assessor.

at their discretion, add fifty per cent. to the amount returned by the Insurance companies shall be subject to no other taxation under the laws of this territory, except taxes on real estate, and the fees imposed by section thirty-two of this act.

SEC. 38. It shall not be lawful for any company organized upon the mutual plan, to do business and take risks upon the stock plan; neither for a company organized as a stock company to do business upon the plan of a mutual insurance company.

SEC. 39. Nothing in this act shall be so construed as to prevent any number of persons, not exceeding two hundred, from making mutual pledges and giving valid obligations to each other for their own insurance from loss by fire or death; but such associations of persons shall in no case insure any property not owned and specified by one of their own number; nor shall the provisions of this act be applicable to such associations or companies; provided, such associations or companies shall in no case pay any salary or compensation to officers, agents or other employees, and shall receive no premiums nor make any divisions.

SEC. 40. All acts and parts of acts in conflict with this act, so far as they apply to insurance companies, are hereby repealed, and this act shall take effect and be in force from and after its passage.

Approved February 18, 1882.

INSURANCE LAWS.

WASHINGTON.

AN ACT TO REGULATE AND LICENSE INSURANCE BUSINESS IN THIS STATE. Be it enacted by the Legislature of the State of Washington.

SECTION 1. The secretary of state shall be ex officio insurance commissioner of this state, and shall receive for his services the compensation hereinafter provided. All necessary forms, circulars and blanks, together with such pamphlet copies of the insurance laws as may be required for distribution, to any person at any time by the provisions of this act, shall be furnished at the expense of the state.

SEC. 2. It shall be the duty of the commissioner to see that all laws of this state respecting insurance companies are faithfully executed. He shall have power to examine all books and accounts of existing companies or companies organized under the laws of this state, to examine their officers and employees under oath, to issue subpoenas for witnesses to attend and testify before him, on any business touching the business of said companies, and furnish and produce for examination and investigation books, papers and documents in relation thereto, which said subpoenas must be served in the same manner as if issued from a superior court, and any person who shall fail, neglect or refuse to obey any such subpoena shall be deemed guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine of not less than one hundred ($100) dollars, nor more than five hundred ($500) dollars, or by imprisonment in the county jail not less than thirty (30) days, nor more than six months, or by both such fine and imprisonment, in the discretion of the court.

SEC. 3. The commissioner must cause every corporation or person, before engaging in the business of insurance in this state, to file in his office as follows: First, if incorporated under the laws of the Territory of Washington or of this state, a copy of the articles of incorporation and charter of the company, together with any amendments or alterations made therein; second, if incorporated under the laws of any other state or country, a copy of its articles of incorporation and charter duly certified by the officer having the custody of such articles, that such company is organized under the laws of such state or country with the amount of capital stock and assets required by this act; third, if not incorporated, a certificate setting forth the nature and character of the business, the location of the principal office, the names of the persons composing the association, the amount of capital employed therein, and the names of the officers of the association; and if such association be formed out of the United States, the certificate must contain the name of the chief executive officer or manager in the United States, together with the trustees appointed by the association to manage its affairs in the United States, and the certificate may be made by such manager.

SEC. 4. The commissioner shall issue his certificate to any fire or marine insurance company to transact business in this state under the following

conditions: First, if a company, organized under the laws of the Territory of Washington or the laws of this state, when he is satisfied that the provisions of this act in relation to such corporation have been complied with; second, if a company, corporation or association of any of the United States or territories, when he is satisfied that the company corporation or association has a paid-up and unimpaired capital of one hundred thousand dollars; third, if a foreign company, corporation or association, when he shall be satisfied that the company, corporation or association has made a deposit with the treasurer of this state, or with the proper officers of some other state, of not less than two hundred thousand dollars, in the bonds of the United States, the bonds of this state, or the bonds of the state of New York or Massachusetts, in trust for the benefit of its policy-holders in the United States, and that the said two hundred thousand dollars is unimpaired and free from all liabilities under the provisions of this act.

SEC. 5. It shall not be lawful for any company, corporation or association to transact the business of fire or marine insurance in this state, unless the company, corporation or association shall have complied with the provisions of this act, and obtained the certificate of the commissioner as provided.

SEC. 6. If any insurance company, its agents or attorney, shall issue a fire or marine policy upon property within this state without having complied with the laws of this state, the agent or attorney so issuing the policy or accepting the application for the same, shall be deemed guilty of a misdemeanor, and be subject to a fine of not less than one hundred dollars or more than five hundred dollars, and imprisonment for a term not exceeding six months, in the discretion of the court.

SEC. 7. It shall be the duty of the commissioner to make a detailed examination of all companies organized under the laws of this state or the Territory of Washington, at least once a year; upon such examination he shall ascertain if the laws relating to payment of capital, investment of moneys and methods of doing business are complied with. If, upon such examination, he shall find that the capital stock of such company is impaired, he shall order such impairment made good, or the capital stock reduced the amount of such impairment: Provided, that no reduction of capital shall be made which will reduce the capital of any company to a less amount than is required herein, and if the company so required to make good or reduce its capital stock refuses or neglects within a reasonable time so to do, the commissioner shall revoke its certificate to do business, and shall apply to any judge of a superior court having jurisdiction for an order upon said company to show cause why its charter should not be revoked and a receiver appointed to wind up its affairs.

