Chap. 27.—An ACT to amend and re-enact section 4211 of the Code of Virginia,
as heretofore amended, in relation to deposits of bonds with the Treasurer.

[H. B. 53]
Approved September 7, 1933

1. Be it enacted by the General Assembly of Virginia, That section
forty-two hundred and eleven of the Code of Virginia, as heretofore
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 or a title insurance company within
the terms of the provsions hereinafter set out in this section, and every
guaranty, indemnity, fidelity, security, or other like company, whether
incorporated by the laws of this State or not, shall, by an agent em-
ployed to superintend or manage the business of such company in this
State, or through some authorized officer, deliver to the Treasurer of
this State a statement, under oath, of the amount of the actual unim-
paired capital of such company, and deposit with him 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 Commissioner of Insur-
ance and approved by him, of the actual cash value of not less than
ten thousand dollars nor more than fifty thousand dollars, but no single
bond so deposited shall exceed in amount the sum of ten thousand dol-
lars. 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 company 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 expense 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 January. If the
bonds so deposited be registered bonds, the company shall at the same
time deliver to the Treasurer a power of attorney authorizing him to
transfer said bonds, or any part thereof, for the purpose of paying any
of the liabilities provided for in this title. The Treasurer shall, in the
month of December, in every year, examine all securities so deposited
with him for the purpose of ascertaining whether any of them have
depreciated or been reduced in value, and shall forthwith require any
such company to make good any depreciation or reduction in value of
the said securities, and he shall immediately notify the Commissioner
of Insurance in writing of such action, together with a full description
of the bonds so deposited to make good their depreciation. 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 insurance
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, societies,
or orders, nor to insurance companies doing exclusively a marine busi-
ness in this State.

Provided, that the provisions of this section shall not apply to a life
1933] ACTS OF ASSEMBLY 57

insurance company, or a title insurance company, whether incorporated
by the laws of this State or not, which shall deliver to the Commis-
sioner of Insurance of this State a certificate, duly authenticated, show-
ing that such company has on deposit, with the Insurance Commis-
sioner, 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
company, 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 Commissioner of Insurance
of a cash market value if the company is a life insurance company 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 exclusively to
the classes of insurance authorized by clause first of section forty-
three hundred and five of the Code of Virginia and to automobile theit
and burglar insurance under subsection (e) of clause second, section
forty-three hundred and five of the Code of Virginia, which shall de-
liver to the Treasurer of the State, 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 Corporation Commis-
sion, 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 Corporation Com-
mission 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.

2. An emergency existing, this act shall be in force from its passage.