five hundred dollars, shall be required to deposit a sum not less than one thousand dollars in each million dollars of insurance in force on the last day of the

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last calendar year, as shown by its annual statement, until the sum so deposited shall be equal to one hundred thousand dollars. The security so deposited shall be held in trust for the benefit and protection of, and as security for, the policyholders of such corporation or association, their legal representatives, and beneficiaries . A corporation or association organized under the laws of other States or countries shall not be required to make such deposit, provided the corporation or association desiring to do business in this State shall make it appear to the satisfaction of said insurance commissioner that it has on deposit with the proper State official in the State or country of its incorporation a like amount of securities as is required under the terms of this section, and which are held by said authority in trust for the benefit and protection of, and as security for, the policyholders of such corporations or associations, their legal representatives, or beneficiaries . Said securities shall so remain on deposit until it has been made to appear to the satisfaction of said insurance commissioner of this State that all the debts and obligations of said company or association due the citizens of this State have been discharged, or, in case of non-resident companies that, after making deposit, or similar deposit has been made with the proper State officials in the State or country of its corporation, said securities shall be subject to the debts due policyholders and beneficiaries under th e same rules and regulations as govern the deposits required to be made by fire insuran ce comp anies under the laws of this State, in so far as the same may be applicable . Companies or associations now organized under the assessment life insurance laws of this State shall not be requ ired to make such deposits for and during the year 1901; but said companies may make such deposits for and during said year if they so elect.
Acts 1887, D. 124. 1900. DD. 47, 74. 1901. D. 33. 1905. D. 77.
2413, 2514 (b). Amended by 2564 (ddd), 2564 (eee) and 2564 (tft), as inserted following Section 2428.

2451. Life insuran ce on assessment plan . Any corporation chartered to do a life insurance business on the <J.Ssessment plan, . and doing business in this State, may, if it so desire, by a com-

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75

pliance with this and the three succeeding sections, be relicensed and authorized to transact a general life insurance business in this State, upon filing with the insurance department of the State all papers and documents and making the payments required under existing laws, so far as the same are or may be applicable to such life insurance companies, and all business thereafter transacted by such corporations in this State, shall be done in accordance with and governed by the provisions of the laws of this State relating to life insurance companies other than those doing business on the assessment plan except as provided in this and the three succeeding sections.
Acts 1900. I>. 74.

2452. Policies and certificates. Every such corporation, upon complying with the requirements of this and Sections 2451, 2453, and 2454, is authorized to carry out, in good faith, its contracts heretofore made with its members, but all policies or certifi~ates of insurance heretofore issued by such corporations and now remaining in force which contain a provision for a payment other than the premium stipulated therein, and under which the duration of premium payments is coequal with the duration of the contract (endowment policies and endowment certificates excepted), shall be valued and reserve maintained thereon on the basis of renewable term insurance as fixed by age in accordance with the provisions of Section 2438. To the reserve liability determined as above, the insurance commissioner shall aqd the determinate contracts reserve under any other policies or certificates heretofore issued and remaining in force, and in the absence of such contract reserve shall value them as contracts providing similar benefits are to be valued under the provisions of Section 2438: Provided, that under no policy or certificate shall a greater aggregate reserve liability be charged than is required by said section.
i 2438.

2453. Reserve. No policy or certificate of life insurance shall be issued by a company licensed under Section 2451, in this

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State, unless in compliance with the provisions thereof. All policies of life insurance issued by such corporation, under this Article, whether or not they contain a provision for a payment other than the premium specified therein, shall be valued and the reserve maintained thereon according to the provisions of Section 2438, and the nature of the insurance as defined in each policy.
2454. Societies to which this applies. No law which relates to the formation of corporations to transact the business of life insurance upon the assessment plan, or which provides for the regulation of the business of life insurance by such corporations, shall be applicable to companies doing business under this and the three preceding sections, except to the extent of permitting the carrying out of contracts heretofore made with members: Provided, nothing in this and said preceding sections shall be construed to apply to any fraternal beneficiary order or society operating on the system of lodges, councils, or chapters, as defined by the laws of this State regulating such orders or societies.
2455. On assessment plan; policies, how written. Every policy or certificate issued to a resident of the State of Georgia by any corporation transacting therein the business of life insurance upon the assessment plan, or admitted into this State under the assessment laws of Georgia, shall print in bold type (in red ink), in every policy, or certificate issued upon the life or lives of the citizens of Georgia, making one of the principal lines near the top thereof, the words "issued upon the assessment plan," and the words "assessment plan" shall be printed conspicuously (in red ink) in or upon every application, circular, card, advertisement, and other printed documents issued, circulated, or caused to be circulated by such corporation within the State: Provided, that this section shall apply only to such corporations or associations as shall write or issue policies or certificates on the postmortem assessment plan, and shall not apply to such corporations or associations as shall only issue policies under which the premiums are stipulated, and made payable at fixed periods in advance. If any such corporation or association shall at any

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time fail or refuse to comply with this section~ the insurance com-: missioner shall forthwith suspend or revoke all authority to such corporation or association and all its agents to do business in this State, and shall publish such revocation tn some newspaper published in this State.
Acts 1897. D. 67. 1898, D. 97. 11101. D. 77. 15.
2455 (a). Life insurance on mutual plan, regulations and requirements. [Life insurance companies chartered by the laws of this State to operate on the mutual co-operative or assessment plan without limitation as to the amount for which policies of said company are to be issued, shall stipulate definitely in the face of the policies the amount to be paid to the beneficiaries on the said policies in the event of the death of the assured. In no event, shall payments to beneficiaries by such companies be contingent upon the number of policyholders in the company or on the number in any division or branch of such company. The intention of this law being to require the payment of the full face of the policy as stipulated therein without regard to subdivisions of the membership of such insurance companies in the management of their affairs. No policy shall be issued by such companies without subjecting applicants for such insurance to medical examination. It shall be the duty of the insurance commissioner to investigate the rates of premiums which are to be charged by all such companies, and he is hereby authorized to require said companies to charge such rates as are deemed by him adequate to pay their policies at maturity.]
Acts 1912. DD. 119, 141.
n 2514 (e). 2499 (a).
AMENDMENT AS TO LIFE INSURANCE EXAMINATIONS
Be it further enacted, that all persons applying for life insurance in a life insurance company writing life insurance in this State shall .submit to S'\lch reasonable rules and regulations as may be prescribed by such insurance companies; and after a

policy is issued on the life of such pers~n, the beneficiary of such policy shall be entitled to collect the amount of such policy under the terms of the contract when it matures, unless the applicant or beneficiary has been guilty of actual fraud or has made material misrepresentations in procuring such policy, which r~presenta tions change the character and nature of the risk as contemplated in the policy so issued by the company. All statements, covenants, and representations contained in applications for insurance shall never be held or construed to be warranties, but shall be held to be representations only.
Acts of 1927. I>. 223.
2456. Licenses to agents of assessmrmt companies. After authorizing such corporation or association to do business in this State, as provided in this Article, the insurance commissioner shall issue license to agents thereof, to be designated by the corporation or association, or a general agent thereof, authorizing them to act as such agents during the year for which said company is licensed; but such licenses must be renewed annually.
Acts 1887. I>. 125. 2491, 2445 (a).
2457. Penalty for fraudulently procuring insurance. Any agent, physician, or other person who shall knowingly secure, or cause to be secured, a certificate of membership on any person without his knowledge or consent, or by means of misrepresentations, false, fraudulent, or untrue statements, be instrumental in securing a certificate of membership on any aged or infirm person or in restoring to membership any person not in an insurable condition, shall be deemed guilty of a misdemeanor, and -said certificate or renewal so secured shall be absolutely void.
Acts 1887. I>. 125. i 2444. i 627. P. C. 2514 (h) (1), 741 (d) (e) following 2514 (1).
2458. Annual report of business. Every corporation or .association, which may be doing business in this State under the

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provisions of this Article, shall, on or before the first day of March in each year after it commences to do business in this State make and file with the insurance commissioner a report of its affairs and operations during the year ending the thirty-first day of December next preceding. Such annual reports shall be made upon blank forms to be provided and furnished by the insurance commissioner, and shall be verified under the oath of the president or secretary, or other like officers, and shall be published, or the substance thereof, in the annual report of said insurance commiSSIOner.
Acts 188'7, I>. 126.
H 986, 2209, 2564 (gJ.

2459. Fees to be paid. There shall be paid to the insurance commissioner, by each corporation or association authorized to do business in this State, the same fees as required by Section 2448, together with all such subsequent fees as are prescribed under said section. In addition to the foregoing fees, every such corporation or association shall, on or before the first day of July of each year, report under oath of its president and secretary, or other like officers, to the insurance commissioner the gross amount received on business done in this State during the year ending the thirtieth of April next preceding, and shall at the same time pay into the treasury of this State a tax as provided for under the General Tax Act for said year. Provided, however, that if such corporation or association should at any time be the owner of any real or personal property situated in this State, such property shall not at the same time pay into the treasury of this State a tax as provided for under the General Tax Act for said year.* (See following this section): Provided, however, that if such corporation or association should at any time be the owner of any real or personal property situated in. this State, such property shall not be exempt from taxation by reason of the provisions of this section.
Acts 188'7, I>. 126. I 2448. *This Provision has been declared to be Invalid In that no comi>an:v or individual can be declared exempt from payment ot ad valorem tu:.

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. EXTRACT FROM GENERAL TAX ACT OF 1929

Sec. 7 Insurance companies.
(1) Be it further enacted by the authority aforesaid, that . all foreign and domestic insurance companies doing business in this State shall pay one and one-half (r%%) per cent. upon gross premiums received by them in this State for the year with no deductions for dividends, whether returned in cash or allowed in payment or reduction of premiums, or for additional insurance; nor shall any deduction be allowed for premium abatement of any kind or character, or for reinsurance, except companies doing business in Georgia, or for cash surrender values paid, or for losses or expenses of any kind, said tax being imposed upon gross premiums without any deductions whatever except for premiums returned on change of rate and cancelled policies and on reinsurance as above provided. Provided, that local organizations known as Farmers' Mutual Insurance Companies, operating in not more than four counties, shall not be subject to this tax. Provided, further, that mutual fire insuran :::e companies chartered by this State, which require their members to make premium deposits to provide for losses and expenses, and which premium deposits are used wholl y for the payment of losses and expenses and returned to the policyholders or held to pay losses and expenses and as reinsurance reserves, shall not be subject to this tax.
(2) 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 Treasurer, and the amount of the reserve or net value of the policies required by law to be held by the company for its policyholders; and which belong to such

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81

policyholders; the remainder shall be the value of the personal property owned by and taxable against such companies.

(3) 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 property, to-wit: Bonds of this State or of any county or municipality of this State, property situated in this State and taxable therein, loans secured by liens on real estate situated in this State, or policy loans 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 such company; and if the amounts so invested by any such company shall be as much as three-fourths of the total assets of such company, then said premium tax shall be abated or reduced to three-fourths of one per centum upon such gross receipts of such company.

2460. Failure to make such teport or pay tax. If such corporation or association shall at any time fail or refuse to make the annual report, or to pay the tax on the gross amount received, as hereinbefore provided, the insurance commissioner shall forthwith suspend or revoke all authority to such corporation or association and all its agents, to do business in this State, and shall publish such revocation in some newspaper published in this State, and may proceed to collect whatever sum of money may be due or owing on account of such tax by suit or action, in the name of the State of Georgia, against such corporation or association.
Acts 1887. v. 126.
2461. Exemption of fraternal, secret, and industrial societies, etc. Nothing in this Article contained shall appl y to or be construed to require any fraternal, or secret, or industrial societies, or other associations exempt by law, now organized or to be organized in this State, to pay any license fee or tax, or to make or file reports with the insurance commissioner, or to prevent the

82

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same from doing business in this State, when the money, benefit, charity, or relief is payable by the grand supreme body of the same, and is derived from assessments on subordinate lodges, councils, or other bodies or their members.
Acts 1887. v. 126.
2564 (d). 2564 (g). 2564 (k) (1).

2462. License of fidelity companies. Any corporation now or hereafter organized under the laws of this State for the purpose of transacting the business of fidelity insurance shall be licensed to transact business upon compliance with all the requirements in this Article prescribed with reference to life insurance companies organized under the laws of this State so far as the same may be applicable to such fidelity insurance company; any fidelity insurance company incorporated and organized under the laws of any other State of the United states, or foreign governments, and which has a paid-up capital of not less than two hundred and fifty thousand dollars, may be licensed to transact business in this State upon compliance with all the requirements prescribed by this Article, so far as the same may be applicable, for license to foreign life insurance companies to transact business in this State.
Acts 1887. v. 127. 2426.
2463. Live stock and steam boiler insurance companies subject. All live stock and steam boiler insurance companies chartered by this State or other States of the United States, or foreign governments, and doing business in this State, shall be subject to all the requirements of this Article in relation to life insurance companies, except the requirements in relation to valuation of policies.
Acts 1887. v. 127. 2426.
2464. Commissioner and inspectors may administer oaths. The insurance commissioner and such person or persons as rnay be appointed by him to make inspections are hereby authorized to administer any and all oaths to parties and witnesses, as required under the provisions of this Article.

INSURA!{CE LAWS
2465. Law applicable to indiuiduals. All laws regulating the business of insurance in this State by companies are applicable to individuals, associations, and corporations in like business.
Acts 1893, 1>. 81.
SECTION 9
Pooling
2466 . Unlawful for companies to make contracts affecting competttzon. It shall be unlawful for any insurance company, or companies, authorized to do business in this State, or the agent or agents thereof, to make, maintain, or enter into any contract, agreement, pool or other arrangement with any other insurance company, or companies, licensed to do business in this State, or the agent or agents thereof, for the purpose of, or that may have the tendency or effect of, preventing or lessening competition in the business of insurance transacted in this State. And when it shall be made to appear to the commissioner of insurance that any company, or companies, agent, or agents have entered into any such contract, agreement, pool, or other arrangement said commissioner shall revoke the license issued to such company or companies, and the same shall not be"reissued until the president or chief officer of such company or companies shall file an affidavit with said commissioner, stating that such contracts, agreements, pools, or other arrangements have been annulled and made void: Provided, that .nothing in this Article shall be so construed as to prevent any insurance company, legally authorized to transact business in this State, from separately surveying, inspecting, or examining the premises to be insured, by and with the consent of the owner, for the purpose of bringing about improvements in fire protection, so as to lessen the cost of insurance by reducing rates.
Acts 1890-1891, I>. 206.
n 6466. 2443.

INsuRANCE LAws
:2.467. Complaints by citizens and citation. Any citizen of this State (whose rates of inS\lrance have been increased, or who has been refused insurance at reasonable rates) shall have the right to file a written complaint under oath, to the best of his knowledge and belief, with the insurance commissioner, charging any company or companies authorized to do business in this State with a violation of the preceding section, and thereupon it shall be the duty of said insurance commissioner to issue a citation, addressed to the company or companies against whom said complaint is made, requiring it, or them to be and appear before said insurance commissioner at a time and place to be fixed by said insurance commissioner, not less than twenty nor more than forty days from the date of the filing of such complaint, and show cause why their license should not be revoked as provided by the preceding section. Said citation shall be served, not less than ten qays from the date of filing said complaint, by the sheriffs or constables of said State in the same manner as provided b y law for the service of process upon insurance companies.
u 2493. 2446. 2563, 2564. Acts lBSI0-1891, v. 206.
2468. Practice as to testimony, etc. For the purposes of the provisions of this Article, the insurance commissioner shall have power to administer oaths, issue subpoenas for witnesses, hear testimony, issue commissions for taking testimony by interrogatories; and the party or parties complaining, and the company or companies defending, shall have the right to serve notice for the production of books and papers, under the same rules as now provided by law for civil actions in the superior courts.
2469. Forum. The county in which the insurance commissioner shall fix the hearing shall be the loci forum of said hearing or trial. The costs and fees for the sheriff or constable, witnesses, and the commissioners taking interrogatories shall be the same as now provided by law for similar service in the superior courts of this State, the same to be taxed against and paid by the party or parties cast in said suit, and against whom said insur-

INSURANCE LAWS
ance commissioner shall find; for which costs said insurance commissioner is hereby authorized to issue execution to be levied and collected as executions from the courts of this State.
SECTION ro.
Fire Insurance Contracts
2470. Contract of fire insurance. The contract of fire insurance is one whereby an individual, or company, in consideration of a premium paid, agrees to indemnify the assured against loss by fire to the property described in the policy, according to the terms and stipulations thereof. Such contracts, to be binding, must be in writing; but delivery is not necessary if, in other respects, the contract is consummated.
3222. 2404, 2496.
2470 (a). Standard form of policy for fire insurance. Policies requiring certificates null and void. [Each and every fire insurance company doing business in this State shall adopt and write a standard or uniform policy such as may be prescribed by the commissioner; (a) "Provided that any policy condition requiring the insured to procure the certificate of the nearest magistrate, or notary public (not interested in the claim as a creditor or otherwise, nor related to the insured) living nearest the place of fire, stating that he has examined the circumstances and believes the insured has honestly sustained loss to the amount that such magistrate or notary public shall certify, shall be null and void; and it shall be unlawful to issue any other class of policy in this State: Provided, however, that local assessment fire insurance companies doing business in not more than four counties in a division in the State of Georgia, may issue and write such form of policy as may be prescribed by the commissioner.}
Acts 1V12, 1>1>. 119, 131 (a), 1V21, p. 20S;

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247 I. Policies must contain the entire contract. All life ahd fire insurance policies issued upon the life or property of persons within this State, whether issued by companies organized under the laws of this State or by foreign companies doing business in this State, which contain any reference to the application for insurance, or the constitution, by-laws, or other rules of the company, either as forming part of the policy or contract between the parties thereto or having any bearing on said contract, shall contain, or have attached to said policy, a correct copy of said applicati~n signed by the applicant, and of the by-laws referred to; and unless so attached and accompanying the policy, no such constitution or by-laws shall be received in evidence either as part of th"e policy or as an independen"t contract in any controversy between the parties to or interested in the said J)olicy, nor shall such application or by-laws be considered a part of the policy or contract between .such parties.

Acts 1906, I>. 107. i 2479, 2530, 2564 (I).

2472. Interest of assured. To sustain any contract of insurance, it must appear that "the assured has some interest in the" property or event insured, and such as he represented himself to have. A slight or contingent interest is sufficient; whether legal or equitable, and several having different interests may unite in procuring one policy; so a husband or parent may insure the separate prop.erty of his wife or child, the recovery being held by him in trus"t for them; but a mere expectation of an interest is not insurable. .
. . 2483. 2484,

2473 . Insuring interest of another. If one undertakes to

insure the interest of another, it must be done by his consent, or be

subsequently ratified by him; but an insur"er may reinsure to pro-

tect himself against foss on his contract.



INSURANCE L 'AWS
2474. Insurance on changing property . A policy of insurance may be made to cover property changing daily in its specific articles, as a stock of goods.
2545.
2475. Construction. The contract of insurance should be construed so as to carry out the true intention of the parties.
4266.
2476. Loss, what is. A lo.ss or injury may occur from fire without the actual burning of the articles or property; as, a house blown up to stop a conflagration, or goods removed in imminent danger, or damage by water used to extinguish the flames.
2545.
2476 (a) . Umpire to appraise loss. Appointment. Notice and service. [When in the event of loss or damage to property in this State, described in any policy of fire insurance and covered thereby, the ascertainment of any such loss or damage is, as provided in the policy, to be determined by appraisers, one selected by the company, the other by the insured, and the two so chosen shall have failed or neglected, for a space of ten days after both have been chosen, to agree upon and select an umpire, it shall be lawful for either the assured or the company to apply to any court of record in the courity in which the property is or was located, on five days' notice in writing to the other party of his or its determination so to do, to appoint a competent and disinterested umpire. Any such notice in writing, when served by the insured, may be served upon any local agent of the company ; and the said court shall, on proof by affidavit of the failure or neglect of the said appraisers to agree upon and select an umpire within the time aforesaid, and of the service of notice aforesaid, forthwith appoint a competent and disinterested person to act as umpire in the ascertainment of the amount of said loss or damage; and the acts of the umpire so appointed shall be binding upon the insured and the company to the same extent as if such urn-

88

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pire had been selected in the manner provided for in said policy of insurance.]
Acts 1916. II. 128.

2476 (b). Contrary stipulation void. [Any stipulation in any policy of fire insurance contrary to the terms of Section 2476 (a) shall be void.]
Acts 1916. II. 128.

2477. Loss unknown to the parties. If the loss has already occurred, and both parties are igporant of it, the contract is valid; but the slightest grounds of suspicion known to the insured will vitiate the contract unless made known to the insurer.

2478. Diligence by assured. The assured is bound to ordinary diligence in protecting the property from fire, and gross negligence on his part will relieve the insurer. Simple negligence by a servant, or the assured, unaffected by fraud or design in the latter, will not relieve the insurer.
2521.
2479. Application, good faith. Every application for insurance must be made in the utmost good faith, and the representations contained in such application are considered as covenanted to be true by the applicant. Any variation by which the nature, or extent, or character of the risk is changed will void the policy.
4113. 2471. 2482. 2533. 2499 (al. 2514 (b).
2480. Effect of misrepresentation. Any verbal or written representations of facts by the assured to induce the acceptance of the risk, if material, must be true, or the policy is void. If, however, the party has no knowledge, but st~tes on the representation of oth,ers, bona fide, and so informs the insurer, the falsity of the information does not void the policy.
u 4113.2483.

INSURANCE LAWS
2481. Concealment. A failure to state a material fact, if not done fraudulently, does not void; but the wilful concealment of such a fact, which would enhance the risk, will void the policy.
t 4114.
2482. Increasing risk. Any change in the property, or the use to which it is applied, without the consent of the insurer, whereby the risk is increased, voids the policy.
u 2523. 2479.
2483. Wilful misrepresentation voids policy. Wilful misrepresentation by the assured, or his agent, as to the interest of the assured, or as to other insurance, or as to any other material inquiry made, will void the policy.
2480, 2489.
2484. Effect of alienation. An alienation of the property insured, and a transfer of the policy, without the consent of the insurer, voids it; but the mere hypothecation of the policy, or creating a lien on the property, does not void.
n 4188. 3256, 2472.
248 5. Transfer to one of several. A policy issuing to sev eral may be transferred to one of the assured without the consent of the insurer.
2486. Partial sale. A partial sale of property insured voids the policy only pro tanto. A sale not fully executed, and possession remaining with the assured, does not void.
2487. Transfer after loss. After the loss occurs, a sale of the property and transfer of the policy does not affect the liability of the insurer, but the assignee may recover.
2488. Or by operation of law. A transfer of the property or policy by operation of law, or under the order of the court will confer on the assignee all the rights of the assured.

I
INSURANCE LAWS
2489. Second insurance. A second insurance on the same property, unless by consent of the insurer, voids his policy.
H 2544, 2483.
2490. Prescribing regulations. Every insurer has a right to prescribe regulations as to notice and preliminary proof of loss, which must be substantially complied with by the assured: Provided, the same are made known at the time of the insurance, and are not materially changed during the existence of the contract. An absolute refusal to pay waives a compliance with these preliminaries.
SECTION II.
Fire and Casualty Insurance Companies
2491. Regulating business of fire and casualty insurance companies. Fire insurance companies not incorporated by the laws of the State of Georgia, but legally authorized to do business in this State through regularly commissioned and licensed agents located in this State, shall not make contracts of fire insurance on property herein, save through agents of such companies regularly commissioned and licensed to write policies of insurance in Georgia: Provided, however, that this section shall not apply to property of railroad corn'panies and other common carriers. Accident-liability or casualty insurance companies not incorporated by the laws of the State of Georgia, but legally authorized to do business in this State through regularly commissioned and licensed agents located in this State, shall not issue a policy of accident-liability or casualty in~urance to any person, or corporation, resident in said St.ate, save through agents of such companies regularly commissioned and licensed to write policies of accident-liability or casualty. insurance in Georgia.
Acts 1896, D. 61. 1901, D. 74. 2443, 2445, 2456. 935, 936, 937.

