Chap. 334.—An ACT to amend and re-enact sections 7 and 17 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, pro-
viding a penalty for any violation hereof, and repealing all acts or parts of
acts in conflict herewith, approved March 16, 1920, as last amended by an
act approved March 16, 1932. [H B 239]

Approved March 29, 1934

1. Be it enacted by the General Assembly of Virginia, That sec-
tions seven and seventeen of an act entitled an act to provide for the
organization or admission and the regulation and taxation of incor-
porated 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, as last amended by an act approved March twenty-sixth, nine-
teen hundred and thirty-two, be amended and re-enacted so as to read
as follows:

Section 7. No corporation organized under this act shall issue
policies or transact any business of insurance unless it shall comply
with the conditions following, nor until the State Corporation Com-
mission acting upon a report of the Commissioner of Insurance and
Banking has, by formal license, authorized it to do so, which license
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 maxi-
mum single risk described herein;

(b) The “maximum single risk” shall not exceed twenty per cen-
tum of the admitted assets or three times the average risk or one per
centum of the insurance in force, whichever is the greater, any ap-
proved 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 Com-
missioner of Insurance and Banking or in which insurance companies
are authorized to invest and shall be equal, in case of fire or steam
boiler insurance to not less than twice the maximum single risk assumed
subject to one fire or to one loss not less than ten thousand dollars, and
in any other kind of insurance to not less than fifty thousand dollars ;

(d) For the purpose of transacting employer’s liability and work-
men’s compensation insurance the applications shall cover not less than
one thousand five hundred employees, each such employee being con-
sidered a separate risk for determining the maximum single risk;

(e) Satisfy the State Corporation Commission through the Com-
missioner of Insurance and Banking that its financial condition, meth-
ods of operation and manner of doing business are adequate to meet
its obligations to all policyholders;

({) For the purpose of transacting a fidelity and surety business,
it shall have a surplus over and above all liabilities, including reserves,
of not less than five hundred thousand ($500,000.00) dollars.

Section 17. Every such mutual insurance company whether or-
ganized within or without this State shall be subject to all provisions
of laws relating to the issuance of policies, policy forms, the super-
vision of rates, prohibiting of discriminations and rebates, annual
reports, deposit of bonds with the State Treasurer, reserves, taxes and
fees, and shall make its annual report in such form and submit to
such examination and furnish such information as may be required
by the State Corporation Commission through the Commissioner of
Insurance and Banking. As far as practicable the examination of
mutual. insurance companies organized outside of this State shall be
made in co-operation with the insurance departments of other states
and the forms of annual report shall be such as are in general use
throughout the United States; provided, that any such company may,
in lieu of making the bond deposit required herein, furnish a surety
bond, in form to be approved by the State Corporation Commission
of an amount within the limits prescribed by section forty-two hun-
dred and eleven of the Code of Virginia, or deposit with the state
treasurer or other appropriate state official of the state in which such
company is organized, bonds of the United States or of any state, city
or municipality of the United States, in the sum of not less than one
hundred and fifty thousand dollars and furnish the State Corporation
Commission of Virginia with a certificate of the state officer with
whom such deposit has been made setting forth that such deposit has
been made and is being held for the benefit of the policyholders of
such company.