Chap. 236.—An ACT to amend and re-enact sections 9 and 27 of chapter 1;
sections 13, 25, 31 and 40 of chapter 2; sections 4, 7, 8 and 10 of chapter 5,
and section 26 of chapter 8, and to add independent section 51 to chapter 2
of an act entitled an act concerning the bureau of insurance, and insurance,
guaranty, trust, indemnity, fidelity, security, and fraternal benefit companies,
associations, societies and orders, and imposing penalties for its violation,
approved March 9, 1906.

Approved March 12, 1908.

1. Be it enacted by the general assembly of Virginia, That sections
nine and twenty-seven of chapter one; sections thirteen, twenty-five,
thirty-one and forty of chapter two; sections four, seven, eight and ten
of chapter five, and section twenty-six of chapter eight of an act entitled
an act concerning the bureau of insurance, and insurance, guaranty,
trust, indemnity, fidelity, security, and fraternal benefit companies, as-
sociations, societies and orders, and imposing penalties for its violation,
approved March ninth, nineteen hundred and six, be amended and re-
enacted, and an independent section to be known as section fifty-one
of chapter two be added thereto, such sections, as amended, and such
independent section to read as follows:

Chapter I.

§9. All licenses to foreign or alien companies, and certificates of au-
thority to domestic companies, to transact business. in this State, shall
be granted and issued by the State corporation commission, through the
bureau of insurance, and under the seal of the said bureau. All such
licenses and certificates shall be signed by the commissioner of insur-
ance. The commissioner of insurance, in addition to the taxes and other
fees and charges imposed by law upon the granting of licenses or cer-
tificates of authority to such companies to do business in this State
shall be entitled to charge and demand a fee of five dollars on each and
every license or certificate of authority aforesaid issued by the bureau
of insurance, which shall be paid into the treasury of the Common-
wealth as provided in section thirty-one of this chapter, and placed by
the auditor of public accounts to the credit of the fund for the mainte-
nance of the bureau of insurance.

§27. The annual salary of the commissioner of insurance shall be
thirty-five hundred dollars. Except as otherwise provided in this act,
the salaries of his clerical force, together with the expenses incident and
necessary to the maintenance of the bureau of insurance, shall not ex-
ceed the sum provided under section twenty-eight of this chapter. The
salaries of the commissioner and clerks shall be paid semi-monthly.

Chapter II.

§13. Every such insurance, guaranty, trust, indemnity, fidelity, se-
curity or other like company, whether foreign, alien or domestic, shall
obtain annually from the commissioner of insurance a renewal of its
license or certificate of authority to transact business in this State: pro-
vided, that if the commissioner of insurance fails or refuses to renew
the license of any such company, then such company can as a matter
of right appeal from such decision to the State corporation commission
for a renewal of its license and such appeal shall be informal and heard
at once. Upon the issuance of such renewal the commissioner shall
collect a fee of five dollars in addition to the other taxes, fees and
charges imposed by law, which shall be paid into the treasury of the
Commonwealth as provided in section thirty-one of chapter one of this
act, and placed by the auditor of public accounts to the credit of the
fund for the maintenance of the bureau of insurance: provided, that
this section shall not apply to mutual fire insurance companies con-
ducting business exclusively in this State, and on a strictly mutual plan,
and that pays its losses wholly from assessments upon its members, and
that makes no division or distribution of its earnings or profits among
its members.

§25. The commissioner of insurance is required to make, or cause to
be made, a valuation annually of the policies of all legal reserve com-
panies chartered by this State in force on the thirty-first day of Decem-
ber to determine the reserve thereon as prescribed by law, and for this
purpose may require said companies to furnish, under oath, such infor-
mation as may be necessary to enable him to make such valuation. He
shall keep in his office a record of all valuations made and shall certify
same at the request of any company whose policies have been valued.