INSURANCE LAWS
2492. Affidavit of president or chief officer. Before issuing certificate of license to any fire, accident-liability, or casualty insurance company to transact the business of fire, accident-liability, or casualty insurance in this State, the insurance commissioner shall require,. in addition to requirements already provided for by law, that such fire, accident-liability, or casualty insurance company shall file with him the affidavit of its president, or other chief officer, that it has not violated any of the provisions of this section for the space of twelve months last past, and that they accept the terms and obligations of this section as a part of the consideration of their license.
2493. Investigation of complaint of violations of law. Complaint .being filed by any citizen of this State that a company authorized .to do business in this State has violated any of the provisions of this section, the comptroller-general shall diligently investigate the matter, and if necessary examine, by himself or his accredited representative at the head offices located in the United States of America, and also such other offices or agents of such companies as may be deemed proper, all books, records, and papers of the same, and also the officers thereof under oath as to such alleged violation or vi.olations: Provided, that before making such examinations the comptroller-general . shall require the party making complaint to file with him a good and sufficient bond to cover any expense or cost that may be necessary in making such examination; and in the event that the insurance company is found not guilty of a violation of this section, then said bond shall be responsible for all expense incurred by reason. of. said investigation. But should the company be found guilty of a violation of this law, then said company shall be responsible for the expense thereof.
2494 Forfeiture of right to do busirress. Any fire, accident-liability, or casualty insurance company violating any pro-
in vision of this section," or refusing to submit to the aforesaid ex-
amination wh~n required, shall for"feit the right to do business this State for the next twelve months thereafter, and the. insur-

INSURANCE LAWS
ance comm1ss1oner shall immediately revoke the license already issued to said company to do business in this State.
115.
2495. Failure to pay expenses of examination. If any such company shall fail or refuse to pay such expense of examination upon the presentation of a bill therefor by the comptrollergeneral, the comptroller-general may issue his fi. fa. against such company therefor, to be collected out of the property of the company or its deposit with the State Treasurer, in the same manner as judgments against insurance companies not chartered by this State, but doing business herein, are collected. If any company disputes the amount of such bill and fi. fa., it may contest such amount and its liability therefor by affidavit of illegality returnable to the superior court of Fulton County, in the same manner as comptroller-general's executions for railroad county taxes can be contested.
I 1041.
2495 (b). Reserve for outstanding losses; computation; lia-
bility policies; compensation claims . The reserve for outstanding losses under insurance against loss or damage from accident to or injuries suffered by jln employee or other person and for which the insured is liable shall be computed as follows:
(1) For all liability suits being defended under policies written more than
(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 each suit.

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93

(2) For all liability policies written during the three years immediately preceding the date as of which the statement is m~de, such reserve shall be sixty per centum 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 corresponding years; but in any event, such reserve shall for the first of such three years, be not less than seven hundred and fifty dollars, for each outstanding liability suit on said year's policies.
(J) For all compensation claims under policies written 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 futur~ 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 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 poli~ies written during such year; provided, however, that in computing the reserve for the statement for December Jist, 1919, and December JISt, 1920, the ratios sixty per centum and sixty-two and one-half per centum respectively shall be used instead of sixty-five per centum as hereinbefore provided.
Acts 1920. I>I>. 111. 112.

2495 (c). Definitions; "earned premiums"; "compensation"; "liability"; "loss expense payments." The term "earned premiums," as used herein shall include gross premiums charged on all policies written, including all determined excess and additional premiums, less return premiums, other than premiums returned to policyholders as dividends, and less reinsurance premiums and premiums on policies cancelled, and less unearned premiums

94

INSURANCE LAWS

on policies in force. But any partiGipating company which has charged in its premiums a loadi'ng 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 providing compensation to employees for personal injuries irrespective of fault of the employer. The term "liability" shall relate to all insurance except compensation insurance against loss, or damage from accident to or injuries suffered by an employee or other person and for which the insured is liable.
The terms "loss payments" and "loss expense payments" as herein used shall include all payments to claimants, including payments for medical and surgical attendance, legal expense, salaries and expenses of investigators, adjustors and field men, rents, stationery, telegraph and telephone charges, postage, salaries, and expenses of office employees, home office expenses and all other payments made on account of claims, whether such payments shall be allocated to specific claims or unallocated.
Acts 1920. D. 113.

2495 (d). Distribution of unallocated liability foss expense pay ments; unallocated compensation foss pay ments; additional reserves. All unallocated liability 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, fort y per centum to the policies written in the preceding year, ten per centum to the policies written in the second preceding year, ten per centum 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 issued liability policies shall be distributed as follows: In the first calendar year one hundred per centum shall be charged to the policies

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95

"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 centum to the policies written in the preceding year, i~ 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 written in the second year preceding and in the fourth calendar year thirtyfive per centum shall be charged to the policies written in that year, forty per centum to the policies written in the second year preceding, and ten per centum to the policies written in the ~hird year preceding and a schedule showing such distribution shall be included in the annual statement.

All unallocated compensation loss payments made in a given calendar year subsequent to the first three years in which an insurer has been issuing compensation 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 written in the preceding year, ten per centum to the policies written in the second year preceding, and five per centum to the policies written in the third year preceding, and such payments made in each of the first three calendar years in which an insurer issues compensation policies shall be distributed as follows: In the first calendar year one hundred per centum shall 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 preceding 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 written 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 insurance commtsstoner, the liability or compensation loss reserves of any insured under his sup~rvision, calculated in accordance with the foregoing provisions, are inadequate, he may, in his discretion, require such

INSURANCE LAWS
insurer to maintain additional reserves based upon estimated individual claims or otherwise.
Acts 1920, v. 114.
2495 (e). Schedule of experience. 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.
Acts 1920, P . 115.
2495 (f). Unearned premium reserve. On all policies of casualty insurance in force and written for one year or less, there shall be maintained the unearned premium reserve of fift y per centum 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 fift y per centum of the current year's premiums, plus the entire premium for subsequent years, provided, such unearned premium reserve may be reduced by the amount of unearned commissions on premiums not more than ninety days past due, whi ch premiums are due from agent, or agencies whose accounts with the insurance commissioner are secured by bonds executed by companies licensed to do business in this State.
Acts 1920, v. 120.
SECTION 12.
Life Insurance
2496. Contract of life insurance . An insuran ce upon life is a contract by whi ch the insurer, for a stipul ated sum, engages to pay a certain amount of money if an other dies within the time limited by the poli cy. The life may be th at of the assured, or of another in whose continuance the assured has an interest.
2471, 2564 . (c). 2470.

INsURANCE LAws

97

2497. By whom taken. Contracts of life insurance can be
taken only by persons or corporations specially authorized so to do by law.

2498. To whom to be paid. The assured may direct the money to be paid to his personal representative, or to his widow, or to his children, or to his assignee; and upon such direction given, and assented to by the insurer, no other person can defeat the same. But the assignment is go.od without such assent.

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

2499 (a). Medical examinations. All persons applying for life insurance in a life insurance company writing life insurance in this State shall submit to such reasonable rules and regulations as may be prescribed by such insurance companies and after a policy is issued on the life of such person, the beneficiary of such policy shall be entitled to collect the amount of such policy under th~ terms of the contract when it matures unless the applicant or beneficiary has been guilty of actual fraud or has made material misrepresentations in procuring such policy, which representations change the character and nature of the risk as contemplated in the policy so issued by the company. All statements, covenants and representations contained in applications for insurance shall never be held or construed to be warranties, but shall be held to be representations only.
Acts 1912. llll. 119. 130, reQuiring "strict medical examination. " amended by Act 1927, 1>. 223 as now printed,
~ 2564 (1), 2564 (o), 2514 (e), 2455 (a), 2564 (w), 2479, 2480, 2481, 2483.

INSURANCE LAWS
2500. Self-caused death releases insurer. Death by suicide, or by the hands of justice, either punitive or preventive, releases the insurer from the obligation of his contract.
2501. Time, how counted. A policy of life insurance runs from midday of the date of the policy, and the time must be estimated accordingly, if the policy is limited to a specified number of years.
SECTION IJ.
Industrial Life Insurance
2 502. Industrial life insurance defined. Industrial life insurance is that insurance for which the stipulated premiums, advance assessments, or dues, are regularly payable and collectible weekly, bi-weekly, monthly, quarterly, semi-annually or annually, and the policies or benefit certificates for which are for sums of not more than five hundred dollars on a single life, and which policies or benefit certificates may provide a weekly benefit for disability, caused by sickness or accident, not greater than twenty dollars per week .
Acts 1905, p , g&-25()6, Acts 1924, pp. 51-52.
2503. Companies of that character. All corporations, associations, relief organizations, societies, or fraternal orders, with or without capital stock and having or not having a ritualistic form of government, whether operating under the present insurance laws as insurance companies, or operating under the laws governing fraternal beneficiary orders, and issuing policies or benefit certificates, and conducting their business in the manner and within the meaning and definition set forth in the preceding paragraph, shall be held and deemed to be doing an industrial

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99

life insurance business, and shall be subject to this section and all the other laws of this State not repugnant to this section, regulating the business of life, health and accident insurance in this State.

2504. Requirements. Any corporation, association, society, or fraternal order organized under th~ laws of this State, whether organized upon the mutual assessment plan or as a stock company, for the purpose of doing the business of industrial life insurance as in this section defined, shall, before commencing to do business in . this State, comply with the laws of this State, regulating the man. ner in which other insurance companies shall be authorized to do business in this State, except that the deposit, required of companies operating upon the plan and according to the manner specified in the two preceding paragraphs of this section, shall be five thousand dollars, to be made in such securities as are required of such other insurance companies as are now required to make a deposit in this State; and such deposit shall be made prior to or on the first day of January, 1906.
i 2502, Amended by Code Sections 2564 (dddl. et seQ... inserted following Sec. 2427.

2505. Deposits by. Any corporation, association, society, or fraternal order, organized under the laws of any other State upon the mutual assessment plan, or as a stock company, for the purpose of doing the business of industrial life insurance as in this section defined, shall be authorized to do business in this State upon complying with the other laws of this State regulating the manner in which foreign insurance companies shall be authorized to do business in this State, and filing with the insurance commissioner of this State a certificate from the officer having supervision of the insurance department of the State under the laws of which such corporation, association, society, or fraternal order was chartered, or elects to make its deposit, that such corporation, association, society, or fraternal order has deposited with

ibo

IN-suRANCE LAws

said State a sum of not less than five thousand dollars irt such 'securities as are required to be deposited by insurance companies.
Amended b:v Sec. 2564 (ddd), et seQ.. followinc 2-2'7.
2506. Companies subject to this law. The provisions of this section shall in no way apply to any company, association, organization, or sodety which does not collect its premiums, or dues, weekly, bi-weekly, monthly, quarterly, semi-annua1ly, or annually; but any company, association, organization, society or fraternal beneficiary order, with or without a ritualistic form of governfl?.ent, which collects its dues or premiums weekly, biweekly, monthly, quarterly, semi-annually or annually and which for the purpose of securing business or members, and for the collection of premiums, dues or assessments employs paid agents, collectors, or solici:tors, shall come under the provisions of this section.
Acts 1924, DD. 51-2. 2502.
2507. When laws apply. No law hereafter passed shall be held or deemed, to refer to the business of industrial life insurance, unless the same is expressly referred to in said law.
2564 <ff!l following 242'7.
2508 . Solvent assets, amount of. From and after the first day of January, r9ro, every mutual aid, benefit, or industrial life insurance company or association doing the business of industrial life insurance in this S'tate, as defined by the laws of this State, whether on the stock or on the co-operative, or mutual assessment plan, shall at all times own and possess solvent assets to the amount of one dollar and fift y cents for each hundred dollars of insurance at risk by such corporation. In estimating and determining such amount there must be deducted therefrom any liabilities of such corporation for any sums or amounts due or owing for

INsVRANCE LAws

10{

any purposes on claims other than liabilities upon its policies,

contracts of insurance, or certificates of membership; [

)

(a) and any such corporation with a capital stock may estimate

and use the property or tunds in which its capital stock has been

invested in accordance with this section, in determining the amount

of its said solvent assets.

Acts 1909. I>. 169. (a) Acts 1912, I>I>. 119, 142. Sec. 2514 (a). ( 2509-2513 repealed by 2514 (a).

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

' 25I4 (a). Income or guaranty certificates. [No income
or guarantee fund certificates, as provided for in the Act approved August I 6, I 909, (Sections 2508 to 25I4) shall be issued in this State: Provided, that the provisions of this section shall not apply to insurance companies now chartered and organized in this State and issuing and selling such certificates until the first day of January, I9IJ, and said Act being entitled "An Act to fix the amoun.t of solvent assets, which mutual aid, benefit and industrial life insurance companies shall have and maintain; to provide a method by which said companies, organized under the co-operative or mutual assessment plan, may procure such assets; and to provide for the manner of investing the assets of such companies; to provide for an examination of such companies by the insurance commissioner, and for other purposes," which Act provides for the 'issuing of such certificates, be and the same is hereby repealed.]
Acts 1912. I>I>. 119. 142.

102

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The Act of 1909 referred to In this Section was codified In the Code of 1910 as sections 2508-2514lnclus1ve. It 1s doubtful whether this section reDeals all of the Act of 1909 or only the I>art relating to guaranty-fund certificates.

Accordingly, only that I>art of the Act referring to such certificates has been stricken from this Code. This section has been checked with the enrolled Act and ai>Dears here in the language of that Act.

2514 (b). Incorporation of industrial companies. Rights and Powers. Deposits . [Stock companies or corporations* for the purpose of doing an industrial, life, health or accident insurance business or for the purpose of doing either of said businesses, may be created under the laws of this State, with a minimum capital stock of f,25,ooo.oo, provided, that the petitioners for such charter shall comply with the laws of this State applicable to the incorporation of insurance companies as set out in Section 2394 et seq., except that the minimum capital stock may be $25,000.00 and that said company so organized may do any or all branches of said business without increasing its capital stock though it shall have all the power, rights and privileges conferred upon life insurance companies under the aforementioned sections of the Code, except that it shall not be authorized to write ordinary life insurance, nor shall it be permitted to write any policy whatever exceeding the amount of $5oo.oo . Before being authorized to do business, the said company shall deposit with the treasurer of the State of Georgia an amount equal to 6o per cent. of its capital stock, consisting of United States bonds, State, county or municipal bonds.]
Acts 1912, I>I>. 119, 126.
2450.

2514 (c). When authorized to do ordinary life insurance business. [Any corporation organized in pursuance of the preceding section may be authorized to do an ordinary life insurance business by complying with the requirements of the laws applicable to life insurance companies and by filing its certificate with the Secretary of the State showing that it has made the deposit required for life insurance companies, has procured a license from
*This word ai>Dears in enrolled Act, Instead of " cort>oration." which ai>I>ears In I>Ublished COI>Y.

INsURANCE LAws

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the insurance commissioner, and has .complied with the other requirements oflife insurance companies.]
Acts 1912. ])]). 119. 127.
2514 (d). Mutual companies may become stock companies. [Any mutual, industrial, life, health or accident insurance company now existing under the laws of Georgia, or which may hereafter be organized under the laws of this State, may become a stock company by filing a certificate with the Secretary of State, showing that three-fourths of its outstanding policyholders have voted in lawful meeting assembled to become a stock company, and that the capital of said company is fixed at not less than 1>25,000, and that the other requirements of the laws of this State in this behalf have been complied with: Provided, however, that no publication or petition for charter shall be required in such instances, except as is hereinafter provided. Policyholders in mutual companies may vote by proxy at meetings held for the aforementioned purpose. Said stock company when organized as aforesaid shall have all the power and authority as though it had been originally organized as a stock corporation.]
Acts 1912. pp. 119, 128.
2514 (e). Regulation of mutual or assessment companies. [All industrial life insurance companies. chartered under the laws of this State to do business on the mutual co-operative or assessment plan, and limiting their policies to the sum not exceeding 1>5oo.oo, shall stipulate definitely in the face of the policies the amount to be paid to the beneficiaries under said policies in the event of the death of the assured. In no event shall payments to beneficiaries by such companies be contingent upon the number of policyholders in the company nor on the number in any division or branch of such company. The intention of this law being to require the payment of the full face of the policy as stipulated therein without. regard to the subdivisions of the membership by such insurance companies in the management of their affairs. No policies shall be issued by such companies without subjecting applicants for such insurance to medical

104

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examination . It shall be the duty of the insurance commissioner to investigate the rates of premiums which are to be charged by all such companies and he is hereby authorized to require said companies to charge such rates as are adequate to pay their policies at maturity. Provided, that companies doing business on the industrial plan shall not be required to have medical examiners.]
Acts 1912. :o:o. 119. 140.
24911 (a). 2455 ( a).
ProVision as to examinations amended. See 2455 (a) and 2499 (a).

2514 (f). False representations in regard to policies prohibited. [No insurance company or association doing business in this State, and no officer, director or agent thereof shall knowingly issue, circulate, or cause to be isl)ued or circulated any estimate, illustration, circular or statement of any sort misrepresenting the terms of any policy issued by it, or the benefits or advantages promised thereby, or dividends or shares of surplus to be received thereon, or shall use any name or title of any policy or class of policies which misrepresent the true nature thereof: Provided nothing contained in this section nor in the following sections shall apply to any company or corporation except to companies or corporations doing an industrial, life, health or accident insurance business; nor shall it apply to any policy, membership or beneficiaf certificate except it be an industrial, health, life or accident insurance policy membership or certificate.]
Acts 1913, :o. 98.
627, ( c), P. 0.
2514 (g) . Receiving premium after insolvency . Fraudulent reinstatement. [No agent, director or officer shall knowingly and wilfully receive any premium or assessment on behalf of any insurance company or association or fraternal organization, knowing at the time of receipt of said premium or assessment that said company or association is insolvent according to the laws of the State of the organization of said company without giving notice thereof to the person paying the said premium or assessment. Any officer, director, agent, physician or other per-

105
son who shall knowingly issue or cause to be issued a policy or benefit certificate, or aid in the issuing of any policy or benefit certificate, or aid in the reinstating in membership or policy standing of any infirm or unhealthy person not at the time of such reinstatement or insurance in an insurable condition, with the intent to defraud, shall be guilty of a misdemeanor.]
Acts 1913, I>I>. 98, 99.
2514 (h). Fraudulent statements and claims prohibited. [No person shall knowingly or wilfully make or aid in making of any false or fraudulent statement or representation of any material fact or thing in any written statement or certificate for the purpose of procuring or attempting to procure the payment of any false or fraudulent claim against any such insurance company or fraternal or benefit association, and no person shall make any false or fraudulent statement or aid in the making of any false or fraudulent statement .in any application for insurance or as to the death or disability of the policy or certificate holder for the purpose of fraudulently obtaining any money or benefit from any such insurance company or fraternal or benefit association licensed to do business in this State.]
Acts 1913, I>I>. 98, 99.
u 2457, 2479, 2480, 2481. 2483.
741 (d). Vol. II, Park's Annotated Code. St{ltement of Claims. No persons knowingly or wilfully shall make or aid in the making of any false or fraudulent statement or representation of any material fact or thing in any written statement or certificate, for the purpose of procuring or attempting to procure the payment of any false or fr.audulent claim against any Industrial, Health, Life or Accident Insurance Company, or Fraternal or Benefit Association licensed, or which may be licensed, to do business in this State, and no person shall make any false or fraudulent statement in any application for insurance, or as to the death or disability of a policy or certificate holder in any such Industrial, Health, Life or Accident Insurance Company, or Fraternal or Benefit Association for the purpose of fraudulently obtaining

I06

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any money or benefit from any such insurance company, or fraternal or benefit association licensed, or which may be licensed, to do business in this State.
Acts 1921. 1>1>. 250. 251. 2457.
741 (e). Punishment. Any person who violates any of the provisions of this Act shall be guilty of a misdemeanor and upon conviction shall be punished as provided by Section 1065 of the Code of Georgia of 1910.
Acts 1921. 1>. 251. I 2457.
2514 (i). Agent or solicitor required to procure license . [No person shall act as agent or solicitor for any insurance company, benefit association or fraternal organization in this State without having first procured a license therefor from the insurance department of this State as required by the law.]
Acts 1913. 1>1>. 98. 99. 2445 (a).

2514 (j). Powers of insurance commzsszoner or deputy. [The insurance commissioner or deputy insurance commissioner of this State shall have full power to issue subpoenas and process requiring the presence of witnesses and the production of books and papers before him at the place where any investigation is being had by him, o.r either of them, and in the event any person who is served with such subpoena fails to comply therewith, he shall be punished as for a contempt by the superior court of the county in which the hearing is being had, and the superior courts of this State are fully empowered hereunto, including the power to issue attachments or other processes or no.tice, to the end that the person so subpoenaed may have his proper notice and his day in court.]
Acts 1913. 1>1>. 98. 100. 2412 (f ). .

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107

SECTION 14.

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

2516. Unlawful commerce. Prohibited or illegal commerce, or commerce with an enemy, or goods contraband of war, are not the subjects of marine insurance.
2517. Double insurance. Double marine insurance may be obtained by a party having an insurable interest; but in case of loss, he can recover from both companies only the full value of such interest: If one underwriter pays the whole amount, he is entitled to contribution from the other.
u 4588.2544.
2518. Implied warranty. The assured impliedly warrants that the ship is seaworthy, and shaH not be changed except from necessity and that she shall be employed, conducted, and navigated with reasonable skill and according to law.
2519. Illegal voyage. The illegality of the voyage, whether known to the assured or not, renders the contract void.
2520. Deviation. A deviation from the voyage, if voluntary and not from necessity, voids the policy. This necessity may arise from-
I. Stress of weather.
2 . Want of necessary repairs.
3 Joining convoy.

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4 Succoring ships in distress. 5. Avoi ding capture or detention. 6. Sickness of master or crew. 7 Mutiny on board. 8. Any similar cause founded upon reason.

2521. Perils of the sea. The "perils of the sea" comprehend all those misfortunes to which goods and ships at sea are ex- posed from earth, air, fire, or water. Loss from enemies is not included, unless expressly named. The negligence, or unskillfulness of masters or mariners is not included in a policy on the ships or goods belonging to the owners of the vessel. If loss occurs to third persons therefrom the underwriter may recover from the owner of the ship the amount paid by him.
i 2478.
2522. Continuance of risk . Generally the risk continues till the goods are delivered on shore at the port of destination, or to others by di~ection of the assured.
i 2515.
2523. Increase of risk . Any change by which the risk is increased voids the policy.
i 2482.
2524. Open policy. An open policy is where the amount of the interest of the assured is not fixed by the policy, but is left to be adjusted in case of loss; such policies may issue in blank to be filled by the insured as new risks may be desired.
i 2545 .
2525. Value, how ascertained. The value stated m a policy is always subject to be reduced by proof.
i 2546.

