Chap. 421.—An ACT to prohibit any fire insurance company, incorporated or
licensed in this state, from issuing a policy or policies of insurance on any
single risk for more than ten per cent. of its capital stock and assets; or, if
a mutual company, for more than five per cent. of its cash assets; and pro-
viding the penalty for so doing.

Approved February 26, 1896.

1. Be it enacted by the general assembly of Virginia, That no fire
insurance company chartered or incorporated under the laws of this
state, nor any foreign fire insurance company licensed to do business
in this state, shall carry at its own risk, a policy or policies of insur-
ance on any single risk for an amount in excess of ten percentum
of the capital stock, or assets, of such company; or, if a mutual com-
pany, for an amount in excess of five per centum of its cash assets;
provided that a mutual fire insurance company or association organ-
ized and doing business in any county or counties, or city or cities
in this state, and paying its losses solely from assessments upon its
members, or distributing any portion of its profits among its policy
holders, shall not be liable to the provisions of this act nor affected
thereby; provided that a purely mutual fire insurance company or
association, organized and doing business in any county or city, or
counties or cities in this state, and paying its losses solely from
assessments upon its members, shall not be liable to the provisions
of this act, nor affected thereby; provided that if such a policy in
excess of ten per centum of its capital stock shall be written, then
the said company shall be required to reinsure such excess in some
company legally authorized to do business in this state.

2. Upon a complaint of an infraction of this act, it shall be the
duty of the auditor of public accounts or insurance commissioner, if
appointed (and he is hereby empowered and required to examine the
books of such company, if a company incorporated by this state, or
the books of the agency of such company, if a foreign company, duly
licensed to do business in this state), to ascertain if such company
has violated the provisions of this act; and if so, the auditor of
public accounts shall revoke the license of such company, and cause
his decision and action to be published for five consecutive times in
some newspaper in the locality in which such company has its prin-
cipal office in this state; but nothing in this act shall be construed
as applying to or any ways effecting the Farmers and mechanics
benevolent of Roanoke and Botetourt counties.

3. This act shall be in force from its passage.