CHAPTER CXXXVIII. An Act in addition to and in alteration of An Act concerning Be it enacted by the Senate and House of Representatives in General Assembly convened: insurance com and tenure of the of SEC. 1. The governor, by and with the advice and consent of Appointment of the senate, shall appoint some suitable person not a director, of-missioner, ficer, or agent of any insurance company, to be insurance com-fice. missioner; who shall, unless sooner removed by the governor for cause, hold his office for the term of three years, and until his successor is appointed and qualified. In case of a vacancy in said office by death, resignation, or otherwise, while the senate is not in session, the governor may fill such vacancy by appointment till the next session of the general assembly. missioner. SEC. 2. It shall be the duty of the insurance commissioner to Duty of the comsee that all the laws of this state respecting insurance companies are faithfully executed, and to exercise and discharge all the powers and duties of supervision of such companies as are now or may hereafter be provided by law. SEC. 3. The salary of the commissioner of insurance of this His salary. state shall be three thousand five hundred dollars per annum, and his necessary expenses while attending to his duties outside of the city of Hartford; and the said commissioner is empowered to employ sufficient clerical aid for the proper discharge of his duties. The salary of the commissioner shall be paid from the treasury, also the incidental expenses of his office, after his accounts shall have been audited and allowed by the comptroller, and, the fees which the said commissioner of insurance is now or may hereafter be authorized by law to receive from insurance companies, shall hereafter be paid over by him to the treasurer of this state for the use of the state; and the amount so received and Fees paid by inpaid over shall be by him stated in his annual report to the gen-nies to be paid eral assembly. The commissioner of insurance shall have power treasury. to administer oaths in the discharge of his official duties. surance compa into the state relative to insur SEC. 4. The comptroller of this state and the present insur- Books and papers ance commissioner are hereby directed to deliver to the commis-ance to be delivsioner of insurance to be appointed as provided by section first of ered to the new this act, all the books and papers now in their custody relating to insurance. commissioner. insurance com SEC. 5. The insurance commissioner shall demand and receive Fees payable by the following fees from insurance companies: panies. For receiving and filing annual report of insurance companies chartered by this state, ten dollars: For valuation of policies of life insurance companies, one cent for each thousand dollars insurance valued. 34 To what extent fire insurance companies may take single risks. Officers of fire and fire and marine insurance companies to make annual statement. For filing any additional paper required by law, twenty-five cents each. For certificate of valuation, copy of report, or certificate of condition of company to be filed in other states, five dollars. SEC. 6. No fire insurance company organized under a charter granted by this state, or doing business in this state, shall expose itself to any one loss on any one fire risk or hazard, to an amount exceeding ten per centum of its paid up capital. SEC. 7. It shall be the duty of the president or vice-president, and secretary of each fire and each fire and marine insurance company incorporated by this state, annually in the month of January, to prepare under their own oath, and deposit in the office of the commissioner of insurance of this state a statement of the condition of such company on the 31st day of December next preceding, exhibiting the following facts and items in the following form, namely: 1st. The amount of the capital stock of the company. 2d. The property or assets held by the company, specifying: 1. The value, or nearly as may be, of the real estate held by such company. 2. The amount of cash on hand and deposited in bank to the credit of the company, specifying in what banks the same are deposited. 3. The amount of cash in the hands of agents and in course of transmission. 4. The amount of loans secured by bonds and mortgages, constituting the first lien on real estate, on which there shall be less than one year's interest due or owing. 5. The amount of like loans with one year's interest or more due thereon. 6. The amount due the company on which judgments have been obtained. 7. The amount of stocks and bonds of this state, of the United States, of any incorporated city of this state, and of any other stocks and bonds owned by the company, specifying the amount, number of shares, and par and market value of each. 8. The amount of stocks and bonds held as collateral security for loans, with the amount loaned on each, with the par and market value thereof. 9. The amount of assessments on stock or premium notes paid and unpaid. 10. The amount of interest accrued and unpaid. 11. The amount of premium notes on hand on which policies are issued. 3d. The liabilities of such company, specifying: 1. The amount of losses due and unpaid, and the amount not due. 2. The amount of unpaid losses not due. 3. The amount of claims for losses resisted by the com- . pany. 4. The amount of losses incurred during the year, including those claimed and not yet due, and of those reported to the company upon which no action has been taken. 5. The amount of dividends declared, due, and unpaid. 6. The amount of dividends, either cash or scrip, declared but not due. 7. The amount of money borrowed, and security given. for the payment thereof. 8. The amount of premiums received on all risks not terminated. 9. The amount required to safely re-insure all fire risks in force, computed at fifty per centum of the gross amount of fire premiums (less return premiums and re-insurance,) received on risks in force not perpetual; ninety-five per centum of premiums on perpetual risks in force; and one hundred per centum of the amount of ocean marine premiums received on risks in force: provided, that the premiums. on unexpired fire risks shall be deemed to be, for the purposes of this act, not less than the gross amount of the fire premiums (less return premiums and re-insurance) received. during the year preceding. 10. The amount of all other existing claims against the company. 4th. The income of the company during the preceding year, specifying: 1. The amount of cash premiums received. 2. The amount of notes received for premiums. 3. The amount of interest money received. 4. The amount of income received from other sources. 5th. The expenditures during the preceding year, specifying: 1. The amount of losses paid during the year, stating how much of the same accrued prior, and how much subsequent to the preceding statement, and the amount at which such losses are estimated in such preceding statement. 2. The amount of dividends paid during the year. 3. The amount of expenses paid during the year, including commissions, salaries, and fees, to agents and officers of the company. 4. The amount paid in taxes. 