INsuRANCE LAws

109

2526. Former rules applicable. The rules as to warranties, misrepresentations, and concealments, are the same in marine as in fire insurance.
u 247&-2483.
2527. Rights of owners of merchandise on vessels. Whenever any cotton or merchandise, on any vessel loading or loaded, within the waters of this State is damaged by fire or water, or both, while within the waters of this State, the owners or insurers of such cotton or merchandise, or the agents of either or any of them, shall, after having given a satisfactory bond for the payment of the pro rata share of said cotton or merchandise in any liability for salvage, and in the expenses of general or particular average, and after having given a bond to hold the ship harmless against the liens of those liolding the bills of lading for said cotton or merchandise be authorized to take possession of and control such damaged cotton or merchandise, and use, manage, and dispose of the same for the protection of the interest of such owners or insurers in such property, any law, usage, custom, or anything in the contract of affreightment with the owner, master, or agent of such vessel to the contrary notwithstanding: Provided, that, as between the owner and insurer, the rights and powers of the owner shall hi'! prior and superior to the rights and powers of the insurer, except as specially stipulated m the contract of insurance.
Acts 1889. v. 165.

2528. Owner or master of vessel must care for damaged prop erty. Nothing in the preceding section shall be construed to relieve such owner or master of such vessel from taking proper care of such damaged property in the event the owners or insurers, within a reasonable time after such damage, fail to take control of such cotton or merchandise, and nothing herein contained shall be construed to relieve said damaged property from the liability imposed by existing laws and customs to contribute its proportion to the expenses accruing up to the time said property is taken possession of by the owner, insurer, or agent.

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SECTION 15.
Mutual Insurance
2529. Contract of mutual insurance. The contract of insurance is sometimes upon the idea of mutuality, by which each of the assured becomes one of the insurers, thereby becoming interested in the profits and liable for the losses; without a charter, such an organization would be governed by the gene.ral law of partnership; when incorporated, they are subject to the terms of their charter.
2530. By-laws. The rules and regulations of su~h a company, adopted in pursuance of the charter, become a part of each policy, and all the assured. are presumed to have notice thereof. But new conditions cannot be annexed to the policy after it is issued, except by the consent of the assured.
i 2471.
2531. Officers agents of all. The officers of such a company are the agents of all the assured, and to the extent of their misconduct or neglect, shall affect each, upon the general principles governing principal and agent, except as to the transaction of making the contract of insurance; up to the time of its execution, the assured stands as a third party, and the officer issuing the policy acts for those already in the company.
i 3601.
2532. Liability for reducing funds. If a mutual insurance company, by dividends, reduces its available funds below the point of remaining able to meet all losses occurring on policies then in existence, the directors of such company primarily, and the parties receiving the dividends, ultimately and pro rata, shall be liable individually, jointly, and severally, for the amount of such unpaid losses.

INSURANCE LAWS

III

2533 Stricter good faith required. A stricter good faith as to representations and concealments should be required m mutual insurance than in any other similar contracts.
i 2479.
2534 Agents of foreign companies to be licensed. Agents of all foreign insurance companies must obtain a license before taking insurance in this State, under the penalties and m accordance with the provisions of this Code.
u 2443. 2456, 935, 936. 937.

SECTION 16.
Mutual Companies Insuring Against Loss by Burglary, Etc.
2535. When to be licensed. Any insurance company organized and incorporated on the mutual plan under the laws of this State, and any other State of the United States, for the purpose of insuring against loss or damage resulting from burglary and robbery or attempt thereat, and insuring against the loss of money and securities in course of transportation when shipped by registered mail, shall be admitted and licensed to do business in this State as hereinafter provided.
Acts 1897. p, 64.
2536. Prerequisites to obtaining license. Before such company shall be permitted and licensed to transact business in this State it shall have in force five hundred or more policies on which the premium shall have been paid in cash, or shall be evidenced by the written contracts of the policyholders, on which not less than one-fifth of the amount shall have been paid in cash, and the cash and net face value of contracts for premiums on hand shall
,

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amount to a sum of not less than fifty thousand dollars. The premium contracts so held shall constitute a part of the asset~ of the company.

2537. Copy of charter and statement of condition to be filed. Every such company, association, or partnership shall file in the office of the commissioner of insurance a certified copy of their charter or deed of settlement together with a statement under oath of the president and vice-president and secretary of the company for which he, or they, may act, stating the name of the company and place where located, a detailed statement of its assets, showing the number of policyholders, aggregate amount of premium contracts, the amount of cash on hand in bank or in the hands of agents, the amount of real estate, and how the same is incumbered by mortgage, the number of shares of stock of every kind owned by the company, the par and market value of the same, amount loaned on bond and mortgage, the amount loaned on other securities, stating the kind and the amount loaned on each, and the estimated value of the whole amount of such securities and any other assets or property of the company; also stating_ the indebtedness of the company, the amount of losses adjusted and unpaid, the amount incurred and in process of adjustment, the amount resisted by the company as illegal and fraudulent, and all other claims existing against the company; also a copy of the last annual report, if any, made under any law of the State by which such company was incorporated; and no agent shall be allowed to transact business for any such compa ny whose reinsurance reserve, as required in this section, is impaired to the extent of twent y per cent. thereof while such deficien cy shall continue.

2538. Statement to be renewed. The statement required by the preceding paragraph shall be renewed from year to year in such manner and form as may be required by said insurance commissioner, with an additional statement of the amount of premiums received in this State during the preceding year, so long assuch agent continues, and the said insurance commissioner, on being

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IIJ

satisfied that the membership, assets, securities and investments remai~ secure, as heretofore mentioned, shall furnish a renewal of the certificate as aforesaid, upon the payment of the State, at the time of filing the statement here provided for, of a fee of five dollars for each corporation, and twenty-five dollars for each foreign corporation.

2539 Certificate of authority before doing business. Nor shall it be lawful for any agent or agents to act for any company or companies referred to in this section, directly or indirectly, in taking risks or transacting the business of burglary and robbery insurance, or the insurance of the safe shipping of money and securities by registered mail in this State, without procuring from the commissioner of insurance a certificate of authority, stating that such company has complied with all the requisitions of this section which apply to such companies, and the name of the attorney appointed to act for the company.
2443, 935.
2540. Line of business and reinsurauce reserve. Any company permitted and licensed to transact business in this State under this section shall confine its line of business to that stated in paragraph 2535, and shall confine its. business in this State to banks, bankers, loan companies, and county treasurers, and shall not issue any policy or policies to any persons, firms, or corporations in this State other than banks, bankers, loan companies, and county treasurers. Every such company shall set aside a reinsurance reserve of fifty per cent. of its premiums, whether collected in cash or represented by obligations of the policyholders, as written in its policies; this reinsurance reserve to be maintained so long as the risk is in force .

2 541. Membership fee and premium. Policyholders of any company permitted to transact business in this State under this section, shall be held liable to pay the membership fee and premium on their insurance as paid or contracted to be paid at the time the policy is taken out or the risk begins, and shall not be held liable

INSURANCE LAWS
for any other or further assessments or claims on the part of the company or its policyholders. The membership fee and pre.:. mium agreed upon may be collected in cash at the time the policy is issued, or evidenced by a written obligation uf the policyholder as may be agreed upon by the company and the policyholder. Such payment or obligation shall be the limit of the liability of the policyholder to the company for premium on their insurance.
2542. Service on appointed attorney and otherwise. It shall not be lawful for any insurance company, association, or partnership incorporated by or organized under the laws of any other State of the United States, for any of the purposes specified in this section, directly or indirectly to take risks or transact any business of insurancein this State, by any agent or agents in this State, until it shall first appoint an attorney in this State on whom process of law can be served, and file in the office of the insurance commissioner a written instrument, duly signed and sealed, certifying such appointment, which shall continue until another attorney be substituted, and any process issued by any court of record in this State, and served upon such attorney by the proper officer of the county in which such attorney may reside or may be found, shall be deemed a sufficient service of process upon such company, but service of process upon such company may also be made in any other manner provided by law.
2446, 2258, 2564.
2543. Penalty . Any violation of any of the provisiOns of this section shall subject the party violating the same to a penalty of not less than one hundred dollars or more than five hundred dollars.

SECTION 17.
Amount of Recovery .and D<l:m~g~
2544. Amount of recovery . The assured may recovh the full amount of his loss: Provided, the same is within the amount insured. If he has several policies on the same property, the recovery from each company will be pro rata as to the amount insured.
2476. 2517. 2489.
2 545. Valued policy . All insurance companies shall pay the full amount of loss sustained upon the property insured by them: Provided, said amount of loss does not exceed the amount of insurance expressed in the policy; and all stipulations in such policies to the contrary shall be null and void: Provided, that in cases of losses on stocks of goods and merchandise and other species of personal property changing in specifics and quantity by the usual customs of trade, only the actual value of the .property at the time of loss may be recovered: Provided, the loss does not exceed the amount expressed in the policy.
Acts 1895. I>. 51. 4390. 2524. 2525. 4253, 2474. 3256.
2546. Estimation of value. The 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 reinstating 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 reasonable time, nor the insurer for increased value from the fact of new and more valuable materials.
3711.

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2548. Recouery back by insurer. If, after payment of loss,

the insurer discovers evidence to show himself not liable on the

policy, he may recover back the money in an action for money had

and received.

zm. n

us1. 4317. 457o. 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 refuse to pay the same within sixty days after a demand shall have been made by the holder of the policy on which said loss occurred, shall be liable to pay the holder of said p olicy, in addition to the loss, not more than twenty-five per cent. on the liability of said company for said loss; also, .all reasonable attorney's fees for the prosecution of the case against said company: Provided, it shall be made to appear to the jury trying the same that the refusal of the company to pay said loss was in bad faith.
Acts 1872, p, 43.
u 4392, 4505, 2666. 3714 (2).

SECTION 18.
Fidelity Insurance
25 50. Contract of fidelity insurance . The contract of fidelit y insurance contemplated by this Article is one whereby a fidelit y insurance company, or such other corporation or company as may be doing a fidelit y insurance business in this State, for a stipulated sum of mone y, or premium, insures 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 performance of all such bonds, or other obligations in fa vor



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of the insured as individuals now do under the law who sign the bond of all such persons as sureties.
Acts 188'7. I>. 108. 282, 986, 2458.

2551 . What companies may become 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 transact~ - ing business of fidelity insurance, which has a paid up capital of not less than two hundred and fifty thousand dollars, and which shall have complied with all requirements of law for license to and transaction of business by such companies in this State, may, upon proper proof thereof and upon production of evidence of solvency and credit, satisfactory to the judge, head of department, or other officer or officers in this State authorized to approve and accept bonds, be accepted as surety upon the bond of any person, company, or corporation required by the laws of this State to execute bonds, in lieu of any surety or sureties now required by law; any such fidelity insurance company, or other companies in this State doing a fidelity insurance business, may be released from its liability on such bonds on the same terms and conditions as are by law prescribed for the release of individuals; it being the true intent and meaning of the provisions of this Article to enable the companies and corporations 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.
i 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 proceeding to enforce the liability which it shall



II8

INSURANCE LAWS .

have assumed or incurred, to deny its corporate power to execute such instrument, or assume such liability.
6736.

2553 Venue of suits on such bonds. In the event any fidelity insurance company, 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 corporation 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 company 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 comptrollergeneral, which license shall be revoked if said companies as to any bond as to business in this State shall begin a suit in the United States courts, or remove or cause to be removed 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 required of such companies in writing bonds of public officials of this State= Provided, That whenever any such company shall have already deposited $25,ooo.oo as now provided by law for writing bonds. of public officials it shall not be required to deposit an additional sum.]
Acts 1912. I>ll. 119, 133.
2557.

2554. Bonds of city, county, and State officers . Solvent guarantee companies, surety companies, fidelity insurance comp.anie~, and fidelity and deposit companies incorporated and organized under the laws of this State, or any other State of the

INSURANCE LAWS
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 requirements of law as to license required by the State, may upon proper proof thereof, and upon production of evidence of solvency, be accepted upon the bonds of all cit y, count y, 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 reason 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. D. 58. 1897. D. 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.
i 5059.
2556 . R emedies in case of defqu/t. In case of default upon any bond upon which such companies are sureties, then the city, county, and State authorities shall ha ve 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, D. 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 hereafter doing business in this 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

120

INSU RANCE LAWS

thereon, shall be required to deposit with the Treasurer of this State bonds of the United States, or bonds ot this State which according to the acts and resolutions of the General Assembly are valid, and which amount according to their face value, to twenty-five thousand dollars, which bonds shall be receipted for by the State Treasurer, and especially deposited by him in the vaults of the treasury, and whenever such company ceases to do business in this State and has settled up all claims against it, as hereinafter provided, and has been 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. Collection of coupons, faith of the State. While said bonds are so deposited, the owner of the same shall, subject to the notices provided for or given, be entitled to collect the coupons and use them. For the bonds so deposited the faith of the State is pledged that they shall be returned to the parties entitled to receive them, or disposed of as hereinafter provided.
Acts 1896, p , 58.
2419.
Acts of Dec. 19, 1900, reQuires registered bonds to be dei>osited. See clause following Sec. 2419.

25 59 Proceedings when loss occurs, receiver. Whenever any loss insured against occurs, the insured, in order to secure his recovery, may give ~otice to the State Treasurer of the pendency of the loss and of the amount claimed, after which time the State Treasurer shall be bound to retain, subject to the order of the court trying any suit that may be brought for the recovery of such loss, a sufficient amount to pay the judgment in 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 ten 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.

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When a receiver is appointed by the judge, who shall always require bond and security of him for the faithful performance of his duty, the State Treasurer, on his application, s~all deliver to him bonds sufficient in their market value, if in his custody, to satisfy the judgment. The receiver's receipt shall be a complete discharge to the treasurer 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 allowed by the judge, he shall pay over to the plaintiff, or his attorney, a sufficient amount to satisfy the judgment; and if there remains any residue in the hands of the receiver, he shall pay it to the agent of the company, taking his receipt 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 other case and make known his claim to the other receiver by making affidavit of the claim and filing the same with him, and then the receiver shall report such claim to the judge of the superior court appointing him, who sha11 by order provide for a bi11 of interpleader, as in cases in equity.
H 5471, 5475, 5482, 2420, 2421, 2422.

2560. When t;xcess of bonds shalf be returned. The State Treasurer, upon demand made upon him by sai'd companies, shall return to insurance and fidelity and deposit companies and fidelity and surety companies the excess of the deposits held by him over and above the deposit required of said companies is lessened by the law, the excess of the sum required by law after such decrease shaH, upon demand of said companies, be returned to them by State Treasurer.
Acts 1899, II. 54.
I 2424. 2562.

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2561. When a company desires to withdraw from the State. When any company desires to withdraw from the State and wilf satisfy the insqrance comm~ssioner that all suits pending against it, and of which no notice has been given, ha ve been full y 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 comm1ss1oner. When any company, having made the deposit required by this law, has assumed an y liability, by suretyship or otherwise, on which 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 accru ~d or upon obligations thereinbefore assumed by said company (where no losses have occurred ), be full y settled before said deposits shall b~ withdrawn.
Acts 1896. v. 58.
n 2423. 2425.
2561 (a). Withdra wal of deposit by retiring company , how accomplished. Conditions specified. [In case any fidelit y insurance company, or any surety or bonding company 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 required of such companies, the same may be accomplished in the following manner: The company so desiring to retire from business and to withdraw the deposit shall file with the insurance commissioner in writing, verified by the oath of one of its executive officers, ,.;t?ting that

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it has retired, or on or after the date of the filing of such wnung 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 statute of this State regulating the business of such companies. Addition~lly thereto the company shall do one of the following three things:
First. Submit a statement under oath verified by one of its executive officers that such company has settled all losses which have accrued against it on 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 newspaper 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 intention qf 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 allowed to withdraw its deposit that they should make the same known in writing to the insurance commissioner on or before the date named shall have jurisdiction to hear evidence 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

INSU RANCE LAWS
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 thereof. Such bond so to be given shall have as surety thereon some fidelity insurance company or surety or bonding company, which shall h;;.ve 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 person, 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 retiring 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 indemnity of the retiring company in like manner as if it were a joint obligation or joint surety upon each and every bond or assumption of suretyship made or executed in this State by said retiring company. The surety upon the bond so given by such retiring company shall be liable to the same extent and in the same manner as if it were ace-surety with the retiring company upon each and all of the obligations assumed upon risks and bonds written in this State.
Third. Or make proof to the insurance commissioner of this State that it has reinsured all of its risks and obligations, 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 such 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

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liable in like manner as if it were a joint promissor or a co-surety 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 11116. v. 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 foregoing 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 shall be authority to the State Treasurer thereupon to deliver such bonds to said company or to such person, firm, or corporation as it may in writing direct the State Treasurer to deliver them to; and upon such company or person duly authorized in writing by such company to receive such bonds for it, receipting the treasurer therefor, the treasurer shall deliver such bonds to said company or the person to whom said company shall direct that they be delivered.]
Acts 1916. v. 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 an y of its obligations, but it shall still remain bound thereon until the same shall have been fully discharged and satisfied. If the company which shall have guaranteed or assumed the liability of such retiring company is sued upon a bond executed or a risk originally assumed by such retiring company without such retiring company also being joined therein, it may give to the company whose risk it has guaranteed

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or assumed,' notice of the pendency of the suit, and as b~tween the two companies and their privies the judgment rendered it1 such action shall be conclusive as to the validity and extent of the liability claimed in the suit; and the company originally liable may cause itself to be made party defendant and may defend the action with like effect as if it were sued in the first instance. Upon judgment being rendered against the company assuming <>r guaranteeing the liability of the retiring company it shall be subrogated to all the rights of the company for whose undertaking it shall so have been held liaple. Any right of action for reimbursement which the retiring company would have had if it had been directly sued and held liable, against the principal on the bond, against indemnitors or other third persons or corporations, or collateral deposited or upon funds or against persons to which or to whom it might otherwise, either in law or equity, have the right to look for reimbursement, shall survive 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. v. 132.
2562. Amount of bonds must be maintained. Whenever, 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 depositing, 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 capitol, of the fact of such failure and revocation 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.
Acts 1896, v. 58.
I 2424. 2560.

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2562 (a). Contracts of suretyship between common carriers and their employees . [No commoh carrier authorized to do business in this State when requiring of any employee that he give bond or undertaking of any nature whatsoever shall require as surety thereon any one or more specific 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 of verbiage of such bond.]
Acts 1912. v. 159.
630 (b). P. 0.
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 at least ten days' notice in writing, setting out in full the reasons for cancelling same. Any such notice 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 association may be had. Any surety on any such lwnd or undertaking shall, upon the breach of any of the conditions thereof 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 affect any right of action accruing to any person upon the breach of a contract.]

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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 insur. ance c~mpany 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 the time the cause of action accrued, or the contract was made out of which said cause of action arose.
Acts 1861. PD. 58. 59. 1862-3. D. 161. 18'78-9, p, 54. I902, p , 53.
u 2446. 2258, 2259. 2553. 2564 (1).
2564. Service on non-resident, assessment, etc., insurance companies. In all such suits service shall be perfected upon such insurance companies by leaving a copy of the petition or writ with the agent of the company, if any. If no agent should be in the county, then at the agency or place of doing business, or where the same was located 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. D. 75. 2446. 2258, 2542. 2874. 2553.

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SECTION 19 (a).
Fraternal Beneficiary Orders
[ 2564 (a)-2564 (k) appeared in the Code of 1910 as 2866-2877. These 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) . Defin ed. 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 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 bodi es, past officers, and standing committees . Such orders or associations may make a constitution, by-laws, rules, and regulations consistent with the existing laws of the State, for the government of all under its authority, for the management of its properties, and the due and order! y conduct of itsaffairs.
Acts 1900. p. 71. H 2418. 2564 (p), 2564 (a l-2564 (s ). ~ 629. 630. P . 0.
2564 (b). Benefits. Such orders or associations may make provis~on for the payment of benefits in case of death, sickness, temporary or permanent physical disability, either as the result of disease, accident, or old age: Provided, the period of life at which payment for old age commences shall not be under se venty

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years. Any such order or association may also accumulate, maintain, apply, or disburse among its membership a reserve, 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 funds from which the payment of benefits shall be made, and the funds from which the expenses shall be defrayed, shall be derived from assessments, dues, or other payments collected from its members, as may be provided by the constitution or by-laws of such order or association. Payment of death benefits shall be to families, heirs, blood relatives, affianced husband, or affianced wife of, o; to persons dependent upon, the member, as may be designated by the member.
2496.
2564 (d). By what law governed. Such orders or associations 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 designated therein.
u 2461, 2564 (g), (k), (1).
2564 (e). Existing assoctattons; reports. Any fraternal 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 its 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

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having lodges, councils, or other bodies or members in this State, shall be permitted to do business within this State when it shall have filed with the insurance commissioner a certificate from the official in charge ()f insurance matters in its home State of incorporation that it is authorized to transact business therein as a fraternal beneficiary order or association; also a duly certified copy of its charter and articles of association, and a copy of its constitution and laws, certified to by its secretary or corresponding officer together with the appointment of the insurance commissioner as the person upon whom legal process may be served as hereinafter provided.
2564 (!). 2564 (ff) .

2564 (g). Reports. Every such corporation, society, order, or association doing business in this State, shall, on or before the first day of March each year, make and file with the insurance commissioner a report of its affairs and operations during the year ending the thirty-first day of December immediately preceding, which annual report shall be in lieu of all other reports required by any other law. Such reports shall be made on blanks provided by the insurance 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 withi.n this State, and the insurance commissioner shall at once recall and cancel their license.
15.

2564 (i). Service on such association. See Section 2564 (gg).

INSURANCE LAWS
2564 (j). Record of suits. The insurance comm1sswner shall keep a record of all such attorneys appointed for such service, together with the record of when any such petitions with process were received by him in any case, and forwardea 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 Code of 1910. It has been superseded by 2565 (m), 2565 (o).]
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 Fellows, Red Men, Junior Order American Mechanics, or similar orders that do not have as their principal object the issuance of benefit certificates to members.
2564 (uu).
2564 (1) . Non-resident fraternal orders. [Fraternal benefficiary 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 membership of less than 1,000 members, and they shall be required to suhmit 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 of 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 for insurance to medical examination.]
Acts 1912. I>I>. 119, 138. H 2499 (a ), 2564 (f), 2564 (o).

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2564 (m). Lice.nse. [The insurance commissioner is hereby authorized to investigate fully the financial condition of such societies or associations, and if in his judgment, the management of their affairs is not such as to justify 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 requirements 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. I>I>. 119, 138.
2415 (a).2415 (b) . 2565 (oJ. 2564 (ee), 2564 (tt).
See Sec. 2564 (ff) amending reQuirement of fee for societies of other States.

2564 (n). Incorporation of domestic fraternal orders. lDomestic fraternal beneficiary societies or associations shall be chartered by the Secretary of State, and shall conform to all the requirements of the Act of I 893 with reference to the incorporation of insurance companies except that they shall not be required to have any capital stock.
Acts 1912. I>I>. 119. 139.
It 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 commis. sioner. When such societies or associations have obtained not less than 300 bona fide applications for insurance, the advance assessments on which have been paid, and a list of the subscribers with their postoffice address and the amount of their advance _assessments has been submitted to the insurance commissioner,

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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 $4o.oo. 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 may be revoked, as provided for the revocation of license of insurance companies.]

Acts 1912, llll. 119, 139. 2499 (a), 2415 (a), 2415 (b), 2564 (1), 2564 (m), 2564 (n). 2564 (ee), 2564 (ff) .

