Chap. 302.—An ACT to amend the Code of Virginia by adding thereto a new
section to be numbered section forty-two hundred and thirty-five-a, prohibiting
any person from acting as agent for any unauthorized insurance company or
other insurer; defining insurance company or other insurer; providing for
penalties for violations; and providing for certain exceptions. [fH B 90]

Approved March 29, 1934

1. Be it enacted by the General Assembly of Virginia, That the
Code of Virginia be amended by adding thereto a new section, to be
numbered section forty-two hundred and thirty-five-a, which new sec-
tion shall read as follows:

Section 4235-a. No person to act as agent for unauthorized insur-
ance company or other insurer; definition; penalties; exceptions.—No
person shall act as agent in this State for any insurance company or
other insurer which is not authorized or licensed to do an insurance
business in this State, nor shall any person directly or indirectly ne-
gotiate for or solicit applications for insurance policies or other insur-
ance contracts of, or for membership in, any insurance company or
other insurer which is not authorized or licensed to do an insurance
business in this State. The term “insurance company or other insurer,”
as used in this section, shall be held to mean and include any associa-
tion, society, company, corporation, joint stock company, individual,
partnership, trustee, or receiver engaged in the business of assuming in-
surance risks upon persons or property, and any Lloyds organization,
assessment or co-operative life, casualty or fire company, reciprocal or
inter-insurance exchange, fraternal beneficiary association, order or
society, and any company, association or society, whether organized for
profit or not, conducting a business including any of the features or
principles of insurance.

Any person violating any of the provisions of this section shall be
guilty of a misdemeanor and upon conviction thereof shall be fined not

less than ten dollars nor more than one thousand dollars for each of-
fense, and any such person shall be personally liable to any resident of
this State having a claim against any such unauthorized insurance com-
pany or other insurer under any contract or policy which such person
has solicited or negotiated, or has aided in soliciting or negotiating.
Provided, that the provisions of this section shall not apply to any
person who negotiates with an unauthorized insurance company or other.
insurer for insurance upon his own life or property; nor shall the pro-
visions of this section apply to the officers, agents or representatives of
any insurance company or other insurer, which is in process of organ-
ization under the laws of this State, and which is authorized tempor-
arily to solicit or secure members or applications for insurance for the
purpose of completing such organization; nor to residents of this State
acting for any such company or association whose contracts of insurance
or membership are limited to the employees of a corporation doing bus-
iness under the laws of Virginia.