The commissioner of insurance is hereby authorized to assess against
every company whose policies are valued, a sum not exceeding one cent
for each one thousand dollars of insurance in force, which shall be paid
into the treasury of the Commonwealth, as provided in section thirty-
one of chapter one of this act, and placed by the auditor of public
accounts to the credit of the fund for the maintenance of the bureau of
insurance. Companies of other States or countries shall furnish to the
commissioner of insurance, at the time of filing its annual statement,
a certificate from the commissioner of insurance (or similar officer) that
he has made a valuation of the policies of said company in force on
December thirty-first, and that he finds the value of said policies to be
as reported in the company’s annual statement. Any company failing
to furnish such certificate shall have its policies valued by the commis-
sioner of insurance, as above provided, except for sub-standard or in-
dustrial risks.

§31. No fire insurance company chartered or incorporated under the
laws of this State, nor any foreign or alien fire insurance company
licensed to do business in this State, shall carry at its own risk a policy
or policies of insurance on any single risk for an amount in excess of
ten per centum of the capital stock and surplus of such company, or if a
mutual company, for an amount in excess of five per centum of its cash
assets: provided, that a mutual fire insurance company or association
organized 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 without distributing any portion of its profits among its policy-
holders, shall not be liable to the provisions of this section, nor affected
thereby: provided, that if such a policy in excess of ten per centum of
its capital stock and surplus shall be written, then the said company
shall be required to reinsure such excess in some company legally au-
thorized to do business in this State. Upon a complaint of a violation
of this section, it shall be the duty of the commissioner of insurance
(and he is hereby empowered and required to examine the books of such
company, if the company is incorporated by this State, or the books of
the agency of such company, if a foreign or alien company duly licensed
to do business in this State) to ascertain if such company has violated
the provisions of this section; and, if so, the commissioner of insurance
shall report the same to the State corporation commission, who shall,
after giving notice to such company to appear before the commission
and an opportunity to introduce evidence and be heard, as provided in
section thirteen of chapter one of this act, revoke the license or certificate
of authority, as the case may be, to do business in this State, and publish
such revocation as in said section and chapter directed. Such company
shall have the right of appeal to the supreme court of appeals as pro-
vided in said section of said chapter.

§40. Every fire insurance company doing business in this State shall]
file in the office of the commissioner of insurance on or before February
fifteenth of each year a statement of its financial condition on the thirty-
first day of December of the year previous, and every other insurance
company shall file a similar report in the office of the commissioner
of insurance on or before March first of each year. Said report shall
be upon the forms prescribed by the commissioner of insurance, and
shall be executed according to such rules as may be adopted by him not
inconsistent with the laws of the Commonwealth, and shall be verified
under oath by the president and secretary, and such other officers as
may be required by the commissioner of insurance, but no publication
thereof shall be required.
_ + §51. Every insurance company, except fraternal beneficiary associa-
tions, orders or societies, doing business in this State shall file annually
with the commissioner of insurance, on or before the first day of July,
and at such other times as they may be appointed, a list of the agents
of said company authorized to solicit insurance for it in the State of
Virginia, and each such agent shall be required to secure a certificate
of registration from said commissioner of insurance, for each company
proposed to be represented by him authorizing him to represent said
company for a period ending on the fifteenth day of July of each year,
the fee for said registration shall be one dollar per annum: provided,
that the commissioner of insurance may for good cause refuse to register
such agent or may at any time that it may come to his knowledge that
any agent has misappropriated any premium entrusted to him, or has
failed to apply said premium as directed by the policyholder or pros-
pective policyholder, may revoke or suspend the certificate of registra-
tion of said agent. The commissioner of insurance may summons wit-
nesses against any agent accused of wrong-doing, and any registered
agent may have a hearing before the commissioner of insurance on any
charge brought against him and may introduce evidence in his behalf;
provided, that if the commissioner of insurance revokes or suspends the
certificate of registration of any agent then such agent can, as a matter
of right, appeal from such decision to the State corporation commis-
sion and such appeal shall be informal and heard at once-

The certificate of registration shall state the date on which it was
issued, the name of the agent, and his address, and the name of the
company represented by him, and shall extend only to the individual
mentioned in it, and not to any clerk or employee of said agent.