2564 (p). Form of go vernment. [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 elected 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 twothirds of the vote, nor less than the votes required to amend its constitution and laws. No member of any domestic insurance fraternity, who is a director or manager of such insurance frater-

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nity, shall have a contract for fees or premmms from such fraternity.]
Acts 1912, pp. 119, 140,
t 2564 (S).

SECTION 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 carried on solel y for the mutual benefit of its members and their beneficiaries and not for profit, and having a lod~e system with ritualistic form of work and representative form of government and which shall make provision for the payment of benefits, in accordance with Section 2564 (u), is hereby declared to be a fraternal benefit society.)
Acts 1914, p . 99. 2564 (a) .
2564 (r) . Lodge system defined. [Any society having a supreme governing legislative body and subordinate lodges or branches by whatever name known, into which members shall be elected, initiated, and admitted in accordance with its constitution, laws, rules, regulations, and prescribed ritualistic ceremonies which subordinate lodges or branches shall be required by the laws of such society to hold regular or stated meetings at least once in each month, shall be deemed to be operated on the lodge s y s t e m .]
Acts 1914, p . 99.
t 2564 (a).

INSURANCE LAWS
2564 (s) . Representative form of government define_d. [Any such society shall be deemed to have a representative form of government when it shall provide in its constitution and laws for a supreme legislative or governing body, composed of representatives elected either by the members or by delegates elected directly or indirectly by the members, together wi'th such other members as may be prescribed by its constituti~n and laws; provided, that the elective members shall constitute a majority in number and have not less than two-thirds of the votes, nor less than the votes required to amend its constitution and laws; and provided further. that the meetings of the supreme or governing body, and the election of officers, representatives or delegates shall be held as often as once in four years. The members, officers, representatives or delegates of a fraternal benefit society shall not vote by proxy.]
Acts 1914. I>. 99. 2564 (a), 2564 (I>).
2564 (t). Exemptions. [Except as herein provided, such societies shall be governed by this section, and shall be exempt from all provisions of the insurance laws of this State, not only in governmental relation with the State, but for every other purpose and no law hereafter enacted shall apply to them, unless they be expressly designated therein.]
Acts 1914. I>I>. 99. 100.
2564 (u). Benefits.
I . Every society transacting business under this section shall provide for the payment of death benefits and may provide for the payment of benefits in case of temporary or permanent physical disability, either as the result of disease, accident or old age, provided, the period of life at which the payment of benefits for disability .on account of old age shall commence, shall not be under seventy years, and may provide for monuments or tombstones to the memory of its deceased members, and for the payment of funeral benefits. Such society shall have the power to give a member, when permanently disabled or on attaining the age of

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seventy, all, or such portion of the face value of his certificate as the laws of the society may provide; provided, that nothing in this law contained shall be so construed as to prevent the issuing of benefit certificates for a term of years less than the whole of life which are payable upon the death or disability of the member occurring within the term for which the benefit certificate may be issued. Such society, shall, upon written application of the member, have the power to accept a part of the periodical contribution in cash, and charge the remainder, not exceeding one-half of the periodical contribution, against the certificate with interest payable or compounded annually at a rate not lower than four per cent. per annum; provided, that this privilege shall not be granted . except to societies which have readjusted or may hereafter readjust their rates of contributions, and to contracts affected by such readjustments.

2 . Any society which shall show by the annual valuation hereinafter provided for that it is accumulating and maintaining the reserve not lower than the usual reserve computed by the American experience table and four per cent. interest, may grant to its members extended and paid-up protection, or such withdrawal equities as its constitution and laws may provide; provided that such grants shall in no case exceed in value the portion of the reserve to the credit of such members .to whom they are made.]
Acts 1914, PP. 99. 100. For further prov!s!ons as to benefits, see Sec. 2564 (zz).

2564 (v). Beneficiaries. [The payment of death benefits shall be confined to wife, husband, relative by blood to the fourth degree, father-in-law, mother-in-law, son-in-law, daughterin-law, step-father, step-mother, step-children, children by legal adoption, or to a person or persons dependent upon the member; provided, that if after the issuance of the original certificate the member shall become dependent upon an incorporated charitable institution, he shall have the privilege with the consent of the society to make such institution his beneficiary. Within the above restrictions each member shall have the right to designate his beneficiary, and from time to time, have the same changed

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in accordance with the laws, rules or regulations of the society, and no beneficiary shall have or obtain any vested interest in the said benefit until the same has become due and payable upon the death of the said member; provided that any society may, by its laws, limit the scope of beneficiaries within the above classes; 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.]
Acts 1914. DD. 101. Acts 1917, D. 104, Vol. 8. Park's Annot. Code.
2564 (w). f!<.,ua/ifications for membership. [Any society may admit to beneficial membership any person not less than sixteen and not more than sixty years of age, who has been examined by a legally qualified physician, and whose examination has been supervised and approved in accordance with the laws of the society proved that any beneficiary member of such society who shall apply for a certificate providing for disability benefits, need not be required to pass an additional medical examination therefor. Nothing herein contained shall prevent such society from accepting general or social members.]
Acts 1914. DD. 99, 101. t 2499 (a).
2564 (x). Certificate. [Every certificate issued by any such society shall specify the amount of benefit provided thereby, and shall provide that the certificate, the charter or articles of incorporation, or, if a voluntary association, the articles of association, the constitution and laws of the society and the application for membership and medical examination, signed by the applicant, and all amendments, to each thereof, shall constitute the agreement between the society and the member, and copies of the same certified by the secretary of the society, or corresponding officer, shall be received in evidence of the terms and conditions thereof, and any changes, additions or amendments to said charter or articles of incorporation, or articles of the associations.

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if a voluntary association, constitution or laws dul y made, or enacted subsequent to the issuance of the benefit certificate shall bind the member and his beneficiaries, and shall govern and control the agreement in all respects the same as though such changes, additions or amendments had been made prior to and were enforced at the time of the application for membership.]
Acts 1914, vv. 99, 102.
l 2471.

2564 (y). Funds .
[1. Any society may create, maintain, invest, disburse and apply an emergency, surplus or other similar funds in accordance with its laws. Unless otherwise provided in the contract, such funds shall be held, invested, and disbursed for the use and benefit of the society, and no member or beneficiary shall have or acquire individual rights therein or become entitled to any apportionment or the surrender of an y part thereof, excep.t as provided in subsection two of Section 2564 (u). The funds from which benefits shall be paid and the funds from which the expenses of the society shall be defrayed, shall be derived from periodical or other payments by the members of the society and accretions of said funds; provided, that no society shall hereafter be incorporated which does not provide for stated periodical contributions sufficient to provide for meeting the mortuary obligations contracted, when valued upon the basis of the national fraternal congress table of mortality as adopted by the national fraternal congress August 23rd, 1899, or any higher standard with interest assumption not more than four per cent. per annum, nor shall any society be admitted to transact business in this State which does not provide for stated periodical contributions sufficient to provide for meeting the mortuary obligations contracted when valued upon one of the bases named in Section 2564 (nn) and applicable thereunder to such society. No society, domestic or foreign, shall hereafter be incorporated or admitted to write or accept members for permanent disability benefits except upon tables

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based upon reliable experience with an interest assumption not higher than four per cent.
2. Deferred payments or installments of claims shall be con- . sidered as fixed liabilities on the happening of the contingency upon which such payments or installments are thereafter to be paid; such liability shall be the present value of such future payments or installments upon the rate of interest and mortality assumed by the society for valuation, and every society shall maintain a fund sufficient to meet such liability regardless of proposed future collections to meet any such liabilities.]
Acts 1914, DD. 99, 102.
2564 (z). Investments. [Every society shall invest its funds only in securities permitted by the laws of this State for the investment of the assets of life insurance companies; provided that any foreign society permitted or seeking to do business in this State, which invests its funds in accordance with the laws of the State in which it is iqcorporated, shall be held to meet the requirements of this law for the investment of funds.]
Acts 1914, DD. 99, 103.
i 2408.
2564 (aa) . Distribution of funds . [Every provisiOn of the laws of the society for payment by members of such society, in whatever form made, shall distinctly state the purpose of the same and the proportion thereof which may be used for expenses, and no part of the money collected for mortuary or disability purposes or the net accretions of either or any of said funds shall be used for expenses.]
Acts 1914. DD. 99. 104.
2564 (bb). Organization. [Seven or more persons, citizens of the United States, and a majority of whom are citizens of this State, who desire to form a fraternal benefit society, as defined by this law may make and sign (giving their addresses) and acknowledge. before some officer competent to take acknowledgment of

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deeds, articles of incorporation, in which shall be stated: First, the proposed corporate name of the society, which shall not so closely resemble the name of any society or insurance company already transacting business in this State as to mislead the public or to lead to confusion; second, the purpose for which it is formed which shall not include more liberal powers than are granted by this law, provided that any lawful social, intellectual, educational, charitable, benevolent, moral or religious advantages may be set forth among the purposes of the society and the mode in which its corporate powers are to be exercised; third, the names, residences and official titles of all the officers, trustees, directors or other persons who are to have and exercise the general control and management of the affairs and funds of the society for the first year or until the ensuing election at which all such officers shall be elected by the supreme legislative or governing body, which election shall be held not later than one year from the date of the issuance of the permanent certificate. Such articles of incorporation and duly certified copies of the constitution and laws, rules and regulations and copies of all proposed forms of benefit certificates, applications therefor and circulars to be issued by such society and a bond in the sum of five thousand dollars, with sureties approved by the insurance commissioner, conditioned upon the return of the advanced payments as provided in this section, to applicants, if the organization is not completed within one year, shall be filed with the insurance commissioner, who may require such further information as he deems necessary, and if the purposes of the society conform to the requirements of this law, and all provisions of law have been complied with, the insurance commissioner shall so certify and retain. and record, (or file), the articles of incorporation, and furnish the incorporators preliminary certificate authorizing said society to solicit members as hereinafter provided. Upon receipt of said certificate from the insurance commissioner, said society may solicit members for the purpose of completing its organization and shall collect from each applicant the amount of not less than one regular monthly payment in accordance with its table of rates as provided by its constitution and laws, and shall issue

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to each such. applicant a receipt for the amount so collected, but no such society shall incur any liability other than for such advanced payments, nor issue any benefit certificate nor pay or allo.,v, or offer or promise to pay or allow, to any person any death or disability benefit until actual bona fide applications for death benefit certificates have been secured upon at least five hundred lives for at least one thousand dollars each, and all such applicants for death benefits shall have been regularly examined by legally qualified practicing physicians, and certificates of such examinations have been dul y filed and approved by the chief medical examiner of such society; nor until there shall be established ten subordinate lodges or branches into which said five hundred applicants have been initiated; nor until there has been submitted to the insurance commissioner under oath of the president and secretary, or corresponding officers of such society, a list of such applicants, giving their names, addresses, dates examined, dates approved, dates initiated, name and number of the subordinate branch of which each applicant is a member, amount of benefits to be granted, rate of stated periodical contributions, which shall be sufficient to provide for meeting the mortuary obligations contracted, when valued for death benefits upon the basis of the national fraternal congress table of mortality, as adopted by the national fraternal congress August 2Jrd, I 899, or an y higher standard based upon reliable experience, and for combined death and permanent total disability benefits by tables based upon reliable experience, with an interest assumption not higher than four per cent. per annum; nor until it shall be shown to the insurance commissioner by the sworn statement of the treasurer, or corresponding officer of such society, that at least five hundred applicants have each paid in cash at least one regular monthly payment as herein provided per one thousand dollars of indemnity to be effected, which payments in the aggregate shall amount to at least twenty-five hundred dollars; all of which shall be credited to the mortuary or disability fund on account of such applicants, and no part of which may be used for expenses. Said advanced payment shall, during the period of organization, be held in trust, and if the organization is not com-

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pleted within one year as hereinafter provided, returned to said applicants. The insurance commissioner may make such examinati on and require such further information as he deems advisable, and, upon presentation of satisfactory evidence that the society has complied with all the provisions of law, he shall issue to such society a certificate to that efiect. Such certificate shall be prima facie evidence of the existence of such society at the date of such certificate. The insurance commissioner shall cause a record of such certificate to be made and a certified copy of such record may be again* in evidence with like effect as the original certificate. No preliminary certificate granted under the provisions of this section shall be val id after one year from its date or after such further period, not exceeding one year, as may be authorized by the insurance commissioner, up6n cause shown; unless the five hundred applicants herein required have been secured and the organization has been completed as herein provided; and the articles of incorporation and all proceedings thereunder shall become null and void in one year from the date of said preliminary certificate, or at the expiration of said extended period unless such society shall have completed its organization and commenced business as herein provided. When any domestic society shall have discontinued business for the period of one year, or . has less than four hundred members, its charter shall become null and void. Every such society shall' have the power to make a constitution and by-laws for the government of the society, the admission of its members, the management of its affairs and the fixing and readjusting of the rates of contribution of its members from time to time; and it shall have the power to change, alter, add to or amend such constitution and by-laws and shall have such other powers as are necessary and incidental to carrying into effect the objects and purposes of the society.]
Acts 1911, DD. 99. 104.
2388, 2564 (n).
"This word avvears in the enrolled Act.

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AN ACT
To provide for g1vmg notice to any person, order, lodge, society or corporation, whose name is sought to be used or mentioned in connection with the granting of Charter or Articles of Incorporation, or in connection with the organization of any corporation without the knowledge or consent of such person, etc., and for filing objections by such person, etc., to the granting of such Charter or Articles of Incorporation to any person or persons making application therefor; and to authorize the Superior Court or Judges thereof or the Secretary of State, either to grant or refuse to grant such Charter or Articles of Incorporation under the pleadings or evidence in the case, after hearing, in their discretion to provide for writs of error and motions for new trial or appeal from the judgment of the trial Judge or trial court, or the Secretary of State to the Court of Appeals or the Supreme Court; and for other purposes.
I. From and after the passage of this Act, whenever application is made to the Superior Court of this State, or to any of the judges thereof, or to the Secretary of State to obtain a Charter or the authorization of Articles of Incorporation, for any purpose, it shall be unlawful in such case to use the name of any person, order, lodge, society or corporation, either as a corporate name or mentioned in connection with the purpose of such proposed organization without the consent of such person, lodge, order, society or corporation of such intention to apply for a Charter or Articles of Incorporation, by registered letter mailed to the person, etc., whose name is to be so used, at his or its residen ce or business addre.ss, stating the proposed name of the organization, its purposes, etc., and the time and place at which such application will be passed upon by the Superior Court, or the Judges thereof, or the Secretary of State, as the case may be, at least fifteen (IS) days previous to the time of passing upon such application for Charter or Articles of Incorporation.
2. It shall be the right of any person, order, lodge, society or corporation interested in the result of such application, and who

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obj.ects to the granting of such Charter or Articles of Incorporation, to file objections to such grant and to appear before the Superior Court or the Judge thereof, or the Secretary of State, as the case may be, and file written objection thereto, and such Court or Judge, or Secretary of State, may, .after hearing the issue formed by the application and objections filed thereto, and after hearing evidence thereon, in its or his discretion grant or refuse such Charter or Articles of Incorporation. The hearing on such application and objections filed thereto may be heard at such time and place within the county where the application is made under appropriate order of the Superior Court or the Judge thereof, or the Secretary of State, as may be fair and just to all parties concerned.
J. Either party to the cause who is dissatisfied with the judgment of the Superior Court, or the Judge thereof, or the action of the Secretary of State, may except to such judgment or action and take the case to the Court of Appeals or the Supreme Court by writ of error or motion for a new trial, as now provided by law for taking cases to those Courts.
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 20, r923.
2564 (cc). Powers retained. Reincorporation. Amendments. [Any society now engaged in transacting business in this State may exercise, after the passage of this law all of the rights conferred thereby, and all of the rights, powers, and privileges now exercised or possessed by it under its charter or articles of incorporation not inconsistent with this law, if incorporated; or, if it be a voluntary association, it may incorporate hereunder, but no society already organized shall be required to reincorporate hereunder, and any such society may amend its articles of incorporation from time to time in the manner provided therein or in its constitution and laws, and all such amendments shall be fi.Jed with the insurance commissioner and shall become operative

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up<in such filing, unless a later time be provided in such amendments or in its articles of incorporation, constitution or laws.]
Acts 1914. pp. 99. 107.
2564 (dd) . Mergers and transfers. [No domestic society shall merge with or accept the transfer of the membership or funds of any other society unless such merger or transfer is evidenced by a contract in writing setting out in full the terms and conditions of such merger or transfer, and filed with the insurance commissioner of this State, together with a sworn statement of the financi!ll condition of each of said societies, by its president and secretary, or corresponding officers, and a certificate of such officers, duly verified under oath of said officers of each of the contracting societies, that such merger or transfer has been approved by a vote of two-thirds of the members of the supreme legislative or governing body of each of said societies. Upon the submission of said contract, financial statements and certificate, the insurance commissioner shall examine the same, and, if he shall find such financial statements to be correct and the said contract to be in conformity with 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, issue his certificate to that effect and thereupon the said contract of merger or t~ansfer shall be of full force and effect. In case such contract is not approved, the fact of its submission and its contents shall not be disclosed by the insurance commissioner.]
Acts 1914. PP. 99. 108.
2564 (ee). Annual license. [Societies which are now authorized to transact business in this State may continue such business until the first day of April next succeeding the passage of this law, and the authority of such societies may thereafter be renewed annually; but in all cases to terminate on the first day ~f the succeeding April; provided, however, the license shall continue in full force and effect until the new license be issued or specificafly refused. For each such license or renewal the society shall pay the commissioner of insurance forty dollars. A duly certified copy or

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duplicate o.f s~ch license shall be prima facie evi.dence that the

license is a fraternal" benefit society within the meamng of this

law.]



Acts 1914, 1>1>. 99, 108.
n 2564 (m), 2564 (o).

2564 (ff). Admission of foreign society. [No foreign society now transacting business, organized prior to the passage of this law, which is not now authorized to transact business in this State, shall transact any business herein without a licer{se from the insurance commissioner. Any such society shall be entitled to a license to transact business within this State upon fili~g 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 corresponding officer; a power of attorney to the commissioner as hereinafter provided; a statement of its business under oath of its president and secretary, or corresponding officers, in the form required by the commissioner, duly verified by an examination made by the supervising insurance official of its home State or other State satisfactory to the commissioner of insurance of this State, a certificate from the proper official in its home State, province 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 holding sim1lar contracts; and upon furnishing the commissioner such other information as he may deem necessary to a proper exhibit of its business and plan of working, an.d upon showing that its assets are invested in accordance with the laws of the State, territory, district, province or country where it is organized, he shall issue a license to such society to do business in this State until the first day of the succeeding April, and such license shall, upon compliance with the provisions of this law, be renewed annually, but in all cases to terminate on the first day of the succeeding April; provided, however, that license shall continue in full force and effect and until the new license be issued or specifically refused. Any foreign society desiring admission to this State shall have the qualifications required of domestic societies organized under this law,

!NSU)lANCE LAWS
upon a valuati-on by any one of the standards authorized in Section 2564 -(nn), and have its assets invested as required by the laws of the State, territory, district, country, or province where it is organized. For each such license or renewal the society shall pay the commissioner twenty dollars. When the commissioner refuses to license any society, or revokes its authority to do busiJ;less in this State, he shall reduce his ruling, order or decision to ~riting and file the same in his office, and shall furnish a copy thereof together with a statement of his reason, to the officers of the society, upon request, and the action of the commissioner shall be reviewable by proper proceedings in any court of competent jurisdiction within the State; provided, however, that nothing contained in this or the preceding section shall be taken or construed as preventing any such society from continuing in good faith all contracts made in this State during the time such society was legally authorized to transact business herein.]
Acts 1914, DD. 99, 109.
2564 {f), 2564 (m). 2564 (o).
2564 (gg). Power of attorney and service of process. [Every society, whether domestic or foreign, now transacting business in this State, shall, within thirty days after the passage of this law, and every such society hereafter applying for admission, shall, before being licensed, appoint in writing the insurance commissioner and his successors in office to be its true and lawful attorney, upon whom all legal process in any action or proceeding against it shall be served, and in such writing shall agree that any lawful process against it which is served upon such attorney shall be of the same legal force and validity as if served upon the society and that the authority shall continue in force so long as any liability remains outstanding in this State. Copies of such appointment, certified by said insurance commissioner, shall be deemed sufficient evidence thereof and shall be admitted in evidence with the same force and effect as the original thereof might be admitted. Service shall only be made upon such attorney, must be made in duplicate upon the insurance commissioner, or, in his absence upon the person_i~ charge of his office and shall

INsuRANCE LAws
be deemed sufficient service upon such society; provided, however, that no such service shall be valid or binding against any such society when it is required thereunder to file its answer, pleading or defense in less than thirty days from the date of mailing the copy of such service to such society. When legal process against
any such society Is served upon said insurance commissioner he
shall forthwith forward by registered mail one of the duplicate copies prepaid and directed to its secretary or corresponding officer. Legal process shall not be served upon any such society except in the manner provided herein.]
Acts 1914, DD. 99, 110. 2564 (1).
2564 (hh) . Place of meeting. Location of office. [Any domestic society may provide that the meetings of its legislative or governing body may be held in any State, district, province or territory wherein such society has subordinate branches, and all business transacted at such meetings shall be as valid in all respects as if such meetings were held in this State; but its principal office shall be located in this State.]
Acts 1914, DD. 99, lll.
2564 (ii) . No personal liability. [Officers and members of the supreme, grand or any subordinate body of any such incorporated society shall not be individually liable for the payment of any disability or death benefit provided for in the laws and agreements of such society; but the same shall be pay able only out of the funds of such society and in the manner provided by its laws.]
Acts 1914, DD. 99, 111.
2564 (jj ). Waiver of the provisions of the laws. [The constitution and laws of the society may provide that no subordinate body, nor an y of its subordinate officers or members shall have the power or authority to waive any of the provisions of the laws and constitution of the society, and the same shall be binding on the

1)0

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society and each and every member thereof and on all beneficiaries of members.]
Acts 1914. PI>. 99. 112.
2564 (kk). Benefit non-attachable. [No money or other benefit, charity or relief or aid to be paid, provided or rendered by any such so<;iety shall be liable to attachment, garnishment or other process, or be seized, taken, appropriated or applied by any legal or equitable process or operation of law to pay any debt or liability of a member or beneficiary, or any other person who may have a right thereunder, either before or after payment.]
Acts 1914. pp, 99. 112.
2564 (ll) . Constitution and laws . Amendment. [Every society transacting business under this law shall file with the insurance commissioner a duly certified copy of all amendments of or additions to its constitution and laws within ninety days after the enactment of the same. Printed copies of the constitution and laws as amended, changed or added to, certified by the secretary or corresponding officer of the society, shall be prima facie evidence of the legal adoption thereof.]
Acts 1914. PI>. 99-112.
2564 (mm). Annual report. [Every society transacting business in this State shall annually, on or before the first day of March, file with the insurance commissioner in such form as he may require, a statement under oath of its president and secretary or corresponding officers of its condition and standing on the thirty-first day of December next preceding, and of its transactions for the year ending on that date, and also shall furnish such other information as the commissioner may deem necessary to a proper exhibit of its business .and plan of working. The commissioner may at other times require any further statement he may deem necessary to be made relating to such society. In addition to the annual report herein required, each society shall annually report to the commissioner a valuation of its certificates in force on December Jist, last preceding; excluding ~hose issued

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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 midyear value of the promised benefits, provided in the constitution and laws of such ~ociety under certificates then subject to valuation; and as contingent assets, the present mid-year value of.the future net contributions provided in the constitution arid 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 compu.ted in case of monthly contributions, may be the mean of the terminal values for the end of the preceding and of the current insurance years. Such valuation shall be certified by a competent accountant or actuary, or at the request and expense of the society, verified by the actuary of the department of insurance of the home State of the society, and shall be filed with the commissioner within ninety days after the submission of the last preceding annual report. The legal minimum standard of valuation for all certificates, except for disability benefits, shall be the national fraternal congress.* 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 ow.n experience of at least twenty years and covering not less than one hundred thousand lives with interest assumption not more than four per centum per annum. Each such valuation report 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
*The sentence ends thus in the enrolled Act.

