Chap. 271.—An ACT in relation to Insurance Companies and Associa-
tions upon the assessment. plan.

Approved May 18, 1887.

1. Be it enacted by the general assembly of Virginia, That
it shall not be lawful for any corporation or association, or-
ganized under authority of the laws of this or any other
State, for the purpose of furnishing life or accident indemnity
or insurance upon the assessment plan, by its agents, to do
any business in this State, or for any person to act within
this State as agent in soliciting, procuring, receiving, or trans-
mitting any application for membership or insurance, in or
for or on bebalf of any such corporation or association, unless
such corporation or association shall be authorized to do busi-
ness in this State, and such agent licensed by the auditor of
public accounts, as hereinafter provided.

2, Any corporation or association organized under the
laws of this or any other State of the United States, for the
purpose of furnishing lite or accident indemnity or insurance
upon the assessment plan, or that is carrying on the business
ot life or accident insurance upon the essessment plan, shall
receive from the auditor of this State a certificate that it bas
complied with the provisions of this act, and is authorized to
do business in this State whenever such corporations or asso-
ciations shall deposit with him a certified copy of its charter
or articles of incorporation, a copy of its statement of busi-
ness for the year ending the thirty-first day of the next pre-
ceeding December, sworn to by the president and secretary,
or like officers thereof, setting forth the number and amount
of certificates of membership or policies in foree, and a de-
tailed account of its expenditures, income, assets, and liabili-
ties, and also a certificate sworn to by the president and see-
retary, or like officers thereof, setting forth that it has paid
and has the ability to pay its certificates or policies to tho
full limit named therein; that its certificates or policies are
payable only to bencticiaries having a legal, insurable interest
in the life of the member or insured; that an ordinary assess-
ment upon its members is sufficient to pay its maximum cer-
titicate of membership or policy therefor issued, if any, or
thereaiter to be issued to residents of this State, to the full
amount or limit named therein; a certificate from the auditor
or other like officer charged with the duty of executing or
enforcing the execution ‘of the insurance laws of its home

State, certifying that it is legally entitled to do business in
its home State; a copy of the application fur membership or
Insurance, and of each form thereof, if more than one form is
used; a copy of the form of certificate of membership or
policy, and of each form thereof, if more than one form is
used; a copy of the constitution and by-laws, and of each
and every edition thereof, which must show that all indemni-
ties to beneficiaries are in the main provided for by assess-
nents upon all surviving members.

3. No such corporation or association mentioned ino the
preceeding section shall transact any business in this State,
by an agent, unless it shall first file with the auditor a writ-
(en instrument or power of attorney, duly signed, sealed, and
acknowledged, authorizing some person Ww ho is a resident of
this State, to be named in such instrument or power of at-
turhey, to act as its attorney, and to acknowledye service of
process or upon Whom process may be served, for and on be-
half thereof, which service shall be taken and beld to be as
Valid as aif served upon such corporation or association ac-
cording to the laws of this or any other State: provided that
if such attorney shall die, be removed, or resign, or cease to
bea resident of this St: ite, it shall be the duty of such cor-
poration or association in like manner to appornt and desic-
nate another person, a resident of this State, to act as such
attorney, within thirty days after being notified by the au-
ditor of the vacancy in said office.

4. After authorizing such corporation or associition to do
business in this State, as provided in this act, the auditor
shall issue license to agents thereot, to be designated only by
such Corporation Or associauion through its general agent,
authorizing them to act as such agents for the term of one
Year; but such licenses must be reuewed annually.

9. Whoever solicits, procures, or receives in, or transmits
from this State any : applic ation other than his own, for mem-
bership or insurance in any Corporation or association em-
braced by the first: section of this act, shall be deemed) and
leld to be an agent of such corporation or assoclation Within
the meaning of this act.

