Chap. 233.—An ACT to amend and re-enact subsection (i) of section 6, and
section 7, of an act entitled “an act to provide for the organization or ad-
mission and the regulation and taxation of incorporated mutual insurance
companies other than life, providing a penalty for any violation hereof and
repealing all acts or parts of acts in conflict herewith,’ approved March 16,
1920. [S B 220]

Approved March 16, 1928

1. Be it enacted by the general assembly of Virginia, That sub-
section (i) of section six, and section seven of an act entitled “an
act to provide for the organization or admission and the regulation
and taxation of incorporated mutual insurance companies other than
life, providing a penalty for any violation hereof and repealing all
acts or parts of acts in conflict herewith,” approved March sixteenth,
nineteen hundred and twenty, be amended and re-enacted to read
as follows:

Section 6. (1) Miscellaneous insurance.—Against loss or dam-
age by any hazard upon any risk not provided for in this section,
including fidelity and surety, which is not prohibited by statute or
at common law from being the subject of insurance, excepting life
insurance.

Section 7. No corporation organized under this act shall issue
policies or transact any business of insurance unless it shall com-
ply with the conditions following, nor until the State corpotation
commission acting upon a report of the commissioner of insurance
has, by formal license, authorized it to do so, which licensé shall
not issue until the corporation has complied with the following
conditions:
(a) It shall hold bona fide applications for insurance upon which
it shall issue simultaneously, or it shall have in force, at least twenty
policies to at least twenty members for the same kind of insurance
upon not less than two hundred separate risks, each within the
maximum single risk described herein;

(b) The “maximum single risk” shall not exceed twenty per
centum of the admitted assets or three times the average risk or
one per centum of the insurance in force, whichever is the greater,
anv approved reinsurance taking effect simultaneously with the
policy being deducted in determining such maximum single risk;

(c) It shall have collected a premium upon each application
which premiums shall be held in cash or securities approved by the
commissioner of insurance or in which insurance companies are
authorized to invest and shall be equal, in case of fire or steam
holler insurance to not less than twice the maximum single risk
assumed subject to one fire or to one loss nor less than ten thou-
sand dollars, and in any other kind of insurance to not less than
hity thousand dollars;

(d) For the purpose of transacting employer's lability and
workmen’s compensation insurance the applications shall cover not
vss than one thousand five hundred employees, each such employce
veing considered a separate risk for determining the maximum
ingle risk;

(e) Satisfy the State corporation commission through the com-
zissioner of insurance that its financial condition, methods of opera-
«on and manner of doing business are adequate to meet its obliga-
ons to all policyholders ;

(t) For the purpose of transacting a fidelity and surety business,

shall have a surplus over and above all habilities, including re-
rves, of not less than five hundred thousand ($500,000) dollars.

(zg) Any company doing a fidelity and surety business under
1s act shall be subject to sections 4211, 4212, 4213, 4214, 4215,
16, 4217, 4218, 4344, 4348 and 4349 of the Code of Virginia; pro-
led, however, that in its discretion the State corporation commis-
1 may permit any such company, in lieu of making the deposits
yuired under section 4211, to furnish a surety bond of an amount
‘hin the limits prescribed in said section, but in such form as the
‘1 commission may approve.