written or otherwise, to any person insured in any company for the purpose of inducing or tending to induce such person to take out a policy of insurance, or for the purpose of inducing or tending to induce a policy holder in any company to lapse, forfeit, or surrender his insurance therein, and to take out a policy of insurance in another like company.

Upon satisfactory evidence of the violation of the provisions of this section, by any insurance company, association or society, its officers, solicitors or agents, or any insurance broker, the insurance commissioner shall forthwith revoke the certificate of authority of such offending company, association or society, its officers, solicitors or agents or any insurance broker, and no license shall be issued to such company, association or society, officers, agents, solicitors or brokers, within one year from the date of the revocation of such license; provided, however, that the violation of this law by an agent, solicitor or broker shall not be considered a violation by the company that such agent, solicitor or broker represents. Any insurance company, association or society, agent, solicitor or broker, or any person, firm, association or corporation violating the provisions of this section of this act shall be guilty of a misdemeanor and upon conviction thereof, the offender or offenders shall be sentenced to pay a fine of one hundred dollars for each and every violation, or in the discretion of the court, to imprisonment in the county jail of the county in which the offense is committed.

Testimony.

Sec. 15b. No person shall be excused from testifying or from producing any books, papers, contracts, agreements or documents at the trial or hearing of any person or company, association or society, charged with violating any provision of sections fifteen and fifteen-a of this act, on the ground that such testimony or evidence may tend to incriminate himself, but no person shall be prosecuted for any act concerning which he shall be compelled so to testify or produce evidence, documentary or otherwise, except for perjury committed in so testifying.

Solicitors.

Sec. 15c. Any local insurance agent for companies other than life, licensed by the insurance commissioner to represent one or more insurance companies, may, with the approval of the companies represented, apply to the insurance commissioner upon forms provided by him, for license for such solicitors as such local agent may desire to employ, and the insurance commissioner shall not issue such solicitor's

license to any person whom he finds is not trustworthy or competent to transact the business for license to do which application is made; and which license shall be subject to the same laws in regard to expiration and renewal as the agent's license; provided, however, that no local agent shall appoint more than two solicitors. The fee for a solicitor's license shall be one dollar.

A solicitor's license may, at any time, be revoked at the request of the employing local agent and revocation shall automatically become effective upon the cancellation or expiration of the license of the employing local agent. "Solicitor" is hereby defined to be a person duly appointed, authorized and employed by duly commissioned local agent to solicit and receive applications for insurance for such agent and to collect premiums for him.

In no case shall a solicitor's license be requested when the principal use of such license is to effect insurance upon the property, person or liability of such person, or to circumvent the enforcement of the antirebate laws.

Agents' Licenses.

Sec. 15d. No person shall act in the solicitation or procurement of applicants for, or policies of, insurance for any company referred to in this chapter except as solicitor under section fifteen-c of this law, without first procuring a certificate of authority as agent from the insurance commissioner, which certificate shall be renewable on the first day of March in each year; and said insurance commissioner shall not issue such certificate of authority to any person whom he finds is not trustworthy and competent to transact the business for authority to do which application is made; and on conviction of any person acting as such agent, of the violation of any provision of this law, the insurance commissioner shall forthwith revoke the certificate of authority issued to him, and no certificate shall be thereafter issued to such convicted person, until one year from the date of conviction.

Whenever the insurance commissioner upon investigation is satisfied that any agent acting under his supervision and holding a certificate of authority from him is violating or has violated the insurance laws of West Virginia, or that he is incompetent or untrustworthy, or whenever he shall proceed to revoke a certificate or license of such agent under any section of this law, he shall first notify such agent of his findings, and state in writing the complaint against him and require such person on a date named, which date shall not be less than

thirty days after service of notice, to show cause why his license should not be revoked.

If on the date named in said notice the said agent does not present good and sufficient reasons why his authority to transact business in this state should not be revoked, the said commissioner may revoke such person's certificate of authority. All decisions and findings of the insurance commissioner made under the provisions of this section shall be reviewable by proper proceedings in any court of competent jurisdiction within this state; provided, however, that nothing contained in this section shall be taken or construed as preventing any such agent from doing business under the authority of such certificate during the pendency of any proceeding taken to review an adverse decision of the insurance commissioner.

Powers of the Insurance Commissioner to Refuse or Revoke Licenses.

