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tion thereto inconsistent with some provision in this title, in which case the special provision prevails. En. March 21, 1872.

Cal.Rep.Cit. 109, 582; 122, 339.

TITLE II.

INSURANCE CORPORATIONS. Chapter 1. General Provisions, 88 414-420.

II. Fire, Marine and Title Insurance Corporations,

$$ 424-432. III. Mutual Life, Health, and Accident Insurance

Corporations, $$ 437-452.

CHAPTER I.

GENERAL PROVISIONS. 414. Subscriptions to capital stock opened, and how collected. $415. Purchase and conveyance of real estate. § 416. Policies, how issued and by whom signed. $417. Dividends, of what and when declared.

418. Directors liable for loss on insurance in certain cases, $ 419. Capital to be at least two hundred thousand dollars.

420. Exception, capital of one hundred thousand dollars.

$ 414. Subscriptions to capital stock opened, and how collected. After the secretary of state issues the certificate of incorporation, as provided in article I, chapter I, title I, of this part, the directors named in the articles of incorporation must proceed in the manner specified, or in their by-laws, or if none, then in such manner as they may by order adopt, to open books of subscription to the capital stock then unsubscribed, and to secure subscriptions to the full amount of the fixed capital; to levy assessments and installments thereon, and to collect the same, as in chapter II of title I provided. En. March 21, 1872.

Insurance in general: See post, secs. 2527-2766.

$ 415. Purchase and conveyance of real estate. No insurance corporation must purchase, hold, or convey real estate, except as hereinafter set forth, to-wit:

1. Such as is requisite for its accommodation in the convenient transaction of its business, not exceeding in value one hundred and fifty thousand dollars;

2. Such as is conveyed to it, or to any person for it, by way of mortgage or in trust, or otherwise, to secure or provide for the payment of loans previously contracted, or for moneys due;

3. Such as is purchased at sales upon deeds of trust or judgments obtained or made for such loans or debts;

4. Such as is conveyed to it in satisfaction of debts previously contracted in the course of its dealings.

All such real estate so acquired, which is not requisite for the accommodation of such corporation in the transaction of its business, must be sold and disposed of within five years after such corporation acquired title to the

No such real estate must be held for a longer period than five years, unless the corporation first procures a certificate from the insurance commissioner that the interest of the corporation will suffer materially by a forced sale of such real estate, in which event the time for the sale may be extended to such time as the insurance commissioner directs in the certificate. En. March 21, 1872.

same.

8 416. Policies, how issued and by whom signed. All policies made by insurance corporations must be subscribed by the president or vice-president, or in case of the death, absence, or disability of those officers, by any two of the directors, and countersigned by the secretary of the corporation. All such policies are as binding and obligatory upon the corporation as if executed over the corporate seal. En. March 21, 1872.

$ 417. Dividends, of what and when declared. The directors of every insurance corporation, at such times as their by-laws provide, must make, declare, and pay to the stockholders dividends of so much of the net profits of the corporate business and interest on capital invested as to them appears advisable; but the moneys received and notes taken for premium on risks which are undetermined and outstanding at the time of making the dividend must not be treated as profits, nor divided, except as provided in chapter II of this title. En. March 21, 1872.

Declaring dividends: See ante, sec. 309.

$ 418. Directors liable for loss on insurance in certain cases. If any insurance corporation is under liabilities for losses to an amount equal to its capital stock, and the president or directors, after knowing the same, make any new or further insurance, the estates of all who make such insurance, or assent thereto, are severally and jointly liable for the amount of any loss which takes place under such insurance. En. March 21, 1872.

$ 419. Capital to be at least two hundred thousand dollars. Every company, corporation, or association hereafter formed or organized under the laws of this state for the transaction of business in fire, marine, inland navigation, or life insurance, must have a subscribed capital stock equal to at least two hundred thousand dollars, twenty-five per cent of which must be paid in previous to the issuance of any policy, and the residue within twelve months from the day of filing the certificate of incorporation. No per. son, corporation, or association organized or formed under the laws of any other state or country, as a stock company, must transact any such insurance business in this state, unless such person, corporation, or association has a paidup capital stock equal to at least two hundred thousand dollars in available cash assets, over and above all liabilities for losses reported, expenses, taxes, and reinsurance of all outstanding risks, as provided in section six hundred and two of the Political Code of this state. Nor must any person, corporation, or association, organized or formed under the laws of any other state or country as a mutual insurance company, transact any such insurance business in this state, unless such person, corporation, or association possesses available cash assets equal to at least two hundred thousand dollars, over and above all liabilities for losses reported, expenses, taxes, and reinsurance of all cutstanding risks, as provided in said section six hundred and two of the Political Code of this state. En. March 21, 1872. Am'd. 1873-4, 269; 1877-8, 80.

