somewhat similar to that of New York, which see. A law of 1917 permits regularly authorized fire insurance companies to write policies covering the hazards of sprinkler leakage, war risk and automobile in

surance.

MUTUAL COMPANIES-See "Domestic Companies." Mutual companies may decline to receive premium notes, provided policyholders are made liable by the policy contract up to twenty times the cash premium paid. PRELIMINARY DOCUMENTS-Company must file with the Commissioner a certified copy of its charter, a verified statement showing the condition and affairs of the company, copy of examination by home State authorities, power of attorney appointing the Insurance Commissioner attorney to accept service of process and a certificate of the appointment of a general agent of the company for Rhode Island. Certificate of compliance with laws of home State required annually, with annual statement, or as soon as possible thereafter. PUBLICATION-Chap. 220, Sec. 16. "The Insurance Commissioner shall annually in the month of February publish for distribution an abstract of the statements filed in his office by fire and fire and marine insurance companies, as required by section 15 of this chapter, and the expense of publishing and distributing said abstracts shall be paid by such insurance companies."

RECIPROCAL INSURANCE-See "Lloyds."

REINSURANCE-No express prohibition of reinsurance in unauthorized companies, and the attorney-general construes the law as not forbidding such transactions. See "Resident Agents."

REINSURANCE RESERVE-One-half of premiums received on policies having less than one year to run from the date of policy, and pro rata of those for longer terms.

RESIDENT AGENTS—Chap. 220, Sec. 6. "Foreign companies admitted to do business in Rhode Island shall make contracts of insurance only through lawfully constituted and licensed resident agents." Penalty for violation, $100 to $500 for each offense.

RETALIATORY LAW-Chap. 219, Sec. 23. "Whenever by the laws of any other State of the United States any fees, charges, taxes, deposits of money or of securities or other obligations or prohibitions are imposed on insurance companies incorporated or organized under the laws of this State, or on the agents of such insurance companies so long as such laws continue in force, the like fees, charges, taxes, deposits and obligations shall be imposed on the like insurance companies doing business in this State which are incorporated or organized under the laws of such other State, and on their agents." (As amended in 1914.)

SEMI-ANNUAL STATEMENTS-Not required. STANDARD POLICY—A standard form of policy similar to the New York form is required to be used, under penalty of $50 to $200; but any policy issued will be held to be valid as against the company issuing it. Under a law passed in 1911, a company may, with the written approval of the

Insurance Commissioner, vary the arrangement of the conditions and provisions of the Standard policy. TAXES-A tax of two per cent on the amount of premiums received and assessments collected during the calendar year, after deducting reinsurance where the reinsuring company agrees to pay the tax and return premiums, except in cases where the reinsuring company is not admitted, is collected from each stock company, and a tax of one per cent from each mutual company. Reinsurance effected in unadmitted companies is not allowed to be deducted. Mutual companies are not permitted to deduct dividends or unearned premiums applied in part payment of premiums or returned to policyholders in cash or otherwise, except return premiums paid in accordance with the standard policy form by companies using that form. Domestic companies must pay this tax, not only on their Rhode Island business, but upon direct or reinsurance premiums on property located in any other State, on which the company has not paid and is not liable to pay a tax to such State. Tax is payable to the general treasurer on first Monday in April by domestic companies, and during the month of January by the agents of companies of other States. See "Retaliatory Law." Domestic mutual company is liable under Tax Act of 1912 to taxation on the intangible property in own where located. Stock companies paying premium tax are exempt from tax on intangible personal property. Franchise tax law of 1916 (affecting domestic corporations) exempts insurance companies. TAX STATEMENTS-Must be filed in January with the general treasurer. Penalty for failure to make return, or for filing false statement, fine not exceeding $1000; and suit shall be begun on delinquent agent's bond to recover tax. Statements are filed by agents. Domestic mutual company files returns annually with tax assessors of cities wherein principal office is located.

