Commis

SEC. 4. It shall be the duty of the Insurance Commissioner Duties of to file in his office and to safely keep all books and papers sioner. required by law to be filed therein; to examine and inspect the financial condition of all persons now or hereafter engaged or who shall desire to engage in the business of insurance in this State; to issue a certificate of authority to transact insurance business in this State to any persons in a solvent condition, within the true intent and meaning of the Insurance Laws of this State, and who have fully complied therewith; to determine with proper care and discretion upon the sufficiency and validity of all bonds and other securities required by law to be given by persons engaged or to be engaged in insurance business, and to cause the same to be renewed from time to time in case of the insufficiency or invalidity thereof; and generally to do and perform, with justice and impartiality, all such duties as may be imposed upon him by the laws regulating the business of insurance in this State, and enforce the execution of such laws according to the true intent and meaning thereof; to prepare and furnish on demand, to all persons engaged in the insurance business, blank forms for such statements or reports as may by law be required of them; to make, on or before the fifteenth day of March in each year, a report to the Governor of this State, or to the Legislature, if the same be in session, containing a tabular statement and synopsis of the reports which have been filed in his office, and showing generally the condition of the insurance business and interests in this State, and such other matters as in his opinion may be of interest to the public. One thousand copies of such reports shall be printed by the State Printer, of which five hundred shall be subject to the orders of the Commissioner.

give infor

Commis

SEC. 5. The Insurance Commissioner shall have power to Penalty for investigate and inquire into the business of insurance transacted refusing to in this State; and if any person engaged in the business of in- mation to surance shall refuse to give to the Commissioner full and truthful sioner. information and response in writing to any inquiry or question made in writing by the Commissioner, relating to the business. of insurance as carried on by such person, then such person so refusing, and for each refusal, shall forfeit and pay to the people of this State the sum of five hundred dollars. The collection of such forfeitures, and the payment thereof, may be enforced by the Commissioner; and for that purpose, suits may be instituted in the name of The People of the State of California, in any Court of competent jurisdiction.

of companies

ined.

SEC. 6. The Insurance Commissioner, whenever from any If complaint cause he shall deem it necessary, or whenever he shall be thereto made, affairs requested by complaint in writing, signed by three persons in- to be examterested, either as stockholders, policy holders or creditors, and verified by them upon oath that they verily believe such person complained of to be insolvent under the laws of this State, shall visit and make examination of the business and affairs relating to insurance of such person so complained of; and at such times he shall have free access to all the books and papers of such person, and shall thoroughly inspect and examine all his affairs, and make inquiries, such as are necessary to ascertain his condition and ability to fulfil his engagements, and whether he has

complied with all the provisions of law applicable to his transactions; and it shall be the duty of such person and his officers and agents to cause his books and papers to be opened for the inspection of the Commissioner, and otherwise to facilitate such examination, as far as it may be in his power so to do; and the Commissioner shall have power to administer oaths and examine under oath, by oral or written questions, all such officers and agents, or any other persons, relative to the business of such person; and if he shall find his books to have been carelessly or improperly kept or posted, he shall have power to employ sworn experts to rewrite, post and balance the same, at the Result may expense of such person; provided, such examinations shall be be published conducted in the county where such person has his principal place of business, and shall be private, unless in the opinion of the Commissioner the safety and interest of the public requires the publication of the result of such investigation, in which case he may publish the same in two of the public newspapers of this State, one of which shall be published in the City of San Francisco.

When insolvent.

Certificate to be revoked.

SEC. 7. Whenever the liabilities of any person engaged in the insurance business, for losses reported, for expenses, taxes and re-insurance of all outstanding risks, estimated at fifty per cent. of the premiums received on fire risks and marine time risks, and at the entire premiums on all other marine risks, and at such rates for life, accidental and other kinds of insurance as shall be generally accepted by the Actuaries of the States of New York and Massachusetts, would impair his capital stock already paid in to an extent exceeding twenty per cent., such person is hereby declared to be insolvent.

