CHAP. 509.—An ACT to amend and re-enact section 4211 of the Code of Vir-
ginia. {S B 214]

Approved March 25, 1920.

1. Be it enacted by the general assembly of Virginia, That sec-
tion forty-two hundred and eleven of the Code of Virginia be amended
and re-enacted so as to read as follows:

Sec. 4211. Deposit of bonds with treasurer; expense of keeping
same; local license tax.—Unless otherwise provided, every insurance
company except a company doing exclusively a marine insurance busi-
ness, and except a life insurance company within the terms of the
provision hereinafter set out in this section, and every guaranty,
indemnity, fidelity, security, or other like company, whether incor-
porated by the laws of this State or not, shall, by an agent employed
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 unimpaired
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 insurance 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 deposit
shall exceed in amount the sum of ten thousand dollars. The treasurer
shall receipt to the company for the bonds so delivered to him.
Upon the face value of such deposits the treasurer of the Common-
wealth shall be authorized to 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 expenses of his office in the safekeeping and handling of
such securities; and after the payment of said expenses, whatever
remains shall be retained as a compensation to himself for his care
and labor in connection with said securities, a detailed statement of
which shall be furnished by him to each session of the general assem-
bly. 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 at-
torney 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 deprecia-
tion or reduction in value of the said securities, and he shall imme-
diately 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 o!
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 com-
pany 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 pars
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 business in this State.
Provided: That the provisions of this section shall not apply to a
life insurance company, whether incorporated by the laws of this State
or not, which shall deliver to the commissioner of insurance of this
State a certificate duly authenticated, showing that such company
has on deposit, with the insurance commissioner, treasurer or other
official body or officer of any State or States of the United States
for the protection of all the policy holders 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 of not less than two hundred thousand dollars. —
This act shall become effective February 1, 1922.