DOMESTIC COMPANIES-Revised Code, Chap. 14, Sec. 3087. "Any number of persons, not less than seven, may form a corporation to carry on the business of insurance, either upon the stock or mutual plan, against loss or damage by fire, lightning, cyclone, tornado or hail, or the risks of inland navigation and transportation or to make insurance upon the lives of persons and every insurance pertaining thereto, and against accidental injuries, including the granting, purchasing and paying of annuities and indemnities, and to transact fidelity insurance and corporate suretyship. An insurance company incorporated under the provisions of this chapter shall have power to make insurance of any kind hereinbefore mentioned which shall have been expressed in its articles of incorporation." Revised Code, Chap. 14, Sec. 3088. "The articles of incorporation shall set forth in addition to what is required to be set forth in Chap. 11, Sec. 2861, as follows: 'The name of the corporation; the purpose for which it is founded; the place where its principal business is to be transacted; the term for which it is to exist; the number of its directors or trustees, and names and residences of those who are to serve until their successors are elected and qualified; if there is a capital stock, its amount and the number of shares into which it is divided; the kind of insurance proposed to be made, and whether on the stock or mutual plan; the period for the commencement and termination of its fiscal year, and the period for which it is incorporated, not to exceed thirty years, and shall be filed in the office of the Commissioner of Insurance.'" Minimum capital stock, $100,000, of which $25,000 must be paid in before company begins business, and the balance within twelve months after filing articles of incorporation; except that time may be extended not exceeding one year by the Commissioner for good cause. EXAMINATIONS-Revised Code, Chap. 14, Sec. 3125. "Before granting certificates of authority to an insurance company to issue policies or make contracts of insurance the Commissioner of Insurance shall be satisfied by such examination and evidence as he sees fit to make, and require that such company is duly qualified under the laws of the State to transact business therein. As often as once in two years he shall personally, or by his deputy or chief clerk, visit each domestic insurance company and thoroughly inspect and examine its affairs, especially as to its financial condition and ability to fulfil its obligations, and whether it has complied with the law. He shall also make an examination of any such company whenever he deems it prudent to do so, or upon the request of five or more of the stockholders, creditors, policyholders or persons pecuniarily interested therein, who shall make affidavit of their belief, with specifications of their reasons therefor, that such company is in an unsound condition. Whenever he deems it prudent for the protection of the policyholders in this State he shall in like manner visit and examine, or cause to be visited or examined by some competent person appointed by him for that purpose, any foreign insurance company applying for admission, or already admitted, to do business by agencies in this State, and such company shall pay the proper charges in

curred in such examination, including the expense of the Commissioner or his deputy."

FEES

For filing declaration and charter, $25; for filing annual statement, $10; for each certificate of authority, $2; for each abstract for publication, $2; for each agents' license (only one individual to be included in each certificate), $2; for each process served upon the Commissioner, $2; for copies of papers, 25 cents per folio, and for affixing seal thereto, $1; for official examinations each company shall pay the proper charges incurred in such examination, including the expense of the Commissioner and his deputy. Fees are payable to Commissioner of Insurance.

FIRE DEPARTMENT TAX-A tax of two per centum on premiums received in cities and towns having standard fire departments is imposed for the support of the latter, but this is included in the 22 per cent tax on gross premiums.

FIRE MARSHAL-A State Fire Marshal, with the co-operation of local authorities, investigates all fires.

FOREIGN COMPANIES' HOME OFFICE STATEMENTS-Must be filed by December 1, covering the preceding calendar year.