Any person soliciting or procuring applications for any insurance
company authorized to do business in this State without having first
procured a certificate of registration as hereinbefore prescribed shall be
subject to a fine of not less than ten dollars nor more than one hundred
dollars.

Provided that this section shall not apply to mutual fire insurance
companies conducting business exclusively in this State and on a strictly
mutual plan and that pays its losses wholly from assessments upon its
members and that makes no division or distribution of its earnings or
profits among its members.

The fees provided for in this section shall be collected by the com-
missioner of insurance and shall be paid into the treasury of the Com-
monwealth as provided in section thirty-one of chapter one of this act,
and placed by the auditor of public accounts to the credit of the fund
for the maintenance of the bureau of insurance.

Chapter V.

84. Each such order, society, or association doing business in this
State, shall, on or before the first day of March of each year, make and
file with the commissioner of insurance a report of its affairs and con-
dition for the year ending the thirty-first day of December preceding.
Such report shall he made on uniform blanks prescribed by the conven-
tion of commissioners of insurance, if such uniform blanks be adopted
by the commissioners of insurance, and shall be verified under oath by
duly authorized officers of any such order, association or society.

§7. The commissioner of insurance shall, upon the application of any
order, society or association having the right to do business in this State,
as provided by this act, issue a permit in writing, authorizing it to do
business in this State, for which certificate and all proceedings in con-
nection therewith such order or association shall pay to the said com-
missioner of insurance a fee of twenty dollars, which shall be paid into
the treasury of the Commonwealth as provided in section thirty-one of
chapter one of this act, and placed by the auditor of public accounts to
the credit of the fund for the maintenance of the bureau of insurance.
Said fee shall be in lieu of all fees and license taxes, whether State,
county or municipal, except the annual registration fee required by
section one hundred and fifty-seven of the Constitution. This fee shall
be paid annually thereafter in advance.

§8. If any such order, association or society shall fail to make its
annual report within the time prescribed by law, or if upon examina-
tion the commissioner of insurance finds that any such order, associa-
tion or society is conducting its business fraudulently, or is insolvent,
or in any manner fails to comply with the provisions of this act, he
shall give notice of the same to the said order, association or society in
writing and afford it reasonable opportunity on a day named to show
cause why its license should not be suspended or revoked: provided, that
any such order, association or society shall have the right of appeal to
the State corporation commission, and should the State corporation com-
mission sustain the action of the commissioner of insurance, the said
order, association or society shall have the right of appeal as provided
in section thirteen of chapter one of this act. :

No such order, association, or society shall be declared insolvent so
long as its assets on hand and the amount of three regular assessments
that may be levied on its membership shall be equal to its liabilities.

Any officer, agent or person attempting to secure new members for
any order, association or society whose license has been revoked shall be
deemed guilty of a misdemeanor, and upon conviction thereof shall be
punished by a fine of not less than one hundred dollars, and each act in
violation of this provision shall be constituted a separate offense.

§10. No domestic fraternal beneficiary association, order or society
shall transfer its membership and assets to any association, order or
society or insurance corporation not licensed to do business in this State;
nor shall such transfer be made to any licensed society, order, -associa-
tion or corporation unless the agreement to so transfer has been ap-
proved by a two-thirds vote of the members of the supreme body, or any
other body competent to act during recess of the supreme body of such
association, order, or society whose membership is proposed to be trans-
ferred ; and by a two-thirds vote of the supreme body or any other body
competent to act during recess of supreme body of such order, associa-
tion or society proposing to accept such membership and assets. Any
domestic fraternal beneficiary association, order or society may accept
the membership and assets of any other such organization upon such
terms and conditions as may be agreed upon by said governing body or
bodies authorized to act under the constitution and laws of such order,
association or society: provided, however, that no such amalgamation
or merger shall become effective until a certified copy of the contract
between the two orders, association or societies has been submitted to
the commissioner of insurance and approved by him: provided, that any
such order, association, or society shall have the same right of appeal
hereunder as is provided in section thirteen of chapter two of this act.

