imprisoned in the county jail not less than thirty days nor more than one year, or both, in the discretion of the court: and said certificate or renewal so secured shall be absolutely void.

SEC. 8. All corporations, associations or societies, transacting business under the provisions of this act, may provide by by-laws for the accumulation of a surplus, general or guarantee fund, which may be invested only in the corporate name of the association or society, in the United States, Territorial, or other first-class convertible bonds or stocks, upon which interest has not been in default. Such funds, when so set apart and so invested, shall, with the increase thereof, belong to such corporation, association or society, and not to the directors, trustees, managers or officers thereof; and shall be used only for mortuary benefits, without assessment, or applied in payment of future assessments, or otherwise used for the promotion of the object or objects for which said funds are specially provided and set apart, and such use shall not be deemed or construed to mean a profit received by members within the meaning of the statutes of this Territory.

SEC. 9. All corporations, associations or societies, organized under the provisions of this act, or that have heretofore been organized within this Territory, under any charter, compact, or agreement, or statute of this Territory, for the purpose of furnishing life, accident or permanent disability indemnity or mortuary benefit on the assessment plan, in accordance with the provisions of the first section of this act shall not be deemed insurance companies, nor subject to the laws of this Territory relating thereto, but shall comply with and conform to all the requirements and provisions of this act; and shall by their president and secretary, or like officers, make to the territorial auditor annually, on or before the first day of March, in each and every year, a statement, under oath, for the year ending on the thirty-first day of December next preceding, upon blanks furnished by said auditor, which blanks shall be such as will show its financial condition, assets, liabilities, total amount of indemnity in force, number of members, number whose membership has terminated during the year, and cause thereof; total receipts and sources thereof; total expenditures and objects thereof, and the average amount paid on each certificate, and shall pay into the treasury of the Territory, upon filing said certificate, a fee of twentyfive dollars, and the said auditor shall publish said statement in his annual report; Provided, That nothing herein contained shall be held to apply to any organization of a purely social, religious or benevolent character, where no commissions are paid, and no salaried officers or agents employed; nor to any local association or society organized under or subject to the control of a grand or supreme body; nor to any secret organization having subordinate lodges or councils which has been organized under the laws of this or any other Territory, and which is now permitted to do business in this Territory

SEC. 10. The territorial auditor shall have authority to appoint an expert to verify the statements aforesaid, by examination of the books and papers of the corporation, and make such other examination as he may deem necessary. The expense of such examination shall be paid by the corporation, association or society having its books examined, and shall not exceed the necessary traveling and hotel expenses of said expert, and reasonable compensation for such expert while engaged in such examination. SEC. 11. The territorial auditor shall, at the request of any corporation, association or society, doing business under the provisions of this act in this Territory on the assessment plan, make examination of such corporation, and shall furnish a certificate of the results of such examination, showing

all its assets and how invested, and such other particulars as may be deemed necessary to show the character and condition of said corporation, and the necessary expense of the said examination shall be paid by the corporation requesting the same.

SEC. 12. Whenever any corporation, association or society, organized or having transacted business under the provisions of this act, shall neglect or refuse to make its annual statement as required by this act or whenever the said auditor shall find, upon examination, as provided in section ten of this act, that any willfully false or untrue statement in any material respect have been made, or that the business of the corporation, association or society has been conducted fraudently, or in willful violation of any of the provisions of this act, or that the corporation has transacted business different from that authorized by its certificate of incorporation, he shall communicate the fact to the district attorney, whose duty it shall be to apply to the district court where its principal office is located, for an order requiring the officers or directors, trustees or managers of such corporation to show cause why they should not be removed from office, or its business closed; and the court shall thereupon hear the allegations and proofs of the respective parties, and if it shall appear to the satisfaction of the said court that any one or more of them have been guilty of fraud or any material irregularity or violation of the law to the injury of the said corporation, association or society, or of non-compliance with any of the provisions of this act, the court shall decree a removal from office of the guilty party or parties, which decree shall forever debar him or them from holding a similar office, and shall substitute a suitable person or persons to serve until the regular annual meeting, or until a successor or successors are regularly chosen or elected; or, if it shall appear to the said court that the interest of its members or the general public so require, the court may decree a dissolution of such corporation, association or society, and a distribution of its effects.