5. furnish the com nual statement. The amount of all other payments and expenditures. SEC. 8. It shall be the duty of the commissioner of insurance Commissioner to of this state to cause to be prepared and furnished to each of the panies blank fire and fire and marine insurance companies incorporated by this forms for the an state, and to the attorneys of companies incorporated by other states and foreign governments doing business in this state, printed forms of the statements required by this act, and the act Commissioner to to which this is in addition; said commissioner shall condense statements, and and arrange said statements in proper form for printing, and com-eral assembly. municate the same to the general assembly annually. tabulate the report to the gen may require in SEC. 9. The commissioner of insurance of this state is hereby Commissioner authorized and empowered to address any inquiries to any fire or formation from marine nies. compa fire and fire and fire and marine insurance company, or to the secretary thereof, doing business in this state, in relation to its financial condition, and it shall be the duty of any company so addressed to promptly reply in writing to any such inquiries. and fire and ma- . failing to make ment. Penalty for fire SEC. 10. Every fire and fire and marine insurance company companies incorporated by this state, designedly failing to make and deposit the annual state the statement required by this act, shall be subject to the penalty of five hundred dollars, and an additional penalty of five hundred dollars for every month that such company shall continue thereafter, before making and depositing the same, to transact any business of insurance, to be recovered, with costs of prosecution, in the name of the treasurer of this state, for the use of this state, by action on this statute. Conditions upon which foreign fire;, companies may in this state. torney in this state. SEC. 11. It shall not be lawful for any fire or fire and marine and fire and ma- insurance company, association, or partnership, incorporated by rine insurance or organized under the laws of any other state of the United transact business States, directly or indirectly, to take risks or transact any business of insurance in this state, unless possessed of at least one hundred and fifty thousand dollars of cash capital paid up and securely invested; and any such company desiring to transact any such business as aforesaid, by an agent or agents in this state, To appoint anat shall first appoint an attorney in this state on whom process of law can be served, and file in the office of the commissioner of insurance, a certified copy of the vote or resolution of the directors appointing such attorney, which appointment shall continue until another attorney be substituted; and in case any such insurance company shall cease to transact business in this state according to the laws thereof, the agent last designated, or acting as such for such corporation, shall be deemed to continue agent for such corporation for the purpose of serving process for commencing actions upon any policy or liability, issued or contracted while such corporation transacted business in this state; and service of such process for the causes aforesaid, upon any such agent, shall be deemed a valid personal service upon such corporation; To deposit certi- and shall also deposit with said commissioner a certified copy of their charter, also a statement under the oath of the president or other items of in vice-president and secretary of the company for which they may act, stating the name of the company, and place where located; also all the other facts and items required by the seventh section of this act, to be stated by the officers of fire and marine insurance companies chartered by this state; nor shall it be lawful for an agent or agents to act for any company or companies referred to in this section, directly or indirectly, in taking risks or transacting the business of fire insurance in this state, without procurAgents to take ing from the commissioner of insurance a certificate of authority, authority to act stating that such company has complied with all the requisitions from the commis- of this act and the act to which this is in addition, which apply to such companies, and the name of the attorney appointed to act for the company; and in cases of regularly commissioned agents, a certified copy of such certificate of authority shall be published in a newspaper printed in the city of Hartford, and evidence of fied copy of their charter, with formation. out certificates of sioner. certificate to be newed. such publication shall be filed in the office of such commissioner. The statements required by this section shall be renewed annually Statements and in the month of January, and in addition to the exhibit of the annually recondition of such company on the 31st day of December next preceding, shall state the amount of premiums received and losses paid in this state during the preceding year, so long as such agency continues; and the said commissioner on being satisfied that the capital, securities, and investments, remain secure, shall furnish a renewal of his certificate as aforesaid. Any violation of the provisions of this section shall subject the party violating to a penalty of one hundred dollars for each violation, to be recovered in the name of the treasurer of this state, by action on this statute, one-half of which shall be paid to the person informing, and the other half to the treasurer for the use of the state. The term agent or agents used in this section shall include an ac- Who is an agent. knowledged agent or surveyor, or any person or persons who shall in any manner aid in transacting the insurance business. eign compar ies be filed with the SEC. 12. Before any license shall be granted or renewed to any Reports of forinsurance company or association incorporated by or associated wishing to do under any foreign government, such company or association business here to shall, in addition to the requirements specified in the act to which commissioner. this is in addition file with the commissioner of insurance of this state, a copy of the last annual report or statement, if any, made under any law of the state or country by which such company or association was incorported or associated, also a certified copy of their charter or deed of settlement. to examine the fire and marine insurance com SEC. 13. It shall be the duty of the commissioner of insurance Commissioner of this state, whenever he shall deem it expedient to do so, either fairs of fire and personally or by a committee to be appointed by him, and to consist of one or more persons not directors, officers or agents of any panies. fire or marine insurance company doing business in this state, to examine into the affairs of any fire or fire and marine insurance company incorporated by this state, or doing business in this state; and it shall be the duty of the officers or agents of any such company to cause its books to be opened for the inspection of said commissioner or said committee, and to otherwise facilitate such examination so far as it may be in their power so to do; and for that purpose the said commissioner or committee shall have power to examine under oath the officers and agents of any such company in relation to its affairs and business; and whenever the said commissioner shall deem it for the interest of the public so to do, he shall publish the result of such investigation in one or more newspapers published in this state: provided, that in relation to the affairs of any company incorporated by or organized under the laws of any other state of the United States, it shall be optional with the said commissioner to accept the certificate of the insurance commissioner or superintendent of the state, under the authority of which the said company was organized, as to its standing and condition, or proceed to investigate its affairs as hereinbefore provided. And whenever it shall appear to said commissioner from such examination that the assets |