Chap. 194.—An ACT to Amend and Re-enact the Ist and 2d Sections of an
Act Passed February 3d, 1866, Entitled an Act to Require a Deposit of
Securities to be Made by Foreign Insurance Companies Doing Business
in this State.

Approved March 25, 1871.

1. Be it enacted by the general assembly, That the first and
second sections of an act entitled an act to require a deposit
of securities to be made by foreign insurance companies doing
business in this state, passed February third, eighteen hundred
and sixty-six, be amended and re-enacted so as to read as fol-
lows:

“$1. Be it enacted by the general assembly, That no in-
surance company which has not been incorporated under the
laws of the state of Virginia, shall carry on its business in this
state without first obtaining a license to transact its business in
the manner prescribed by law; and no such company shall
receive such license until it shall have deposited with the
treasurer of the state, bonds of the state of Virginia, or of
public corporations guaranteed by the state of Virginia, or
bonds of the United States, or bonds of the cities of Rich-
mond, Petersburg, Lynchburg, Norfolk, or Alexandria, or first
mortgage railroad bonds of a railroad company chartered by
this state, or bonds of individuals, residents of this state, exe-
cuted for money loaned by said company since the third day
of February, eighteen hundred and sixty-six, and secured by
deed of trust on real estate in this state worth double the value
of such loan or debt, together with the policies of insurance
upon the property so mortgaged, approved by the said treas-
urer, or bonds of municipal corporations of this state, secured
by deed of trust on real estate to an amount which shall be
equal to five per centum of the capital stock of the company
depositing the same, such deposit being estimated at the mar-
ket value thereof, at the time such deposit is made: pro-
vided, that in no case shall any company receive a license to
do business in this state without first making a deposit of
securities according to the provisions of this act, the cash value
of which shall be at least ten thousand dollars; and no com-
pany shall be required to deposit such securities to an amount
exceeding, in cash value, fifty thousand dollars. The treasurer
shall have power to call upon any such insurance company to
make good any reduction in the value of the securities de-
posited by it as aforesaid, so as to bring their true value up to
the amount tobe deposited by it, and it shall be his duty to
examine all securities so deposited with him in the month of
December of every year, for the purpose of ascertaining
whether any of them have become depreciated.

Ҥ 2. Any such company desiring to carry on the business
of insurance, shall, by an agent employed to superintend or
manage its business in this state, deliver, under oath, to the
treasurer, a statement of the amount of the capital stock of
said company, and make with him the deposit of bonds as pre-
scribed in the preceding section, but the bonds so deposited
shall not be in sums exceeding five thousand dollars; and the
treasurer shall thereupon give to the said agent a receipt for
the same, and upon the exhibition of the said receipt to a com-
missioner of the revenue or township assessor of the county
or corporation in which an office of the said company in this
state is, or is intended to be located, and having paid the
specific license tax which may be imposed thereon, a license
shall be issued, in the manner provided by law, to said com-
pany to carry on its business; and if, at the end of the period
for which a license is given, the said company shall desire
another license, it shall only be given on the certificate of the
treasurer that the bonds required by this act to be deposited
with him, are in his possession.”

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