Chap. 355.—An ACT to amend and re-enact section 7 of an act entitled an act to
provide for the organization or admission and the regulation and taxation of
incorporated mutual insurance companies other than life, providing a penalty
for any violation hereof, and repealing all acts or parts of acts in conflict here-
with, approved March 16, 1920, as amended by an act approved March 16, 1928.

i | , [H B 152]

Approved March 26, 1932

1. Beit enacted by the general assembly of Virginia, That section
seven of an act entitled an act to provide for the organization or
admission and the regulation and taxation of incorporated mutual in-
surance companies other than life, providing a penalty for any viola-
tion hereof and repealing all acts or parts of acts in conflict herewith,
approved March sixteenth, nineteen hundred and twenty, as amended
by an act approved March sixteenth, nineteen hundred and twenty-
eight, be amended and re-enacted so as to read as follows:

Section 7. No corporation organized under this act shall issue
policies or transact any business of insurance unless it shall comply
with the conditions following, nor until the State corporation com-
mission acting upon a report of the commissioner of insurance has, by
formal license, authorized it to do so, which license shall not issue until
the corporation has complied with the following conditions:

(a) It shall hold bona fide applications for insurance upon which
it shall issue simultaneously, or it shall have in force, at least twenty
policies to at least twenty members for the same kind of insurance
upon not less than two hundred separate risks, each within the maxi-
mum single risk described herein ; oe :

(b) The “maximum single risk’ shall not exceed twenty per cen-
tum of the admitted assets or three times the average risk or one per
centum of the insurance in force, whichever is the greater, any ap-
proved reinsurance taking effect simultaneously with the policy being
deducted in determining such maximum single risk;

(c) It shall have collected a premium upon each application which
premiums shall be held in cash or securities approved by the com-
1932 | ACTS OF ASSEMBLY 695

missioner of insurance or in which insurance companies are authorized
to invest and shall be equal, in case of fire or steam boiler insurance
to not less than twice the maximum single risk assumed subject to one
fire or to one loss not less than ten thousand dollars, and in any other
kind of insurance to not less than fifty thousand dollars ;

(d) For the purpose of transacting employer’s liability and work-
men’s compensation insurance the applications shall cover not less than
one thousand five hundred employees, each such employee being con-
sidered a separate risk for determining the maximum single risk ;

(e) Satisfy the State corporation commission through the com-
missioner of insurance that its financial condition, methods of opera-
tion and manner of doing business are adequate to meet its obligations
to all policyholders.

({) For the purpose of transacting a fidelity and surety business,
it shall have a surplus over and above all liabilities, including reserves,
of not less than five hundred thousand ($500,000.00) dollars;

(g) Any company doing a fidelity and surety business or writing
workmen’s compensation insurance under this act shall be subject to
sections forty-two hundred and eleven, forty-two hundred and twelve,
forty-two hundred and thirteen, forty-two hundred and fourteen, forty-
two hundred and fifteen, forty-two hundred and sixteen, forty-two
hundred and seventeen, forty-two hundred and eighteen, forty-three
hundred and forty-four, forty-three hundred and forty-eight and forty-
three hundred and forty-nine of the Code of Virginia; provided, how-
ever, that in its discretion the State corporation commission may permit
any such company doing a fidelity and surety business, or writing work-
men’s compensation insurance in lieu of making the deposits required
under section forty-two hundred and eleven, to furnish a surety bond
of an amount within the limits prescribed in said section, but in such
form as the said commission may approve, and provided further that
any such company writing workmen’s compensation insurance may, in
lieu of making the deposit or furnishing the surety bond required here-
in, deposit with the State treasurer or other appropriate state official
of the State in which such company is organized bonds of the United
States or of any State, city or municipality of the United States in the
sum of not less than one hundred thousand dollars, and furnish the
State corporation commission of Virginia with a certificate of the
State officer with whom such deposit is made, setting forth that such
deposit has been made and is being held for the benefit of the policy
holders of such company.