OHIO.*

STATE REQUIREMENTS.

AGENTS DEFINED-Sec. 3644. "A person who solicits insurance and procures the application therefor, shall be held to be the agent of the party, company or association thereafter issuing a policy upon such application or renewal thereof, anything in the application or policy to the contrary notwithstanding."

AGENTS' LICENSES-Agents must procure licenses, which expire on the first day of March next after they are issued. Firms are licensed the same as individuals, and at equal cost. Corporations may be licensed as agents, but each officer and agent of the agency corporation transacting insurance, and also such corporation, must have separate license, for each of which separate fee is charged.

ANNUAL STATEMENTS-Must be filed within thirty days after January 1, showing the condition as of December 31 next preceding.

ANTI-COINSURANCE-The anti-coinsurance law was repealed in 1902. This repeal does not affect the provisions of the valued policy law, which applies to insurance on buildings and structures, and requires, in event of total loss, payment in full of the amount named in the policy; or, in case of partial loss, the full amount of the partial loss.

ANTI-COMPACT-Sec. 3659. "If any such company, association or partner

ship doing business within this State makes an application for a change of venue, or to remove any suit or action wherein such company has been sued by a citizen of this State, now pending, or hereafter commenced in any court of this State, to the United States District or Circuit Court, or to any Federal Court, or shall enter into any compact or combination with other insurance companies, or shall require their agents to enter into any compact or combination with other insurance agents or companies, for the purpose of governing or controlling the rates charged for fire insurance on any property within the State, or for the purpose of governing or controlling the rates per centum or amount of commission or compensation to be allowed agents for procuring contracts for fire insurance on any property within the State (provided that nothing herein shall prohibit one or more of such companies from employing a common agent or agents to supervise and advise of defective structures, suggest improvements to lessen the fire hazard, and to advise as to the relative value of risks), the Superintendent of Insurance shall forthwith revoke and recall the license or authority to it to do or transact business within this State, and no renewal of authority shall be granted to it for three years after such revocation; and it shall thereafter be prohibited from transacting any business in this State ur again duly licensed and authorized."

*Sectional numbers are the same as Clement Bates' edition Revised Statutes.

ANTI-REBATE-No fire insurance company doing business in Ohio, or any officer, agent, solicitor or representative thereof, shall pay, allow or give, or offer to pay, allow or give, directly or indirectly, as an inducement to purchase fire insurance, any rebate of premiums payable on the policies or any special favor or advantage or any benefit to accrue thereon, or any payment or contract for services of any kind, or any valuable consideration or inducement whatever not specified in the policy contract of insurance. The receipt of such gifts or emoluments is also prohibited. Penalty for violation, heavy fine or imprisonment. ATTORNEY-A stipulation must be filed with the Superintendent of Insurance by other than Ohio companies, providing that service of legal process upon any agent of the company in the State shall be valid.

CANCELLATION OF POLICY-Policy form must contain provision for cancellation "at any time, upon the written request of the person insured.” Short rates may be retained by company on cancellation by insured of cash policy; and the holder of a mutual policy must pay his proportion of losses occurring before receipt of policy for cancellation before his note can be surrendered to him.

CAPITAL REQUIRED-Stock company must have at least $100,000 paid-up capital.

COMMISSIONS TO NON-RESIDENTS—No provision.

DEPOSIT-Sec. 3660. "A company incorporated by or organized under the laws of a foreign government shall deposit with the Superintendent of Insurance, for the benefit and security of its policyholders residing in the United States, a sum not less than $100,000 in stocks or bonds of the United States, or the State of Ohio, or any municipality or county thereof, which shall not be received by the Superintendent at a rate above their par value.