Cal.Rep.Cit. 64, 52.

$ 420. Exception, capital of one hundred thousand dollars. Every company, corporation, or association, hereafter formed or organized under the laws of this state for the transaction of business in any kind of insurance not enumerated in section four hundred and nineteen of the Civil Code must have a subscribed capital stock equal to at least one hundred thousand dollars, which must be paid in at the times and in the manner prescribed for the payment of the capital stock of a corporation organized under section four hundred and nineteen of said Civil Code. No company, corporation, or association, formed or organized under the laws of any other state or country as a stock company, must transact any such insurance business in this state without a paid-up capital stock of not less than one hundred thousand dollars in available cash assets, over and above all liabilities for losses reported, expenses, taxes, and reinsurance of all outstanding risks, as provided in section six hundred and two of the Political Code of this state. Nor must any company, corporation, or association, formed or organized under the laws of any other state or country as a mutual insurance company, transact any such insurance business in this state unless such company, corporation, or association possesses available cash assets equal to at least one hundred thousand dollars over and above all liabilities for losses reported, expenses, taxes, and reinsurance of all outstanding risks, as provided in said section six hundred and two of the Political Code of this state. En. Stats. 1877-8, 80.

CHAPTER II. FIRE, MARINE, AND TITLE INSURANCE CORPORATIONS. $ 424. Payment of subscriptions. Capital to be all paid in twelve

months. $ 425. Certificate of capital stock paid up to be filed, and when. § 426. Property which may be insured. § 427. Funds may be invested, how. $ 428. Limit of one risk. $ 429. Amounts to be reserved before making dividends. $ 430. Reservation by companies with less than $200,000 capital.

431. Amounts to be reserved by life insurance companies. $ 432. Corporations for insuring titles to real estate.

$ 424. Payment of subscriptions. Capital to be all paid in twelve months. The entire capital stock of every fire or marine insurance corporation must be paid up in cash within twelve months from the filing of the articles of incorporation, and no policy of insurance must be issued or

risk taken until twenty-five per cent of the whole capital stock is paid up. En. March 21, 1872.

Fire insurance: See post, secs. 2752 et seq.
Marine insurance: See post, secs. 2655 et seq.

County fire insurance companies, act providing for: See post, Appendix, title Insurance.

$ 425. Certificate of capital stock paid up to be filed, and when. The president and a majority of the directors must within thirty days after the payment of the twenty-five per cent of the capital stock, and also within thirty days after the payment of the last installment or assessment of the capital stock limited and fixed, prepare, subscribe, and swear to a certificate setting forth the amount of the fixed capital and the amount thereof paid up at the times respectively in this section named, and file the same in the office of the county clerk of the county where the principal place of business of the corporation is located, and a duplicate thereof, similarly executed, with the insurance commissioner. En. March 21, 1872.

$ 426. Property which may be insured. Every corporation formed for fire or marine insurance, or both, may make insurance on all insurable interests within the scope of its articles of incorporation, and may cause itself to be reinsured. En. March 21, 1872.

Insurable interest defined: See post, sec. 2546.

$427. Funds may be invested, how. Corporations organized subsequent to April first, eighteen hundred and seventy-eight, under the laws of this state, for the transaction of business in any kind of insurance, may invest their capital and accumulations in the following named securities:

1. In the purchase of or loans upon interest-bearing bonds of the United States government.

2. In the purchase of or loans upon interest-bearing bonds of any of the states of the United States, not in default for interest on such bonds.

3. In the purchase of or loans upon interest-bearing bonds of any of the counties and incorporated cities and towns of the states of California and Oregon, not in default for interest on such bonds.

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