Chap. 449.—An ACT to provide for transferring to the State corporation com-
mission, the powers and duties now conterred and imposed by law upon the
commissioner of insurance, concerning guaranty, indemnity, fidelity and = se-
curity companies; for issuing permits to such companies to do business in
Virginia; for establishing and regulating rates to be charged by such com-
panies on the various classes and kinds of bonds, obligations and undertakines
to be given or guaranteed by them; for the revocation of permits; and for
penalties to be imposed for violations of any of such provisions. [H B 238]

Approved March 26, 1928

1. Be it enacted by the general assembly of Virginia, That there is
hereby transferred to, vested in and imposed upon tkg State corpora-
tion commission, all powers and duties now conferred and imposed
by law upon the commissioner of insurance, concerning guaranty, in-
demnity, fidelity and security companies doing, or desiring to do busi-
ness in Virginia.

2. After ninety days from the date this act becomes effective, no
such company shall do any business in this State without a permit
from the State corporation commission. Such permit shall be given
upon application therefor, to any such company having a minimum
capital stock of not less than two hundred and fifty thousand dollars,
upon the commission being satisfied of the solvency of such company
and its ability to perform all its undertakings; provided, if it be a
foreign corporation, it has complied with the provisions of sections
thirty-eight hundred and forty-seven and forty-three hundred and
forty-three of the Code of Virginia; and provided, further, that the
rates which such company, whether domestic or foreign, proposes to
charge on bonds, obligations and undertakings to be given or guaran-
teed by it, be approved by the commission under the provisions of
section three of this act.

Any company violating the provisions of this section shall be sub-
ject to the penalties prescribed in section thirty-eight hundred and
forty-eight of the Code of Virginia, to be imposed as therein provided.

3. Every such company shall, within thirty days 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 giving, or going
surety on the various kinds and classes of bonds, obligations and
undertakings which such company proposes to give, guarantee, go
security upon, or in any way underwrite, and the rates for any 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. ©

Upon any such schedule of rates being so filed, the said commis-
sion shall forthwith notify such company in writing, whether or not
the same meets with its approval, and if not, it shall, in said notification,
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 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 issued to such company, as provided for in section two of this
act. If, however, the commission, after a full hearing and investiga-
tion, made upon a request deemed sufficient and proper by said com-
mission, it 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 deem to be just and reasonable. If
such company shall agree to the schedule of rates so set up, such agree-
ment shall be entered of record by the commission and such schedule
shall be the established rates for such company, and a permit shall
thereupon be issued to it as provided for in section two of this act.
If such company shall not be satisfied 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 proceedings on
appeals as herein provided for, shall be similar to proceedings on appeals
as set forth in the same section.

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

5. Nothing in this act shall be construed to prohibit mutual insur-
ance companies from doing a guaranty, indemnity, fidelity and security
business when so authorized by law, but the rates, obligations and
undertakings of such mutual companies shall be approved by the State
corporation commission in the manner prescribed under the provisions
of section three of this act.

6. All acts and parts of acts in conflict with any of the provisions
of this act are hereby repealed.