Chap. 108.—An ACT to amend and re-enact section 4211 of the Code of Virginia,
as heretofore amended, in relation to deposits of bonds and securities with the
Treasurer by insurance, guaranty, indemnity, fidelity, title insurance, security,
etc., companies. [S B 173]

Approved March 14, 1934

1. Be it enacted by the General Assembly of Virginia, That sec-
tion forty-two hundred and eleven of the Code of Virginia, as here-
tofore amended, be amended and re-enacted so as to read as follows:

Section 4211. Unless otherwise provided, every insurance company
except a company doing exclusively a marine insurance business, and
except a life insurance company, a fraternal benefit society, order or
association, or a title insurance company, within the terms of the pro-
visions hereinafter set out in this section, and every guaranty, indem-

nity, 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 State Corporation Commission of this
State a statement, under oath, of the amount of the actual unimpaired
capital of such company, and deposit with the State Treasurer 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 said State Cor-
poration Commission and thereby approved, of the actual cash value
of not less than ten thousand dollars nor more than fifty thousand dol-
lars, 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 general agent of such com-
pany 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 ex-
pense 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 emoluments of any
person or persons connected with the office of said Treasurer. The
Treasurer shall collect such assessment annually in the month of Jan-
uary. If the bonds so deposited be registered bonds, the company shall
at the same time deliver to the Treasurer a power of attorney and a
resolution of its board of directors authorizing him to transfer said
bonds, or any part thereof, for the purpose of paying any of the liabili-
ties provided for in this title. (The Treasurer shall, in the month of
December, in every year, certify to the State Corporation Commission
the kind and face value of all securities, bonds, notes, mortgages or
deeds of trust, so deposited with him; the State Corporation Commis-
sion shall, on or before the fifteenth day of February next thereafter,
examine such list and if necessary such securities and thereupon value
such securities for the purpose of ascertaining whether any of them
have depreciated or been reduced in value, and shall forthwith require
each such company to make good any such depreciation. or reduction by
depositing additional securities with the State Treasurer. )

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 deposit.
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 in-
surance company conducting business exclusively in this State, and on
a strictly mutual plan, which pays its losses wholly from assessments
upon its members, and makes no division or distribution of its earnings
or profits among its members, or to fraternal benefit companies, so-

cieties, 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, or a title insurance company, whether incorporated
by the laws of this State or not, which shall deliver to the State Corpo-
ration Commission of this State a certificate, duly authenticated, show-
ing that such company has on deposit, with the insurance commissioner,
treasurer or other official body or officer of any state or states of the
United States for the protection of all the policyholders of such com-
pany, 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 State Corporation Com-
mission of a cash market value if the company is a life insurance com-
pany of not less than two hundred thousand dollars and if the company
is a title insurance company of not less than one hundred thousand
dollars; and provided, further, that the provisions of this section shall
not apply to a fire insurance company, whether incorporated by the
laws of this State, or not, which confines its business in this State ex-
clusively to the classes of insurance authorized by clause first of sec-
tion forty-three hundred and five of the Code of Virginia and to auto-
mobile theft and burglar insurance under subsection (e) of clause
second, section forty-three hundred and five of the Code of Virginia,
which shall deliver to the State Corporation Commission, the statement
under oath, required by this section, and shall, in lieu of such deposit of
such bonds, enter into a bond with surety, approved by the State Corpo-
ration Commission, for a sum, to be fixed by the State Corporation
Commission, in the penalty of not less than ten thousand dollars nor
more than fifty thousand dollars, with such condition as the State Corpo-
ration Commission shall require.

In event that surety bond is given in lieu of securities as required
by this section the same fee or assessment shall be paid by the com-
panies depositing surety bond as is required in cases of a deposit of
securities.