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DOMESTIC COMPANIES-Sec. 3632. "The articles of incorporation of a company formed for the purpose of insurance, other than life insurance, must be forwarded to the Secretary of State, who shall submit the same to the Attorney-General for examination, and if found by him to be in accordance with the provisions of this chapter, and not inconsistent with the constitution and laws of this State and of the United States, shall certify and deliver back the same to the Secretary, who may reject any name or title of any company applied for when he deems the same similar to one already appropriated, or likely to mislead the public." Sec. 3633"Upon the approval of the articles by the Attorney-General and the Secretary of State, the Secretary shall cause the same to be recorded and copied in the same manner as is provided in the preceding chapter, and a copy thereof to be deposited with the Superintendent of Insurance, who shall withhold from the company the certificate of authority if its name is so similar to the name of any other company as to mislead the public." Sec. 3634. "Except as hereinafter provided, no joint stock insurance company shall be organized under this chapter, or permitted to do business in this

State, with a less capital than $100,000, which must be fully paid up before the company shall be entitled to transact business, except that but twentyfive per cent of the capital stock of a live stock company must be paid up before the same shall have the right to do business. * * "" EXAMINATIONS-Sec. 272. "The Superintendent may make, or cause to

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be made by some person by him for that purpose appointed, an examination into the affairs of any insurance company doing business in this State, whether incorporated in this State or not; and such company, its officers and agents shall submit their books and business to such examination, and in every way facilitate the same.

The actual expenses incurred by such examinations shall be paid by the State Treasurer on the warrant of the State Auditor upon the certificate of the Superintendent of Insurance; provided that, when any examination is made upon the demand of the company therefor, the expenses of the same shall be paid by the company; and provided further, that, when, by the laws of any other State, district, territory or nation, examinations of companies of this State are required or permitted to be made by the Insurance Department or other authority of such State, district, territory or nation, at the expense of such companies, then the expenses of all examinations made by the Insurance Department of this State of all companies of such State, district, territory or nation shall be respectively charged to and collected from the company so examined." A mutual fire association may be examined by an appointee of the Court of Common Pleas on application of three interested parties, in which case a refusal to permit examination is deemed contempt of court.

FEES-For filing charter, $25; for filing annual statement, $20; for each cer tificate of authority or license to company, $2; for each agent's license (firms are treated as individuals), $2; copy of papers on file, 20 cents per folio; certifying same, $1; for agent's compliance (one for each county in which there is an agent) for publication, $1; for license to procure insurance in unauthorized companies, $10; for collection of interest on deposits of companies of foreign governments, $25 per $100,000. The foregoing fees are payable to the Superintendent of Insurance; county recorder's filing fee, 10 cents. Reciprocal provision.

FIRE DEPARTMENT TAX-None.

FIRE MARSHAL-A State fire marshal, with the co-operation of local authorities, investigates all fires. A tax for the support of this department is levied on domestic and foreign fire insurance companies See "Taxes." FOREIGN COMPANIES' HOME OFFICE STATEMENTS-Required to be filed by January 31.

GENERAL PENALTY-Sec. 288. "Any person who violates any of the provisions of this chapter, or of any insurance law of this State for the violation of which no penalty is elsewhere provided, shall be fined not more than $1000 or imprisoned not more than six months, or both. Any cor