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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 sol vent so long as the funds in its possession are equal to or in excess of its matured liabilities. (See second paragraph, 2564 (y). Beginning with the year 1914 a report 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 Ist 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'sofficial paper and the issue containing the. same mailed to each beneficiary member of the society. The laws of such society shall provide that if the stated periodical contributions of the members are insufficient to pay 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 members to meet such deficiency; and such laws may provide that, upon the 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. :p:p. 99, 112.
~ 2564 (g ) .
2564 (nn). Provisions to insure future secU1-ity. [If the valuation of the certificates, as hereinbefore provided, on December 31, 191 7, shall show that the present value of future net contributions together with the admitted assets is less than the present value of the promised benefits, and accrued liabilities, such society shall thereafter maintain said financial condition at each succeeding triennial valuation in respect of the degree of deficiency as shown in the valuation as of December Jist, 1917. If at any succeeding triennial valuation such society does not show at least the same condition, the commissioner shall direct that it

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I 53

thereafter comply with the requirements herein specified. If the next succeeding triennial valuation after the receipt of such notice shall show that the society has failed to maintain the condition required herein, the commissioner may in the absence of good cause shown for such failure, institute proceedings for the dissolution of such society, in accordance with the provisions of Section 25.64 (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 3 Ist, I 9I7, not to have maintained the condition herein required, shall within two years thereafter, make such improvement as to show a percentage of deficiency not greater than as of December 3 Ist, I 9I7, or thereafter, as to all new members admitted, be subject so far as stated rates of contribution are concerned to the provisions of Section 2564 (bb), applicable in the organization of new societies; provided that the net mortuary or beneficiary contributions and funds of such new members shall be kept separate and apart from the 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 valued as an independent society in respect of contributions and funds.]
Acts 1914. I>I>. 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 contributed for each year and with interest at approximately the net rate earned and by charging him with his share of the lo~ses 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 of risk during each year, which shall be the amount pay-

154

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able at death less the credit to the member. Except as specifically provided in its articles or laws or contracts no charge shall be carried forward from the first valuation hereunder against any member for any past share of losses exceeding the contributions and credit. If after the first valuation, any member's share of losses for any year exceeds his credit including the contribution for the year, the contribution shall be increased to. cover his share of th e losses. Any such excess share of losses chargeable to any member may be paid out of a fund or contributions especiall y created or required for such purposes. Any member may transfer to any plan adopted by the society with net rates on which tabular reserves are maintained and on such transfer shall be entitled to make such application of his credit as provided in the laws of the society. Certificates issued re-rated, or 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 section a deficienc y in reserve shall be shown for any such certificate, the same shall be valued on the 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 reserve or from increased contributions or by an increase in the number of assessments applied to the society as a whole or to classes of members as may be specified in its laws. Savings from a lower amount of death 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 and the required reserve accumulation of such class so set apart shall not thereafter be mingled with the assets of other classes of the society. A table showing the credits to individual!members for each age and

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I 55

year of entry and showing opposite each credit the tabular reserve required on the whole life or other plan of insurance specified in the contract, according to assumptions for mortality and interest recognized by the laws 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 and giving the tabular reserve and level rate required for a transfer carrying out the plan of insurance specified in the contract. No table or statement need be made or furnished where the reserves are maintained on the tabular basis. For this purpose, individual bookkeeping accounts for each member shall not be required and all calculations may be mad~ by actuarial methods. Nothing herein contained shall prevent the maintenance of such surplus over and above the credits on the accumulation basis and the reserves on the tabular basis as the society may provide by or pursuant to its laws; nor be construed as giving to the individual member any right or claim to any such. reserve or credit 9ther than in manner as expressed in the contract and its laws nor as making any such reserve or credits a liability in determining the legal solvency of the society.]
Acts 1914, pp. 99, 115.

2564 (pp). Examination of domestic soctetzes . [The insurance commissioner, or any person he may appoint shall have the power of visitation and examination into the affairs of any domestic society. He may employ assistants for the purpose of such examination, 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 examine its officers, agents and employees or other persons in relation to the affairs, transactions and condition of the society. The expense of such examination shall be paid by the society examined, upon statement furnished by the insurance commissioner and the examination shall be made at least once in three years. Whenever after examination the

I 54

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able at death less the credit to the member. Except as specifically provided in its articles or laws or contracts no charge shall be carried forward from the first valuation hereunder against any member for any past share of losses exceeding the contributions and credit. If after the first valuation, any member's share of losses for any year exceeds his credit including the contribution 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 especially created or required for such purposes. Any member may transfer to any plan adopted by the society with net rates on which tabular reserves are maintained and on such transfer shall be entitled to make such application of his credit as provided in the Iaws of the society. Certificates issued re-rated, or 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 section a deficiency in reserve shall be shown for any such certificate, the same shall be valued on the 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 reserve or from increased contributions or by an increase in the number of assessments applied to the society as a whole or to classes of members as may be specified in its laws. Savings from a lower amount of death 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 and the required reserve accumulation of such class so set apart shall not thereafter be mingled with the assets of other classes of the society. A table showing the credits to individual!members for each age and

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155

year of entry and showing opposite each credit the tabular reserve required on the whole life or other plan of insurance specifi ed in the contract, according to assumptions for mortality and interest recognized by the laws 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 Ist of each year. In lieu of the aforesaid statement there may be furnished to each member within the same time a statement giving the tredit for such .member and giving the tabular reserve and level rate required for a transfer carrying out the plan of insurance specified in the contract. No table or statement need be made or furnished where the reserves are maintained on the tabular basis. For this purpose, individual bookkeeping accounts for each member shall not be required and all calculations may be madt;: by actuarial methods. Nothing herein contained shall prevent the maintenance of such surplus over and above the credits on the accumulation basis and the reserves on the tabular basis as the society may provide by or pursuant to its laws; nor be construed as giving to the individual member any right or claim to any such. reserve or credit 9ther than in manner as expressed in the contract and its laws nor as making any such reserve or credits a liability in determining the legal solvency of the society .]
Acts 1914. PP. 99. 115.

2564 (pp). Examination of domestic soczetzes . [The insurance commissioner, or any person he may appoint shall have the power of visitation and examination into the affairs of any domestic society. He may employ assistants for the purpose of such examination, 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 examine its officers, agents and employees or other persons in relation to the affairs, transactions and condition of the society. The expense of such examination shall be paid by the society examined, upon statement furnished by the insurance commissioner and the examination shall be made at least once in three years. Whenever after examination the

2564 (tt). Revocaiion of license. [When the insurance

commissioner on investigation is satisfied that any foreign society

transacting business under this law has exceeded its powers, or has

failed to comply with any provisions of this law, or is conducting

business fraudulently, or is not carrying out its contracts in good

faith he shall notify the society of his findings and state in writing

the grounds of his dissatisfaction and after reasonable notice

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 d0es not present.good and sufficient reasons why its a~thority to transact business in.this State, should

not at that time be revoked, he may revoke the authority of the

societ y to continue business in this State. All decisions and find-

ings 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 (mJ. 2564 (o).

2564 (uu). E xemption of certain soctettes. [Nothing contained in this Act shall be construed to affect or apply to grand or subordinat ;: lodges of Masons, Odd Fellows, or Knights of Pythias (exclusive of the insurance departmen't 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 societies which limi't their membe~ship 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 in 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, business house, or corporation, nor to

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159

domestic lodges, orders or associations of a purely religious, charitable and benevolent description, which do not provide for a death benefit of more than one hundred dollars or for disability benefits of more than one hundred and fifty dollars to any one person in any one year. The insurance commissioner may require from any society such information as will enable him to determine whether such society is exempt from the provisions of this law. Any fraternal benefit society, heretofore organized and incorporated and operating within the definitions set forth in Sections 2564 (q), 2564 (r), and 2564 '(s), providing for benefits in case of death or disability resulting 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 provisions and regulations of this law except that the provisions of this law requiring medical examinations, valuations of benefit certificates, and that the certificate shall specify the amount of benefits, shall not apply to such scx;:iety.)
Acts 1914, :p:p. 99. 120.
~ 2461.
2004 (d ) . (g). (k). (1).

2564 (vv). Taxation. [Every fraternal benefit society organized or licensed under this law is hereby declared to be a charitable and benevolent institution, 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. :p:p. 99. 121. 998. 6554, 6556.

2564 (ww). Penalties. [Any person, officer, member or examining physician of any society authorized to do business under this law, who shall knowingly or wilfully make any false or fraudulent statement or representation in or with reference to any application for membership, or for the purpose of obtaining mo~ey from or benefit in any society transacting business under this law, shall be guilty of misdemeanor, and upon conviction thereof

16o

}NSU.RANCE LAWS

shall be punished by a fine of not less than one .hundred dollars nor more than five hundred dollars or imprisonmen~ 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 declaration under oath required 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 relation to the crime of perjury. Any person, who shall solicit membership for, or in any manner assist in procuring membership in any fraternal benefit society not licensed to do business in this State, or who shall solicit membership for, or in any manner assist in procuring membership in any such society not authorized as herein provided, to do business as herein defined in this State, shall be guilty of a misdemeanor and upon conviction thereof shall be punished by a fine of not less than fifty dollars nor more than two hundred dollars. Any societ y, 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 whi ch neglect, refusal or violation is not specified in this section, shall be fined not exceed ing two hundred dollars upon conviction thereof.] .
Acts 1914, 1>1>. 99, 121.
H 259, 260. 630 (a ) , P. 0.

2564 (xx). Applicable to what societies. [The prov1s1ons of this law shall not appl y to fraternal benefit societies whose membership does not exceed five thousand members and all societies writing insurance for the employees of the Federal gov. ernment and public utility companies shall come within the provisions of this law.]
Acts 1914, 1>1>. 99, 122. See Note to ~ (bb).

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2564 (yy). Rules and regulations by insurance commts :rioner. [All such societies and organizations as are mentioned in this law shall be subject to such rules and regulations as may be prescribed by the insurance commissioner of the State.]
Acts 1914. vv. 99. 123.
2564 (zz). Certificates to persons under I6 years of age. Any fraternal benefit society may issue to persons under sixteen years of age benefit certificates, provided such persons are related to a member of said society as son, daughter, ward, stepson, step-daughter or shall be dependent upon a member; provided, however, the amount of death benefi t payable under t he 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 I and 2 years__________ $ 3500 Between the ages of 2 and 3 years __________ 3900
Between the ages of 3 and 4 years__________ 4500 Between the ages of 4 and 5 years__________ 50.00 Between the ages of 5 and 6 years__________ 6o.oo Between the ages of 6 and 7 years__________ I50.00
Between the ages of 7 and . 8 years__________ 17500
Between the ages of 8 and 9 years ________ __ 2oo:oo
Between t he ages of 9 and IO years_____ ___ __ 2)0.00
Between the ages of IO and I I years__________ 350.00
Between the ages of I I and I 2 years __________ 380.00
Between the ages of I2 and I3 years_________ _ 460.00

- Between the ages of 13 and 14 years ___ _______ $ -6oo.oo
Between the ages of 14 and 16 years __________ 1000.00 --
Acts 1917, p, 102.
2564 (aaa). Premiums, how based. Thtperiodical dues _.or premiums charged for the benefits in such certific~tes of-mem;bership must be based upon some recognized mortali-ty -tal;>le the , premium in which is not less than the National Fraternal Con_gress Tables of Mortality and in interest assumption of four per centum per annum, or upon a table of the actual experience of at Jeast twenty years of any similar society compiled from a member.ship of not less than one hundred thousand members.
Acts 1917, v.103, Park's Annot. Code. Vol. 8.
2564 (bbb) . Benefit certificates in classes . 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 its laws and certificates for the payments of benefits from special funds created for such purposes to the oldest membership of a division and class upon the death of a member in the same division and class.
Acts 1917, p , 103. Park's Annot. Code. Vol. 8.
2564 (ccc). Premiums, how based. The periodical dues or premium charges for 'such benefits shall be based upon the National Fraternal Congress Tables of Mortality and a four per centum per annual interest assumption, or upon some higher standard. The method of determining the dues or premium charges shall be the joint life plan at equal ages, and shall be so computed that each member's dues 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 in such certificate in event of the death of the member

INSURANCE LAWS
and the other benefits provided for in the certificates of membership.
Acts 1917, D. 103, Park's Annot. Code, Vol. 8.
2564 (ddd), (eee), (fff) and (ggg) relate to deposits of insurance companies, and are inserted between Sections 2427 and 2428. (See pp. 47 and 48 .)

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r6s

INSURANCE AND INSURANCE COMPANIES
General Statutes

SECTION 1.

Incorporation of Insurance Companies _____ _____ ___________ __ _ Charters to Insurance Companies__ ____ ________________ ______ _2388 Formation of Company and Petition __________________________ 2389
Form of Certificate to be Issued------ ------- ---- ------------ -2390 Corporate Powers----- ----- ------------------------- -------2391 Fee----------------------------- -- ------------------------2392 Certificate prima facie evidence of Corporation's Existence__ ___ ______ 2393 Capital Stock__ _____ -------- ____ __--- ------- _____ __ ___ ----- 2394
Organization------- --------- ------- --------- --- ------------2395 Directors of Life Insurance Companies ________________________ 2395 Stock to be paid in before beginning business _____________ _________ 2396 Stock may be increased or decre&ied _______ ___ ______ ____ ______ 2397
Stock deemed personalty ________ ----- - __ -- - ------- __ ------- 2398 Powers of Life Insurance Companies ______________________________ 2400
Of Fire Insurance Companies _______ ______ _______ ____________ 2401 Additional Risks of Fire Insurance Companies_____ _____________ 2401 (a) Of Accident Insurance Companies ___ ------ --- ________________ 2402 Of Live Stock Insurance Companies------- ~ ------ --- ---------2403 Contracts to be evidenced by poliCY--- ---------- ------------------2404 Dividends------- ---------- ------ ------------------ - ------- 2405 StockDividends----- - ----------- ---- ------- -- --- ----------- 2406 Participation by policyholders, net profits _________________________ 2407 Insurance Companies Investments by ___ ________ _____________ _ Investments by Insurance Companies _______________ ~ _________ 2409 (a) Building which may be owned by corporation __________________ 2409 (a) Reinsurance and Reserve __ __________________________________ 2410 Liability of Stockholders___________________ --- ____ ---- __ ---_ 2411
SECTION 1 (a).
Insurance Department--- ---------- ----------------- ------- Officers of Department, Seal, Records, Reports_________ __ __________ 2412 (a)
Compensation of Officers ______ --------------------------- ___ 2412 (b) Appropriations for payment of salaries-----------------------_ 2412 (c) Collection Fees and Taxes---- ------ --- - -------------------- - 2412 (d) Fees, Taxes________________ ----- ____ --- - ---- ____ --------- __ 2412 (e)

166.

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Examination of Insurance Companies ______________ ___________ ____2412 (f) Orders, how enforced ___ _________ ______ ___ ________ _____ ____ __ 2412 (g)
Blank forms furnished for reports _____ _______ ___ ____ ____ __ _____ ___ 2412 (h) Additional Rules and Regulations _____ _____ _________ ___ ____ __ 2412 (i)
Supervision of companies before organization___ _______ _____ __ __ ____ 2412 (j) Fire Inspector and Assistant. Duties and Powers ____ __________ 2412 (k) Inspector's authority to go upon premises ____ ____ ___ ___ __ ____ _2412 (I) Inspector's compensation ____ __________ ______ ____ ___________ _2412 (m)
Organization and regulation of Mutual or Co-operative Fire Insurance Companies ____ ______ ____ _____ _________ __ ___ _2412 (1 to 19)
Officers or directors may advance money _____ __ _______________ 2412 (14)

SECTION 2.
Insurance Companies, How Authorized to do Business ____ _____ _ Insurance Commissioner____ ______ _______ -------- ____ ___ ____ _2413 Companies must be licensed _____ ______ _____ __ _____ __ ________ 2414 License, How Obtained ____ ___ ___ ____ ___ __ _____ ______ ________ 2415 Issuing of License __ ___ ___ ________________ __ ______ ____ ______2415 (a) Revocation of License __________ ____ ____ ___ __ __ ___ _______ ____2415 (b) Forfeiture of License __ ______ ___ __ __ ________ _____ _____ ____ ___ 2416 Forfeited License, how renewed _____ _________ ___ ____ - ---- ____ 2417 Revocation of License for failure to pay judgment_ _____ ____ _2417 (a) to (c)
SECTION 3.
Bond and Deposit Required - --- -- - - - ---- ---- - ------- - -- -- --Transact Business, when _____ ____ ________ _- ---- ________ _---- 2418 Semi-annual Statements required ___ ____ ___ __________________ _2419 Deposits by Companies of other States__ __ ___ ___ ________ __ ____ 2419 When notice of loss is given, bonds to be retained ___ ________ ____ 2420 Bond by receiver ___ ______ __ _____ ____ ______ _______________ __2421 Conflicting claims to bonds ___ ____________ __________ __ ______ _2422 Withdrawal by company from the State ___ __ ____________ ______ 2423 Withdrawal of Fire Insurance Companies ______ ___ ________ ___ __2423 (a) When amount reduced below, amount required___ ____________ __ 2424 Policies must be satisfied before withdrawaL ________ ___ ______ _2425 Deposit required of Domestic Mutual Fire Insurance Companies__ 2425 (a) Amount of aBsets required, Emergency Clause __ __ __ _____ __ ____ _2425 (b) Emergency Clauses eliminated ____ __________ _____ -- __ ___ ___ __ 2425 (b) Deposits of Life and Accident Companies of other States __ ___ ___ 2426 Of Home Cornpanies- - ----- ---------- - - -- - -- -- ----- - -- ---- - - 2427 Deposit by Life or Casualty Companies _____ ________ ___ _2564 (dddt.oggg) Measure of the required deposit_ __ ____ ______ __---- - ____ ____ __2428 Certificate by Insurance Companies___ ____ _____ ___ - -- ___ - ___ - - 2429

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Effect of failure to make deposit ____ ___ ____ _____ ------~ ______ 2430 Change of securities deposited ___________ ___ _____ __ ______ ____2431 Approval of deposits ___ ___ __ _____ __ ___ -- - - __ __________ ___ ___ 2432
SECTION 4. Regulation of Insurance Companies_____ __ ___ __ _______ ___ ____ _
Investigation by Commissioner __ _____________________ _____ ___ 2433 Calculation of Reinsurance Reserve ____ _____ ________ ___ ___ ____ 2434 Call on Stockholders_____ -~ __________________ ____ ___ _____ ___ 2435 Calculations of Reinsurance Reserve by Commissioners of other
States---- -- - ---------------- ---------- ---------------2436 Proceedings when home companies are insolvent_ ______________ _2437 Calculation of Net Value of Life Policies. __ ____________ ____ __2438 Where net value of policies is not on hand __ __________ ______ ___ 2439 Valuation by Commissioner of other States ____________________ 2440 Commissions on sale of stock, and sale of Life Insurance Policies
and Agency Contracts _____ ______ _______________________ 2440 (a) Rebates and Discriminatory Contracts prohibited___ __ ________ __ 2440 (b)
SECTION 5.
Proceedings in Case of Insolvency ____________ - -------------- Proceedings where home companies fail to maintain standard ____ 2441 If Comptroller knows of insolvency __ ________ ________________ 2442
SECTION 5 (a).
Commissioner Taking Control of Property and Business of Life Insurance CompanY-- ----------------------- -- ----------
Proceedings to take controL ________ ___________________ _____ _2442 (a) Injunction Hearing and Order___________________ ____ ______ ___ 2442 (b) Liquidation __ __ _____________________________ ___ _____ __ __ __ 2442 (c) Assistants and their compensation __ ___________ __ ______ ___ ____ 2442 (d) Rules and Regulations . ______________________ __ ____________ _2442 (e) Report of Commissioners _____________ _______________ _____ ___ 2442 (f)
SECTION 5 (h).
Receivers for Insurance Companies _ -- - ---------~----------- Method of putting Companies in hands of Receivers ___ ____ _____ 2442 (g)
SECTION 6.
Agents of Insurance Company _____ _---- - - ------------------ Definition of Insurance Agent______________ _____ ____ ________ _2443

168

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Penalty on agents of unauthorized companies ___ _______________ 2444 Civil Liability _____ ____ ___ _______ ________ __ _____ __________ __ 2445 Agent's License ___ ____ _____________________________________ 2445 (a)
Requisites to Obtain License-Revocation __ ______ __________ __ _2445 (b) Statement showing agents ________ __________ ____ _____________ 2445 (c)
Corporations soliciting or writing Life Insurance________________ 2445 (d) False Representation UnlawfuL ____ ___________ ------ _________ 2445 (e) Service on Non-Resident Companies . ___________ _____ __ _______ 2446 Attorney may be appointed to receive service_______________ __ __ 2447 Company not complying, Fees, etc. __ ______________________ __ 2448
Definitions of Fire and Casualty Insurance Agents and their licenses ________ ______ ____________ ____ _______________ 2448 (a) to (j)

SECTION 7.
Comity to Foreign Insurance Companies ______________________ _ When charges on companies of this State greater than imposed by this State-- - - --- ------------------------------------ - 2449
SECTION 8.
Assessment and other companies reports_______________ --- _______ __ 2450 Life Insurance on assessment plan ___ __ _______________________ 2451 Policies and Certificates. ______________________ --- __ ---- _____ 2452 Reserve ____ ______________________ _________________________ 2453
Societies to which this applies______ ________ --- ______ ____ _____ 2454 On assessment plan; policies, how written _____________ _______ _2455 Life Insurance on Mutual Plan, regulations and requirements ___ _2455 (a) Licenses to Agents of Assessment Companies___________________ 2456 Penalty for fraudulently procuring insurance _____ ____ __________ 2457 Annual Report of Business______ _____ ________ _________ ______ - 2458 Taxes and Fees to be paid __________ _________________________ 2459 Failure to make such report or pay tax__________ _--- __________ 2460 Exemption of Fraternal, Secret and Industrial Societies _________ 2461 License of Fidelity Companies ______ _______________ -- -- _______ 2462 Live Stock and ~am Boiler Insurance, companies subject. ___ -_ 2463 Commissioner and inspectors may administer oaths_____________ 2464 Law applicable to individuals __________________ ----- __ - -- ---_ 2465

SECTION 9. Pooling ___ ______________________ _______ ___ _____________ __ _
Unlawful for companies to make contracts affecting competition. - 2466 Complaints by citizens and citation ________ ____ -- --------- -- __ 2467 Practice as to testimony______________ : __ --'- -- _________ ------- ___ 2468 Forum _________________________ __ ________ __ ___ ___ __ ______ _2469