VALUED POLICY-No provision.

None.

None.

COUNTY TAXES AND FEES.

MUNICIPAL TAXES AND FEES.

PROVIDENCE-Protective Department, 11⁄2 per cent on premiums.
CALENDAR-RHODE ISLAND

On or before

Premium tax is payable by agents of other than domestic com-
panies.

Tax statements must be filed by agents with General Treasurer.
Annual statement must be filed.

Certificate of compliance is required.

Publication fee is payable.

I

Agents' licenses must be procured.

Bonds ($200) required of agents to secure tax payments. April.(1st Monday) Premium tax is payable by domestic companies.

STATE REQUIREMENTS.

AGENTS DEFINED-Act of 1883, Sec. 6. "Any person who solicits insurance in behalf of any insurance company not organized under, or incorporated by, the laws of this State, or who takes or transmits other than for himself any application for insurance or any policy of insurance to, or from, such company, or who advertises or otherwise gives notice that he will receive or transmit the same, or who shall receive or deliver a policy of insurance of any such company, or who shall examine and inspect any risk, or receive, collect or transmit any premium of insurance, or make or forward any diagram of any building or buildings, or do or perform any other act or thing in making, or the consummating of, any contract of insurance for, or with, any such company, other than for himself, or who shall examine into and adjust, or aid in adjusting, any loss for, or in behalf of, any such insurance company, whether any such acts shall be done at the instance or request, or by the employment of, such insurance company, shall be held to be acting as the agent of the company for which this act is done or risk is taken." The Insurance Commissioner has ruled that under Sec. 1810, of the insurance laws, an agent who brokers a policy with another agent, is the agent of the company whose policy he delivers. AGENTS' LICENSES—Each agent must procure from the Insurance Commissioner a license for which the charge is fifty cents. Each solicitor, if not a member of a firm, must have a license. Licenses expire March 31, annually. Penalty for acting as agent without a license, fine of not over $100, or imprisonment for not more than 30 days.

ANNUAL STATEMENTS-Must be filed with Insurance Commissioner by March 1, showing condition as of December 31 preceding. Penalty for failure to file annual statement, revocation of authority. See "Tax Statements."

ANTI-COINSURANCE-No statute forbidding use of coinsurance clauses. ANTI-COMPACT-Compacts are forbidden except in compliance with the Rating Bureau Law of 1917. See "Rating Schedules to be Filed." ANTI-DISCRIMINATION-There is a law prohibiting discrimination in rates between risk of the same class. See "Anti-Compact." A licensed company may make a competing rate to meet competition of an unlicensed company.

ATTORNEY-The Insurance Commissioner must be authorized to accept service of all legal processes. Service shall only be made upon such attorney, must be in duplicate and shall be deemed sufficient service upon the company.

CANCELLATION OF POLICY-No provision. CAPITAL REQUIRED-Company must possess at least $100,000 of surplus or capital, or shall file a certificate that it has deposited with some State official securities worth $100,000, and shall deposit with the Insurance Commissioner of South Carolina securities worth $10,000, or a surety com

pany bond for that sum, in the discretion of the Insurance Commissioner. Penalty for violation, fine of $500 to $1000. COMMISSIONS TO NON-RESIDENTS-Full commissions must be received by resident agents, but they may allow other agents or brokers not exceeding one-half of the commissions which they receive on the business written. DEPOSIT-Ins. Laws, Sec. 13. "Before licensing any insurance company to do business in this State, the Insurance Commissioner shall require each such company to deposit with him an approved bond or approved securities, in the discretion of the Commissioner, as follows: *** each fire * * * insurance company, $10,000. *** If a bond be given, it shall be conditioned to pay any judgment entered up against any such company in any court of competent jurisdiction in this State, and such judgment shall be a lien upon the bond or securities. In case a bond is given, the judgment creditor shall have the right to bring suit on said bond for satisfaction of the judgment in the county in which the judgment is received." See "Capital Required."

