Deposits and

penalty of one thousand dollars for each and every month thereafter that such person or corporation continues to transact the business of insurance until such certificate and statement is filed, and for that purpose suits may be instituted in the name of the people of the State of California in any Court of competent jurisdiction.

NOTE.-Stats. 1868, p. 328, Sec. 7.

618. Whenever the laws of any State of the United dividends. States require any life insurance company incorporated by or organized under the laws of this State to deposit with some officer of this State securities in trust for or for the benefit of the policy holders of such corporation as a prerequisite to transacting business in such other State, the Commissioner of this State must receive from such life insurance corporation securities of the amount required by the laws of such other State, on deposit and in trust for the policy holders of such corporation, the value of which must be equal to the value of interest-bearing stocks, bonds, or other securities of the United States. He must, upon the receipt of the securities, forthwith make a special deposit in the State Treasury of the same, in packages marked with the name of the corporation from whom received, where they must remain as security for policy holders in the corporation to which they respectively belong; but so long as any corporation so depositing continues solvent, he must permit such corporation to collect the interest or dividends on its securities so deposited, and from time to time to withdraw any such securities on depositing other securities in the stead of those to be withdrawn, such new securities to be of the same value mentioned in this Chapter; but such securities must not be withdrawn from the State Treasury unless upon the written order of the acting President and Secretary of the corporation making the deposits, which order must be indorsed by the Commissioner, or upon

the order and authority of some Court of competent jurisdiction.

NOTE.-Stats. 1870, p. 321, Sec. 1.

་

receipts for.

619. Whenever any life insurance corporation, Deposits, organized under the laws of this State, has deposited with the Commissioner the requisite securities, in conformity with the laws of the State in which such corporation is desirous of transacting its business, he must issue to such corporation a certificate, under his official seal, of such deposit, for each State requiring the same, which must state the items and amount of securities thus deposited, and that they are of the market value represented therein; but no securities must be estimated above the par value of the same.

NOTE.-Stats. 1870, p. 321, Sec. 2.

returned,

620. Whenever any life insurance corporation has Deposits so deposited its securities, and has paid, canceled, or when. reinsured all its unexpired policies, and all its liabilities under such policies are extinguished or assumed by other responsible corporations having a similar deposit with the Commissioner, then if, on application of such corporation, verified by the oath of its President and Secretary, and from an examination of the books of the corporation and of its officers under oath, the Insurance Commissioner is satisfied that all of its policies are so paid, canceled, extinguished, or reinsured, he must deliver up to the corporation the securities deposited.

NOTE.-Stats. 1870, p. 321, Sec. 3.

tion of

621. The Commissioner must make an annual ex- Examinaamination of the securities received by him from each securities. life insurance corporation, and if it appear at any time that the securities deposited by any corporation amount to less than the sum required for the purposes for which the deposit was made, he must notify the corporation thereof; and unless the deficiency is made up within thirty days after notice, the Commissioner must coun

Retaliatory clause.

termand all the certificates he may have issued to the corporation under this Chapter, and give notice thereof to the officers of the several States to whom the certificate may have been transmitted; and he must also publish the notice for three weeks successively in one daily newspaper printed in the City of Sacramento and one daily newspaper printed in the City of San Francisco, at the expense of the corporation, collected by

assessment.

NOTE.-Stats. 1870, p. 321, Sec. 4.

622. Whenever the laws of any State of the United States require of insurance companies incorporated under the laws of this State and having agencies in such other State, or of the agents thereof, any further or greater license, fees, charges, impositions, taxes, deposit of securities, statements, publications, or certificates of authority, or inflict any greater fines or penalties upon such corporations or agents than are required from similar companies or agents of other States doing business in this State, then and in every such case, from every company, person, or corporation of such other State which has or is about to establish agencies in this State, the Commissioner must, before it continues or commences to do business in this State, collect the same license, fees, charges, impositions, and taxes, and require the same statements, publications, certificates of authority, and the same deposit of secu rities as are required by the laws of such State of similar companies, persons, or corporations, and agents of this State doing business in such other State; and the same fines and penalties must be inflicted upon companies, persons, or corporations of such other States, and their agents, as are inflicted by such States upon companies, persons, or corporations of this State, and their agents, under the laws of such other States.

NOTE.-Stats. 1870, p. 321, Sec. 5.

foreign cor

623. The Commissioner must require every com- Bonds from pany, association, or individual, not incorporated under porations. the laws of this State, and proposing to transact insurance business by agent or agents in this State, before commencing such business to file in his office a bond, to be signed by the person or firm, officer or agent, as principal, with two sureties, to be approved by the Commissioner, in the penal sum of two thousand dollars for each insurance company, association, firm, or individual for whose account it is proposed to collect premiums of insurance in this State, the conditions of such bonds to be as follows:

1. That the person or firm, agent, or officer named therein, acting on behalf of the company, association, firm, or individual named therein, will pay to the Treasurer of the county, or city and county, in which the principal office of the agency is located, such sum per quarter, quarterly in advance, for a license to transact an insurance business, or such other license as may be imposed by law, so long as the agency remains in the hands of the person or firm, officer, or agent named as principal in the bond;

2. That the person or firm, officer, or agent will pay to the State all stamp or other duties on the gross amounts insured by them in the manner and at the time prescribed by law, inclusive of renewals on existing policies;

3. That the person, firm, agent, or corporation named therein will conform to all the provisions of the revenue and other laws made to govern them.

NOTE.-Stats. 1862, p. 243, Sec. 1.

624. Whenever the same person, firm, officer, or Same. agent desires to collect premiums of insurance for more than one company, association, or individual, not incorporated under the laws of this State, the Commissioner must require a separate bond, as provided in the preceding section, for each company or associa

Commissioner to furnish

Assessor

with certain information.

Securities.

Statements to be based

values.

tion so represented by such person, firm, officer, or

agent.

NOTE.-Stats. 1862, p. 245, Sec. 5. Secs. 7 and 8 of an Act entitled an Act to tax foreign insurance companies doing business in this State, approved April 15th, 1862, as amended by an Act entitled an Act amendatory of and supplementary to an Act entitled an Act to tax foreign insurance companies doing business in this State, approved March 2d, 1864, and Secs. 5 and 6 of the Act last mentioned were repealed by the Act of March 26th, 1868 (p. 341, Sec. 21), very properly, inasmuch as it required foreign companies to deposit $75,000 with bankers here, and keeping it idle, thereby increasing insurance, and protecting home insurance companies at the expense of the insured.

625. The Commissioner must, before the commencement of each fiscal year as fixed in the revenue laws, furnish the Assessor of the county in which the principal office of any person or corporation doing the business of insurance is situated, all the data concerning premiums collected by, and all other necessary information in relation to the business of such person or corporation as will assist the Assessor in the performance of his duties.

626. The Commissioner must require from every person, before and after engaging in the business of insurance, a full compliance with all the provisions of Title II, Part IV, Division I of the Civil Code applicable thereto; and every person neglecting to comply with such requirements is subject to the fines and penalties therein prescribed.

627. All statements, estimates, percentages, payon gold coin ments, and calculations required by this Chapter to be made, either by the Commissioner or persons engaged in the business of fire or marine insurance, must be in gold coin of the United States.

Salary.

628. The annual salary of the Insurance Commissioner is three thousand dollars.