Sec. 15e. The insurance commissioner may refuse to issue a certificate of authority to any domestic or foreign company if, in his judgment, such refusal will best promote the interests of the people of this state.

When the insurance commissioner upon investigation is satisfied that any company acting under his supervision and holding a certificate of authority from him is insolvent, or has failed to comply with or is violating the insurance laws of West Virginia, or is conducting business fraudulently, or is not carrying out its contracts in good faith, or whenever he shall proceed to revoke such certificate or license under any section of this law, he shall first notify any such company of his findings, and state in writing the complaint against it, and require the company on a date named, which date shall be not less than thirty days after service of notice, to show cause why its license. should not be revoked. If on the date named in said notice the matter complained of has not been corrected to the satisfaction of the insurance commissioner, or the company does not present good and sufficient reasons why its authority to transact business in this state should not be revoked, he may revoke the authority of the company to continue business in this state. All decisions and findings of the insurance commissioner made under the provisions of this section shall be reviewable by proper proceedings in any court of competent jurisdiction within this state; provided, however, that nothing contained in this section shall be taken or construed as preventing any such company from continuing in good faith all contracts made in this state during the time such company was legally authorized to transact

business herein, or as preventing such company from doing business during the pendency of any proceeding taken to review an adverse decision of the insurance commissioner. Provided, however, that notice of such appeal is served on said commissioner within ten days after such adverse decision and that proceedings to appeal are taken within twenty days after the service of said notice.

Reduction of Capital Stock.

Sec. 15f. No company licensed by the insurance commissioner shall reduce its capital stock until such action is approved by the insurance commissioner.

Dividends.

Sec. 15g. No company licensed by the insurance commissioner shall declare or pay dividends to stockholders until approved by the insurance commissioner, if by the payment of such dividend the net surplus of such company would thereby be reduced to an amount less than one-eighth of its capital stock.

Re-Insurance.

Sec. 15h. No company licensed by the insurance commissioner shall transfer or re-insure, directly or indirectly, substantially all of its West Virginia risks or contracts until a certified copy of the agreement or contract by which such transfer or re-insurance is to be effected, has been filed with and approved by the insurance commissioner.

Companies Withdrawn.

Sec. 151. Any company now licensed or which may hereafter be licensed by the insurance commissioner to do business in West Virginia, shall, so long as it retains any West Virginia business on its books, be subject to the examination of the West Virginia insurance department, and the auditor shall remain its attorney in fact for service of process for any action growing out of contracts or policies made by such company while licensed in this state. If upon examination as provided in this section, it shall be determined that the capital stock of any such company is impaired, it shall be given one month to make good such impairment and upon failure to comply with this requirement to the satisfaction of the insurance commissioner, it shall immediately re-insure its West Virginia business under the conditions provided in section fifteen-h.

Reserves.

Sec. 15j. The insurance commissioner may require the same standards for reserves for companies other than life and fire licensed

to do business in this state, as are required by any of the states in which companies of the same class do business; provided, that in no case shall the reserve be less than that required by the laws of this state.

Penalties.

Sec. 15k. Every company violating any provision of sections fifteen-f, fifteen-g, fifteen-h or fifteen-i of this act shall, upon conviction, be fined not more than ten thousand dollars and not less than one thousand dollars.

Sec. 151. Section sixteen of chapter seventy-seven of the acts of one thousand nine hundred and seven, and all acts or parts of acts inconsistent with this act are hereby repealed.

(House Bill No. 275.)

CHAPTER 20.

AN ACT providing for the supervision of rate making associations.

(Passed February 18, 1913. In effect ninety days from passage. Governor February 21, 1913.)

Approved by the

rates, when; record to be kept; this section not applicable to. Penalty for failure to comply with provisions of this act. Appropriation to carry out provisions of act. Inconsistent acts repealed.

Be it enacted by the Legislature of West Virginia:

Sec. 1. Every corporation, association or bureau which now exists or hereafter may be formed, and every person who maintains or hereafter may maintain a bureau or office, for the purpose of suggesting, approving or making rates to be used by more than one underwriter for insurance, or property or risks of any kind located. in this state, shall file with the insurance commissioner a copy of the articles of agreement, association or incorporation, and the by-laws and all amendments thereto under which such person, association or bureau operates or proposes to operate together with his or its business address and a list of the members or insurance corporations represented or to be represented by him or it, as well as