SEC. 8. Upon the written representation of three citizens and belief of the commissioner that any company organized outside of this state has less than the paid-up, unimpaired cash capital required by this act, it shall be the duty of the commissioner to make such investigation, or require such proof, as shall be satisfactory to him concerning the financial condition of such company; Provided, however, the certificate of the insurance officer of any state, having an insurance department, that such company has the required paid-up and unimpaired cash capital, shall be accepted by the commissioner as satisfactory. If such company does not, within sixty days after demand of the commissioner, produce such certificate, the commissioner shall revoke his certificate of authority to do business in this state, and in the meantime may

withdraw or withhold his certificate of authority until said certificate is produced. If any officer or agent of the company shall issue or deliver, or agree to issue and deliver, any policy of the company covering any property in this state while such certificate of authority is withheld or withdrawn, he shall be deemed guilty of a misdemeanor, and, on conviction, subjected to the penalties provided for misdemeanors,

SEC. 9. Every fire or marine insurance company doing business in this state shall file a statement with the commissioner, on or before the fifteenth day of January in each year, verified by the oath of the principal executive officer or manager residing within the state, showing the business done in this state during the year ending the thirty-first day of December next preceding They shall also make aud file with said commissioner, before the first day of March in each year, a complete statement showing the condition of every such fire or marine insurance company on the thirty-first day of December next preceding, and such statement must show: First, the amount of capital stock of the company; second, the property or assets held by the company; third, liabilities of the company, which must include the re-insurance reserve, as provided by this act; fourth the income of the company during the preceding year; fifth, the expenditures of the preceding year; sixth, the amount of risks written during the year, amount of risks expired during the year, and the total amount at risk on the thirty-first day of December next preceding.

SEC. 10. No insurance company organized outside of this state shall be permitted to do business in this state until such company shall have filed with the commissioner a power of attorney which shall authorize a citizen and resident of this state to make and accept service in any proceedings in any court in this state, or the United States herein. If any attorney of any insurance company appointed under the provisions of this act shall remove from the state or become disqualified in any manner from accepting service, and if any citizen or resident of this state shall have any claim by virtue of any insurance policy issued by any company not represented by attorney in this state, valid service may be made on such company by service upon the commissioner; Provided, that in such case the commissioner shall iminediately notify such company and the principal agent for the Pacific coast, enclosing a copy of the service by mail, postpaid: And provided further, that in such case no proceedings shall be had within forty days after such service on the commissioner.

SEC. 11. When any state shall require insurance companies of other states to deposit with some officer of such other state securities in trust for policy-holders of such companies as a pre-requisite to their transacting business in such state, the treasurer of this state shall receive from any insurance company of such other state the securities required by the laws of such other state ou deposit, and hold the same in trust for the policy-holders of such company, but such company may collect and receive the interest aud dividends thereon, and withdraw them on d-positing with the said treasurer other securities of like character an value. The treasurer shall issue a certificate under seal of such deposit for each state which shall require the same, which shall state the items and amount of securities thus deposited. and that he is satisfied that they are of the market value represented therein, but no securities shall be estimated above the par value of the same, nor shall any securities be withdrawn except as provided in this section; Provided, that the provisions of this section shall not take effect

until after the expiration of one year from the date this act shall go into effect.

SEC. 12. An examination shall annually be made by the treasurer, of the securities held by him in trust as aforesaid, from each insurance company, and if it shall appear at any time that they amount to less than the sum required for the purpose for which such deposit was made, he shall notify said company thereof, and unless the deficiency is made up within thirty days, shall countermand all the certificates he may bave issued to said company under the preceding section, and give notice thereof to the officers of the state to whom said certificate may have been transmitted.

SEC. 13. When said company shall have caused all its unexpired policies to be paid, canceled or re-insured, and all its abilities under such policies hereby to be extinguished, or to be assumed by some other responsible company, he shall, on application of such company, verified by the oath of its president or secretary, and on being satisfied that all its policies are so paid, canceled, extinguished or re-insured, deliver up to it such securities. SEC. 14. The commissioner must keep and preserve in a permanent form a full record of his proceedings, including a concise statement of the condition of each company examined by him. It shall be the duty of the secretary of state to furnish each of the county clerks of this state, quarterly, a certified statement of all companies doing business in this state that have complied with the provisions of this act, and such certificate shall be posted in the office of such county clerk for the inspection of the public.

SEC. 15. The commissioner shall require in advance the following fees: First, for filing the articles of incorporation or certified copy of articles, or other certificates required to be filed in his office, and issuing certificate of license, ten dollars; second, for filing the annual statement required to be filed, five dollars; third, for filing any other papers required by this chapter to be filed, one dollar; fourth, for furnishing copies of papers filed in his office, twenty cents per folio; fifth, for certifying copies, one dollar each; sixth, for examination of any company organized under the laws of this state, five dollars per day, which sum shall be collected from the company so examined; Provided, that the fees arising from this duty shall be paid into the state treasury.

SEC. 16. Two or more persons may form a corporation for the purpose of making insurance against loss or damage by fire, lightning, cyclone, tornado or hail, or against loss or damage by the risk of marine or inland navigation, by complying with the statutes of this state in relation to the formation of incorporated companies.

SEC. 17. Any company or corporation organized under the laws of the Territory of Washington, or under the laws of this state prior to the taking effect of this act; or under the provisions of this act, for the purpose of engaging in the business of fire or marine insurance, must have a subscribed capital of not less than one hundred thousand dollars, of which not less than fifty thousand dollars must be paid in in cash before the issuance by such company or corporation of any policy of insurance under the provisions of this act.

SEC. 18. No company formed under this act shall, directly or indirectly, deal or trade in or sell wares or merchandise, or other commodities whatsoever, except such articles as may have been insured by such company and claimed to be damaged by fire, lightning, cyclone, tornado, hail or water.