Chap. 234.—An ACT to amend and re-enact section 2 of chapter 6 and section
28 of chapter 8 of an act entitled: An act concerning the bureau of in-
surance, and insurance, guarantee, trust, indemnity, fidelity, security, and
fraternal benefit compaines, associations, societies, and orders, and imposing
penalties for its violation, approved March 9, 1906.

Approved March 12, 1908.

1. Be it enacted by the general assembly of Virginia, That section two
of chapter six and section twenty-eight of chapter eight of an act en-
titled an act concerning the bureau of insurance and insurance guar-
antee, trusts, indemnity, fidelity, security, and fraternal benefit com-
panies, associations, societies, and orders and imposing penalties for its
violation, approved March ninth, nineteen hundred and six, be amended
and re-enacted so as to read as follows:

Chapter VI.

§2. It. shall be lawful for any insurance company, chartered by this
State, or by any other State or country, to make insurance of the class
or classes mentioned in this section:

First. To insure houses, buildings, and all other kinds of property
against loss or damage by fire, lightning, or storm, and to make all kinds
of insurance on goods, merchandise or other property in course of trans-
portation, whether on land or water, or any vessel or boat, wherever
the same may be.

Second. To make any of the following kinds of insurance: (a) Upon
the health of persons, or against injury, disablement or death of persons
resulting from travelling or general accidents by land or water, and
against liability of the assured for injuries to employees of other persons ;
(b) upon the lives of horses, cattle or other live stock; (c) upon plate-
glass against breakage; (d) upon boilers against explosion, and against
loss or damage to life or property resulting therefrom, and against loss
or damage resulting from the breakage of machinery; (e) against loss
by burglary or theft, or both; (£) to examine titles to real property anc
chattels real, and to procure and furnish information in relation thereto
and make and guarantee the correctness of searches for all instruments
liens or charges affecting the same, and guarantee or insure bonds and
mortgages, and the owners of property and chattels real, and others in-
terested therein against loss by reason of defective titles thereto, and
other encumbrances thereon ; (g) to guarantee and indemnify merchants,
traders and those engaged in business and giving credit, from loss and
damage by reason of giving and extending credit to their customers and
those dealing with them, and to cause itself to be insured in some other
solvent company against any loss or risk it may have incurred in the
course of its business, and upon the interest which it may have in any
property by means of any loans which it may have made on mortgage,
to guarantee the fidelity of persons holding places of public or private
trust, and generally to do and perform all other matters and things
proper to promote these objects. No company doing business in this
State, save an industrial life insurance company doing a sick benefit
business, shall undertake to do more than one of the several kinds of
insurance named in this section, unless said company shall first have a
paid-up capital, either in cash or invested in solvent securities permitted
by this act, of one hundred thousand dollars. Any company doing more
than one kind of business, as in this section provided, shall be required
to make a report and sworn statement for each kind of business done,
such as is required of companies doing but one kind of business in this
State; and no company referred to in this chapter, transacting business
in this State under this section, shall expose itself to loss on any one risk
or hazard to’ an amount exceeding twenty per centum on its paid-up
capital and: surplus, exclusive of the amount of any such risk secured
by collateral, unless the excess shall be reinsured by the same in some
good and reliable company having authority to transact business in this
State. But this limitation shall not apply to any bonds or sureties fur-
nished to the United States, or to any court or officer thereof. If a com-
pany is insolvent, and the president and directors, knowing it, make or
assent to further insurance, they shall be personally liable for any Joss
under such insurance. :

Chapter VIII.

§28. Whenever any person or corporation who now, or hereafter may
be required or permitted to give a bond, applies for the approval thereof,
any officer or body who is now or shall hereafter be required to approve
the sufficiency of such bonds, shall accept and approve the same whenever
its conditions are guaranteed by a company or corporation duly organized
or incorporated under the laws of this State or authorized to do business
therein, and which company shall have the certificate of the insurance
commissioner of the State authorizing it to do business therein ; provided,
however, that no securities shall be accepted on any bond for an amount
in excess of twenty per centum of the paid-up capital plus the surplus and
undivided profits of such surety company or corporation, unless the surety
shall be secured from the loss thereon beyond that amount by suitable
and sufficient collateral agreements of indemnity other than the principal
on said bond or by deposit with it in pledge or conveyance to it in trust
for its protection of property equal in value to the excess of its liability
over such limit, or if such liability is incurred in behalf of or on account
of any fiduciary holding property in a trust capacity, by such deposit or
other disposition of a suitable and sufficient portion of the estate so held
that no further sale, mortgage, pledge or other disposition can be made
thereof without such surety’s approval: and provided, further, that by
the execution of such bond that the surety shall not thereby incur in the
aggregate on behalf or on account of any one person, partnership, asso-
ciation or corporation a liability for an amount larger than one-fifth of
its paid-up capital plus its surplus and undivided profits, unless it shall
be secured from loss thereon beyond that amount by suitable and sufficient
collateral agreements of indemnity or other protection, as hereinbefore
provided.