GENERAL PENALTIES-For offenses for which no penalty is specifically provided, $100 to $500. License is revoked on failure to pay judgment. IMPAIRMENT-Revised Code, Chap. 14, Sec. 3099. "Whenever it appears to the Commissioner of Insurance that the capital of a domestic company is impaired to the extent of one-fourth or more on the basis fixed in Sec. 3095, he shall notify the company that its capital is legally subject to be made good in the mode provided by Sec. 3100, and if such company shall not, within three months after such notice, satisfy him that it has fully repaired its capital, or reduced its capital as provided in Sec. 3101, he shall institute proceedings against it in accordance with Sec. 3128." Sec. 3128. "If the Commissioner of Insurance is of the opinion upon examination or other evidence that a foreign insurance company is in an unsound condition, or if it has failed to comply with the law, or if it, its officers or agents, refuse to submit to examination, or to perform any legal obligation in relation thereto, or if a life insurance company, that its actual funds, exclusive of capital, are less than its liabilities, he shall revoke or suspend all certificates of authority granted to it or its agents, and shall cause notifications thereof to be published three times, once in each week for three successive weeks in some newspaper published at the seat of the Government, and no new business shall thereafter be done by it or its agents in this State while such default or disability continues, nor until its authority to do business is restored by the Commissioner. If upon examination he is of the opinion that any domestic insurance company is insolvent or has exceeded its powers or has failed to comply with any provisions of law, or that its condition is such as to render its further proceedings hazardous to the public or its policyholders, he shall apply to the district court of the county in which the principal office of the company is located to issue an injunction restraining it, in whole or in part, from further proceeding with its business."

INVESTMENTS PRESCRIBED-A domestic company may invest its capital and funds or any part thereof in bonds or treasury notes of the United States or in bonds of the State or in bonds of any county or incorporated city in the State authorized to be issued by the legislative assembly, and may loan such capital and funds or any part thereof on the security of such bonds, notes or upon bonds or mortgages on improved unencumbered real estate within the State worth double the amount loaned thereon; but the surplus moneys over and above the capital stock of such insurance companies may be invested in or loaned upon the pledge of bonds of the United States or of any of the States, or stocks, bonds or other evidences of indebtedness of any solvent dividend-paying institution incorporated under the laws of the United States except its own stock, provided always that the market value of above evidences of indebtedness shall be at all times during the continuance of such loan at least ten per cent more than the amount loaned thereon. LIMIT ON A SINGLE RISK-Ten per cent of paid-up capital, exclusive of any guaranty, surplus, or special reserve fund, unless the excess shall be reinsured in some other good reliable company.

LLOYDS—No provision. The word "company" in the law is defined as in

cluding all corporations, associations, partnerships or individuals engaged as principals in the business of insurance.

MUTUAL COMPANIES-Must have subscriptions for $200,000 or more of insurance (if a domestic company) upon one hundred risks. County mutuals may be formed by fifty persons in five adjoining counties, owning $50,000 of property which they desire to insure, or by twenty-five persons in one county, owning $25,000 of property. Other State mutuals must have at least $200,000 of insurance in force.

PRELIMINARY DOCUMENTS-Company must file with the Commissioner of Insurance certified copy of its charter and by-laws, power of attorney to Commissioner of Insurance, and a statement showing its financial condition,

PUBLICATION-Statements for publication made out on blanks furnished by the Commissioner of Insurance, together with the certificate of authority of the Commissioner, must be published at least three times in a newspaper of general circulation printed and published in each judicial district of the State in which the company has an agency. Commissioner of Insurance selects three newspapers in each judicial district, from which company selects one. Cost of publication, authorized rate for legal notices. A mutual company must publish statement once in county in which it does business. Proof of publication must be filed with the Insurance Commissioner within four months from the time of filing of annual statement. Approved bills, accompanied by publishers' affidavits, are sent to companies by the Insurance Department. RECIPROCAL LAW-Revised Code, Chap. 14, Sec. 3133. "Whenever the laws of any other State of the United States or foreign country shall require of insurance companies incorporated under the laws of this State, or

