Chap. 8.—An ACT to amend and re-enact Section 4211 of the Code of Virginia,
as heretofore amended, relating to deposits of bonds and securities with
the Treasurer of Virginia by insurance, guaranty, indemnity and other
like companies, so as to permit the deposit by domestic companies of such
bonds and securities in excess of the amount required by this section, which
excess deposit shall be for the protection of all its policyholders. [S B 10]

Approved December 24, 1936

1. Be it enacted by the General Assembly of Virginia, That section
forty-two hundred and eleven of the Code of Virginia, as heretofore
amended, be amended and re-enacted so as to read as follows:

Section 4211. Unless otherwise provided, every insurance company
except a company doing exclusively a marine insurance business, and
except a life insurance company, a fraternal benefit society, order or
association, or a title insurance company, within the terms of the
provisions hereinafter set out in this section, and every guaranty,
indemnity, fidelity, 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 State Corporation
Commission of this State a statement, under oath, of the amount of the
actual unimpaired capital of such company, and deposit with the State
Treasurer 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
said State Corporation Commission and thereby approved, 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; provided, however, that
any domestic company, in order to comply with the future or
existing laws of any other state or territory or of the United States,
may make a deposit with the Treasurer of Virginia in excess of the
amount required by this section and such excess deposit shall be subject
to all other applicable provisions of the laws of this State relating to
the deposits of insurance companies, except that such excess deposit
shall be for the protection of all of the company’s policyholders ratably
and without preference notwithstanding the provisions of section forty-
two hundred and fourteen. 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 safekeeping and handling of such securities;
and after the payment of said expenses, whatever remains shall be
paid by him into the general fund of the State treasury. No part of!
said assessment shall be used to increase the salaries or emoluments
of any person or persons connected with the office of said Treasurer.
The Treasurer shall collect such assessment annually in the month o!
January. If the bonds so deposited be registered bonds, the company
shall at the same time deliver to the Treasurer a power of attorney
and a resolution of its board of directors 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, certify to the State Corporation Com-
mission the kind and face value of all securities, bonds, notes, mortgages
or deeds of trust, required to be deposited under this section; the State
Corporation Commission shall, on or before the fifteenth day of
February next thereafter, examine such list and if necessary such
securities and thereupon value such securities for the purpose of
ascertaining whether any of them have depreciated or been reduced
in value, and shall forthwith require each such company to make good
any such depreciation or reduction by depositing additional securities
with the State Treasurer).

The State shall be responsible for the safekeeping 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 misappro-
priated, the State shall make good such loss to the company 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 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, or a title insurance company, whether in-
corporated by the laws of this State or not, which shall deliver to
the State Corporation Commission 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 policyholders 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
State Corporation Commission of a cash market value if the company
is a life insurance company of not less than two hundred thousand
dollars and if the company is a title insurance company of not less
than one 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 insurance author-
ized by clause first of section forty-three hundred and five of the
Code of Virginia and to automobile theft and burglar insurance under
subsection (e) of clause second, section forty-three hundred and five
of the Code of Virginia, which shall deliver to the State Corporation
Commission, 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
companies depositing surety bond as is required in cases of a deposit
of securities.

2. An emergency existing, this act shall be in force from its
passage.