Chap. 445.—An ACT to amend and re-enact section 75 of chapter 400 of the
acts of the general assembly of 1918, page 637, commonly known as_ the
workmen's compensation act, as last amended by chapter 7, of the acts of
the general assembly of 1926, page 7, and to appropriate funds for the
carrving into effect the performance of the duties required of the industrial
commission under this act. [H B 218]

Approved March 26, 1928

1. Be it enacted by the general assembly of Virginia, That section
seventy-five of chapter four hundred, of the acts of the general assem-
bly of nineteen hundred and eighteen, page six hundred and thirty-
seven, commonly known as the workmen's compensation act, as last
amended by chapter seven, of the acts of the gcneral assembly of nine-
teen hundred and twenty “SIX, page seven, be amended and re-enacted
so as to read as follows

Section 75. (a) The rates charged by all carriers of insurance,
including the parties to any mutual, reciprocal, or other association,
Writing insurance against the Habilitvy for compensation, under this act,
shall he fair, reasonable and adequate, and all risks of the same kind
and degree of hazard shall be written at the same rate by the same
carrier. Subject to such rules as the State corporation commission may
prescribe, the basic rates mav be modified in accordance with a plan
of physical or schedule, and experience rating.

After ninety days from the date this act becomes etfective, no such
company shall do anv business in this State without a pernut from the
State corporation commission. Such permit shall be given upon ap-
plcation therefor, to any such company upon. the said commission
heine satistied of the solvency of such company and its ability to per-

corny ot] ots undertakings ; prov ded. if it be a foreign corporation, it
has complied with the provisions of section thirty-eight hundred and
forty-seven of the Code of Virginia: and provided further, that the
rates which such company, whether domestic or foreign, proposes to
charge for writing msurance under the provisions of this act, be
approved by the commission as next herein provided.

Every such company shall, within thirty davs from the date this
act becomes effective. file with the State corporation commission,
where the same shall be kept open for public inspection, schedules
showing the rates charged, or proposed to be charged. for writing in-
surance on the various kinds of risks, which such company proposes
to carry, and the rates for anv and all renewals thereof: and no such
company shall be granted a permit to do business in Virginia unless
and until such rates shall be approved by said commission, nor shall
any policy written by anv such company without such permit be valid.

Upon any such schedules of rates being so filed. the said com-
mission shall forthwith notify such company in writing, whether or
not the same meets with its approval, and if not, it shall in said notifi-
cation, appoint a day not less than thirty days from the date thereof,
for a hearing thereon.

If, upon such hearing, it shall be made to appear to the satisfaction
of the said commission that the rates set forth in such schedule are
fair and reasonable, the same shall be set up. approved and established,
and a permit tssucd to such company as provided for in section two
of this act. If, however, the commission, after a full hearing and
investigation, shall be of opinion that such rates. or any of them, are
unfair, unreasonable or discriminatory, it shall have the right to set
up a schedule of rates which it may decm to be just and reasonable.
If such company shall agree to the schedule of rates so set up, such
agreement shall be entered of record by the commission and_ such
schedule shall be the established rates for such company, and a pernut
shall thereupon be issued to it as hereinbefore provided. If such
company shall not be satished with the schedule of rates so set up by
the commission, it shall have the right of appeal to the supreme
court of appeals from such decision or order as the commission may
finally enter.

No change shall thereafter be made in any such schedule of rates,
approved and established by the commission except upon proceedings
similar to, and conducted in the same manner as proceedings for
change of rates, as set forth in section four thousand and sixty-six of
the Code of Virginia, and acts amendatory thereof, and the proceed-
ings on appeals as herein provided for, shall be similar to proceedings
on appeals as set forth in the same section.

The commission shall have the right to revoke any permit issued to
any such company, for violation of any provision of this act.

(b) Each such insurance carrier shall report to the State corpora-
tion commission, in accordance with such reasonable rules as the com-
mission may at any time prescribe, for the purpose of determining the
solvency of the carrier, and the fairness, reasonableness and adequacy
of its rates; for such purpose the said commission may inspect the
books and records of such insurance carrier, and examine its agents,
officers and directors under oath; and said commission shall have the
power to, in such manner and by such means as it may deem proper
and adequate, gather statistics and information, and make investigations
concerning rates for such insurance, and to that end, it may take into
consideration, the income and earnings from any and every source
whatever, of any such company, and shall at any time, call upon
members of the industrial commission to sit with it in an advisory
capacity, at any investigation or hearing concerning such rates.

Authority is hereby conferred upon the State corporation commis-
sion to make such arrangements with the industrial commission, as may
be agreeable to the industrial commission, for collecting, compiling.
preserving and publishing statistical and other data in connection with
the work of regulating workmen’s compensation insurance rates, and
for the division of the expenses thereof, to the end that duplication of
work and expenditures may be avoided; and whenever it deems proper
with the consent of the industrial commission, it may appoint menter:
of the industrial commission, or its employees, as special agents of the
State corporation commission to take testimony and make reports witt
reference to any matter involving questions of workmen’s compensa-
tion insurance rates.