INSURANCE LAWS
SECTION 10.
Flre Insurance Contracts _____________ _____ ______ _____ _____ __ Contract of Flre Insurance __ ____ _____ ___ ______ __ ___________ __2470 Standard form of Policy for Fire Insurance _____ _____________ __2470 (a) Policies must contain the entire contract _______ ____ ____ __ _____ 2471 Interest of assured,._____________ ___ ___ _______ ___ _____________ 2472 Insuring interest of another____________ ____ __________________ 2473 Insurance on changing property ___ ______ - -- - __ __- - -------- ___ 2474 Construction____________ ____ __ ___ ___ ________ ____ ___________ 2475 LOBB, what is__ __________ _- - - ___ __ ---- _________ __ _____ ___ --- 2476 Umpire to appraise loss, appointment notice and service ____ _____ 2476 (a) Contrary stipulation void_____ ___ _____ _____ ____ ____ __ ______ __ 2476 (b) LOBB unknown to the parties __ ____________ ________________ ___ 2477 ])i!igence by assured ____ ___________ __ __________________ _____ 2478 Application, good faith __ --- _________________________ --- ____ _2479 Effect of misrepresentation ___________ _______ ____ ---- __ __ ____ 2480 Concealment__________ _____________________ _____ ______ ___ __ 2481 Increasing Risk _____ _____ ____ ____ ___ ________ __________ ____ _2482 Wilful misrepresentation voids policy ___ __________ _______ __ ___ 2483 Effect of alienation _____ ___ __ _______ _____ __ ___ ____ -- ______ __2484 Transfer to one of severaL _______________ __ ____ __ __ _______ __2485 Partial Sale __ ~ __ ----- __ __ ___ ----- __------ __ ---- ______ ___ _-- 2486 Transfer after loss __ __ _______________ ___ ____ ________ ____ ____ 2487 Or by operation of law _____ ________ ______________ ________ ___ 2488 Secondinsurance _______ ___ _________ __ ___________ __ __ _______ 2489
Prescribing Regulations ____ _--- --- _____ __ ---- - -- ____ _------_ 2490
SECTION 11.
Flre and Casualty Insurance Companies __ __ ________ ____ ___ ___ _ Regulating business of Fire and Casualty Insurance Companies ___ 2491 Affidavit of President or Chief Officer_______ _________ _________ 2492 Investigation of Complaint of Violations of Law_____ ___ __ __ ____ 2493 Forfeiture of right to do business ____ ______ _________ __________ 2494 Failure to pay expense of examination __ ___ ---- ____ __ _________ _2495 Casualty Insurance Regulated__ __ _____ ____ __ ___________ ______ 2495 (a) Reserve for losses__________________________________________ _2495 (b) ])efinitions _____________________ ______ _-- ---- __---- - __----- 2495 (c) ])istribution of payments; reserves________ ____________________ 2495 (d) Schedule of experience ________ _____ _______________ _______ __ _2495 (e) Unearned premium reserve___ __ ______ ______ -------- - __ ------ - 2495 (f) Revocation of license for non-payment of judgment- following ___ 2495 (f)

INSURANCE LAWS
SECTION 12.
Life Insurance __ __ ___ ________ ___ __ _____________ ___________ _ Contract of Life Insurance___ _______ ____ ___ _____ ____ ___ ______2496 By whom taken _______________ _________________ ___ ______ ___ 2497 To whom to be paid __ _______________ ________ _____ ___ _______ 2498 Law of Fire Insurance applicable ________________ __ ________ ___2499 Medical Examinations _______ ___ _____ __ ___ ________________ __ 2499 (a) Self-caused death releases insurer_________ ------ - ____ _________ 2500 Time, how counted _______ _______ ___ __ ___ ______ _____________ 2501
SECTION 13.
Industrial Life Insurance __ _____________________________ ____ _ Industrial Life Insurance defined ___ ____ __ __ ________ __________ 2502 Companies of that character ___________ ______________________ 2503 Requirements _____ __ ____ _____ __ ___ __ ______ __ ____ ! ___ _______ 2504 Deposits by____ ______ _______ ________ ___ ______ ___ ___ 2505 and 2564 (fff) Companies subject to this law_________ __ _____________________ 2506
VVhenlaws applY- - --------------- - --- -- -- ------------ - ---- - 2507 Solvent assets, amount of_ __ _______ _____ ___ __ __ __ __ __ ___ _____ 2508 Examinations by Insurance Commissioner_ __ _________________ _2514 Income or guaranty certificates---- --- --- - ------ --- - ---- ~ --- - - 2514 (a) Incorporation of industrial companies rights and powers, deposits__ 2514 (b) VVhen authorized to do ordinary Life Insurance Business --- - --~ --2514 (c) Mutual companies may become stock companies__ ___ ____ __ _____ 2514 (d) Regulation of Mutual Assessmt>nt Companies __ __ _________ _.____ 2514 (e) False represent!ltions in regard to policies prohibited __ --- - - - __ c _ 2514 (f) Receiving premium after insolvency, fraudulent reinstatement_ ___2514 (g) Fraudulent statement and claims prohibited ______ __ ____ _______ 2514 (h) Agent or solicitor required to procure license _______ ___ _______ __2514 (i) Powers of Insurance Commissioner or Deputy___ ________ ___ ____ 2514 (j)
SECTION 14.
Marine Insurance___ _______ _____ _____ _________ ____ _____ ____ _ Contract of Marine Insurance___ -- ________________ - --- __ _____ 2515 Unlawful commerce ________________ _____________ ___ - -- _____ _2516 .Doubleinsurance ________ ___ ____________ ____ _____________ ___ 2517 Implied warranty______ _________ __ ___ - -- ---- __- -- __ - - __ _____ 2518 Illegal voyage.. ____ ___ _______ ___ ___---- --- ____ ___ --- - __ ----- 2519 Deviation __ ____ __________ _____------ __ - ___ --- -- ---- --- - -- - 2520 Perils of the sea __________ __ _________ - -- __ ___ __ __ __________ 2521 Continuance of risk ___ _________ ____ - - - __ ----_---- ___________ 2522 Increase of risk___________ ____ __ ___ __________ ________ -~- ____ 2523

INSURANCE LAWS
Open policY----- ---------------- - ------ ----------------- - .2524 Value, how ascertained... ________________________ - ---- ______ 2525 Former rules applicable. ____ __________ __ ____________________ 2526 Rights of owners of merchandise on vessels _______ ___ __________ 2527 Owner or master of vessel must care for damaged property_______ 2528
SECTION 15. ~utual Insurance ___ ______________________________________ _
Contract of ~utual Insurance___ ____ ______________ ___________ 2529 By-Laws ___ __ ____ __________ _____________________________ __ 2530 Officers agents of all. ___ __ _______________ _______ _________ ___ 2531 Liability for reducing funds. __ ___ ___________ __ _____ __________ 2532 Stricter good faith required. ___ ________________________ -- - - -_ 2533 Agencies of foreign companies to be Jicensed ______ ____ _________ 2534
SECTION 16.
~utual Companies Insuring Against Loss by Burglary _________ _ When to be licensed. ___ _____________ ___ ____________________ 2535 Prerequisites to obtaining license . ____ _____ ____ ____ __ _________ 2536 Copy of charter and statement of condition to be filed __ __ ___ ___ 2537 Statement to be renewed. __ __ ___ ____ ___ ___________________ __2538 Certificate of authority before doing business. _______ __________ 2539 Line of business and reinsurance reserve _______________ ______ __ 2540 ~embership fee and premium _________ __________________ _____ 2541 Service on appointed attorney and otherwise __-__ __ ________ _____ 2542 PenaltY - ----- ----------------------------- --- - - - --- ----- - - 2543
SECTION 17.
Amount of Recovery and Damages . _______ __ ____ _______ ___ ___ Amount of recovery_______________________ _______ __________ _2544 Valuedpolicy... -- ---- -- - -- ------- - ------------ ------ ------ 2545 Estimation of value. __ ____ __________ __ __ ______ __ ______ ---- __2546 Privilege qf Rebuilding . ____ __ ______ _____ ----- ___ _______ --- __ 2547 Recovery back of insurer __ ___ ____ _____________ __ ___ _________ 2548 Insurance companies shall pay dama.ges, when __________________ 2549
SECTION 18.
Fidelity Insurance _____________________ __ _____ __ __ _~ _---.-- __
What companies may become sureties on bon<II! ___ ___ __________ 2551
Estopped to deny corporate power _____________ _________ ___ ___ 2552 Venue of suits on such bonds_______ ________________ __________ 2553

I NSU RA NCE L AW S
Peposit required. _________ ________ ______ - - ----- __ ______ __ __ 2553 (a) Bonds of City, County and State officers ____ __ ______ _______ ___2554 ~ttach mentBonds ___ ___ _____ ____ ________ __ : __ ____ ________ _2555 Remedies in case of defaults ____ ____________ ________ _________ 2556 Deposit to be made before becoming security ____ ___________ ___ 2557 Collection of coupons, faith of the State. ______ _____ __ ______ __ _2558 Proceedings when lose occurs, Receiver _______ _____ ___ ______ __ _2559 When excese of bonds shall be returned. ____ ______ _________ ___ 2560 When a company desires t o withdraw from t he State___ ______ ___ 2561 Withdrawal of deposit by retiring company, how accomplished,
condit ions specified __ _______ __ ______ ___ _______ ___ ___ ____2561 (a) Order t o Treasurer to surrender bonds _____ _______ ___________ _2561 (b) Liability. Notice of suit. Judgment Defense. Subrogation,
Reimbursement_ ____ _____ __ ______ ____ _____ -- -- - _____ ___ 2561 (c) ~ount of bonds must be maintained______ ______ _________ ____ 2562 Contracts of suretyship between common-carriers and their em-
ployees ___ ______ ___ ___ ____ ______ _____ __ __ __ ___ ______ __ _2562 (a) Cancellat ion of bond. ________________________________ ______ ____ _2562 (b)
SECTION 19.
Suits against Insurance Companies ____ __________ ___ _________ _ Suits against Insurance Companies _____ ___ _______ - -- - - - ---- - - 2563 Service on non-resident assesement Insurance Companies.- ---- - - 2564
SECTION 19 (a).
Fraternal Beneficiary Orders. ______________ -- _______ ______ ___ Defined, t heir composition and powers _____ ____ ___ __ __ ________ 2564 (a) Benefits, Nature oL- - - -- - ------------------ -- - - - --- ------ --2564 (b) ~sements, payments; how funds are derived __ - --------.- - --- 2564 (c) By. what law governed; and exemptions________________ ______ __2564 (d) Existing aseociations reports. __ _____ -- ___________ ___ __ ___ __ __ 2564 (e) Aseociations of other states ___ _____ _______________ __ ___ ____ __2564 (f) Reports ; how and when made __ ___ ____ ____ ________ ___ __ ______ 2564 (g) Reports, penalty for failure to make ____ _____ __ ______ ______ ____ 2564 (h) Service on such associations___ ______________ __ ___________ ____ 2564 (i) Record of suits. _____ _______ ____ _____ _____ ___ __ _____ _____ __ _2564 (j) Not applicable to certain orders named__ _____________ __ ____ ___ 2564 (k) Non-Resident Fraternal orders; how entered in Georgia _____ ___ _2564 (1) License and fee. ______ - ---- --- - ____ ____ ___ _- --------- - - - ___ 2564 (m) Incorporation of Domestic Fraternal Orders___ ____ _------ ---- __ 2564 (n) License; Regulation for co=encing business ____________ ______ 2564 (o) Form of government_ ____ _____ ___ ______ ~ __ _____ ________ _____ 2564 (p)

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173

SECTION 19 (b) ACTS OF 1924, 1917,!1923.
Regulation of Certain Fraternal Benefit Societies______________ Pagee 112 to 138
Fraternal benefit society defined---------------------------- - 2564 (q) Lodge system defined __ ______ ------------------------------- 2564 (r) Representative form of Government defined____________________ 2564 (s)
Exemptions as to laws______________ ---------------------- 2564 (t)
Benefits------------------------------------------2564 (u) (aaa) (bbb) Payments, Act of Aug., 1917 Beneficiaries_________ -------- ______ ------------------------ 2564 (v) Qualifications for Membership _________________________ ------_ 2564 (w) Certificate______________ -------- _____ __ ___________ 2564 (x) (aaa) (bbb) Funds, how received and disbursed _____ _____ __ ___ ____________ 2564 (y) Investment; class of authorized____ ___ ________________________ 2564 (z)
Distribution of Funds_, _______ -- ----- __ ------------------ __ _2564 (aa) Organization ______ -------------------- --- - - - - -------------2564 (bb) Requiring notice where other names are used after______________ 2564 (bb) Powers retained Reincorporation Amendments ______________ ___ 2564 (cc) Mergers and Transfers __________ ------- ___________ __ ----- ___ 2564 (dd) Annual License___ __________________________________________ 2564 (ee)
Admission of Foreign Society; conditions governing__ ----- __ ____ 2564 (ff) Power of Attorney and Service of Process ______________________ 2564 (gg) Place of meeting, Location of office ______ ----- ________ -- ______ 2564 (hh) No Personal Liability __ _____________________________ ___ ____ 2564 (ii) Waiver of the Provisions of the Laws_________ __ ____ ___________ 2564 (jj) Benefit non-attachable ____________ _________ -- - _____ ------- __ 2564 (kk) Constitution and Laws. Amendments to be filed _______________ 2564 (II) Annual Report_ __ _------- ______________ -.--- __ ----- ________ 2564(mm) Provisions to Insure Future Security __________________________ 2564 (nn)
Provisions in lieu of Requirements of two preceding sections ______ 2564 (oo) Examinations of Domestic Societies___________________________ 2564 (pp) Application for receiver ___ _____________ -- ________ --- -- ______ 2564 (qq) Examination of Foreign Societies ______ ____ ___ ___________ _____ 2564 (rr) No adverse Publication_______ ______________ ----- _______ --- __ 2564 (ss) Revocation of License for cause ______________________________ 2564 (tt) Exemption of certain Societies ___________________________ ____ 2564 (uu) Taxation exemptions________ --_----- __ __ --- ___ --- _____ __- ___ 2564 (vv) Penalties for fraudulent statement as to application___________ __ 2564 (ww) Applicable to what Societies; further exemptions _______________ 2564 (xx) Rules and Regulations by Insurance Commissioner _____________ 2564 (yy) Benefits___ ------- ____________ ___ ____ ______________________ 2564 (zz)
Benefits, Act of Aug., 1917 Basis of Premium charges ____________ ____ ____ ---_------ __ --_ 2564 (ccc)

Index of Provisions of Insurance Laws

ACCIDENT COMPANIES:

Sections

Powers oL ___ _______ _________ ______ __ ________ _- ~ _____ ___ ___ 2402, 2412

Deposits of ______ ___ ____ ____________ _____________ _____ _____ __2426, 2427

ADDITIONAL RULES AND REGULATIONS: Commissioner may prescribe __ __ __________ ________ : _____________ 2412 (i)
ADVANCE OF MONEY TO COMPANIES ___________ _____ ___ ~- --2412 (14)
AFFIDAVIT OF COMPLIANCE: With Resident Agent's Law (No overhead writing) __________ ___ ______ 2492
AGENT : Definition oL __ __ ____ __ ______ __________________ _____ - ~- 2443, 2448 (a-j)
Penalty on Agent of Unauthorized Companies _______________ 2444, 2448 (e) Licenses _______ ___ ___________________ ____________ ___________ _2445 (a)

Statement showing _____ _____________________ ____ _____ _____ ____ 2445 (c)

Agency Qualification-Fire and Casualty-

.

Following Sec. ________________________________ __ 2445 (e), 2448 (a-j)

Qualification of Agents-Fire and CasualtyFollowing Sec.____ ________________ ____ _____ _____ 2445 (e), 2448 (a-j)
Must obtain license _____ ____ -~ _______ --- _____________________ __ 2514 (i)

APPLICATION : Application a part of conLract ___________ __ ___ ___ _____ ____ ____ - ____ 2471 Good faith in making ___ ___ ___ ______ ___ ~ _________ ______ _______ ____ 2479
Misrepresentation in making_____________ __ _______ _____ _______ ____ _2480

Concealment of facts in---- ------------- - ---- ---- - --- - - ~--- - -- -- -- 2481 ASSESSMENT:
Companies _____ ___ ________ ___ _____ ___ ___ ___ ___ __ __ _______ 2450 to 2461

ASSETS : Required of all Companies______ __ __ ____ ____ ___ _____ _____ ________ __ 2418

Solvent Assets of Mutual Aid, Benefit or Industrial Life Companies _____ _____ __________ __ _______ _______ ____ _____ _2508

Of Domestic Mutual Fire Insurance Companies __________ ___ __ ____ 2425 (a)

ASSISTANTS TO COMMISSIONER: Special deputies, counsel, clerks and assistants and their compensation ________________ -- - - -- ------------ __ 2442 (d)
ATTACHMENT BONDS: Companies qualified to write ______ ___ ____________ ____ _______ _____ __2555

ATTORNEY: For Service -- - ------------ ------ ------ ------------------------ - - -2446 Method of appointment, and disqualification__ __ __________ ______ _____ 2447

Unlawful to transact business until appointment oL---------------- - -2542 Method of service (Fraternal Societies)- - -- - ------------------ - --2564 (gg) Met-hod of service .. ___ __________ _______ ___________________ ________ 2564

"INSURANCE LAWS

175

' AUTHORITY OF COMMISSIONER: To prescribe rules and regulations ______ ____ __~ ____ ~ ___ ____ __ __ __ 2442 (e)
To permit other investments __ _______ __ ____ ________ ___ _____________ 2409 To issue subpoenas ________ ___ ______ __ __ ___ _______ ___ ___ _____ __2514 (j)

W ND:

.

Deposit ------- -- ---- -- - - - - - - - - -- - -~- - - - -- -- ------- - - ---- -- ------ 2419
Method to obtain recovery of loss therefrom _______________ 2420, 2421,2422
Conflicting claims to____ _______ ___ ___ _______ ___ _____ ____ ____ __ __ __ 2422
Withdrawal oL _____ _____ ___ _________________ __ - - ~ __ - ~ _2423, 2424, 2425

Required of Domestic Mut ual Fire Insurance Companies____ _______ 2425 (a) Exceptions to requirement oL ---- --- - - - ---- - - ~-- -- - - - - - - - - - -- - - 2425 (a) Order to surrender _________ ____ __ ___________ ____ _________ __ ___2561 (b)

BONDS (Surety) Of public officers ___ _____ __ ___ ___ ---- - - - - __ ____.__! ________________ 2554

Attachment--- ----------------------- - --- - - --- --- - ---- -- ---- ---- -2555 Remedies in case of default on __ ________ ___ __ __- --- - -- - - ---- - - - ----2556 E xcess of, to be returned _________________ _______ ____________ __.__ __ 2560 Cancellation of___ ___ _~ ____________ __ _______ ___ __ ____ ________ __2562 (b)
BO D : To cover expense of investigation of Complaint as to violation of laws___________________ ____ ____ ____ ______ _____ ____ 2493
BUILDI NGS WHICH MAY BE OWNED : By corporation (Limitation) __ ____________________ __ ______ __ ____ ___ 2409
BURGLARY INSURANCE ___ _______ _________ _____ _______ ____ ___ ___ _2535
CALCULATION OF REINSURANCE RESERVE: Fire Insurance Companies __ ___ ______ __ ___-r _ _ _____ _______ _ _ ____ _ __ 2434

CAPITAL STOCK : $100,000 for each class of insurance ($100 for each share). Sale of_ __ __ _____ __ _____ _____ _______ ____ __ _____ _____ _2394
Stock to be properly invested as per provision of Section 2394____ ______2394 Paid in before beginning business $100,000_____ _____ ______ ______ ____ _2396
May be increased or decreased upon approval of Insurance Commissioner__ ___ _____ _____ ___ _____ _______ ______ ___2397

DeemedPersonaltY-- --------- - - - -- --- ---- - - - - - -- -- -- - ----- - ------2398 Investments ____ ___ ____ ____________ ___ _________ _____ _______ _2418, 2394 Impairment_ _____ ______ ______ ____ __ _____ ____ __ ____ __ _____ ________2434

CASUALTY INSURANCE COMPANIES :
Powers of- -- ---- --- - - - -- - - - - -------- - --- - --- - - -- - - --- -- - - - - - -- - - -2402 Revocation of License ___ __ _________ __ ____ ________ ___ _____ following 2495 Mutual or Co-operative ___ _______ _____ _______ ________ _______ ______ 2412 Deposits _______________________________ _______ __ ___ _______ _2426, 2427
Regulating business of; location and countersignature of Agents ___ __ ___2491 No Overhead Writing permitted _______ _______ ________ _____ _______ __2492 Complaint and Investigation ______ ~ ___ ____ __________ __ __ ______ _____ 2493

INSURANCE LAWS
Forfeiture of License. __________________ ------ _____________________ 2494 Expense of Examination_____________________________ -.- ______ __ ___ . 2495 Reserve _____________ _________________ _____________ __ __ _____ __ . 2495 (f)
CAUSES : For taking Control of Life Insurance Companies_________ __________ 2442 (a) For Voiding Policies _____________________________________2476 (b), 2489
CERTIFICATE BY INSURANCE COMMISSIONER: As to Deposit _____________________________________ ______ ________ . 2429
As to Reserve Value ___ ____ ___ ___ ------------- ---------- - ------ ___ 2429 AstoAuthoritY--------------- - ---------- --- -- ------ -------------2429 Of Valuation of Life Policies------------ ------- --------- --- ---- ----2438 Of Authority to Mutual Companies ___________________ ______________ 2539
CHANGE OF VENUE IN SUIT------ ---------- -- ------- -- - -- --- ----2416 CHANGING PROPERTY, INSURANCE ON _________________________ 2474
CHARTERS: To Insurance Companies ___________ ___ - ------ - _____ ___ --- -- - ____ _. 2388
Form of. -------------- --- ----------- -------- ----------------- ---2390 Organization and Co=encement of Business, Charters, etc. __ __ __ _____ 2399 Issued by Secretary of State or Comptroller-GeneraL _________________ 2388
Feefor----- - -- ---------- --------- ------------------- --- ----- ----2392 Charter Certificate evidence of existence----------------- ------ ------2393 Charter of Mutual Companies____ _________ - - ----- __________ __ __ --- _2537 CITATION OF COMPANIES: In case of Complaint by Citizen ----- ----------------- ---- --- -------2467 CIVIL LIABILITY: Of Agents of Unauthorized Companies---------------- --------------2445 COLLECTION: Of Fees and Taxes------ --- ------ -------- ----------- ---------- -2412 (d) Paid into State Treasury. --- ---------- ----- - ----- ------------- -2412 (e) Of Coupons. ---- -- ---- -- ---- ------------------------- ----- --- -- --2558 COMMENCEMENT OF BUSINESS______________________ _____ ___ ___ 2399
COMMISSIONS: Limitation of on Sale of Stock ____________________________ ____ __2440 (a)
On Life Policies, or Agency Contracts, or Sale of Stock ; Forbidden to Officers or Directors________________ __ ___ 2440 (a)
COMMON CARRIERS: Contract of SuretyshiP--- -- ----- ----------- --- ---- -------------2562 (a)
COMPENSATION OF OFFICERS _____________________ ___ ______ __ 2412 (b)
COMPLAINTS AGAINST COMPANIES: ByCitizens.------ - -------- ----- - -- ---- -- ---------- - -------------2467
COMPTROLLER-GENERAL: Is Insurance Commissioner. _____ - - --- __ ---------------------------2413
COMPUTATION OF RESERVE VALUE: Of Life Policies____ ________ ______ __ _____ _______________ - _______ _. 2438