of the agent thereof, any deposits of securities in such State for the protection of policyholders or otherwise, or any payment for taxes, fines, penalties, certificate of authority, license or fees greater than the amount required for such purpose from similar companies of other States by the then existing laws of this State, then and in every such case, all insurance companies of such States establishing or having heretofore established an agency in this State, shall be and are hereby required to make the same deposit for a like purpose with the State Treasurer of this State, and to pay to the Commissioner of Insurance an amount equal to the amount of such charges and payment imposed by the laws of such other States upon the companies of this State and the agents thereof." REINSURANCE-Act of February, 1901, Sec. 2. "No fire insurance company or association shall reinsure, or assume as a reinsuring company, or otherwise, in any manner or form whatever, the whole or any part of any risk or liability, covering property located in this State, of any insurance company or association not authorized to transact business in this State." Penalty for violation, $500 for each offense, and for failure to pay fine, license shall be revoked until payment is made. The Insurance Commissioner rules that the acceptance of reinsurance of risks on North Dakota property by authorized companies from those which are not authorized, is illegal, but that a licensed company may reinsure its excess lines in an unauthorized company for the reason that no credit is given an authorized company for reinsurance given off, in arriving at the amount of premium income for taxation, and the admitted company is held responsible. Companies are not required to report premiums received from other companies. on account of reinsurance.

REINSURANCE RESERVE-Must be maintained at forty per cent of unexpired premiums.

RESIDENT AGENTS—Act of February, 1901, Sec. 1. "No insurance company or association not incorporated under the laws of this State, authorized to transact business therein, shall make, write, place or cause to be made, written or placed, any policy, duplicate policy or contract of insurance of any kind or character, or any general or floating policy, upon property situated or located in this State except after the said risk has been approved, in writing, by an agent who is a resident of this State, regularly commissioned and licensed to transact insurance business therein, who shall countersign all policies so issued and make a record of the same on books provided for that purpose and receive the commission thereon when the premium is paid, to the end that the State may receive the taxes required by law to be paid on the premiums collected for insurance on all property located in the State, and the agents be paid the commission thereon. Nothing in this act shall be construed to prevent any such insurance company or association, authorized to transact business in this State from issuing policies at its principal or department offices covering property in this State, provided that such policies are issued upon applications procured and submitted to such company by agents who are residents of this State,

and licensed to transact the business of insurance herein, and who shall countersign all policies so issued and receive the commission thereon when paid; provided, no provision of this section is intended to or shall apply to direct insurance covering the rolling stock of railroad corporations or property in transit, while in the possession and custody of railroad corporations or other common carriers, nor to the movable property of such common carriers used or employed by them in their business as common carriers of freight, merchandise or passengers." Penalty for violation, $500 for each offense, and for failure to pay fine, license shall be revoked until payment is made.

SEMI-ANNUAL STATEMENTS-None required. STANDARD POLICY.-The use of a standard policy form similar to that of New York is required. Penalty for using other than standard form, $50 to $100 for first, and $100 to $250 for each subsequent offense. See “Valued Policy." Clause covering loss or damage by explosion, when fire does not ensue, cannot be attached to a fire policy, under a ruling of the Insurance Department. TAXES-Two and one-half per cent of the gross premiums received in the State during the preceding year, less return premiums and cancellations and reinsurance premiums received from admitted companies, to be paid before renewal of certificates. Fire Marshal tax is levied on domestic stock and mutual fire companies to an amount of 1⁄2 per cent on gross premiums and assessments, less return premiums on all direct business. No local taxes. Tax is payable to Commissioner of Insurance.

TAX STATEMENTS-Must be filed by March 1. Fire department tax returns are included in annual statements.

VALUED POLICY-Law of 1907, Sec. I. "Whenever any policy of insurance shall be written to insure any real property in this State against loss by fire, and that property insured shall be destroyed without fraud on the part of the insured or his assigns, the amount stated of the insurance written in such policy shall be taken conclusively to be the true value of the property insured." Sec. 2. "All acts and parts of acts in conflict with the provisions of this act are hereby repealed." The Attorney-General holds that this law is constitutional; that it does not conflict with the Standard Policy law, simply making the amount stated in the policy conclusive evidence of the value of the insured property; that there is nothing in the law which prohibits the company from making an agreement with the insured that in case of loss he would accept a certain portion of the actual value of the property; and that it is lawful for a company to attach a three-fourths value clause to a policy, as this law simply makes the amount stated in the policy conclusive as to the value of the insured property.

COUNTY TAXES AND FEES.

None.

MUNICIPAL TAXES AND FEES.

None.