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poration, company or association violating any of the provisions of this chapter, or of any insurance law of this State for the violation of which no penalty is elsewhere provided, shall be liable to a penalty of not more than $1000 nor less than $100, to be recovered by action in the name cí the State, and on collection paid to the Superintendent of Insurance to be covered by him into the State Treasury." Penalty, publishing any but authorized statement, $500 for first offense and $1000 for each violation after the first. IMPAIRMENT-Sec. 274. "When it appears to the Superintendent, from examination, or otherwise, that the assets of any insurance company organized under the laws of this State after deducting therefrom all liabilities, including reinsurance reserve or unearned premium fund computed according to the laws of this State, are reduced twenty per cent or more below the capital required by law, he shall require such company to restore such deficiency within such period as he designates in such requisition. Sec. 277. "When it appears to the Superintendent of Insurance, from the report of the person appointed by him, or other satisfactory evidence, that the affairs of any company, partnership, or association, not organized under the laws of this State, are in an unsound condition, he shall revoke the authority granted to such company to do business in this State. * Sec. 275. "If upon examination, or otherwise, it appears to the Superintendent that the funds and assets (other than contingent liability) of any company organized on the plan of mutual insurance, after deducting therefrom a reinsurance reserve fund computed in accordance with the law, are less than its liabilities, such company shall be deemed to have impaired its capital, and when such impairment shall exceed twenty-five per cent of such reinsurance reserve fund, the Superintendent shall require such company to make an assessment as provided in Sec. 3650 Revised Statutes, for the amount needed to pay its incurred losses and expenses, and to make good the reinsurance reserve fund required by law, upon its members liable to assessment therefor in proportion to their several liabilities, to be paid within such period as the Superintendent shall name in such requisition. In case such impairment is more than forty per cent of such reinsurance reserve fund, it shall be unlawful for such company to issue any new policies or transact any new business until the Superintendent issues to such company a license authorizing it to resume. business, or until the court has rendered its decision in the case as provided in Sec. 276, Revised Statutes. In case such impairment is more than twenty-five per cent and less than forty per cent of such reinsurance. reserve fund, and the officers of the company certify that such impairment will be restored, then it will be lawful for the company to continue business as before the issuing of the requisition, for the term of thirty days from the date thereof, and if at the expiration of the thirty days any portion of the impairment is not restored the company shall not issue any new policies or transact any new business until authorized by the Superinten

dent, or until the court has rendered its decision in the case as provided in Sec. 276, Revised Statutes; and the trustees or directors of such company are hereby made personally liable for any losses which are sustained upon risks taken after the Superintendent of Insurance has issued his requisition for filling up the deficiency in the assets, and before such deficiency is made up, but nothing herein shall be so construed as to require any mutual fire insurance company to keep on hand any cash reinsurance reserve or funds invested in securities, other than their premium notes, when the premium notes amount in gross to three per centum of the amount at risk by the company."

VESTMENTS PRESCRIBED-Sec. 3637 provides that the capital of a domestic company must be invested in bonds of the United States, or of the State of Ohio, or of any municipality or county or township thereof, or in mortgages on unencumbered real estate within the State of Ohio, worth double the amount loaned thereon; if the amount loaned shall exceed onehalf the value of the land mortgaged, exclusive of structures thereon, such structures to be insured in an authorized fire insurance company other than the company making such loan in an amount not less than the difference between one-half the value of such land, exclusive of structures and the amount loaned, and the policy assigned to the mortgagee. Also in the stock of any national bank located in the State of Ohio or in first mortgage bonds of railroads within the State of Ohio, upon which default in the payment of the interest coupons has not been made within three years previous to the purchase thereof. The surplus accumulations of a domestic company may be invested in or loaned upon the above-mentioned securities or upon mortgages upon unencumbered real estate within the State worth fifty per cent more than the sum loaned thereon, exclusive of buildings, unless such buildings are insured in some company authorized to do business in Ohio, and the policy transferred to the company making the investment, or in bonds of any State of the United States, or in stocks, bonds or other evidences of indebtedness of any solvent dividend-paying institution incorporated under the laws of the State of Ohio, or of any other State, or of the United States, except its own stock, or in negotiable promissory notes, maturing in not more than six months from the date thereof, secured by collateral security through the transfer of any of the classes of securities above described, with absolute power of sale within twenty days after default in payment at maturity. Sec. 3639. "No company shall own more than one-fourth of the capital stock of any national bank, nor invest in, nor loan on the stocks and bonds, both included, of any railroad company, to an extent exceeding one-tenth of its own capital, nor in the aggregate shall the investment in and loan on all railroad property exceed one-fourth of its capital. Not more than one-half of its capital shall be loaned on mortgage of real estate, as above provided for the investment of capital, and not more than one-tenth of the capital actually existing of any company shall be invested in a single mortgage; the current market value of all such stoc1