INSURANCE LAWS

177

CONFLICTING CLAIMS TO BONDS _._. ___ _- ---- - ___ _---- _____ ___ _2422 CONTINUANCE OF RISK:
Until Delivery _____ __ _____ __ _____ ____ __ ___ ______ __ __ __ ___ ____ ___ _2522
CONTRACTS TO BE EVIDENCED: By PoliCY-- - --- - ---------------------- -- --- --- ----- --- ---- - -- - ---2404 Policy must contain e~tire contract_ ___ ___ ____ ___ __________ ---- _____ 2404
CONTRARY STIPULATION: "oid______ __ ___________ ___ ___ : __ ______ ___ __ ___________ ______ 2476 (b)
CONTROL : Of Property and Business of Life Insurance Companies, Proceedings for _______ __ ______ ________ _____ ___ _----- -- - -- _2442 (a) Of Companies, Reasons for ______ ________ _______ ____ _________ ___ 2442 (a}
CORPORATE POWERS ________ __ __ ---- __ ---- ____ -- ____ ---- __ -- __ -- _2391 COSTS AND FEES:
For Sheriff and others _________ ______ __ _____ __ ___ _____ _________ __ __ 2469
DAMAGES: Payable for delay in Settlement_ ___ ____ _______ ___ _______ ____ _______ 2549
DEFAULT UPON BOND : Remedies in case oL ______ ___ ___ ____ ___ ____________ _____ ____ __ ____ 2556
DELAY IN SETTLEMENT: Damage for _______ _____ _____ __-- ----- _____ ---- - _____ __ - - - ______ _2549
DEPOSITS : Kinds of securities acceptable ___________ --- ____________ ___--- ______ 2428 By Companies of other States (Fire Insurance) ________ _____ __ ________ 2419
Notice of Loss and Payment of Companies' liabilities from Bond Deposit_ ___ __________ _____ J - 2420 ____ __________________
Of Life and Accident Companies of other States________________ _____ _2426 Of Home Companies______ ______ ________________________________ __ 2427 Bonds may be replaced by others __________________ _____ ____ ___ 2427, 2432 Amount of required deposit __ ___ __ ___ ___ ___ _____ _______________ ____ 2428 Rights of Policyholders to claim _____________ ___ __________ ____ ______ 2428
Of Bonds-- - - --- - -- ---- - ------- --- --- -- - - --- -- - - ---------------- -2419 Bonds must be registered and validated _____--- _______ -- ________ -- __ 2420 Conflicting claims to deposit ________ __ _______ _________________ 2421, 2422 WithdrawaL __ ______________ ___________ ____ _____ __ 2423, 2423 (a), 2425 Amount reduced__________________________ ________ ___________ 2424, 2562
Deposits required of Domestic Industrial, etc._______ ___ 2504, 2514, 2514 (c) Mutual Fire Insurance Companies __ _________ ___ ____ ______ ____ ___ 2425 (a} Industrial Companies of other States______ __ _____ _______ ___________ 2505 Accident and Life Companies of other States___ ___ ___________ ________ 2426 Of Domestic Life Companies (See following 2427) ___ _________ __2564 (ddd) Annual Increases __________ __ __- -------- -- ____ _______________ 2564 (eee} Of Industrial Life Companies ______________ ____ __________ ____ __ 2564 (fff) Accident and Life Companies of Georgia _________________ _________ __ 2427

INS U RA NCE LAWS
Assessment Companies __ ____ ____ ______ ____- - - ____ ________ ___ ______ 2450
Measure of required deposit-- -- - -- ---- -- - - -- --- - - -- - -- --- - -- - - - -- --2428 Failure to make __ ______ _____ __ ___________ _______ __ ______ ___ _____ _2430
Certificate of Deposit and Valuation _____ _____ ____ - --- - _________ __ __2429 Change of Securities _____ ___ __ ____ ____ ___ ___ ____ ______ ______ _____ _2431 Approval of_ ___ ____ ____ __ ____ _____ ____ ___ ______ ___ ______ ___ ___ ___ 2432 D eposit and WithdrawaL ____ __ _____ ___ ____ ____ ___ ____ ______ ___ __ _2450 Surety Companies deposit_ __ __ _- - - - - __ ______ ___ ________ ___ 2553 (a), 2557 Collection of coupons on deposit __ ______ ______ __ _______ ____ ____ ___ __ 2558 Excess of bonds to be returned ______ __ ____ ___ _____ __ ______ ________ _2560 WithdrawaL ________ ______ _____________________ _2561, 2561 (a), 2561 (b)
Of Surety or Bonding Companies- -- -- - - ------- - - ----- - ---- -- -- --2553 (a) Before becoming surety ____ _____ ______ ___-- --- -- _______ ____ ______ _2557 Good faith of State pledged for ___ _____ ____ ____ __ ___ __________2423, 2558 Amount to be maintained ______ __ _____ __ ___ ___ __ ___ ____ ___ ___ ___ ___ 2562
DEPUTY I NSURANCE COMMISSIONER : Appointment and duties ---- -- - --- - -- -- - - ---- -- - ---- --- - - -- - - - - -2412 (a) Salary of_ ____ _______ __ _________ ___ ____ ____ __ ___ ____ __ ____ ____ 2412 (b) Special deputy___ ____________ ___ __ ________ __ _,_ ___ ___ ______ _2442 (d), (f)
DILIGENCE TO PROTECT PROPERTY _______ ______ _____ __ ___ __ ___ 2478
DIRECTORS : Of Life Insurance Companies _____ _______ _______ __ ___ _______ ___ _2395 (a) Number of Directors (any company) __ __ __________ ___ _____ ___ ______ _2395
Who may be-- - -- --- - ------- - ---------- - - - -- --- -- - - -- -- - -- -- ---- -2395 Where resident -- - --- ------- - - -- --- ----- - - - - - - - - - -- --- ----- - -- - -- -2395 Directors forbidden to accept comrnissions_________ _____ _____ ____ _2440 (a)
DISCRIMI NATORY CONTRACTS : Prohibited----- --- - ---- - - ------- - - --- ----- ---- - - -- - -- - - - - - -- --2440 (b)
DIVIDENDS : Must be earned before paid- - - ------- --- - -- - -- - - ---- -- ------ - ---- --2405 Stock Dividends________ ___ ______ __ ___ ___ ____ ________ ____ __ _______ 2406
EMERGENCY CLAUSE ___ _____ _____ ___ _________ ___ __ ______ ___ __ 2425 (b)
E limination of, Act 505, Aug. 19, 1922. No code number. See after Sec. 2425 (b), 2412 (10)
E NFORCEMENT OF ORDERS: By commissioner_____ __ __ ____ ____ _____ _____________ __--- - - ____ 2412 (g)
ESTIMATE OF VALUE OF INSURED PROPERTY _______ __ ___ _____ 2546 ESTIMATE OF DIVIDENDS OR RESULTS FORBIDDEN__ ___ ___ 2514 (f) EVIDENCE OF CORPORATE EXISTENCE __ __ ___________ ______ ___ _2393
EXAMINATIONS : How and when conducted ____ __________ _____ _--- __ ___ ______ ___ _2412 (f) Expense oL _____ _____ ___ ___ __ _______ --- - - __ __--- -- -- __ __ -- - __2412 (f) Commissioner must examine __ _____ ___ - - - ___ ___ -- --- -- - -_ - ---- __ 2412 (f) Duty of Commissioner to examine ____ _______ ___ _______ ____ _______ __2433 Of Industrial Companies __________________ _____ __ ____ ______ _______ 2514

INSURANCE LAWS

179

. EXAMINERS: May administer oaths ______ ~ -- ___________________________________2464
EXEMPTIONS: From organization and other requirements________ : _________ _________ 2412 From requirement of deposit_ _______ ______ ___________ ___________ 2425 (a) From civil liability____ _____ __ ____ ____ __ ____ ~ __ _____ __________ _____ 2445 Laws governing ABSessment Companies______ ________________________ 2454 Of Fraternal, Secret and Industrial Societies______ ___ __ _________ 2461, 2564 From standard Fire Policy form _____ __ ______ _____ ____ _----- - ____ 2470 (a)
EXPENSE: Of investigation of complaint as to violation of Insurance Laws_____ ____ 2493 Failure to pay; proceedings in case oL ___ __________ ____ ___ __________ 2495
EXCESS OF BOND: To be returned . _____ _____ _______ __ ________ ___ __ ___ ______ __ ______ _2560
EXPIRATION OF CHARTER RIGHTS____ - -- _________ ____ __________ 2399
FAILURE TO PAY JUDGMENT: Penalty for _________ _____________ _____________ ____ ____ __ ______ 2417 (a)
FAILURE TO MAKE DEPOSIT: Penalty for __________________ __________ __ ______ _____ __ ________ __ _2430
FALSE REPRESENTATION: As to Policies, unlawfuL __ __ -- __ __ ___ ---- ______________________ 2445 (e) Penalty for_ _____ __ ___ ___________________ ____ ___ ___ __ 2457, 2514 (f), (h)
FARMERS' CO-OPERATIVE COMPANIES or FARMERS' MUTUAL ASSESSMENT COMPANIES:
General Laws applicable ~-- ___ _____ ______________________________ __ 2412 No examination required ___ __________ ___ ______ ___ ______ __ ______ 2412 (f) Organization oL __ ___________________ --- ~ ____ _____ __ .following Sec. 2412 No deposit required ______ . - _____ ________ __ ____ ______ _______ ___ 2425 (a) Fees for annual license __ ______ ______ _______ ____ __ ___ _-- __ ______ __ _2448 Independent Divisions ___ __.______ __________________ ______ _______ __2448 Standard form of policy__________ _______ ____ _____ _____ __ _______ 2470 (a) Mutual Insurance defined __ ___ ______ _____ _____ - - -- _____ __ __ __2529, 2533
FEES: For issuance of Certificate of Incorporation _____ __ ________ ____ ______ _2392
FEES AND TAXES: Collections oL ___ _______________________________ ___ ____ __ 2412 (d and e) Charged various Companies.. ______ ________ ----- __ ___ ______ _____ ___ 2448 Fees for filing Statement of ABSessment Companies ___________ ____ ____ 2459 For Sheriffs, Constables, etc. ___________ ___________ __ _____ __ __ ______ 2469
FIDELITY COMPANIES: Insurance Laws applicable __________________ ____ ___________________ 2462 Contract defined ____ ________ ___ ___ __ _____ __ ______ ______ ___ ---- - - .2550 Surety Companies defined, and their acceptability __ __ __________ __ ____ 2551 Cannot deny power to assume liabilities ________ _______ ____ ______ ___ .2552

r8o

INSURANCE LAWS

Venue of suits on bonds __ ______ ____ ___ ____ _______ _'!. ___ ____ ___ _____ 2553 Deposits required ____ __ __ ___ _____ _______________ ___ ____ ____ ___2553 (a) Bonds of Public Officers. Qualifications for writing ___ _______________ 2554
J!lttachDaent bonds- ----- ---- -- --------- ------ -- ------- - -- -- -- -----2555 Remedies in case of default_ __ ___ _________ ___ ____ ___ ___ - ------ _____ 2556 Deposit prerequisite ___ ______ __ __ ___ ____ ________ --- _____ -- - -- ___ __2557 Collection of coupons ____ _____ _______ ____ ___ ___ - --- __ ______ ___ --- _2558
Receiver, or Proceedings when loss occurs----- ------ - -------- - ------2559 Receiver's Bond ___________ _____ ______ ______ _____ --- -- - - ___ _____ __ 2559 Conflicting claims under Policies ___ __ ____ ________________ -- ________ 2559 Excess of bonds on deposit to be returned ____ __ ______ _______________ 2560
Withdrawal of Company from State- - ---- --------------------- - -- --2561 Withdrawal of deposit_ __ _____ _________ ______ __ ______ _____ _____ 2561 (a) Surrender of deposit by Treasurer ____ ___ __ _________ ___ - - ---- ___ 2561 (b)
LiabilitY--- - --------- ----- -- - - --- --- - ---- --- - - - -- - ----------- -2561 (c) Notice of suiL ----- -- -------------------------- - -- - - -- ----- - - -2561 (c) Judgment-- - ---- - ----- ----- - - - --------- - -------------------- -2561 (c) Defense ___ ____________________________ ___ -.- ____ ___ ________ ___ 2561 (c) Subrogation-Reimbursement____________________________ _______ _2561 (c) J!lmount of Deposit to be maintained_____ _____ _____ __ ________ _______ 2562 Common Carriers cannot specify individuaL _____ ___ _______ ____ ___ 2562 (a)
Cancellation of Bond- - - -- - ----- -- ---- -- -- ---- --- -- ---------- --2562 (b) FIRE INSPECTOR:
Duties and powers__ _____________ _____ __ _________ ---_--_---- ___ 2412 (k) Duties and powers____________ __ ____ __ __ ___ ____ _____ _________ __2412 (I) Compensation __________________________ ___ ___ ____ ___________ _2412 (m) Fire Inspector's Tax _____ _______________ _-- - --- ___ __________ __2412 (m)
~istant to, J!lct 515, J!lug. 9, 1922. No Code number. See after Sec. 2412 (k)
FIRE INSURJ!lNCE COMPJ!lNIES : Powers oL ______________ -- - - -- __ __ ____ _------- -- ___ _____ 2401, 2401 (a) Calculation of Reinsurance Reserve ___ _- --- ---- -- _______ -- _______ __ _2434
FIRE INSURJ!lNCE CONTMCTS : Definition of _______ __ ___ ______ ___ _- -- ------ - -- ---- -- ______ ____ ___ 2470
FIRE INSUMNCE RULES : J!lpplicable in Marine Insurance ___ _______ __-- --- __- - __- --- ___ ______ 2526
FORFEITURE OF CHARTER______ - - - ------------ - -------- -- __ - - ___ 2399
FORFEITURE OF LICENSE: Cause for ______________ _________ __ ____ ____ ____ ____ _2416, 2417 (a), 2494 How forfeited License may be renewed __ ___ __ ______ ___ ____ __ ________ 2417
FORFEITURE OF STOCK SUBSCRIPTION __________ _______ ___ ____ _2397 FORM OF CERTIFICATE ISSUED ______ ___________________________ 2390
Certificate prima facie evidence of existence of Corporation __ _____ 2393, 2412

INS URANCE LAWS

I8I

FORMATION OF COMPANY __ ______________________ ---- __ --- - - ____ 2389 Mutual or Co-operative Companies ___ _________ __--- ___ ----- ______ __2412
FORMS FOR REPORTS OF COMPANIES _____ __________________ 2412 {h) FORUM FOR HEARING ____________________________________ ____ __ _2469
FOUR COUNTY FIRE COMPANIES or FARMERS MUTUAL or CO-OPERATIVE FARMERS' ASSESSMENT COMPANIES:
General Laws applicable _____________ ______ _______________________ 2412 No examination required________________________________________ 2412 (f) No deposit required _____ _______________________ ____ ____ _______ 2425 (a) Fees for annual License ____________________ _______________________ 2448
Independent di~sions ------------------------------- - ------------- 2448 Prescribed form of Policy______ ____________ ___ __________ ___________ 2471
Mutual Insurance defined ____________ _________________ ___ ____ 2529, 2533
FRATERNAL BENEFIT SOCIETIES: See General Statute Index__________________________ ___ 2564 to 2564 {ccc) Definition of__ _____________________________ _______ ___________ _2564 (a)
FRATERNAL SOCIETY-ORGANIZATION: Exemption of various Societies from Insurance Laws_____ 2564 {k), (uu), (xx) Exemption from other laws __________________ ________ ___ ___ ________ 2461
FRAUDULENT CONDUCT OF COMPANIES: Proceedings in case oL _______ ____ __ ______ _____ ___________ ________ _2437
FRAUDULENT REINSTATEMENT___ ______ __ --- --- _________ -- __ 2514 (g)
FRAUDULENT STATEMENTS AND CLAIMS: Prohibited ___ __ ____________________________ _2457, 2445 (a), 2514 {f), {h)
GOOD FAITH IN APPLICATION _____ ____ ________ -- - ---- ___ __ ______ 2479 GOOD FAITH OF STATE PLEDGED FOR DEPOSITS ______________ 2558 GUARANTY CERTIFICATES__ __________ ___ __ --- --- ___ -------- __ 2514 {a) ILLEGAL VOYAGE:
Nullifies Marine Insurance ______ _________________ __ ____ -- - - _______ 2519
IMPAIRMENT:
Of Stock - --- ------------- - ------------- - ----- ----- -------------- 2434 Of Assets______________________________________ --- _________ _2437, 2439
INCOME CERTIFICATES ____ __ ____ _______ _____ ---- ______ - --- ___2514 (a)
INCORPORATION ________ ____ _______________ __________________ 2388, 2412
INCREASE OF RISK: Voids Marine Insurance _____________________ __ ---- - __ __ - - ---- -- -- -2523
INDUSTRIAL LIFE INSURANCE: Definition of____ _______________________________ -_--------------- -2502
Definition of such Companies __ ______ ________ --- ------ ------------ _2503 Legal requirements of such Companies __ ________ --------------- -- ___ 2504 Deposits by Companies _____ __ ___________ -- ____ -- -- ------ -- - _2504, 2505 Increased deposits to $100,()()()__________________ 2564 (ddd), (eee) and {fff) Companies subject to law___ ___________ _______ _______ __ -------- - ___ 2506

INSURANCE LAWS
Exempt from subsequent laws unless specifically mentioned hereafter____ 2507 Solvent Assets required _______ ___ ____________________ __ ----- --- ____ 2508
Incorporation, Rights, Powers and Deposits----- -- ------------ .- -2514 (b} When Companies may be authorized to write Ordinary
Life Insurance---------- --- - -- ------ - -- -------- -- -2514 (b), 2514 (c) When Mutual may become Stock Company ______________________ 2514 (d) Regulation of Companies ______ ___________ ___ __ __ _____________ __2514 (e) Full face of policy must be paid ____ __ __ __________ _______ ___ ___ __2514 (e) False representations prohibited__________ ____ ____________ __ _____ 2514 (f)
INJUNCTIONS: Hearing and Order oL _________ ___ ____ _____ __ : _-------------- __ 2442 (b}
INSOLVENCY: Proceedings in case oL ________________ ___________ ____ 2437, 2441,2442 (a) Duty in case of knowledge of_ ________________________________ 2434, 2442 Receiving premium after ___ _________________ ___ ____ _______ ____ _2514 (g}
Fraudulent re-instatement after ________ ------------ ________ _____ 2514 (g) INSPECTION OF ACCOUNTS:
Refusal of Life Insurance Company to permit_ ____________________ 2442 (a}
INSPECTORS: May administer oaths______ ________ ----- __________________________2464
INSURANCE AGENT: Definition oL _------ - ___ ______ ___ ____ ________ __________ __________ 2443.
INSURANCE BOARD : Composition and Authority oL ____ ____ _______________________ __2415 (b)
INSURABLE INTEREST: Of assured in policy___ _____________________________ ________ _______ 24n
Insuring interest of another____________ -- ----- _____________________ 2473
INSURANCE COMMISSIONER, POWERS OF: To approve increase or decrease of amount of Capitalstock__________ __ 2397 To approve investments _______________________ - ---- - - _____________ 2408 To appoint deputy and clerk_____ _____ ___ _____ ____ _______ _____ __ 2412 (a}
To collect charges, fees and taxes----------- - -------- - ---------- -2412 (d) To t:xamine companies _______ ____ _______________ ----- ____ ___ __ 2412 (f)
To take .control of companies--------- --- - --- ---------------2442 (a), (g) To enforce orders----- ----- ----- --- - --------------- - ----------2412 (g) To prescribe rules and regulations __________ _____________ 2412 (i), 2442 (d) To give directions as to use of funds collected before investment __ ___ 2412 (j)
To appoint Fire Inspector--- ---------- ---- ---------------------2412 (k) To execute all insurance laws-------- - --- - - ---------- --------------2413 To issue subpoenas---- ---- ------ --------- -- -- --------------- --2514 (j) INSURANCE DEPARTMENT: Officers, Seal, Records, Reports- ------ ------ ----- ------------ - --2412 (a} Compensation of Officers ________ _______ __ ____ - -- __ - - -------- ___241.2 (b) Appropriation for payment of salaries _____ __ ---- - ------ -- -- ______ 2412 (c}

INSURANCE LAWS
Collection of fees and taxes _____ ___ ________________ ____ __ - -- ____ 2412 (d) Fees, taxes, etc. _____________________ ______ __ ______ ___________ _2412 (e) Examination of Companies ___ ---------- ____ ______ ___ _____ ______ 2412 (f) Seal of office--when uaed _____________ ____ _________ ________ ___ _2412 (a) Publication of Report_ __ ____ ____________________ __ ______ __ _____ 2412 (a) Investigations-power to make __ ___ _______ _________ ______ ----- _____ 2433 Making of Reports _____ _____ ____ ______________________________ 2442 (f) CommiBBioner may administer oaths ___________ --- --- _____ __-- _2464, 2468 INSURER: May prescribe regulations __________ ___________ ____________ ______ __ 2490
INTENTION OF PARTIES: To an Insurance Contract------------------------------ -------- ---2475
INVESTIGATIONS: By CommiBBioner or Deputy __ _______ __ __________________ ________ __ 2433
Scope of-- - --------- - --------- -- ---- ---- --- - -- - --- -- -------- -----2433 Expenseof - - - -- --------- ---- ---- ------------------------- -------2433 Of Complaints as to violation of law---- ------- -------------- ---- - -- 2493 Power to isaue subpoenas, etc---------- - - --- ---- --- ----- ------- 2514 (j) INVESTMENTS: By Insurance Companies____ _______ ____ __ ________________ ____ ____ __2408 Buildings owned by Corporations__________ ____ - -- ---- __ ----- ______ _2409 Investment of Stock and Stocks of other Companies ____ __2394, 2409 (a), (3) Legality of Bonds of cities or counties of Georgia ____________ __ ___ ___ 2394
Liulitationof----- - --- - ----- - - -- - - --- -- ------- - ------------------2409 Sale or Transfer oL ______ __ __ ________ ___________________ _______ ___ 2409 KINDS OF INVESTMENTS_____ ___ ___ __________ _______ ___ 2408, 2409,2394
LAWS APPLICABLE: To Mutual or Co-operative Companies (Fire, Livestock, Life or Accident Companies) ____ _: ___- -- --- ___ __ __ ____ ___ 2412 To individuals ___ ___ ________ __ __ ___ _________ ________ __ ___________ 2465
LAWS GOVERNING COMPANIES: Applicable to individuals ________ ___ ___ ___ ________ ---------- _______ 2465
LIABILITY : Of Stockholders __ ____ _____ __ ____ _______ ___ ________________ _____ __2411
Of Agents for unauthorized Companies __ __ _____ ____ ____ _____ __ ___ ___ 2445
LICENSES : Unlawful to operate without_ _____ __ ______ _________________________ 2414
Ilowobtained------ --------- --- ----------------------- --------- --2415 Isauance of, under SeaL-------- - ------------------ - ------ --- --2415 (a) Notice of revocation oL- ----------------------- ---------- ------2415 (b) Withdrawal of ______ __ ______________________________ ______ _______ 2418
Cause for revocation _______ ______ 2415 (b), 2430,2434,2437,2439,2440 (b)
Who must obtain- -- ---- - - ---------- --- -- -- -- ------------- --- -2445 (a) Requisites to obtain, and revocation ________ ___________________ __2445 (b)