SEC. 8. Whenever it shall be ascertained by the Commissioner that any person engaged in the insurance business in this State is insolvent, within the true intent and meaning of this Act, he shall, and is hereby empowered to, revoke the certificate granted in behalf of such person, and shall send by mail to such person, addressed to him at his principal place of business, or deliver to him personally, notice of such revocation, and shall cause notice of said revocation to be filed in his office, and also to be published in some public newspaper published in the City of San Francisco for at least four weeks; and such person is required, after receiving notice of said revocation, or after the first publication thereof, to discontinue the issuing of any new policies Capital to be and the renewal of any previously issued; and in such cases repaired by the Commissioner shall require the said person, or his manager upon stock or agent, to repair its capital within such period as he may designate in such requisition. Any company, corporation or association receiving the aforesaid requisition from the Commissioner shall forthwith call upon its stockholders, by assessments, for such amounts as will make its capital equal to the amount of its paid up capital, exclusive of assets needed to pay all ascertained liabilities for losses reported, for expenses and taxes, and exclusive of the entire premiums received for outstanding risks; and in case any stockholder shall refuse or neg lect to pay the amount so called for, it shall be lawful for said company, corporation or association to enforce said assessment by such notice and sale as are provided for by the Act entitled

assessments

holders.

an Act concerning assessments upon the stock of corporations, approved March twenty-sixth, eighteen hundred and sixty-six.

In case any person, upon the requisition of the Commissioner as If deficiency aforesaid, shall fail to make up the deficiency of his capital in not made up. accordance with the requirements aforesaid, or to comply in all respects with the Insurance Laws of this State, the Commissioner shall communicate the fact to the Attorney-General, whose duty it shall then become to commence an action in the name of the people in this State, in the District Court of the judicial district where the person in question is located, or has his principal office, against such person, and apply for an order requiring him to show cause why his business should not be closed; and the Court shall thereupon proceed to hear the allegations and proofs of the respective parties as in other cases; and in case it shall appear to the satisfaction of the Court that such person is insolvent, as aforesaid, or that the interests of the public so require, the Court shall decree a dissolution of such company, corporation, association or firm, and a winding up of its affairs and a distribution of the effects of such person. But otherwise the Court shall enter a decree annulling the act of the Commissioner in the premises, and authorizing such person to resume business. But the Commissioner shall not be held liable for damages in the attempted performance of his duty herein, if he has acted in good faith. In the event of any additional losses Stockholdoccurring upon new risks taken after the expiration of the ers liable for period limited by the Commissioner in the requisition, and before the deficiency shall have been filled up, the Directors of any company, corporation or association shall be individually liable to the extent thereof.

losses.

surance busi

certificate.

SEC. 9. It shall not be lawful for any company, corporation Unlawful to or association incorporated under the law of this State, or for transact inany agent of any foreign insurance company or association ness without doing business in this State, to transact insurance business without first having procured from the Insurance Commissioner a certificate of authority, as in this Act provided; and all policies issued or renewed, and all insurances taken, before the issuance of such certificate, shall be null and void for all purposes what

soever.

SEC. 10. Whoever shall neglect or refuse, after demand and Refusal to notice thereof and without justifiable cause, to appear or testify testify. under oath before the Insurance Commissioner in the discharge of his duty, shall be deemed guilty of a misdemeanor, and shall on conviction thereof be punished by a fine not exceeding one thousand dollars, or by imprisonment not exceeding three months.

nies.

SEC. 11. The name under which any corporation shall here- Names of after propose to be formed or organized under the laws of this new compaState for the transaction of insurance business shall be submitted to the Commissioner before the commencement of such business; and the Commissioner shall have the right to reject any name or title submitted to him when he shall deem the same to be an interference with or to be too similar to one already appropriated, or likely to mislead the public in any respect, and in such case a name not liable to such objection shall be chosen.

SEC. 12. The Commissioner may employ a Clerk at a com

Clerk of Commis. sioner.

Fees.

Salary of Commissioner.

Record of

fees and assessments.

This Act to apply.

pensation not to exceed one hundred and fifty dollars a month* The Commissioner shall keep his office in the City and County of San Francisco, and it shall remain open for business from nine o'clock A. M. until four o'clock P. M. every day except nonjudicial days; he shall procure rooms necessary for his office at a rent not to exceed seventy-five dollars per month, and may provide a suitable safe and furniture therefor; he may also provide stationery, fuel, printing and other conveniences necessary for the transaction of the business of his office, not to exceed in the aggregate, exclusive of printing annual reports, the sum of five hundred dollars per annum. All expenditures authorized in this section shall be audited and paid in the same manner as the salary of the Commissioner.

SEC. 13. There shall be paid to the Commissioner by every person to whom this Act shall apply, the following fees, viz:

For filing the certificate of incorporation, or certified copy of certificate hereinafter by this Act required to be filed in said Commissioner's office, the sum of thirty dollars.

