Chap. 224.—An AOT making it unlawful for insurance companies, not incor-
porated by the laws of the state of Virginia, but legally admitted to do busi-
ness therein, to place, or cause to be placed, insurance on property in this
state in offices outside of the state in violation of the tax laws of the state of
Virginia, and prescribing penalties for violation of the same, and prescribing
the duties and compensation of the auditor of public accounts in relation
thereto, and providing for renewal of license privileges of companies doing
business in this state.

Approved February 5, 1896.

1. Unlawful to insure property in the state of Virginia except through
resident agents.—Be it enacted by the general assembly of the state
of Virginia, That fire insurance companies, not incorporated by the
laws of the state of Virginia, but legally authorized to do business
in this state, shall not make contracts of insurance on property
herein save through regularly constituted agents of such companies ;
provided, however, that this act shall not apply to railroad com-
panies and other common carriers engaged in interstate commerce;
and the writing, placing, or causing to be written or placed, any
policy of fire insurance in contravention of this act, is hereby de-
clared to be a violation of the laws of this state, providing for the
payment of taxes by foreign insurance companies permitted to do
business in Virginia. °

2. Violation of act; penalty—Any company or officer, or agent
thereof, legally admitted to do business in Virginia, violating any of
the provisions of this act, shall be punished by a fine of not less than
one hundred dollars nor more than five hundred dollars for each
offence, and when any such company shall have been found to have
so violated this act, upon the first offence its license to do business in
this state shall also be revoked for a period of ninety days; and the
auditor of public accounts of this state shall be required to cause a
notice of such revocation of authority to do business in this state to
be published in any paper of general circulation published in the
city of Richmond, and after the publication of such notice it shall
be unlawful for any person, agent, firm or corporation of such insur-
ance company or companies to procure any new applications for in-
surance in such company or companies, or to issue any policies or
renewals therein, pending re-instatement of such company or com-
panies’ authority to do business in this state. And any company or
companies, whose license may be so revoked by the auditor of public
accounts of this state, shall not be again permitted to do business in
Virginia until all taxes and penalties due on said conviction shall
have been paid, together with any expenses that may be due under
the provisions of this act, to the auditor of public accounts of this
state.

3. Duty of auditor of public accounts.—Whenever the auditor of
public accounts of this state shall receive information of any viola-
tion of the first section of this act, whether such information shall
be by an exhibition of the policy or policies about which complaint
is made, or upon affidavit of party or parties preferring charge, it
shall be his duty, in person or by deputy, to forthwith cause an in-
vestigation of the correctness of such charge or charges of violation
of the first section of this act, and, when necessary to obtain conclu-
sive information, shall visit such company or companies’ office,
where such contract may have been written, made, or recorded, and
examine the books and records of the same; provided the expenses
of the said auditor shall be paid in advance by the person or persons
making the charge, to be refunded to said person or persons should
the charge be sustained. Any company or companies refusing to
exhibit its or their books and records for his inspection, shall be
deemed to be guilty of violating the provisions of the first section of
this act, and the penalties provided herein shall immediately be en-
forced against such company or companies by the auditor of public
accounts of this state, in the manner prescribed by sections number
five hundred and seventy-four, five hundred seventy-five, five hun-
dred and seventy-six, and five hundred and seventy-seven of the
code of Virginia.

4. Expenses of auditor of public accounts.—The auditor of public
accounts of this state, or his deputy, shall receive, as a compensation
for the services rendered under the third section of this act, his nec-
essary traveling expenses and all reasonable expenses incurred, to-
gether with ten dollars per diem, which sum shall be charged against
the company or companies so found guilty by him, and collected
from such company or companies. In case such company or compa-
nies be found not guilty, the necessary traveling expenses and other
expenses incurred by him shall be retained out of the moneys paid
in advance by the person or persons preferring the charges.

5. When annual license to issue.—Renewal of privilege to trans-
act the business of fire insurance in this state by companies not in-
corporated by the laws hereof, shall only issue after the secretary or
manager of such company or companies so desiring to renew license
to do business in Virginia, shall first have made oath that no policy
or policies of insurance covering property in the state of Virginia
has been issued during the twelve months preceding, except by resi-
dent agents of such company in Virginia, duly commissioned, and
until and after such company or companies shall have complied
with other laws heretofore adopted by this state and now in force in
respect to the admission of companies of other states and countries.

6. This act shall be in force from its passage.