6. Any person who shall transact any business for any
Corporation or association embraced by the first section of’
this act, as an agent thereof, within the meaning of’ this act,
Without first procuring aud having a license from the auditor
lo act as such agent, or after such license has been suspeuded
or revoked, shall be deemed and held to be cuilty of a mis-
demeanor, and shall be subject toarrest, and upon conviction
for kuch offence, shall be fined not less than fifty dollars nor
more than one bundred dollars for each offence, and shall be
Imprisoned until such fine shall be paid or replevied; and ju-
risdiction is hereby given and conferred upon justices of the
peace, police, city and county court judges, for the trial of
«wid misdemeanor and the enforcement of the penalty im-
posed by this section.
7. Any agent, physician, or other person who shall know-
ingly secure or cause to be secured a certificate of member-
ship on any person without his knowledge or consent, or by
means of misxrepresentations, false, fraudulent, or untrue
statements, be instrumental in securing a certificate of mem-
bership on any aged or imfirm person, or in restoring to
membership any person not in an insurable condition, shall
be deemed guilty of a misdemeanor, and upon conviction
thereot, shall be fined ina sum not less than one hundred
dollars nor more than one thousand dollars, or be imprisoned
in a county jail not less than thirty days nor more than one
year, or both, in the discretion of the court; and said cer-
titicate or renewal so secured shall be absolutely void.

8. Every corporation or association which may be doing
business in this State, under the provisions of this act, shall,
on or before the first day of March in each year after it com-
mences to do business in this State. make and file with the
auditor of this State a report of its affairs and operations
during the year ending the thirty-first day of December next
preceding. Such annual reports shall be made upon blank
forms to be provided and furnished by the auditor, and shall
be veritied under the oath of the president and secretary, or
other like ofticers, and shall be published, or the substance
thereof, in his annual report by the auditor.

9. There shall be paid to the auditor by each corporation .
or association which may be authorized to do business in this
State under the provisions of this act, the following licengeg
fees, to-wit: For filing charter or articles of incorporation,
et cetera, when certificates of authority shall be first issued,
and all licenses issued during the ensuing year, a fee of two
hundred dollars; for filing annual report, and issuing license
each year thereafter, a fee of two-bundred dollars; said fees
to be in full of fees for filing annual statement, licenses to
agents, and for certificate of compliance or authority. In
addition to the above fees, every such corporation or associa-
tion shall, on or before the first day of March in each year.
report under oath of its president and secretary, or otber
like officers, to the auditor the gross amount received on new
business done in this State by such corporation or association
during the year ending the thirty-first day of December next
preceding, or since the last returns were so made, and sball,
at the same time, pay into the treasury of this State a tax of
one dollar upon each one bundred dollars of such vross
amount so reecived by the home office of the said assovia-
tion or corporation. Said fees and taxes which shall be paid
in lawful money 8f the United States and not in coupons,
shall be in full and in lieu of all other State, county, town,
and city licenses, taxes, and fees: provided however, that if
such corporation or association should at any time be the
owner of any real or personal property situated in this State,
such property shall not be exempt from taxation by reason
of the provisions of this section.

10. If such corporation or association shall :t any time

fail or refuse to make the annual report, or to pay the tax on
the gross amount received in this State, as herein above pro-
vided, the auditor shall forthwith suspend or revoke all au-
thority to such corporation or association, and all its agents,
to do business in this State, and shall publish such revocation
in some newspaper published in this State, and may proceed
to collect whatever sum of money may be due or owing on
account of such tax, by suit or action in the name of the
commonwealth of Virginia, against such corporation or asso-
ciation.

11. Nothing in this act shall apply or be construed to
require any fraternal, secret, or industrial societies, such as
the Independent Order of Odd-Fellows, Free and Accepted
Masons, Knights of Honor, Knights of Pytbias, Royal Arca-
num, or like associations by whatever name known, and when
benefits, charity or relief is payable by the grand or supreme
bodies of the same, and is derived from assessments upon
subordinate lodges or councils, to file reports with the audi-
tor or come under the provisions of this act.

12. All acts or parts of acts inconsistent with this act are
hereby repealed.

13. This act shall be in torce from its passave,