CHAP. 111.—An ACT to amend and re-enact section 4211 of the Code of
Virginia as amended by an act approved March 25, 1920, relative to
deposit of bonds with treasurer. [S B 24]

Approved March 26, 1923.

1. Be it enacted by the general assembly of Virginia, That
section forty-two hundred and eleven of the Code of Virginia,
as amended by an act approved March twenty-fifth, nineteen
hundred and twenty, be further amended and re-enacted so as
to read as follows:

Section 4211. Deposit of bonds with treasurer; expense of
keeping same.—Unless otherwise provided, every insurance
company except a company doing exclusively a marine insurance
business, and except a life insurance company within the terms
of the provision hereinafter set out in this section, and every
guaranty, indemnity, fidelity, security, or other like company,
whether incorporated by the laws of this State or not, shall, by.
an agent employed to superintend or manage the business of
such company in this State, or through some authorized officer,
deliver to the treasurer of this State a statement, under oath,
of the amount of the actual unimpaired capital of such com-
pany, and deposit with him bonds of the United States, the State
of Virginia, or of the cities, towns or counties of this State, to
an amount to be fixed by the commissioner of insurance and
approved by him, of the actual cash value of not less than ten
thousand dollars nor more than fifty thousand dollars, but no
single bond so deposited shall exceed in amount the sum of ten
thousand dollars. The treasurer shall receipt to the company
for the bonds so delivered to him. Upon the face value of such
deposits the treasurer shall make an annual assessment of one-
twentieth of one per centum to be by him collected of the gen-
eral agent of such company for this State, or if there be no
general agent, then of any local agent doing business for said
company in this State to defray the expense of his office in the
safe-keeping and handling of such securities; and after the
payment of said expenses, whatever remains shall be paid by
him into the general fund of the State treasury. No part of
said assessment shall be used to increase the salaries or emolu-
ments of any person or persons connected with the office of said
treasurer. The treasurer shall collect such assessment an-
nually in the month of January. If the bonds so deposited be.
registered bonds, the company shall at the same time deliver to
the treasurer a power of attorney authorizing him to transfer
said bonds, or any part thereof, for the purpose of paying any
of the liabilities provided for in this title. The treasurer shall,
in the month of December in every year, examine all securities
so deposited with him for the purpose of ascertaining whether
any of them have depreciated or been reduced in value, and shall
forthwith require any such company to make good any deprecia-
tion or reduction inj value of the said securities, and he shall im-
mediately notify the commissioner of insurance in writing of
such action, together with a full description of the bonds so
deposited to make good their depreciation. The State shall be
responsible for the safe-keeping of all bonds or other securities
deposited with the treasurer of the State, and if said bonds or
any part thereof shall be lost, destroyed or misappropriated, the
State shall make good such loss to the company making the de-
posit. Bonds or other securities deposited with the State
treasurer under this section shall not be subject to taxation.
This section shall not apply to, nor shall any deposit of bonds
be required of, any mutual fire insurance company conducting
business exclusively in this State, and on a strictly mutual plan,
which pays its losses wholly from assessments upon its mem-
bers, and makes no division or distribution of its earnings or
profits among its members, or to fraternal benefit companies,
societies, or orders, nor to insurance companies doing exclusively
a marine business in this State.

Provided, That the provisions of this section shall not apply
to a life insurance company, whether incorporated by the laws
of this State or not, which shall deliver to the commissioner of
insurance of this State a certificate duly authenticated, showing
that such company has no deposit, with the insurance commis-
sioner, treasurer or other official body or officer of any State or
States of the United States for the protection of all the policy
holders of such company, bonds of the United States, of any
State of the United States, or of the cities, towns or counties
thereof, bonds or notes secured by mortgage or deed of trust on
unencumbered real estate of the market value in each case of
not less than double the amount loaned, or such other securities
as may be approved by the commissioner of insurance of a cash
market value of not less than two hundred thousand dollars.