For filing the annual statement hereinafter required to be filed, twenty dollars.

For filing any other papers required by this Act to be filed, five dollars.

For furnishing copies of papers filed in his office, twenty cents per folio; and for certifying the same, one dollar.

All fees collected shall be paid into the State Treasury monthly. In case the salary of the Commissioner and the expenses of his office shall exceed the amount collected under this Act, such excess shall be annually assessed by the Commissioner upon all persons to whom this Act shall apply, and they shall severally be liable therefor, pro rata, according to the amount of premiums received or receivable from risks taken in this State, respectively, during the year ending on the thirtyfirst day of December next preceding the assessment. The Commissioner shall collect fees and assessments, and pay monthly into the State Treasury whatever amounts may be received and collected by him; and in the annual report hereinafter required to be made by him, he shall report by statement, verified by his oath, the various sums so received or collected, and from whom and for what purpose received or collected. Suits may be brought by the Commissioner in the name of the people of this State to enforce such collection. Any person liable for any assessment under this section who shall neglect or refuse to pay the amount of such assessment within ten days after demand thereof, in writing, by the Insurance Commissioner, shall become liable to pay double the amount of such assessment, and any judgment recovered in such case shall be for such double amount and costs.

SEC. 14. The provisions of this Act, under the term or general designation, "person" or "persons," shall apply to, and such term shall be construed to include, all companies, corporations, associations and agents thereof engaged, or who may hereafter engage, in the business of insurance in this State, whether such business be fire, marine, inland, life, accidental, or any other kind of insurance, and whether such companies, corporations or associations be organized or formed under the laws of

this State, or of any other State of the United States, or any Territory or District thereof, or of any foreign State or country, and whether such agents carry on said business as agents of any company, corporation or association organized or formed under the laws of this State or of any other State of the United States, or any Territory or District thereof, or of any foreign State or country.

heretofore

filed.

SEC. 15. The first Commissioner who shall be appointed under Securities this Act shall, immediately upon obtaining a suitable office. d. apply to and receive from the Controller of State all bonds and securities filed in the Controller's office by all persons now engaged in the transaction of insurance business in this State, and shall file and safely keep the same in his office. And the Controller is hereby authorized and directed to deliver to the custody of the Insurance Commissioners all such bonds and securities, taking his receipt therefor.

SEC. 16. The Insurance Commissioner shall keep and pre- Record of serve, in a permanent form, a full record of his proceedings, proceedings including a concise statement of the condition of each person visited or examined by him.

office.

SEC. 17. Every Insurance Commissioner shall, upon retiring Upon refrom office, deliver to his duly qualified successor in office, or, in tiring from case there be no successor, to the Secretary of State, the possession of his office, and all furniture, property, papers and archives thereto properly belonging.

basis.

SEC. 18. All statements and all estimates, percentages, pay- Gold coin ments and calculations required to be made in this Act, by either the Commissioner or the persons engaged in the business of fire or marine insurance, shall be made only in the gold coin of the United States.

Commis

transferred

SEC. 19. The Insurance Commissioner may be removed by Governor the Governor, and another be appointed in his stead, whenever may remove in the opinion of the Governor the public interest may require it. sioner. SEC. 20. All the duties and powers conferred upon the Con- Duties and troller in the several Acts entitled and approved as follows, to powere wit: An Act to tax foreign insurance companies doing business to Commisin this State, approved April fifteenth, eighteen hundred and sioner. sixty-two; an Act amendatory of and supplementary to an Act entitled an Act to tax foreign insurance companies doing business in this State, approved April fifteenth, eighteen hundred and sixty-two, approved March second, eighteen hundred and sixty-four; and an Act to provide for the incorporation of mutual insurance companies for the insurance of life and health and against accidents, approved April second, eighteen hundred and sixty-six-are hereby imposed and conferred upon the Insurance. Commissioner, and the Controller is hereby relieved from the same; and all the provisions in the said Acts contained, in reference to the Controller's office, are hereby made applicable to the Commissioner's office, and the Controller's office is hereby relieved from the same.

SEC. 21. Sections seven and eight of an Act entitled an Act Acts to tax foreign insurance companies doing business in this State, repealed. approved April fifteenth, eighteen hundred and sixty-two, as amended by an Act entitled an Act amendatory of and supplementary to an Act entitled an Act to tax foreign insurance