Chapter VIII.

§26. Any bond or obligation executed, either heretofore or hereafter,
in the name and on behalf of a guaranty, trust, fidelity or surety com-
pany as guarantor or surety under authority of a power of attorney or
similar instrument, by an attorney, or attorneys, in fact, resident vice-
president or resident assistant secretary thereunto duly authorized, shall,
whether the seal of the company or the seal of the attorney, or attorneys
in fact, or a scroll by way of seal, be thereto affixed or not, have the same
force, effect and validity, and be in all respects as binding upon the com-
pany in the name and on behalf of which it is executed as if executed
by the company itself, through its proper officers, in due and formal
manner, under its common seal. All powers of attorney executed by
the above described companies authorizing any person, or persons, to
execute bonds or other undertakings on their behalf in the State of Vir-
ginia shall fully define the powers of such attorney, or attorneys, resident
vice-president or resident assistant secretary and the limitations thereof,
and shall be duly acknowledged and filed in the office of the commis-
sioner of insurance; and the powers of an attorney or attorneys in fact,
resident vice-president or resident assistant secretary to bind the prin-
cipal within the scope of the authority conferred by such power of
attorney shall continue until the expiration of the time limited in the
power of attorney for the continuance of such authority, if a limit be
prescribed in said instrument, or until the powers so granted are re-
voked by an instrument in writing executed under the seal of the com-
pany and duly acknowledged shall be filed in the office of the commis-
sioner of insurance. Within sixty days after the passage of this act,
every company of the class described in this act shall file in the office of
the commissioner of insurance a copy of the power of attorney, or other
instrument appointing such attorney in fact, resident vice-president or
resident assistant secretary, and thereafter there shall be filed in said
office a copy of the appointment of each additional attorney in fact,
resident: vice-president or resident assistant secretary, under seal of the
company, duly acknowledged, and likewise a copy, under seal, duly
acknowledged, of each revocation of authority previously given, and no
bond, or other undertaking, shall be executed by such additional attorney,
resident vice-president, or resident assistant secretary, until five days
after said instrument shall have been filed, nor shall the company be
relieved of the act of any such attorney, resident vice-president, or resi-
dent assistant secretary until five days after notice of the revocation of
such power shall be filed in the office of the commissioner of insurance ;
provided, that this shall not apply to a special power of attorney, given
to cover a single case, or to a special extension of all existing power of
attorney, given to cover a single case. Such powers of attorney shall
be recorded in the office of the commissioner of insurance, and for such
cases only the provision hereinbefore made that no bond shall be executed
until five days after filing notice of the execution of a power of attor-
ney shall not apply.

Upon the filing of said powers of attorney, the commissioner of insur-
ance shall send to the clerk of each court of the State five copies of a
pamphlet containing the name and address of each agent, attorney,
resident vice-president, or resident assistant secretary of all guaranty,
trust, fidelity or surety companies, and full information in regard to
the powers conferred upon them, and upon receiving notice of the ap-
pointment of an agent, attorney, resident vice-president, or resident
assistant secretary, or the revocation of authority previously conferred
upon an agent, attorney, resident vice-president, or resident assistant
secretary of any such guaranty, trust, fidelity, or surety company, it
shall be his duty to notify the clerks of all such courts in the State of
Virginia, of such appointment or revocation of authority, and it shall
be the duty of each clerk of a court to keep on file in his office all such
notices from the commissioner of insurance for public inspection and
information; provided, that in the case of special powers of attorney,
hereinbefore referred to, the commissioner of insurance shall notify only
the clerk of the court to which such special power of attorney, or special
extension of all existing power of attorney, applies. A copy of any
power of attorney or revocation thereof certified by the commissioner
of insurance under the seal of the bureau of insurance shall be received
in evidence in all courts in this State in lieu of the original records of
the company.