or company; whenever such service of summons or other legal process shall be made upon the Insurance Commissioner, he must, within ten days thereafter, transmit by mail postage paid, a copy of such summons or other legal process, to the company or corporation, addressed to the President or Secretary thereof at its home or principal office; such copy must be certified by the Commissioner, under his hand and official seal, and the sending of such copy by the said Commissioner shall be a necessary part of the service of summons or other legal process. [In effect April 1, 1878. Section based before amendments of 1874 and 1878, on Statutes 1870, p. 881.]

Penalties for failure to file statement and stipulation.

SEC. 617. The Commissioner must collect the sum of one hundred dollars from any company or corporation engaged in the business of insurance in this State, for a failure to make and file in his office within the time prescribed by law, the statements and stipulations required by sections six hundred and ten, six hundred and eleven, six hundred and twelve, six hundred and thirteen, and six hundred and sixteen of this Code, and an additional penalty of two hundred dollars for each and every month or a fractional part of a month thereafter that such company or corporation continues to transact the business of insurance until such statements and stipulations are filed; and for that purpose suits may be instituted by the Insurance Commissioner, in the name of the people of the State of California, in any Court of competent jurisdiction. And for all lawful expenses incurred under this section, or any other section of this Code, in the prosecution of any suit or proceeding for the enforcement of the insurance laws of this State, the Insurance Commissioner must present bills duly certified by him, with the vouchers to the State Board of Examiners, who must allow the same and direct payment thereof to be made; and the Controller shall draw warrants therefor on the Treasurer for the payment of the same to the Insurance Commissioner (in addition to the ordinary contingent expenses) out of the General Fund. [In effect April 1, 1878; Section amended 1874; 1878; original basis, see Statutes 1868, p. 324. Ameuded Statutes 1887, p. 11.]

Retaliatory laws.

Deposits with the State.

Interest or dividends on deposits with the State.

SEC. 618. Whenever the laws of any State in the United States, or of any country foreign to the United States, require any company or corporation organized under the laws of this State, to deposit with some officer of this State securities in trust for, and for the benefit of, the policy-holders of such company or corporation, as a prerequisite to transacting insurance business in such other State or foreign country, and whenever under any laws of this State any insurance company or corporation is required to deposit with any officer of this State, securities in trust for, and for the benefit of policy-holders of such company or corporation, the Insurance Commissioner of this State must receive from 'such company or corporation, securities in the amount required by the law, under which such deposit is made on deposit and in trust for the policy-holders of such company or corporation; the value of such securities must be equal to the value of interest-bearing stocks and bonds of the United States Government, but none of such securities must be estimated above the par value of the same, nor above their market value. The Commissioner must, upon the receipt of such securities, forthwith make a special deposit of the same in the State Treasury, in packages marked with the name of the company or corporation from whom received, where they must remain as security for

policy-holders in the company or corporation to which they respectively belong; but so long as the company or corporation continues solvent he must permit it collect the interest or dividends on the 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 section, 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. [In effect April 1, 1878. This and the next three sections-amd. 1878; originally founded on Stats. 1870, p. 321.]

Deposits, receipts for.

SEC. 619. Whenever any insurance company or corporation has deposited with the Commissioner the requisite security, in conformity with the requirements of the preceding section, the Commissioner must issue to such company or corporation a certificate, under his official seal, of such deposit, for each state or country requiring the same. which said certificate must state the items and amount of securities so deposited, and that they are of the value therein represented. [In effect April 1, 1878.}

Deposits returned, when.

SEC. 620. Whenever any insurance company or corporation so depositing securities with the Commissioner has paid, cancelled or reinsured all its unexpired policies outstanding in the State, satisfactorily to the holders thereof, and all its liabilities under such policies are extinguished, or assumed by other responsible companies or corporations, then if, on application of such company or corporation, verified by the oaths 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 if all its policies are so paid, cancelled, extinguished or reinsured, he must deliver up to the corporation the securities deposited; and whenever the laws of any other state or country, by reason of which section six hundred and twenty-two of the Political Code of this State is brought into force, shall be repealed and abrogated, and any deposit which shall have been made with the Commissioner, under and by reason of said section six hundred and twenty-two of the Political Code must be delivered up to the company or corporation making the deposit. [In effect April 1, 1878.]

Examination of securities.

SEC. 621. The Commissioner must make an annual examination of the securities received by him from each insurance company or corporation, and if it appear at any time that the securities deposited by any such company or corporation amount to less than the sum required for the purposes for which the deposit was made, he must notify the company or corporation thereof, and unless the deficiency is made up within thirty days after notice, the Commissioner must countermand all the certificates he may have issued to the company or 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 some daily newspaper published in the city of San Francisco, at the expense of the company or corporation, to be collected by assessment upon the company or corporation, or its duly appointed agent in this State. [In effect April 1, 1878.]

Retaliatory clause.

SEC. 622. When by the laws of any other State or country any taxes, fines, penalties, licenses, fees, deposits of money, or of securities or other obligations or prohibitions, are imposed on insurance companies of this State, doing business in such other state or country, or upon their agents therein in excess of such taxes, fines, penalties, licenses, fees, deposits of securities, or other obligations or prohibitions imposed upon insurance companies of such other state or country, so long as such laws continue in force the same obligations and prohibitions of whatsoever kind must be imposed upon insurance companies of such other state or country doing business in this State. And whenever under this section any deposit of securities shall be made in this State, such deposit must be made in stocks or bonds of the United States government or in those of the State of California, which said securities must be estimated at not exceeding their par value nor their market value. [In effect April 1, 1878; original section before Amendments 1874 and 1878 founded on statutes 1870, p. 321.]

