Chap. 14.—An ACT to amend and re-enact section 4211 of the Code of Virginia,
as last amended by an act approved March 27, 1930, in relation to deposits of
bonds with the treasurer. [S B 17]

Approved February 11, 1932

1. Be it enacted by the general assembly of Virginia, That section
forty-two hundred and eleven of the Code of Virginia, as last amended
by an act approved March twenty-seventh, nineteen hundred and
thirty, be amended and re-enacted so as to read as follows:

Section 4211. Unless otherwise provided, every insurance com-
pany except a company doing exclusively a marine insurance business,
and except a life insurance company within the terms of the provisions
hereinafter set out in this section, and every guaranty, indemnity, fi-
delity, security, or other like company, whether incorporated 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 bond so deposited 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 shall 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 expense of his office in the safe-keeping
and handling of such securities; and after the payment of said ex-
penses, whatever remains shall be paid by him into the general fund of
the State treasury. No part of said assessment shall be used to in-
crease the salaries or emoluments of any persc=. or persons connected
with the office of said treasurer. The treasurer shall collect such as-
sessment 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 attorney 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 De-
cember, 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 depreciation or reduction in value of the said secur-
ties, and he shall immediately 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 re-
sponsible for the safe-keeping of all bonds or other securities deposited
with the treasurer of 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 company making the deposit. Bonds or other securi-
ties deposited with the State treasurer under this section shall not be
subject to taxation. This section shall not apply to, nor shall any de-
posit of bonds be required of, any mutual fire insurance company con-
ducting business exclusively in this State, and on a strictly mutual plan,
which pays 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 pro-
tection 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; and provided, further,
that the provisions of this section shall not apply to a fire insurance
company, whether incorporated by the laws of this State, or not, which
confines its business in this State exclusively to the classes of insur-
ance authorized by clause first of section forty-three hundred and five
of the Code of Virginia and to automobile theft and burglar insurance
under sub-section (e) of clause second, section forty-three hundred and
five of the Code of Virginia, which shall deliver to the treasurer of
the State, the statement under oath, required by this section, and shall,
in lieu of such deposit of such bonds, enter into a bond with surety,
approved by the State corporation commission, for a sum, to be fixed
by the State corporation commission, in the penalty of not less than
ten thousand dollars nor more than fifty thousand dollars, with such
condition as the State corporation commission shall require.

In event that surety bond is given in lieu of securities as required
by this section the same fee or assessment shall be paid by the com-
panies depositing surety bond as is required in cases of a deposit of
securities.