SEC. 13. Any officer, director, trustee, or manager, or any other person having charge of the books and papers of any corporation conducting business under the provisions of this act, who shall wilfully neglect or refuse to comply with the provisions of this act, shall be subject to a fine of not less than ten dollars nor more than one hundred dollars for such offense. Any person who shall act as agent, or be instrumental in securing or inducing any person to become a member of any assessment plan, corporation, association or society, that has not complied with the provisions of this act, shall be deemed guilty of a misdemeanor, and shall be subject to a fine of not less than fifty dollars for each offense, and shall be imprisoned in the county jail, located in the county where conviction is secured, until such fine is paid, not exceeding thirty days for each conviction.

SEC. 14. The first statement to the territorial auditor, as required under the provision of section 9 of this act, shall be made on or before the first day of July, A. D., 1885, and shall embrace all the fact required by the provisions of this act, from the date of organization up to the thirty-first of December, 1884. Any corporation, association or society, failing or refusing to make the statement required by this section within the time specified, shall be proceeded against in the same manner, and shall be subject to the same penalty, as provided in section 12 of this act.

SEC. 15. Any corporation, association or society, organized under the laws of any other territory or government, for the purpose of furnishing life, accident or permanent disability indemnity upon the assessment plan, where benefits are paid to such as have an insurable interest only, complying with the provisions of this act, so far as applicable, and showing that

it has deposited with the proper authority or department of the Territory or State government under which it is incorporated, not less than fifty thousand (50,000) dollars as a guarantee fund for the security of its members, shall be licensed by the territorial auditor upon the payment into the territorial treasury of a fee of $100, to do business in this Territory, provided such corporation, association or society shall first deposit with the said auditor a certified copy of its charter or articles of incorporation, a copy of its statement of business for the preceding year, sworn to by its president and secretary, or like officers, showing a detailed account of expenses and income, the amount of life indemnity in force, its assets and liabilities, in detail, number of members, and a certificate, sworn to by the president and secretary, or like officers, setting forth that an ordinary assessment upon its members is sufficient to pay its maximum certificate of membership to the full limit named therein; a copy of its policy or certificate of membership, application and by-laws, which must show that death losses are in the main provided for by assessments upon the surviving members; and it shall legally designate a person or agent residing in the Territory to receive service of process for said corporation.

SEC. 16. Such corporation, associations or societies shall pay into the treasury of the Territory, upon filing each annual statement, a fee of $25, and in the event of its failure to make such statement on or before the first day of March of each year, the auditor shall revoke its license, and thereafter, or until such annual statement is made. it shall be deemed to be doing business unlawfully in this Territory. When the territorial auditor shall have reason to doubt the solvency of any foreign corporation, association or society, acting under the provisions of this act, and when he is not fully satisfied with the certificate of the insurance commissioner, or other like officer of the State, Territory or government of its organization, he may proceed to make an examination, as provided in this act for the examination of corporations organized in this Territory; and should he find that it has made fraudulent or untrue statements, or that it is conducting its business in an irregular and illegal manner, or if he shall be of the opinion that any such corporation in this Territory is conducting its business fraudulently, or is not in good faith carrying out its contracts with its members in this Territory, he shall report the same to the attorneygeneral, who shall thereupon commence proceedings, by writ of quo warranto, against such corporation or association, requiring it to show cause why its license to do business in this Territory should not be revoked. And any such foreign corporation or association now doing business in this Territory that shall refuse or neglect to comply with the provision of this act within the space of ninety days after passage thereof, shall be deemed to be doing business unlawfully; and if any officer, agent or employee of any such corporation or association shall do business in this Territory, or assist in, or knowingly permit the same, unless such coporation or association has complied with the provisions of the laws of this Territory applicable to the same, he shall be deemed guilty of a misdemeanor, and, upon conviction thereof, shall be fined not less than $50 nor more than $1,000, or be imprisoned in the county jail not less than thirty days nor more than one year, or both, in the discretion of the court.

SEC. 17. All laws or part of laws in conflict with this act are hereby repealed.

NOTE. By an act of the Legislature of 1887, all fees of every description collected by the territorial auditor are paid into the territorial treasury.

INSURANCE LAWS.

NEVADA.

AN ACT TO LICENSE AND REGULATE INSURANCE BUSINESS IN THIS STATE. [Approved February 23, 1881.]