Bonds from foreign corporations.

SEC. 623. The Commissioner must require every company, association, or individual, not incorporated under 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 amount 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. [Section based on Statutes 1862, p. 243.]

Same.

SEC. 624. Whenever the same person, firm, officer, or 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 association so represented by such person, firm, officer, or agent. [Section based on Statutes of 1862, p. 245.]

Commissioner to furnish Assessor with certain information.

SEC. 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 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.

Securities.

SEC. 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.

Statements to be based on gold coin value.

SEC. 627. All statements, estimates, percentages, payments, 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.

SEC. 629.

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

Salary of Deputy.

SEC. 629. The annual salary of the Deputy of the Insurance Commissioner is eighteen hundred dollars. [Amended Statute 1887, p. 12.]

Contingent Expenses.

SEC. 630. The Commissioner may procure rooms for his office at a rent not to exceed seventy five dollars per month, and may provide a suitable safe and furniture therefor; he may also provide stationery, fuel, printing, and other conveniences necessary for the transaction of the business of his office. Out of the funds paid into the State Treasury by the Insurance Commissioner, there shall be set aside and reserved each and every year the sum of two thousand dollars, as a special fund, to be called the Insurance Commissioner's Special Fund. All expenditures authorized in this section must be audited by the Board of Examiners, who must allow the same and direct payment thereof to be made; and the Controller shall draw warrants therefor on the State Treasury for the payment of the same to the Insurance Commissioner out of the said Insurance Commissioner's Special Fund. [Amended Statute 1887, p. 12.]

Location of office.

SEC. 631. The Commissioner must keep his office in the City of San Francisco.

Official bond.

SEC. 632. The Commissioner must execute an official bond in the sum of ten thousand dollars.

Conditions precedent to right to act as insurance agent or solicitor.

SEC. 633. No person shall in this State act as the agent or solicitor of any life insurance company doing business in this State until he has produced to the Commissioner, and filed with him, a duplicate power of attorney from the company, or its authorized agent, authorizing him to act as such agent or solicitor. Upon filing such power, the Commissioner shall issue a license to him to act as such agent or solicitor for such company, if such company has received a certificate of authority from such Commissioner to do business in this State; provided, that if such agent or solicitor shall, within the twelve months next preceding, have been in the employ of any other company, or its authorized agent, as such agent or solicitor, he must produce to the Commissioner written evidence from such employer that all moneys he may have collected for such company or agent

have been paid over to said company or agent. Such license shall continue in force for twelve months from the date thereof, but may be and shall be, sooner revoked upon application of the company or its authorized agent. Such license may be renewed from time to time, for an additional period of twelve months, on production by the holder to the Commissioner of a certificate from the company that such person's authority as such agent or solicitor continues. For each such license, or renewal thereof, the Commissioner shall receive the sum of one dollar. The Commissioner shall keep an alphabetical list of the names of persons to whom such licenses shall be issued, with the date of the license and renewal, and the name of the company for whom such person is working. If any person shall, under a false or fictitious name, procure or attempt to procure, a license to act as agent or solicitor of any life insurance company, he shall be guilty of a misdemeanor. Every person who, in this State, procures, or agrees to procure, any insurance for a resident of this State from any insurance company not incorporated under the laws of this State, unless such company, or its agent, has filed the pond required by the laws of this State relating to insurance, and obtained from the Commissioner a certificate of authority to do business, and every person who solicits or procures any life insurance, without having been duly licensed so to do by the Commissioner, shall be guilty of a misdemeanor and upon conviction thereof, shall be punished accordingly. The Insurance Commissioner must require as a condition precedent to the transaction of life insurance business in this State, that every life insurance corporation or company created by the laws of any other State, or of any foreign country, must file in his office the name of an agent, and his place of residence in this State, on whom/summons and other process may be served in all actions, or other legal proceedings against such corporation or company. All process so served gives jurisdiction over the person of such corporation or company; the agent so appointed must be the principal agent of such corporation or company in this State; any such foreign corporation or company shall, as a further condition precedent to the transaction of insurance business in this State, and in consideration of the privilege to transact such insurance business in this State, make and file with the Insurance Commissioner an agreement or stipulation, executed by the proper authorities of such corporation or company, in form and substance as follows: The (giving name of corporation or company) does hereby stipulate and agree that in consideration of the permission granted by the State of California to it to transact insurance business in this State, that if at any time such corporation or company shall, under the existing provisions of law of this State in relation to insurance companies, be without an agent in this State on whom summons or legal process may be served, service of such summons or other legal process may be made upon the Insurance Commissioner, such service upon the Commissioner to have the same force and effect as if made upon the corporation or company; whenever such service of summons or other legal process shall be made upon the Insurance Commissioner, he must, within ten days thereafter, transmit by mail, by registered letter, a copy of such summons or other legal process to the corporation, addressed to the President or Secretary thereof, at its home or principal office; such copy must be certified by the Commissioner, under his hand and official seal, and the sending of such copy by the said Commissioner shall be a necessary part of the service of summons or other legal process. [Amendment approved April 26, 1880; took effect sixtieth day after passage.]