Chap. 282.—-An ACT to require non-resident persons, firms, corporations, asso-
ciations or societies who or which advertise and/or offer for sale any form
of insurance or contract of indemnity within the State of Virginia to appoint
the Secretary of the Commonwealth and his successor in office as agents
upon whom process may be served; to require certain information regarding
insurance and contracts of indemnity to be filed with the State Corporation
Commission; and to empower the State Corporation Commission to issue,
cease and desist orders against persons, firms, corporations, associations,
or societies for failure to comply with the provisions of this act. [S B 173]

Approved March 28, 1938

1. Be it enacted by the General Assembly of Virginia, as follows:

Section 1. It shall hereafter be unlawful for any non-resident
person, firm, corporation, association, or society, to advertise and/or
offer for sale within this State, through any medium whatsoever, any
form of insurance or contract of indemnity unless such person, firm,
corporation, association, or society is licensed by or is under the super-
vision of the agency in every State having jurisdiction under the laws
relating to the advertising and/or sale of insurance and contracts of
indemnity from which State any advertisement or offer for sale may
emanate; and unless such person, firm, corporation, association, or
society shall first, by written power of attorney, appoint the Secretary
of the Commonwealth of Virginia and his successor in office, as the
agents of any such person, firm, corporation, association, or society,
in any action or proceeding arising out of the advertising, offering
and/or sale of any form of insurance or contract of indemnity, or in
the furtherance thereof within this State and the Secretary of the
Commonwealth shall be authorized to enter appearance in behalf of
such non-resident person, firm, corporation, association, or society.
The service of process shall only be made upon the Secretary of the
Commonwealth, or in his absence, upon the person in charge of his
office. A copy of such power of attorney, duly certified and authen-
ticated, shall be filed with the Secretary of the Commonwealth, and
copies thereof duly certified by the Secretary of the Commonwealth
shall be received as evidence of service in all courts of this State. No
judgment shall be entered against any such non-resident under this
section until after the process has been served, as aforesaid, at
least ten days. Notice of the service of such process on the Secretary
of the Commonwealth shall be given to non-residents specified herein
in the same manner as provided for by section thirty-eight hundred and
forty-six of the Code of Virginia, nineteen hundred and nineteen,
and the fees allowed by section thirty-eight hundred and forty-six shall
be applicable to this act.

Section 2. It shall also be unlawful for any non-resident person,
firm, corporation, association, or society, or any agent thereof, to ad-
vertise and/or offer for sale within this State any form of insurance or
contract of indemnity unless such person, firm, corporation, association,
or society shall file with the Bureau of Insurance of the State Corpora-
tion Commission, every six months after the passage of this act, a
full and complete statement as to the methods employed in advertising
and selling insurance and/or contracts of indemnity, the names and
addresses of all officers and directors or owners of the business, a finan-
cial statement of the condition of the advertiser, which statement shall
be certified to by a certified public accountant or the official of the
State whose duty it is to administer the insurance laws of the State
from which any such advertisement or offer for sale emanates, and
such other information as may be required by the State Corporation
Commission of Virginia and in such form as may be prescribed by
the commission.

Section 3. For the purposes of this act the State Corporation
Commission shall have jurisdiction at the instance of any resident of
this State, upon affidavit by such resident, duly sworn to and filed in
the clerk’s office of the State Corporation Commission, or of its own
motion, and after five days notice, which notice shall be served: upon
the Secretary of the Commonwealth and his successor in office as
agents of such non-residents as specified herein and who or which have
complied with the provisions of section one of this act, or such notice
shall be sent by registered mail, return receipt requested, to the last
known address of any such non-resident as specified herein and who
or which has not complied with the provisions of section one of this
act, and, in either case, who or which fails to comply with any and
all provisions of this act before sending or causing to be sent into
this State any advertisement and/or offer for the sale of any form of
insurance and/or contracts of indemnity, to issue an order directing
any such person, firm, corporation, association, or society to cease
and desist from advertising and/or offering to sell any form of insur-
ance or contract of indemnity within the State of Virginia.

Section 4. It being the policy of this State to protect the resi-
dents thereof against fraud and deception in the advertising and/or
sale of insurance or contracts .of indemnity, the State Corporation
Commission is hereby directed to make public any and all notices
and orders that may be issued under the provisions of this act.

Section 5. Compliance with this act shall not be construed as
comphance with any of the other provisions of the insurance laws
of this State and nothing in this act shall apply to any insurance
company or reciprocal or inter-insurance exchange, authorized to do
ousiness in this State and supervised by the Bureau of Insurance of
the State Corporation Commission.