DOMESTIC COMPANIES-Two or more persons may organize a corporation after twenty per cent of capital is paid in, by filing articles of incorporation with the Secretary of State and a copy of same with the register of the county in which located. EXAMINATIONS-Sec. 10. "***He (the Commissioner) shall have authority to examine into the conditions of any company doing business in this State, and shall have power to summon witnesses and take testimony as he may deem fit and proper for the protection of the public interests of the State. At least once in two years, and whenever he determines it to be prudent, he shall, personally or by deputy, visit each domestic company and thoroughly inspect and examine its affairs, determine and fix the value of its assets and test and declare its ability to fulfill its obligations and maintain its solvency according to proper standards. When he determines it to be prudent for the protection of the policyholders in this State, he shall in like manner visit and examine, or cause to be visited and examined by some competent person or persons whom he may appoint for that purpose, any foreign company applying for admission or already admitted to do business in this State, and such company shall pay the reasonable cost for such examination. FEES-Annual license fee, payable to the Insurance Commissioner on or before March 31, $100 for company writing fire or marine insurance, including marine and inland transportation, lightning and sprinkler damage. A tax of $40 annually on fire companies and $15 on marine companies, and $25 on mutual companies is levied for the support of the Insurance Department. Quarterly pro rata abatements are allowed companies admitted after October I.

FIRE DEPARTMENT TAX-Act of March 7, 1910, imposes a tax of one per cent on all premiums written in cities or towns having regularly organ

ized fire departments members of the State Firements Association, with equipment valued at $1,000 or more, upon companies of other States or counties. Tax is payable within sixty days after December 31, yearly, to the Insurance Commissioner. Penalty for failure to pay tax revocation of license.

FIRE MARSHAL-Investigation of fires and origin thereof is provided for. See "Taxes." Criminal carelessness is punishable under law.

FOREIGN COMPANIES' HOME OFFICE STATEMENTS-None required.

GENERAL PENALTY-For violation of insurance law, or disobedience of a lawful order of the Insurance Commissioner, fine of $100, or imprisonment not exceeding 30 days. IMPAIRMENT-Sec. II. "If the Commissioner is of opinion, upon examination or other evidence, that a company is in an unsound condition, that it has failed to comply with the law or with the provisions of its charter, or that its condition is such as to render its proceedings hazardous to the public or to its policyholders, or that its funds, if it is a life insurance company, are less than its liabilities, exclusive of its capital, or if its officers or agents refuse to submit to examination or to perform any legal obligation relative thereto, he shall revoke, or suspend all certificates of authority granted to said company, its officers or agents, and shall cause notices thereof to be published in a newspaper of general circulation in this State, and no new business shall thereafter be done by its agents in this State while such default or disability continues, nor until its authority to do business is restored by the Commissioner."

INVESTMENTS PRESCRIBED-See "Taxes."

LICENSED BROKERS-Under Law of March 2, 1916, insurance brokers residents of the State, may be licensed by the Insurance Commissioner to represent citizens of the State for the placing of insurance in insurers licensed in South Carolina or any other State or country. All licenses so issued expire on March 31 of each year, and the annual license fee ($25) may be prorated quarterly after October I of each year.

LIMIT ON A SINGLE RISK-No provision.

LLOYDS-Same conditions apply as those relating to corporations. MISCELLANEOUS-Residents may procure insurance in unlicensed com

panies on paying a tax of three per cent on the premiums and securing authorization for the adjustment of a loss under such policies. The adjuster adjusting a loss under such a policy must pay a fire inspection tax of one-tenth of one per cent upon the amount of the loss. An agent for an unlicensed company may be authorized to collect premiums upon South Carolina policies in force, but not to write new business, on payment of tax of one per cent on net premiums. License of company removing a case to a Federal court may be revoked. Company promotions are under supervision of Insurance Commissioner, according to a law passed in 1915.