INSURANCE LAWS
Non-resident agents __________ ____ ___ ___ ___ __ _________________ _2448 (c) To Agent of Assessment Companies _______ ____ _______ _____ ____ __ ___2456 Agents must obtain __ ___________ __ _________ _______ ____ _____ ____ 2514 (i)
LIFE INSURANCE COMPANIES: Formation, Organization, etc.__ ___ ________ ___ __ _________ _____ _2388, 2399 Powers of ____ __ ______ _____ ______ ____ __________ _____ ___ _____ _____ 2400
Requirement to do business- - - - ---- - ---- - - - - - -- -- -- --- - ----- - ---- --2418 Deposits ____ ____ _________ ___ _____ _____ 2426, 2427,2428,2564 (ddd), (eee) Reserve Valuation and Certificate __ ________ ___ __ ___ __ __ ______ _2428, 2429 Effect of failure to deposit_ _______________ _____ _____ __ ____ __ _____ __ 2430
Calculation of Reserve value_ --------- ---- - - - -- ----- - - - -- - - -- - ---- - 2438 Impairment of Net or Reserve value __ _____ ______ _____ ________ ___ ___ 2439 Valuation by other Commissioners___ ______ _______ ______ ______ ____ __ 2440 Commissions to Officers prohibited _________ ___ __ ___ ______ _____ __ 2440 (a) Anti-rebate law __ ________ ____ _____ ____ ____ __ ___ _____ ____ ___ ___ 2440 (b) Proceedings to take Control oL __ _________ _____ ___ __ ____ ___ _____2442 (a) Assessmentplan ______ ____ ___ __ ____ _____ __ __ __________ ________ ____ 2451
Law of Fire Insurance applicable __ ________ ___ _______ ______ _____ ____ 2499
LIFE INSURANCE; Definition of Contract ___ __ ___ _________ ___ __ ______ ____ _____ ___ ____ 2496 By whom Contracts can be taken _____ ___ _______ __ ____ ________ __ ____ 2497 To whom proceeds may be paid ____ _______________ __ -- __ - - --- __ __ __2498 Medical examinations required____ __ __ __________ ___ ____ _2455 (a), 2499 (a) Statements in applications are not warranties ___ __ ___ __ __ ___ __ __ __ 2499 (a)
Void for suicide or death by justice-- - - -- - --- ----- - -- -- - - - -- - - - -- - - - 2500 LIMITATION OF BUSINESS:
Of Mutual Companies ____________ __ __ ____ -- - -- - ___ ___ ___ __________ 2540
LIQUIDATION : Of business of Companies _____ __ ___ ____ ___ ________ _____________ 2442 (c)
LIVE STOCK COMPANIES: Powersof___ _________ __ _____ _: ___ ___ __ __________ ____ ____ __ __ ___ __ 2403
Laws applicable ____ ____ ____ __ ______ ___________ ___ - -- ---- --- - -- - - _2463
LOCAL ASSESSMENT COMPANIES: Exemption from deposit requirement_ ________ _______ ____________ 2425 (a) Form of policy prescribec,L ____________ ____________ ___ - - -- - --- __2470 (a)
LOSS: Definition of what may be a ______ ___ _- - ________ -- - --- - - ------- - -- _2476 Umpire to appraise ____ ___ __ ___ ______ ___ _______ _________ ___ ____ 2476 (a)
Unknown, does not invalidate contracL-- - ------ - --- --- ------------ -2477
MARINE INSURANCE : Definition of Contract oL _____ ______ _-- - ------- - -- ------ --------- _2515 Unlawful Commerce __________ ___ -- ________ - - - - --------------- - -- _2516 Double Insurance ______ _____________________ --- -- - ---- --- - -- -- __ _2517 Implied WarrantY----- - -------------------- --- ---- -~ -------------2518

INSURANCE LAWS
Illegal Voyage _____________________ __ __ -.- --- _______________ - - _____ 2519 Deviation in transit ______ ____ ____________ ____ __________________ ___ 2520 Perils of the Sea _______________________ ____________ ____ ___________ 2521 Continuance of Risk ______ ________________________________________ 2522 Increase of Risk ______ ____ __ ___ _____ ___ ___________________________ 2523 Open Policy ___ ___ ________ ______ ______________ ___________________ 2524
Value, how ascertained--- --- --- ---------------- - - --- --- --- --------2525 Former Rules applicable _______ ___________________________________ 2526 Rights of owners of Merchandise ____________ ------- ______________ __ 2527 Owner or Master of vessel to care for damaged property__________ _____ 2528 MEASURE OF DEPOSIT OF LIFE COMPANIES__________________ __ 2428 MEDICAL EXAMINATIONS: Required by Life Companies__ __ ____ __- ________________________ 2499 (a)
Required by Mutual or Assessment Companies (excluding Industrial Companies) ___ ___ _____ _________________ 2514 (e)
MEETINGS: For organization ____ ___ ___ _______________________________________ 2395 Of Directors _______________________ ______________________________ 2395
Of Stockholders-- --------------- - -- ------ - - -- ------------- -- --- --2395 MEMBERSHIP FEE AND PREMIUM ____ ___ ----- --- ---------- ____ _2541 MERGER OR REINSURANCE________________ ___ _______ 2423 (a), 2442 (a)
METHOD OF CALCULATION: Of Reinsurance Reserve (Fire Insurance Companies) _________ -.- ______ _2434
MISREPRESENTATION: Or concealment, increasing risk, or alienation, or second insurance; effect oL ___ ____ __ , _________ _______ ___ 2479 to 2489
MUTUAL OR CO-OPERATIVE COMPANIES: Laws applicable to_________________ ___ ____ ______ ___ ____ 2412, 2412 (1-19) Public or Private Boards, etc., may obtain insurance in ___ ___ ___ __ ___2412 (8) Organization of Farmer's MutuaL ___________ __________ ____ _see after 2417 Insuring against loss by Burglary, Robbery, Loss of Money in Transportation __ _________ ____________________ _____ __ 2535
Prerequisites to obtaining license and transacting business __ ____ 2536 to 2539
MUTUAL INSURANCE: Definition of __________ ____ ___ ___________________________________ _2529 By-Laws, nature oL ____ ______ -- --- ____ _____ ~ - ________________ ___ _2530 Officers of Mutual Companies_____ ________________________ ____ _____ 2531 Liability for reducing Funds ____________ __ ________________________ _2532 Stricter good faith required __ ___ _______ ________________ __ _______ ___2533 Agencies to be Licensed ___ ________ ________________________________ 2534 Names, similarity oL ____ ______ -- - - _____ ____ _-------- _____ --- __ 2412 (3)
NET PROFITS: Participation by Policyholders _____ - _______ ___________ _____________ 2407

186

INSURANCE LAWS

NET VALUES OF POLICIES: Required to be on hand, in addition to capital stock ___ _______________ 243~ Calculation of Net Value of Life Policies ____________________________ 2438
NON-COMPLIANCE WITH LAW ---------------------------- -- - -- --2448 NON-RESIDENT AGENT'S LICENSE AND LAW____________ 2448 (b), (c) NO OVERHEAD WRITING; AFFIDAVIT OF _____ __ _________ _______ 2492
NOTICES TO STOCKHOLDERS:
OfMeetings-----------------------------------------------------2395 NUMBER NECESSARY TO FORM COMPANY ________ ________ 2389, 2412 OATHS:
Commissioner's right to administer ______ ___ ____ ___ ____ ______ __2464, 2468 OCCUPATION TAX:
See General Tax Act. OFFICE OF INSURANCE COMMISSIONER:
A Public Office __ ____________ ________ -------- ________________ .2412 (a)
OFFICERS OR DIRECTORS: May advance funds ____________________________ ---------- ____ . 2412 (14) Forbidden to accept or participate in Commissions ______ ______ ____ 2440 (a)
OPEN POLICY: Definition oL ____ __ ----- ______ ___ _________ -------- ___ __________ .2524
ORDERS:
Howenforced-------------------- ----- --- ----------- -- --------2412 (g) To Treasurer to surrender Bonds--------------------------- --- --2561 (b) ORGANIZATION:
Of Corporation---------------------------------------------------2395 Notice of ______ _________ ___ ______________________________ ______ __2395
Directors of Life Companies_ ----------------------------- -- ---2395 (a) Organization and Commencement of Business, Charter, etc. _____ .2399, 2412 Of Mutual or Co-operative Fire Companies_______ ____ _____ __ following 2417
OWNER OF VESSEL: To care for damaged propertY- -- ------------- --- - ------- --- - - ----- -2528
PARTICIPATION: By Policyholders in net profits (right to participate must be stated in policy) ___________ _____ ___________ ___ ________ 24Q7
PAYMENT AND DAMAGES: When to be made. ____________ ------------------------------ -- ___ 2549
PENALTIES: For failure to pay judgmenL----------- - -----------------------2417 (a) For neglect to file Semi-Annual Statement____________________ _______ 2418
Imposed for various reasons------------- - ------------------ --- -2442 (a) On Agents of Unauthorized Companies _____------ -- ----- ------2444, 2448 For False Representation _________ ______ __ ----- ____ ___ ---- - __ - .2445 (e)
For Fraudulently procuring Insurance_______ ----- ---------- ------- __ 2457 For failure to make Report_ ---------------------------------------2460

INSURANCE LAWS

For failure to pay Tax.-------------------------------------------2460 For violating provisions of Jaw _______________ -- --- - - ______________ .2543 For delay in payment of Joss ______ __ _______________________________ 2549

PERILS OF THE SEA: Covered by Marine Insurance _____ ___ ___________ ___ ________________ 2521

PETITION: For Formation of Company ________________________________ __ 2389, 2412
Publication of_ ___ __ _____ __ ____________ __________________________ . 2389

POLICY CONTRACTS: VVhen not binding------------------------------------------------2404 of Assessment Life Companies __________________________________ 2452 (a) Of Fire Insurance _____ ________ ____________________________ 2470 to 2490

S.tandard Fire PolicY------- ~---- ------------------------------2470 (a) Must contain entire Contract. ___________ ____ _____________ .2470 (b), 2404
To be submitted for approvaL __________________________________ 2425 (b) Construction of __________ __________________________________ ______ 2475

Stipulation Contrary to 2476 (a) void_______________________ _____ 2476 (b)

To be issued through Resident Agents------------------------- --- - --2491 Certificate of no overhead writing ________ - ----- _____________ _______ 2492

Of Life Insurance------- ---------------------------- - -----2496 to 2501 VVhen beneficiary may collect ___________________________________ 2499 (a)
Life Policies, void for suicide or death by justice____________________ __ 250Q Life Policies, time effective ____________________________ ___ __ ____ ___ 2501 Of Industrial Insurance ____ ____ ______ __________ _________ .2502 "to 2514 (j) Definition of Open Policy_________________________________________ .2524 Of Mutual Insurance __________________ ___________ ______ ______ ___ .2529

Of Marine Insurance ______ _--- ------------- -- -- -----------2515 to 2528 Valued policy _________ ____ ____ ____ ___ ------ ____________ _____ _____ 2545

Definition of Fidelity. Insurance Contract___________ ------- ___ ______ .2550 Certificate of Fraternal Insurance ______________________________ .2564 (x)

POOLING:

l



Prohibited----- -- ---- ----- ----------------- - --- - --- --------- - ----2466 POWERS AND PRIVILEGES:
Of Corporation-------------------------------------------- -------2391 Of Life Companies---------------------------------------- ------ --2400 Of Fire Companies _______ ------ ________________________ _______ __.2401 Of Accident Companies _____ ---- _________ ------ __________________ .2402 Of Live Stock Companies_________________________________________ .2403

PRACTICE AS TO TESTIMONY-----------------------------------2468 PREMIUM TAX AND REPORTS________________ ___ ___ ____ ____ 2448, 2459
Penalty for non-payment _________ _________ ___ --- ___ ________ __ ____ .2460
Exemption from payment oL _---- ______ -------- ________ ------ _____ 2461 PRESCRIBING REGULATIONS:
Right of insurer ____ _________________________ __ ----- _______ _______ 2490

For Mutual Companies. ____ --------------- - _________ ----- __ ____ .2535

188

INsuRANCE LA.ws

PROCEEDINGS FOR TAKING CONTROL: Of Life Insurance Companies--- -- - --- -------- ------------------2442 (a) When loss occurs (Surety Companies) _______ _________________ - __ --- _2559
PROFITS : Participation by Policyholders in net profits______ _________________ ___ 2407
PROPERTY VALUE: Estimated at time of loss _____________ _____ ____ ________ ___________ _2546
PROPORTION OF ASSETS OF OTHER INSURANCE COMPANIES_2409 PRO-RATA- COVERY__ _____ ____ _________ _____ __________________ __ 2544
PUBLICATION OF : Petition for Incorporation ____ ____________ ________ ________________ _2389 Semi-Annual Statement_ ___ __ ___ ______ ____________ __ ___ _____ ______ 2418
QUALIFICATIONS: For Writing Surety Bonds _______________________ _____ ___ ________ __ 2551
REASONS FOR TAKING CONTROL: Of Life Insurance Companies by Commissioner______ __ _____ _______ 2442 (a)
REBATES PROIDBITED ____ ________________ __________ _____ _____ 2440 (b)
RECEIVERS: To take charge of bonds to sati!ofy claim ________________ ___ __________ 2421 For Insurance Companies (Method of Procedure) _________________ 2442 (g) Hearings before appointment oL __ ___ _____ __ __ ____ ------ _--- ____ 2442 (g) Who may appoint_ ________ _____ ________ ____________ _---- ______ 2442 (g)
' REBUILDING:
Privilege of - ----- -- --- ----- -- --------------------------- -- ------- 2547 RECOVERY:
Amount oL __ ______________________________ ___ _____ __ _2544, 2545, 2546
Back by Insurer-- --- -------- --- ------------ ------- - ------------ -- 2547 REFUSAL TO OBSERVE ORDER OF:
Insurance Commissioner, Penalty for ______ ___ ________________ ___ 2442 (a)
REINSURANCE AND RESERVE _____ __ ---- ------ - --- ----- - -------- 2410 Calculation of Reinsurance Reserve (Fire Insurance Companies) ________2434 Mutual Burglary Insurance Companies ___ ___ ___ _____ ____________ ____ 2540 Reinsurance or Merger to be approved ____ --- --- ________ -- - ______ 2442 (a)
REMEDIES: In case of default upon Bond__ ______________ ________ ________ ______ 2556
REMOVAL OF SUIT TO FEDERAL COURTS----- ------------ - ----- 2416
RENEWAL : Of Forfeited License ___________________________ __ ___ ___ -_ --- _2417, 2441 Of License (annually) ______________________ ____________________ -- _2418
REPORTS : Forms furnished for, and when________________ --_-- -- ----- -- ____ 2442 (h) Of Commissioner______ _-------- _____ __ ____ - -- ____ - ---- ----- ___ 2442 (f) Special Deputies ___ ___ _____ ------ ____ ____ ____ _----- --------- __ 2442 (f)
PremiuiDB---- ---------- - ---------- --- - ------------ --- - ---- ------2448

INSURANCE LAWS
Of Allsessment Companies _________ --------- _____ _____ __ ______ 2400, :u58 Failure to make _____________ ----- ___ ---- -------------- ___________ 246() REQUISITES: To obtain license--- ----- --------------------------------- --- --2445 (b) Allsessment Companies--- - --- - --------------- -------- - -------2450-2451 As to Bonds of Public Officials--- - ---- ----------- ----- --------- ----2554 RESERVE VALUATION: To be ascertained _________ _---------- -- ------------------------- _2428 To govern Amount of DeposiL---------------- ------------- - -- ----2428 Computation of _ ~ __ ____ ____ _-_------------- -- - : ---------------- __ 2438 Procedure if Net Value is not on hand ___ -_------------ - ------ ______ 2439 Of Policies of Assessment Companies _____________________ 2452, 2453, 2454 For Compensation and Liability Insurance________________2495 (b), 2495 (f) RESERVE: And Re-insurance _____ ____ ------------------------ - --------- _____2410 Calculation of Reinsurance Reserve (Fire
Insurance Companies) ___ __ _______ --- -- ---- ---- --- - _2434, 2452, 2453 Of Life Insurance Companies ________ -- ___ --_- - -------------_-- __2452-3 Calculation by Commissioners of other States_______________________ _2436 Of Mutual Burglary Insurance Companies ___________________________ 2540
RESIDENT AGENT LAW: Regulating Fire and Casualty Companies-- -- --- ---- --------- --------2491
RETALIATORY LAW: Provisions as to use of Deposit ______________ - ____ ______ --- - ________ 2428 Provisions as to Deposit, Fees Penalties _______________ ________ ___ ___ 2449
REVOCATION OF LICENSE: Method of__ ______ __ _____ _____ ____ _______ --- ______________ ___ _2415 (b) Cause for ________________________________ 2430, 2434,2437,2439,2440 (b) Of Agents __ ______ ________ ---------------- ---- ______ _____ __ ___ 2445 (b)
Of Assessment Companies _____ ------- --------------- - -- --- ----- ---2450 Of Casualty Companies, Act 314, Aug. 2, 1922.
No Code number. See following 2495.
RIGHT OF COMMISSIONER: To examine Companies and appoint Examiners __ __ ________________ 2412 (f)
RIGHT OF INSURER: To make regulations as to Contract_ ____ -- ____ ____________ ------- - __ 2490
RIGHTS OF: Owners of Merchandise on Vesseis------ --------- - ----- - --- ---------2527 Policyholders to Deposits _________ --- __ -------------------------- __ 2428
ROBBERY INSURANCE ____ ---- _____ -- - _--------------------- - --- __ 2535
RULES AND REGULATIONS: Power to prescribe by Insurance Commissioner____ 2412 (i), 2442 (e), 2445 (d) Of Fire Insurance applicable in Marine Insurance _________________ ___2526

190

INSURANCE LAWS

SAFETY STANDARD: Of Life Companies ______________________ ------ ----- ______________ 2439
SEAWORTHINESS: And skill in Navigation implied in Marine insurance __________________ 2518
SEMI-ANNUAL STATEMENT: Publication oL ________ ___ ____ ____ _____________________ -------- ___ 2419 Penalty for Neglect to file _________________________________________ 2419
SERVICE AND SUITS _________ __ _____ ________ 2446; 2447,2542,2563,2564
SOLVENT ASSETS: Of Mutual Aid, Benefit or Industrial Life Companies __ _______________ 2508 Where impaired __ __ _________ -------- _______________________ _2434, 2444
SPECIAL DEPUTY COMMISSIONER____ ___ _______ _______ _______ 2442 (d) Report of ____ __ _______ _______________ ____ ____ ________________ 2442 (f)
STANDARD OF SAFETY: Of Life Companies __________________________ ---- ----- ____________ 2439
STATEME T: To obtain License _____________________________ ___________________ 2415 Of Capital or Assets ___ __ ____ ____ ______ ___________________________ 2418 Semi-AnnuaL ___ _________________________________________________ 2418 Showing Agents_______ _____ _____ ______ _____ __________________ _2445 (c)
Of Mutual Burglary Insurance Companies ________________ _____ _2537, 2538
STEAM BOILER INSURANCE COMPANIES: Laws applicable ___________________.____________ ------ ____ ___ ____ _. 2463
STOCK: Regulations as to formation of Company ____ ________________________ 2389
Regulations as to Sale of Stock; investments, etc. ____ __ _________ 2394, 2395 Amount necessary for each class of insurance ____ _______________ _2394, 2412 Organization of Company, meetings, etc. ______ _________ ___________ __ 2395 Amount to be paid in ___ ______ _______ _____________________________ 2396 May be increased or decreased _________ ______ _______________ ____ __ _2397
Deemed PersonaltY-------------- -- -------------------------------2398 Dividends must be earned before paid_____ ____ ____ ________________ _. 2405 Authority to issue Stock Dividends _________________________________ 2406
Amount of Dividends on Stock may be named in Charter______________ 2407 Stock of other insurance companies___ ____________ ____________ 2409 (a) (3) Liability of Holders oL __________ ____ __ ---- __________________ 2411, 2435 Examination of Companies selling Stock_________________________ 2412 (f) Supervision before and while selling Stock _________________ _______ 2412 (j) Amount to be named in filing Statement____________ _______ _____ ____ 2415 Commissions on Sale of, who may not receive _________ _________ ___ 2440 (a) License and Rules for Sale oL ___________________________ ___ ____ 2445 (d)
SUBPOENA: May be issued by Commissioner_______________ _____ ____ __ _______ _2514 (j)
SUBSTITUTION:
Of Bonds or Securities on DeposiL------------------------ - --------2427

INSURANCE LAWS
SUICIDE: Voids policy obligation ___ _______________ ____________ __ ___ _________ 2500
SUITS AGAINST COMPANIES ____ __________________________ __ 2446, 2563 SUPERVISION OF COMPANIES:
Before Organization ___ ___ _-------- ___________________________ _2412 (j) SURETY BONDS:
Of Public Officials ____ _____ ________ ___ ________ ---- _______ _____ ___ _2554
SURETYSHIP: Contracts of, between co=on carriers and employees _____ ______ __ 2562 (a) Cancellation of_ ____ __ ____ ____ ______ _____ ______ _________ _______ 2562 (b)
SURRENDER OF BONDS: By Treasurer, Order for __------------- ---- -- ---- ----------- ----2561 (b)
TAXES : Collection of Fees and Taxes _________________________________ __ _2412 (d) Paid into State Treasury _______ ___ _________ __ _____________ _____ 2412 (e) Fire Inspector's ___________ __ ____ ------ ____ _________________ __ 2412 (m) On Assessment Companies__ ___ ---- __ _______ ____ __ _______ __ ___2459, 2460 On Premiums ______________________.___ __ ------------- - ______ 2459, 2460
TESTIMONY: Practice as t o___________________________________________ _____ ____ 2468
TIME : How counted in Life lnsurance___ ____ _____________ _______ _____ _____ 2501
TRANSPORTATION LOSS INSURANCE ____________ ___ ------ ____ ___ 2535
UMPIRE: To appraise Loss--- ------- ------ ----- -- --- --- --- - ------- --- - - -2476 (a) Appointment, Notice and Service--- ---- - ~ - ------------------ ---- 2476 (a)
U AUTHORIZED COMPANIES: Agen ts forbidden to place business in ___ ____ _____________ _2443-2444-2445 Penalty and Civil Liability of Agents oL __ _____________ ____ __ ____ ___ 2445
UNLAWFUL COMMERCE : Not subject of Marine Insurance ______________________ __________ ___ 2516
VALIDITY : Of Investment ___________ ______________ ________ _____ _____________ 2394
Of Contract ------- ------- -- -- - ----------------------------------2477 VALUATION:
Cert ificates ______ --- ______ ------ -- ______ -------- ---- - __ _____2429, 2440 Of Life Policies __________ ---- -- - ___ -- - - _________ --- --- ___________ 2438
By Co=issioners of other States---------------- - ------------- ----2440 Penalty for failure to furnish certificate____________________ ___ ______ 2440
VALUED POLICY CLAUSE __ --------- - ---- _______ __ - ---- ___ ___ _____ 2545
VALUE, HOW ASCERTAINED----- --- ------------- -- --- ------2525, 2546 VENUE:
Of Suits on Bonds------------------------------------- - ----- --- --2553

INSURANCE LAWS
VIOLATION OF INSURANCE LAW: Investigation of ______ ____ _____________ _____________________ ____ _. 2493
WITHDRAWAL : Of License for cause. - - - ------------- - -- ---- ------- - ---2417 (a), (b), (c) Of Deposit ___ ______ ____ _____ _____ ____ 2423, 2423 (a), 2425,2561, 2561 (a) Of CompanY- --- ------ -- - --- --- --- -- ----- --- - - -- ---- - - -- - --- - -- - -2561 No release from liability when Company Withdraws ________ _____ __ 2561 (c)