The People of the State of Nevada, represented in Senate and Assembly, do enact as follows:

SECTION 1. No company corporation or association organized under the laws of this State, or any other State or government, or firm, or individual, shall be permitted to transact an insurance business in this State, without a certificate from the State Controller authorizing and permitting the transaction of such business.

SEC. 2. Corporations may be formed under the general laws of this State for the transaction of insurance business, but no such corporation shall be permitted to assume any risk as insurer, unless the same shall have at least five directors, who shall be residents and property owners in this State, and stockholders in the corporation, nor until such corporation shall have a paid-up, unimpaired cash capital equal to two hundred thousand dollars, in United States gold coin, which shall be invested in this State in State or United States bonds; bonds and mortgages on first-class, otherwise unincumbered, real estate, the market value of which shall be at least double the amount invested or loaned thereon; bonds of any city or county in this State, the issuance of which was duly authorzed by law; bonds of any railroad, wagon road, ditch, or canal incorporation or association. Provided, that such bonds or securities shall at no time be estimated as assets of such corporation at more than their actual cash market value; and nothing in this act shall be construed to permit any investment in mining stock.

SEC. 3. No loan shall be made to any stockholder by any insurance corporation formed under the laws of this State, nor shall any stockholder be interested in any way in any loan, pledge, security, or property of any insurance company organized under the laws of this State, except as stockholder in said company, and any property claimed as belonging to such company, standing in the name of any person or persons, shall not be admitted as an asset of such company.

SEC. 4. No association, firm, or individual, whose principal office shall be in this State, shall be permitted to transact business as insurer on terms more favorable than are defined in section 2 of this Act.

SEC. 5. The Controller of State is hereby authorized and required, upon the receipt of a written request, signed by three citizens of this State, or whenever from any cause he shall deem it necessary to make a thorough

examination of the books, accounts, securities, and all property belonging to any company incorporated under the laws of this State, and if he does not find capital paid up to the amount of two hundred thousand dollars, or if he shall find the capital impaired he shall give notice to such company to immediately repair its capital, and shall refuse to revoke his certificate of authority to such company to do business in this State; and if any company shall refuse to permit such examination, the Controller shall refuse or revoke his certificate of authority to such company. If, after such notice, refusal or revocation of his certificate by the Controller, such company shall continue to make contracts and issue policies, the officers or any officer, agent or any other person so violating the provisions of this Act, shall be deemed guilty of a misdemeanor, and on conviction thereof shall be fined the sum of five hundred dollars for each offense committed after the receipt of such notice, and, in default of payment of such fine, shall be imprisoned in the county jail of the county in which the offense' was committed, for a period not exceeding six months, or until such fine shall be paid.

SEC. 6. For the purpose of repairing the capital of insurance companies, or corporations, assessments may be levied upon the capital stock thereof, and collected as now provided by law for levying and collecting assessments upon the capital stock of other corporations in this State.

SEC. 7. For the purpose of examination, the Controller shall have free access to all books, papers and property of any insurance company formed under the laws of this State, and shall thoroughly inspect and examine the same, as far as necessary, to determine the financial condition and ability of such company to fulfill its engagements, and also to ascertain whether it has complied with all the requirements of this Act. And it shall be the duty of such company to permit its books to be opened to the inspection of the Controller, and otherwise to facilitate such examination. The Controller shall have power to examine any officer, agent or employee of such company, under oath, and require answers in writing, and if he shall find the books carelessly or improperly kept, or kept with intent to deceive, he shall have power to employ experts to thoroughly examine, rewrite, post and balance the same at the expense of such company; and the Controller shall refuse or revoke his certificate of authority to any company refusing to permit such examination, or to pay the legitimate expenses thereof.

SEC. 8. No insurance company organized outside the State of Nevada shall be permitted to do business in this State until it shows to the Controller, by the reports of the Insurance Commissioner or insurance officer of some other State having an insurance department, or by a certificate of such insurance officer, that it is possessed of a paid-up, unimpaired cash capital of at least two hundred thousand dollars, nor until such company shall have filed with the Controller a power of attorney, which shall set forth that such company is a corporation or duly organized insurer (naming the principal place of business of the company and the principal place of business for the Pacific Coast), which power of attorney shall authorize a citizen and a resident of this State to make and accept service in any proceeding in any of the Courts of justice in this State, or any of the United States Courts 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

6