(c) For the purpose of paying the salaries and necessary expenses
of the industrial commission and its assistants and employees in ad.
ministering and carrying out the provisions of this act, an administra.
tive fund shall be created and maintained in the following manner:

Every person, partnership, association, corporation, whether or.
ganized under the laws of this or any other State or country, company
mutual company or association, the parties to any inter-indemnity con
tract or reciprocal plan or scheme, and every other insurance carrier
insuring employers in this State against hability for personal imyjurte:
to their employees, or death caused thereby, under the provisions o1
this act, shall, as hereinafter provided, pay a tax upon the premium:
received, whether in cash or notes, in this State or on account of!
business done in this State, for such insurance in this State, at thre
rate of three and one-half per centum of the amount of such premiun
which tax shall be in lieu of all other taxes on such premiums, which
tax shall be assessed and collected as hereinafter provided; provided,
however, that such insurance carriers shall be credited with all can-
celled or returned premiums, actually refunded during the year on
such insurance, and with premiums on reinsurance with companies
authorized and licensed to transact business in Virginia, which re-
insurance shall be reported by the reinsurer, but no credit shall be
allowed for reinsurance in companies not licensed to transact business
in Virginia.

(d) Every such insurance carrier shall, for the twelve months end-
ing December thirty-first of each year, make a return verified by the
affidavit of its president and secretary, or other chief officers or agents,
to the industrial commission of Virginia stating the amount of such
premiums and credits during the period covered by such return.

The State corporation commission shall have access at all times to
the records so filed with the industrial commission by such insurance
carriers, and may require such additional information as it deems nec-
essary for the performance of the duties herein conferred upon said
commission.

Every insurance‘carrier required to make such return shall file the
same with the industrial commission of Virginia within thirty days
after the close of the period covered thereby and shall at the same
time pay into the State treasury a tax of three and one-half dollars on
each one hundred dollars of such premium ascertained as provided in
subsection (c) hereof, less returned premiums on cancelled policies and
reinsurance with other companies licensed to transact business in this
State. Upon receiving such payments the comptroller shall place the
whole thereof to the credit of the fund for the administration of this
act, and shall pay same out in the manner provided by section twenty-
two and one-half of chapter thirty-three of the acts of the general
assembly of nineteen hundred and twenty-seven.

(e) If any such insurance carrier shall fail or refuse to make the
return required by this act, the said corporation commission shall assess
the tax against such insurance carrier at the rate herein provided for,
on such amount of premiumis as it may deem just, and the proceedings
thereon shall be the same as if the return had been made.

(f{) If any such insurance carrier shall withdraw from business in
this State before the tax shall fall due, as herein provided, or shall
fail or neglect to pay such tax, the comptroller shall at once proceed to
collect the same, and he is hereby empowered and authorized to em-
ploy such legal process as may be necessary for that purpose, and
when so collected he shall pay the same into the State treasury. The
suit may be brought by the comptroller, in his official capacity, in any
court of this State having jurisdiction; reasonable attorneys’ fee may
be taxed as costs therein, and process may issue to any county of the
State, and may be served as in civil actions, or in case of unincorporated
associations, partnerships, inter-indemnity contracts or other plan or
scheme, upon any agent of the parties thereto upon whom process may
be served under the laws of this State.

(g) Any person or persons who shall in this State, act or assume
to act as agent for any such insurance carrier whose authority to do
business in this State has been suspended, while such suspension re-
mains in force, or shall neglect or refuse to comply with any of the
provisions of this section obligatory upon such persons or party or
who shall wilfully make a false, or fraudulent statement of the busi-
ness or condition of any such insurance carrier or false or fraudulent
return as herein provided, shall be deemed guilty of a misdemeanor,
and upon conviction, shall be punished by a fine of not less than one
hundred nor more than one thousand dollars, or by imprisonment for
not less than ten nor more than ninety days, or both such fine and
imprisonment, in the discretion of the jury.

(h) Whenever by this act or the terms of any policy contract, any
officer is required to give any notice to any insurance carrier, the same
may be given by delivery, or by mailing by registered letter properly
addressed and stamped to the principal office or chief agent of such
insurance carrier within this State, or to its home office, or to the secre-
tary, general agent, or chief officer thereof in the United States.

(1) Any insurance carricr hable to pay a tax upon premiums under
this act shall not be hable to pay any other or further tax upon such
premiums, or on account thereof, under anv other law of this State.

(j) every employer carrying his own risk under the provisions ot
section sixty-eight shall, under oath, report to the industrial com-
mission, his payroll, subject to the provisions of this act. Such report
shall be made in form prescribed by the said commission and at the
time herein provided for premium reports by insurer. The said com.
mission shall assess against such payroll a maintenanee fund tay
computed by taking three and one-half per centum of the basic
premiums chargeable against the same or most similar industry ot
business, taken from the manual insurance rate for compensation ther
in force in this State, or, in its discretion, of such premiums modihec
in accordance with an experience rating determined by the records o
the commission, which tax shall be paid as provided in subsection (d
of this section, and if not so paid, the same shall be collected by thi
comptroller in the manner provided in subsection (f) of this section.

The State corporation commission shall at all times have access te
the reports herein required to be made to the industrial commission by
self-insurers for the purpose of performing the duties imposed upor
said commussion under this act.

(k) The industrial commission shall not be authorized to incu
expenses or indebtedness during any period, chargeable against th
maintenance fund, in excess of the prennum tax pavable to such func
for the same period. If it be ascertained that the tax collected fo
a given period exceeds the total chargeable against the maintenance:
fund under the provisions of this act, the said commission may authoriz
a corresponding credit upon the collection for the succeeding period.
There is hereby appropriated out of the maintenance fund of the
industrial commission of Virginia not otherwise appropriated, a sum
not exceeding fifteen thousand dollars for each year of the biennium
ending February 28, 1930, to be expended in and about the performance
of the duties required of the industrial commission under this act, if,
when, and to the extent that may be authorized by the governor.